Introduction:
Overview: Here we discuss about the background, objectives, Background information about Product and justification of the research and also organization of the study. Satisfaction is that it is an emotional response to the use of product and it is also a complex human process which involves cognitive and effective processes as well as other psychological and physiological influences. We have three independent variables that are perceived quality, brand trust and demographic variables and one dependent variable which is customer satisfaction. We try to build up the relationship between independent and dependent variables in this chapter.
1.1: Background of the Research Problem
During the last four decades, satisfaction has been considered as one of the most important theoretical as well as practical issues for most marketers and customers researchers (Journal, 2004). Ho & WO (1999) state the customer satisfaction is a critical issue in the success of any business. To fulfill this goal we need to know the definition of satisfaction by customers. According to Homburg et al, (2006) previous research has recognized that both cognition and affect significantly predict satisfaction. Process definition of satisfaction emphasize on the disconfirmation paradigm and according to that paradigm, customers from expectation to which they compare performance; and this comparison will result in confirmation or disconfirmation (Oliver and Desarbo, 1988). A broad definition of satisfaction is that it is an emotional response to the use of product or service; and it is also a complex human process which involves cognitive and effective processes as well as other psychological and physiological influences (Oliver, 1981). Early concepts of satisfaction research have typically defined satisfaction as post chose evaluation judgment concerning a specific purchase decision (Oliver, 1980; Oliver and Desarbo, 1988).
1.2: Background information about the product
Everything about the brand – from the look and feel of the products and packaging to the subtle fragrances – is a delight to the senses. In fact, Lux has been making waves since 1924, when it launched the world's first mass-market beauty soap at a fraction of the cost of some expensive brands.
● The name Lux means ‘light’ in Latin, however the name was chosen for its play on the word ‘luxury’.
● Lux was first introduced as a toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price.
● From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours.
● In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.
In 2004, the entire Lux range was relaunched in the UK & Ireland to include five shower gels, three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling Morning” shower gels.
● Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux advertisements. Marilyn Monroe, Brigitte Bardot, Demi Moore and, more recently, our own Catherine Zeta-Jones, have all been part of the Lux glamour story.
1.3: Objectives of the study
The main objectives are following
To determine to what extent perceived quality could affect customer satisfaction.
To investigate whether brand trust has significant impact on customer satisfaction.
To find out the impact of demographic variables on the customer satisfaction level towards LUX.
1.4: Justification or significance of the study:
The term customer satisfaction turn on favorable image for gaining more profit, customer satisfaction, much market share on the basis of firm or industry. The study is to find out how brand trust, perceived quality and demographic variables would affect customer satisfaction. Some consumer wishes to get the maximum output by this particular type of product, in fact lux customer also find out what’s their problem for choosing the regarding lux. Aspect of customer satisfaction already has been conducted many kinds of article, journal, magazine, reports in the international perspective. In Bangladesh perspective we would not find any established and significance previous study about customer satisfaction. For this reason we underline this case study to identify how to build up a strong customer satisfaction. With understanding the factors that can affect customer satisfaction, it can help marketers to better understand their market and also help them to better serve the needs and wants of their potential customers.
2.0:Literature Review:
Overview: Literature review is the heart of a research. Customer Satisfaction is important for every organization. In this section at first we mentioned operational definition of independent and dependent variable. Then we will analyze previous study regarding the factors which influenced customer satisfaction. About customer satisfaction a lot of study has been conducted in international perspective. The most common interpretations reflect the notion that satisfaction is a feeling which Results from a process of evaluating what was received against that expected, the purchase a relational study on Perceived quality, Brand trust and Demographic variables decision itself and the fulfillment of needs or want (Armstrong & Kotler, 1996; Berkowitz etal.1999). Kotler (1999) also noted that satisfaction is a function of perceived performance and expectations which identifies feelings of a person resulting from comparing a product’s perceived performance in relation to his or her expectations. Bitner and Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Fe and Ikova (2004) added that the perception of the word "satisfaction" influences the activities which we conduct to achieve it. Researchers have also identified customer satisfaction from a multi dimensional nature and view overall satisfaction as a function of satisfaction with multiple experiences with the service provider (Sureshchandar et al., 2002). A customer satisfaction is the individual’s perception of the performance of the product or service inrelation to his or her expectations (Leon G.Schiffman & Leslie Lazar Kanuk)The relation of customer satisfaction, Perceive quality, Brand trust & Demographic variable.Satisfaction has a significant impact on customer loyalty (Sharma and Patterson, 2000) and, as a direct antecedent, leads to commitment in business relationships (Burnham et al., 2003), thus greatly influencing customer repurchase intention (Morgan and Hunt, 1994). Indeed, the impact of satisfaction on commitment and retention varies in relation to the industry, product or service, environment, etc.
2.1: Customer satisfaction
The most common interpretations reflect the notion that satisfaction is a feeling which
Results from a process of evaluating what was received against that expected, the purchase A relational study on service quality, switching cost, trust, customer satisfaction and customer loyalty decision itself and the fulfillment of needs or want (Armstrong & Kotler, 1996; Berkowitz etal.1999). Kotler (1999) also noted that satisfaction is a function of perceived performance and expectations which identifies feelings of a person resulting from comparing a product’s perceived performance in relation to his or her expectations. Bitner and Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Fe and Ikova (2004) added that the perception of the word "satisfaction" influences the activities which we conduct to achieve it. Researchers have also identified customer satisfaction from a multi dimensional nature and view overall satisfaction as a function of satisfaction with multiple experiences with the service provider (Sureshchandar et al., 2002).
