Texila International Journal of Management
ISSN: 2520-310X
DOI: 10.21522/TIJMG.2015.08.01.Art001
Customer Satisfaction in the Retail Sector of Botswana
Misani Sephetsolo
Ph.D. in Management, Texila American University, Botswana, Gaborone
Abstract
This paper examined the level of customer satisfaction within the retail sector of Botswana. In
making this examination, the paper utilised the large retail chain stores, specifically, Choppies, PnP,
Shoprite, and Spar, within Gaborone. This means that this paper undertook a survey concentrating on
4 retail giants in Botswana from which a sample of 750 customers was sampled using convenience
sampling for participation in the study. The findings from this study show that the level of customer
satisfaction in Botswana was good (rating score = 3.87/5). The significant contributors to customer
satisfaction were gender, product quality, product diversity, pricing, responsiveness, design and
appearance, and customer experience. The paper recommended that retailers focus on strategic pricing
for enhanced customer satisfaction in the sector, adopt quality and diversity-centric policies, and adopt
robust customer knowledge management and customer experience management.
Keywords: Age, Appearance, Customer service, Customer experience, Customer satisfaction, Design,
Gender, Location, Product quality, Pricing, Product diversity, Responsiveness.
Introduction
experience and the creation of value for the
customers [4].
The retail sector is one of the many business
sectors whose success is predicated not only on
its ability to offer goods and services to the
customers but also on its ability to satisfy the
diverse needs of the customers [5]. In this regard,
the retail sector exists to offer goods and services
and do so in a satisfactory manner which in
essence means that the success of players within
the sector rests on the ability of the retailers to
offer optimal customer satisfaction [6]. While
the food and grocery retailing sector is part of the
fast-moving consumer goods (FMCG) sector, it
is essential to underscore that globally, the sector
is highly competitive, and survival is service
delivery and customer satisfaction based [7].
Effective service delivery within the FMCG
sector depends on how the retailers understand
their customers' needs and satisfactorily deliver
on them based on their level and quality of
customer knowledge [8].
The global business community has, in the
recent past, revolutionized the extent to which
organizations currently concern themselves with
issues around going concerned first before
growth and profitability [1]. With this in mind,
service organizations across the geographical
and sectoral divide can differentiate themselves
from their competitors based on the quality of
the service they deliver [2].
A Study [3] argues that customer satisfaction
and quality of service delivery are twin paths
when it comes to creating value for both the
organization and the customers. The author
observed that a retailing organization that offers
poor quality of service risks losing its credibility
and erodes its confidence in the eyes of the
customers. The impact of this is reflected in the
poor customer satisfaction returns. While the
retailers are concerned with offering goods and
services to their diverse customers, their survival
and profitability are tied to the customer
Received: 17.09.2021
Accepted: 14.11.2021
Published on: 28.02.2022
Corresponding Author:
[email protected]
1
H4: Product diversity has a statistically
significant impact on the level of customer
satisfaction.
H5: Product pricing has a statistically
significant impact on the level of customer
satisfaction.
H6: Responsiveness of the organization has a
statistically significant impact on the level of
customer satisfaction.
H7: The location of the retail outlets has a
statistically significant impact on the level of
customer satisfaction.
H8: Physical design and appearance of the
retail outlet have a statistically significant impact
on the level of customer satisfaction.
H9: Customer experience has a statistically
significant impact on the level of customer
satisfaction.
Therefore, the retail sector is such that the
retailing organizations capitalize on their
relationships with their clients, which is a
function of the level of customer experience and
the subsequent level of customer satisfaction [8].
In the context of Botswana, retailing is
regarded as the second largest provider of
employment after the mining sector and, in the
same
manner,
contributes
significantly
(approximately 29%) to the country’s GDP [9].
In this regard, approximately 40.5% of the
informal sector businesses in Botswana are
found within the retail and wholesale trade [10].
The dominant players within the country’s
FCMG food and groceries sector are large retail
chain supermarkets such as Pick n Pay,
Choppies, Shoprite, Spar, Woolworths, and
Game. These jointly control a significant portion
of the market. In this study, the level of customer
satisfaction was assessed using customers within
the significant chain retail stores of Botswana,
given the geographical presence and the size of
the market that these control.
