ABSTRACT
BIBLIOGRAPHY
KALANG-AD, BENEDICT M. APRIL 2008. Customer Assessment On
Customer Service Of Small Retail Outlets In La Trinidad, Benguet. Benguet State
University, La Trinidad, Benguet.
Adviser: Mr. Clifton D. Llanes, MSc
ABSTRACT
The study was conducted to determine the customer orientation of the small retail
outlets in La Trinidad and to be able to identify the customer service of the small retail
outlets, to determine the customer satisfaction towards a particular retail outlet, to
determine the common customer complaints towards small retail outlets, and to
determine the factors that the customers consider in patronizing or choosing a small retail
outlet to buy or to purchase.
The study was conducted in the municipality of La Trinidad, Benguet from
December 2007 to February 2008 where a total of 200 respondents who are customers of
the selected small retail outlets were asked to answer a survey questionnaire.
The study shows that sellers or store staffs of assessed small retail outlets were
customer oriented wherein they provide variety of quality products with fair and
reasonable prices, maintains the cleanliness of their store environment including the
products, and projects themselves in a friendly professional manner, as well as the store.
Moreover, assesses small retail outlets allows credit services, return and exchange of
defective and inferior products, extended business hours, and accommodates customer
complains. Furthermore, customers of assessed small retail outlets acknowledge that their
purchase experience was pleasant giving them the desire to shop again and would refer
the store to a friend. However, most customers of assessed stores encounter unavailability
of wanted products.
In addition, most customers of assessed small retail outlets in La Trinidad
recognize the accommodation of the seller as one factor in selecting a store to purchase or
to buy from.
It was then recommended that the sellers of assessed small retail outlets in La
Trinidad should further improve and gear towards perfection of more effective customer
service and provide goods that will appeal to customers focusing on what the customers
really need and want.
It is also recommended that the DTI provide seminars to the sellers of small retail
outlet on improving customer service and include it during the availing of business
permit.
Lastly, a follow-up study should be done considering the representation of higher age
bracket or the adults and the representation of the total number of small retail outlets, and
also to seek the consent of the customers who quit doing business to the small retail
outlets to further determine what factors caused them to stop doing purchase.
ii
TABLE OF CONTENTS
Page
Bibliography…...…………………………………………………………………… i
Abstract……………………………………………………………………………...
i
Table of Contents…………………………………………………………………...
iii
INTRODUCTION………………………………………………………………….. 1
Rationale……………………………………………………………………...
1
Objectives of the Study………………………………………………………
3
Importance of the Study……………………………………………………...
3
Scope and Delimitations of the Study………………………………………..
4
REVIEW OF LITERATURE
5
Retailing……………………………………………………………………...
5
Retail Outlet Defined…………………………………………………………
6
Importance of Customer Service in Retailing………………………………..
7
Accommodation of the Seller/Retailer Towards
the Customer………………………………………………………………….
8
Merchandise Display, Availability, Pricing,
Layout and Sanitation………………………………………………...………
10
Business Hours, Credit Service, and
Complaint Handling………………………………………………..………...
11
METHODOLOGY………………………………………………………………… 14
Locale and Time of the Study………………………………………………..
14
iii
Respondents of the Study…………………………………………………….
14
Data Collection……………………………………………………………….
15
Data Gathering………………………………………………………………..
15
Data Analysis…………………………………………………………………
16
RESULTS AND DISCUSSION…………………………………………………….
18
Respondents’ Profile…………………………………………………………
18
Accommodation of the Seller/Store Staff…………………………………….
20
The Store and Environment…………………………………………………..
29
Store Services………………………………………………………………...
40
Customer Satisfaction and Referral…………………………………………..
45
Common Complaints towards the Store……………………………………...
47
Factors that Customers Consider in
Choosing a Store to Buy/Purchase…………………………………………...
49
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS………………….
50
Summary……………………………………………………………………...
50
Conclusions…………………………………………………………………..
52
Recommendations……………………………………………………………
53
LITERATURE CITED……………………………………………………………...
54
APPENDIX……………………………………………………………………....
57
iv
INTRODUCTION
Rationale
Small retail outlets are categorized as micro enterprises by the Department of
Trade and Industry (DTI) for having capitalization of less than three (3) million pesos
with the employment of 1-9 (DTI, 2004). It could be associated to sari-sari stores,
convenience stores, mini-marts, mini-shops, and other small stores or shops catering
products or services directly to the consumer. The retail industry is in the market
structure of perfect competition wherein the market consists of a very large number of
firms producing a homogeneous product (Wikipedia, 2007) which is true in La Trinidad
since retail outlets are almost adjacent to each other making competition stiffer and
meeting customer expectations more of a challenge. However, it is more difficult to
entice customers especially if one store offers the same products as the others.
Retail strategies such as providing discounts, offering the least price, and others
would probably be attractive to most economical consumers, however as Santos (2007)
said, “in a competitive market, what differentiates you from your competitors is your
customer service”. Also, according to Lopo Rego as cited by Snee (2006), "smaller
businesses that can't compete on price survive by offering great customer service. They
know best their customers by name and greet them when they come in. They know what
their customers want and they make them feel good when they shop there.” Walters
(2007) also stressed that by making the business unique, offering exceptional customer
service and having a cozy atmosphere, the retailer can take a fair share of the market.
Hence customer service is a strategic marketing tool in building customer relationship.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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Customer service, as defined by John Berry (2005), is a process of providing
competitive advantage and adding benefits to the supply chain in order to maximize the
total value to the ultimate customer. It is the provision of service to customers before,
during, and after a purchase and 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” (Wikipedia, 2007).
And how a retail outlet value customers in terms of service is known as Customer
Orientation.
Customer Orientation is the set of beliefs in sales that says that customer needs
and satisfaction are the priority of an organization (Wikipedia, 2007). It is also regarded
that customer orientation is a core success factor that enterprises remain in business
(Vogt, 2004). It recognizes that one valid purpose of having business is to create
customers as quoted from Drucker (2005), wherein the customer is “KING” and as Sam
Walton puts is: “There is only one boss: the customer”. Hence, marketing’s primary
purpose: to satisfy customers’ needs and wants at a profit (Jussaume Jr., 2000; Kotler and
Keller 2006). It is also the case that ‘without customers you do not have a business’
(Gabogrecan, 2007).
Since customers are primary reasons of business existence, the study will then be
conducted to determine how customer oriented small retail outlets in La Trinidad are.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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Objectives of the Study
The study was conducted to determine the customer orientation of the small retail
outlets in La Trinidad and to be able to:
1. Identify the customer service of the small retail outlets in terms of:
i. Accommodation of the seller towards the customer
ii. Merchandise Display, Availability, Pricing, Layout, and Sanitation
iii. Business hours, Credit Service and Complaint Handling
2. Determine customer satisfaction towards a particular retail outlet.
3. Determine the common customer complaints towards small retail outlets.
4. Determine what customers consider in patronizing or choosing a small retail
outlet to buy or to purchase.
Importance of the Study
The study is expected to provide information on how small retailers nowadays
deal, settle, approach, handle, and value their customers. It would also give information
to government agencies like the Department of Trade and Industry of what programs,
assistance, trainings, and seminars should they provide to local retailers for them to
improve their operations.
The results would also provide information on how customers rate the satisfaction
they get from patronizing retail outlets as well as their complaints on service rendered,
which would give valuable insights to retailer into what areas of customer care need
improvement thereby aiding them in enhancing services and staying competitive.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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Scope and delimitation of the study
The study was conducted on selected small retail outlets in La Trinidad wherein
the small retail outlets are those categorized under Micro Enterprises by the Department
of Trade and Industry which are Sari-sari Stores and Convenience Stores.
The study was conducted base on customers’ point of view on the performance
and satisfaction derived from the services provided by the small retail outlet and would
exclude other concepts such as perceptions and expectations towards the small retail
outlet. The study was based on the assessment of customers presently buying or
purchasing on the small retail outlet during the conduct of the study since convenience
sampling was the method used in looking for respondents.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
REVIEW OF LITERATURE
This chapter discuss about the related literature accessed from books, articles, and
the World Wide Web where it talks about retailing in the Philippines, retail outlet,
importance of customer service, and the elements of customer service which includes the
accommodation of the seller or the retailer towards the customer, merchandise display,
availability, pricing, layout, business hours, credit service, sanitation, and complaint
handling of the retail outlet.
Retailing
Retailing in the country dates back when Chinese merchants engaged themselves
in all sorts of retail business with the establishment of Parian, a market and trading
center, that spread all over the country. The growth and development of retailing in the
country resulted from the upgrade of the people’s standard of living with their desire to
satisfy their wants and needs as noted from Miranda and Miranda (1982).
“Retail Trade” as defined by Republic Act No. 1180 otherwise known as
Nationalization Retail Act, is any act, occupation, or calling of habitually selling direct to
the general public, merchandise, commodities, or goods for consumption. It says that no
Filipino citizen shall engage directly or indirectly in retail business which gave Filipinos
the right to man and enjoy the retail trade in the country thus establish different retail
stores and which common is Sari-sari Stores that became indispensable in our economic
society since it serves as a connecting link between producer and consumer wherein the
desire of customers to obtain goods at their convenience and in the amounts (Miranda and
Customer Assessment On Customer Service Of Small Retail Outlets
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Miranda, 1982). However, the Act was amended on July 26, 1991 to R.A, 8762 otherwise
known as Retail Trade Liberalization Act of 2000 which provides that in order to bring
down prices for the Filipino consumer, create more jobs, promote tourism, assist small
manufacturers, stimulate economic growth and enable Philippine goods and services to
become globally competitive, the Philippine retail industry was then liberalized to
Filipino and Foreign Investors. As a result, competition in the retail industry in the
country became harder and stiffer; but in the other side of the coin, retailers now offer
higher quality goods, better services, wider choices, and lower prices.
Retail Outlet Defined
A retail outlet is a store selling merchandise and/or services directly to the public
in unlimited quantities (Business Dictionary, 2007) or to individuals making purchases
for themselves or their families (Microsoft Encarta, 2007). Retail outlet includes specialty
stores, department stores, discount stores, retail chain stores, warehouse retailers, and off-
price retailers (Microsoft Encarta, 2007), however new types of general merchandise
retailers have emerged over time because they have attracted and maintained a significant
customer base which includes specialists, home-improvement centers, off-price retailers,
catalogue showrooms, warehouse clubs, and hypermarkets. A retailer can also be a
manufacturer or a wholesaler in the distribution chain; most retailers direct their efforts to
satisfying needs of ultimate consumers (Spirou, 2007).
According to Miranda and Miranda (1982), Sari-sari stores as retail outlet are
unique since it caters to general public in a way that will tend to redound to the benefit of
Customer Assessment On Customer Service Of Small Retail Outlets
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its customers and it also likewise devise ways and means to offer better merchandise and
offer them for sale at the lowest possible price.
Importance of Customer Service in Retailing
According to Kurtz, Dodge, and Klompmaker (1988), and also with Woodcock,
Stone, and Machtynger (2000), customers are a firm’s most valuable asset where their
rights must be understood and respected. This account for the “sovereignty of consumer”
where the customer is “King” and that his wants and needs must be given not only
preferential attention but doubtlessly be satisfied if that is possible in any given
circumstance (Miranda 1990). It is why in any varying degree, all firms attempt to satisfy
customer needs and wants through a set of activities known as customer service which
emphasizes that without customers, profit is not possible (Pride and Ferrell, 1989).
Worms and Brown (1990) further state that customers are extremely important to the
success of a business and should be treated with care. Berkowitz, Kern, and Rudelius
(1989) also noticed that companies now see customer service as a strategic tool for
increasing customer satisfaction and sales, and that better customer service builds-up
customer retention which businesses today believe that it is more profitable to sell to
existing customers than to new ones. As a result, marketing now also involves finding
ways to turn one-time purchasers into lifelong customers (Microsoft Encarta, 2007).
However Woodcock, Stone, Machtynger (2000) also emphasized that customers are
expensive to acquire and not easy to keep. Moreover, Buxton (2000) also discussed that,
serving customers better creates satisfied customers, builds repeat business, and drives
Customer Assessment On Customer Service Of Small Retail Outlets
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profitability. Furthermore, she also cited that most North American companies spend 3%
of their revenues to learn more about how they are doing with customers.
Lake (2007) also stressed that customer retention is not only a cost effective and
profitable strategy, but in today's business world it is necessary because 80% of business
sales come from 20% of the customer and clients and after all, many experts (Kotler and
Keller, 2006; Santos, 2007; Worms and Brown, 1990,) will tell that it is five times (5x)
more expensive to acquire new customers. In addition it is often easier to re-attract ex-
customers (because company know their names and histories) than to find new ones
(Kotler and Keller, 2006).
Elements of Customer Service in Retailing
Accommodation of the Seller/Retailer Towards the Customer
Effective customer service starts from the seller wherein according to Berry
(2005) most consumers often feel uncomfortable buying some of the products or availing
of a service unless they feel the sense of friendliness and comfort from the seller. It could
also be related from what Gabogrecan (2007) said, “Never underestimate the importance
of making your customers feel special – you, as a customer, like to feel special – don’t
you?” In relation, Seavey and Wells (2005) also discussed that the customer's concern
does not end with the decision to purchase where the customer immediately begins to re-
evaluate the product or service. "Did it perform as I expected? Was I treated as a valued
customer?" If the customer is satisfied with the re-evaluated purchase, the business would
have a loyal customer and more purchases will follow. They further emphasized that
courteous service every time will keep the customers coming back.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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Moreover, Kowal (2007) discussed the difference of Core Service and Quality
Service wherein Core service is the procedural side of service, consisting of established
systems and procedures to deliver the product or service; it is the business “reason for
being” which includes three elements: cost, delivery and quality wherein it could be
easily replicated by a competitor. On the other hand, Quality Service is the personal side
of service, including people and processes that incorporates how the customer is treated
in the interactions while conducting business; it is this personal side of business that
enables an organization to differentiate themselves – to consistently meet and exceed the
customer's expectations and provide them with a reason to want to return.
Furthermore, Obarski (2002) highlighted three “A” of comfort zones that a seller
should posses: First “A” would be “Attitude” which pertains to the behavior that a seller
shows to a customer wherein according to Santos (2007) and Berry (2005) an effective
approach in customer service would be greeting the customers with a friendly smile and
ending the transaction by thanking the customer and by telling the customer to come
back. She also cites that three (3) out of four (4) customers leave a store because of
impolite, inattentive salespeople which are the most common complains towards the
seller. In addition, a survey of consumers as cited by Santos (2007) and Adams (2003)
shows that Sixty-eight percent (68%) of customers quit doing business resulting from the
indifferent, uncaring attitudes of owner, manager or some employees toward customers,
14% due product dissatisfaction, 9 percent - competitive reasons, 5% due to friends’
influence, 3 % because customers move away, and 1% due to death. Meanwhile, the
Second “A” stands for “”Audience” in which the seller should be a good audience that
gives attention to customers since customers are like actors in a play where making eye
Customer Assessment On Customer Service Of Small Retail Outlets
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contact, listening to their needs and finding a way to satisfy their wants is part of being a
good audience. On the other hand, the third “A” stands for Awareness or Alertness of
what is happening around and to move when necessary since most customers won’t ask
directly when they need help (Berry, 2005). In addition Miranda and Miranda (1982)
stressed that in most stores seller play the role of helpers instead of a seller thus giving
assistance when needed and not to interlude. Common complaints also arise due to delays
and long waits due to the inattentiveness of the seller Santos (2007).
Merchandise Display, Availability, Pricing, Layout and Sanitation
According to Miranda (1979), the fact that the seller is obtaining goods for resale
it is important that the seller should obtain merchandise that will appeal to customers thus
purchase what the customers really need and wanted. The seller should also know what to
stock and not to be burdened with large reserve stock.
It is also important that the seller is knowledgeable about the goods that he/she is
offering, according to Berry (2005) knowing the product being offered would trigger
good customer service. The seller should also be acquainted with the prices also with the
merchandise display so that the seller would be easily located the product. It is also the
case that most customers complain due to the long queue due to the wondering of the
seller. In addition Miranda and Miranda (1982) made mention that most seller don’t
employ trained laborers that in the absence of the seller, members of the family were
being told to operate which results to the changes in pricing and the unavailability of the
product since the one told to operate is not knowledgeable of the offered products thus
results to customer complaints.
Customer Assessment On Customer Service Of Small Retail Outlets
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Seavey and Wells (2005) also stressed that quality products should be offered and
as noted from Santos (2007), most customers complain due to defective or inferior
products where the Department of Trade and Industry reminds the consumers that only
those defective goods can be returned or exchanged and one cannot return the goods nor
ask for a refund if the customer only had a change of mind. Moreover Duncan, Hollander,
and Savitt (1983) also emphasized that the retailers’ most basic service is to offer
desirable goods at reasonable prices in a convenient way through attractive and well
located stores wherein goods should be attractively displayed through noticeable layout
so that browsers would be enticed to buy by looking at the properly layout displayed
products and would also affect in the convenience of the customer in buying and the
availability of the product is also influential.
According to Berry (2005), the cleanliness, care, and beauty of the outlet, all
contribute to that sense of welcome and comfort that is communicated to the customer
thus sanitation of the store should always be given importance.