2.2: Perceived quality
Quality can be defined on two dimensions, perceived quality and performance quality. (International marketing 12th edition Cateora & Graham) According to Forker (1991), there are five approaches to define quality and it is used to explore the diverse definitions of quality that had been proposed by various quality experts. Perceived quality is “a special type of association” (Aaker and joahimsthaler, 2000)Perceived quality sometimes fails to mirror actual quality. Here LUX, which unilever says has maintained a strong perceived level of quality even though the brand has placed Hugh in actual metrics for quality. According to the Pearson Mean & Mood conducted between the perceived quality of the product and the consumer satisfaction, significant relationship on a of perceived quality, In other words, it can be determined that on a higher level of perceived quality the consumers' satisfaction is higher, depending on the product with a high level of Quality. When the relationship between the dimensions of quality to satisfaction as a whole is examined, it was found that there are significant positive relationships between the dimensions of perceived quality (product quality, quality of packaging, etc.) and the customer satisfaction. These arguments were strengthened by the findings of the explained Mean & Mood, which show that the value of the variable of the perceived quality has a high significant contribution in the prediction of Customer satisfaction
These findings strengthen the argument that the perceived product quality is not always a measure of satisfaction and it is possible that customers will be satisfaction to different products on a different hierarchy of quality, according to their needs and financial ability.
H 1: There is a relationship between Perceived quality and customer satisfaction.
2.3:Brand Trust
Trust is logically and experientially a critical variable in relationships, as has been
hypothesized and borne out in the marketing literature (Moorman et al., 1993; Morgan and
Hunt, 1994). Those who are not willing to trust a vendor in a competitive marketplace are
unlikely to be loyal. The importance of trust in explaining satisfaction is also supported by author.as Lim et al. (1997), Garbarino and Johnson (1999)Rotter, (1967) defined trust as a generalized expectancy held by an individual that the word of another can be relied on. McAllister (1995) notified trust as the extent to which a person is confidant in, and willing to act on the basis of wards, actions and decision of others and, uniquely in the consumer domain. Chaudhuri and Holbrook (2001) defined trust as the willingness of the average consumer to rely on the ability on the band to perform its stated function. According to Ballester and Aleman (2001) , trust in a person is a feeling of security based on the belief that his/her behavior is guided and motivated by favorable and positive intention towards the welfare and interest of his/her partners. Trust is a state of being develops over time (Curran, Rosen, and surprenant, 1998) Meanwhile, Ravald and Gronroos (1996) consider trust as develop through experience. Rempel, Holmes, and Zanna (1985), also suggested that trust evolves from past experience and prior interaction.
H 2: There is a relationship between brand Trust and customer satisfaction.
2.4: Demographical variables
Demography refers to the vital and measurable statistics of the population.(consumer behavior 9th edition schiffman & kanuk P :68) Demographics, the study of human population in terms of size, density, location, age, gender, race, occupation, and others statistics (Philip kotler@gary Armstrong-page:68).the demographic involved in this study such as age, gender, income level.
Age: Product need and interests often vary with consumer’s age. The range of the respondents is between 10-above 25years.The largest percentage of respondents is 18-30 years which response70 percent and lowest percentage of despondence is below 18 years. Some very few despondences are 30 years above.
Occupation: Occupation can be referred as any sort of professional activities where the individuals engaged themselves in order to earned money and to win bread and lead life hood (World journal of business management). The educational qualification refers to the highest academic degree that has been all ready achieve by the sample respondent ( World journal of business management).
Income label: Income label showing on they bought, seemingly without caution, amassing record levels of debt (Philip kotler@gary Armstrong).
Gender: Gender showing on –the socially constructed concepts of masculinity and femininity; the “appropriate” qualities or characteristics that are expected to accompany each biological sex. (admin.utcp.edu/default.aspx).Refers to the different roles and responsibilities attributed to men and women in society. It does not mean the biological definition of sex as male and female, but also how these biological definitions are constructed in a social context, subject to historical and cultural.
H 3: There is a significant effect of demographic variables on brand trust. There is a significant influence of brand trust on customer satisfaction.
3.0 Methodological Issue
3.1: Research type:
Descriptive analysis
In order to analyze the data we selected descriptive analysis to interpret the mean and mode value. From the mean and mode value for each independent variable we find out how the independent variables influence dependent variable customer loyalty. Through this case study we find out how perceived quality, brand trust and Demographic variable can influence customer satisfaction.
.
3.2 Research design:
And here the research design given below:
Defining the objectives
Method of data collection.
Planning a sample.
Collecting data
Analyzing the data.
3.2.1: Defining the objectives:
Objectives are developed under this research are as follows:
To determine to what extent perceived quality could affect customer satisfaction.
To investigate whether brand trust has significant impact on customer satisfaction.
To find out the impact of demographic variables on the customer satisfaction level towards LUX.
3. 2.2: Methodology for data collection
Here survey and observation by using questionnaire as a research methodology.
It is a careful observation, investigation or inquiry for new facts or systematic effort to explore knowledge about the cellular industry.
Collection of data methods:
For first objective we collected data from interviews and observations by using questionnaire. The second objective, secondary data, interviews, survey and observations are mostly used for data collection. For third objective survey method is used as a data collection method.
3.2.3: Planning a sample.
Sample population
Customer-
Young People (Age group 10 –25Years- Students of Schools, Colleges and Universities.).
People in general (Age group 25 Years and above- Professional People, House wives-guardian level.)
Sampling size –Total 50.At least 25 from each sampling population unit.
Sampling method or procedure- Non probability sample in terms of researcher’s convenience and judgment.
Sampling technique
The sample size of our target respondent’s was 50.Due to time and cost barrier we could not select a big sample size. The percentage of the male respondent was 50% and the percentage of the female respondent was 50%.On the average age of the respondent’s was 21 years old.
In order to collect proper data regarding our study we prepared questionnaire. At the beginning of questionnaire we mentioned demographic characteristics of our respondent regarding our study. In the demographic characteristics we mentioned respondent’s age, education, gender, income level etc. All the questions were structured using six point likert scale. In order to analyze the data at first we find out the mean and mode value under every independent variable. From the mean and mode value we find out whether the independent variables have the impact on dependent variable customer satisfaction.
Questionnaire Design
Question was design to keep an eye on the objectives and after discussing with the relevant personnel. After designing the questionnaire pre testing of the same were carried out. After the pre-test, questionnaire reviewed, redesigned and finalized. Prepared finalized questionnaire set was used for primary data collection.
Types of question: Different types of relevant open response, closed response and also scaling technique questions were set.
3.2.4 Collecting data
Primary data and secondary data both are use here.