Literature Review
theoretical Framework
This resource-based theory is the theoretical
foundation anchoring this study. According to
[11], the resource-based theory argues that
possessing strategic resources provides an
organization with a golden opportunity to
develop competitive advantages over its rivals.
These competitive advantages, in turn, can help
the organization enjoy significant profits.
According to [12], a strategic resource is an asset
that is valuable, rare, difficult to imitate and has
no substitutable. A resource is valuable to the
extent that it helps a firm create strategies that
capitalize on opportunities and ward off threats.
[11] posit that firms align their resources, skills,
and expertise into core competence to gain a
competitive edge against their competitors. Core
competencies, in this case, are the activities that
an organization does better than its competitors
[13]. These core competencies can include how
well an organization can adapt to technological
changes and advancement in ICT to further its
service delivery. A strategy acts as an integral
part of the firm’s goals and objectives; strategy
serves as a plan of action that links together with
an organization’s key goals, policies, and action
The objectives of this study were:
1. To determine the level of customer
satisfaction in Botswana’s FMCG food and
groceries sector.
2. To examine the correlation between
customer satisfaction factors and customer
experience and customer satisfaction.
3. To evaluate the impact of customer
experience on customer satisfaction.
4. To examine the impact of customer
satisfaction factors on customer satisfaction.
To respond to the above research objectives,
the following research hypotheses were tested:
H1: The gender of the customers has a
statistically significant impact on the level of
customer satisfaction.
H2: The age of the customers has a
statistically significant impact on the level of
customer satisfaction.
H3: Product quality has a statistically
significant impact on the level of customer
satisfaction.
2
customers’ needs are the foundations of service
delivery as they are deterministic of what
precisely the organization needs to do and how
exactly it will do it as expected by the customers
[14].
According to [15], customer service is the
provision of services to the organization’s clients
in the period leading up to the service’s sale,
during the sale, and after the sale of a service. In
the context of this definition, [15] argues that
customer service is that which an organization
does in the form of such acts as giving customers
due to attention, providing responses to
questions, providing the customers with as much
information as is necessary about the services
they are interested in and offering service
support post the sale of a service to the
customers. This entails that customer service is
not only defined narrowly by the acts that are
done in the transactional offering of service in
exchange for revenue but rather, meeting the
needs of the customers before the intention to
buy the services is made to such a time that is
beyond the sale of the service to the customer
[15].
A Study [16] defines customer service as the
acts of an organization and all the initiatives that
an organization engages in with a view to
anticipate, meet and satisfy the needs of their
customers. This entails that customer service is
an intimate process through which the
organization can understand what their customer
wants, how they want it, how much of it they
want, and how often they want it [16]. Having
understood the customers' needs, the
organization then deliberately offers to the
customers exactly what they want in response to
their needs in the manner that they wish to satisfy
the needs and expectations of the customers.
This translates that customer service is relational
and not entirely transactional because it is only
when the customers’ needs are met that the
service provider can begin to realize growth in
revenue as a by-product, meeting the customers
at their point of appetite [16].
sequences towards achieving the vision and the
vision.
A well-aligned strategy to the organization’s
goals and objectives plays an essential role in
assembling and allocating an organization’s
resources into a viable setting based on the
organizational
capabilities,
external
environment, and contingent moves by their
competitors. [11] defines a strategy as a plan of
action designed to achieve specific goals and
objectives. The supporters of this theory [8]
argue that the firm consists of an internal and
external coalition that emanates from the social
exchanges that are formed to enhance and
control behavior.
The external environment consists of scarce
and valued resources that are key for
organizational survival. This is because of the
uncertainty involved in the external environment
in resource acquisition. The relevance of this
theory is that the FMCG operating environment
is dynamic; risks and uncertainties characterize
due to changes in the external environment. This
necessitates adopting strategies to counter
challenges in the external environment.
According to [3], organizations aim to achieve
two key objectives: control over resources to
reduce dependence on other firms and gain
control over resources that enhance the
dependence of other firms on themselves. In this
regard, the organization can align all its
resources to gain a competitive advantage
through effective and reliable service delivery.
