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MBL 925r Business Research Individual Assignment For Courage Shoniwa
MBL 925r Business Research Individual Assignment For Courage Shoniwa
MBL 925r Business Research Individual Assignment For Courage Shoniwa
1. ADDRESS DETAILS
1. ASSIGNMENT DETAILS
Delineation ...................................................................................................................................................... 2
METHODOLOGY .............................................................................................................................................. 7
Causal Research ........................................................................................................................................... 7
Population ....................................................................................................................................................... 9
Sample selection for the interviews with the company’s managers ...................................................... 9
Data Collection............................................................................................................................................. 10
Questionnaires ......................................................................................................................................... 10
Key questions in questionnaires ........................................................................................................... 11
Structured Interviews .............................................................................................................................. 11
Key questions in interviews.................................................................................................................... 12
Validity and reliability .................................................................................................................................. 12
In this introduction, the background to the study will be provided. This will be followed by
the problem statement and the purpose of the study. The significance of the study will also
be discussed. Research questions will also be discussed in the discussed.
Company X (the company) sells cars in the Gauteng area of South Africa. On average 100
cars are sold on a monthly basis. The company provides a service plan as part of their
sales program. There is an increasing number of letters and complaints about post
purchase services at the company.
This research proposal was undertaken to identify and solve the problems in the post
purchase services at the company. In 2010 there were 10 complaints, 2011, 15 and in 2012
25 complaints. As such the number of complaints has increased exponentially over the past
3 years.
Why are there increasing number of letters and complaints about post purchase services at
the company?
The purpose of this study is to find out what the letters and complaints about post purchase
services at the company are and why the complaints have been increasing over the years.
This research is of significance to the domain of post purchase services as it extends the
knowledge base that currently exists in that field. In addition the research will help the
company is solving the problem of increasing complaints over the years. This will improve
the performance and image of the company. In addition the safety and satisfaction of the
customers will also be improved from the study as the study seeks to identify and offer
solutions to the problems besieging the company.
The findings which have resulted from the study have the capacity to impact upon the
operations of the company and will improve customer satisfaction and lead to more repeat
sales at the company.
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Research questions and/or hypotheses
This research sought to identify and solve the post purchase problems at the company. The
overall design was governed by a quantitative focus. The solution to the described research
problem is generated through finding answers to the following, more focused research
questions: To successfully address the research focus, the questions which guided this
research were:
What are the causes of the complaints and letters at the company?
Which products have the most complaints and why?
How can the company improve the post purchase service with a view of reducing the
complaints and letters?
Providing answers to these research questions will result in the goal of this research being
achieved.
Delineation
This research will only focus on post purchase problems at company X and as such it is
acknowledged that this research will be limited to the company. It is however important to
do such a research as it will provide an insight into problems faced by similar automobile
companies.
It is also acknowledged that not all of the problems at Company X will be assessed and
included in this study. Only problems pertaining to the post purchase services will be
included in the research.
This project began in January 2013 and ran until June 2013; it is intended to be a pilot for
further research into the problems at company X.
LITERATURE REVIEW
The aim of this chapter is to provide the academic framework for the research topic: Solving
problems of increasing number of letters and complaints about post purchase services at a
car company X.
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This research is exploratory in nature and the research will use academic literature to set
out and identify the areas that forms part of the study to give guidance of the path that the
study should follow.
According to Calin (2012) many reports stress the importance of solving customer
complaints in order to maintain customer satisfaction, but also to learn from mistakes and
further improve the customer service. Calin however noted that relatively few empirical
studies have been conducted regarding the effect of complaints handling activities on
customer satisfaction and on company – customer relationships. His research attempted to
identify the main elements of the complaints handling strategy that are considered essential
for customers, and their effect on the customer satisfaction. This element was considered in
the design of the interviews questions for employees of Company X. The main elements of
the complaints handling strategy of company X was analysed in detail and compared to the
existing literature.
Calin (2012) in quoting Tax, Brown and Chandrashekaran (1998) defines a complaint as a
conflict between a consumer and a business organisation in which the fairness of the
resolution procedures, the interpersonal communication and behaviour, and the outcome of
the complaint resolution process are the principal evaluative criteria used by the customer.
However Calin (2012) disagrees with Tax, et al., (1998) in that he notes that a complaint is
not necessary a conflict, however, it can create a conflict between a customer and a
business organisation, when the answers to the customer’s complaint is not satisfactory.