Primary information (Data)
The primary data collected through questionnaires to the person related with that customer.
The interviewee asked questions face to face and through telephone.
Different related venues visited to explore any potential guidance that can be helpful for the organization.
Secondary Information (Data)
Project required a base of information to translate the characteristics of the primary research findings into concrete steps to achieve the customer satisfaction of Lux. The following items were amongst the main sources of secondary data.
Published books, articles and other related materials from Unilever.
Published books, articles and other related materials of satiction.
Published information regarding trends and patterns affecting the sector of soap industry.
Relevant Internet sites.
Any relevant periodic, magazines and government publications.
All relevant and practical avenues will be exhausted.
3.2.5: Analysis of the results
Analysis begun with the early information collection and continue until the final report issued. Analysis cantered upon two main subjects. The subject’s were-
• The objectives of the research.
• Converting the finding in a way so that it can be used to achieve those objectives.
Variables:
Dependent Variables: In this study we use only one dependant variable that is customer satisfaction.
Independent Variables: Three independent variables are discussed in this report that is perceived quality, brand trust and demographic variables.
Hypothesis testing
From the theoretical framework we drawn hypothesis. Through this study we find out whether the hypothesis was supported or rejected. After calculating the mean and mode value the questions answer regarding customer satisfaction we find out is there any relationship between Perceived quality and customer satisfaction. If we find any relationship between perceived quality and customer satisfaction then we can say that hypothesis is supported. On the other hand if we don’t find any relationship then we can say that the hypothesis is rejected. In the same way if we find any relationship between brand trust and customer satisfaction then we can say the hypothesis is supported. If we don’t find any relationship between demographic variable and customer satisfaction then we can say the hypothesis is rejected.
Theoretical Framework
The theoretical or conceptual framework refers to the conceptual foundation of the entire research. From theoretical framework we can draw the hypothesis of our research. Here we mention the theoretical framework .Before we mention that in our case study has two variables those are dependent & independent.
Figure1: Independent variable Figure2: Dependent variable
Perceived Quality
Brand Trust
Demographic variable
Customer satisfaction
Fig: The relation between dependent variable and independent variable
Findings and data analysis
In order to find out major findings or to analyze the data we selected descriptive analysis techniques for our study. At first we put the data through excel and find out mean and mode value for each question. After find out mean and mode value for each questions then we will find out the impact of each independent variable to the dependent variable customer satisfaction. We have used likert scale in questionnaire.
Mean and mode value for customer satisfaction
SI
QUESTION Mean Mood
01 I am proud to be a consumer of LUX 4.50 3
02 The price of LUX is competitive 4.8 5
03 I will go on using LUX 5.10 6
04 I am satisfied with current offer of LUX 5.30 5
Mean and mode value for perceived quality
SI
Questions
Mean
Mood
01 The quality of LUX is good 5.00 6
02 The flavors of LUX is good 5.10 5
03 The ingredients are well for Skin 4.50 4
04 The Quality of LUX is good for children skin 5.30 5
05 The package design is good 4.70 5
Mean and mode value for brand Trust
SI Questions Mean Mood
01 LUX in well established brand soap industry 5.00 5
02 Brand influence me to buy a LUX soap 4.80 4
03 The brand quality is major determinant to use LUX 4.50 5
Major findings
In order to find out how much independent variable perceived quality, brand trust and demographic variable influence dependent variable customer satisfaction. We set up Six Scale questions under independent variable .Under each question we find out mean and mode value in order to find out how much independent perceived quality, brand trust and demographic variable influence dependent variable customer satisfaction. We set up Six Scale questions under dependent variable customer satisfaction. The average mean value of questions of perceived quality we found 4.92 and the mode value was 5. According to our Six scaling system it falls under agreeable stage. So it is an important factor of customer satisfaction. We can say that there is a relationship between perceived quality and customer satisfaction. As a result based on our findings we can say that hypothesis one (H1) is supported. In order to increase the number of satisfaction customer of LUX as a manager he or she should consider this independent variable perceived quality take very carefully. Because the more perceived quality full product provides more the customer satisfaction.
Under the independent variable brand trust we set up questions in order to find out how much independent variable brand trust impact dependent variable customer satisfaction. For each of the questions we find out mean and mode value through questionnaire. We found that under independent variable brand trust for questions mean average value is 4.77 and mode value is 5. According to our scaling system it falls under agreeable stage. So it is an important factor of customer loyalty. We can say that there is an impact of brand trust and customer satisfaction. As a result based on our findings we can say that hypothesis two (H2) is supported. In order to increase the number of customer satisfaction of LUX as a manager he or she should consider this independent variable brand trust very care fully.
Findings on Brand Trust
From our case study we also found that brand trust is another important factor that can significantly influence customer satisfaction. As a consequence the individual would fell committed to the brand and would manifest a willingness to pay more for the particular brand. According to our study we found that brand trust have some impact on customer satisfaction. So as a manager he should try to enhance brand trust on LUX. Thus it can enhance the customer satisfaction on LUX in Bangladesh. From the above mentioned discussion it may be conclude that it is very important for the manager to know and consider the factors mentioned in this study perceived quality, brand trust and demographic variable because these three factors are significantly associated with customer satisfaction.
Chapter 5: Managerial implication
Through this case study we found that all of the independent variable Perceived quality brand trust & Demographic Variable have impact on dependent variable customer Satisfaction. Building customer satisfaction is not an easy task to get done. As a manager most importantly the factors that can influence customer Satisfaction have to take into consideration. From our case study we found that independent variable perceived quality can influence dependent variable customer satisfaction. If the Unilever provided more perceived quality product then customer will be more satisfy. So as a manager he should try to increase the perceived quality level on LUX in order to increase the number of satisfy customer. From our findings we can say that perceived quality is very important factor of customer satisfaction a manager must consider this factor carefully. According to our study we found that Brand Trust can influence customer satisfaction. So as a manager he must consider this factor importantly because if the Brand trust of LUX is high then the number of satisfy customer will be increase. So finally we can say that as a manager he should try to improve the Brand trust in order to increase the number of satisfy customer of LUX. And also Demographic Variable is an important factor for customer satisfaction .Customer age to age, gender to gender , Race to Race very they buying behavior and also satisfaction level so as a manager must understand the Demographic variable.