Customer Service
Customer service defines the actions of an
organization in establishing the customers’
needs and tailoring the organization’s initiatives
to deliberately address the identified needs of the
customers satisfactorily and profitably [14]. It
was the view by [14] that the notion that
customer service was all about ensuring that the
organization generates sales and recognizes
sales revenue was misguided if the spirit behind
making sales was outside the prism of meeting
the customers’ needs. In this regard, the
3
Customer Experience
representing the organization; they have the
propensity to assess what they expected to come
out of the interaction and what they realized
from the exchange. In line with this view, [19]
defines customer experience as the difference
between what the customers are expected to
experience and what they perceive to have
actualized from their interactions with their
service providers. Similarly, [20] argues that
customer experience is an expression of the
outcome of the interactions between the
organization, their services, and their customers
as assessed through the net effect of customers’
expectations and perceptions. In the same
manner, [21] mapped an illustration as a way to
define the concept of customer experience, and
this is shown in Figure 1 below:
Customer experience refers to the outcome of
the interactions between the organization, the
customer, and the services offered by the
organizations and the value created as a result of
such interactions and the customer purchase
behavior [17]. This means that customer
experience defines the outcome from the
rational, sensory, emotional, physical, and
spiritual interactions between the organization
and its customers. The customers can have an indepth appreciation and experience of the value
each of their transactional relationships with the
organization brings [18].
[19] Each time a customer receives services
from an organization o interacts with any agent
Figure 1. Illustration of Customer Experience
Source: Miller, L. E, Handling nonresponse issues’ (2016)
As shown in Figure 1, customer experience is
an expression of the difference between the
organization’s value proposition to the
customers and the value perception of the
customers from the services that the organization
renders to the customers [21]. What this means
is that when an organization makes a promise to
the customer of the value that the services
rendered by the organization will deliver to the
customer, customer experience is an expression
of the assessment of the value proposition as
measured against the perceived value received
by the customers [22].
As further illustrated in Figure 1, customer
experience is expressed in terms of value
expectation and value realization. In this regard,
[21] defines customer experience as being the
net between the value expectation of the
customer and the value that they realize. This
definition of customer experience is again an
expression of the difference between the value
that the customer expects to learn and the value
that they recognize. In line with this argument,
4
where the value realized by the customer is
higher than the value expectation, this translates
to a positive customer experience; if the
expectation is higher than the value realization,
the customer experience is said to be negative in
that instance [21].
The overarching objective of any
organization that desires to attract new
customers and retain them is to give their
customers a significantly positive customer
experience [23]. To achieve this, the
organization must strategically initiate processes
to ensure that the customers’ expectations are
exceeded at each of their interactions with the
organization, its services, and its employees
[13].
the perceived performance in contrast to the
customer’s expectation standards. On the other
hand, the affectionate aspect of satisfaction
describes the emotional elements born out of the
actual service experience, such as happiness,
disappointment, and surprise [26].
Customer satisfaction is the resultant attitude
arising from the comparative assessment of the
performance of the service providers and the
perceived quality expectations in terms of the
fulfillment of the customers’ desires, goals, and
needs [28]. This contrasts with the view of [11],
who argued that customer satisfaction is an
unobservable,
transaction-specific
latent
variable. Similarly, [29] argued that customer
satisfaction represents
the experiences,
reactions, and emotions of a customer ensuant to
the service delivery by their service provider.
[30] Postulated that customer satisfaction is the
voice of the customers appraising the extent to
which the services of their service providers
meet or exceed their prior expectations.
Customer Satisfaction
A Study [24] defined customer satisfaction as
a general evaluation based on the purchase and
consumption experience of the good or service
over time. [25] Added that customer satisfaction
is a function of marketing that establishes the
extent to which the organization and its facilities
were able to meet the expectations of their
customers.
