The Impact of Self-Service on the Performance of Supermarkets (A Case Study of Cyril Supermarket Abakaliki, Ebonyi State)
Chapter One
OBJECTIVES OF THE STUDY
The objectives of this study are as follows:
- To find out whether customers prefer the self-service strategy to the traditional haggling system.
- To determine whether a self-service strategy leads to an increase in sales volume.
- To determine whether supermarkets perform better than shops that do not adopt the self-service strategy.
- To determine whether supermarkets in Abakaliki offer the same dynamic service as the foreign ones.
CHAPTER TWO
LITERATURE REVIEW
OVERVIEW OF SUPERMARKET
A supermarket according to Kotler (2000: 536) is relatively large, low cost, low-margin high volume, self service operation designed to serve total needs for food, laundry and house hold products.
Ifezue (1990: 93) also noted that supermarket is a large scale departmentalized retailing institution which offers a relatively wide variety and complete stock of merchandize (which includes fresh meats produce, diary products and groceries) supplement by a variety of convenience non food merchandise, featuring price appeal and some parking space. He explained that supermarkets earn an operating profit of about 1% their sales and 10% on their net worth. He pointed out that despite strong competition from new and innovative competitor like superstores and discount stores supermarkets remain frequently shopped type of retail business.
It I important to note that the above descriptions given to supermarkets are often found in developed world and urban centers. However, what is branded a supermarket from the perspective of the developing world rural context may be very far from this. It may be better llied a mini shop.
Moreover, Nwokoye (1998: 136) also believed that supermarket is a retail outlet that sells food items. It is like the food section in a retail store. Based on these definition, it could be right believed that the important of a supermarket cannot be over emphasized. It is generally believed by many authors and people that supermarkets sales more item at relatively low prices. And perform marketing function of providing time, place and possess in utilities to consumers at a reasonable price.
There are other views expressed by other authors, Stapleton (1999; 101) for instance, gave divergent view in his definition instead of emphasizing on either merchandizing variety of minimum sales turn over, he defined supermarket on the area of store premises. He defined this a self service store more than 2000 square feed with a minimum of 2 to 3 check out points that specialize in the reported selling of goods that are advertised national and for which thee is a high regular demand.
Ifeze observed that there is no universally accepted definition of a supermarket. He said that some people refer to supermarket as a type of retail institution usually found in the grocery field in which most of stores are in the food field but through some carry drugs and woman appeal.
CHAPTER THREE
RESEARCH METHODOLOGY
SOURCES OF DATA
In carrying out this research, both primary and secondary sources of information were use of, but more of the primary source because of factorial nature of the research.
PRIMARY DATA
The study adopted the use of primary data collected through the use of questionnaire and personal interviews.
The questionnaire was constructed with reference to the hypothesis given in chapter one. This questionnaire was administered to all literature member who could read and comprehend, while the same questionnaire was read and interpreted to the illiterates who could neither read nor comprehend the questions.
SECONDARY DATA
Secondary data for this study were obtained from the following sources:
- Textbooks comprising various disciplines like marketing, management and economics.
- Various Nigeria dailies like
- Business times
- Business concord
- Financial times
- Articles from other daily newspapers.
Enugu state university of science and technology, Enugu, University of Nigeria, Enugu campus. Enugu state Ministry of Trade and Commerce (Marketing Board).
RESEARCH INSTRUMENT
In order to provide the study with enough relevant information, the research instrument adopted consist mainly of questionnaire designed in such a way that they provided adequate search into self – service system.
POPULATION OF STUDY
The population for this study was made up of customers and staff of the supermarket used as a case study. The areas where most of the customers that shop at the supermarket were interviewed were divided into two zones for easier and better representatives. The zones include.
- Ogoja road area (Ogoja road, New – Market raod, Givining Road, all in Abakaliki) with a population of one hundred and fifty people 150).
- New Layout areas (water – works road, Udemeuz street, liberty street, Abuolowo Street) with a population of one hundred and seven people (107).
CHAPTER FOUR
PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
DATA ANALYSIS
The analysis of data in this research will help the researcher to extract every relevant and meaningful information from the collected data and in addition serve as an instrument for proving the hypothesis under study.
The researcher designed questionnaire to find out from consumers, the impacts of self service on the sales performance of supermarkets.
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
SUMMARY OF FINDINGS
Through a careful systematic collection, recording analysis and reporting of data, contained in the various response of the consumers to whom the instrument applied on. Important revelation and observation has been made regarding the impact of self service on the sales performance of supermarket.
