Customer satisfaction in the online grocery shopping market

Abstract

To establish an online grocery shopping service and to attract customers to it is an expensive operation. In order to recoup those expenses, and ultimately make a profit, an online retailer needs to ensure that customers remain loyal and make repeat purchases for as long as possible. Although customer satisfaction does not guarantee loyalty, dissatisfied customers generally take their business elsewhere at the first opportunity. This study investigates the overall level of satisfaction amongst a small sample of Woolworths’ online customer base. In pursuit of this, a multi-dimensional model was developed for assessing customer satisfaction in various areas, highlighting those which may require improvement. The impact of certain key demographic data on these dimensions was also investigated. Since satisfaction is not enough to guarantee loyalty, an assessment of the perceived value in making purchases online is also undertaken in an attempt to ascertain purchase intentions. The key findings of this study revealed a relatively high level of customer satisfaction as well as significant perceived value in shopping online when measured against the sacrifices made. However, a main area for improvement is to enhance the customer’s perception of the value they receive. The demographic variables of age, gender and language had no significant impact on any dimension, while the customer’s connection type was found to have a significant impact on their satisfaction pertaining to the performance of the Web site. Finally, it was established that there is a strong association with the Woolworths brand and corporate image, even though the online shopping initiative was launched as a separate brand.