5.1 Conclusion and recommendation
After conducting this case study on LUX soap of unilever in Bangladesh we found that there are a large number of satisfy customers of LUX. But we found that there are some problems of LUX. Through this case study we try to find out how perceived quality, Brand Trust and demographic variable would affect customer satisfaction. Based on our findings now we can recommend the management of Unilever to increase perceived quality and brand trust in order to increase the number of satisfy customer of LUX And also they understand what are the demographic variable affect on customer satisfaction. Three independent variable perceived quality brand trust demographic variable which influence dependent variable customer satisfaction we recommend the managements to consider this three variables carefully in order to increase the number of satisfy customer on LUX of unilever in Bangladesh.
5.2 Limitations of our study:
We face some problems preparing this report. Although we try to best complement as a result minimize the error. Their are some limitation of this report As with most research, this research has also some limitations. As we study semester system so we don’t get proper time for details research. The time and the cost factor was the major limitation of our study. The sample size was too small as a result we couldn’t provide actual scenario about customer satisfaction on Lux. In some case respondent didn’t participate willingly to provide answer regarding our questions due to short time. So it was another major limitation of our study. Primary and Secondary data collected from the sample population could have been inaccurate or important information could have been concealed.
Sometimes respondents are not capable of answering questions because they can’t recollect or have never given attention to what they do and why.
A study on customer Satisfaction on LUX in Bangladesh”
Appendix: Questionnaire design.
The following questions are about the factors that affect customer Satisfaction on “LUX” soap of Unilever in Bangladesh. The main objectives of our study are to find out how Product quality, Brand trust and Demographic Variables influence customer Satisfaction. It will take not more than twenty minute to answer all the questions. There is no write or wrong answer. The questionnaires are divided into four parts. Read all the questions and instructions after that answer all the question sequentially and carefully.
Research Questions:
Part A. Demographic Variables1
(Please tick your answer)
1. Gender?
a) Male b) Female
2. Age?
a) Below 17 b) 18 to 25
c) 26 to 40 d) 40 above
3. Educational qualification?
a) SSC b) HSC
c) Bachelor degree d) others
4. Occupation?
a) Student b) Government service holders
c) Business man d) others
5. Family monthly income?
a) Less then 10,000 b) 10,000 to 19,000
C) 20,000 to 30,000 d) 30,000 above
Part B: Measure satisfaction level on “LUX”.
For this part think about your satisfaction and dissatisfaction factors on “LUX”. Please tick the corresponding number in the box using in the scale from 1 to 6 as given below.
1=Strongly Disagree 2=Disagree 3=Somewhat Disagree
4=Neutral 5=Agree 6=Strongly Agree
SI
QUESTION 1 2 3 4 5 6
01 I am proud to be a consumer of LUX
02 The price of LUX is competitive
03 I will go on using LUX
04 I am satisfied with current offer of LUX
Part C: Measuring perceived quality of LUX
In this part there will some question about Perceive quality of LUX soap. Please read all the questions and answer sequentially. Tick the right answer according your opinion corresponding number shown in the box using the scale from 1 to 6.
1=Strongly Disagree 2=Disagree 3=Somewhat Disagree
4=Neutral 5=Agree 6=Strongly Agree
SI
Questions
1
2
3
4
5
6
01 The quality of LUX is good
02 The flavors of LUX is good
03 The ingredients are well for Skin
04 The Quality of LUX is good for children skin
05 The package design is good
Part D: Brand trust factors of LUX
In this section there will be some questions about branding factors of LUX soap. Read all the questions carefully and answer all the questions sequentially. Please put tick mark in the right answers according your own judgment corresponding number shown in the box using the scale from 1 to 6.
1=Strongly Disagree 2=Disagree Somewhat disagree
4= Neutral 5= Agree 6= Strongly agree
SI Questions 1 2 3 4 5 6
01 LUX in well established brand soap industry
02 Brand influence me to buy a LUX soap
03 The brand quality is major determinant to use LUX
Some other’s information.
6) What types soap do you Use?
a) LUX b) other’s
7) Do you use value addition product?
a) Yes b) No
8) Do you think advertising and promotions are sufficient?
a) Yes b) No
9) What do you think about the market segmentation of LUX?
………………………………………………………………….
10) What types of problem are you face use LUX soap?
……………………………………………………………….
11) Do you think Quality of LUX soap should change?
………………………………………………………………
12) What is your overall satisfaction with LUX?
…………………………………………………………………..
13) How likely or unlikely are you to buy LUX again?
Reference
►Oliver, R.L. (1997). Satisfaction: A Behavioral perspective on the Consumer. Irwin/McGraw-Hill, New. York. N.Y.
► Singh, J. and Sirdeshmukh, D. (2000), “Agency and trust mechanisms in customer
Satisfaction and loyalty judgments”, Journal of the Academy of Marketing Science, Vol. 28 No. 1, pp. 150-67
►Kotler, P. (1997). Marketing Management Analysis, Planning, Implementation and Control (9thEdition). Upper Saddle River, New Jersey, Prentice Hall International.
► McAllister, D.J. (1995). Affecting and cognition based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38, February, 24-59.
► Ravald, A. and Gronroos, C. (1996). The Value Concept and Relationship Marketing, European Journal of Marketing, 30(2), 19-33.
► Leon G.Schiffman & Leslie Lazar Kanuk consumer behavior (10th edition).
► Armstrong & Kotler, marketing management (8th edition).
► Graham & Cateora International marketing (12th edition).
► www.unileve.com.
► Admin.utcp.edu/default.aspx.
► World journal of business management.
► Philip kotler@gary Armstrong.
► Curran, Rosen, and surprenant, 1998.
► Sharma and Patterson, 2000.
► Burnham et al., 2003
► Morgan and Hunt, 1994
► http://www.emeraldinsight.com/10.1108/03090560910989902
► Perceived Quality Study (PQS), from residual values expert Automotive Leasing Guide (ALG).