This formed the foundation for the questions contained in the questionnaires to the
customers. The customers of Company X were asked if there was a conflict between them
and the company as a result of the dissatisfaction of the service.
According to Tax, et al., (1998) customer complaints are the external and visible
manifestation of a crisis in the relationship between company and customer. This crisis can
be successfully solved, determining the continuation of the relationship, or can deepen
further, if the customer is dissatisfied with the way in which his complaint is managed by the
firm. This research report seeks to either prove or disprove this inference by the author.
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Customer dissatisfaction
According to Festinger (1962), dissonance occurs if, after a decision, a person is faced with
doubt that he made the correct choice. For example, the owner of a new auto mobile may
realise that other makes are superior in important ways to the one he purchased.
Knowledge of these foregone advantages may place him in a state of anxiety called
cognitive dissonance.
Assael (2008) said that once a product is purchased, the consumer will evaluate its
performance in the process of consumption. He mentions that the most important aspect in
consumption is how consumers use products, how satisfied they are with the purchase and
how likely they are to buy that particular product or brand in the future. He went on to say
that satisfaction occurs when consumer expectations are met or exceeded and the
purchases decision is reinforced.
Kotler and Armstrong (2004) said that customer satisfaction is a key influence on future
buying behaviour. As such a customer who is dissatisfied will discontinue using the product
or might switch to a competitor’s product. The researched attempted to establish a
relationship between customer satisfaction and the performance of company X because
literature detects that dissatisfied customers may affect the performance of the company
due to lack of repeat sales.
Dube, et al., (2000) noted that the relationship between negative emotions and consumer
satisfaction depends on the perceived cause for the negative emotions. After reviewing the
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available literature they also noted that consumption emotions are the affective responses
to one’s perception of the series of attributes that compose a product or service
performance.
Nadeem (2007) noted that dissonance could impact on people’s decision making process,
potentially affecting consumers’ attitudes, and satisfaction with their purchase decisions.
Hawkins, Best and Coney (2004) measured cognitive dissonance arousal in terms of
purchase decision difficulty as shown in the diagram below:
Nadeem (2007) highlighted that there has been research on the effect of post purchase
reassurance on the consumers’ dissonance levels, and the research found out that recent
refrigerator purchasers who received post transactional reassurance from the store
reported lower dissonance level and more positive attitudes towards the store.
According to Nadeem (2007) consumers usually face more than one alternative in a choice
task, each which has different types and levels of attributes, and a final decision is based
on consumers’ willingness to give up less of one attribute for more of another (e.g.
desirability, utility, potential valence outcomes).
Nadeem (2007) further noted that researchers and practitioners widely believe that effective
post purchase reinforcement and assurance can enhance consumer satisfaction and forge
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a higher level of customer retention and likely repeat purchases. In quoting Oliver (1997),
Nadeem (2007) states that the main goal of reinforcement is to give consumers a certain
level of confidence that their choice made is appropriate and wise.
In concluding his research, Nadeem (2007) noted that consumer dissonance should be of
concern, as a significant number of consumers experience some form of dissonance. He
further concluded that a salesperson should act to reduce potential dissonance at the time
of purchase, rather than leaving a customer with negative attitudes and behavioural
intentions, such as lower satisfaction and perceived value, an increased likelihood of
negative word of mouth about their experiences and a greater likelihood of switching. He
noted that the sales staff should be involved in reducing consumer dissatisfaction because
they play a pivotal role in reducing customer dissonance, enhancing customer satisfaction
and loyalty. The following are some of the activities or programmes that the sales team
need to do to achieve customer satisfaction:
Summarising the product’s benefits after the purchase;
Explaining why the product is better than alternatives;
Emphasising how satisfied the customer will be;
Provide too free telephone numbers to encourage communication;
Offer liberalized return and refund policies;
Offer trial periods, guarantees and warranties;
Give a balanced view of the product;
Engage in staff training to handle complaints;
Implement a follow up program for customers;
Match the product with the customer’s specific wants;
Provide clear on package information;
Perform in store use demonstration;
Assign a customer focused sales person; and
Provide good after sale service.
The researcher included these factors in designing the interview questions to the
employees of company X. The information obtained from the interviews was used as a
guide to analysing the services at company X from an internal point of view. To ensure
consistency with the outside view similar questions were also included in the questionnaires
to the customers of company X.
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There is an abundance of literature on post purchase dissonance, but limited research
automobile services. Thus there is gap in the available literature and the researcher aims
to address that gap in information.