As averred by [24], the access to actionable
information by the organization on what the
customers expect and how to deliver it to them
to meet their expectations is a must when it
comes to customer satisfaction. According to
[26], customer satisfaction is the psychological
state derived from the confirmation or
disconfirmation of customer expectations as
measured against the customers’ feelings
ensuant to an actual service experience. It was,
therefore, the contention of [26] that customer
satisfaction is the judgmental attitude that is
subject to specific service consumption.
Similarly, it was noted by [27] that customer
satisfaction describes affectionate and cognitive
responses to actual service encounters by
consumers of a particular service.
It is also noted [27] that the cognitive aspect
espoused in customer satisfaction defines the
customer’s own evaluation of the adequacy of
Service
Delivery
Experience
and
Customer
According to [31], at the center of customer
experience management is to ensure that the
organization captures and delivers on the needs
and expectations of customers’ preservice
delivery, during service delivery, and postservice delivery. In this regard, the level of
knowledge management at play influences the
quality-of-service delivery in terms of how the
organization responds to the needs and exceeds
the customers’ expectations in their diversity
[22]. This means that service delivery is the
moment of truth, where the customers will
experience the degree to which the organization
was willing and capable of meeting their needs
[32].
Through service delivery, the retailers were
able to deliver on their promises to their
customers in a manner that conforms or
discomforts to the customer’s expectations and
ultimately influences the experience of the
customers in a significant manner [33]. This
5
means that service delivery allows the
organization to give of itself in the expectation
of satisfying the customers’ needs, and if the
customers experience precisely what they
expected, such will be a positive customer
experience. If they do not share what they
expected, such will amount to a negative
customer experience [34]. Therefore, this means
that the quality-of-service delivery impacts the
degree to which the organization meets the needs
of the customers, which in turn impacts the
manner of customer experience that the
customers have with each interaction with the
retailer [33].
In the same manner, [35] argues that customer
experience is a function of the extent to which
the services offered by the organization address
the needs and expectations of the customers. It is
in this context that retailers in the FMCG sector
rely on the feedback that they receive from their
customers to be able to know exactly what the
customers expect of them, how the customers
feel about their current service offering and as
such, determination of how these can be
modified and improved to improve the customer
experience through superior service delivery
[35]. In this regard, service service delivery is
both an anticipatory, proactive, and response sets
of actions instituted modifying the customer
experience, which will impact customer
satisfaction [36].
the research design adopted in this study was
quantitative. The researcher administered a
structured survey questionnaire that allowed the
respondents to rank their responses on a Likert
scale.
The responses were processed quantitatively
using the Statistical package for social sciences.
The study used convenience sampling to extract
a sample of 750 respondents. The application of
convenience sampling was based on the fact the
researcher approached the respondents who
were walk-in customers into retail outlets in
Gaborone. In this regard, only such customers
who were available and willing to complete the
questionnaires at the time of data collection were
selected into the sample.
Data was analyzed by way of descriptive
statistical analysis as well as inferential
statistical analysis. The questionnaire data was
processed using SPSS, wherein the study
utilized descriptive statistics in the form of
mean, standard deviation, and standard error of
mean. The mean was used as a measure to
determine the general sentiment of the
respondents as gauged against the Likert scale
utilized for each question presented to the
respondents. The standard deviation represented
the degree to which the opinions of the
respondents differed within each group of
respondents.
Multiple linear regression analysis techniques
was used in this study in order to make a
determination of the nature as well as the
strength of the relationship between service
delivery and Customer Experience. The
regression model that was adopted for this study
is given below:
Methodology
This study was grounded on the positivist
research stance, and to this end, the study
adopted and followed after the positivism
research philosophy. According to [37], the
positivist research philosophy places its reliance
on the collection and analysis of statistical data.