Overview: Here we discuss about the background, objectives, Background information about Product and justification of the research and also organization of the study. Satisfaction is that it is an emotional response to the use of product and it is also a complex human process which involves cognitive and effective processes as well as other psychological and physiological influences. We have three independent variables that are perceived quality, brand trust and demographic variables and one dependent variable which is customer satisfaction. We try to build up the relationship between independent and dependent variables in this chapter.
1.1: Background of the Research Problem
During the last four decades, satisfaction has been considered as one of the most important theoretical as well as practical issues for most marketers and customers researchers (Journal, 2004). Ho & WO (1999) state the customer satisfaction is a critical issue in the success of any business. To fulfill this goal we need to know the definition of satisfaction by customers. According to Homburg et al, (2006) previous research has recognized that both cognition and affect significantly predict satisfaction. Process definition of satisfaction emphasize on the disconfirmation paradigm and according to that paradigm, customers from expectation to which they compare performance; and this comparison will result in confirmation or disconfirmation (Oliver and Desarbo, 1988). A broad definition of satisfaction is that it is an emotional response to the use of product or service; and it is also a complex human process which involves cognitive and effective processes as well as other psychological and physiological influences (Oliver, 1981). Early concepts of satisfaction research have typically defined satisfaction as post chose evaluation judgment concerning a specific purchase decision (Oliver, 1980; Oliver and Desarbo, 1988).
1.2: Background information about the product
Everything about the brand – from the look and feel of the products and packaging to the subtle fragrances – is a delight to the senses. In fact, Lux has been making waves since 1924, when it launched the world's first mass-market beauty soap at a fraction of the cost of some expensive brands.
● The name Lux means ‘light’ in Latin, however the name was chosen for its play on the word ‘luxury’.
● Lux was first introduced as a toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price.
● From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours.
● In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.
In 2004, the entire Lux range was relaunched in the UK & Ireland to include five shower gels, three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling Morning” shower gels.
● Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux advertisements. Marilyn Monroe, Brigitte Bardot, Demi Moore and, more recently, our own Catherine Zeta-Jones, have all been part of the Lux glamour story.
1.3: Objectives of the study
The main objectives are following
To determine to what extent perceived quality could affect customer satisfaction.
To investigate whether brand trust has significant impact on customer satisfaction.
To find out the impact of demographic variables on the customer satisfaction level towards LUX.
1.4: Justification or significance of the study:
The term customer satisfaction turn on favorable image for gaining more profit, customer satisfaction, much market share on the basis of firm or industry. The study is to find out how brand trust, perceived quality and demographic variables would affect customer satisfaction. Some consumer wishes to get the maximum output by this particular type of product, in fact lux customer also find out what’s their problem for choosing the regarding lux. Aspect of customer satisfaction already has been conducted many kinds of article, journal, magazine, reports in the international perspective. In Bangladesh perspective we would not find any established and significance previous study about customer satisfaction. For this reason we underline this case study to identify how to build up a strong customer satisfaction. With understanding the factors that can affect customer satisfaction, it can help marketers to better understand their market and also help them to better serve the needs and wants of their potential customers.
2.0:Literature Review:
Overview: Literature review is the heart of a research. Customer Satisfaction is important for every organization. In this section at first we mentioned operational definition of independent and dependent variable. Then we will analyze previous study regarding the factors which influenced customer satisfaction. About customer satisfaction a lot of study has been conducted in international perspective. The most common interpretations reflect the notion that satisfaction is a feeling which Results from a process of evaluating what was received against that expected, the purchase a relational study on Perceived quality, Brand trust and Demographic variables decision itself and the fulfillment of needs or want (Armstrong & Kotler, 1996; Berkowitz etal.1999). Kotler (1999) also noted that satisfaction is a function of perceived performance and expectations which identifies feelings of a person resulting from comparing a product’s perceived performance in relation to his or her expectations. Bitner and Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Fe and Ikova (2004) added that the perception of the word "satisfaction" influences the activities which we conduct to achieve it. Researchers have also identified customer satisfaction from a multi dimensional nature and view overall satisfaction as a function of satisfaction with multiple experiences with the service provider (Sureshchandar et al., 2002). A customer satisfaction is the individual’s perception of the performance of the product or service inrelation to his or her expectations (Leon G.Schiffman & Leslie Lazar Kanuk)The relation of customer satisfaction, Perceive quality, Brand trust & Demographic variable.Satisfaction has a significant impact on customer loyalty (Sharma and Patterson, 2000) and, as a direct antecedent, leads to commitment in business relationships (Burnham et al., 2003), thus greatly influencing customer repurchase intention (Morgan and Hunt, 1994). Indeed, the impact of satisfaction on commitment and retention varies in relation to the industry, product or service, environment, etc.
2.1: Customer satisfaction
The most common interpretations reflect the notion that satisfaction is a feeling which
Results from a process of evaluating what was received against that expected, the purchase A relational study on service quality, switching cost, trust, customer satisfaction and customer loyalty decision itself and the fulfillment of needs or want (Armstrong & Kotler, 1996; Berkowitz etal.1999). Kotler (1999) also noted that satisfaction is a function of perceived performance and expectations which identifies feelings of a person resulting from comparing a product’s perceived performance in relation to his or her expectations. Bitner and Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Fe and Ikova (2004) added that the perception of the word "satisfaction" influences the activities which we conduct to achieve it. Researchers have also identified customer satisfaction from a multi dimensional nature and view overall satisfaction as a function of satisfaction with multiple experiences with the service provider (Sureshchandar et al., 2002).