Business Hours, Credit Service, and Complaint Handling
According to Miranda and Miranda (1982) also with Pride and Ferrell (1989), and
Duncan, Hollander, and Savitt (1983), small retail outlets are providing services to attract
and hold customers like providing credit to customers and extended business hours
wherein the stores opens early in the morning and late in the evening; hence the reasons
for their continued patronage.
As quoted from H. Gordon Selfridge, “The customer is always right” and it is
accepted by most customer-oriented businesses. According to Jim (2007), Customers are
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
12
always right when they believe they are right, they may be dead wrong but by
understanding the situation and acknowledging their belief, the seller would begin to
present a different way of looking at the situation. In contrast, according to Walters
(2007), “Customers make honest mistakes and sometimes they want something for
nothing and that while the customer isn't always right, it's the job of retailers is to make
them feel like they are always important.”
A customer complaint is an opportunity to improve service or products.
According to Berry (2005), it is harder to satisfy a customer who has a complaint, or who
has had a bad experience. Santos (2007) also discussed that an unsatisfactory experience
is easier to remember, describe and record. Statistics indicate that 91% of dissatisfied
customers slip quietly and never return. And an unhappy customer tells 20 people and a
happy one tells on 3 or 4 people.
Mehrmann (2007) also emphasized that it is important to recognize that the
majority of customers who complain are loyal customers who care about the business.
Customers who take the time to complain are also taking the time to tell what went
wrong. Customers who are disappointed and do not complain are already lost, but you
have a chance to save the ones who are loyal enough to give you the opportunity to
respond. He also stressed that if one customer complains, it is typically an indication that
there are several more with the same experience and if a complaining customer is irate, it
is because the customer is disappointed and that the customer is not complaining about
the business, rather they are expressing the dissatisfaction to business. In addition, Kowal
(2007) cited that one reason why customer call the attention of the business is for the
desire to be heard or to be understood.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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In general, satisfaction of the purchaser/buyer would be the result from the
services offered by the small retail outlets to the customers, thus consciously or
unconsciously providing customer service to the customers wherein the dissatisfaction of
customers on the services would result to complaints.
According to Duncan, Hollander, and Savitt (1983), no retailer can completely
eliminate customer complaints. Moreover Kurtz, Dodge, and Klompmaker (1988)
stressed that most difficult aspects of ensuring repeat business is handling complaints and
that the best way to handle it is by avoiding them by putting emphasis in customer
service.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
METHODOLOGY
This chapter presents the process on how the researcher conducted the study. It
discussed the location and time of conduct of the study, the method use in selecting the
respondents, how data were collected, and the statistical method employed to analyze the
data gathered
Locale and Time of the Study
The study was conducted in the municipality of La Trinidad, Benguet from December
2007 to January 2008. It covered the selected small retail outlets particularly the barangays
located from Km. 4 to Km. 6 namely Balili, Pico, Lubas, Mamaslyn, Betag, and Tabangawen
since it is where most small retail outlets are adjacent to each other.
Respondents of the Study
The respondents of the study were the customers of the selected small retail outlets.
According to Kurtz, Dodge, and Klompmaker (1988), existing customers are ideal source of
information whether they’re purchase experience are satisfactory or not and that if their
experience would be shared to friends and acquaintances.
Using the survey cited by Santos (2007) and Adams (2003) that 68% of customers
quit doing business as a result from the indifferent, uncaring attitudes of owner, manager or
some employees toward customers, the researcher then draws an assumption that out of 100
respondents it is possible that 68 respondents are still satisfied with the service of the small
retail outlet since they’re still purchasing on it which gives a confidence interval of 9.14%
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
15
that results to 199 respondents which was rounded to 200 in a confidence level of 99% using
a sample size calculator..
Data Collection
Data collected were based on the objectives of the study. Survey questions would be
patterned from Mystery Shopping. Mystery Shopping/Test Shopping/Silent Shopping is a
tool to measure quality of retail service. It allows a “view” from outside to counteract
professional blinders, the actions and reactions of sales representatives/seller before, during,
and after the purchase of the customer, that offers an opportunity to retain customers and
improve internal processes that helps to identify areas which already work well, and those
which still need improvements as noted from Vogt (2004) and from Wikepedia (2007).
The “view” from the outside are the simple observations of the retail outlets’ sale and
services provided from the point the respondent enters the store, during the transaction
process including inquiry, and until the customer checked out. It also includes the
observations from the store environment as well as the products being offered. These views
from the outside are important information for the business to focus on what aspect of
operations needs improvement.
Data Gathering
Convenience sampling under Non-probability sampling method was used. It is an
appropriate sampling method according to Swanson and Gallowey (1997) for undetermined
population size, since customer populations of small retail outlets were unknown, and for
limited time of study.
Customer Assessment On C ustomer Service Of Small Retail Outlets
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Since the study covered Km. 4, 5, and 6 particularly from barangays Balili, Pico,
Lubas, Mamaslyn, Betag, and Tabangawen ten (10) small retail outlets would be selected
per kilometer a total of 30 small retail outlets wherein a particular small retail outlet would be
evaluated by only 7 respondents.
The respondents were asked to answer the survey questionnaire immediately the
researcher.
The data gathered talks about the accommodation of the seller or the store staff, the
store and its environment, the store services, the customer satisfaction and referral, the
common complaints towards the store, and the factors that customers consider in choosing a
small retail outlet to shop/buy. The data collected were in Likert scale ranging from 1 to 5, 5
being the highest and 1 being the lowest with a descriptive equivalence of:
1.00-1.80
=
Never
1.81-2.60
=
Rarely
2.61-3.40
=
Sometimes
3.41-4.20
=
Often
4.21-5.00
=
Always
Data Analysis
The data were analyzed according to the objectives of the study. The collected data
was tabulated and presented using frequency, percentage, and weighted mean.
Frequency, percentage, and weighted mean are used to describe simple features or
simple summaries about the sample and the measures. Frequency is the quantitative measure
of the number of occurrence. On the other hand, Percentage is a way of expressing a number
Customer Assessment On C ustomer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
17
as a fraction of 100 used to express how large one quantity is relative to another quantity.
Meanwhile, Weighted Mean is the average with weight so that a data with a high weight
would contribute more to the weighted mean likewise to the data with a low weight wherein
the weights pertained to are the scales corresponding to a qualitative value or descriptive
equivalence.
Percentage is computed as
Xi
N x 100
Where
:
Xi = Frequency
N = Total number
Weighted mean is computed by:
Or
Where:
Xi = Frequency
Wi = Weights
X = Weighted mean
Customer Assessment On C ustomer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
RESULTS AND DISCUSSION
This chapter presents results and interpretations from the survey questionnaire
answered by 200 respondents residing in the municipality of La Trinidad who are
customers of small retail outlets located from Km. 4 to Km. 6 particularly from the
barangays of Balili, Lubas, Betag, Pico, and Tabangawen.
The data gathered covers the customer accommodation by the seller or the store
staff, the store and its environment, the store services, the customer satisfaction and
referral, the common complaints towards the store, and the factors that customers
consider in choosing a small retail outlet to shop/buy from.
The collected data were tabulated and presented using frequency, percentage, and
weighted mean to determine trend of responses and were analyzed according to the
objectives of the study.
Respondents’ Profile
Table 1 presents the respondents’ profile that shows age, sex, civil status, and
frequency of buying. It shows that most of customers of small retail outlets were
teenagers, single, and females who buy or purchase at the store around 1 to 3 times in a
week.
Age. Majority of the respondents present during the conduct of the study were
teenagers with a frequency of 106 (53%). 76 (38%) of respondents belong to the age
range of 20-29, 10 (5%) respondents were at the age range of 30-39, and 8 (4%) of the
respondents were at the age range of 40-49. Majority of respondents were teenagers since
Customer Assessment On Customer Service Of Small Retail Outlets
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the location of study particularly from km. 5 to km. 6 were dominated by boarding
houses whose residents were students. In relation, a study conducted by Julian (2006) on
Consumer’s Choice of Market Outlets for Grocery in La Trinidad reflects that most
consumers distinguish and select a particular outlet for specific type of product wherein a
significant factor that influence a consumers’ decision to purchase from a particular
market outlet as to location is the accessibility, short walking distance adjacency, and
nearness of the outlet. Also, he concluded that most married customers who are at their
middle age purchases at larger market outlets such as groceries and supermarkets for their
household needs and purchases only at sari-sari stores or small retail outlets for
unplanned or emergency situations.
Sex. Females dominated the males where 129 (64.5%) respondents were females
and 71 (35.5%) respondents were males.
Civil status, Most respondents (80.5%) were single since most of them were
teenagers and 39 (19.5%) were married.
Frequency of buying. Most respondents were frequent buyers and can easily
assess the customer orientation of the small retail outlet since 96 (48%) of the total
respondent buy or purchase around 1-3 times per week, 35 (17.5%) purchases 4-6 times
peer week, and 69 respondents (34.5%) buy or purchase from the store about more than 6
times per week
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
20
Table 1. Respondents’ profile
INFORMATION FREQUENCY
PERCENTAGE
f
%
Age
Teenagers
106
53
20s
76
38
30s
10
5
40s
8
4
TOTAL
200 100
Sex
Females
129
64.5
Males
71
35.5
TOTAL
200 100
Civil Status
80.5
Single
161
19.5
Married
39
TOTAL
200 100
Frequency of Buying
More than six times (6x) a week
69
34.5
Four to six times (4-6x) a week
35
17.5
One to three times (1-3x) a week
96
48.0
TOTAL
200 100
Accommodation of the Seller/Store Staff
Tables 2, 3, and 4 show that the sellers of assessed small retail outlets in La
Trinidad were often accommodating and friendly and that they greet their customer upon
entry to the store, projects themselves in a professional appearance appropriate to the
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
21
nature of the retail store, leave their customer the desire to return for further purchases,
assist and help the customer whenever the customer experiences difficulty in buying, and
wraps or bags the purchased product; it appears that the sellers of assessed small retail
outlets in La Trinidad provides a pleasant purchase experience to their customers from
the time the customer enters the store until they check out from the establishment. Their
dealing scheme before during and after the customer purchase and the appropriateness of
presenting themselves to their customers were often satisfactory and appealing to their
customers with an overall mean of 3.88.
The results show that the small stores believe what was noted from Berry (2005)
wherein most consumers often feel uncomfortable buying some of the products or
availing of a service unless they feel the sense of friendliness and comfort from the seller
where Obarski (2002) discussed about “Attitude” that sellers must project. Also as noted
from Miranda and Miranda (1982) that stores seller should play the role of helpers more
than merely selling.
Dealing scheme of the seller to the customer before and during shopping. Table 2
presents the experience of the respondent upon entry to the store and during the shopping
or buying process which considers professional courtesy of the seller to the respondent
upon entry to the store, the assistance of the seller to the respondent during purchase,
query accommodation of the seller, extra helpfulness of the seller, and the overall
knowledge and helpfulness of the seller or store staffs.
As to professional courtesy of the seller or the store staffs, it shows that 61
respondents (30.5%) always experience professional courtesy by the seller, 48 (34%)
respondents said that the seller often show professional courtesy, 39 (19.5%) were
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
22
sometimes addressed professionally, 32 (16%) respondents were rarely being greeted,
and 20 (10%) respondents claimed that they were never been greeted in a friendly
professional manner by the retailer. Over all, the assessed small retail outlets often
display professional courtesy for having a weighted mean of 3.49.
With regards to the assistance given by the seller or store staffs to the customer,
57 (28.5%) respondents claimed that they were always being assisted by the seller, 59
(29.5%) respondents were often been assisted, 72 (36%) respondents were sometimes
being assisted, and 12 (6%) respondents said that they were rarely been assisted by the
seller or the store staff. Overall, the seller or store staffs of assessed small retail outlets
often extend assistance whenever the respondent experience difficulty in finding or
selecting what he/she needs for having a weighted mean of 3.81.
On the query accommodation of the seller or the store staffs, 88 (44%)
respondents stated that the seller always accommodates inquiries, 45 (22.5%) respondents
said that their inquiries were often accommodated, 59(29.5%) respondents claimed that
their inquiries were sometimes being accommodated, 7 (3.5%) respondents said that their
inquiries were rarely being accommodated, and 1 (.5%) respondent declared that his/her
inquiry was never been accommodated. Over all, sellers of assessed small retail outlets
were often accommodating and helpful to respondent’s inquiries for having a weighted
mean of 4.06.
As to the extra helpfulness of the seller or the store staffs, 1 (.5) said that the seller
never seek further help from others whenever the seller doesn’t know the answer to the
respondent’s inquiry, 14 (7%) respondents said that the seller rarely provide extra
helpfulness, 66 (33%) respondents claimed that the seller sometimes exhibit extra
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
23
Table 2. Dealing scheme of the seller to the customer before and during shopping
NEVER RARELY
SOMETIMES
OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN EQUIVALENCE
f
%
F
%
F
%
f
%
f
%
Professional
20 10 32 16 39 19.5 48 24.0 61 30.5 3.49
Often
courtesy of the
seller
Assistance
0 0 12 6.0 72 36.0 59 29.5 57 28.5 3.81
Often
given by the
store staff
Query
1 .5 7 3.5 59 29.5 45 22.5 88 44.0 4.06
Often
accommodation
of the staff
Extra
1 .5 14 7.0 66 33.0 62 31.0 57 28.5 3.80
Often
helpfulness of
the staff
Overall
knowledge and
0 0 10 5.0 60 30.0 66 33.0 64 32.0 3.92
Often
helpfulness of
the staff
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
24
helpfulness, 62 (31%) respondents said that the seller was often extra helpful, and 57
(28.5%) claimed that the seller or the store staffs were always been extra helpful during
the shopping of the respondent. Over all, sellers of assessed small retail outlets often find
ways to be of further help for having a weighted mean of 3.80.
In the overall knowledge and helpfulness of the seller or store staffs, 64 (32%)
respondents claimed that the seller or the store staffs were always knowledgeable and
helpful, 66 (33%) said that the seller was often knowledgeable and helpful, 60 (30%)
respondents said that the seller was sometimes knowledgeable and helpful, and only 10
(5%) respondents asserted that the seller or the store staffs were rarely knowledgeable
and helpful. Overall, sellers or store staffs of assessed small retail outlets were often
knowledgeable and helpful during the shopping of the respondent with a mean of 3.92.
Dealing scheme of the seller to the customer after purchase. Table 3 presents the
experience of the respondent during the checkout process where it considers the honesty
of the seller in giving change, promptness of the seller, wrapping or bagging of purchased
products by the seller, gratitude of the seller to the customer after purchase , and the
overall convenience of the respondent during checkout.
As to the honesty of the seller in giving change, majority of respondents (123 or
61.5) always receives their exact amount of change, 61 (30.5%) respondents said that the
seller often gives the correct amount of change, 12 (6%) stated that the seller sometimes
gives the correct amount of change, and only 4 (2%) respondents claimed that the seller
rarely gives the correct amount of change. Overall, sellers of assessed stores were honest
for always giving the correct amount of change to the respondents with a mean of 4.52.
25
With regards to the promptness of the seller during the checkout of respondent, 4
(2%) respondents claimed that the seller has never been quick in assisting the respondent
during checkout, 17 (8.5%) respondents said that the seller was fast, 38 (19%)
respondents stated that the seller was sometimes prompt, 92 (46%) respondents said that
their checkout was fast and trouble-free, and 49 (24.5%) respondents asserted that the
seller was fast in catering to them during checkout. Overall, respondents claimed that
their checkout was always fast and trouble-free for having a weighted mean of 3.83.
On the wrapping or bagging of purchased products by the seller, 94 (47%)
respondents said that the seller wraps or bags their purchased products, 56 (28%)
respondents pointed out that the seller often wraps or bags their purchased products, 29
(14.5%) respondents claimed that the seller sometimes wraps or bags their purchased
products, 14 (7%) respondents stated that the seller rarely wraps or bags their purchased
products, and only 7 (3.5%) respondents pointed out that the seller never wraps or bags
their purchased products. Overall, sellers of assessed stores often wrap or bag purchased
products of respondents for having a weighted mean of 4.08.
For the gratefulness of the seller to the respondent during checkout, 41 (20.5%)
respondents were always thanked by the seller after purchase, 60 (30%) respondents were
often thanked after purchase, 44 (22%) respondents were sometimes thanked, 46 (23%)
respondents were rarely thanked, and 9 (3%) respondents pointed out that they were
never thanked by the seller after their purchase. Overall, sellers of assessed small retail
outlets sometimes thanks their customers after purchase for having a weighted mean of
3.39.
26
Table 3. Dealing scheme of the seller to the customer after purchase
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Honesty of the seller in
0 0 4 2 12 6 61 30.5 123 61.5 4.52
Always
giving change
Promptness of seller
4 2 17
8.5 38 19 92 46 49 54.5 3.83
Often
during checkout
Wrapping or bagging
7 3.5 14 7 29 14.5 56 28 94 47 4.08
Often
of purchased products
by the seller
Gratefulness of the
9 4.5 46 23 44 22 60 30 41 20.5 3.39
Sometimes
seller to the respondent
during checkout
Overall, convenience of
6 3 8 4 61 30.5 66 33 59 29.5 3.82
Often
respondent after
purchase
27
As to the overall convenience of the respondent after purchase, 59 (29.5%)
respondents always experience good checkout process, 66 (33%) respondents often
experience good checkout, 61 (30.5%) respondents sometimes experience good checkout,
8 (4%) respondents rarely experience positive checkout, and 6 (3%) respondents claimed
that their checkout experience was never good. Over all, respondents often met favorable
experience during their checkout giving them the desire to patronize the store given a
mean of 3.82.
