Full Project – THE IMPACT OF SELF SERVICE ON THE PERFORMANCE OF SUPERMARKETS

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Before the contact with the colonial master, marketing especially in the Nigeria region was based on barter system. But today as society and business have become more dynamic and complex, the need for advanced marketing procedure has developed, supermarket inclusive.

The most popular orientation or philosophy that has pervaded thought and motivated decision and action among marketing people is the marketing concepts, simply put, according to the concept, the satisfaction of the consumer is the overriding goal of business. This put the consumer on a new pedestal that of a king, the center piece of all marketing activities. Most supermarkets use this concept in carrying out a research their supermarkets.

This project will look at how self service/consumer satisfaction affect the purchase of product in Cyril supermarket.

I will also examine whether the constant failure/closure of many supermarket in Nigeria has anything to do with lack of consumer satisfaction.

Another point of review is supermarket man in relation to economic factors such as high inflation, changing customer testes and preferences, buyer behaviour, server competition and hyper economic change in Nigeria.

In conjection with the above, those engaged in supermarket business have a lot of decisions to take in order to make a success in their business. They have to make sure that there is no gap left in the implementation of decision taken. Such decision include the type of product to stock, why they should be stocked and where should the store be located. Such decisions need general analysis of the stocks to be carried. This is why supermarket are not only a challenging business but also risky.

A supermarket that lacks behind the façade of these facts has itself to blame of eventually, a catastrophe emerges.

Thus, following the competitive nature of the supermarkets various marketing strategies are adopted to win the attention of customer self services inclusive.

Hence, the primary aim of this study is to look into the impacts of self service on the performance of supermarket.

1.2 STATEMENT OF PROBLEM

Presently, the number of corporate supermarkets operating in Abakaliki metropolis has increased tremendously, but has it resulted to a more effective and efficient rendering of service to customers?

The underlying problem here is not just rendering of service but rendering them to make customers feel they are recognized.

Traditional, customers are known to shop in the supermarket where they are most convenient. The convenient is derived from wide range of goods displayed in the shop, which make it possible for the customer to have easy access to the goods he wants to buy.

A lot of challenges now face the corporate supermarkets to improve on their sales performance. One of such challenges is how well customers are being treated.

The problems encountered from self service include shrinkage and deterioration of product because of customers handling.

Survival of the fittest is now going on in corporate supermarket especially in Abakaliki urban. Were more supermarkets are spreading up and old ones expanding. For the fittest to survive they must employ those managements skill responsible for identifying, anticipating and satisfying customers which are at the fore-front of the corporate thinking while the techniques permit the concept to be successfully implemented.

Recognizing the above attributes there exist some unsalted issues about self service in supermarkets. These are:

1. That self service is not only a determinant factor in attracting customer to a particular supermarket.

2. That other marketing activities or services like low prices, discounts, delivery, guarantees, credit, display contribute more to sales volume than self service operations.

3. That the general arrangement of supermarket scare some customers who prefer to shops in the local markets. The consistence of customers handling of product deteriorate the quality of such products.

Hence, it is very pertinent to carryout a research to verify how far the variables mentioned above affect self service strategy in supermarkets.

1.3 OBJECTIVES OF THE STUDY

The objectives of this study are as follows:

1. To find out whether customers actually prefer self service strategy to the traditional haggling system.

2. To determine whether self service strategy leads to increase in sales volume.

3. To determine whether supermarket perform better than shops that do not adopt self service strategy.

4. To determine whether supermarket in Abakaliki offer the same dynamic service as the foreign ones.

1.4 HYPOTHESIS

The following hypothesis will be tested.

Ho: Consumers have no positive perception of self service offered by Cyril supermarket.

Hi: Consumers have positive perception of self service offered by Cyril supermarket.

Ho: Self service strategy adopted by Cyril supermarket does not impact positively on the sales volume of the shop.

Hi: Self service strategy adopted by Cyril supermarket impact positively on the sales volume of the shop.

1.6 SIGNIFICANCE OF THE STUDY

It is a truism that in any field of human endeavour, improvement are achieved by learning about what people do, why they do them, with what impacts (negatively or positively) and if there is need for adjustment. The impact of self service on the sales performance of Cyril supermarket is no exception.

The findings of this study shall be useful in the successful marketing of goods and services by supermarkets that are involved.

The finding will also be of immense beneficial as a sources of knowledge to proprietors of supermarkets since not much work has been done in equating the amount of self service done in supermarket and the financial seduces achieve.

Usage of self service as a sales strategy has helped Cyril supermarket proprietors know to a certain extent the reasons behinds the rejection or acceptance of self service offered to their customers which ginger them towards satisfied or unsatisfied financial needs.

The benefit also extend to academicians and customers. The academicians will benefit because it will widen their horizon of knowledge regarding the motivating factors behind self service as the sales strategy of some particular supermarkets.

This study is a complex, multidimensional one. It will add to the existing stock of knowledge in administrative science and literature as regards self service in supermarkets to meet up with the trend of changes in marketing society.

The researcher reason for embarking on this study is to help managers to know areas where there is need for improvement on the performance of supermarket in Ebonyi state and equally suggest ways for improvement. It shall also spot high the benefit of self service in the performance of supermarket.

Moreover, the researcher will benefit immensely from embarking on the study due to the knowledge he will acquire from embarking in the project wrk.

1.6 SCOPE OF THE STUDY

The scope of this study is in all supermarket in Nigeria with Cyril supermarket as a case study.

1.7 DEFINITION OF TERMS

The following terms used in this study should be taken to mean the following.

Marketing

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging, products and service of value with others. (Kotler 2002: 9).

Product

A product is something that is viewed a being capable of satisfying needs and wants.

Services

Services is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. (Kotler 2002: 444).

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Full Project – THE IMPACT OF SELF SERVICE ON THE PERFORMANCE OF SUPERMARKETS

Full Project – THE IMPACT OF SELF SERVICE ON THE PERFORMANCE OF SUPERMARKETS

Full Project – THE IMPACT OF SELF SERVICE ON THE PERFORMANCE OF SUPERMARKETS

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