Effect Of Customer Behaviour On Operational Performance Using Jabi Lake Mall Abuja As A Case Study

Effect Of Customer Behaviour On Operational Performance Using Jabi Lake Mall Abuja As A Case Study

Abstract

This study was carried out to examine the effect of customer behaviour on operational performance using Jabi Lake Mall Abuja as a case study. Specifically, the study was carried out to determine the extent customers are considered as an important and integral part of the operational performance of business organizations, find out whether customers behaviour influences the nature of customer relationship management strategy of an organization, find out whether customers behaviour influences the marketing strategies of an organization, and find out whether customers behaviour influences the decision making process of an organization. The study employed the survey descriptive research design. The population size comprised of staff of Jabi Lake Mall Abuja. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, while the hypotheses were tested using Pearson Correlation statistical tool, SPSS v23. From the responses obtained and analyzed, the findings revealed that there is a significant positive relationship between customers behaviour and the operational performance. The study thereby recommend that Business organizations must understand the importance of customer behaviour in improving the customers loyal and organizational performance. They should also realize that:Effective customers’ relationship management is a reliable tool to increase customer base. Hence, every single need aspect of the customer must be attended to and ensure customer satisfaction at all time. To mention but a few.

Table of Content

Chapter One:

Introduction

• 1.1 Background of the Study
• 1.2 Statement of the Problem
• 1.3 Objective of the Study
• 1.4 Research Questions
• 1.5 Research Hypothesis
• 1.6 Significance of the Study
• 1.7 Scope of the Study
• 1.8 Limitation of the Study
• 1.9 Definition of Terms
• 1.10 Organization of the Study

Chapter Two:

Review of Literature

• 2.1 Conceptual Framework
• 2.2 Theoretical Framework
• 2.3 Empirical Review

Chapter Three:

Research Methodology

• 3.1 Research Design
• 3.2 Population of the Study
• 3.3 Sample Size Determination
• 3.4 Sample Size Selection Technique and Procedure
• 3.5 Research Instrument and Administration
• 3.6 Method of Data Collection
• 3.7 Method of Data Analysis
• 3.8 Validity of the Study
• 3.9 Reliability of the Study
• 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

• 4.1 Data Presentation
• 4.2 Analysis of Data
• 4.3 Answering Research Questions
• 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

• 5.1 Summary
• 5.2 Conclusion
• 5.3 Recommendation
• References
• APPENDIX
• QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

Customer behaviour is one of the most frequently addressed subjects in the marketing and service literature (Andreassen and Lindestad, 1998a; Kerr, 1999; Patterson and Smith, 2003; Eshghi, Haughton, and Topi, 2007; Heskett and Sasser, 2010). The subject has gained attention of service companies because of its importance to the successful running of any business. Realizing the prime importance of customer behaviour to organisations, a major concern is to determine how it is affected. Issues involving customer behaviour in service organisations have drawn the attention of various researchers concerned with finding the determinants of customer behaviour and their implications in service industries.

Most of the studies on this matter have concluded that customer satisfaction is one of the major determinants of customer behaviour (Parasuraman et al. 2010; Anderson and Sullivan, 2010; Andreassen and Lindestad, 2013; Lin and Wang, 2006). Besides customer satisfaction, low perceived value compels customers towards switching to competing businesses in order to increase perceived value, which consequently contributes to a decline in behaviour (Anderson and Srinivasan, 2003). Recent research has found that perceived trust directly and positively influences customer satisfaction and customer behaviour (Chiou, 2004). This aspect was strengthened by Lin and Wang (2006), whose study concluded that trusting beliefs could lead to customer satisfaction, which, in turn, influences customer behaviour. Corporate image and Brand image also positively affects customer behaviour and customer satisfaction (Andreassen and Lindestad, 2008; Javalgi and Moberg, 2007). Other studies have found that service quality is a strong determinant of customer satisfaction and customer behaviour (Buzzell and Gale, 20011; Zeithaml et al. 2006; Kumar et al. 2008).

Many researchers have studied the influence of waiting time over customer satisfaction/behaviour (Taylor, 1994; Pryun and Smidts, 1998; Antonides et al. 2002; Bielen and Demoulin, 2007). Their studies concluded that although waiting time does not affect behaviour directly, it influences service satisfaction which has direct effect on customer behaviour. According to Bielen and Demoulin (2007), waiting time issues arise due to imbalance between demand and capacity.

