Customer experience: a comparative analysis between the banking and grocery retail sectors

The notion of customer experience has gained prominence in the field of marketing over the last three decades. It has become a strategic imperative for firms in order to ensure sustained business growth. A positive customer experience not only has the ability to promote customer loyalty but can also assist firms in encouraging brand advocacy. While customer experience has been explored in several contexts, regions and industries, customer experience in South Africa’s banking and grocery retail sectors has not yet been adequately explored. Therefore, this study attempts to provide a comparative analysis of these two sectors and in turn present a model for improving customer experience as a marketing tool. The execution of this study requires a literature review to investigate the field of customer experience. This literature review assisted in developing a conceptual model for customer experience in the attempt of improving customer experience quality. Furthermore, this Treatise pursues a positivistic research approach using quantitative methods of analysis. Factor analysis was conducted using data gathered from an online questionnaire disseminated via e-mail. The sample of this study was selected at random using convenience and snowball sampling. A sample size of n = 858 is used in this study. Descriptive and inferential statistical analysis were conducted on the data. The primary contribution of this study was the presentation and statistical assessment of an exploratory factor analysis of factors influencing customer experience in South Africa’s grocery retail and banking sectors. This study found that the independent factors of Brand Experience, Service Experience and Post-purchase Experience were all found to have a positive effect on the overall customer experience. In the grocery-retail sector, Post-purchase Experience was found to have a strong positive correlation with customer experience. Brand Experience and Service Experience were strongly correlated with each other as independent factors, but did not demonstrate any practical or statistical significance in relation to the dependent factor, Customer Experience. However, in the banking sector, all of these factors demonstrate positive correlations with Customer Experience that are statistically and practically significant. The model presented in this study identifies the determinants of Customer Experience within both sectors.Thesis (MBA) -- Faculty of Business and Economic Sciences, NMU Business School, 202