METHODOLOGY
Coldwell and Herbst (2004) say that research is important for business in that it reduces
uncertainty by providing information that improves the decision-making process. There are
three different types of business research strategies namely descriptive research,
exploratory research and casual research.
The goal of exploratory research is to discover ideas and insights. Descriptive research is
usually concerned with describing a population with respect to important variables. Causal
research is used to establish cause-and-effect relationships between variables. For this
research, a causal research approach was conducted.
Causal Research
The reason for selecting causal research is because exploratory research is conducted into
an issue or problem where there are few or no earlier studies to refer to and its focus is on
gaining insights and familiarity for later investigation. While descriptive research describes
phenomena as they exist. Here data is often quantitative and statistics applied. It is used to
identify and obtain information on a particular problem or issue. Finally causal or predictive
research seeks to explain what is happening in a particular situation. It aims to generalise
from an analysis by predicting certain phenomena on the basis of hypothesised general
relationships.
The researcher was of the opinion that causal research will provide a better explanation of
the causes of problems at company X. in addition exploratory research was not appropriate
because the results of exploratory research are not usually useful for decision-making by
themselves, but they can provide significant insight into a given situation. In addition the
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exploratory research is not typically generalizable to the population at large and thus would
not be appropriate to the research at hand where the results are intended to be inferred to
the population at large.
Pellissier (2007) state that quantitative (or positivist) approach is used when the
researcher wants to focus on “what is now” and what the respondent knows of which they
have facts, including “what respondents have done”.
Babbie and Mouton (2008) agrees as he defines qualitative research as the non-numerical
examination and interpretation of observation, for the purpose of discovering underlying
meaning and patterns of relationships.
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Population
According to Copper and Schindler (2011) the concept of “population” can be considered
as the total collection of the elements about which inferences were made in a statistical
study.
Our population for the customer questionnaires were all the customers that purchased
motor vehicles at company X in the past 3 years. And the population for the focused
interviews were all the employees at company X. This research followed a format of a
cross-sectional design. A cross-sectional design enables people from various and different
age groups to be sampled and compared. Due to the time constraints of the research
assignment, this method was identified to be the best method as it enables the researcher
to collect all of the required data at single time (Leedy & Ormrod, 2010).
De Vaus (2002) states that if a sufficient representative sample from your population is not
collected, the researcher runs the risk of getting biased results. He goes further to state the
sample size depends on two key factors, firstly, the degree of accuracy required from the
sample, and secondly, the extent to which there is a variation in the population with regards
to the key characteristic of the study.
There are four sampling techniques: random sampling, stratified sampling, cluster
sampling, and systematic sampling.
The researcher chose random sampling for selecting the sample for the questionnaires to
the customers. According to Gay (1996) random sampling is the process of selecting a
sample in such a way that all individuals in the defined population have an equal and
independent chance of being selected for the sample. This method was selected because
it is considered as the best single way to obtain a representative sample that is required by
inferential statistics. This method was also considered ideal for the research because when
the sample is not representative of the population, selection bias is a possibility and the
researcher wanted to reduce selection bias to a greater degree.
A non-probability convenience sample was used for the study. This sampling procedure is
typically defined as taking cases on the basis of their availability (Rosenthal & Rosnow,
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2008). This method was selected because of its convenience of use and also the
accessibility of the subjects to the researcher. This method was appropriate because is
allowed the researcher to obtain basic data without complications of using a random
sample. The disadvantage of the sampling method is the sampling bias since the sample is
not representative of the entire population.
Data Collection
Data collection is any process of preparing and collecting data for the research. Data
collected can either be primary or secondary data. Primary data, “comes from original
sources and are collected especially to answer our research questions”, while secondary
data, “is a source material that has been collected by others for their own purposes”
(Cooper and Emory, 1995: 240).
According to Sapsford and Jupp (2006) a formal data collection process is necessary as it
ensures that data gathered are both defined and accurate and that subsequent decisions
based on arguments embodied in the findings are valid. The process provides both a
baseline from which to measure and in certain cases a target on what to improve. A
researcher will decide for one (or multiple) data collection techniques while considering its
overall appropriateness to the research, along with other practical factors, such as:
expected quality of the collected data, estimated costs, predicted nonresponse rates,
expected level of measure errors, and length of the data collection period The choice of
method is influenced by the data collection strategy, the type of variable, the accuracy
required, the collection point and the skill of the enumerator. Links between a variable, its
source and practical methods for its collection. The researcher choose to collect data
through questionnaires and structured interviews.