Customer behaviour is a psychological part of an individual which makes the difference in purchasing any goods, services and anything else. The behaviour of any customer depends on many factors which are very important for any marketing management team in any business or any organization which deals in directly to customers. The study of customer behaviour involves search, evaluation, purchase, consumption and post purchase behaviour of the customers and includes the disposal of purchased products keeping environment and personal characteristics in mind. It is the body of knowledge which studies various aspects of purchase and consumption of products and services by individual. The American Marketing Association (AMA) defines customer behaviour as the dynamic interaction of cognition, behaviour & environmental events by which human beings conduct the exchange aspect of their lives with various social and psychological variables at play (Perner 2007).

The global marketplace is a study in diversity, diversity among customers, producers, marketers, retailers, advertising media, cultures, and customs and of course the individual or psychological behaviour. However, despite prevailing diversity, there also are many similarities. The object of the study of customer behaviour is to provide conceptual and technical tools to enable the marketer to apply them to marketing practice, both profit & non-profit.

The study of customer behaviour (CB) is very important to the marketers because it enables them to understand and predict buying behaviour of customers in the marketplace; it is concerned not only with what customers buy, but also with why they buy it, when and where and how they buy it, and how often they buy it, and also how they consume it & dispose it.

1.2 Statement of the Problem

Previous research has shown that operational performance of service delivery can positively affect customer satisfaction (Stank et al. 1999). This study builds upon this by pointing out the effect of customer behaviour on operational performance. Specifically, the research studies the impact of operations performance on customer behaviour in one area of industrial services, the telecommunications service industry.

Previous studies have tested the impact of promotions of branded items and store behaviour independently on customer behaviour (Blattberg and Levin 1987; Dube and Gupta 2008). But many of these articles have discussed the customer behaviour and operational performance either in isolation or with behavioural aspects, but have not related the behaviour aspects with the actual performance.

1.3 Objectives of the Study

The main aim of this study is to examine the effect of customer behaviour on operational performance. Other aims of this study are:

1. Determine the extent customers are considered as an important and integral part of the operational performance of business organizations.
2. Find out whether customers behaviour influences the nature of customer relationship management strategy of an organization.
3. Find out whether customers behaviour influences the marketing strategies of an organization.
4. Find out whether customers behaviour influences the decision making process of an organization.

1.4 Research Questions

The following research questions will be answered in this study:

1. What is the extent customers are considered as an important and integral part of the operational performance of business organizations?
2. Does customers behaviour influences the nature of customer relationship management strategy of an organization?
3. Does customers behaviour influences the marketing strategies of an organization?
4. Does customers behaviour influences the decision making process of an organization?

1.5 Research Hypotheses

The following hypotheses will validate this study:

• Ho: There is no significant relationship between customers behaviour and the operational performance.
• Ha: There is a significant relationship between customers behaviour and the operational performance.

1.6 Significance of the Study

This study may help service providers to appreciate the salient factors that influence users or customers and design fitting strategies and actions to draw customers to use this service. Furthermore, the research will also assist service providers to identify and comprehend the success factors that will drum in confidence among customers.
This study will also serve as a pilot study for further research and future reference.

1.7 Scope of the Study

This study focuses on the effect of customer behaviour on operational performance. The study will focus basically on customers relationship management, marketing strategies, and decision making. The study will be conducted in Jabi Lake Mall Abuja FCT of Nigeria.

1.8 Limitations of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definition of Terms

Customer Behaviour:

Customer behavior is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services. customer behaviour consists of how the customer’s emotions, attitudes, and preferences affect buying behaviour.

1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the effect of customer behaviour on operational performance using Jabi Lake Mall Abuja as a case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was on the effect of customer behaviour on operational performance using Jabi Lake Mall Abuja as a case study.The study is was specifically carried out to determine the extent customers are considered as an important and integral part of the operational performance of business organizations, find out whether customers behaviour influences the nature of customer relationship management strategy of an organization, find out whether customers behaviour influences the marketing strategies of an organization, and find out whether customers behaviour influences the decision making process of an organization.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of Jabi Lake Mall Abuja.

5.3 Conclusion

Based on the findings of this study, the researcher concluded that;

1. The customers are (to a high extent) considered an important and integral part of the operational performance of business organizations.
2. Customers behaviour influences the nature of customer relationship management strategy of an organization.
3. Customers behaviour influences the marketing strategies of an organization.
4. Customers behaviour influences the decision making process of an organization.

5.4 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

1. Business organizations must understand the importance of customer behaviour in improving the customers loyal and organizational performance. They should also realize that: Effective customers’ relationship management is a reliable tool to increase customer base. Hence, every single need aspect of the customer must be attended to and ensure customer satisfaction at all time.
2. Business Organizations should engage in enjoyable rapport and interaction with their customers because it gives the customer the assurance and satisfaction that the organization cares about them. Lastly, firm should also deliver quality services that are quite satisfactory and better than what competitors are offering to them.

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