2.2: Perceived quality
Quality can be defined on two dimensions, perceived quality and performance quality. (International marketing 12th edition Cateora & Graham) According to Forker (1991), there are five approaches to define quality and it is used to explore the diverse definitions of quality that had been proposed by various quality experts. Perceived quality is “a special type of association” (Aaker and joahimsthaler, 2000)Perceived quality sometimes fails to mirror actual quality. Here LUX, which unilever says has maintained a strong perceived level of quality even though the brand has placed Hugh in actual metrics for quality. According to the Pearson Mean & Mood conducted between the perceived quality of the product and the consumer satisfaction, significant relationship on a of perceived quality, In other words, it can be determined that on a higher level of perceived quality the consumers' satisfaction is higher, depending on the product with a high level of Quality. When the relationship between the dimensions of quality to satisfaction as a whole is examined, it was found that there are significant positive relationships between the dimensions of perceived quality (product quality, quality of packaging, etc.) and the customer satisfaction. These arguments were strengthened by the findings of the explained Mean & Mood, which show that the value of the variable of the perceived quality has a high significant contribution in the prediction of Customer satisfaction
These findings strengthen the argument that the perceived product quality is not always a measure of satisfaction and it is possible that customers will be satisfaction to different products on a different hierarchy of quality, according to their needs and financial ability.
H 1: There is a relationship between Perceived quality and customer satisfaction.
2.3:Brand Trust
Trust is logically and experientially a critical variable in relationships, as has been
hypothesized and borne out in the marketing literature (Moorman et al., 1993; Morgan and
Hunt, 1994). Those who are not willing to trust a vendor in a competitive marketplace are
unlikely to be loyal. The importance of trust in explaining satisfaction is also supported by author.as Lim et al. (1997), Garbarino and Johnson (1999)Rotter, (1967) defined trust as a generalized expectancy held by an individual that the word of another can be relied on. McAllister (1995) notified trust as the extent to which a person is confidant in, and willing to act on the basis of wards, actions and decision of others and, uniquely in the consumer domain. Chaudhuri and Holbrook (2001) defined trust as the willingness of the average consumer to rely on the ability on the band to perform its stated function. According to Ballester and Aleman (2001) , trust in a person is a feeling of security based on the belief that his/her behavior is guided and motivated by favorable and positive intention towards the welfare and interest of his/her partners. Trust is a state of being develops over time (Curran, Rosen, and surprenant, 1998) Meanwhile, Ravald and Gronroos (1996) consider trust as develop through experience. Rempel, Holmes, and Zanna (1985), also suggested that trust evolves from past experience and prior interaction.
H 2: There is a relationship between brand Trust and customer satisfaction.
2.4: Demographical variables
Demography refers to the vital and measurable statistics of the population.(consumer behavior 9th edition schiffman & kanuk P :68) Demographics, the study of human population in terms of size, density, location, age, gender, race, occupation, and others statistics (Philip kotler@gary Armstrong-page:68).the demographic involved in this study such as age, gender, income level.
Age: Product need and interests often vary with consumer’s age. The range of the respondents is between 10-above 25years.The largest percentage of respondents is 18-30 years which response70 percent and lowest percentage of despondence is below 18 years. Some very few despondences are 30 years above.
Occupation: Occupation can be referred as any sort of professional activities where the individuals engaged themselves in order to earned money and to win bread and lead life hood (World journal of business management). The educational qualification refers to the highest academic degree that has been all ready achieve by the sample respondent ( World journal of business management).
Income label: Income label showing on they bought, seemingly without caution, amassing record levels of debt (Philip kotler@gary Armstrong).
Gender: Gender showing on –the socially constructed concepts of masculinity and femininity; the “appropriate” qualities or characteristics that are expected to accompany each biological sex. (admin.utcp.edu/default.aspx).Refers to the different roles and responsibilities attributed to men and women in society. It does not mean the biological definition of sex as male and female, but also how these biological definitions are constructed in a social context, subject to historical and cultural.
H 3: There is a significant effect of demographic variables on brand trust. There is a significant influence of brand trust on customer satisfaction.
3.0 Methodological Issue
3.1: Research type:
Descriptive analysis
In order to analyze the data we selected descriptive analysis to interpret the mean and mode value. From the mean and mode value for each independent variable we find out how the independent variables influence dependent variable customer loyalty. Through this case study we find out how perceived quality, brand trust and Demographic variable can influence customer satisfaction.
.
3.2 Research design:
And here the research design given below:
Defining the objectives
Method of data collection.
Planning a sample.
Collecting data
Analyzing the data.
3.2.1: Defining the objectives:
Objectives are developed under this research are as follows:
To determine to what extent perceived quality could affect customer satisfaction.
To investigate whether brand trust has significant impact on customer satisfaction.
To find out the impact of demographic variables on the customer satisfaction level towards LUX.
3. 2.2: Methodology for data collection
Here survey and observation by using questionnaire as a research methodology.
It is a careful observation, investigation or inquiry for new facts or systematic effort to explore knowledge about the cellular industry.
Collection of data methods:
For first objective we collected data from interviews and observations by using questionnaire. The second objective, secondary data, interviews, survey and observations are mostly used for data collection. For third objective survey method is used as a data collection method.
3.2.3: Planning a sample.
Sample population
Customer-
Young People (Age group 10 –25Years- Students of Schools, Colleges and Universities.).
People in general (Age group 25 Years and above- Professional People, House wives-guardian level.)
Sampling size –Total 50.At least 25 from each sampling population unit.
Sampling method or procedure- Non probability sample in terms of researcher’s convenience and judgment.
Sampling technique
The sample size of our target respondent’s was 50.Due to time and cost barrier we could not select a big sample size. The percentage of the male respondent was 50% and the percentage of the female respondent was 50%.On the average age of the respondent’s was 21 years old.
In order to collect proper data regarding our study we prepared questionnaire. At the beginning of questionnaire we mentioned demographic characteristics of our respondent regarding our study. In the demographic characteristics we mentioned respondent’s age, education, gender, income level etc. All the questions were structured using six point likert scale. In order to analyze the data at first we find out the mean and mode value under every independent variable. From the mean and mode value we find out whether the independent variables have the impact on dependent variable customer satisfaction.
Questionnaire Design
Question was design to keep an eye on the objectives and after discussing with the relevant personnel. After designing the questionnaire pre testing of the same were carried out. After the pre-test, questionnaire reviewed, redesigned and finalized. Prepared finalized questionnaire set was used for primary data collection.
Types of question: Different types of relevant open response, closed response and also scaling technique questions were set.
3.2.4 Collecting data
Primary data and secondary data both are use here.