This means that the positivist research
philosophy is quantitative and deductive, which
translates that the researcher first states the
research hypothesis that the research seeks to
test. Upon the collection of quantitative data, the
researcher statistically tests the hypothesis to
confirm or reject the hypothesis [38]. Therefore,
𝑌 = ∝ +𝛽1 𝐺 + 𝛽2 𝐴 + 𝛽3 𝑄 + 𝛽4 𝐷 + 𝛽5 𝑃
+ 𝛽6 𝑅 + 𝛽7 𝐿 + 𝛽8 𝐷𝐴 + 𝛽9 𝐶𝐸
+ 𝜇. . . . . . . . . . . . 𝐸𝑞𝑢𝑎𝑡𝑖𝑜𝑛 1
Y
G
A
Q
D
6
=
=
=
=
=
Customer satisfaction
Gender
Age
Quality
Diversity
P
R
L
DA
=
=
=
=
CE
µ
=
=
Pricing
Responsiveness
Store location
Physical design and appearance of
the shop
Customer experience
Error term
were male. In the same sample, 5.6% (n =
42/750) were below the age of 20; 43.9% (n =
329/750) were aged between 20 and 29; 30.1%
(n = 226/750) between 30 and 39 years of age;
18% (n = 135/750) were aged between 40 and 49
years and 2.4% (n = 18/750) were between 50
and 59 years of age.
Results and Discussion
Level of Customer Satisfaction
Respondents’ Profile
Table 1 shows the descriptive statistics on the
rating ascribed to the various factors of customer
satisfaction and the overall level of customer
satisfaction in the Retail sector of Botswana.
The study sample comprised of 750
individuals and out of these, 53.6% (n =
402/750) were female and 46.4% (n = 348/750)
Table 1. Descriptive on Factors of CS, CE, and CS
Q
Mean 3.70
SD
1.234
N
750
D
4.25
1.152
750
P
3.09
1.081
750
R
3.11
1.268
750
The findings in Table 1 show that in general
terms, the quality of products within the FMCG
food and groceries sector of Botswana were
ranked as being good (mean = 3.70), and from
this finding, it can be deduced that the customers
found the quality of products that they consumed
to be commendably good and as such, worth
consumption. Product diversity ranked good
(4.25), which in essence means that the
customers were satisfied by the level of diversity
that their retailers offered and the latitude this
afforded them in terms of choice. The pricing of
products within the retail sector of Botswana
was found to be fair (mean = 3.09), and this
means that the customers were of the opinion
that these products were not too cheap and, at the
same time, not exorbitantly priced and out of
their financial reach.
The level of responsiveness within the retail
sector of Botswana was ranked as being
moderate (mean = 3.11). This means that the
employees within the retail sector attended to the
needs of the respondents with average speed and
moderate attentiveness. The location of the retail
outlets was ranked as being well placed (mean =
3.97). This means that the customers were of the
L
3.97
1.310
750
DA
4.00
1.217
750
CE
4.16
1.327
750
CS
3.87
.944
750
view that the retail outlets were in close
proximity to where they resided and, as such,
we’re very accessible to them. The design and
appearance of the retail shops in the FMCG food
and groceries sector were ranked as being good
(mean = 4.00). This means that the shops’
appearance was viewed as appealing, and the
arrangement of shelves was convenient for ease
of movement and for customers’ comfort to
locate the goods they wanted to purchase from
the shops. In terms of customer experience, the
findings in Table 1 show that the customers
ranked their customer experience within the
retail sector as being good (mean = 4.16). This
means that, in general terms, the customers who
took part in the survey were of the view that the
retailers met their expectations to a great extent,
and this, in turn, gave them a good customer
experience in the main. The researcher sought to
determine customer satisfaction with the FMCG
food and groceries sector of Botswana. The
survey allowed the customers to provide a
personal rating of their satisfaction at the
individual level.
The findings were compounded, and as per
Table 1, the level of customer satisfaction in
7
Botswana’s FCMG sector was found to be good
(mean = 3.87). This means that, in general terms,
the customers were satisfied with the service that
they were offered by their choice retailers. While
the level of satisfaction differed at the individual
level, the overall satisfaction was ranked as
being good.
Correlation Between Factors of CS, CE,
and CS
To examine the manner of correlation
between the factors of customer satisfaction,
customer experience, and customer satisfaction,
the study undertook and correlation analysis, and
the findings in this regard are given in Table 2.
Table 2. Results from the Correlation Analysis
Q
D
P
**
**
CE .740
.624
-.662**
CS .533** .714** -.848**
R
.627**
.526**
L
DA
**
.757
.687**
.203** .153**
CE
1
.638**
CS
.638**
1
more positive the customer experience becomes
and the higher the level of customer satisfaction.
