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Significance of Technology Improvement on Customer Satisfaction in Service Delivery: A Case Study of Tesco ABSTRACT
The main aim of this research is to evaluate the significance of technology improvement on customer satisfaction in service delivery. To achieve this, issues faced by the customers in service delivery of retail firms and relationship between service delivery and customer satisfaction in retail industry are examined. After this, significance of technology improvements in the current retail business environment for service delivery and consequently customer satisfaction improvements is determined.

On the basis of research onion, various methods such as interpretative philosophy, inductive approach, literature review and survey strategies are used by the researcher to develop the large database to solve the research issue. Apart from this, survey through questionnaire method is conducted on 57 customers of Tesco to collect primary data related to the research issue. In order to analyze collected data SPSS analytical tool is used by researcher. It helped the researcher to present the findings in understandable manner to generate research outcomes.

From the data analysis, it is identified that at retail stores, customers face various issues related to the lengthy checkout process, ineffective store staff, and lack of employees’ assistance in selecting products. These issues create problems for the customers in selecting right products according to the needs from the huge store, which makes them dissatisfied from the services. It is also found that there is a strong relationship between customer service and service delivery. It is because effective service delivery develops the positive perception of customers about the services and products of the retail firm. In this, the use of new and advance technology can help Tesco to improve its business process and checkout process at stores. It can enable Tesco to improve its services as well as reduce the waiting time of customers in order to provide them higher satisfaction.

The future researchers have the opportunities to conduct this research study by taking interview of key management executives in order to achieve more reliable data related to the significance of technology improvement on customer satisfaction in service delivery.

Table of Contents
INTRODUCTION 5
Background 5
Company Justification 6
Research Rationale: 6
Research Aim & Objectives 7
Research Question: 8
Research Structure 8
LITERATURE REVIEW 9
Introduction 9
Issues of Service Delivery for Customers 9
Relationship between Service Delivery and Customer Satisfaction 13 Significance of Technology Improvements for Service Delivery and Customer Satisfaction 17 Summary 21
RESEARCH METHODOLOGY 22
Introduction 22
Research Onion Framework 22
Research Philosophy 22
Research Approach 23
Research Purpose 24
Research Strategy 25
Time Horizon 25
Data Collection Methods 26
Sampling Procedure 27
Data Analysis Method 28
Ethical Issues 28
Summary 28
DATA ANALYSIS AND FINDINGS 30
Introduction 30
Analysis and Findings 30
Reliability Test 30
Demographic Result 31
Service Experience at Retail Stores 32
Service Delivery and Customer Satisfaction 34
Impact of Technology on Service Delivery and Consequently on Customer Satisfaction 37 Analysis and Interpretation of Findings 38
Service Experience at Retail Store 38
Service Delivery and Customer Satisfaction 39
Impact of Technology on Service Delivery and Consequently on Customer Satisfaction 41 Summary 42
CONCLUSION AND RECOMMENDATIONS 43
Conclusion 43
Recommendation 45
Limitations and Future Researches 46
References 47
APPENDICES 55
Exhibit 1: Questionnaire 55

Table of Tables
Table 1: Reliability Statistics 30
Table 2: Age Group 31
Table 3: Frequency of Visit Store 32
Table 4: Assistance in Selecting Products 32
Table 5: Product Selection Issue 33
Table 6: Proper Response of Employees 34
Table 7: Employee Assistance Make Positive Perception 35
Table 8: Increase Checkout Process and Reduce Time 37
Table 9: Increase Assistance in Selecting Products 37
Table of Graphs
Graph 1: Research Onion Framework 22
Graph 2: Gender 31
Graph 3: Issues from Manual Process 33
Graph 4: Effectiveness of Checkout Process 35
Graph 5: Effectiveness of Quality and Time of Service 36