Primary information (Data)
The primary data collected through questionnaires to the person related with that customer.
The interviewee asked questions face to face and through telephone.
Different related venues visited to explore any potential guidance that can be helpful for the organization.
Secondary Information (Data)
Project required a base of information to translate the characteristics of the primary research findings into concrete steps to achieve the customer satisfaction of Lux. The following items were amongst the main sources of secondary data.
Published books, articles and other related materials from Unilever.
Published books, articles and other related materials of satiction.
Published information regarding trends and patterns affecting the sector of soap industry.
Relevant Internet sites.
Any relevant periodic, magazines and government publications.
All relevant and practical avenues will be exhausted.
3.2.5: Analysis of the results
Analysis begun with the early information collection and continue until the final report issued. Analysis cantered upon two main subjects. The subject’s were-
• The objectives of the research.
• Converting the finding in a way so that it can be used to achieve those objectives.
Variables:
Dependent Variables: In this study we use only one dependant variable that is customer satisfaction.
Independent Variables: Three independent variables are discussed in this report that is perceived quality, brand trust and demographic variables.
Hypothesis testing
From the theoretical framework we drawn hypothesis. Through this study we find out whether the hypothesis was supported or rejected. After calculating the mean and mode value the questions answer regarding customer satisfaction we find out is there any relationship between Perceived quality and customer satisfaction. If we find any relationship between perceived quality and customer satisfaction then we can say that hypothesis is supported. On the other hand if we don’t find any relationship then we can say that the hypothesis is rejected. In the same way if we find any relationship between brand trust and customer satisfaction then we can say the hypothesis is supported. If we don’t find any relationship between demographic variable and customer satisfaction then we can say the hypothesis is rejected.
Theoretical Framework
The theoretical or conceptual framework refers to the conceptual foundation of the entire research. From theoretical framework we can draw the hypothesis of our research. Here we mention the theoretical framework .Before we mention that in our case study has two variables those are dependent & independent.
Figure1: Independent variable Figure2: Dependent variable
Perceived Quality
Brand Trust
Demographic variable
Customer satisfaction
Fig: The relation between dependent variable and independent variable
Findings and data analysis
In order to find out major findings or to analyze the data we selected descriptive analysis techniques for our study. At first we put the data through excel and find out mean and mode value for each question. After find out mean and mode value for each questions then we will find out the impact of each independent variable to the dependent variable customer satisfaction. We have used likert scale in questionnaire.
Mean and mode value for customer satisfaction
SI
QUESTION Mean Mood
01 I am proud to be a consumer of LUX 4.50 3
02 The price of LUX is competitive 4.8 5
03 I will go on using LUX 5.10 6
04 I am satisfied with current offer of LUX 5.30 5
Mean and mode value for perceived quality
SI
Questions
Mean
Mood
01 The quality of LUX is good 5.00 6
02 The flavors of LUX is good 5.10 5
03 The ingredients are well for Skin 4.50 4
04 The Quality of LUX is good for children skin 5.30 5
05 The package design is good 4.70 5
Mean and mode value for brand Trust
SI Questions Mean Mood
01 LUX in well established brand soap industry 5.00 5
02 Brand influence me to buy a LUX soap 4.80 4
03 The brand quality is major determinant to use LUX 4.50 5
Major findings
In order to find out how much independent variable perceived quality, brand trust and demographic variable influence dependent variable customer satisfaction. We set up Six Scale questions under independent variable .Under each question we find out mean and mode value in order to find out how much independent perceived quality, brand trust and demographic variable influence dependent variable customer satisfaction. We set up Six Scale questions under dependent variable customer satisfaction. The average mean value of questions of perceived quality we found 4.92 and the mode value was 5. According to our Six scaling system it falls under agreeable stage. So it is an important factor of customer satisfaction. We can say that there is a relationship between perceived quality and customer satisfaction. As a result based on our findings we can say that hypothesis one (H1) is supported. In order to increase the number of satisfaction customer of LUX as a manager he or she should consider this independent variable perceived quality take very carefully. Because the more perceived quality full product provides more the customer satisfaction.
Under the independent variable brand trust we set up questions in order to find out how much independent variable brand trust impact dependent variable customer satisfaction. For each of the questions we find out mean and mode value through questionnaire. We found that under independent variable brand trust for questions mean average value is 4.77 and mode value is 5. According to our scaling system it falls under agreeable stage. So it is an important factor of customer loyalty. We can say that there is an impact of brand trust and customer satisfaction. As a result based on our findings we can say that hypothesis two (H2) is supported. In order to increase the number of customer satisfaction of LUX as a manager he or she should consider this independent variable brand trust very care fully.
Findings on Brand Trust
From our case study we also found that brand trust is another important factor that can significantly influence customer satisfaction. As a consequence the individual would fell committed to the brand and would manifest a willingness to pay more for the particular brand. According to our study we found that brand trust have some impact on customer satisfaction. So as a manager he should try to enhance brand trust on LUX. Thus it can enhance the customer satisfaction on LUX in Bangladesh. From the above mentioned discussion it may be conclude that it is very important for the manager to know and consider the factors mentioned in this study perceived quality, brand trust and demographic variable because these three factors are significantly associated with customer satisfaction.
Chapter 5: Managerial implication
Through this case study we found that all of the independent variable Perceived quality brand trust & Demographic Variable have impact on dependent variable customer Satisfaction. Building customer satisfaction is not an easy task to get done. As a manager most importantly the factors that can influence customer Satisfaction have to take into consideration. From our case study we found that independent variable perceived quality can influence dependent variable customer satisfaction. If the Unilever provided more perceived quality product then customer will be more satisfy. So as a manager he should try to increase the perceived quality level on LUX in order to increase the number of satisfy customer. From our findings we can say that perceived quality is very important factor of customer satisfaction a manager must consider this factor carefully. According to our study we found that Brand Trust can influence customer satisfaction. So as a manager he must consider this factor importantly because if the Brand trust of LUX is high then the number of satisfy customer will be increase. So finally we can say that as a manager he should try to improve the Brand trust in order to increase the number of satisfy customer of LUX. And also Demographic Variable is an important factor for customer satisfaction .Customer age to age, gender to gender , Race to Race very they buying behavior and also satisfaction level so as a manager must understand the Demographic variable.