This could be attributed to the fact that the
customers in Botswana’s retail sector are price
sensitive. As such, their experience and
satisfaction are positive where their perception
of pricing was favourable. The findings,
therefore, agree with [24], who argued that due
to price sensitivity amongst the customers in the
retail sector, pricing shares a strong negative
correlational relationship with the customer
experience and customer satisfaction.
The level of responsiveness has a strong
positive correlation with customer experience (r
= 0.627) and with customer satisfaction (r =
0.526). This could be attributed to the fact that
the more responsive the organization is to the
customers’ needs and the more the employees
within the retail sector attend to the customers’
needs, the greater the customer experience and
ultimately, the greater the level of customer
satisfaction. These findings concur with [35],
who opined that as the level of responsiveness
shown by the organization increases, so does the
customer experience and customer satisfaction.
Location was found also to have a solid positive
correlational relation (r = 0.757) with customer
experience but a weak positive correlation (r =
0.203) with customer satisfaction. This could be
attributed to the fact that the proximity of the
retail outlets to the customer impacts how the
customers experience service delivery. The more
accessible the outlets are, the greater the level of
Table 2 shows that the quality of products had
a strong positive correlational relationship with
both customer experience (r = 0.740) and
customer satisfaction (r = 0.533). This means
that customer experience and customer
satisfaction were directly proportional to the
quality of products being sold within the sector.
The higher the quality of products, the greater
the customer experience, and satisfaction level.
These findings concur with [33], who argued
that the quality of goods in the retail sector has a
strong positive correlational relationship with
both customer experience and customer
satisfaction.
Similarly, the study found that there existed a
strong positive correlation between product
diversity and both customer experience (r =
0.624) and customer satisfaction (r = 0.714).
From this finding, it can be deduced that, the
more diverse the product range on offer in the
retail sector, the greater the level of customer
experience and the better the level of customer
satisfaction. These findings agree with [35], who
also argued that the level of customer experience
and customer experience were positively
correlated with product diversity within the retail
sector.
Pricing of the products was found to have a
strong negative correlation with customer
experience (r = -0.662) and customer satisfaction
(r = -0.848). This means that, as the product’s
price increases, the customer experience
declines. Conversely, the lower the price, the
8
customer experience. Still, however, it doesn’t
follow that the more accessible the outlets are
that the customer satisfaction will be
significantly high [31].
The design and appearance of the retail shops
were found to have a strong positive correlation
(r = 0.687) with the customer experience and a
weak positive correlation (r = 0.153) with
customer satisfaction. Design and appearance
also have a bearing on the ease with which
customers can navigate in the retail outlets, and
as such, the more the design allows for
navigation. It makes it easy to locate the goods
the customers want to buy, the greater the
customer experience and customer satisfaction
[16].
correlation analysis given in Table 2, it can be
deduced that customer experience has a solid
positive correlational relationship with customer
satisfaction (r = 0.638). This could be attributed
to the fact that both customer experience and
customer satisfaction related to the trade-off
between customer perceptions of service and the
perception of service received. In this regard,
where the customer experience is positive, it also
follows that customer satisfaction will be high.
These findings concur with [13, 32, 34], all of
whom argued that there existed a strong positive
correlational relationship between customer
experience and customer satisfaction.
Impact of Factors of Customer
Satisfaction on Customer Satisfaction
Correlation Between CE and CS
To determine the impact of the various factors
of customer satisfaction on customer
satisfaction, the multiple regression analysis was
undertaken at a 5% level of significance, The
findings in this regard are given in Table 3.
The study further sought to determine the
nature and strength of the correlational
relationship between customer experience and
customer satisfaction. From the findings of the
Table 3. Summarised Results from the Regression Model
Independent Variables
(Constant)
Gender
Age
Product Quality
Product Diversity
Pricing
Responsiveness
Store Location
Design and Appearance
Customer Experience
R2 = 0.662
Adj. R2 = 0.658
F = 160.886
Sig. = 0.000
The findings in Table 3 show that the Rsquare coefficient for the regression model was
0.658, and this means that when all independent
variables are taken as a unit has, they have a
65.8% explanatory power over the variations in
the level of customer satisfaction in the retail
sector of Botswana. The findings further show
β
1.804
.345
-.015
.417
.300
.303
.417
.081
.338
.088
t
13.989
13.462
-.582
9.721
8.746
7.676
10.528
1.397
8.164
2.314
Sig.