Seller/store staff appearance. Table 4 presents the seller or the store staffs’
appearance during the transaction process that presents the cleanliness of the seller’s
appearance, the disposition/mood of the seller, and the overall suitability of seller’s
appearance in the store.
On the clean and neat appearance of seller, 83 (41.5%) respondents stated that the
seller always have a clean and neat appearance, 81 (40.5%) respondents said that the
seller often appears to be clean and neat, 25 (12.5%) stated that the seller sometimes have
a clean and neat appearance when attending to them, 10 (5%) said that the seller rarely
appear clean and neat, and only 1 (.5%) declared that the seller never have a clean and
neat appearance. Overall, the sellers of small retail outlets assessed often have a clean
appearance when attending to their customers for having a weighted mean of 4.18.
As to the good disposition of the sellers or store staffs, 39 (19.5%) respondents
answered that the seller always have a good disposition, 74 (37%) responded that the
seller often display good disposition, 56 (28%) respondents state that the sellers are
sometimes in a good disposition, 28 (14%) said that the sellers rarely exhibit a good
disposition, and only 3 (1.5%) responded that the sellers never appear to be in a good
28
Table 4. Seller/store staffs’ appearance
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Clean and neat
1 .5 10 5 25 12.5 81 40.5 83 41.5 4.18
Often
appearance of seller
Good disposition of
3 1.5 28 14 56 28 74 37 39 19.5 3.59
Often
seller
Overall appropriateness
1 .5
10 5 57 28.5
60 30 72 36 3.96
Often
of seller’s appearance
in the store
29
disposition when attending to them. Overall, the sellers of small retail outlets assessed
were often in a good disposition when attending to their customers for having a weighted
mean of 3.59.
For the overall appropriateness of the seller’s appearance, 72 (36%) of the total
respondents answered that the seller always have an overall appropriate appearance, 60
(30%) said that the seller often show an overall appropriate appearance when attending to
them, 57 (28.5%) responded that the seller sometimes display an overall appropriate
appearance, 10 (5%) answered that the seller rarely appear to be in an overall appropriate
appearance, and only 1 (.5%) responded with seller that never attend to customers in an
overall appropriate appearance. Overall, the sellers of the small retail outlets assessed
often attend to their customers in an appropriate appearance suitable in the nature of the
store for having a weighted mean of 3.96.
The Store and Environment
Data in tables 5, 6, 7, and 8 presents the store and its environment in relation to its
merchandise display and availability of products, pricing of products, store layout, and
sanitations of the assessed small retail outlets in La Trinidad. It shows that the assessed
small retail outlets offer variety of merchandise display that were of perceived quality
where its pricing were just fair and reasonable. Its layout also aids much in the
convenience of the customer. And that, most of these stores have clean environment as
well as in their offered products with an overall mean of 3.83.
These results show that stores practices what was noted from Duncan, Hollander,
and Savitt (1983) and from Seavey and Wells (2005) that sellers obtain goods for resale
30
and it is important that the obtained merchandise should be of perceived quality and
should also appeal to customers.
Pricing of small retailers were just fair and reasonable. Miranda and Miranda
(1982) noted that since most small retail outlets don’t employ laborers, which are
additional cost to their business, they could offer goods at lower prices.
Merchandise display and availability of products. Table 5 presents the
merchandise display and availability of goods from the small retailers. Respondents rated
the small retail outlets’ merchandise display and availability according to the availability
of wanted products by the respondent, quality of products, standard measurement of
products, variety of products, and overall availability of wanted products and variety of
products display.
On the availability of wanted products in the small retail outlets assessed, 61
(30.5%) of the total respondents said that the products they want were always available,
78 (39%) responded that the products they want are often available, 55 (27.5%) answered
that the products they want were sometimes available, and 6 (3%) stated that the store
rarely offers the products they want. Overall, the small retail outlets assessed often offers
products wanted by their customers for having a weighted mean of 3.97.
For the quality of products offered by the small retail outlets assessed, 81 (40.5%)
respondents said that the products were always of good quality, 78 (39%) responded that
the products offered were often of good quality, 35 (17.5%) answered that the stores
sometimes offers products that are of good quality, 2 (1%) stated that the small retail
stores rarely offers products of good quality, and 4 (2%) respondents claimed that the
31
small retail stores never offered products of good quality. Overall, products offered by
the small retail outlets assessed were often of good quality with a weighted mean of 4.15.
As to the accuracy of measurements and standard partition of the products offered
in the small retail outlets assessed, 72 (36%) of the total respondents said that the stores
always offer products that are in accurate measurements and standard partition, 75
(37.5%) answered with stores often selling products that were in accurate measure and
standard partition, 47 (23.5%) responded that the products were sometimes accurate in
their measurement and standard partition, 5 (2.5%) said the store rarely offers products in
accurate measure and standard partition, and only 1 (.5%) answered with the store never
selling products in accurate measurements and standard partitions. Overall, the products
offered in the small retail outlets assessed were often accurate in their measurements and
in standard partitions for having a weighted mean of 4.06.
With regards to the variety of merchandise display being offered by the small
retail outlets assessed, 72 (36.5%) of the total respondents said that the store always offer
a varied merchandise display, 75 (37.5%) of them responded that the store often sell a
good variety of merchandise, 47 (23.5%) stated that a variety of merchandise were
sometimes offered, 5 (2.5%) responded that the store rarely offer a varied display of
merchandise, and only 1 (.5%) respondent answered that the stores never display a
variety of merchandise. Overall, the merchandise displays of the small retail outlets
assessed were often varied with a weighted mean average of 4.05.
As to overall availability of wanted products and variety of products on display by
the small retail outlets assessed, 66 (33%) of the total respondents said that the store
always offer high overall availability and variety of products, 77 (38.5%) responded that
32
Table 5. Merchandise display and availability of products
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Availability of wanted
0 0 6 3 55 27.5 78 39 61 30.5 3.97
Often
products
4 2 2 0 35 17.5 78 39 81 40.5 4.15
Often
Quality of products
Accuracy of
measurements and
1 .5 5 2.5 47 23.5 75 37.5 72 36 4.06
Often
standard partition of
products
Variety of merchandise
0 0 15
7.5 40 20 66 33 79 39.5 4.05
Often
display
Overall availability of
wanted products and
0 0 3 1.5 54 27 77 38.5 66 33 4.03
Often
variety of products
display
33
the overall availability and variety of products were often high, 54 (27%) answered that
the stores sometimes offer high overall availability and variety of products, and only 3
(1.5%) stated that the store rarely offer high overall availability and variety of products.
Overall, the availability and variety of products offered by the small retail stores assessed
are often high with a weighted mean of 4.03
Pricing of products. Table 6 presents the pricing of the assessed small retail
outlets to their offered products where it talks about the easiness of price determination,
fair and reasonable pricing, discounts for products, and the overall reasonable and
standardized pricing of products.
On the ease of determining the price, 35 (17.5%) of the total respondents said that
its always easy for them to determine the price of the products being sold by the small
retail outlets, 78 (39%) responded that its often easy, 59 (29.5%) said its sometimes easy
to locate the price tag, 26 (13%) claimed that the price of the products being sold were
rarely easy to locate, and 2 (1%) declared that price tags for the products are never easy
to locate. In general, for the small retail outlets assessed, determining the price of
products is often easy.
As to fair and reasonable pricing, 64 (32%) of the total number of respondents
claimed that the store always offer products with fair and reasonable prices, 68 (34%)
said the prices are often fair and reasonable, 43 (21.5%) sometimes sell products with fair
and reasonable prices, 23 (11.5%) stated that the store rarely offer fair and reasonable
prices, and there are 2 (1%) respondents who declared that the store never sell products
with fair and reasonable prices. In general, the small retail outlets assessed often offer
products with fair and reasonable prices, emphasized by the weighted mean value of 3.85.
34
Table 6. Pricing of products
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
F
%
f
%
f
%
f
%
f
%
Ease of determining the
2 1 26 13 59 29.5 78 39 35 17.5 3.59
Often
price
Fair and reasonable
2 1 23
11.5 43 21.5 68 34 64 32 3.85
Often
pricing
39 19.5 55 27.5 49
24.5 41 20.5 16
8
2.70
Sometimes
Discounts for products
Overall reasonable and
9 4.5 21 10.5 51 25.5 58 29 61 30.5 3.71
Often
standardized pricing of
products
35
For discounts on products, 16 (8%) of the total number of respondents claimed
that the stores always offer discounts, 41 (20.5%) said discounts are often given, 49
(24.5%) stated that it’s only sometimes, 55 (27.5%) said the stores rarely give discounts,
and there are 39 (19.5%) respondents who claimed that the stores never give them
discounts on particular or even selected products. In general, for the small retail outlets
assessed, they sometimes give discounts on particular or selected products, as further
shown by the weighted mean value of 2.70.
As to overall reasonable and standardized pricing, 61 (30.5%) of the total number
of respondents said that the store always offer reasonable and standard prices, 58 (29%)
responded that its often, 51 (25.5%) claimed it was only sometimes, 21 (10.5%) said that
the store rarely gives out reasonable and standard prices of products, and there are 9
(4.5%) who declared that the store never gives reasonable and standard prices for the
products they sell. In general, the small retail outlets assessed often sell products with
reasonable and standard prices, stressed by the weighted mean value of 3.71.
Store layout. Table 7 presents the store layout of small retail outlets where it
shows that the store layout of assessed small retail outlets were suitable and convenient,
the products wanted by the customers were often easy to find and locate. Also, the
display of products by groups or category depending on their kind will make the
customers feel that the store has a very good store layout.
With regards to ease of locating products, 58 (29%) of the total number of
respondents said that they always find it easy to locate the products they want to buy, 66
(33%) stated it was often easy to locate products, 65 (32.5%) claimed they sometimes
36
Table 7. Store Layout
NEVER RARELY SOMETIMES OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
F
%
f
%
f
%
f
%
f
%
0 0 11 5.5 65 32.5 66 33 58 29 3.86
Often
Ease of locating products
Categorical grouping of
0 0 11 5.5 40 20 92 46 57 28.5 3.98
Often
products
Overall convenience due
0 0 7 3.5 57 28.5 88 44 48 24 3.89
Often
to layout
37
find the products they need easily, and there were 11 (5.5%) who said that they rarely
experience ease in locating the products they need from the store. In general, the
customers often experience ease when locating products in the small retail stores assessed
with a mean of 3.86.
As to display of products in categorical grouping, 57 (28.5%) of the total number
of respondents said that the stores always display products according to their kind, 92
(46%) responded that the stores often display products of the same kind next to each
other, 40 (20%) claimed that it was only sometimes, and 11 (5.5%) stated that the store
rarely display products in categorical grouping. In general, the respondents think that the
stores often display their merchandise according to its category with a mean of 3.98.
As to overall convenience with regards to store layout, 48 (24%) of the total number of
respondents claimed that the store always have a good layout that facilitated their
convenience when shopping, another 88 (44%) said the store layout often makes them at
ease, 57 (28.5%) stated it was only sometimes that the store’s layout provide
convenience, and there were 7 (3.5%) who claimed that the store’s layout was rarely
convenient. In general, the store’s layout of the small retail outlets assessed often provide
convenience to their shoppers, as further indicated by the weighted mean value of 3.89.
Sanitation of the retail outlet. Table 8 presents the sanitation ratings of the stores
assessed. It shows that customers would often want to buy from small retail outlets which
were clean in their surroundings and also as to the offered products which are free from
contamination.
With regards to cleanliness of surroundings, 60 (30%) of the total number of
respondents said that the store and its surroundings were always clean, 68 (34%) stated
38
the store and its surroundings were often clean, 56 (28%) responded that it was only
sometimes, 11 (5.5%) claimed the store and its surroundings were rarely clean, and 5
(2.5%) respondents declared that the store and its surroundings were never clean. In
general, the small retail outlets assessed and their surroundings were often clean, which is
indicated by the weighted mean value of 3.84.
On the products cleanliness, there were 72 (36%) respondents who said that the
store always offer clean product, 60 (30%) stated that the store often sell products which
were clean, 52 (26%) responded that it was only sometimes, 14 (7%) claimed that the
store rarely sell clean products, and there were 2 (1%) respondents who declared that the
store never offer products which are clean. In general, the small retail outlets assessed
often offer products that were clean, which is further signified by the weighted mean
value of 3.93.
As to the overall cleanliness of products and surroundings, 72 (36%) of the total
number of respondents said that the store always offer clean products and have clean
surroundings, 61 (30.5%) stated that the store often sell products that are clean and have
clean surroundings, 47 (23.5%) responded it’s only sometimes, 14 (7%) declared the
store were rarely clean and rarely offer clean products, and 6 (3%) claimed that the store
and its surroundings were never clean and that they never sell clean products. In general,
the small retail outlets assessed ad their surroundings were often clean and the
merchandise that they sell were often clean and in good quality, which is signified by the
weighted mean value of 3.90.
39
Table 8. Sanitation of the retail outlet
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Cleanliness of
5 2.5 11 5.5 56 28 68 34 60 30 3.84
Often
surroundings
2 1 14 7 52 26 60 30 72 36 3.93
Often
Cleanliness of products
Overall cleanliness of
6 3 14 7 47 23.5 61 30.5 72 36 3.90
Often
products and
surroundings
40
Store Services
As discussed by Miranda and Miranda (1982), Pride and Ferrell (1989), and
Duncan, Hollander, and Savitt (1982), small retail outlets are proving services to attract
and hold customers such as providing credit to customers, extended business hours where
it opens early in the morning and late in the evening, accommodates return and exchange
of defective or inferior products, and accommodating customer complains which aids in
customers patronage. Tables 9, 10, and 11 then present the services of assessed small
retail outlets where it shows that most of the stores often provide such services.
Business hours of the store. Table 9 presents the business hours of the stores
assessed where it talks about the punctuality of opening and closing time of the store and
extension of business hours in special occasions or whenever the respondent asks for
business hour extension.
As to punctuality with regards to opening time, 82 (41%) of the total number of
respondents said that the store always open on the time they were expected to, 82 (41%)
also said the store often do, 23 (11.5%) responded that it was only sometimes, 11 (5.5%)
declared the store rarely opens on time, and there were 2 (1%) who claimed that the store
never opens on the expected business opening time. In general, the small retail outlets
assessed often open on the expected time of business opening as indicated by the
weighted mean value of 4.16.
As to punctuality with regards to closing time, 79 (39.5%) of the total number of
respondents said that the store always close on the time they were expected to, 65
(32.5%) stated the store often closes on time, 42 (21%) responded that it was only
sometimes, and 14 (7%) claimed that the store rarely close on their expected business
41
Table 9. Business hours of the store
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
2 1 11
5.5 23 11.5
82 41 82 41 4.16
Often
Punctuality of opening
0 0 14 7 42 21 65 32.5 79 39.5 4.05
Often
Punctuality of closing
Extension of business
2 1 18 9 51 25.5 83 41.5 46 23 3.77
Often
hours
42
closing time. In general, the small retail outlets assessed often close on the expected time
of business closing as indicated by the weighted mean value of 4.05.
As to extension of business hours, 46 (23%) of the total number of respondents
said that the store always extends their business hours on special occasions, 83 (41.5%)
stated that the store often do, 51 (25.5) responded that it was only sometimes, 18 (9%)
declared the store rarely extend, and there were 2 (1%) who claimed that the store never
extend their business hours on special occasions. In general, the small retail outlets
assessed often extend their business hours during special occasions, as signified by the
weighted mean value of 3.77.
Credit service of the store. Table 10 presents the credit service of the stores which
covers the availability of credit service and interest on credit.
On the availabity of credit service, 74 (37%) respondents said that the seller
always allows credit in cases that the respondent was short for his/her payment, 48 (24%)
respondents claimed that the seller often allows credit, 39 (19.5%) said it was only
sometimes, 17 (8.5%) respondents stated that rarely do seller allow credit, and 22 (11%)
respondents declared that the seller never allows credit service. Overall, stores assessed
often allow credit to respondents who are short of cash for their payment with a weighted
mean of 3.68.
With regards to the interest on credit, a majority 129 (64.5%) respondents
declared that the seller never gives interest on their credit, 15 (7.5%) respondents said
that rarely does the seller add interest on their credit, 20 (10%) said it was only
sometimes, 14 (7) respondents claimed that often does the seller adds interest on their
credit, and 22 (11%) respondents claimed that the seller always adds interests on their
43
credit. In general, sellers of assessed stores rarely add interest on their customer’s credit
for having a weighted mean of 1.93.
Complaint handling of seller or the store staff. Table 11 presents the complain
handling of the stores where it talks about the accommodation of complain raised by the
respondent, the immediate action to complain, and the accommodation of defective and
inferior products.
As to accommodation of complain, 46 (23%) respondents said that the seller
always accommodate their complain, 60 (30%) respondents declared that the seller often
accommodates complain, 55 (27.5%) said that sometimes seller does, 22 (11%) stated
that the seller rarely accommodates complain, and 17 (8.5%) claimed that the seller never
accommodates their complain. Overall, sellers of assessed stores often accommodates
customer complain.
