RETAIL CUSTOMER SERVICE

ANALYSIS ON

GUARDIAN PHARMACIES’ SERVICES

CLASS OF BM225 5A

PREPARED BY:

NAME MATRIC NO

1. NUR FARAH ABDUL RAZAK 2009514249

2. ZULHAFIZDZUDDIN ESMAIL 2009524225

PREPARED FOR:

ASSOC. PROF HAJAH NOOR AFIZAH BTE HJ ISMAIL

CHAPTER 1 INTRODUCTION

Customer service is a series of activities designed to enhance the level of customer

satisfaction (Turban et al., 2002). Its importance varies by product, industry and customer

itself. Retail stores will often have a service counter devoted to dealing with returns,

exchanges and complaints, or will perform related functions at the point of sale.

Customer service is normally an important part of a company’s customer value

proposition based on its ability to generate income and revenue. In their book Rules to Break

and Laws to Follow, Don Peppers and Martha Rogers, Ph.D. write that "Customers have

memories. They will remember you, whether you remember them or not." A customer

service experience can change the entire perception a customer has of the organization.

Customer trust can be destroyed at once by a little to major service problem.

A bad service does not create loyalty, and does not drive return visits or create new

business. The worst outcome of all is a situation where mistakes aren't noticed and

customers who experience poor service simply walk away without complaining and with no

intention to return. If customer goes home mad, it is not only too late, but they will spread the

bad experiences to many other people either through the word of mouth or through social

media application. This situation will finally leave the brand with bad reputation and dropping

sales as people are losing their trust based on other people experiences. However, if the

problem can be identified earlier and management able to make up to the mistakes, those

customers will possibly spreading the good story and marketing the brand instead. Thus,

good customer service is crucial in securing customer loyalty and projecting good corporate

image at the same time.

1.2 PROBLEM STATEMENT

Will the lack of customer services quality affects customer loyalty?

1.3 RESEARCH OBJECTIVE

Most unhappy customers decide to leave the business does not write letters of complaint.

Thus, finding customers who have complaints provides the best opportunity to fix the

problem, retain loyalty and maintain satisfaction. Therefore, this research is carried out in

order to understand customers’ perception towards quality services that is provided by

Guardian staff and management.

1.4 RESEARCH QUESTION

Please refer to questionnaire set.

QUESTIONNAIRE

CHAPTER 2METHODOLOGY

2.1 POPULATION SIZE

We have chosen customers of Guardian pharmacies as our population.

2.2 SAMPLE SELECTION AND SIZE

The sample size in this case study is 30 respondents from all categories of people that have

been customer to Guardian pharmacies and posses some knowledge of the brand. The

samples will be distributed and collected at the Seksyen 7, Shah Alam area.

2.3 DATA COLLECTION METHODS

2.3.1 Primary Data

Primary data based on the questionnaire distributed to selected respondent to ensure that

the data provided are accurate, relevant and unbiased information. The objective is to grasp

their level of satisfaction related to the subject as mentioned in the scope of the study. To

collect this primary data, the researcher needs high level of commitment and cooperation

from the respondents. Those are the following sources that we used:

2.3.1.1 Questionnaire

The questionnaire is the main source for obtaining data for the study. About 30 set of

questionnaire constructed in simple English language have been distributed

randomly at the area of Seksyen 7, Shah Alam. The questionnaires are carefully

constructed to ensure that they are relevant to the topic and meet the objectives of

the case study.

2.3.1.2 Personal Interview

Interviews are conducted in an informal manner with the customer of Guardian

pharmacy. Interviews were conducted to get opinion and personal view toward the

quality services provided by Guardian. By having personal interviews with the

respondents, we are able to gain valuable information regarding the research.

2.3.2 Secondary Data

Secondary data is data that is already available. The secondary data can be obtained

through:

2.3.2.1 Internal sources

The researcher collected information from the Guardian’s corporate profile, annual

report, pamphlets, brochures, reports, magazines and other published materials.

2.3.2.2 External sources

We also obtained information from newspapers, internet, journals, books, and

association database.

2.4 VALIDATION

2.4.1 Pilot testing

In this case study, we did pilot testing on the questionnaire before distributing them to

respondents. Pilot testing was done with five respondents. The respondents were asked to

complete the questionnaires on the spot. This way, we will able to identify problems and

weaknesses of the questionnaire before the actual survey was conducted. Then we will able

to improve the questionnaire.

2.4.2 Personal Observation

We will make personal observations on the customer behavior, feeling and feedback. We

also did some observation to determine the reaction of previous customer and new

prospects to the quality services offers by Guardian’s pharmacy.

2.5 LIMITATION OF STUDY

During the process of completing the study, we both face several problems and barriers.

Some of these are as follows:

2.5.1 Time constraints

The time period was too short for us, we to do more comprehensive study involving all the

customer of Guardian pharmacies. Apart from that, most of the time, we does not have

enough time to interview the customer because they running out of time.