.000
.000
.561
.000
.000
.000
.000
.163
.000
.021
the F-value = 160.886 and p-value = 0.000<0.05,
and this further indicates that the regression
model used in this study was statistically
significant and capable of explaining the
variations at the back of changes in the
independent variables. In line with the
9
summarised regression model results in Table 3,
the following regression equation emerged:
satisfaction. This is consistent with the argument
by [8] that product quality has a statistically
significant impact on customer satisfaction.
The findings show that product diversity has
a positive and statistically significant impact on
customer satisfaction within the retail sector of
Botswana (β = 0.300), p = 0.000<0.05.
Therefore, the study accepts the alternative
hypothesis, which stated that product quality has
a statistically significant impact on customer
satisfaction. This finding agrees with [3] who
argued that diversity of products in the retail
sector has a statistically significant effect on
level of customer satisfaction. Pricing was found
to have a positive and statistically significant
impact on customer satisfaction (β = 0.303), p =
0.000<0.05. In this regard, the study accepts the
alternative hypothesis that the pricing of
products has a positive and statistically
significant impact on the level of customer
satisfaction in the retail sector. This finding
concurs with [8] who argued that pricing has a
statistically significant effect on customer
satisfaction in the retail sector.
Responsiveness was found to have a positive
and statistically significant impact on customer
satisfaction (β = 0.417), p = 0.000<0.05. In this
context, the alternative hypothesis that
responsiveness has a statistically significant
impact on customer satisfaction is accepted by
this study. This finding also concurs with [14]
who argued that level of the level of
responsiveness in the retail sector has a positive
and statistically significant impact on the level of
customer satisfaction. The study found that store
location did not have a statistically significant
effect on customer satisfaction in the retail sector
of Botswana (β = 0.081), p = 0.163>0.05. The
study, therefore, accepts the null hypothesis,
which stated that store location does not have a
statistically significant impact on customer
satisfaction. This finding does not agree with [2],
who opined that the location of the retail outlets
had a statistically significant effect on the level
of customer satisfaction in the retail sector. The
design and appearance of the store had a positive
𝑌 = 1.804 + 0.345𝐺 + 0.417𝑄 + 0.300𝐷
+ 0.303𝑃 + 0.417𝑅
+ 0.338𝐷𝐴 + 0.088𝐶𝐸 + 𝜇
As per the findings in Table 3, it can be
deduced that the gender of the customers was
positively correlated (β = 0.345) to customer
satisfaction. In this regard, from the Beta
coefficient, it can be deduced that a unit increase
in gender dynamics in the population of
customers will increase the level of customer
satisfaction by a factor of 0.345. In the same
manner, the p-value = 0.000<0.05 shows that
gender had a statistically significant impact on
customer satisfaction, and therefore, the
hypothesis that gender has a statistically
significant effect on customer satisfaction is
accepted by this study. This finding agrees with
[36], who argued that gender significantly
impacts customer satisfaction. The findings also
show that gender was negatively correlated to
customer satisfaction within the retail sector of
Botswana (β = -0.015) and the p-value =
0.561>0.05. This means that even though age
had a negative impact on customer satisfaction,
the impact was not statistically significant.
Therefore, the study accepts the null hypothesis,
which stated that age does not have a statistically
significant impact on customer satisfaction. This
finding is inconsistent with the claim by [31] that
the age of customers has a statistically
significant impact on customer satisfaction in the
retail sector.