With regards to the immediate action to complain raised by the respondent, 59
(29.5) respondents answered that the seller always attends at once to the complain raised,
49 (24.5%) stated that the seller often does immediate action their complain, 60 (30%)
said that it was sometimes, 21(10.5%) stated that it was rarely that the seller attend to
their complain, and 11 (5.5%) claimed that the seller never attends to their complain.
Overall, sellers of assed stores often do attend at once to the customer who complains.
On the accommodation of defective and inferior products, most respondents with
a total number of 80 (40%) declared that the seller always accommodates the return of
defective and inferior products previously purchased by the respondent, 43 (21.5%)
respondent said that the seller often accommodates return of defective and inferior
products, 49 (24.5%) claimed that it was sometimes, 14 (7%) stated that it was rarely that
44
Table 10. Credit service of the store
NEVER RARELY SOMETIMES OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Availability of credit
22 11 17 8.5 39 19.5 48 24 74 37 3.68
Often
service
129 64.5
15 7.5 20
10 14 7 22 11
1.93
Rarely
Interest on credit
Table 11. Complain handling of the seller or the store staffs
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Accommodation of
17 8.5 22 11 55 27.5 60 30 46 23
3.48
Often
complain
Immediate action to
11 5.5 21 10.5
60
30 49 24.5 59 29.5 3.62
Often
complain
Accommodating return
14 7 14 7 49 24.5 43 21.5 80 40 3.81
Often
of defective and
inferior products
45
the seller accommodates defective and inferior products, and another 14 (7%)
respondents claimed that the seller never accommodates return of inferior or defective
products. Overall, sellers of assessed small retail outlets often accommodate return of
defective and inferior products previously purchased by the customer.
Customer satisfaction and referral
As emphasized by Berkowitz, Kern, and Rudelius (1989), and Buxton (2000),
customer service results to customer satisfaction and that satisfied customers refer the
business to a friend or someone related to him/her which would be of big help to the
business since additional customers would walk-in.
Table 12 presents the customer satisfaction and the referral from customers of
assessed small retail outlets which includes the enjoyable purchase experience, sales
return or purchase repetition, and the referral of the respondent.
As to the pleasant purchased experience, 56 (28%) respondents rated that their
purchased experience was always enjoyable, 62 (31%) respondents claimed that their
purchased experience was often been enjoyable, 64 (32) of them said that it was only
sometimes, 17 (8.5) stated that rarely do they enjoy their purchase, and only 1 (.5%)
asserted that his/her purchase experience was never been enjoyable. Overall, often do
respondents enjoy their purchase in assessed stores for having a weighted mean of 3.62.
For the purchase repetition or sales return, 67 (33.5%) respondents responded that
they would always return for further purchases, 59 (29.5%) respondents would often
return for further purchase, 51 (25.5%) said that they sometimes would return, 19 (9.5%)
claimed that they would rarely return for further purchases, and 4 (2%) respondents
46
Table 12. Customer satisfaction and referral
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Pleasant purchase
1 .5 17 8.5 64 32 62 31 56 28 3.78
Often
experience
Purchase repetition /
4 2 19
9.5 51 25.5 59 29.5 67 33.5 3.83
Often
Sales return
8 4 31
15.5
55 27.5 37 18.5 69 34.5 3.64
Often
Referral to a friend
47
would never return to the store to purchase again. Overall, respondents of the assessed
store would often return for further purchases.
With regards to the referral of the respondent, 69 (34.5%) respondent would
always refer the store to a friend, 37 (18.5%) respondents would often refer the store to a
friend, 55 (27.5%) respondents would sometimes refer the store to a friend, 31 (15.5)
respondents would rarely refer the store, and 8 (4%) respondents would never refer the
store to a friend. Overall, respondents would often refer the assessed stores to their
friends for having a weighted mean of 3.64.
Common complaints towards the store
Common customer complains were brought out during the transaction process as
noted from Santos (2007), Adams (2003), Berry (2005), Gabogrecan (2007), and Seavey
and Wells (2005) where Table 13 presents the common complaints of the respondents
towards small retail outlets.
As to the seller, 61 respondents (30.50%) experienced unfriendly and rude seller
or store staffs, 39 respondents (19.50%) experienced inattentive seller or store staffs, and
17 respondents (8.50%) experienced inefficient or unknowledgeable seller.
With regards to the products being offered by the store, 135 respondents (67.50%)
experienced unavailability of products wanted, 31 respondents (15.50%) experienced
purchasing defective and low quality products, 7 respondents (3.50%) experienced
buying altered products, and 12 respondents (6%) experienced purchasing products
which weights were reduced.
48
During the checkout of the respondent, 57 respondents (28.50%) encounter
paying high priced products, 46 respondents (23%) encounter seller/cashier without
enough amounts for change, and 31 respondents (15.50%) encounter long queue.
Other complains indicated was that the store is a “tsismis” avenue where the
customer is directly affected and in relation to the top most frequent common customer
complain that the customer encounter, it was also emphasized by Miranda (1979), that
the seller should obtain goods that will appeal to customers focusing on what the
customers really need and wanted and that seller should also know what to stock and not
to be burdened with large reserve stock.
Table 13. Common complaints towards the store
COMMON COMPLAINTS TOWARDS THE STORE
FREQUENCY PERCENTAGE
(f)
(%)
Defective and low quality products
31 15.50
Rude and unfriendly seller/store staff
61 30.50
Inattentive seller/store staff
39 19.50
Inefficient or unknowledgeable seller/store staff
17 8.50
Unavailable products
135 67.50
Seller/cashier doesn’t have enough amounts of
46 23.00
money for change
High prices of products offered
57 28.50
Dirty products
23 11.50
Altered and products
7 3.50
Reduced weights of products
12 6.00
Long queue when checking out
31 15.50
49
Factors that customers consider in choosing a store to buy/purchase
Common factors that customer consider in selecting a store to buy/purchase
includes store layout, sanitation and cleanliness, credit service, merchandise display,
pricing , and sellers accommodation where in Table 14 it shows that most customers
with a frequency of 174 (87%) consider pricing as the primary factor, followed by
sanitation and cleanliness with a frequency of 157 (7.5%), sellers accommodation with a
frequency of 107 (53.5%), store layout with a frequency of 97 (48.5%), merchandise
display with a frequency of 93 (46.5%) and credit service as the least factor with a
frequency of 63 (31.5%).
Other
factor
indicated was location.
Table 14. Factors that customers consider in choosing a store to buy or purchase
FACTORS FREQUENCY
PERCENTAGE
(f)
(%)
Store Layout
97
48.50
Sanitation and Cleanliness
157
78.50
Credit Service
63
31.50
Merchandise Display
93
46.50
Pricing
174
87.00
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary
The study was conducted to determine the customer orientation of small retail
outlets in La Trinidad and to be able to identify the customer service of the small retail
outlets in terms of the accommodation of the seller towards the customer, the store’s
merchandise display and availability, pricing, layout, sanitation, business hours, credit
service, and complain handling. It also intended to determine the customer satisfaction
towards a particular retail outlet, the common customer complaints towards small retail
outlets, and the factors that the customers consider in patronizing or choosing a small
retail outlet to buy or to purchase. In addition, the study was expected to provide
information on how small retailers nowadays deal, settle, approach, handle, and value
their customers; and on how customers rate the satisfaction they get from patronizing
retail outlets as well as their complaints on service rendered, which would give valuable
insights to retailer into what areas of customer care need improvement thereby aiding
them in enhancing services and staying competitive.
The study was conducted in the municipality of La Trinidad, Benguet from
December 2007 to February 2008. It covered the selected small retail outlets from Km. 4
to Km. 6 particularly from the barangays of Balili, Lubas, Betag, Pico, and Tabangawen
where a total of 200 respondents were asked to answer a survey questionnaire.
The data gathered covers the customer accommodation by the seller or the store
staff, the store and its environment, the store services, the customer satisfaction and
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
51
referral, the common complaints towards the store, and the factors that customers
consider in choosing a small retail outlet to shop or buy from.
On the accommodation of the seller towards the customer, it appears that most
sellers of assessed small retail outlets were accommodating and friendly that they greet
the customer upon entry to the store and by projecting professional appearance
appropriate to the nature of the retail store. Sellers of assessed stores also leave the
customers the desire to return to the store for further purchases by assisting and helping
the customer whenever the customer experiences difficulty in buying; and, by wrapping
and placing the purchased goods in a bag.
For the merchandise display, availability, pricing, store layout, and sanitation,
respondents say that most assessed small retail outlets in La Trinidad offer variety of
merchandise display that were of perceived quality where its pricing were just fair and
reasonable. Furthermore, most stores are perceived to have clean environment as well as
in their offered products being free from contaminations.
With regards business hours, credit service and complaint handling, collected
data shows that most assessed small retail outlets does provides such services. Most
stores often open and closes at the time the customer expect and extent business hours
when asked by customers, often allow credit in cases the customer is short for his/her
payment, and often accommodates customer complains. This reflects flexibility in
operation of the store.
Data gathered on customer satisfaction towards a particular retail outlet, most
respondents recognized that their purchase transaction was pleasant giving them the
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
52
desire to shop again and that they would refer the store to a friend or someone related to
them.
On the common customer complaints towards small retail outlets, most
respondent experiences unfriendly and rude seller or store staffs, inattentive seller/store
staff, and inefficient or unknowledgeable seller. Also, most respondents experiences
unavailability of wanted products and purchasing defective and low quality products,
dirty or contaminated products, altered products, and products which weights were
reduced. Furthermore, most respondents encounter during their checkout were paying
high prices, seller/cashier without enough amounts of change, and long queue. In
addition, other complains such as “tsismis” avenue was indicated.
As to what customers consider in patronizing or choosing a small retail outlet to
buy or to purchase, most respondents considers pricing as the primary factor followed by
sanitation and cleanliness, sellers accommodation, store layout, merchandise display , and
that credit service as the least considered factor.
Conclusions
Based on the findings, conclusions were derived;
1. Sellers or store staffs of assessed small retail outlets are customer oriented.
2. Small retail outlets are flexible in their operation with regards to business hours.
3. Assessed small retail outlets provide services which are recognized by their
customers.
4. Customers of assessed small retail outlets were satisfied with the services of the
store and that they are pleased with the store such that they patronize it.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
53
5. Most customers of assessed small retail outlets encounter unavailability of wanted
products.
6. Most customers of assessed small retail outlets recognize the accommodation of
the seller as one factor in selecting a store to purchase to buy.
Recommendations
1. Although the results show that most customers are pleased with the store services
reflecting their high customer orientation, there is still room for improvement
since the overall mean corresponds to OFTEN and that they should gear towards
perfection of more effective customer service.
2. It is also recommended that sellers of small retail outlets provide goods that will
appeal to customers focusing on what the customers really need and want.
3. It is also recommended that the DTI provide seminars to the sellers of small retail
outlet on improving customer service and include it during the availing of
business permit.
4. A follow-up study should be done considering the representation of higher age
bracket or the adults and the representation of the total number of small retail
outlets, and also to seek the consent of the customers who quit doing business to
the small retail outlets to further determine what factors caused them to stop doing
purchase.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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Trinidad, Benguet. Undergraduate Thesis. Benguet State University. La Trinidad,
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JUSSAUME R. A. JR., 2000. Building Trust with Customers. Retrieved December 9,
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Consmr.pdf
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Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
APPENDIX
SURVEY QUESTIONNAIRE
Date: ________________________Time: _______
Name: (optional) _________________________________________________________
Age: ________
Civil Status: ______
Sex: (_) female (_) male
Name of the Retail Outlet:_________________________________________________
How often do you buy/purchase at this store in a week?
(_) 1-3 Times
(_) 4-6 Times
(_) More than 6 Times
Please rate the store accordingly. Check the columns that correspond to your answer:
5 – Always
4 – Often
3 – Sometimes
2 – Rarely
1 – Never
I. Accommodation of the Seller/Store Staff
A. Entrance to the Store and During Shopping
5 4 3 2 1
1. Were you greeted in a friendly, professional manner by the
seller/store staff as soon as you enter the store?
2. If you experienced any difficulty finding or selecting what you
needed, was the seller/store staff easy to find and helpful to you?
3. If you asked any questions, was the seller/store staff
accommodating in answering and helping you?
4. If the seller/store staff doesn’t know the answer to your
questions, does he/she urgently find ways to be of further help?
5. Over all, are the sellers/store staff knowledgeable and helpful?
B.
Checkout
5 4 3 2 1
1. Did the seller/cashier give you the correct amount of change for
your purchase, if there is?
2. Was the process of paying your purchase fast and trouble-free?
(Example: You don’t have to wait for the cashier to find the
necessary change if you have a big bill.)
3. Did the seller/store staff wrapped or put your purchase in a bag?
4. Did the seller/store staff thank you after payment of purchase?
5. Overall, was the payment or checkout experience positive,
leaving you with the desire to return to the store for further
purchases?
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
58
C. Seller/Store Staff Appearance
5
4
3
2
1
1. Does the seller/store staff exhibit cleanliness in appearance?
(The seller/store staff has washed his/her face or took a bath.)
2. Does the seller/store staff exhibit a cheerful mood?
3. Overall, does the sellers/store staff have a professional
appearance appropriate to the nature of the retail store?
II. Store and Environment
A. Merchandise Display and Availability
5
4
3
2
1
1 Is the store providing the type of product you want?
2. Are the products being offered of perceived quality and exact in
figures or quantity? (Example: Products are not expired. Products
are exact in quantity.)
3. Are the products available in standard and accustomed divisions?
(Example: Sugar–1 Kg., ½ Kg.; Lard–1 Kg., ½ Kg., ¼ Kg.)
4. Is there a variety of merchandise in display offering choices at
the store? (Example: Milk–Powder, Evaporated, Condensed, etc.;
Milk Brands–Bear Brand, Alaska, etc.)
5. Overall, is the store providing the expected type and variety of
products?
B.
Pricing
5 4 3 2 1
1. Are the prices of products easy to determine?
2. Are the prices of products of good value for purchase?
3. Does the store provide discounts for particular products?
4. Overall, are the prices fair and reasonable?
C. Store Layout
5
4
3
2
1
1. Are the products you wanted easy to find and locate?
2. Are products of the same kind or category in display next to each
other or grouped together?
3. Overall, does the store layout facilitate in your convenience of
purchase?
D.
Sanitation
5 4 3 2 1
1. Is the store and its surroundings clean at all times?
2. Are the products free from contaminations from insects or other
animals? (Example: rat manure and urine, cockroach manure, etc.)
3. Overall, are the store, its surroundings, and products clean?
III. Store Services
A. Business Hours
5
4
3
2
1
1. Does the store open at the time you expect?
2. Does the store close at the time you expect?
3. Does the store extend their business hours during special
occasions or when they are asked to?
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
59
B. Credit Service
5
4
3
2
1
1. Does the seller allow credit if in case you were short for your
payment?
2. Does the seller add interest to your credit upon payment?
C. Complain Handling
5
4
3
2
1
1. Does the seller/store staff accommodates complain?
2. Does the seller/store staff attend to you at once when you have
complains?
3. Does the store accommodate return and exchange of previously
bought products?
Customer Satisfaction and Referral
5
4
3
2
1
1. Was your purchase experience enjoyable?
2. Do you plan to shop again?
3. Would you refer a friend to purchase here?
Which of the following are your common complaints towards the store? (You may check
more than one.)
(_) Defective and low quality products
(_) Rude and unfriendly seller/store staff
(_) Inattentive seller/store staff
(_) Inefficient or unknowledgeable seller/store staff
(_) Unavailable products
(_) Seller/cashier doesn’t have enough amounts of money for change
(_) High prices of products offered
(_) Dirty products
(_) Altered and Products
(_) Reduced Weights of Products
(_) Long queue when checking out
Others Please Specify: ________________________________________________
________________________________________________
Which of the following is important for you when deciding where to purchase? (You may
check more than one.)
(_)
Store
Layout
(_) Sanitation and Cleanliness
(_)
Credit
Service
(_) Merchandise Display
(_) Pricing
(_)
Seller’s
Accommodation
Others Please Specify: ________________________________________________
THANK YOU!!!
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
KALANG-AD, BENEDICT M. APRIL 2008. Customer Assessment On
Customer Service Of Small Retail Outlets In La Trinidad, Benguet. Benguet State
University, La Trinidad, Benguet.
Adviser: Mr. Clifton D. Llanes, MSc
ABSTRACT
The study was conducted to determine the customer orientation of the small retail
outlets in La Trinidad and to be able to identify the customer service of the small retail
outlets, to determine the customer satisfaction towards a particular retail outlet, to
determine the common customer complaints towards small retail outlets, and to
determine the factors that the customers consider in patronizing or choosing a small retail
outlet to buy or to purchase.
The study was conducted in the municipality of La Trinidad, Benguet from
December 2007 to February 2008 where a total of 200 respondents who are customers of
the selected small retail outlets were asked to answer a survey questionnaire.
The study shows that sellers or store staffs of assessed small retail outlets were
customer oriented wherein they provide variety of quality products with fair and
reasonable prices, maintains the cleanliness of their store environment including the
products, and projects themselves in a friendly professional manner, as well as the store.
Moreover, assesses small retail outlets allows credit services, return and exchange of
defective and inferior products, extended business hours, and accommodates customer
complains. Furthermore, customers of assessed small retail outlets acknowledge that their
purchase experience was pleasant giving them the desire to shop again and would refer
the store to a friend. However, most customers of assessed stores encounter unavailability
of wanted products.