3.5.2 Difficulty in obtaining data

The study will need the information from the several types of participants that participated in

this case study. We found that it was not possible to get information from customer.

3.5.3 Lack of cooperation from the respondent.

Some of the respondents were not interested and did not care about the survey. Most of

them were reluctant to participate in this case study. Beside that, some of the respondents

did not complete the questionnaire or give respond when answering the interview questions.

3.5.4 Lack of information

We found out that there was not enough information about Guardian pharmacies due to the

confidentiality of the information on the internet. In addition, some of the respondents are not

willing to give comments about the quality services offered by Guardian.

CHAPTER 3FINDINGS

SECTION A: CUSTOMER PROFILE

The bar chart shown Guardian’s customer age range according to gender differences.

Based on survey, out of 30 respondents, 11 people are male and the rest is female

respondent. These respondents are divided into four group of age. There are only one

respondent who’s below 20 years old. This was follow by another 27 respondent ranging

from the age of 21 to 30 years old. The rest of the respondents were identified to fit into 31

to 40 years old category.

The standing bar chart shown customers’ awareness on Guardian brand. The chart fit

into three categories of Guardian’s brand recognition among customer, customer experience

on visiting Guardian stores, and their involvement on purchasing Guardian’s products. It can

be concluded that all 30 respondent, despite of their gender differences, are aware of

Guardian existence. All respondent also have been visiting the store for at least once, and

have made purchases from Guardian pharmacies before.

SECTION B: GUARDIAN’S SERVICE PERFORMANCES

The pie chart above shown customers’ agreement

towards Guardian’s operating hour. Like any other commercial

stores in Malaysia, Guardian pharmacies usually operating

from 10am until 10pm daily. Based on survey, most

respondent did not find the operating hours is a burden to

them. This was proven when 13, out of 30 respondents are

strongly agree give their approval. 33% of respondent were

neutral about it while the balance of 23% said that they agree

with the standard operating hour.

The line chart above shown customers’ agreement

towards Guardian’s as multi-products provider. These

are based on Guardian capabilities to offer wide range

of products for their customer to choose from. More than

half of the respondents agree that Guardian has done a

good job in satisfying those needs. Four person of both

gender feel like okay about it, while one female

respondent disagree with the statement which might happen due to personal bad

experiences.

The graph shown customers’ agreement towards their confidence on Guardian’s

products safeness. 27 respondents feel confident that Guardian products have passed the

Ministry of Health conduct on product safety. One female respondent however, strongly

disagree with the statement since she accidentally bought product that had reached its

expiry date. Two more respondent also disagree with the statement due to certain

circumstances.

The bar chart shown customers’ agreement towards staff willingness to respond to

customer’s request. 10 customers feel neutral about the staff services since they’re not really

depend on staff services. These customers already have knowledge of the product they

intend to buy and feel more comfortable on self-services privilege. 14 more customers also

been happy with the services especially when the problem relate to product placement. Six

customers however disagree with statement and complaint that staff is nowhere to be seen

when they seek expert advice on healthcare products.

The bar chart shown customers’ agreement towards their understanding on staff

communication medium. 27 respondents of young adult category agree that Guardian’s staff

able to communicate and send the right message by catering to their specific needs.

However, two respondents oppose the idea since some staff use jargon and complex

medical term to explain on the products.

The pie chart shown customers’ agreement towards the effectiveness of services given by

Guardian’s staff. Most respondents which make up of 17%, feel neutral about the service

provided. They feel that Guardian’s staff gave fair services on their job and still be able to

make acceptable mistakes. The least percentage of 10% of respondent however, can’t

tolerate bad services. They feel that they deserve better treatment since they are paying and

demand for good services.

The line chart shown customers’ agreement towards staff enthusiasm level at work. A total

of eight customers strongly agree that Guardian’s staff have performed a good record in

entertaining their clients. They feel comfortable and happy with the good relationship that the

staff tried to bridge in order to make customers feel comfortable while seeking consultation.

Conversely, another five female respondent strongly disagree with the idea since they have

experience with staff being lazy, giving slow services and didn’t respond accordingly to

customer’s demand.

The bar chart shown customers’ agreement towards the effectiveness of Guardian’s

coupon collection system. Guardian pharmacies often promote coupon collection upon every

purchase above RM30. Customers are then allowed to exchange the cumulated coupon into

reward such as teddy bear and umbrella. Most customer ranging from the age of 21 to 30

agree that this system attract their attention to make purchases at Guardian compare to

other competing pharmacies. Seven others however, strongly disagree with the statement as

they think that this system only encourages them to make impulse buying.

The chart shown customers’ agreement towards positive reflection of Guardian stores’

ambiance. A large number of respondents which include five

male and seven female respondents feel it is neutral that

Guardian reflect on a standard pharmateucial stores. One

male respondent voice out his disagreement and stated that

most Guardian store are too packed with products which is all

over the place and that he had difficult time browsing all over

the store before he can find the right product, at the wrong placement.

