BACHELOR OF FASHION

(MERCHANDISE MANAGEMENT)
MANU 1459 MAJOR PROJECT (A) PROPOSAL
REPORT, ASSESSMENT 2
SEMESTER 1, 2017

TASK: RESEARCH PROPOSAL REPORT MAJOR (A)

NAME: QUEK ZUOYU SELENE JOAN

STUDENT NUMBER: S3492120
Abstract

In the highly competitive fashion industry, many fashion retailers have to strive in

providing excellent customer service to gain a positive customer shopping

experience and customer satisfaction. This report is to determine the relationship

between customer retail experience and customer satisfaction and the impact it has

on consumers. The purpose of this proposal report is to communicate the attributes

affecting consumers shopping behaviour and what influences them.

In todays society, consumers are well connected throughout the world by

technology. This increases the need for retailers to satisfy consumers in order to

retain them and convert them to loyal customers. This study will explore the retail

customer experience and its dynamics in a physical and an online retail store

settings. It will also explore the retail customer satisfaction and how the customer

loyalty, loyalty program and service convenience will impact the customers purchase

decision. Therefore, there is a need to examine the impact and influences of

customers shopping experience and the effects it has on their satisfaction.

For this report, the research was obtained by reviewing various journal articles

related to the topic. A sample of data collection methods has been included in this

proposal report to aid in the research for Major B.

1.0 Title of project

Discovering customer shopping experience,

and how it affects customer satisfaction in retail

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2.0 Introduction & Rationale

INTRODUCTION

This report has been prepared for any consumers and retailers who are interested to

better understand the relationship between customer shopping experience and

customer satisfaction in retail. The purpose of the report is to examine and explore

the attributes and drivers of customer experience, satisfaction and customer loyalty.

The scope of this proposal report consist of the research topic, which is customer

shopping experience Physical and Online stores, and how it affects customer

satisfaction in retail, the various attributes of retail customer experiences for both a

physical retail store setting and an online retail store setting, the retail customer

satisfaction and its attributes affecting it and lastly the relationship between customer

experience and customer satisfaction.

RATIONALE

The main reason this topic has been elected is due to its relevance to the retail

business and its consumers. A retail customer experience and customer satisfaction

revolves around each individuals life everyday. For retailers and businesses,

providing a good customer experience is vital, as this affects its profitability, revenues

and brand reputation. For consumers, by experiencing a positive shopping process, it

will increase their satisfaction level and thus, return to the same retailer as a

relationship has been formed.

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3.0 Research Aim & Objectives

AIM

The aim of this report is to distinguish the relationship between retailers and its

consumers that will help us understand how retailers implement these attributes to

retain customers and how retailers perform to provide its customers with a positive

customer shopping experience and satisfaction.

OBJECTIVES

To identify the attributes affecting customers shopping experience and customer

retail satisfaction.

To analyse the relationship of customer loyalty programs and the impact it has on

customers shopping experience.

To evaluate the theories identified and determine which is more effective in

influencing customers shopping experiences and customers shopping satisfaction.

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4.0 Literature Review

4.1 Introduction

Retailers recognize that customer satisfaction plays a vital role in a successful

business strategy. In todays society, traditional retailing has evolved from being a

buying ritual exchange process to delivering a joyful shopping experience. The level

of attention a customer perceives on receiving in both a physical retail setting and an

online retail setting is critical to a retailer as it establishes a positive customer

experience and relationships (Alhouti et al. 2015).

The ever-evolving digital world is transforming the way fashion retailers operate.

With the rise of social media platforms, consumers now have access to a multitude of

retail channels. They are more exposed to a variety of options to select from and

they are no longer limited to purchase items from a single retailer. In addition,

retailers are finding it harder to manage consumers perception as more information is

readily available on the Internet, which enables consumers to source for other

product options and to express and distribute their opinions on various platforms and

forums available online (Malthouse et al. 2013). Retailers should take advantage of

all possible platforms to listen and engage with consumers, and potentially convert

and retain them as ambassadors of their products.

Thus, the literature is to examine and explore the factors and relationship between

customer shopping experience in a physical retail setting and an online retail setting,

and how it affects customer satisfaction.

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4.2 Retail Customer experience

A retail customer experience is when customers come in contact be it physically or

online with a retailer and the retailers are encouraged to implement all elements of a

positive customer experience. A retail store is integral to providing pleasant shopping

experiences and interactions with the brand that enhances customer satisfaction and

promotes loyalty. It acts as a retail platform or experience factory. The experience

customers receive plays a critical part in shaping the companys reputation and

analyzing customers preferences enables retailers to understand its customers and

provide better influences to aid in customers purchase decisions (Singh & Soch

2015). Customer experience can be described as a consumption of experiences that

involves various leisure activities, sensory pleasures, daydreams, aesthetic

enjoyment, and emotional responses. It is a perception created by the customers in

the process of learning, acquiring, using, maintaining and disposing of a product or

service (Bagdare & Jain 2013).

Based on the wide range of activities customers engage in when considering retail

stores, shopping and post shopping processes, these different stages will determine

customer satisfactions levels and result in a repeated visit. It is important that

retailers do it right the first time because customer experience has a significant

impact on retail sales, perception, more frequent and repeat store visits, loyalty,

profitability, word-of-mouth communication and individuals image formation of brand.

The customer experience outcome is largely impacted by a combination of cognitive,

emotional, behavioural and sensorial responses by the customer. However, it has

been discovered that emotional benefits is the underlying role of shaping customers

retail experience (Bagdare & Jain 2013). According to Machleit and Eroglus 2000

study (cited in Bagdare and Jain 2013), a study measuring emotional dimensions of

shopping experiences were presented and the results showed that positive emotions

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are strongly related with shopping outcomes. Previous study suggests that there are

four attributes of defining retail customer experience: joy, mood, leisure and

distinctive (Bagdare & Jain 2013).