Customer's perceptions of business units within an agricultural business in South Africa
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Date
11-Nov
Authors
Alsemgeest, Liezel
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Afrikaans: Die voordele van die bestuur van kliënteverhoudings bring kritieke faktore soos
kliëntetevredenheid en loyaliteit na vore. Klantetevredenheid is ʼn goednagevorste
bestuursaspek waarna al as “God, King and beyond” verwys is. Maatskappye se
oorlewing word deur klantetevredenheid en/of positiewe klantepersepsie bepaal omdat
die bestaan en groei van maatskappye van klante se herhaalde en toenemende
aankope op grond van positiewe gevoelens jeens die maatskappy afhang. Verder kan
klantetevredenheid die goeie reputasie van ʼn maatskappy uitbou en tot positiewe
persoonlike reklame lei wat weer nuwe klante kan lok.
Alhoewel die landbousakesektor ʼn belangrike middel tot landbouontwikkeling in Suid-
Afrika is, is navorsing oor klantetevredenheid by landbouverwanteklante skaars.
Landbouondernemings (voorheen bekend as koöperasies) is daarop geskoei dat hulle
deur samewerking tussen verskeie boere beter dienste en produkte teen verlaagde
pryse kan bekom wat waarde tot die boer op sy plaas kan toevoeg (boergesentreerd).
Koöperasies was ʼn lewensvatbare ondernemingsvorm tot en met 1996 toe die
Bemarkingsbeheerraad en gesubsidieerde rentekoerse afgeskaf is. Die meeste
landboukoöperasies is in beleggersgeoriënteerde firmas (BOF’s) omskep met die
hoofoogmerke winsgewendheid en die handhawing van waardeerbare aandeelpryse
(maatskappygesentreerd). Landbouondernemings is kompleks omdat die klante van ʼn
landbouonderneming ook in die meeste gevalle die aandeelhouers van die maatskappy
is. Landboumaatskappye dien ook ‘n nismark (boere) en die verhouding tussen die
onderneming en die klante verskil van diè van ander industrieë.
Tradisionele klantetevredenheidsnavorsing fokus op die gebruik van die SERVQUALmetode,
wat in der waarheid slegs dienskwaliteit toets. Hierdie studie stel dit ten doel
om die meetinstrument te vereenvoudig en ook ander klantetevredenheidsaandrywers
by te voeg, naamlik tevredenheid rakende prys, produk, personeel, diens en bestuur. ʼn
Landbouonderneming bestaan uit verskeie sake-eenhede wat as kleiner ondernemings
bestuur word en almal deel van die groter landbou “sambreel”-maatskappy uitmaak.
Die hoofoogmerke van hierdie studie is dus om die verhouding tussen die
klantetevredenheidsaandrywers (prys, produk, diens, personeel en bestuur) van die onderskeie sake-eenhede te bepaal en dit met die winsgewendheid van hierdie
eenhede in verband te bring; en om die impak van hierdie veranderlikes op
klantetevredenheid ten opsigte van die maatskappy te bepaal.
Die sekondêre empiriese doelwitte van die studie behels om te bepaal watter van die
klantetevredenheidsaandrywers die grootste impak op klantetevredenheid ten opsigte
van die algehele maatskappy het; watter van die sake-eenhede die grootste impak op
algehele tevredenheid het; of die gebruiksfrekwensie van die onderskeie sake-eenhede
die algehele tevredenheid met die landbouonderneming beïnvloed; en, laastens, of
klante se persepsie rakende die prestasie van die sake-eenhede ʼn invloed op
winsgewendheid het.
Die studie was kwantitatief van aard en het gebruik gemaak van vraelyste wat per
gewone pos na die algehele populasie (bestaande uit die lede van ʼn groot
landbouonderneming in Sentraal Suid-Afrika wat meer as R100 000 bydra tot die
omset van die landbouonderneming) gestuur is. Altesaam 963 vraelyste is uitgestuur
en 345 bruikbare vraelyste is teruggestuur. Die responskoers was dus 35,8%.
Die vernaamste resultate toon ʼn statisties beduidende verband tussen tevredenheid
ten opsigte van kleinhandelswinkels, versekering en meganisasie (werkswinkels) en
algehele klantetevredenheid – wat daarop dui dat om algehele klantetevredenheid te
verhoog, tevredenheid ten opsigte van hierdie drie sake-eenhede eerste aandag moet
geniet. Produk, diens en tevredenheid met bestuur het as
klantetevredenheidsaandrywers al drie ʼn statisties beduidende invloed op algehele
klantetevredenheid. Verder, toe die onderskeie aandrywers inherent aan die
onderskeie sake-eenhede teen algehele klantetevredenheid getoets is, het die
resultate getoon dat daar twee beduidende aandrywers inherent aan ʼn sake-eenheid
is, naamlik kleinhandelswinkelproduk en graanbemarkingsprys. Hierbenewens toon
statisties beduidende resultate dat die gebruiksfrekwensie van ʼn sake-eenheid die
mate van klantetevredenheid weerspieël (behalwe in die geval van
kleinhandelswinkels). Elke sake-eenheid se gemiddelde bydrae tot netto wins is oor ʼn
tydperk van vyf jaar bereken en met sy gemiddelde prestasie vergelyk. Die grafiek toon
ʼn definitiewe korrelasie tussen wins en klantetevredenheid.