In addition, most customers of assessed small retail outlets in La Trinidad
recognize the accommodation of the seller as one factor in selecting a store to purchase or
to buy from.
It was then recommended that the sellers of assessed small retail outlets in La
Trinidad should further improve and gear towards perfection of more effective customer
service and provide goods that will appeal to customers focusing on what the customers
really need and want.
It is also recommended that the DTI provide seminars to the sellers of small retail
outlet on improving customer service and include it during the availing of business
permit.
Lastly, a follow-up study should be done considering the representation of higher age
bracket or the adults and the representation of the total number of small retail outlets, and
also to seek the consent of the customers who quit doing business to the small retail
outlets to further determine what factors caused them to stop doing purchase.
ii
TABLE OF CONTENTS
Page
Bibliography…...…………………………………………………………………… i
Abstract……………………………………………………………………………...
i
Table of Contents…………………………………………………………………...
iii
INTRODUCTION………………………………………………………………….. 1
Rationale……………………………………………………………………...
1
Objectives of the Study………………………………………………………
3
Importance of the Study……………………………………………………...
3
Scope and Delimitations of the Study………………………………………..
4
REVIEW OF LITERATURE
5
Retailing……………………………………………………………………...
5
Retail Outlet Defined…………………………………………………………
6
Importance of Customer Service in Retailing………………………………..
7
Accommodation of the Seller/Retailer Towards
the Customer………………………………………………………………….
8
Merchandise Display, Availability, Pricing,
Layout and Sanitation………………………………………………...………
10
Business Hours, Credit Service, and
Complaint Handling………………………………………………..………...
11
METHODOLOGY………………………………………………………………… 14
Locale and Time of the Study………………………………………………..
14
iii
Respondents of the Study…………………………………………………….
14
Data Collection……………………………………………………………….
15
Data Gathering………………………………………………………………..
15
Data Analysis…………………………………………………………………
16
RESULTS AND DISCUSSION…………………………………………………….
18
Respondents’ Profile…………………………………………………………
18
Accommodation of the Seller/Store Staff…………………………………….
20
The Store and Environment…………………………………………………..
29
Store Services………………………………………………………………...
40
Customer Satisfaction and Referral…………………………………………..
45
Common Complaints towards the Store……………………………………...
47
Factors that Customers Consider in
Choosing a Store to Buy/Purchase…………………………………………...
49
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS………………….
50
Summary……………………………………………………………………...
50
Conclusions…………………………………………………………………..
52
Recommendations……………………………………………………………
53
LITERATURE CITED……………………………………………………………...
54
APPENDIX……………………………………………………………………....
57
iv
INTRODUCTION
Rationale
Small retail outlets are categorized as micro enterprises by the Department of
Trade and Industry (DTI) for having capitalization of less than three (3) million pesos
with the employment of 1-9 (DTI, 2004). It could be associated to sari-sari stores,
convenience stores, mini-marts, mini-shops, and other small stores or shops catering
products or services directly to the consumer. The retail industry is in the market
structure of perfect competition wherein the market consists of a very large number of
firms producing a homogeneous product (Wikipedia, 2007) which is true in La Trinidad
since retail outlets are almost adjacent to each other making competition stiffer and
meeting customer expectations more of a challenge. However, it is more difficult to
entice customers especially if one store offers the same products as the others.
Retail strategies such as providing discounts, offering the least price, and others
would probably be attractive to most economical consumers, however as Santos (2007)
said, “in a competitive market, what differentiates you from your competitors is your
customer service”. Also, according to Lopo Rego as cited by Snee (2006), "smaller
businesses that can't compete on price survive by offering great customer service. They
know best their customers by name and greet them when they come in. They know what
their customers want and they make them feel good when they shop there.” Walters
(2007) also stressed that by making the business unique, offering exceptional customer
service and having a cozy atmosphere, the retailer can take a fair share of the market.
Hence customer service is a strategic marketing tool in building customer relationship.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
2
Customer service, as defined by John Berry (2005), is a process of providing
competitive advantage and adding benefits to the supply chain in order to maximize the
total value to the ultimate customer. It is the provision of service to customers before,
during, and after a purchase and 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” (Wikipedia, 2007).
And how a retail outlet value customers in terms of service is known as Customer
Orientation.
Customer Orientation is the set of beliefs in sales that says that customer needs
and satisfaction are the priority of an organization (Wikipedia, 2007). It is also regarded
that customer orientation is a core success factor that enterprises remain in business
(Vogt, 2004). It recognizes that one valid purpose of having business is to create
customers as quoted from Drucker (2005), wherein the customer is “KING” and as Sam
Walton puts is: “There is only one boss: the customer”. Hence, marketing’s primary
purpose: to satisfy customers’ needs and wants at a profit (Jussaume Jr., 2000; Kotler and
Keller 2006). It is also the case that ‘without customers you do not have a business’
(Gabogrecan, 2007).
Since customers are primary reasons of business existence, the study will then be
conducted to determine how customer oriented small retail outlets in La Trinidad are.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
3
Objectives of the Study
The study was conducted to determine the customer orientation of the small retail
outlets in La Trinidad and to be able to:
1. Identify the customer service of the small retail outlets in terms of:
i. Accommodation of the seller towards the customer
ii. Merchandise Display, Availability, Pricing, Layout, and Sanitation
iii. Business hours, Credit Service and Complaint Handling
2. Determine customer satisfaction towards a particular retail outlet.
3. Determine the common customer complaints towards small retail outlets.
4. Determine what customers consider in patronizing or choosing a small retail
outlet to buy or to purchase.
Importance of the Study
The study is expected to provide information on how small retailers nowadays
deal, settle, approach, handle, and value their customers. It would also give information
to government agencies like the Department of Trade and Industry of what programs,
assistance, trainings, and seminars should they provide to local retailers for them to
improve their operations.
The results would also provide information on how customers rate the satisfaction
they get from patronizing retail outlets as well as their complaints on service rendered,
which would give valuable insights to retailer into what areas of customer care need
improvement thereby aiding them in enhancing services and staying competitive.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
4
Scope and delimitation of the study
The study was conducted on selected small retail outlets in La Trinidad wherein
the small retail outlets are those categorized under Micro Enterprises by the Department
of Trade and Industry which are Sari-sari Stores and Convenience Stores.
The study was conducted base on customers’ point of view on the performance
and satisfaction derived from the services provided by the small retail outlet and would
exclude other concepts such as perceptions and expectations towards the small retail
outlet. The study was based on the assessment of customers presently buying or
purchasing on the small retail outlet during the conduct of the study since convenience
sampling was the method used in looking for respondents.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
REVIEW OF LITERATURE
This chapter discuss about the related literature accessed from books, articles, and
the World Wide Web where it talks about retailing in the Philippines, retail outlet,
importance of customer service, and the elements of customer service which includes the
accommodation of the seller or the retailer towards the customer, merchandise display,
availability, pricing, layout, business hours, credit service, sanitation, and complaint
handling of the retail outlet.
Retailing
Retailing in the country dates back when Chinese merchants engaged themselves
in all sorts of retail business with the establishment of Parian, a market and trading
center, that spread all over the country. The growth and development of retailing in the
country resulted from the upgrade of the people’s standard of living with their desire to
satisfy their wants and needs as noted from Miranda and Miranda (1982).
“Retail Trade” as defined by Republic Act No. 1180 otherwise known as
Nationalization Retail Act, is any act, occupation, or calling of habitually selling direct to
the general public, merchandise, commodities, or goods for consumption. It says that no
Filipino citizen shall engage directly or indirectly in retail business which gave Filipinos
the right to man and enjoy the retail trade in the country thus establish different retail
stores and which common is Sari-sari Stores that became indispensable in our economic
society since it serves as a connecting link between producer and consumer wherein the
desire of customers to obtain goods at their convenience and in the amounts (Miranda and
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
6
Miranda, 1982). However, the Act was amended on July 26, 1991 to R.A, 8762 otherwise
known as Retail Trade Liberalization Act of 2000 which provides that in order to bring
down prices for the Filipino consumer, create more jobs, promote tourism, assist small
manufacturers, stimulate economic growth and enable Philippine goods and services to
become globally competitive, the Philippine retail industry was then liberalized to
Filipino and Foreign Investors. As a result, competition in the retail industry in the
country became harder and stiffer; but in the other side of the coin, retailers now offer
higher quality goods, better services, wider choices, and lower prices.
Retail Outlet Defined
A retail outlet is a store selling merchandise and/or services directly to the public
in unlimited quantities (Business Dictionary, 2007) or to individuals making purchases
for themselves or their families (Microsoft Encarta, 2007). Retail outlet includes specialty
stores, department stores, discount stores, retail chain stores, warehouse retailers, and off-
price retailers (Microsoft Encarta, 2007), however new types of general merchandise
retailers have emerged over time because they have attracted and maintained a significant
customer base which includes specialists, home-improvement centers, off-price retailers,
catalogue showrooms, warehouse clubs, and hypermarkets. A retailer can also be a
manufacturer or a wholesaler in the distribution chain; most retailers direct their efforts to
satisfying needs of ultimate consumers (Spirou, 2007).
According to Miranda and Miranda (1982), Sari-sari stores as retail outlet are
unique since it caters to general public in a way that will tend to redound to the benefit of
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
7
its customers and it also likewise devise ways and means to offer better merchandise and
offer them for sale at the lowest possible price.
Importance of Customer Service in Retailing
According to Kurtz, Dodge, and Klompmaker (1988), and also with Woodcock,
Stone, and Machtynger (2000), customers are a firm’s most valuable asset where their
rights must be understood and respected. This account for the “sovereignty of consumer”
where the customer is “King” and that his wants and needs must be given not only
preferential attention but doubtlessly be satisfied if that is possible in any given
circumstance (Miranda 1990). It is why in any varying degree, all firms attempt to satisfy
customer needs and wants through a set of activities known as customer service which
emphasizes that without customers, profit is not possible (Pride and Ferrell, 1989).
Worms and Brown (1990) further state that customers are extremely important to the
success of a business and should be treated with care. Berkowitz, Kern, and Rudelius
(1989) also noticed that companies now see customer service as a strategic tool for
increasing customer satisfaction and sales, and that better customer service builds-up
customer retention which businesses today believe that it is more profitable to sell to
existing customers than to new ones. As a result, marketing now also involves finding
ways to turn one-time purchasers into lifelong customers (Microsoft Encarta, 2007).
However Woodcock, Stone, Machtynger (2000) also emphasized that customers are
expensive to acquire and not easy to keep. Moreover, Buxton (2000) also discussed that,
serving customers better creates satisfied customers, builds repeat business, and drives
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
8
profitability. Furthermore, she also cited that most North American companies spend 3%
of their revenues to learn more about how they are doing with customers.
Lake (2007) also stressed that customer retention is not only a cost effective and
profitable strategy, but in today's business world it is necessary because 80% of business
sales come from 20% of the customer and clients and after all, many experts (Kotler and
Keller, 2006; Santos, 2007; Worms and Brown, 1990,) will tell that it is five times (5x)
more expensive to acquire new customers. In addition it is often easier to re-attract ex-
customers (because company know their names and histories) than to find new ones
(Kotler and Keller, 2006).
Elements of Customer Service in Retailing
Accommodation of the Seller/Retailer Towards the Customer
Effective customer service starts from the seller wherein according to Berry
(2005) most consumers often feel uncomfortable buying some of the products or availing
of a service unless they feel the sense of friendliness and comfort from the seller. It could
also be related from what Gabogrecan (2007) said, “Never underestimate the importance
of making your customers feel special – you, as a customer, like to feel special – don’t
you?” In relation, Seavey and Wells (2005) also discussed that the customer's concern
does not end with the decision to purchase where the customer immediately begins to re-
evaluate the product or service. "Did it perform as I expected? Was I treated as a valued
customer?" If the customer is satisfied with the re-evaluated purchase, the business would
have a loyal customer and more purchases will follow. They further emphasized that
courteous service every time will keep the customers coming back.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
9
Moreover, Kowal (2007) discussed the difference of Core Service and Quality
Service wherein Core service is the procedural side of service, consisting of established
systems and procedures to deliver the product or service; it is the business “reason for
being” which includes three elements: cost, delivery and quality wherein it could be
easily replicated by a competitor. On the other hand, Quality Service is the personal side
of service, including people and processes that incorporates how the customer is treated
in the interactions while conducting business; it is this personal side of business that
enables an organization to differentiate themselves – to consistently meet and exceed the
customer's expectations and provide them with a reason to want to return.
Furthermore, Obarski (2002) highlighted three “A” of comfort zones that a seller
should posses: First “A” would be “Attitude” which pertains to the behavior that a seller
shows to a customer wherein according to Santos (2007) and Berry (2005) an effective
approach in customer service would be greeting the customers with a friendly smile and
ending the transaction by thanking the customer and by telling the customer to come
back. She also cites that three (3) out of four (4) customers leave a store because of
impolite, inattentive salespeople which are the most common complains towards the
seller. In addition, a survey of consumers as cited by Santos (2007) and Adams (2003)
shows that Sixty-eight percent (68%) of customers quit doing business resulting from the
indifferent, uncaring attitudes of owner, manager or some employees toward customers,
14% due product dissatisfaction, 9 percent - competitive reasons, 5% due to friends’
influence, 3 % because customers move away, and 1% due to death. Meanwhile, the
Second “A” stands for “”Audience” in which the seller should be a good audience that
gives attention to customers since customers are like actors in a play where making eye
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
10
contact, listening to their needs and finding a way to satisfy their wants is part of being a
good audience. On the other hand, the third “A” stands for Awareness or Alertness of
what is happening around and to move when necessary since most customers won’t ask
directly when they need help (Berry, 2005). In addition Miranda and Miranda (1982)
stressed that in most stores seller play the role of helpers instead of a seller thus giving
assistance when needed and not to interlude. Common complaints also arise due to delays
and long waits due to the inattentiveness of the seller Santos (2007).
Merchandise Display, Availability, Pricing, Layout and Sanitation
According to Miranda (1979), the fact that the seller is obtaining goods for resale
it is important that the seller should obtain merchandise that will appeal to customers thus
purchase what the customers really need and wanted. The seller should also know what to
stock and not to be burdened with large reserve stock.
It is also important that the seller is knowledgeable about the goods that he/she is
offering, according to Berry (2005) knowing the product being offered would trigger
good customer service. The seller should also be acquainted with the prices also with the
merchandise display so that the seller would be easily located the product. It is also the
case that most customers complain due to the long queue due to the wondering of the
seller. In addition Miranda and Miranda (1982) made mention that most seller don’t
employ trained laborers that in the absence of the seller, members of the family were
being told to operate which results to the changes in pricing and the unavailability of the
product since the one told to operate is not knowledgeable of the offered products thus
results to customer complaints.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
11
Seavey and Wells (2005) also stressed that quality products should be offered and
as noted from Santos (2007), most customers complain due to defective or inferior
products where the Department of Trade and Industry reminds the consumers that only
those defective goods can be returned or exchanged and one cannot return the goods nor
ask for a refund if the customer only had a change of mind. Moreover Duncan, Hollander,
and Savitt (1983) also emphasized that the retailers’ most basic service is to offer
desirable goods at reasonable prices in a convenient way through attractive and well
located stores wherein goods should be attractively displayed through noticeable layout
so that browsers would be enticed to buy by looking at the properly layout displayed
products and would also affect in the convenience of the customer in buying and the
availability of the product is also influential.
According to Berry (2005), the cleanliness, care, and beauty of the outlet, all
contribute to that sense of welcome and comfort that is communicated to the customer
thus sanitation of the store should always be given importance.
Business Hours, Credit Service, and Complaint Handling
According to Miranda and Miranda (1982) also with Pride and Ferrell (1989), and
Duncan, Hollander, and Savitt (1983), small retail outlets are providing services to attract
and hold customers like providing credit to customers and extended business hours
wherein the stores opens early in the morning and late in the evening; hence the reasons
for their continued patronage.
As quoted from H. Gordon Selfridge, “The customer is always right” and it is
accepted by most customer-oriented businesses. According to Jim (2007), Customers are
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
12
always right when they believe they are right, they may be dead wrong but by
understanding the situation and acknowledging their belief, the seller would begin to
present a different way of looking at the situation. In contrast, according to Walters
(2007), “Customers make honest mistakes and sometimes they want something for
nothing and that while the customer isn't always right, it's the job of retailers is to make
them feel like they are always important.”
A customer complaint is an opportunity to improve service or products.
According to Berry (2005), it is harder to satisfy a customer who has a complaint, or who
has had a bad experience. Santos (2007) also discussed that an unsatisfactory experience
is easier to remember, describe and record. Statistics indicate that 91% of dissatisfied
customers slip quietly and never return. And an unhappy customer tells 20 people and a
happy one tells on 3 or 4 people.
Mehrmann (2007) also emphasized that it is important to recognize that the
majority of customers who complain are loyal customers who care about the business.
Customers who take the time to complain are also taking the time to tell what went
wrong. Customers who are disappointed and do not complain are already lost, but you
have a chance to save the ones who are loyal enough to give you the opportunity to
respond. He also stressed that if one customer complains, it is typically an indication that
there are several more with the same experience and if a complaining customer is irate, it
is because the customer is disappointed and that the customer is not complaining about
the business, rather they are expressing the dissatisfaction to business. In addition, Kowal
(2007) cited that one reason why customer call the attention of the business is for the
desire to be heard or to be understood.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
13
In general, satisfaction of the purchaser/buyer would be the result from the
services offered by the small retail outlets to the customers, thus consciously or
unconsciously providing customer service to the customers wherein the dissatisfaction of
customers on the services would result to complaints.
