Customer satisfactioncan be defined with the use of two basic concepts which is transaction basedsatisfaction and cumulative satisfaction. Transaction based satisfaction isbased on the evaluation of a specific purchase once the customer selection hasbeen made and the product has been purchased.
On the other hand, cumulativesatisfaction is based on the overall experience after the purchase and use ofthe product or services over a certain period of time (Anderson, Formelo,Lehmann, 1994). With respect to the definitions above, the former is moresuitable for the authors of this article, since their research is focused oncustomer satisfaction with one particular product. According to Gomez (2004), satisfactioncan be defined and measured as consumer ratings of specific attributes and canbe defined as a comparison of previously held expectations with perceivedproduct or service performance (Homburg et al., 2005; Anderson et al.
, 1994).With respect to the focus of the paper on company’s product quality, we havedefined customer satisfaction as a subjective reflection of this quality. Priceis an important element in consumers’ purchases therefore it has a largeinfluence on consumers’ judgment’s regarding service (Herrmann et al., 2007).If an alternative brand with better attributes and a cheaper price is availablein the market, such customers are likely to defect (Lenka et al., 2009). Priceis an important antecedent of customers’ satisfaction as consumers depend onprice because it is extrinsic signal of quality.
Singh and Sirdeshmukh (2000)have revealed that price significantly influences customer satisfaction inservice industries. The empirical result of Jiang and Rosenbloom (2005) hasalso shown that price perception has a positive impact on customer satisfactionand behavioral intention. What are the qualities of these services provided tocustomers? Are the customers satisfied with these services? According to Magiand Julander (1996), this research originated from the fact that customer or consumeris the key to business. In fact, their satisfaction is the most important toolthat helps to increase sales and generate profits in the business environment.Moreover, the importance of customer satisfaction and service quality has beenproven relevant to help improve the overall performance of organizations. According to Deming (1982), product quality is acertain factor affects quality and vice versa. However it is not a problem inthe case of dynamic perception of satisfaction and quality if one perceivesquality and customer satisfaction as a process. Consequently, technical andmoral quality affects customer satisfaction, while the manufacturer candetermine the level of customer satisfaction and respond via productinnovations to ensure even greater customer satisfaction.
By doing so, themanufacturer can improves product quality and the circle is complete. Tesco Stores (Malaysia) Sdn Bhd owns and operateshypermarkets in Malaysia. It offers household items, fresh produce and appareland its own food and non-food products. This company was founded in 2001 inKuala 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. Tesco,is popular supermarket chains in the world, is still trying to makeprogress on customer service. A survey open to their entire customer isnow conducted to collect feedback to improve customer satisfaction and customerexperience.
Response from each individual could make a difference inTesco’s development and service. Tesco is a global market grocery andgeneral merchandise retailer headquartered in CHESHUNT, United Kingdom. Tesco isthe third- largest retailer in the world measured by revenues (after Wal-Martand Carrefour) and the second-largest measured by profits (after Wal-Mart). Ithas stores in 14 countries across Asia, Europe and North America and is thegrocery market leader in the UK.
The company was founded by Jack Cohen in 1919and 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 contain differentareas such as the retailing of clothing, books, electronics, furniture,financial service telecoms and internet services and also music store. Tescohas opened its first store in Malaysia in May 2002 with the opening of itsfirst hypermarket in Puchong, Selangor. Tescocurrently operates 39 Tesco and Tesco Extra stores in Malaysia.
Tesco stores bystate in Malaysia are as following Selangor with 11 stores, Johor 5 stores, KualaLumpur, Kedah and Penang 4 stores, Perak 6 stores, Melaka and Negeri Sembilan 2stores and Kelantan 1 store (MohammadrezaAghaei, Hanieh Mirzaee, Marzieh Djadidi, Elham Hassanpour, Mehrdad Salehi,2012). Tesco created the partnership withSime Darby Berhad, which is they has 30% of the shares in Malaysia. Also Tescoacquired the Malaysian operation of the wholesaler Makro, which was rebrandedTesco Extra and provides products for local retailers.
Tesco Malaysia supplies a value range loyaltyclub-card, electronic goods, individual branded range, and clothing. In 2007 Tesco Malaysia’s introduced GreenClub-Card Points that made Tesco Malaysia the first Tesco internationalbusiness to introduce the scheme (Green Club-Card Points) (Mohammadreza Aghaei, Hanieh Mirzaee, Marzieh Djadidi,Elham Hassanpour, Mehrdad Salehi, 2012).