Impact Of Self Service On The Performance Of Supermarkets
(A Case Study Of Cyril Supermarket Abakaliki Ebonyi State)
The integration of self-service technologies has revolutionized the retail landscape, particularly within the supermarket sector, significantly impacting its performance. By enabling customers to independently navigate the shopping experience, self-service options enhance operational efficiency, reduce labor costs, and mitigate checkout queues, thus fostering customer satisfaction and loyalty. Additionally, self-service kiosks and automated systems streamline inventory management, optimizing stock levels and minimizing instances of stockouts. This technological innovation not only facilitates smoother transactions but also empowers consumers with greater autonomy and convenience, aligning with evolving consumer preferences for seamless and efficient shopping experiences. Moreover, the data generated through self-service transactions provides valuable insights for market analysis and personalized marketing strategies, further enhancing the competitiveness and profitability of supermarkets in an increasingly digital marketplace.
The purpose of this project is to examine the impacts of self service on the performance of supermarkets.
The study is divided into five chapters. In chapter one the impacts was introduced and a narrative meaning of self service and other key elements included in the topic were discussed. It went further to state the problem to be studies and why this study was being carried out, that is the purpose, the significance of the study, scope of the study, the hypothesis to be tested and the Definition of terms.
Chapter two examined all other studies carried out on similar topic and their relevance to this study. There were mostly references, quotes adequate statements made by other authors who had handled similar topics.
Chapter three dealt with the major part of the project which involves the method used in collecting relevant data, research instrument used, the population and the sample size. It also dealt on how the questionnaire were distributed and treatment of data.
Chapter four dealt with the presentation, analysis and interpretation of data collected in chapter three, it also went further to test the hypothesis in chapter one.
Finally, in chapter five, a conclusion of the whole findings was drawn and appropriate recommendations made for possible implementation. However, this study was not done without lapses and on this very platform, suggestions and further studies were sort.
It as found that consumer have positive perception of self service; many of them prefer it because they use it as opportunity to select goods without interference. The study revealed that supermarkets that adopt self-services strategy perform better than their counterparts that do not adopt self service strategy.
I also made some recommendations in chapter five. Such recommendations. Were that supermarket operators should train their employees on areas like customer service and public relations. Supermarket operations should also improve on the ways they display their goods since attractive display attract consumers to make purchase.
Finally, I recommend that supermarket should be mare self service orientated since the advantages of this strategy has been shown.
Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Chapter One
1.0 Introduction
1.1 Background Of The Study
1.2 Statement Of Problem
1.3 Objectives Of The Study
1.4 Formulation Of The Hypothesis
1.5 Significance Of The Study
1.6 Scope Of The Study
1.7 Definition Of Terms
Chapter Two
2.1 Overview Of Supermarket
2.2 Mode Of Operation Of Supermarket
2.3 Location Of Supermarket
2.4 Impact Of Promotion Of Supermarket
2.5 Marketing Strategies
2.6 Management Of Supermarkets
2.7 The Need For Self Services In The Performance Of Supermarket
2.8 Sale Performance Indicated In Supermarket
2.9 Self Service Operation And Its Attendance Problem
Chapter Three
3.1 Sources Of Data
3.2 Research Instrument
3.3 Questionnaire Design
3.4 Population Of Study
3.5 Sample Size
3.6 Sample Size For Staff And Management
3.7 Questionnaire Distribution And Collection
3.8 Treatment Of Data
3.9 Limitation Of Study
Chapter Four
4.1 Data Analysis
4.2 Statistical Hypothesis
4.3 Choice Of Test Hypothesis
Chapter Five
5.1 Summary Of Findings
5.2 Recommendations
5.3 Conclusion
5.4 Suggestion For Further Study
Bibliography
Appendix
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.
1.5 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 work.
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).
Impact Of Self Service On The Performance Of Supermarkets:
Self-service has had a significant impact on the performance of supermarkets over the years. Here are some of the key ways in which self-service has influenced supermarket performance:
- Efficiency and Cost Savings: Self-service checkout lanes and systems have allowed supermarkets to operate more efficiently. They reduce the need for as many cashiers, which can result in labor cost savings. Additionally, these systems often require less space than traditional checkout lanes, allowing supermarkets to optimize their store layouts for greater customer flow and product placement.
- Reduced Wait Times: Self-service checkout options can help reduce wait times for customers during peak hours. Shoppers can quickly scan and pay for their items, which can lead to higher customer satisfaction and repeat business.
- Increased Customer Convenience: Self-service allows customers to have more control over their shopping experience. They can scan and bag their items at their own pace, which can be especially useful for customers with a small number of items or those who prefer to avoid interaction with cashiers.
- Inventory Management: Many self-service systems are integrated with inventory management software. This helps supermarkets track stock levels in real-time, enabling them to restock shelves more efficiently and reduce instances of out-of-stock items.
- Loss Prevention: Self-service checkout systems often have built-in security measures to deter theft and shoplifting. They can provide visual and audio alerts to store personnel when irregularities are detected, helping to reduce losses.
- Data Collection and Analytics: Self-service systems collect valuable data on customer behavior, such as what items are being purchased together and at what times of day. This data can be used to optimize product placement, marketing strategies, and pricing.
- Improved Accuracy: Automated scanning reduces the risk of human error in pricing and item identification. This can lead to fewer pricing disputes and improved accuracy in customer transactions.
- Customer Feedback: Self-service systems often include customer feedback mechanisms, such as touchscreens for rating the shopping experience. This feedback can help supermarkets make improvements and address customer concerns promptly.
- Customer Training: The introduction of self-service has required supermarkets to invest in customer education and support. They may offer tutorials, assistance from store personnel, or easy-to-follow instructions to help customers become comfortable with the technology.
- Social and Labor Impact: While self-service can lead to labor cost savings, it can also have social and employment implications. Some argue that it may lead to job displacement for cashiers, which can be a concern in terms of employment opportunities.
- Maintenance Costs: Self-service systems require maintenance and updates, which can add to the operational costs for supermarkets. Ensuring that these systems are running smoothly is essential for a positive customer experience.
In summary, self-service has had a significant impact on the performance of supermarkets by improving efficiency, reducing wait times, enhancing convenience, and providing valuable data for decision-making. However, it also presents challenges related to labor, maintenance, and customer education that supermarkets need to address to maximize its benefits.