Questionnaires
According to Leedy and Ormrod (2010) questionnaires can be sent to a large number of
people and saves the researcher time and money. People are more truthful while
responding to the questionnaires regarding controversial issues in particular due to the fact
that their responses are anonymous. But they also have drawbacks. Majority of the people
who receive questionnaires don't return them and those who do might not be representative
of the originally selected sample.
The forms were completed and returned by respondents (customers at company X). The
researcher chose this method because it’s an inexpensive method that is useful where
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literacy rates are high and respondents are co-operative. In order to maximise return rates,
the researcher designed the questionnaires to be as short, simple and clear as possible.
Structured Interviews
According to Leedy and Ormrod (2010) in a structured interview, the researcher asks a
standard set of questions and nothing more. The interviews have a distinct advantage of
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enabling the researcher to establish rapport with potential participants and therefor gain
their cooperation. These interviews yield highest response rates in survey research. They
also allow the researcher to clarify ambiguous answers and when appropriate, seek follow-
up information. Disadvantages include impractical when large samples are involved time
consuming and expensive.
In interviews information was obtained through inquiry and recorded by the researcher.
Structured interviews were performed by using survey forms and the notes are
subsequently structured (interpreted) for further analysis.
According to Tustin, Ligthelm, Martins, and Van Wyk (2010) a carefully controlled
experiment conducted in a laboratory environment yields results that are unambiguous. The
experiment has a high internal validity. A consequence of the artificial nature of a laboratory
is the loss of generalizability to more realistic situations. The experiment lacks external
validity.
Babbie and Mouton (2008) define validity as the extent to which an empirical measure
adequately reflects the real meaning of the concept under construction.
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Due to the small sample size, there are reliability issues as the researcher cannot prove
that the data collected reflects the whole population. To mitigate the risk of the sample not
reflecting the population, the survey was triangulated with the interview to ensure reliability.
With the interviews the interviewee might be giving their opinion rather than the actual facts
associated with the research. There might be a biased view and therefore to mitigate this,
the researcher used the literature review to ensure that opinions are in line with current
trends around the world.
There are two kinds of validity (face validity) - contents of the test or procedure look like
they are measuring what they are supposed to measure and (content validity) - content of
the test or procedure adequately represents all that is required for validity
According to Gay (1996) reliability is a term to describe the stability of your measurement.
Measures the same thing, same way in repeated tests. Precision is expressed as
validity and reliability. Validity represents how well a variable measures what it is
supposed to. Validity is important in descriptive studies: if the validity of the main variables
is poor, you may need thousands rather than hundreds of subjects. Reliability tells you how
reproducible your measures are on a retest, so it impacts experimental studies: the more
reliable a measure, the less subjects you need to see a small change in the measure.
Gay (1996) noted that validity means the degree to which a test measures that it is
supposed to measure and, consequently, permits appropriate interpretation of scores. The
concept of validity is that the validity for whom or for what. Since tests are designed for a
variety of purposes, and since validity can be evaluated only in terms of purpose, the
validity is categorized in several different types: Content, construct, concurrent and
predictive validates.
Content validity: Content validity is the degree to which a test measures an intended
content area. It requires both item validity and sampling validity. Item validity is concerned
with whether the test items represent measurement in the intended content area, and
sampling validity is concerned with how well the test samples the total content area. The
content validity is determined by expert judgment.
Construct validity: Construct validity is the degree to which a test measures an intended
hypothetical construct. It is not easy task to process a test of construct validity. Generally,
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a number of independent studies are required to establish the credibility of a test of a
construct.
Concurrent validity: It is the degree to which the scores on a test are related to the
scores on another, already established, test administered at the same time, or to some
other valid criterion available at the same time. The concurrent validity is determined by
the resulting number, validity coefficient. If the coefficient is high, the test has good
concurrent validity.
Predictive validity: Predictive validity is the degree to which a test can predict how well
an individual will do in a future situation. The predictive validity of a test is determined by
establishing the relationship between scores on the test and some measure of success in
the situation of interest. It is determined by the resulting number, validity coefficient. If the
coefficient is high, the predictive validity is good. Generally, 0.5 might be acceptable
predictive validity in certain situations, but not in some others.
Reliability means dependability or trustworthiness. It is the degree to which a test
consistently measures whatever it measures.
A valid test is always reliable but a reliable test is not necessarily valid. In other word, if a
test is measuring what it is supposed to be measuring, it will be reliable and do so every
time, but a reliable test can consistently measure the wrong thing and be invalid.