According to Duncan, Hollander, and Savitt (1983), no retailer can completely
eliminate customer complaints. Moreover Kurtz, Dodge, and Klompmaker (1988)
stressed that most difficult aspects of ensuring repeat business is handling complaints and
that the best way to handle it is by avoiding them by putting emphasis in customer
service.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
METHODOLOGY
This chapter presents the process on how the researcher conducted the study. It
discussed the location and time of conduct of the study, the method use in selecting the
respondents, how data were collected, and the statistical method employed to analyze the
data gathered
Locale and Time of the Study
The study was conducted in the municipality of La Trinidad, Benguet from December
2007 to January 2008. It covered the selected small retail outlets particularly the barangays
located from Km. 4 to Km. 6 namely Balili, Pico, Lubas, Mamaslyn, Betag, and Tabangawen
since it is where most small retail outlets are adjacent to each other.
Respondents of the Study
The respondents of the study were the customers of the selected small retail outlets.
According to Kurtz, Dodge, and Klompmaker (1988), existing customers are ideal source of
information whether they’re purchase experience are satisfactory or not and that if their
experience would be shared to friends and acquaintances.
Using the survey cited by Santos (2007) and Adams (2003) that 68% of customers
quit doing business as a result from the indifferent, uncaring attitudes of owner, manager or
some employees toward customers, the researcher then draws an assumption that out of 100
respondents it is possible that 68 respondents are still satisfied with the service of the small
retail outlet since they’re still purchasing on it which gives a confidence interval of 9.14%
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
15
that results to 199 respondents which was rounded to 200 in a confidence level of 99% using
a sample size calculator..
Data Collection
Data collected were based on the objectives of the study. Survey questions would be
patterned from Mystery Shopping. Mystery Shopping/Test Shopping/Silent Shopping is a
tool to measure quality of retail service. It allows a “view” from outside to counteract
professional blinders, the actions and reactions of sales representatives/seller before, during,
and after the purchase of the customer, that offers an opportunity to retain customers and
improve internal processes that helps to identify areas which already work well, and those
which still need improvements as noted from Vogt (2004) and from Wikepedia (2007).
The “view” from the outside are the simple observations of the retail outlets’ sale and
services provided from the point the respondent enters the store, during the transaction
process including inquiry, and until the customer checked out. It also includes the
observations from the store environment as well as the products being offered. These views
from the outside are important information for the business to focus on what aspect of
operations needs improvement.
Data Gathering
Convenience sampling under Non-probability sampling method was used. It is an
appropriate sampling method according to Swanson and Gallowey (1997) for undetermined
population size, since customer populations of small retail outlets were unknown, and for
limited time of study.
Customer Assessment On C ustomer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
16
Since the study covered Km. 4, 5, and 6 particularly from barangays Balili, Pico,
Lubas, Mamaslyn, Betag, and Tabangawen ten (10) small retail outlets would be selected
per kilometer a total of 30 small retail outlets wherein a particular small retail outlet would be
evaluated by only 7 respondents.
The respondents were asked to answer the survey questionnaire immediately the
researcher.
The data gathered talks about the accommodation of the seller or the store staff, the
store and its environment, the store services, the customer satisfaction and referral, the
common complaints towards the store, and the factors that customers consider in choosing a
small retail outlet to shop/buy. The data collected were in Likert scale ranging from 1 to 5, 5
being the highest and 1 being the lowest with a descriptive equivalence of:
1.00-1.80
=
Never
1.81-2.60
=
Rarely
2.61-3.40
=
Sometimes
3.41-4.20
=
Often
4.21-5.00
=
Always
Data Analysis
The data were analyzed according to the objectives of the study. The collected data
was tabulated and presented using frequency, percentage, and weighted mean.
Frequency, percentage, and weighted mean are used to describe simple features or
simple summaries about the sample and the measures. Frequency is the quantitative measure
of the number of occurrence. On the other hand, Percentage is a way of expressing a number
Customer Assessment On C ustomer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
17
as a fraction of 100 used to express how large one quantity is relative to another quantity.
Meanwhile, Weighted Mean is the average with weight so that a data with a high weight
would contribute more to the weighted mean likewise to the data with a low weight wherein
the weights pertained to are the scales corresponding to a qualitative value or descriptive
equivalence.
Percentage is computed as
Xi
N x 100
Where
:
Xi = Frequency
N = Total number
Weighted mean is computed by:
Or
Where:
Xi = Frequency
Wi = Weights
X = Weighted mean
Customer Assessment On C ustomer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
RESULTS AND DISCUSSION
This chapter presents results and interpretations from the survey questionnaire
answered by 200 respondents residing in the municipality of La Trinidad who are
customers of small retail outlets located from Km. 4 to Km. 6 particularly from the
barangays of Balili, Lubas, Betag, Pico, and Tabangawen.
The data gathered covers the customer accommodation by the seller or the store
staff, the store and its environment, the store services, the customer satisfaction and
referral, the common complaints towards the store, and the factors that customers
consider in choosing a small retail outlet to shop/buy from.
The collected data were tabulated and presented using frequency, percentage, and
weighted mean to determine trend of responses and were analyzed according to the
objectives of the study.
Respondents’ Profile
Table 1 presents the respondents’ profile that shows age, sex, civil status, and
frequency of buying. It shows that most of customers of small retail outlets were
teenagers, single, and females who buy or purchase at the store around 1 to 3 times in a
week.
Age. Majority of the respondents present during the conduct of the study were
teenagers with a frequency of 106 (53%). 76 (38%) of respondents belong to the age
range of 20-29, 10 (5%) respondents were at the age range of 30-39, and 8 (4%) of the
respondents were at the age range of 40-49. Majority of respondents were teenagers since
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
19
the location of study particularly from km. 5 to km. 6 were dominated by boarding
houses whose residents were students. In relation, a study conducted by Julian (2006) on
Consumer’s Choice of Market Outlets for Grocery in La Trinidad reflects that most
consumers distinguish and select a particular outlet for specific type of product wherein a
significant factor that influence a consumers’ decision to purchase from a particular
market outlet as to location is the accessibility, short walking distance adjacency, and
nearness of the outlet. Also, he concluded that most married customers who are at their
middle age purchases at larger market outlets such as groceries and supermarkets for their
household needs and purchases only at sari-sari stores or small retail outlets for
unplanned or emergency situations.
Sex. Females dominated the males where 129 (64.5%) respondents were females
and 71 (35.5%) respondents were males.
Civil status, Most respondents (80.5%) were single since most of them were
teenagers and 39 (19.5%) were married.
Frequency of buying. Most respondents were frequent buyers and can easily
assess the customer orientation of the small retail outlet since 96 (48%) of the total
respondent buy or purchase around 1-3 times per week, 35 (17.5%) purchases 4-6 times
peer week, and 69 respondents (34.5%) buy or purchase from the store about more than 6
times per week
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
20
Table 1. Respondents’ profile
INFORMATION FREQUENCY
PERCENTAGE
f
%
Age
Teenagers
106
53
20s
76
38
30s
10
5
40s
8
4
TOTAL
200 100
Sex
Females
129
64.5
Males
71
35.5
TOTAL
200 100
Civil Status
80.5
Single
161
19.5
Married
39
TOTAL
200 100
Frequency of Buying
More than six times (6x) a week
69
34.5
Four to six times (4-6x) a week
35
17.5
One to three times (1-3x) a week
96
48.0
TOTAL
200 100
Accommodation of the Seller/Store Staff
Tables 2, 3, and 4 show that the sellers of assessed small retail outlets in La
Trinidad were often accommodating and friendly and that they greet their customer upon
entry to the store, projects themselves in a professional appearance appropriate to the
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
21
nature of the retail store, leave their customer the desire to return for further purchases,
assist and help the customer whenever the customer experiences difficulty in buying, and
wraps or bags the purchased product; it appears that the sellers of assessed small retail
outlets in La Trinidad provides a pleasant purchase experience to their customers from
the time the customer enters the store until they check out from the establishment. Their
dealing scheme before during and after the customer purchase and the appropriateness of
presenting themselves to their customers were often satisfactory and appealing to their
customers with an overall mean of 3.88.
The results show that the small stores believe what was noted from Berry (2005)
wherein most consumers often feel uncomfortable buying some of the products or
availing of a service unless they feel the sense of friendliness and comfort from the seller
where Obarski (2002) discussed about “Attitude” that sellers must project. Also as noted
from Miranda and Miranda (1982) that stores seller should play the role of helpers more
than merely selling.
Dealing scheme of the seller to the customer before and during shopping. Table 2
presents the experience of the respondent upon entry to the store and during the shopping
or buying process which considers professional courtesy of the seller to the respondent
upon entry to the store, the assistance of the seller to the respondent during purchase,
query accommodation of the seller, extra helpfulness of the seller, and the overall
knowledge and helpfulness of the seller or store staffs.
As to professional courtesy of the seller or the store staffs, it shows that 61
respondents (30.5%) always experience professional courtesy by the seller, 48 (34%)
respondents said that the seller often show professional courtesy, 39 (19.5%) were
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
22
sometimes addressed professionally, 32 (16%) respondents were rarely being greeted,
and 20 (10%) respondents claimed that they were never been greeted in a friendly
professional manner by the retailer. Over all, the assessed small retail outlets often
display professional courtesy for having a weighted mean of 3.49.
With regards to the assistance given by the seller or store staffs to the customer,
57 (28.5%) respondents claimed that they were always being assisted by the seller, 59
(29.5%) respondents were often been assisted, 72 (36%) respondents were sometimes
being assisted, and 12 (6%) respondents said that they were rarely been assisted by the
seller or the store staff. Overall, the seller or store staffs of assessed small retail outlets
often extend assistance whenever the respondent experience difficulty in finding or
selecting what he/she needs for having a weighted mean of 3.81.
On the query accommodation of the seller or the store staffs, 88 (44%)
respondents stated that the seller always accommodates inquiries, 45 (22.5%) respondents
said that their inquiries were often accommodated, 59(29.5%) respondents claimed that
their inquiries were sometimes being accommodated, 7 (3.5%) respondents said that their
inquiries were rarely being accommodated, and 1 (.5%) respondent declared that his/her
inquiry was never been accommodated. Over all, sellers of assessed small retail outlets
were often accommodating and helpful to respondent’s inquiries for having a weighted
mean of 4.06.
As to the extra helpfulness of the seller or the store staffs, 1 (.5) said that the seller
never seek further help from others whenever the seller doesn’t know the answer to the
respondent’s inquiry, 14 (7%) respondents said that the seller rarely provide extra
helpfulness, 66 (33%) respondents claimed that the seller sometimes exhibit extra
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
23
Table 2. Dealing scheme of the seller to the customer before and during shopping
NEVER RARELY
SOMETIMES
OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN EQUIVALENCE
f
%
F
%
F
%
f
%
f
%
Professional
20 10 32 16 39 19.5 48 24.0 61 30.5 3.49
Often
courtesy of the
seller
Assistance
0 0 12 6.0 72 36.0 59 29.5 57 28.5 3.81
Often
given by the
store staff
Query
1 .5 7 3.5 59 29.5 45 22.5 88 44.0 4.06
Often
accommodation
of the staff
Extra
1 .5 14 7.0 66 33.0 62 31.0 57 28.5 3.80
Often
helpfulness of
the staff
Overall
knowledge and
0 0 10 5.0 60 30.0 66 33.0 64 32.0 3.92
Often
helpfulness of
the staff
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
24
helpfulness, 62 (31%) respondents said that the seller was often extra helpful, and 57
(28.5%) claimed that the seller or the store staffs were always been extra helpful during
the shopping of the respondent. Over all, sellers of assessed small retail outlets often find
ways to be of further help for having a weighted mean of 3.80.
In the overall knowledge and helpfulness of the seller or store staffs, 64 (32%)
respondents claimed that the seller or the store staffs were always knowledgeable and
helpful, 66 (33%) said that the seller was often knowledgeable and helpful, 60 (30%)
respondents said that the seller was sometimes knowledgeable and helpful, and only 10
(5%) respondents asserted that the seller or the store staffs were rarely knowledgeable
and helpful. Overall, sellers or store staffs of assessed small retail outlets were often
knowledgeable and helpful during the shopping of the respondent with a mean of 3.92.
Dealing scheme of the seller to the customer after purchase. Table 3 presents the
experience of the respondent during the checkout process where it considers the honesty
of the seller in giving change, promptness of the seller, wrapping or bagging of purchased
products by the seller, gratitude of the seller to the customer after purchase , and the
overall convenience of the respondent during checkout.
As to the honesty of the seller in giving change, majority of respondents (123 or
61.5) always receives their exact amount of change, 61 (30.5%) respondents said that the
seller often gives the correct amount of change, 12 (6%) stated that the seller sometimes
gives the correct amount of change, and only 4 (2%) respondents claimed that the seller
rarely gives the correct amount of change. Overall, sellers of assessed stores were honest
for always giving the correct amount of change to the respondents with a mean of 4.52.
25
With regards to the promptness of the seller during the checkout of respondent, 4
(2%) respondents claimed that the seller has never been quick in assisting the respondent
during checkout, 17 (8.5%) respondents said that the seller was fast, 38 (19%)
respondents stated that the seller was sometimes prompt, 92 (46%) respondents said that
their checkout was fast and trouble-free, and 49 (24.5%) respondents asserted that the
seller was fast in catering to them during checkout. Overall, respondents claimed that
their checkout was always fast and trouble-free for having a weighted mean of 3.83.
On the wrapping or bagging of purchased products by the seller, 94 (47%)
respondents said that the seller wraps or bags their purchased products, 56 (28%)
respondents pointed out that the seller often wraps or bags their purchased products, 29
(14.5%) respondents claimed that the seller sometimes wraps or bags their purchased
products, 14 (7%) respondents stated that the seller rarely wraps or bags their purchased
products, and only 7 (3.5%) respondents pointed out that the seller never wraps or bags
their purchased products. Overall, sellers of assessed stores often wrap or bag purchased
products of respondents for having a weighted mean of 4.08.
For the gratefulness of the seller to the respondent during checkout, 41 (20.5%)
respondents were always thanked by the seller after purchase, 60 (30%) respondents were
often thanked after purchase, 44 (22%) respondents were sometimes thanked, 46 (23%)
respondents were rarely thanked, and 9 (3%) respondents pointed out that they were
never thanked by the seller after their purchase. Overall, sellers of assessed small retail
outlets sometimes thanks their customers after purchase for having a weighted mean of
3.39.
26
Table 3. Dealing scheme of the seller to the customer after purchase
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Honesty of the seller in
0 0 4 2 12 6 61 30.5 123 61.5 4.52
Always
giving change
Promptness of seller
4 2 17
8.5 38 19 92 46 49 54.5 3.83
Often
during checkout
Wrapping or bagging
7 3.5 14 7 29 14.5 56 28 94 47 4.08
Often
of purchased products
by the seller
Gratefulness of the
9 4.5 46 23 44 22 60 30 41 20.5 3.39
Sometimes
seller to the respondent
during checkout
Overall, convenience of
6 3 8 4 61 30.5 66 33 59 29.5 3.82
Often
respondent after
purchase
27
As to the overall convenience of the respondent after purchase, 59 (29.5%)
respondents always experience good checkout process, 66 (33%) respondents often
experience good checkout, 61 (30.5%) respondents sometimes experience good checkout,
8 (4%) respondents rarely experience positive checkout, and 6 (3%) respondents claimed
that their checkout experience was never good. Over all, respondents often met favorable
experience during their checkout giving them the desire to patronize the store given a
mean of 3.82.
Seller/store staff appearance. Table 4 presents the seller or the store staffs’
appearance during the transaction process that presents the cleanliness of the seller’s
appearance, the disposition/mood of the seller, and the overall suitability of seller’s
appearance in the store.
On the clean and neat appearance of seller, 83 (41.5%) respondents stated that the
seller always have a clean and neat appearance, 81 (40.5%) respondents said that the
seller often appears to be clean and neat, 25 (12.5%) stated that the seller sometimes have
a clean and neat appearance when attending to them, 10 (5%) said that the seller rarely
appear clean and neat, and only 1 (.5%) declared that the seller never have a clean and
neat appearance. Overall, the sellers of small retail outlets assessed often have a clean
appearance when attending to their customers for having a weighted mean of 4.18.
As to the good disposition of the sellers or store staffs, 39 (19.5%) respondents
answered that the seller always have a good disposition, 74 (37%) responded that the
seller often display good disposition, 56 (28%) respondents state that the sellers are
sometimes in a good disposition, 28 (14%) said that the sellers rarely exhibit a good
disposition, and only 3 (1.5%) responded that the sellers never appear to be in a good
28
Table 4. Seller/store staffs’ appearance
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Clean and neat
1 .5 10 5 25 12.5 81 40.5 83 41.5 4.18
Often
appearance of seller
Good disposition of
3 1.5 28 14 56 28 74 37 39 19.5 3.59
Often
seller
Overall appropriateness
1 .5
10 5 57 28.5
60 30 72 36 3.96
Often
of seller’s appearance
in the store
29
disposition when attending to them. Overall, the sellers of small retail outlets assessed
were often in a good disposition when attending to their customers for having a weighted
mean of 3.59.