5.1 Conclusion and recommendation
After conducting this case study on LUX soap of unilever in Bangladesh we found that there are a large number of satisfy customers of LUX. But we found that there are some problems of LUX. Through this case study we try to find out how perceived quality, Brand Trust and demographic variable would affect customer satisfaction. Based on our findings now we can recommend the management of Unilever to increase perceived quality and brand trust in order to increase the number of satisfy customer of LUX And also they understand what are the demographic variable affect on customer satisfaction. Three independent variable perceived quality brand trust demographic variable which influence dependent variable customer satisfaction we recommend the managements to consider this three variables carefully in order to increase the number of satisfy customer on LUX of unilever in Bangladesh.
5.2 Limitations of our study:
We face some problems preparing this report. Although we try to best complement as a result minimize the error. Their are some limitation of this report As with most research, this research has also some limitations. As we study semester system so we don’t get proper time for details research. The time and the cost factor was the major limitation of our study. The sample size was too small as a result we couldn’t provide actual scenario about customer satisfaction on Lux. In some case respondent didn’t participate willingly to provide answer regarding our questions due to short time. So it was another major limitation of our study. Primary and Secondary data collected from the sample population could have been inaccurate or important information could have been concealed.
Sometimes respondents are not capable of answering questions because they can’t recollect or have never given attention to what they do and why.
A study on customer Satisfaction on LUX in Bangladesh”
Appendix: Questionnaire design.
The following questions are about the factors that affect customer Satisfaction on “LUX” soap of Unilever in Bangladesh. The main objectives of our study are to find out how Product quality, Brand trust and Demographic Variables influence customer Satisfaction. It will take not more than twenty minute to answer all the questions. There is no write or wrong answer. The questionnaires are divided into four parts. Read all the questions and instructions after that answer all the question sequentially and carefully.
Research Questions:
Part A. Demographic Variables1
(Please tick your answer)
1. Gender?
a) Male b) Female
2. Age?
a) Below 17 b) 18 to 25
c) 26 to 40 d) 40 above
3. Educational qualification?
a) SSC b) HSC
c) Bachelor degree d) others
4. Occupation?
a) Student b) Government service holders
c) Business man d) others
5. Family monthly income?
a) Less then 10,000 b) 10,000 to 19,000
C) 20,000 to 30,000 d) 30,000 above
Part B: Measure satisfaction level on “LUX”.
For this part think about your satisfaction and dissatisfaction factors on “LUX”. Please tick the corresponding number in the box using in the scale from 1 to 6 as given below.
1=Strongly Disagree 2=Disagree 3=Somewhat Disagree
4=Neutral 5=Agree 6=Strongly Agree
SI
QUESTION 1 2 3 4 5 6
01 I am proud to be a consumer of LUX
02 The price of LUX is competitive
03 I will go on using LUX
04 I am satisfied with current offer of LUX
Part C: Measuring perceived quality of LUX
In this part there will some question about Perceive quality of LUX soap. Please read all the questions and answer sequentially. Tick the right answer according your opinion corresponding number shown in the box using the scale from 1 to 6.
1=Strongly Disagree 2=Disagree 3=Somewhat Disagree
4=Neutral 5=Agree 6=Strongly Agree
SI
Questions
1
2
3
4
5
6
01 The quality of LUX is good
02 The flavors of LUX is good
03 The ingredients are well for Skin
04 The Quality of LUX is good for children skin
05 The package design is good
Part D: Brand trust factors of LUX
In this section there will be some questions about branding factors of LUX soap. Read all the questions carefully and answer all the questions sequentially. Please put tick mark in the right answers according your own judgment corresponding number shown in the box using the scale from 1 to 6.
1=Strongly Disagree 2=Disagree Somewhat disagree
4= Neutral 5= Agree 6= Strongly agree
SI Questions 1 2 3 4 5 6
01 LUX in well established brand soap industry
02 Brand influence me to buy a LUX soap
03 The brand quality is major determinant to use LUX
Some other’s information.
6) What types soap do you Use?
a) LUX b) other’s
7) Do you use value addition product?
a) Yes b) No
8) Do you think advertising and promotions are sufficient?
a) Yes b) No
9) What do you think about the market segmentation of LUX?
………………………………………………………………….
10) What types of problem are you face use LUX soap?
……………………………………………………………….
11) Do you think Quality of LUX soap should change?
………………………………………………………………
12) What is your overall satisfaction with LUX?
…………………………………………………………………..
13) How likely or unlikely are you to buy LUX again?
Reference
►Oliver, R.L. (1997). Satisfaction: A Behavioral perspective on the Consumer. Irwin/McGraw-Hill, New. York. N.Y.
► Singh, J. and Sirdeshmukh, D. (2000), “Agency and trust mechanisms in customer
Satisfaction and loyalty judgments”, Journal of the Academy of Marketing Science, Vol. 28 No. 1, pp. 150-67
►Kotler, P. (1997). Marketing Management Analysis, Planning, Implementation and Control (9thEdition). Upper Saddle River, New Jersey, Prentice Hall International.
► McAllister, D.J. (1995). Affecting and cognition based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38, February, 24-59.
► Ravald, A. and Gronroos, C. (1996). The Value Concept and Relationship Marketing, European Journal of Marketing, 30(2), 19-33.
► Leon G.Schiffman & Leslie Lazar Kanuk consumer behavior (10th edition).
► Armstrong & Kotler, marketing management (8th edition).
► Graham & Cateora International marketing (12th edition).
► www.unileve.com.
► Admin.utcp.edu/default.aspx.
► World journal of business management.
► Philip kotler@gary Armstrong.
► Curran, Rosen, and surprenant, 1998.
► Sharma and Patterson, 2000.
► Burnham et al., 2003
► Morgan and Hunt, 1994
► http://www.emeraldinsight.com/10.1108/03090560910989902
► Perceived Quality Study (PQS), from residual values expert Automotive Leasing Guide (ALG).
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