can be defined with the use of two basic concepts which is transaction based
satisfaction and cumulative satisfaction. Transaction based satisfaction is
based on the evaluation of a specific purchase once the customer selection has
been made and the product has been purchased. On the other hand, cumulative
satisfaction is based on the overall experience after the purchase and use of
the product or services over a certain period of time (Anderson, Formelo,
Lehmann, 1994). With respect to the definitions above, the former is more
suitable for the authors of this article, since their research is focused on
customer satisfaction with one particular product. According to Gomez (2004), satisfaction
can be defined and measured as consumer ratings of specific attributes and can
be defined as a comparison of previously held expectations with perceived
product or service performance (Homburg et al., 2005; Anderson et al., 1994).
is an important element in consumers’ purchases therefore it has a large
influence on consumers’ judgment’s regarding service (Herrmann et al., 2007).
If an alternative brand with better attributes and a cheaper price is available
in the market, such customers are likely to defect (Lenka et al., 2009). Price
is an important antecedent of customers’ satisfaction as consumers depend on
price because it is extrinsic signal of quality. Singh and Sirdeshmukh (2000)
have revealed that price significantly influences customer satisfaction in
service industries. The empirical result of Jiang and Rosenbloom (2005) has
also shown that price perception has a positive impact on customer satisfaction
and behavioral intention.
What are the qualities of these services provided to
customers? Are the customers satisfied with these services? According to Magi
and Julander (1996), this research originated from the fact that customer or consumer
is the key to business. In fact, their satisfaction is the most important tool
that helps to increase sales and generate profits in the business environment.
Moreover, the importance of customer satisfaction and service quality has been
proven relevant to help improve the overall performance of organizations.
According to Deming (1982), product quality is a
certain factor affects quality and vice versa. However it is not a problem in
the case of dynamic perception of satisfaction and quality if one perceives
quality and customer satisfaction as a process. Consequently, technical and
moral quality affects customer satisfaction, while the manufacturer can
determine the level of customer satisfaction and respond via product
innovations to ensure even greater customer satisfaction. By doing so, the
manufacturer can improves product quality and the circle is complete.
Tesco Stores (Malaysia) Sdn Bhd owns and operates
hypermarkets in Malaysia. It offers household items, fresh produce and apparel
and its own food and non-food products. This company was founded in 2001 in
Kuala Lumpur, Malaysia. The store located in Klang, Purchong, Mutiara Damansara,
Malacca, Sungai Petani, Ipoh, Penang, Banting, Ampang, Shah Alamand Seri Alam.
Tesco Stores (Malaysia) Sdn Bhd operates as a subsidiary of Tesco PLC.
is popular supermarket chains in the world, is still trying to make
progress on customer service. A survey open to their entire customer is
now conducted to collect feedback to improve customer satisfaction and customer
experience. Response from each individual could make a difference in
Tesco’s development and service.
Tesco is a global market grocery and
general merchandise retailer headquartered in CHESHUNT, United Kingdom. Tesco is
the third- largest retailer in the world measured by revenues (after Wal-Mart
and Carrefour) and the second-largest measured by profits (after Wal-Mart). It
has stores in 14 countries across Asia, Europe and North America and is the
grocery market leader in the UK. Tesco was founded by Jack Cohen in 1919 and
opened the first store in 1929 in Burnt Oak, Edgware, and Middlesex (Mohammadreza Aghaei, Hanieh Mirzaee, Marzieh Djadidi,
Elham Hassanpour, MehrdadSalehi, 2012).
Each Tesco stores have different
areas such as the retailing of clothing, stationary, electronics, furniture,
financial service telecoms and internet services and also music store. Tesco
has opened its first store in Malaysia in May 2002 with the opening of its
first hypermarket in Puchong, Selangor. Tesco
currently operates 39 Tesco store and Tesco Extra stores in Malaysia. Tesco
stores by state in Malaysia are as following Selangor with 11 stores, Johor 5
stores, Kuala Lumpur, Kedah and Penang 4 stores, Perak 6 stores, Melaka and
Negeri Sembilan 2 stores and Kelantan 1 store (Mohammadreza Aghaei, Hanieh Mirzaee, Marzieh Djadidi, Elham Hassanpour,
Mehrdad Salehi, 2012).
Tesco created the partnership with
Sime Darby Berhad, which is they has 30% of the shares in Malaysia. Also Tesco
acquired the Malaysian operation of the wholesaler Makro, which was rebranded
Tesco Extra and provides products for local retailers. Tesco Malaysia supplies a value range loyalty
club-card, electronic goods, individual branded range, and clothing. In 2007 Tesco Malaysia’s introduced Green
Club-Card Points that made Tesco Malaysia the first Tesco international
business to introduce the scheme (Green Club-Card Points) (Mohammadreza Aghaei, Hanieh Mirzaee, Marzieh Djadidi,
Elham Hassanpour, Mehrdad Salehi, 2012).