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Analysis of data
The analysis of the data will focus on a content analysis of the interview notes and the
questionnaire responses. The analysis will be deductive, using the responses, and linking
them with what was found in the literature review (Terre Blanche, Durrheim & Painter,
2008).
ETHICAL CONSIDERATIONS
McDaniel and Gates (2001) maintain that a high standard of ethics and professionalism go
hand in hand. Good ethics provides a solid foundation for professionalism, and striving for a
high level of professionalism necessitates proper ethics on the part of researchers.
During the preparation and obtaining of data, the preservation of privacy and anonymity of
the respondents was advocated; data was collected only for the purpose of this research
and only interviewees’ that have given their consent, names were published. In addition
other ethical issues such as confidentiality, debriefing and informed consent were upheld
during the research process.
The data collected in this research collected is objective and factual and does not
demonstrate the researcher’s own point of view of the problems at the company. The
results were not distorted or changed to be in line with the researcher’s own personal view
point. Researchers need to recognise that effective practice of their profession depends a
great deal on the goodwill and participation of the public. Since our survey was being
administered to the company’s customers, we had to adhere to strict company policies and
sign Non-Disclosure Agreements (NDAs) regarding the disclosure on the information
obtained from the study. Our cover letter included information instructing the respondents to
remain anonymous, to only fill out the survey voluntarily, and assured them that it would
remain confidential and that they would not be harmed in any way.
There are various ethical considerations the researcher took into consideration in the
planning and implementation of the research plan. The researcher was aware of the
general obligations he had to people who provided data in the research. These included:
Informed Consent
The full participation of all the customers and employees of company X cannot be
completely guaranteed, despite advising them that the information they provide is
confidential. However, it would also not be fair to withhold information regarding the
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objective of the study (poses ethical problems!), even if the aim is to ensure maximum
participation and feedback.
Right to Privacy
This study has withheld the names of the participants (customers and employees of
company X) who may have compromising information which could influence any future
deliberations and decisions of the company. The results of the study have been
documented in such a way that all parties that participated in the study are protected.
.
Protection from Harm
The participants were employees and customers of company X. In all the questionnaires
and interviews, the confidentiality of the sessions was emphasised and an assurance of the
good intentions of the study was given at the start in a less interrogative and more
collaborative and participative manner to ensure that no harm was caused on the part of
the participants.
Although the researcher had adequately planned and prepared for the study it had its
limitations and shortcomings
First of all, the research was conducted in the 6 months (January 2013 to June 2013), this
is a very short time to come up with conclusive solutions to the problems at company X.
The questionnaire design was meant to get specific data from the customers of company X
and as such the data obtained was only for the specific structured questions contained in
the questionnaires.
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In addition, selection of the convenient sample for the interviews was done by the
researcher, thus a certain degree of subjectivity can be found in the study. A more
statistical sampling method should have been used to main objectivity of the sample
selected.
The data collection was confined to only customers and employees of company x. The
replication of the study at different companies within the automobile industry would enable
better generalizability of the findings of the study. Collecting such data was beyond the
scope of the current study. Future studies might include other automobile companies as
well.
The study has relied largely on quantitative methodology of data collection which is
therefore restrictive. Therefore, more of qualitative methodology of data collection should
be undertaken in future studies for the problems at company X. This would provide a wider
perspective to the current study conducted by the researcher.
Another limitation of the study concerns the cross-disciplinary nature of this research
project. This research combined various modules which included, Business Research,
Operations Management, Marketing, Psychology and Strategic Management. There is an
apparent danger involved whenever concepts are borrowed from related disciplines and
then applied in the present context. The researcher had limited knowledge in some of the
disciplines and as such had to rely on information obtained from the literature reviews and
interactions with subject experts in the relevant disciplines.
Last but not least financial budgetary constraints also limited the extent of the study. The
research was funded internally by the researcher and as such there was limited funding to
adequately address all the research objectives. Future research will have to be funded by a
sponsor for it to be able to cover all the intended objectives of the study.
CONCLUSION
From the literature it was evident that it is important to solve customer complaints in order
to maintain customer satisfaction. Based on the data collected, in general it seems that
there are serious problems at company X relating to post purchase services. The company
should implement the proposed recommendations so that the customer dissonance can be
reduced. All the objectives of the research were reached and the recommendations were
provided. However this research was a preliminary study and future researches should
consider sampling larger populations and using other companies in the automobile industry
so as to come up with more relevant solutions to the automobile industry.
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