It has been reveal through analyzing questions in the questionnaire that consumers have positive perception of self service, the researcher found out that many customers prefer self service, because it enables them to examine merchandize before selection. More so, delay of customer at traffic are eliminated where there is self service oriented supermarket.
Through the analysis of question 4, 7 and 12 the researcher was able to determine the relationship between self service and sales volume. This relationship is positive because self service stores sell their products at special prices, which increased customers patronage resulting in increase in sales volume. The ability of self service stores to sell at special price is due to the fact that cost of employing workers to do the service for the customers are eliminated.
The relationship between self service and sales volume is most note from impulse buying, also the order and ease of purchase all add up to customers patronage.
Above all, the researcher could also maintain that it was due to these considerations that supermarket operating the self service strategy do better than those that do not. The finding was revealed through the very high percentage of supermarket operators who attested to this, the freedom to select goods from the store without interference, availability of variety goods, special prices and impulse buying all account for customer patronage. The result is high turnover and increase profitability which enhance the growth and survival of the supermarkets. Thus, customers self service has a relationship to the growth and survival of corporate supermarkets.
RECOMMENDATION
Since this study would be of immense benefit to marketing firms, supermarket operators, policy makers and other who might like to make use of this work for better formulation of policies in their organisation.
The writer wishes to make the following recommendations.
- Supermarket operators should identify the potential needs and wants of the buying, public and be able to use it as basic for formulating their merchandising strategies, like self service method, quality of commodities etc.
- Supermarket manager should recognizes the fact that consumers are kings and can buy from the supermarket or store, they feel they have met the conditions they want. So their policies should be flexible as to suit customers wants.
- Supermarket managers must develop comprehensive plan which would enable the store to complete and operate effectively in its environment.
- Supermarket managers should strive to portray a favourable image of their supermarkets and make it a point of duty to provide unique and qualitative service to suit customers purchasing habits.
- Corporate supermarket managers should train their employees on such areas as customers services, and also good public relation that will attract customers.
- Corporate supermarket managers should adopts proper display of their product on sale. This helps their customers to have easy access to the goods they want to buy
- Finally, I strongly recommend that all supermarket should be self service oriented because evidence has shown that supermarket operating self service are far better than those who do not.
CONCLUSION
What brings customers to supermarkets is actually to make purchase. Apart from other factors like high quality of goods, variety of items guarantees which are common to the consumers, self service strategy is still fairly now. Even where it is partially practiced, customers complain that they are still influence or not allowed to do their purchases by store operators.
From the finding made, it is obvious that no matter how illiterate the consumer may be in respect of purchase situation, he or she still want not to be influence in the buying process. Hence, customers want free choice of picking items from the variety goods displayed, moreover, the less they influenced the less consumer dissonance and the more satisfaction gained. But certainly, supermarket operators/employee believe that influencing the customers will make them buy more items or picking other items, if wanted items are not in the store.
Many store owners tend to forget the fact, that consumers dissonance is not good attribute to a particular shop or supermarket. Customers keep away from stores where such dissatisfaction arose from.
Thus, store keeper should keep away from customers when picking their items especially where self service strategy is practiced. They can only assist the customers only when they are needed.
This conclusion was drawn from the review of all the investigations and evidence collected through questionnaire and personal interview held.
SUGGESTION FOR FURTHER STUDY
Due to the limitation listed in chapter one of this study the researcher could not conduct a more detailed and comprehensive study on this topic. Self service concept just like any other business concept adopted in Nigeria, still required buying system. Therefore, the researcher recommends a more detailed study. Therefore, the researcher recommends that a more detailed and comprehensive study be conducted on this topic.
BIBLIOGRAPHY
TEXTBOOKS
- Adirika, Ebue and Nnolim (1996) Principles and Practice of marketing II (Enugu Jamoe Enterprises)
- Anaiyay, Jehel and Elierobach (1999) Supermarket Strategy (New York, Macmillan company).
- Bermon, Banny and Jeoy R. Evans (1997): Retiling management and strategy approval (New York Macmillan Publishes Inc.)
- Duncan and Philip (1999): Relating principles and method (Hollywood Illinois, Richard D. Irwin Inc).
- Kotler, Philip (2002): Marketing Management (New Jersey, Englewood Cliffs, Prentice hall Inc).
- Nwokoye N. C. (1994): Modern marketing for Nigeria (London and Basing stoke Macmillan Publishers)
- Stapileton (1999): Supermarketing Merchandising Management (new Jersey, Englewood Cliffs, prentice hall inc).