INTRODUCTION
Background
The current environment is passing through the era of technology evolution, which has a significant impact on the business activities almost in all industries in terms of customer satisfaction (USAID, 2013). The technology improvement has increased the expectations of customers from the firm and has become an important aspect for customer satisfaction (USAID, 2013). Jan & Abdullah (2014) depict that technology innovation is an important critical success factor, which has a significant impact on the customer satisfaction. In the retail environment, service delivery is important aspects, which have a significant impact over the customer services in terms of search of alternatives, no waiting for checkout, easy cash payment etc (Technology Advances in Retail, 2012). The increasing use of technology in business operations, communication, and continuous focus over the growth of technical skills and knowledge of the employees has become a priority for the businesses for increasing the service delivery aspects and consequently the customer satisfaction (Ryan, 2014). Technologies are changing very frequently and continuously in retail industries for example, adoption of self- service checkouts system in the organization. Self-service check out system reduces the waiting time of customers and facilitates easy cash payment methods. Only by clicking one button the customers can purchase the product and pay through either Debit or credit cards. Retail industry offers online or digital shopping to the customers with the facility of home delivery; it also has a significant influence on the customer satisfaction and loyalty. A relationship between technology provider and customers is vital and it should be managed efficiently for long-run survival of the business (Sharma, et. al, 2013). A relationship between technology and users not only improves satisfaction, but also helps in fostering effective communication, which is beneficial to increase consumer awareness and convenience for them in purchasing that is effective to increase their satisfaction. Recent developments in information and technology such as social networking sites (Facebook, Twitter), Wikis, blogs and video sharing, enable the organizations to directly interact with the customer and get feedback from them promptly that increases the organizational strategies for service delivery and consequently customer satisfaction (Ray & Nilanjan, 2015). Company Justification

The retail business environment is competitive enough and the success of the retail firms depends on customer satisfaction. Technology innovation and customer satisfaction are the major issues that faced by a retail firm and these issues have significant impact on organizational growth. Tesco is the leading retail firm of UK, which is growing significantly with better customer services and customer base, which is the reason for selecting this firm as context study. At the same time, technology innovation in the business environment of Tesco has increased the customer expectations and requirements for effective service delivery and Tesco is fulfilling them quite significantly (Ray & Nilanjan, 2015). Tesco invested heavily for adopting advance or update technologies in the organization for the ease of customers and for providing effective service delivery. Advance technologies and innovations attract the customers, which is beneficial for the accomplishment of goals or objectives of the organization. Research Rationale:

The research is quite significant in the current business environment due to growing retail industry and the concern of the firms towards the customer satisfaction for being sustainable. This research would be significant for the firms in retail industry to determine the significance of facilitating technological advancements to improve the customer satisfaction. At the same time, this is also important as the technological advancement in the current business environment has increased the customer expectations and consequently requires the changes in the retail organizational strategies for enhancing the customer satisfaction and also their competitiveness in the industry (Gordon, 2007). This research would also be effective for the firms to determine the technologies in the retail business environment, which can be beneficial to improve the organizational services for the customers, which will be significant for the firms in the retail industry to increase their competitiveness (Fabio & Musso, 2014). Along with this, the research would also be effective to contribute in the existing literature as it will provide the current technological developments in retail industry and its impact over the organizational service delivery aspects, which is directly related with the customer satisfaction (Ryan, 2011).The users will be beneficial to determine the relationship between service delivery and customer satisfaction in terms of technology evolutions in the current business environment as it will be effective to increase their understanding for the current environment and consequently identify the change in the expectations of the customers in current technology era. Research Aim & Objectives

The research is aimed to determine the impact of technology evolution on customer satisfaction in service delivery in retail industry. It is because retail industry is the most vulnerable to fail, if the customer services are not much effective to increase the customer satisfaction. In order to achieve this aim, following research objectives would be accomplished: To identify the issues faced by the customers in service delivery of retail firms: In context of Tesco To evaluate the relationship between service delivery and customer satisfaction in retail industry: In context of Tesco To determine the significance of technology improvements in the current retail business environment for service delivery and consequently customer satisfaction improvements: In context of Tesco. Research Question:

In order to attain objectives, research question is as follow: 1. How effective are the technological solutions in service delivery process of retail firms to improve the customer satisfaction? Research Structure

The research study is divided in the following chapters along with the introduction chapter: Literature Review: This chapter covers the theoretical framework for the analysis of research topic by analyzing different journals, scholars and articles to develop better understanding about the research issue. Research Methodology: This includes the processes, methods and approaches undertaken for accomplishing the research along with the justification of methods to ensure reliability and validity of the research results. Data Presentation and Analysis: This chapter includes the presentation and diagrammatic representation of the findings, which are effective to increase the research results understanding. Conclusion and Recommendations: This is the last chapter of the report, which concludes the findings on the basis of research analysis. This also covers some recommendation on the basis of conclusions.