Product quality was fund to have a positive
impact on customer satisfaction (β = 0.417), pvalue = 0.000<0.05. In this regard, it can be
deduced that a unit increase in the product
quality offered by retailers will increase the level
of customer satisfaction by factor of 0.417. The
p-value = 0.000<0.05 shows that product quality
has a statistically significant impact on customer
satisfaction. In this regard, the study accepts the
alternative hypothesis that product quality has a
statistically significant impact on customer
10
and statistically significant impact on the level of
customer satisfaction in the retail sector (β =
0.338), p = 0.000<0.05. Based on these findings,
the study accepted the alternative hypothesis that
the design and appearance of the store have a
positive and statistically significant impact on
customer satisfaction. This is consistent with [5],
who also argued that the design and appearance
of the retail outlet had a significant effect on the
level of customer satisfaction.
The study found that customer experience
positively and statistically significant impact on
customer satisfaction in Botswana’s retail sector
(β = 0.088), p = 0.021<0.05). Ensuant to this
finding, the study accepted the alternative
hypothesis, which stated that customer
experience has a statistically significant impact
on customer satisfaction. This finding concurs
with [35], who argued that customer experience
positively and statistically significant impact on
customer satisfaction.
statistically significant was found to predict
65.8% changes in customer satisfaction. In
overall terms, the study found that gender,
product quality, product diversity, pricing,
responsiveness, design and appearance and
customer experience all had a statistically
significant impact on customer satisfaction in
Botswana.
The implication of these findings is that,
whilst there are a number of factors that are
regarded to have a bearing on level of customer
experience in the retail sector, management
within Botswana’s FMCG food and groceries
sector should pay particular attention to gender,
product quality, product diversity, pricing,
responsiveness, design and appearance and
customer experience. In this regard, it is
recommended that in their service delivery, they
should be gender sensitive given the fact that
gender impacts significantly on the level of
customer satisfaction. On the other hand, the
study recommends that management within the
sector should adopt a quality and diversitycentric policy within their outlets. Where the
organizations are quality-centric and diversitycentric, they will provide superior quality of
products and services and will also offer
significant product diversity to cater to the
diverse tastes and needs of their customers.
In the same manner, the study recommends
that the retailers should employ customerfocused employees who understand the value of
customers and will be responsive to the needs of
the customers. The pricing models that are
adopted within the sector should, whilst seeking
to attain organizational profitability should also
consider affordability of products amongst the
customers. To achieve competitive pricing, the
retail sector should strengthen supply chain
management so as to manage costs on the supply
chain for the benefit of customers. The study also
recommends robust customer experience
management practices which are anchored on
robust customer knowledge management
practices where every encounter with the
customers and ever complaint laid by the
Summary and Conclusion
The study sought to determine the level of
customer satisfaction within Botswana’s retail
sector, and in this regard, the focus was placed
on the FMCG food and groceries sector. In
determining the level of customer satisfaction,
the study sought also to determine how the
various factors of customer satisfaction were
correlated to and impacted customer satisfaction.
The study thus found that an overall customer
satisfaction score of 3.87 was attached to the
level of customer satisfaction in Botswana. This
means that the study found that the level of
customer satisfaction was good on a 5-point
scale (1 = very poor and 5 = Excellent). The
study found that with the exception of pricing
which has a negative correlation with customer
satisfaction, all other factors of customer
satisfaction considered in this study displayed a
positive correlational relationship with customer
satisfaction. The study used multiple regression
analysis to determine the impact of various
factors of customer satisfaction on customer
satisfaction and the regression model was
11
fellow workmates, and classmates’ efforts and
willingness to share ideas, which made this
project possible. I would also appreciate Texila
American Mentors who really believed in me
and gave me the chance to work with me through
out. Last but not least, I would also like to
acknowledge the unquantifiable moral support
from my family and friends without which it
would have been impossible to complete this
Journal.
customers should serve as a key source of
information on how the service delivery can be
enhanced and ultimately customer experience
enhanced.
Acknowledgements
I would like to express my sincere gratitude
for the help I received from my supervisor, Dr.
Lesego Selotlegeng, whose guidance, expertise,
and patience were of great value. I would also
like to acknowledge the Government of
Botswana and my employer: the Department of
Public Service Management (DPSM), for the
support they gave to carry out this research
Conflict of Interest
The author declares that there is no conflict to
be included in the journal.
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