Customer experience in the grocery retail sector in South Africa

Customer Experience (CX) is the measurement of interaction between a customer and an organisation over a long time. Customer Experience is a strategic marketing effort that aims to improve the customer journey and touchpoints with the organisations’ product and services. It involves the complete customer journey – starting with the search process, purchase and after-sale processes of the experience. Google Trends identified that online users from all over the world search the key words “Customer Experience” more, often than not. This study considered a reliable measure for Customer Experience. This study endeavours to explore Customer Experience in the grocery retail sector in South Africa to put customer needs at the centre of their business. Extensive research on Customer Experience exist, however Customer Experience in the grocery retail sector in South Africa has not been measured using Professor Phillip Klaus’s new scale in CX. A broad literature review was conducted and Factors influencing Customer Experience in the grocery retail sector were identified and explored. The academic literature selected for the study is founded in the academic theories of Experienced Utility and Service-Dominant (S-D) Logic. The literature formed the foundation for the conceptual model that included the proposed Brand Experience (BE), Service Experience (SE) and Post-purchase / Consumption Experience (PE) independent factors. This treatise formed part of a bigger study of Customer Experience undertaken, using a questionnaire distributed via email, which 858 respondents completed. The study was quantitative. Data analysis included the use of descriptive and inferential statistics, Exploratory Factor Analysis, Reliability and Validity of Measurement, One-Sample T-Tests and the measurement of relationship between the factors. There is a need for companies to explore and understand CX in order to differentiate themselves strategically and to improve the bottom line. This study contributes to the body of knowledge by using academic literature and theories to explore Customer Experience in the grocery retail sector in South Africa. BE involves the customers’ perception of the brand and influence the customer’s experience. Customers look for clues to help inform their SE and expect companies to know their product and basic service promise. The findings of the study identified that BE and SE had a positive and significant influence on each other. Customers will show signs of commitment to an organisation during a positive PE. Similarly, the findings concluded that PE and CX had a statistical and practical significant positive correlation. PE was highlighted as a key determinant of CX. A positive CX will lead to a repeat purchases. Marketing managers need to take into account these factors when formulating CX strategies to influence the bottom line of the organisation. This study concludes with managerial recommendations that the grocery retail sector can implement to influence CX. Some of the recommendations include the appointment of a professional to manage all social media content; training and development opportunities for employees to enhance customer and shopping experience; and the use of customer data from loyalty programmes to promote personalised offers. In summary, a continuous review of CX with the emphasis on PE is recommended, to understand the changing needs of customers in the grocery retail sector.Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 202