LITERATURE REVIEW
Introduction
Presently, the customer business environment is passing through lot of technology improvements that affects the way company runs its business in the marketplace. This report aims at identifying the influence of technological improvements over customer expectations and satisfaction at marketplace. It mainly deals with key concepts and theories related to the field of research to provide a deep knowledge of the selected topic of report. In addition to this, it includes findings of different articles, journals, research books carried out by other researchers in the same field to gain better understanding of the research problem. Issues of Service Delivery for Customers

In retail industry, service delivery plays a major role to ensure the organizational sustainability and growth. But due to continuous changes in the business environment, there are several issues faced by the firms and customers in service delivery, which also influence the customers and their satisfaction in the industry. According to Subashini & Kavitha (2011), in terms of services delivery at retail firms, customers face qualitative and quantitative issues in retail services. For example, increasing waiting time, time consumption in searching the required products from various products available etc are some of the major issues faced by the customers, which influence their satisfaction in the retail business environment. In similar manner, Nagesh, John & Darek, (2014) define issues in online retailing services related to delay in delivery of the products to the customers and lack of their ability to track the transit of the product, which affect the overall significance of customers’ satisfaction in the retail business environment. Beside of this, Aliza & Mark, (2014) define that increase in waiting time for checkout is the major issue of service delivery faced by the customers, while purchasing at a retail store. According to Aron, Michael & Li, (2013) many retailing organizations use manual processes for checkout and self services for the product selection, which is also a big issue for customers because it causes a delay in the checkout process of the customers as they have to spend their valuable time in queues. Overall, delay and lack of assistance for identifying the products are the major issues faced by the customers in retail environment. Kumar (2005) depict quite differently from the above researchers that the time spend by the consumers in queues to checkout is the major issue associated with the service delivery, which is faced by the firms in retail stores. The manual processes at the retail stores consumes more time of the people to checkout, which creates inconvenience for the customers and causes their dissatisfaction. Ashley & Noble (2014) affirm the views of Kumar (2005) by depicting that customer expect a fast delivery from the frontline employees and lack of their efficiency to complete the checkout process fast affects the quality of service delivery and consequently the customer satisfaction. Luo, et al (2004) also provided the similar views by saying that waiting time is the major reason for customer dissatisfaction and the firms are moving towards changing the process of waiting time, so that customers could be entertained and their satisfaction can be enhanced. Along with this, Cho & Fiorito (2013) define that customers face the problems in searching product at retail stores as the items are not arranged properly or particularly in the shelf and also the lack of staff assistance, which causes inconvenience for them and affect their satisfaction. On the other hand, Roberts (2010) views quite differently from the views of Cho & Fiorito (2013) by depicting that most of the customers face problems with the significance of them with new technology adaptation. It is determined in the research that technology and system capabilities are changing and innovative solutions are growing in the retail business environment to reduce the operational costs and to increase the customer satisfaction. So, the lack of assistance from the staff members due to efforts of the firms towards cost reduction creates obstacles in service delivery and consequently it influence the customer satisfaction negatively. Singh et.al (2012) viewed quite similar from the views of Roberts (2010) by determining that customers also face the problems in choosing the desired products in the retail outlets due to lack of number of service staffs on the basis of the number of customers. At the same time, the retail stores include huge product line in different categories, which also create confusion among the customers for choosing the right product conveniently for their benefits. It is also determined by Subashini & Kavitha (2011) that lack of human interaction is the major problem faced by the customers at the time of using self service systems in the retail stores as there are several customers, who have lack of knowledge and skills and ability to use this system. Berry, et al (2010) depict quite differently from the above researchers by exhibiting that lack of interactive retail services is the major issues faced by the customers. The lack of interaction with the staff for choosing the products and services create an issue in the service delivery as the customers have to spend huge time for shopping and it creates dissatisfaction among them. Vera & Trujillo (2013) determines quite differently from the above views by focusing over the service quality and the perceived value by the customers as the service delivery issues. It is identified in the research study that the lack of consideration on improving service quality and the perceived value for the customers is the major reason for the issue of service delivery among the customers. The firms mainly focus on the quality and price aspects of the products, but they forget the importance of the service aspects and it causes the issues of service delivery and affects the customer satisfaction consequently. Ilagan (2009) views quite differently from the above views ...

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