Kleinhandelswinkels as ʼn sake-eenheid het interessante resultate opgelewer wat
aandui dat kleinhandelswinkelpryse, kleinhandelsproduk, kleinhandelswinkelpersoneel
en kleinhandelswinkeldiens die grootste impak op al die algehele
klantetevredenheidsaandrywers het. Hiervolgens beskou klante kleinhandelswinkels as
die “venster” van die landbouonderneming. Respondente is ook gevra om aan te dui
wat hulle as die hoofdoelwitte van die landbouonderneming beskou teenoor wat hulle
voel die doelwitte behoort te wees. Van groot belang was die beduidende resultate
waarvolgens bepaal is dat respondente die doelwitte as synde maatskappygesentreerd
waargeneem het, maar gevoel het dat die doelwitte boer-gesentreerd behoort te wees.
Daar word spesifiek aanbeveel dat kleinhandelswinkels verbeter word en dat die
beskikbaarheid en kwaliteit van kleinhandelswinkels verhoog word om
klantetevredenheid te maksimeer.
English: The benefits that customer relationship management bring forth are critical factors such as customer satisfaction and loyalty Customer satisfaction is a well-researched subject in Management and has been referred to as God, King and beyond. Companies are dependent on customer satisfaction and/or positive customer perceptions in order to survive, in that the existence and growth of companies depend on customers’ repeated and increased purchases due to positive feelings towards the company. Also, customer satisfaction may increase the good reputation of a company and lead to positive wordof- mouth advertising that may in turn bring in new customers. Agricultural businesses are an important vehicle of agriculture growth in South Africa; however, research on customer satisfaction among agricultural business customers is scarce. Agricultural businesses (previously known as cooperatives) were established on the notion that through cooperation between the various farmers, they could obtain better services and products at reduced prices that would add value to the farmer on his farm (farmer-centred). Cooperatives were a viable business form until 1996, when the Marketing Control Board and subsidised interest rates were abolished. The majority of the agricultural cooperatives were converted to investor-oriented firms (IOFs), that had the primary goals of being profitable and maintaining a valuable share price (corporate-centred). Agricultural businesses, however, are complex due to the fact that the customers of an agricultural business are in most cases also the shareholders of the company. Also, agricultural businesses serve a niche market (farmers) and the relationship between the organisation and its customers differs from that of other industries. Traditional customer satisfaction research has focussed on using the SERVQUAL method, which in effect only tests service quality. This study aims to simplify the measuring instrument, but also add other drivers of customer satisfaction; namely, satisfaction concerning price, product, personnel, service and management. The agricultural business consists of various business units that are managed as smaller businesses, which all form part of the larger agricultural “umbrella” company. It is, thus, the primary objective of this study to determine the relationship between the drivers of customer satisfaction (price, product, service, personnel and management) of the various business units and link it to the profitability of these units; and to determine the impact of these variables on the customer satisfaction with the company. Secondary empirical objectives include determining which of the drivers of customer satisfaction have the biggest impact on customer satisfaction of the overall company; determining which of the business units have the biggest impact on overall satisfaction; determining if the frequency of the use of the different business units affect the overall satisfaction of the agricultural business and lastly, determining whether the perception of performance by customers of the business units has an influence on profitability. The study was of a quantitative nature, making use of mailed questionnaires sent to the total population, that is, members of a major agricultural business in Central South Africa that provide more than R100 000 in business to the agricultural business. A total of 963 questionnaires were sent out and 345 useable questionnaires were returned, making the response rate 35.8% of the total population. The main results indicated that satisfaction concerning retail shops, insurance and mechanisation (workshops) have a statistically significant relationship with overall customer satisfaction, which indicates that in order to increase overall customer satisfaction, satisfaction with these three business units should be looked at first. Product, service and satisfaction concerning management, as drivers of customer satisfaction, all have a statistically significant influence on overall customer satisfaction. Also, when the various drivers inherent in the various business units were tested against overall customer satisfaction, the results indicated that there were two significant drivers inherent in a business unit, namely retail shops product and grain marketing price. In addition, statistical significant results indicated that the more often a business unit is used, the more satisfied customers are (except in the case of retail shops). The average contribution to net profit of each business unit was calculated over a five year period and it was compared to the average performance of each business unit. The graph indicated that there is a definite correlation between contribution towards profit and customer satisfaction. Retail shops as a business unit provided interesting results that indicated that retail shops price, retail shops product, retail shops personnel and retail shops service had the biggest impact on all the overall drivers of customer satisfaction. This indicates that retail shops are seen as the “window” to the agricultural business by the customers. The respondents were also asked to indicate what they perceived to be the primary objectives of the agricultural business versus what they felt the objectives should be. Very importantly, the results were significant in determining that they perceived the objectives of the agricultural business to be company/corporate-centred. In contrast, they felt the objectives should be farmer-centred. Specific recommendations were made with regard to bettering especially retail shops and increasing the availability and quality of retail shops product in an effort to maximise customer satisfaction.