For the overall appropriateness of the seller’s appearance, 72 (36%) of the total
respondents answered that the seller always have an overall appropriate appearance, 60
(30%) said that the seller often show an overall appropriate appearance when attending to
them, 57 (28.5%) responded that the seller sometimes display an overall appropriate
appearance, 10 (5%) answered that the seller rarely appear to be in an overall appropriate
appearance, and only 1 (.5%) responded with seller that never attend to customers in an
overall appropriate appearance. Overall, the sellers of the small retail outlets assessed
often attend to their customers in an appropriate appearance suitable in the nature of the
store for having a weighted mean of 3.96.
The Store and Environment
Data in tables 5, 6, 7, and 8 presents the store and its environment in relation to its
merchandise display and availability of products, pricing of products, store layout, and
sanitations of the assessed small retail outlets in La Trinidad. It shows that the assessed
small retail outlets offer variety of merchandise display that were of perceived quality
where its pricing were just fair and reasonable. Its layout also aids much in the
convenience of the customer. And that, most of these stores have clean environment as
well as in their offered products with an overall mean of 3.83.
These results show that stores practices what was noted from Duncan, Hollander,
and Savitt (1983) and from Seavey and Wells (2005) that sellers obtain goods for resale
30
and it is important that the obtained merchandise should be of perceived quality and
should also appeal to customers.
Pricing of small retailers were just fair and reasonable. Miranda and Miranda
(1982) noted that since most small retail outlets don’t employ laborers, which are
additional cost to their business, they could offer goods at lower prices.
Merchandise display and availability of products. Table 5 presents the
merchandise display and availability of goods from the small retailers. Respondents rated
the small retail outlets’ merchandise display and availability according to the availability
of wanted products by the respondent, quality of products, standard measurement of
products, variety of products, and overall availability of wanted products and variety of
products display.
On the availability of wanted products in the small retail outlets assessed, 61
(30.5%) of the total respondents said that the products they want were always available,
78 (39%) responded that the products they want are often available, 55 (27.5%) answered
that the products they want were sometimes available, and 6 (3%) stated that the store
rarely offers the products they want. Overall, the small retail outlets assessed often offers
products wanted by their customers for having a weighted mean of 3.97.
For the quality of products offered by the small retail outlets assessed, 81 (40.5%)
respondents said that the products were always of good quality, 78 (39%) responded that
the products offered were often of good quality, 35 (17.5%) answered that the stores
sometimes offers products that are of good quality, 2 (1%) stated that the small retail
stores rarely offers products of good quality, and 4 (2%) respondents claimed that the
31
small retail stores never offered products of good quality. Overall, products offered by
the small retail outlets assessed were often of good quality with a weighted mean of 4.15.
As to the accuracy of measurements and standard partition of the products offered
in the small retail outlets assessed, 72 (36%) of the total respondents said that the stores
always offer products that are in accurate measurements and standard partition, 75
(37.5%) answered with stores often selling products that were in accurate measure and
standard partition, 47 (23.5%) responded that the products were sometimes accurate in
their measurement and standard partition, 5 (2.5%) said the store rarely offers products in
accurate measure and standard partition, and only 1 (.5%) answered with the store never
selling products in accurate measurements and standard partitions. Overall, the products
offered in the small retail outlets assessed were often accurate in their measurements and
in standard partitions for having a weighted mean of 4.06.
With regards to the variety of merchandise display being offered by the small
retail outlets assessed, 72 (36.5%) of the total respondents said that the store always offer
a varied merchandise display, 75 (37.5%) of them responded that the store often sell a
good variety of merchandise, 47 (23.5%) stated that a variety of merchandise were
sometimes offered, 5 (2.5%) responded that the store rarely offer a varied display of
merchandise, and only 1 (.5%) respondent answered that the stores never display a
variety of merchandise. Overall, the merchandise displays of the small retail outlets
assessed were often varied with a weighted mean average of 4.05.
As to overall availability of wanted products and variety of products on display by
the small retail outlets assessed, 66 (33%) of the total respondents said that the store
always offer high overall availability and variety of products, 77 (38.5%) responded that
32
Table 5. Merchandise display and availability of products
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Availability of wanted
0 0 6 3 55 27.5 78 39 61 30.5 3.97
Often
products
4 2 2 0 35 17.5 78 39 81 40.5 4.15
Often
Quality of products
Accuracy of
measurements and
1 .5 5 2.5 47 23.5 75 37.5 72 36 4.06
Often
standard partition of
products
Variety of merchandise
0 0 15
7.5 40 20 66 33 79 39.5 4.05
Often
display
Overall availability of
wanted products and
0 0 3 1.5 54 27 77 38.5 66 33 4.03
Often
variety of products
display
33
the overall availability and variety of products were often high, 54 (27%) answered that
the stores sometimes offer high overall availability and variety of products, and only 3
(1.5%) stated that the store rarely offer high overall availability and variety of products.
Overall, the availability and variety of products offered by the small retail stores assessed
are often high with a weighted mean of 4.03
Pricing of products. Table 6 presents the pricing of the assessed small retail
outlets to their offered products where it talks about the easiness of price determination,
fair and reasonable pricing, discounts for products, and the overall reasonable and
standardized pricing of products.
On the ease of determining the price, 35 (17.5%) of the total respondents said that
its always easy for them to determine the price of the products being sold by the small
retail outlets, 78 (39%) responded that its often easy, 59 (29.5%) said its sometimes easy
to locate the price tag, 26 (13%) claimed that the price of the products being sold were
rarely easy to locate, and 2 (1%) declared that price tags for the products are never easy
to locate. In general, for the small retail outlets assessed, determining the price of
products is often easy.
As to fair and reasonable pricing, 64 (32%) of the total number of respondents
claimed that the store always offer products with fair and reasonable prices, 68 (34%)
said the prices are often fair and reasonable, 43 (21.5%) sometimes sell products with fair
and reasonable prices, 23 (11.5%) stated that the store rarely offer fair and reasonable
prices, and there are 2 (1%) respondents who declared that the store never sell products
with fair and reasonable prices. In general, the small retail outlets assessed often offer
products with fair and reasonable prices, emphasized by the weighted mean value of 3.85.
34
Table 6. Pricing of products
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
F
%
f
%
f
%
f
%
f
%
Ease of determining the
2 1 26 13 59 29.5 78 39 35 17.5 3.59
Often
price
Fair and reasonable
2 1 23
11.5 43 21.5 68 34 64 32 3.85
Often
pricing
39 19.5 55 27.5 49
24.5 41 20.5 16
8
2.70
Sometimes
Discounts for products
Overall reasonable and
9 4.5 21 10.5 51 25.5 58 29 61 30.5 3.71
Often
standardized pricing of
products
35
For discounts on products, 16 (8%) of the total number of respondents claimed
that the stores always offer discounts, 41 (20.5%) said discounts are often given, 49
(24.5%) stated that it’s only sometimes, 55 (27.5%) said the stores rarely give discounts,
and there are 39 (19.5%) respondents who claimed that the stores never give them
discounts on particular or even selected products. In general, for the small retail outlets
assessed, they sometimes give discounts on particular or selected products, as further
shown by the weighted mean value of 2.70.
As to overall reasonable and standardized pricing, 61 (30.5%) of the total number
of respondents said that the store always offer reasonable and standard prices, 58 (29%)
responded that its often, 51 (25.5%) claimed it was only sometimes, 21 (10.5%) said that
the store rarely gives out reasonable and standard prices of products, and there are 9
(4.5%) who declared that the store never gives reasonable and standard prices for the
products they sell. In general, the small retail outlets assessed often sell products with
reasonable and standard prices, stressed by the weighted mean value of 3.71.
Store layout. Table 7 presents the store layout of small retail outlets where it
shows that the store layout of assessed small retail outlets were suitable and convenient,
the products wanted by the customers were often easy to find and locate. Also, the
display of products by groups or category depending on their kind will make the
customers feel that the store has a very good store layout.
With regards to ease of locating products, 58 (29%) of the total number of
respondents said that they always find it easy to locate the products they want to buy, 66
(33%) stated it was often easy to locate products, 65 (32.5%) claimed they sometimes
36
Table 7. Store Layout
NEVER RARELY SOMETIMES OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
F
%
f
%
f
%
f
%
f
%
0 0 11 5.5 65 32.5 66 33 58 29 3.86
Often
Ease of locating products
Categorical grouping of
0 0 11 5.5 40 20 92 46 57 28.5 3.98
Often
products
Overall convenience due
0 0 7 3.5 57 28.5 88 44 48 24 3.89
Often
to layout
37
find the products they need easily, and there were 11 (5.5%) who said that they rarely
experience ease in locating the products they need from the store. In general, the
customers often experience ease when locating products in the small retail stores assessed
with a mean of 3.86.
As to display of products in categorical grouping, 57 (28.5%) of the total number
of respondents said that the stores always display products according to their kind, 92
(46%) responded that the stores often display products of the same kind next to each
other, 40 (20%) claimed that it was only sometimes, and 11 (5.5%) stated that the store
rarely display products in categorical grouping. In general, the respondents think that the
stores often display their merchandise according to its category with a mean of 3.98.
As to overall convenience with regards to store layout, 48 (24%) of the total number of
respondents claimed that the store always have a good layout that facilitated their
convenience when shopping, another 88 (44%) said the store layout often makes them at
ease, 57 (28.5%) stated it was only sometimes that the store’s layout provide
convenience, and there were 7 (3.5%) who claimed that the store’s layout was rarely
convenient. In general, the store’s layout of the small retail outlets assessed often provide
convenience to their shoppers, as further indicated by the weighted mean value of 3.89.
Sanitation of the retail outlet. Table 8 presents the sanitation ratings of the stores
assessed. It shows that customers would often want to buy from small retail outlets which
were clean in their surroundings and also as to the offered products which are free from
contamination.
With regards to cleanliness of surroundings, 60 (30%) of the total number of
respondents said that the store and its surroundings were always clean, 68 (34%) stated
38
the store and its surroundings were often clean, 56 (28%) responded that it was only
sometimes, 11 (5.5%) claimed the store and its surroundings were rarely clean, and 5
(2.5%) respondents declared that the store and its surroundings were never clean. In
general, the small retail outlets assessed and their surroundings were often clean, which is
indicated by the weighted mean value of 3.84.
On the products cleanliness, there were 72 (36%) respondents who said that the
store always offer clean product, 60 (30%) stated that the store often sell products which
were clean, 52 (26%) responded that it was only sometimes, 14 (7%) claimed that the
store rarely sell clean products, and there were 2 (1%) respondents who declared that the
store never offer products which are clean. In general, the small retail outlets assessed
often offer products that were clean, which is further signified by the weighted mean
value of 3.93.
As to the overall cleanliness of products and surroundings, 72 (36%) of the total
number of respondents said that the store always offer clean products and have clean
surroundings, 61 (30.5%) stated that the store often sell products that are clean and have
clean surroundings, 47 (23.5%) responded it’s only sometimes, 14 (7%) declared the
store were rarely clean and rarely offer clean products, and 6 (3%) claimed that the store
and its surroundings were never clean and that they never sell clean products. In general,
the small retail outlets assessed ad their surroundings were often clean and the
merchandise that they sell were often clean and in good quality, which is signified by the
weighted mean value of 3.90.
39
Table 8. Sanitation of the retail outlet
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Cleanliness of
5 2.5 11 5.5 56 28 68 34 60 30 3.84
Often
surroundings
2 1 14 7 52 26 60 30 72 36 3.93
Often
Cleanliness of products
Overall cleanliness of
6 3 14 7 47 23.5 61 30.5 72 36 3.90
Often
products and
surroundings
40
Store Services
As discussed by Miranda and Miranda (1982), Pride and Ferrell (1989), and
Duncan, Hollander, and Savitt (1982), small retail outlets are proving services to attract
and hold customers such as providing credit to customers, extended business hours where
it opens early in the morning and late in the evening, accommodates return and exchange
of defective or inferior products, and accommodating customer complains which aids in
customers patronage. Tables 9, 10, and 11 then present the services of assessed small
retail outlets where it shows that most of the stores often provide such services.
Business hours of the store. Table 9 presents the business hours of the stores
assessed where it talks about the punctuality of opening and closing time of the store and
extension of business hours in special occasions or whenever the respondent asks for
business hour extension.
As to punctuality with regards to opening time, 82 (41%) of the total number of
respondents said that the store always open on the time they were expected to, 82 (41%)
also said the store often do, 23 (11.5%) responded that it was only sometimes, 11 (5.5%)
declared the store rarely opens on time, and there were 2 (1%) who claimed that the store
never opens on the expected business opening time. In general, the small retail outlets
assessed often open on the expected time of business opening as indicated by the
weighted mean value of 4.16.
As to punctuality with regards to closing time, 79 (39.5%) of the total number of
respondents said that the store always close on the time they were expected to, 65
(32.5%) stated the store often closes on time, 42 (21%) responded that it was only
sometimes, and 14 (7%) claimed that the store rarely close on their expected business
41
Table 9. Business hours of the store
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
2 1 11
5.5 23 11.5
82 41 82 41 4.16
Often
Punctuality of opening
0 0 14 7 42 21 65 32.5 79 39.5 4.05
Often
Punctuality of closing
Extension of business
2 1 18 9 51 25.5 83 41.5 46 23 3.77
Often
hours
42
closing time. In general, the small retail outlets assessed often close on the expected time
of business closing as indicated by the weighted mean value of 4.05.
As to extension of business hours, 46 (23%) of the total number of respondents
said that the store always extends their business hours on special occasions, 83 (41.5%)
stated that the store often do, 51 (25.5) responded that it was only sometimes, 18 (9%)
declared the store rarely extend, and there were 2 (1%) who claimed that the store never
extend their business hours on special occasions. In general, the small retail outlets
assessed often extend their business hours during special occasions, as signified by the
weighted mean value of 3.77.
Credit service of the store. Table 10 presents the credit service of the stores which
covers the availability of credit service and interest on credit.
On the availabity of credit service, 74 (37%) respondents said that the seller
always allows credit in cases that the respondent was short for his/her payment, 48 (24%)
respondents claimed that the seller often allows credit, 39 (19.5%) said it was only
sometimes, 17 (8.5%) respondents stated that rarely do seller allow credit, and 22 (11%)
respondents declared that the seller never allows credit service. Overall, stores assessed
often allow credit to respondents who are short of cash for their payment with a weighted
mean of 3.68.
With regards to the interest on credit, a majority 129 (64.5%) respondents
declared that the seller never gives interest on their credit, 15 (7.5%) respondents said
that rarely does the seller add interest on their credit, 20 (10%) said it was only
sometimes, 14 (7) respondents claimed that often does the seller adds interest on their
credit, and 22 (11%) respondents claimed that the seller always adds interests on their
43
credit. In general, sellers of assessed stores rarely add interest on their customer’s credit
for having a weighted mean of 1.93.
Complaint handling of seller or the store staff. Table 11 presents the complain
handling of the stores where it talks about the accommodation of complain raised by the
respondent, the immediate action to complain, and the accommodation of defective and
inferior products.
As to accommodation of complain, 46 (23%) respondents said that the seller
always accommodate their complain, 60 (30%) respondents declared that the seller often
accommodates complain, 55 (27.5%) said that sometimes seller does, 22 (11%) stated
that the seller rarely accommodates complain, and 17 (8.5%) claimed that the seller never
accommodates their complain. Overall, sellers of assessed stores often accommodates
customer complain.
With regards to the immediate action to complain raised by the respondent, 59
(29.5) respondents answered that the seller always attends at once to the complain raised,
49 (24.5%) stated that the seller often does immediate action their complain, 60 (30%)
said that it was sometimes, 21(10.5%) stated that it was rarely that the seller attend to
their complain, and 11 (5.5%) claimed that the seller never attends to their complain.
Overall, sellers of assed stores often do attend at once to the customer who complains.
On the accommodation of defective and inferior products, most respondents with
a total number of 80 (40%) declared that the seller always accommodates the return of
defective and inferior products previously purchased by the respondent, 43 (21.5%)
respondent said that the seller often accommodates return of defective and inferior
products, 49 (24.5%) claimed that it was sometimes, 14 (7%) stated that it was rarely that
44
Table 10. Credit service of the store
NEVER RARELY SOMETIMES OFTEN ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Availability of credit
22 11 17 8.5 39 19.5 48 24 74 37 3.68
Often
service
129 64.5
15 7.5 20
10 14 7 22 11
1.93
Rarely
Interest on credit
Table 11. Complain handling of the seller or the store staffs
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Accommodation of
17 8.5 22 11 55 27.5 60 30 46 23
3.48
Often
complain
Immediate action to
11 5.5 21 10.5
60
30 49 24.5 59 29.5 3.62
Often
complain
Accommodating return
14 7 14 7 49 24.5 43 21.5 80 40 3.81
Often
of defective and
inferior products
45
the seller accommodates defective and inferior products, and another 14 (7%)
respondents claimed that the seller never accommodates return of inferior or defective
products. Overall, sellers of assessed small retail outlets often accommodate return of
defective and inferior products previously purchased by the customer.
Customer satisfaction and referral
As emphasized by Berkowitz, Kern, and Rudelius (1989), and Buxton (2000),
customer service results to customer satisfaction and that satisfied customers refer the
business to a friend or someone related to him/her which would be of big help to the
business since additional customers would walk-in.