The pie chart shown customers’ agreement towards the effectiveness of Guardian’s

security system. A total of ten respondent stated that Guardian’s security system are

acceptable and they are comfortable doing their shopping there. Another eight respondents

strongly stated that Guardian is very particular on their shoppers’ security since most

Guardian stores are located in close shopping mall. Besides, every Guardian stores are

complete with close circuit security system and that they provide watchable security

television at every front payment counter. All these services had trigger customers’

confidence to do their shopping safely at every Guardian store nationwide.

CONCLUSION

Good customer service is the essential in any business. We can offer promotions and

slash prices to bring in as many new customers as we want, but unless we can get some of

those customers to come back and repurchase, our business won't be profitable for long.

Good customer service is all about bringing customers back and having them feeling

happy and satisfied. If the customer is happy, they will be more than willing to pass positive

feedback about our business to others, who may then try the product or service we offer for

them.

A good salesperson can sell anything to anyone. But it will be the approach to

customer service that determines whether or not he’ll ever be able to sell that customer

anything else. The golden rule of good customer service is all about forming a relationship

with customers.

Through this research, it can be conclude that most customer feel comfortable in the

way Guardian pharmacies conduct its businesses. It is only natural that some customer

might complaint once in a while since no business is perfectly managed. However, Guardian

must remember to always strive for the best and holding hard to its motto ‘The One You

Trust’ since service inconsistency may result in losing customer to competitors.

RECOMMENDATIONS

Here is some recommendations that Guardian management may applied in order to

improve its services and performance level:

1. Don't make promises unless you will keep them.

Reliability is one of the keys to any good relationship, and good customer service is no

exception. If you make promises, make sure it is applied or delivered as promised.

Otherwise, don't mention it. Otherwise, customer will feel cheated and having hard time

trusting on other future promises, no matter how attracting the business is.

2. Listen to your customers.

It is disappointing to tell someone what we want or what our problem is and then

discover that the person hasn't been paying attention at all. Frustration will only drive

customer away. Instead, let the customer talk and show him that we are listening by making

appropriate responses, such as suggesting how to solve the problem.

3. Deal with complaints.

No one likes hearing complaints. But if we care to give the complaint some attention, we

may be able to please that one person, and position our business to reap the benefits of

good customer service and repeat purchase.

4. Train staff to be always helpful, courteous, and knowledgeable.

Train and talk to those staff about good customer service and motivate them regularly.

Most importantly, give every member of the staff enough information and power to make

small customer-pleasing and problem- solving decisions, so that they never have to refer to

management.

5. Take the extra step.

For instance, if someone walks into the store and asking to help them find something,

don't just point out direction. Lead the customer to the item. Better yet, wait and see if he has

questions about it, or further needs. Whatever the extra step may be, if you want to provide

good customer service, take it. They may not say so to you, but people notice when people

make an extra effort and will tell other people.

ATTACHMENT

QUESTIONNAIRE

A Research on Service Quality of Guardians Pharmacies

Dear Respondent,

We are Business Faculty students’ of MARA University of Technology, Shah Alam. We are doing research project on Service Quality of Guardians Pharmacies. Your completion of the following questionnaire will be a great help to this study due to your experience of being Guardian’s customers. Please be noted that your responses will be kept strictly confidential and will only be use for academic research purposes. Your support will be greatly appreciated.

Thank you for your cooperation.

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SECTION A: CUSTOMER PROFILE

Instruction: Please place ( √ ) on each of the questions answered.

1. Gendera) Maleb) Female

2. Agea) Below 20b) 21 - 30c) 31 - 40d) 41 and above

3. Do you recognize Guardian stores?a) Yesb) No

4. Have you visit Guardian stores before?a) Yesb) No

5. Have you ever purchase Guardian’s products?a) Yesb) No

SECTION B: GUARDIAN’S SERVICE PERFORMANCES

Instruction: Please indicate your degree of agreement with the following 10

statement towards Guardian’s performance on the services they have provided.

You should rank each statement as follows:

Strongly Neutral Strongly

Disagree Agree

1 2 3 4 5

STATEMENT SCORE

1. Guardian operating hours is convenient to customer.

2. Guardian’s provide variety of products for customer to choose from.

3. Products provided by Guardian are safe and approved by the Ministry of Health.

4. Guardian’s staff is willing to respond to customer requests anytime.

5. Guardian’s staff communicate in a language that customer understand.

6. Guardian’s staff understands the specific needs of the customer.

7. When customer has problems, Guardian’s staff shows enthusiasm to serve them.

8. Guardian’s coupon collection system encourage customer to make purchases.

9. Guardian’s ambiance reflects a relaxed and enjoyable shopping experience.

10. Guardian’s management is able to provide a sense of security for customer to do their shopping safely.