English: The benefits that customer relationship management bring forth are critical factors such as customer satisfaction and loyalty Customer satisfaction is a well-researched subject in Management and has been referred to as God, King and beyond. Companies are dependent on customer satisfaction and/or positive customer perceptions in order to survive, in that the existence and growth of companies depend on customers’ repeated and increased purchases due to positive feelings towards the company. Also, customer satisfaction may increase the good reputation of a company and lead to positive wordof- mouth advertising that may in turn bring in new customers. Agricultural businesses are an important vehicle of agriculture growth in South Africa; however, research on customer satisfaction among agricultural business customers is scarce. Agricultural businesses (previously known as cooperatives) were established on the notion that through cooperation between the various farmers, they could obtain better services and products at reduced prices that would add value to the farmer on his farm (farmer-centred). Cooperatives were a viable business form until 1996, when the Marketing Control Board and subsidised interest rates were abolished. The majority of the agricultural cooperatives were converted to investor-oriented firms (IOFs), that had the primary goals of being profitable and maintaining a valuable share price (corporate-centred). Agricultural businesses, however, are complex due to the fact that the customers of an agricultural business are in most cases also the shareholders of the company. Also, agricultural businesses serve a niche market (farmers) and the relationship between the organisation and its customers differs from that of other industries. Traditional customer satisfaction research has focussed on using the SERVQUAL method, which in effect only tests service quality. This study aims to simplify the measuring instrument, but also add other drivers of customer satisfaction; namely, satisfaction concerning price, product, personnel, service and management. The agricultural business consists of various business units that are managed as smaller businesses, which all form part of the larger agricultural “umbrella” company. It is, thus, the primary objective of this study to determine the relationship between the drivers of customer satisfaction (price, product, service, personnel and management) of the various business units and link it to the profitability of these units; and to determine the impact of these variables on the customer satisfaction with the company. Secondary empirical objectives include determining which of the drivers of customer satisfaction have the biggest impact on customer satisfaction of the overall company; determining which of the business units have the biggest impact on overall satisfaction; determining if the frequency of the use of the different business units affect the overall satisfaction of the agricultural business and lastly, determining whether the perception of performance by customers of the business units has an influence on profitability. The study was of a quantitative nature, making use of mailed questionnaires sent to the total population, that is, members of a major agricultural business in Central South Africa that provide more than R100 000 in business to the agricultural business. A total of 963 questionnaires were sent out and 345 useable questionnaires were returned, making the response rate 35.8% of the total population. The main results indicated that satisfaction concerning retail shops, insurance and mechanisation (workshops) have a statistically significant relationship with overall customer satisfaction, which indicates that in order to increase overall customer satisfaction, satisfaction with these three business units should be looked at first. Product, service and satisfaction concerning management, as drivers of customer satisfaction, all have a statistically significant influence on overall customer satisfaction. Also, when the various drivers inherent in the various business units were tested against overall customer satisfaction, the results indicated that there were two significant drivers inherent in a business unit, namely retail shops product and grain marketing price. In addition, statistical significant results indicated that the more often a business unit is used, the more satisfied customers are (except in the case of retail shops). The average contribution to net profit of each business unit was calculated over a five year period and it was compared to the average performance of each business unit. The graph indicated that there is a definite correlation between contribution towards profit and customer satisfaction. Retail shops as a business unit provided interesting results that indicated that retail shops price, retail shops product, retail shops personnel and retail shops service had the biggest impact on all the overall drivers of customer satisfaction. This indicates that retail shops are seen as the “window” to the agricultural business by the customers. The respondents were also asked to indicate what they perceived to be the primary objectives of the agricultural business versus what they felt the objectives should be. Very importantly, the results were significant in determining that they perceived the objectives of the agricultural business to be company/corporate-centred. In contrast, they felt the objectives should be farmer-centred. Specific recommendations were made with regard to bettering especially retail shops and increasing the availability and quality of retail shops product in an effort to maximise customer satisfaction.
Description
Thesis (Ph.D.(Business Management))--University of the Free State, 2011
Keywords
Agriculture -- Economic aspects -- South Africa, Farmers -- South Africa -- Economic conditions, Customer relations -- Management, Agricultural industries -- South Africa, Consumer satisfaction