Table 12 presents the customer satisfaction and the referral from customers of
assessed small retail outlets which includes the enjoyable purchase experience, sales
return or purchase repetition, and the referral of the respondent.
As to the pleasant purchased experience, 56 (28%) respondents rated that their
purchased experience was always enjoyable, 62 (31%) respondents claimed that their
purchased experience was often been enjoyable, 64 (32) of them said that it was only
sometimes, 17 (8.5) stated that rarely do they enjoy their purchase, and only 1 (.5%)
asserted that his/her purchase experience was never been enjoyable. Overall, often do
respondents enjoy their purchase in assessed stores for having a weighted mean of 3.62.
For the purchase repetition or sales return, 67 (33.5%) respondents responded that
they would always return for further purchases, 59 (29.5%) respondents would often
return for further purchase, 51 (25.5%) said that they sometimes would return, 19 (9.5%)
claimed that they would rarely return for further purchases, and 4 (2%) respondents
46
Table 12. Customer satisfaction and referral
NEVER RARELY SOMETIMES OFTEN
ALWAYS
DESCRIPTIVE
ITEM
MEAN
EQUIVALENCE
f
%
f
%
f
%
f
%
f
%
Pleasant purchase
1 .5 17 8.5 64 32 62 31 56 28 3.78
Often
experience
Purchase repetition /
4 2 19
9.5 51 25.5 59 29.5 67 33.5 3.83
Often
Sales return
8 4 31
15.5
55 27.5 37 18.5 69 34.5 3.64
Often
Referral to a friend
47
would never return to the store to purchase again. Overall, respondents of the assessed
store would often return for further purchases.
With regards to the referral of the respondent, 69 (34.5%) respondent would
always refer the store to a friend, 37 (18.5%) respondents would often refer the store to a
friend, 55 (27.5%) respondents would sometimes refer the store to a friend, 31 (15.5)
respondents would rarely refer the store, and 8 (4%) respondents would never refer the
store to a friend. Overall, respondents would often refer the assessed stores to their
friends for having a weighted mean of 3.64.
Common complaints towards the store
Common customer complains were brought out during the transaction process as
noted from Santos (2007), Adams (2003), Berry (2005), Gabogrecan (2007), and Seavey
and Wells (2005) where Table 13 presents the common complaints of the respondents
towards small retail outlets.
As to the seller, 61 respondents (30.50%) experienced unfriendly and rude seller
or store staffs, 39 respondents (19.50%) experienced inattentive seller or store staffs, and
17 respondents (8.50%) experienced inefficient or unknowledgeable seller.
With regards to the products being offered by the store, 135 respondents (67.50%)
experienced unavailability of products wanted, 31 respondents (15.50%) experienced
purchasing defective and low quality products, 7 respondents (3.50%) experienced
buying altered products, and 12 respondents (6%) experienced purchasing products
which weights were reduced.
48
During the checkout of the respondent, 57 respondents (28.50%) encounter
paying high priced products, 46 respondents (23%) encounter seller/cashier without
enough amounts for change, and 31 respondents (15.50%) encounter long queue.
Other complains indicated was that the store is a “tsismis” avenue where the
customer is directly affected and in relation to the top most frequent common customer
complain that the customer encounter, it was also emphasized by Miranda (1979), that
the seller should obtain goods that will appeal to customers focusing on what the
customers really need and wanted and that seller should also know what to stock and not
to be burdened with large reserve stock.
Table 13. Common complaints towards the store
COMMON COMPLAINTS TOWARDS THE STORE
FREQUENCY PERCENTAGE
(f)
(%)
Defective and low quality products
31 15.50
Rude and unfriendly seller/store staff
61 30.50
Inattentive seller/store staff
39 19.50
Inefficient or unknowledgeable seller/store staff
17 8.50
Unavailable products
135 67.50
Seller/cashier doesn’t have enough amounts of
46 23.00
money for change
High prices of products offered
57 28.50
Dirty products
23 11.50
Altered and products
7 3.50
Reduced weights of products
12 6.00
Long queue when checking out
31 15.50
49
Factors that customers consider in choosing a store to buy/purchase
Common factors that customer consider in selecting a store to buy/purchase
includes store layout, sanitation and cleanliness, credit service, merchandise display,
pricing , and sellers accommodation where in Table 14 it shows that most customers
with a frequency of 174 (87%) consider pricing as the primary factor, followed by
sanitation and cleanliness with a frequency of 157 (7.5%), sellers accommodation with a
frequency of 107 (53.5%), store layout with a frequency of 97 (48.5%), merchandise
display with a frequency of 93 (46.5%) and credit service as the least factor with a
frequency of 63 (31.5%).
Other
factor
indicated was location.
Table 14. Factors that customers consider in choosing a store to buy or purchase
FACTORS FREQUENCY
PERCENTAGE
(f)
(%)
Store Layout
97
48.50
Sanitation and Cleanliness
157
78.50
Credit Service
63
31.50
Merchandise Display
93
46.50
Pricing
174
87.00
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary
The study was conducted to determine the customer orientation of small retail
outlets in La Trinidad and to be able to identify the customer service of the small retail
outlets in terms of the accommodation of the seller towards the customer, the store’s
merchandise display and availability, pricing, layout, sanitation, business hours, credit
service, and complain handling. It also intended to determine the customer satisfaction
towards a particular retail outlet, the common customer complaints towards small retail
outlets, and the factors that the customers consider in patronizing or choosing a small
retail outlet to buy or to purchase. In addition, the study was expected to provide
information on how small retailers nowadays deal, settle, approach, handle, and value
their customers; and on how customers rate the satisfaction they get from patronizing
retail outlets as well as their complaints on service rendered, which would give valuable
insights to retailer into what areas of customer care need improvement thereby aiding
them in enhancing services and staying competitive.
The study was conducted in the municipality of La Trinidad, Benguet from
December 2007 to February 2008. It covered the selected small retail outlets from Km. 4
to Km. 6 particularly from the barangays of Balili, Lubas, Betag, Pico, and Tabangawen
where a total of 200 respondents were asked to answer a survey questionnaire.
The data gathered covers the customer accommodation by the seller or the store
staff, the store and its environment, the store services, the customer satisfaction and
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
51
referral, the common complaints towards the store, and the factors that customers
consider in choosing a small retail outlet to shop or buy from.
On the accommodation of the seller towards the customer, it appears that most
sellers of assessed small retail outlets were accommodating and friendly that they greet
the customer upon entry to the store and by projecting professional appearance
appropriate to the nature of the retail store. Sellers of assessed stores also leave the
customers the desire to return to the store for further purchases by assisting and helping
the customer whenever the customer experiences difficulty in buying; and, by wrapping
and placing the purchased goods in a bag.
For the merchandise display, availability, pricing, store layout, and sanitation,
respondents say that most assessed small retail outlets in La Trinidad offer variety of
merchandise display that were of perceived quality where its pricing were just fair and
reasonable. Furthermore, most stores are perceived to have clean environment as well as
in their offered products being free from contaminations.
With regards business hours, credit service and complaint handling, collected
data shows that most assessed small retail outlets does provides such services. Most
stores often open and closes at the time the customer expect and extent business hours
when asked by customers, often allow credit in cases the customer is short for his/her
payment, and often accommodates customer complains. This reflects flexibility in
operation of the store.
Data gathered on customer satisfaction towards a particular retail outlet, most
respondents recognized that their purchase transaction was pleasant giving them the
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
52
desire to shop again and that they would refer the store to a friend or someone related to
them.
On the common customer complaints towards small retail outlets, most
respondent experiences unfriendly and rude seller or store staffs, inattentive seller/store
staff, and inefficient or unknowledgeable seller. Also, most respondents experiences
unavailability of wanted products and purchasing defective and low quality products,
dirty or contaminated products, altered products, and products which weights were
reduced. Furthermore, most respondents encounter during their checkout were paying
high prices, seller/cashier without enough amounts of change, and long queue. In
addition, other complains such as “tsismis” avenue was indicated.
As to what customers consider in patronizing or choosing a small retail outlet to
buy or to purchase, most respondents considers pricing as the primary factor followed by
sanitation and cleanliness, sellers accommodation, store layout, merchandise display , and
that credit service as the least considered factor.
Conclusions
Based on the findings, conclusions were derived;
1. Sellers or store staffs of assessed small retail outlets are customer oriented.
2. Small retail outlets are flexible in their operation with regards to business hours.
3. Assessed small retail outlets provide services which are recognized by their
customers.
4. Customers of assessed small retail outlets were satisfied with the services of the
store and that they are pleased with the store such that they patronize it.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
53
5. Most customers of assessed small retail outlets encounter unavailability of wanted
products.
6. Most customers of assessed small retail outlets recognize the accommodation of
the seller as one factor in selecting a store to purchase to buy.
Recommendations
1. Although the results show that most customers are pleased with the store services
reflecting their high customer orientation, there is still room for improvement
since the overall mean corresponds to OFTEN and that they should gear towards
perfection of more effective customer service.
2. It is also recommended that sellers of small retail outlets provide goods that will
appeal to customers focusing on what the customers really need and want.
3. It is also recommended that the DTI provide seminars to the sellers of small retail
outlet on improving customer service and include it during the availing of
business permit.
4. A follow-up study should be done considering the representation of higher age
bracket or the adults and the representation of the total number of small retail
outlets, and also to seek the consent of the customers who quit doing business to
the small retail outlets to further determine what factors caused them to stop doing
purchase.
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
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USA: Richard D. Irwin, 1989. p. 385-386. BSU Lib GC 658.8
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BUSINESS DICTIONARY, 2007. Dictionary of Business Terms. Retrieved December 7,
2007 from http://www.answers.com/topic/retail-outlet?cat=biz-fin
BUXTON E., 2000. Mystery Shopping Studies and Customer Satisfaction Studies: A
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http://www.conferoinc.com/ConferoInc/quirksarticle2000.htm
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http://encarta.msn.com/quote_561537352/Business_There_is_only_one_valid_def
inition of business_.html
DTI, 2004. SME Development Plan/ SME Agenda. Retrieved December 9, 2007 from
www.dti.gov.ph
DTI, ND. Consumer Welfare - Consumer Advisories - NO RETURN, NO EXCHANGE.
Accessed March 10, 2008 at http://www.dti.gov.ph/
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GABOGRECAN B., 2007. Customer is King. Retrieved December 9, 2007 from
http://www.aarticleboard.com/articles/3085/1/The-Customer-Is-King/Page1.html
JIM, 2007. What is customer orientation? Accessed November 29, 2007 at
http://www.smallbusinessboomers.com/what-is-customer-orientation/
JULIAN J., (2006). Consumers’ Choice of Market Outlets for Grocery Items in La
Trinidad, Benguet. Undergraduate Thesis. Benguet State University. La Trinidad,
Benguet. Pp. 29-32.
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JUSSAUME R. A. JR., 2000. Building Trust with Customers. Retrieved December 9,
2007 from http://agmarketing.extension.psu.edu/Retail/PDFs/BuildingTrustW
Consmr.pdf
KOTLER, P. and KELLER K. L., 2006. Marketing Management 12th Edition,
USA:Pearson Prentice Hall, 2006. p. 5,148-149. BSU Library GS 658.8 K87
KOWAL, J., 2007. Differentiation Based on Quality Service. Retrieved November 30,
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KURTZ, D. C., DODGE, R. H., and KLOMPMAKER, J.E., 1988. Professional Selling
5th Edition, Business Publication Inc. 1988. p. 238-239. BSU Lib GC 658.85 K96
LAKE L., 2007. Explore the Value of Customer Retention. Retrieved December 1, 2007
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Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
APPENDIX
SURVEY QUESTIONNAIRE
Date: ________________________Time: _______
Name: (optional) _________________________________________________________
Age: ________
Civil Status: ______
Sex: (_) female (_) male
Name of the Retail Outlet:_________________________________________________
How often do you buy/purchase at this store in a week?
(_) 1-3 Times
(_) 4-6 Times
(_) More than 6 Times
Please rate the store accordingly. Check the columns that correspond to your answer:
5 – Always
4 – Often
3 – Sometimes
2 – Rarely
1 – Never
I. Accommodation of the Seller/Store Staff
A. Entrance to the Store and During Shopping
5 4 3 2 1
1. Were you greeted in a friendly, professional manner by the
seller/store staff as soon as you enter the store?
2. If you experienced any difficulty finding or selecting what you
needed, was the seller/store staff easy to find and helpful to you?
3. If you asked any questions, was the seller/store staff
accommodating in answering and helping you?
4. If the seller/store staff doesn’t know the answer to your
questions, does he/she urgently find ways to be of further help?
5. Over all, are the sellers/store staff knowledgeable and helpful?
B.
Checkout
5 4 3 2 1
1. Did the seller/cashier give you the correct amount of change for
your purchase, if there is?
2. Was the process of paying your purchase fast and trouble-free?
(Example: You don’t have to wait for the cashier to find the
necessary change if you have a big bill.)
3. Did the seller/store staff wrapped or put your purchase in a bag?
4. Did the seller/store staff thank you after payment of purchase?
5. Overall, was the payment or checkout experience positive,
leaving you with the desire to return to the store for further
purchases?
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
58
C. Seller/Store Staff Appearance
5
4
3
2
1
1. Does the seller/store staff exhibit cleanliness in appearance?
(The seller/store staff has washed his/her face or took a bath.)
2. Does the seller/store staff exhibit a cheerful mood?
3. Overall, does the sellers/store staff have a professional
appearance appropriate to the nature of the retail store?
II. Store and Environment
A. Merchandise Display and Availability
5
4
3
2
1
1 Is the store providing the type of product you want?
2. Are the products being offered of perceived quality and exact in
figures or quantity? (Example: Products are not expired. Products
are exact in quantity.)
3. Are the products available in standard and accustomed divisions?
(Example: Sugar–1 Kg., ½ Kg.; Lard–1 Kg., ½ Kg., ¼ Kg.)
4. Is there a variety of merchandise in display offering choices at
the store? (Example: Milk–Powder, Evaporated, Condensed, etc.;
Milk Brands–Bear Brand, Alaska, etc.)
5. Overall, is the store providing the expected type and variety of
products?
B.
Pricing
5 4 3 2 1
1. Are the prices of products easy to determine?
2. Are the prices of products of good value for purchase?
3. Does the store provide discounts for particular products?
4. Overall, are the prices fair and reasonable?
C. Store Layout
5
4
3
2
1
1. Are the products you wanted easy to find and locate?
2. Are products of the same kind or category in display next to each
other or grouped together?
3. Overall, does the store layout facilitate in your convenience of
purchase?
D.
Sanitation
5 4 3 2 1
1. Is the store and its surroundings clean at all times?
2. Are the products free from contaminations from insects or other
animals? (Example: rat manure and urine, cockroach manure, etc.)
3. Overall, are the store, its surroundings, and products clean?
III. Store Services
A. Business Hours
5
4
3
2
1
1. Does the store open at the time you expect?
2. Does the store close at the time you expect?
3. Does the store extend their business hours during special
occasions or when they are asked to?
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
59
B. Credit Service
5
4
3
2
1
1. Does the seller allow credit if in case you were short for your
payment?
2. Does the seller add interest to your credit upon payment?
C. Complain Handling
5
4
3
2
1
1. Does the seller/store staff accommodates complain?
2. Does the seller/store staff attend to you at once when you have
complains?
3. Does the store accommodate return and exchange of previously
bought products?
Customer Satisfaction and Referral
5
4
3
2
1
1. Was your purchase experience enjoyable?
2. Do you plan to shop again?
3. Would you refer a friend to purchase here?
Which of the following are your common complaints towards the store? (You may check
more than one.)
(_) Defective and low quality products
(_) Rude and unfriendly seller/store staff
(_) Inattentive seller/store staff
(_) Inefficient or unknowledgeable seller/store staff
(_) Unavailable products
(_) Seller/cashier doesn’t have enough amounts of money for change
(_) High prices of products offered
(_) Dirty products
(_) Altered and Products
(_) Reduced Weights of Products
(_) Long queue when checking out
Others Please Specify: ________________________________________________
________________________________________________
Which of the following is important for you when deciding where to purchase? (You may
check more than one.)
(_)
Store
Layout
(_) Sanitation and Cleanliness
(_)
Credit
Service
(_) Merchandise Display
(_) Pricing
(_)
Seller’s
Accommodation
Others Please Specify: ________________________________________________
THANK YOU!!!
Customer Assessment On Customer Service Of Small Retail Outlets
in La Trinidad, Benguet / Benedict M. Kalang-ad. 2008
Document Outline
- Customer Assessment OnCustomer Service Of Small Retail Outlets In La Trinidad, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale
- Objectives of the Study
- Importance of the Study
- Scope and delimitation of the study
- REVIEW OF LITERATURE
- Retailing
- Retail Outlet Defined
- Importance of Customer Service in Retailing
- Elements of Customer Service in RetailingAccommodation of the Seller/Retailer Towards the Customer
- Merchandise Display, Availability, Pricing, Layout and Sanitation
- Business Hours, Credit Service, and Complaint Handling
- METHODOLOGY
- RESULTS AND DISCUSSION
- Respondents� Profile
- Accommodation of the Seller/Store Staff
- The Store and Environment
- Store Services
- Customer satisfaction and referral
- Common complaints towards the store
- Factors that customers consider in choosing a store to buy/purchase
- SUMMARY
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDIX