Evaluating Zara’s Customer Service

CHAPTER 1 INTRODUCTION

1.0 Introduction

This chapter provides a basis for the research which is going to be undertaken. It provides a background, rationale, aims and objectives of the study and a structure of the dissertation.

1.1 Rationale of the study

The aim of this study is to identify and measure any differences in delivery of customer service by Zara Womenswear in Scotland from both a consumers and service providers perspective. Good customer service is important to an organisation as satisfied customer can be hugely beneficial to an organisation. Equally, bad customer service can leave customers unhappy and dissatisfied, which can be detrimental to an organisation (Kim, 2008). Organisations must work hard to keep customers and build their trust in their brands. Unless they have a good reason to stay customers will go to competitiors (Bhagat, 2012). Good customer service is achieved by meeting the needs and desires of all customers (Bhagat, 2012). When surveyed, 51% of consumers said that customer service is much more important than price, they are willing to pay more for the right experience (Jasmand, Blazevic and de Ruyter, 2012). Customer service covers a series of activities designed to enhance the experience of the customers. Jerger and Wirtz (2017), described customer service as providing and delivering professional, helpful and high-quality service and assistance before, during and after purchase (Hughes, 2016). Word of mouth is the most powerful method of communication. When organisations provide good customer service, people will speak highly of you, remember your brand and are likely to repeat custom (Jasmand, Blazevic and de Ruyter, 2012). Bygballe, Bo and Gronland (2012), backs this up when stating what customers say can have a huge impact on your business performance. Studies show that 58% of customers end a business relationship due to as little as one encounter of poor customer service. Some organisations do not understand how big an impact poor customer service can have on their bottom line (Misopoulos et al., 2014). Hughes (2016), states the sole purpose of customer service is to ensure the expectations of the customers are met and they are satisfied with the outcome. In order for an organisation to analyse and understand if they are being successful or unsuccessful in a particular department they must first understand their customers’ expectations (Bygballe, Bo and Gronland, 2012) If an organisation cannot identify customer expectations and analyse the gaps successfully they are never going to improve (Jerger and Wirtz, 2017). When organisations have gaps in their customers service the best way to close these gaps is by having good knowledge of your customers’ expectations, this can be done effectively by using Parasuraman’s Gap model (Parasuraman, 1991). The gap model is examined by 5 different gaps; the customer gap, the knowledge gap, the policy gap, the delivery gap, the communication gap (Parasuramen et al 1991). This allows weaknesses to be exposed at different stages of an organisations operations, for example poor knowledge of product or service, poor service design, failure to keep up to date with staff training, weakness in employee performance (Misopoulos et al., 2014). If an employee is not performing as well as they could be, The Gap Model will show this, allowing recommendations to be considered to help improve quality of service. Upon evaluating if there are any gaps in Zara customer service, it is suggested there may be areas of improvement for the future (Kim, 2008). The research focuses on any gaps in expected vs actual service of zara customers within the Scottish region. Zara are market leaders within the retail sector and while Zara’s sales revenue continues to outperform all Inditex stores their customer complaints have increased by 4% in the last year (Zara, 2018). On this basis, the researcher has been motivated to explore their customer service using Parasuraman’s gap model.

1.2 Aims and Objectives

The aim of this study is to identify and measure any differences in delivery of customer service by Zara Womenswear in Scotland from both a consumers and service providers perspective. This will be fulfilled through the following objectives;

To establish if there is a contrast between customers general expectations when shopping in a retail store against what Zara perceive their customer expectations to be.

To identify any differences between Zara perception of customer expectations against what they teach their employees to deliver.

To identify if there are any differences between what Zara teach their employees to deliver against the service delivered.

To identify any discrepancies between what Zara say they will/can deliver to their customers, and the actual service delivered to them.

To identify any deviations between what the customer expectations of the service are and what they receive.

1.3 Structure

The research structure is as follows: Chapter 1 provides the background, rationale and aim and objectives for the study. Chapter 2 Literature Review provides a critical view of the current academic literature related to customer service, Inditex and the gap model. Chapter 3 Methodology identifies and provides analysis and justification for the methodological design of this study. Chapter 4 Findings and discussion relates to the expected and actual customer service of Zara. Chapter 5 Conclusions and recommendations providing a summary of research findings, strengths, limitations and any future recommendations. Ending with a list of references and appendices.

CHAPTER 2 LITERATIRE REVIEW

2.0 Introduction

The focus of this section is to evaluate and discuss current literature regarding in relation to: understanding the consumer, role of the employee, the gap model and Inditex. The purpose of the review is to gain a better understanding regarding individuals’ thoughts on these concepts and identify gaps between current literature and Zara customer service.

2.1 Understanding the Consumer

According to Reid (2010), customer satisfaction is the single most important performance driver in an organisation and a key component achieving this is delivering customer service. This is backed up by Wu (2007), who states customer satisfaction is the main factor when running a business as this helps generate more profit for an organisation and ensures repeated custom. Söderlund (2016), further agrees by stating once an organisation identify and address issues within their customer service, will be able to increase customer satisfaction levels. Chen, Martin and Merchant (2009), state that the level of customer satisafaction an organisation has is closely linked with how well they perform in anticipating their customer needs. Being able to recognise and identify customer needs and expectations is important for an organisation to achieve maximum level of satisfaction from customers however, it is also very difficult (Barat, 2016). (Söderlund, 2016), agrees with this when stating once you know exactly what your customer wants it becomes a lot easier to deliver. Customer satisfaction plays a big role in organisations and complaints can be a measure of how well they are performing against customer’s expectations. Studies show that over 91% of dissatisfied shoppers will never purchase service from you again Holland (2015). However, this can be resolved if employees make an effort to remedy customer complaints. 82-95% of customers who make complaints will stay loyal to you if resolved effectively (Reid, 2011). Customer satisfaction can be gained by being reliable and attentive to your customers. Due to the large competition within industries, customer loyalty is hard to maintain. High levels of loyal customers is a good measure of how well you understand your customers (Lee, 2014). Chen, Martin and Merchant, (2009) states that to gain satisfied customers organisations must ensure that store attributes are as important as the customer service employees provide. Within retail stores, having to wait in long ques generates high compliant levels (Lui and Piccoli, 2016). Lee (2014), further agrees when stating a messy and dirty environment for shoppers is not going to leave them satisfied. Customer satisfaction is gained by providing customers with an aesthetically pleasing environment to shop in, this draws them into products they may not have previously looked at (Gates, Heffernan and Sudore, 2015). Lui and Piccoli (2016), agrees when stating making an effort to keep the store clean and tidy helps customers became more engaged in all products and increases sales.

Wu (2007), states organisations must realise that customer service adds value to a product or service, customers do not only focus on the product itself but also on its added value; interactions with employees, the store layout, waiting times etc. Good customer service builds an enduring relationship between the employee and consumer (Minns, 2014). Jenkins (2011), further develops this point when stating the level of customer service offered by an organisation affects whether the customer has a negative or positive experience. Shannon (2006), agrees when stating a bad customer service experience can drive a customer away, leading them to go to competitors.

2.2 Role of the employee

Babbar and Aspelin (2002), state that good customer service comes from anticipating and understanding customer needs on an emotional level, this enables employees to go above and beyond customers’ expectations. When employees meet the customer needs by delivering high level of expertise, they demonstrate that they are well trained and make the customer feel that they work for an organsation who values them and cares about their customers (Yoo, Arnold and Frankwick, 2012). Piaralal et al (2016), states that customers are content when employees are able to deal with their enquires well. Shannon (2006), disagrees by saying all customers look for is employees to have a smile on their face. However, Holland (2015), argues the first step in achieving good customer service is deeper than this, you must have patience and listen to your customers needs, this helps organisations improve communications, processes and operations. Darlington (2016), agrees when stating that recognizable customer service comes from being able to understand the product or service being sold therefore being able to fulfil the customers wants and needs. Raub and Liao (2012), further develops this point when they say good customer service is when employees have a wide product knowledge allowing them to substitute items for customers or offer alternatives. To provide good service, you must ensure you hire employees who you know are right for the job. Organisations found that they experienced less customer complaints when hiring employees who were friendly and outgoing, meaning customers felt more welcomed as they entered the store (Reid, 2011). It is difficult to have the ability to please all customers as they all have different needs and expectations. What satisfies one customer will not necessarily satisfy all customers, meaning organisations would have to pay attention to each individual customer ensuring their needs are met and deliver good service (Minns, 2014). An important attribute for an employee to have in order to provide good customer service is being able to identify “silent customers.” They don’t complain or make a fuss, they just don’t come back (Lee, 2014). (Raub and Liao, 2012) agrees when saying it’s difficult to know the real level of customer dissatisfaction as not all poor interactions result in customer complaints.

Vanitha (2012), believes that customer satisfaction is gained when employees are trained in ways to identify and understand customers who are not happy They are able to intervene or take steps to improve the service and resolve the issue before the customer has a chance to complain. This closely links with Darlington (2016), who states that a good way of measuring employee customer service is by putting yourself in the customers position. Most employees wouldn’t be happy receiving the service they provide (Minns, 2014). Piaralal et al (2016), develops this point when saying employees who receive poor customer service bring a negative attitude to work with them and in turn provide poor customer service. Vildova at al., (2015), states that differences between customer expectations and customer service delivered is what causes gaps in customer satisfaction. Barat (2016), agrees with this point when stating organisations gain better understanding of how to increase customer satisfaction by turning customers anticipated service into the actual service they receive.

2.3 Gap Model

A “GAP” model is a method organisations can use to measure customer service and try to achieve more satisfied customers. The Gap Model was developed and published in 1985 by Parasuraman et al (1991) and was then further developed and modified by the same authors in 1988 and 1991. Parasuraman et al (1991) described the gap model as measuring gaps within customer expectations and actual performance of the quality of service customers receive. As well as discussing how customers assess quality from both their own and the company perspective. It’s purpose is to identify the exact causes of the gaps in order to provide room for improvement.

Gap 1 is the difference between the customers’ expectations of the service provided and what the company thinks the customers’ expectations are. If a knowledge gap exists managers may be incorrectly interpreting consumers expectations or are trying to meet the wrong consumer needs. Gap 2 is the difference between Zara perception of expectations against the rules and guidelines for employees to follow. Some organisations can experience difficulty translating consumer expectation into specific service quality. This gap may see consumers seek the same product from another supplier who offers better service. Gap 3 is the difference between rules and guidelines employees follow against the service they are providing. This gap exposes weakness in employee performance. This can occur if organisations have failed to train their employees correctly even though they have good processes and guidelines in place. Gap 4 is differences between what Zara say they will deliver against the service delivered. This can occur when organisations over-promise in their advertising but fail to meet their delivery target. Gap 5 is the differences between what customers’ expectations of service are and the service they receive. This is the most important gap as in an ideal world the customer expectation would be almost identical to the customers perception. Holm at al., (2012) stated there is a need for the gap model as customers are almost always disappointed with the level of service they receive, due to their anticipated service being much higher than the actual service they receive. Gonroos (2007), further agrees when stating anticipated service, mainly due to word of mouth, encourages customers to make an opinion of an organisations service before visiting. The gap model goes into a great deal of depth which means organisations can carry out lots of analysis when looking at “perception gap” drivers (SOURCE). (Mack et al., 2000), describes the gap model as paying close attention to the causes of service failure and the drivers which are causing gaps and then looking for ways to improve these failures to gain customer satisfaction. Many authors doubted that expectations and perceptions can be analysed as two different components (SOURCE). Gardan, (2014), stated that the perception of customer service is to do with the emotion of a customer and cannot be compared with the service they receive as a true view of how the organisation is performing. Moon, (1996), stated that the gap model measurement is meaningless as expectations will always exceed perceptions. However, Parasuraman et al (1985), argued that there is evidence to support that in the long-term companies do benefit from analysing perceptions of service.

The literature review shows that there is a lot of literature available in relation to the gap model however, there is a lack of literature available about the gap model in relation to the fashion retail sector. This will allow readers to gain a clearer understanding of the impact customer service has on customer satisfaction and therefore the organisations success.

2.4 Inditex

Inditex is a Spanish brand and is one of the largest retailers in the world. They are the owners of 8 brands; Zara, Zara home, Massimo Dutti, Pull and Bear, Bershka, Stradivarius, OYSHO and Uterque (Inditex, 2018).

Zara accounts for two thirds of Inditex sales. As is immediately obvious from the next chart, Zara returns the highest percentage of sales against the other brands within the group. This may also may indicate higher sales as well. However, Zara stores are also much bigger than those of the other formats. Zara is in every way the flagship operation of the group (Dover, 2018)

Inditex state their business model is built around their customers and their main objective is to respond to the needs of their customers. They believe knowing and delivering exactly what the customer want is the key to a good business. Every morning before the teams starts there day they have a group discussion about how they can serve their customers (Inditex, 2018). A study in 2016 of female internet users aged 16+ who have heard of the brand Zara described it as stylish but over rated with bad customer service (Dover, 2018). This has been backed up by Mazaira, González and Avendaño (2003) who stated that in a recent survey 43% of people who shopped in Zara thought customer service was poor and the brand was overrated. Inditex believe that the key to happier customers is speedier service due to today’s customers being short of time. They are working to promote their online offering and digital innovation. In 2016 they introduced mobile check out systems and click and collect stores which allows customers to collect items ordered on the same day (Dover, 2017). Zara has continued to perform well with both sales and profit increasing between 2016-17 (Dover, 2017). Fry (2015) believes this is down to Zara being such a stylish brand and not down to the service they are offering their customers. Zara state that their customers are important to them and imply they provide good customer service. This provides a gap for new research in order to understand if customer expectations are being met by the service Zara is providing. SOURCE

2.5 Conclusion

Current academic literature has shown that being able to understand what your customers are looking for can benefit your organisation massively. Providing your customers with good customer service will guarantee loyal customers, but only that but customers are also looking for an aesthetically pleasing environment to shop in. There is a lack of literature about the relationship between customer satisfaction and the role that the employee plays in the fashion retail sector. In order to better understand the level of service customers expect there is a need to explore this relationship further especially since the current academic literature has not yet came to a consensus. There are large amounts of literature available in relation to understanding consumers, the role of the employee and the gap model. However, there is a lack of up to date literature concerning the gap model relating to the fashion retail sector. Further research is required to gain an understanding of customer service quality and customer expectations using the gap model within the fashion retail sector. Chapter 3, Methodology will focus on the reasoning of the research design for this study. It will also look at the philosophical stance, strategy and approach along with data collection and data analysis methods.

CHAPTER 3 METHODOLOGY

3.0 Introduction

The literature review identifies a need for additional research regarding customer service, customer satisfaction and the gap model. This chapter highlights the philosophy, research approaches, research methods and data analysis that were adopted in order to meet the objectives of this investigation. It explains and justifies why positivist, inductive, quantitative and qualitative research was suitable. This chapter will also demonstrate the limitations of the chosen method and ethical issues which were addressed.

3.1 Research Aim

The aim of this study is to identify and measure any differences in delivery of customer service by Zara Womenswear in Scotland from both a consumers and service providers perspective. This will be fulfilled through the following objectives;

3.2 Research Objectives

To establish if there is a contrast between customers general expectations when shopping in a retail store against what Zara perceive their customer expectations to be.

To identify any differences between Zara perception of customer expectations against what they teach their employees to deliver.

To identify if there are any differences between what Zara teach their employees to deliver against the service delivered.

To identify any discrepancies between what Zara say they will/can deliver to their customers, and the actual service delivered to them.

To identify any deviations between what the customer expectations of the service are and what they receive.

3.3 The Methodological Paradigm

A paradigm is a theoretical framework including theories, hypothesis and research methods within the research that takes place. A paradigm is a set of common agreements about how problems should be understood and addressed. (Wilson, 2014). It is a shared understanding of reality as different research methods involve different assumptions about how research should be conducted, the contributions it makes to a field and the role of the researcher (McMillan and Weyers, 2011). A positivism paradigm develop hypothesis from data already collected and can be tested to further expand the theory (Saunders, Lewis and Thornhill, 2012). It takes an objective view whilst allowing the research to have minimal interaction with their research participants (Wilson, 2014). A phenomenology paradigm accepts that there are differences between all human behaviour and this impacts the decisions made and actions taken (McMillan and Weyers, 2011). The researcher attempts to gain an understanding of the results of the primary research and tries to interpret why the results have turned out the way they are; these results will be inductive (Finlay, 2009). This research will use a phenomenology paradigm. This is appropriate as the research method being carried out uses people’s opinions to gather information in order to examine the perceptions and behaviours of employees and consumers of Zara (Shaw and Connelly, 2012).

3.4 Research Approaches

The research approach is the proposed plan for research that covers steps from broad assumptions to detailed methods of data collection and analysis (Wilson, 2014). There are two research approaches; inductive and deductive. A deductive approach is when existing data and theories are explored and collected to research a current problem or theory (Saunders, Lewis and Thornhill, 2012). A deductive approach gathers theories and develops a hypothesis, then designs a research strategy to test the hypothesis therefore this approach links back to the positivism paradigm (McMillan and Weyers, 2011). An inductive approach is when you carry out research based on observation and then turn the observation into concepts. It allows the researcher to build an understanding of the issue whilst collecting the data (Wilson, 2014). Inductive research involves looking at people and the context of the research allowing the researcher to develop and gain an understanding of the participants point of view (Saunders, Lewis and Thornhill, 2012). This links back to phenomenology paradigm. Both a deductive and an inductive approach was adopted for this research, this is referred to as triangulation. This approach was adopted as both inductive and deductive methods of research have been combined making it the most appropriate for this research (White and Rayner, 2003). This can give the researcher a more thorough understanding of what is being investigated (Wilson, 2014).

3.5 Research Methods

Data can be collected through both secondary and/or primary research (Clough and Nutbrown, 2012).

3.5.1 Secondary Research

Secondary research is data previously collected by other researchers for other purposes (Wilson, 2014). Main sources of secondary date come from publications, databases and internal records (Saunders, Lewis and Thornhill, 2012). A main advantage to using secondary data is that it is easily accessible and free, saving time and money (Clough and Nutbrown, 2012). However, secondary data can be a disadvantage as it is not shaped specifically for the research question therefore there may still be gaps, meaning more research would be required (Saunders, Lewis and Thornhill, 2012). Existing literature was collected from the database in the University and then critically evaluated. The literature review allowed for identification of credible sources to underpin the theory and help develop the data. The literature review identified gaps in the research which this study aimed to fulfil.

3.5.2 Primary Research

Primary research involves collecting data first hand using a range of tools for example interviews and questionnaires as opposed to relying on existing data sources (Wilson, 2014). Primary research can be carried out using either a qualitative or quantitative method.

3.5.2.1 Qualitative Research

Qualitative data refers to all non-numeric data, it focuses on extracting meaning from words (Saunders, Lewis and Thornhill, 2012). Qualitative data helps gain an understanding of underlying reasons, motivations and opinions, it helps develop ideas and hypothesis (Wilson, 2014). Qualitative research links back to the inductive research approach as it produces findings or concepts from the data collected (Clough and Nutbrown, 2012). There are many tools available to carry out qualitative research. The main tool is interviews which are used to obtain detailed information about feelings, perceptions and opinions (Saunders, Lewis and Thornhill, 2012). A one-to-one interview consists of detailed questions. Which the researcher can then use to explore further (Wilson, 2014). A focus group is another type of interview, this a group style interview which creates more of a discussion on the topic rather than individual interviews (Wilson, 2014). Observations is another tool available, this is when an individual’s behaviours in relation to the research aim are observed (Saunders, Lewis and Thornhill, 2012). The method used was face to face semi-structured interviews, interviews allow a researcher to gain in-depth insight into a person’s beliefs and attitudes towards the discussed topic (Wilson, 2014). This avoids consensus bias which you may get from carrying out a focus group (White and Rayner, 2003). Semi-structured interviews allow the interviewee the freedom to express their views in their own terms (Saunders, Lewis and Thornhill, 2012). A copy of the topic guide can be found in Appendix 1. Enquiry emails were sent out in order to conduct interviews with 4 members of staff at Zara (2 managers and 2 employees). A copy of the enquiry email can be found in Appendix 2,3,4 and 5. This sample size was chosen as it allows for strong correlations, differences and similarities to be found within the interviews. 2 managers and 2 employees were necessary as they work first hand with the customers. It also allowed for any differences between employee and manger opinions to be identified. I ensured all 4 participants were from 4 different Zara stores within the Scottish region to allow for a more honest reflection of the stores in Scotland. I understand that 8 representatives, one from each Zara store would have gave me a more honest reflection of the whole Scottish region, however due to time constraints I was unable to do this. Interview 1 took place on 28/02/19 12am in Zara Buchanan Street store. Interview 2 took place on 04/03/19 7pm in Zara Glasgow Fort store. Interview 3 took place on 07/03/19 6pm in Zara East Kilbride store. Interview 4 took place on 05/03/19 7:30pm in Zara Silverburn store. All interviews were recorded. A copy of the transcripts of interviews can be found in Appendix 6,7,8 and 9.

3.5.2.2 Quantitative Research

Quantitative research aims to measure numerical data and generate the results into statistics, in order to quantify variables such as attitudes and opinions (Saunders, Lewis and Thornhill, 2012). Quantitative research links back to a deductive approach as it involves the collection of statistical data. This type of research usually starts with a hypothesis and has many tools available (Saunders, Lewis and Thornhill, 2012). The main tool used to collect quantitative data is questionnaires. Questionnaires involves a set of questions based on the purpose of the study which aim to generate recipients’ thoughts and feelings (Wilson, 2014). Experiments are another tool that can be used to collect quantitative data, this involves using predictions to measure the probability of change of an independent variable causing a change of the dependant variable (Saunders, Lewis and Thornhill, 2012). A questionnaire can consist of different types of questions. The type used depends on the type of data being collected. Closed ended questions could be used, this is where respondent is given multiple options as answers and must chose a single option (White and Rayner, 2003). Questionnaires can also be in the form of Likert scales, these can be used to measure attitudes. This is when participants are asked to select their level of agreement to a specific statement. Likert scales style questions can be beneficial as they make results easily comparable and don’t force people to express an either or opinion (White and Rayner, 2003). Open ended questions are another type of question, these are the opposite of closed ended questions. This allows respondents to answer the question any way they would like, these can be useful if there is uncertainty in responses or greater detail is required (Saunders, Lewis and Thornhill, 2012).

3.5.3 Linking the Questionnaire to the Objectives

The table below demonstrates the rationale behind the questionnaire and attempts to link groups questions asked in line with objectives, it also states the type of questions used. A full copy of the questionnaire can be found in appendix 10.

Please note objective 2 was covered by qualitative research.

Questions 1-4 used a likert scale in an attempt to confirm that these factors related to employee behaviours are of high importance to consumers when shopping in a retail store. This was based on Babbar and Aspelin (2002) and Raub and Liao (2012) who state that good customer service is anticipating and understanding customer needs from employees who have a wide product knowledge allowing them to substitute items for customers or offer alternatives. It was decided a likert scale would be most appropriate as it allowed the respondent to show exactly how important these factors are to them.

Questions 5-9 used a likert scale in order to understand if these factors concerning store attributes are of high importance or not to consumers when shopping in a retail store, a likert scale enabled respondent to show exactly how important these factors are to them. This was based on Gates, Heffernan and Sudore (2015) when stating customer satisfaction is gained by providing customers with an aesthetically pleasing environment to shop in, this draws them into products they otherwise may not have looked at. Question 10 was used to establish which Zara store(s) respondents had shopped in to ensure it was a fair representation of the whole Scottish region. Questions 11-14 were based on research from Lee (2014) who states that being able to identify and evaluate the area’s leading to unsatisfied customers makes achieving satisfied customers much easier. Therefore, questions 11-14 were to establish once consumers had shopped in Zara which of the factors they did/did not receive from employees. Questions 17-21 used a likert scale to establish what service consumers did/did not receive from the store. This was based on Wu (2007) when stating customer satisfaction is the main factor when running a business as this helps generate more profit for an organisation as it ensures repeated custom. There are a number of options available when distributing questionnaires. A questionnaire can be carried out face-to-face which can allow for any misunderstandings about questions to be clarified (Wilson, 2014). Questionnaires can also be distributed through mail which involves the respondent filling out the questionnaire and mailing it back themselves, this method can often result in a low return rate (Saunders, Lewis and Thornhill, 2012). Another method of distributing questionnaires would be online through survey development software such as google forms and survey monkey. Distributing questionnaires online was chosen as most appropriate method for this research as it allows for a questionnaire to be distributed easily and quickly (Wilson, 2014). Facebook was chosen as the online platform for distributing as a high number of respondents can be reached due to the high number of online users. Choosing a sampling method helps to get the level of coverage required and ensures you have sufficient people/units within your work (Wilson, 2014). There are two methods of sampling; probability and non-probability. Probability sampling is when there is a known probability in the population selected and they all have an equal chance of being part of the sample (McMillan and Weyers, 2011). Non-probability is when the population don’t all have an equal chance of being chosen as the selection of participants is pre-selected (Saunders, Lewis and Thornhill, 2012). A non-probability sampling method was chosen for this research, as the questionnaire will be distributed via social media therefore respondents will choose to participate as appose to being randomly chosen. (White and Rayner, 2003). A pilot test was carried out on the questionnaire to 8 participants that met the sample criteria on 08/02/2019. This allowed for any problems when understanding the questions or technical problems when answering the questions to be identified. The problems identified in the pilot test were changed before the questionnaire was distributed. Quantitative data must be analysed statistically using SPSS. A descriptive test was used to analyse the data and form a table find the mean of the results. A chi squared test was used to better compare customer expectations with the service they received. Chi square test can be found in appendix 11. This allowed for the data from questionnaires to be stored appropriately and for the data to be converted into tables allowing for any differences to be easily compared.

3.6 Limitations of the Methodology

One limitation of this study is that only 4 interviews are being carried out in 4 Zara stores. Interviews in every store across the Scottish region would have allowed for a more accurate representation of the region. However, due to time constraints this was unable to be carried out. Due to the limited time frame available the sampling method is deemed appropriate. However, there is no certainty that the selected sample is representative of the population. Since the questionnaire was distributed online the identity of the respondents are unknown therefore there is no guarantee the respondents were women who had previously shopped in Zara. The use of online questionnaires meant there was a possibility of them not understanding the question and therefore providing inaccurate results.

3.7 Ethical Issues

An Ethics form was completed on 07/02/2019. See completed form in Appendix 12. Ethical considerations which will have to be taken into account in this research proposal would be to ensure all research participants are informed of the purpose of the study. Although enquiry emails have been sent to participants, I am aware that they may not wish to participate in an interview. All findings will have to be securely recorded and stored. Participants will be made aware that their participation is anonymous and voluntary, and if they wish to withdraw at any point they can. Participants will also be made aware that they are able to see the results of the data collected if required. Participants will be made aware their data with adhere to the Data Protection Act 1998. Participants of interviews will be asked to sign a consent of participation form before going ahead with the interview. These can be found in appendix 13.

CHAPTER 4 RESULTS AND DISCUSSION

4.0 Introduction

The purpose of this chapter is to analyse and present the findings of this research using quantitative research collected through online questionnaires and qualitative research collected through semi structured interviews.

4.1 Sample

A total of 100 questionnaire responses have been gathered and 4 participants have been interviewed to gather data to help gain an understanding of the customer expectations of service and the actual service Zara is providing. It was ensured that within 100 responses gathered from the questionnaire, the results provide representation across each of the Zara stores within the Scottish region.

A variety of employees from different stores took part in the research, their details are presented in the table below. In order to obtain anonymity only their initials are shown below.

Interviewees were employees from Glasgow Buchanan Street, Glasgow Fort, East Kilbride and Silverburn stores. As previously stated in Chapter 3 Interviewing different positions within different stores in the Scottish region enabled data to be gathered from different perspectives. However, due to time constraints it was not possible to interview an employee from all 8 stores, this would have given a more balanced representation of the whole region.

4.2. Objective 1: To establish if there is a contrast between customers general expectations when shopping in a retail store against what Zara perceive their customer expectations to be

4.2.1 Quantitative Research

The table above shows that all areas of customer service are important to customers when shopping in any retail store. “Offering alternatives if product not available” was deemed the least important to customers. However, it scored 4.22, showing that majority of respondents still scored between 4 agree and 5 strongly agree, therefore it is still showing to be very important. “Employees are helpful and deal with enquires efficiently” was shown to be the most important scoring 4.86.

Customers were asked what store attributes were important to them when shopping in any retail store. All attributes scored between 4 agree and 5 strongly agree meaning they were all very important to customers. “A variety of sizes available” was shown to be the most important attribute to customers scoring 4.82. “Waiting time at the changing room is short” was deemed least important out of all attributes however, still very important scoring 4.12.

4.2.2 Qualitative research

As you can see from the table above all interviewees are in agreement that “friendly” and “helpful” staff is important for customers when shopping in Zara. “Help them all the time” and “good knowledge of products” were also stated by interviewee 1 and 3 to be important when delivering good customer service.

4.2.3 Discussion

As discussed in previous literature being able to recognise and identify customer needs and expectations is important for an organisation to help achieve maximum level of satisfaction from customers (Barat, 2016).

Lee (2014) stated that one way that won’t leave your customers satisfied is having a messy and dirty environment for shoppers. Quantitative research shows that when shopping in a retail store, customers think it is important the store is clean and tidy, a variety of sizes are available and there are short waiting times at both the changing room and check out queue. This is reiterated by qualitative research. Interviewees stated that they think customers expect a clean, tidy and organised store with no obstacles on the floor. Quantitative research shows when shopping in a retail store, customers think it is important employees are friendly and welcoming, knowledgeable about products, can offer alternatives and deal with enquiries efficiently. Qualitative research states the same results as all interviewees were in agreement that when customers shop in a retail store they think they expect smiling, friendly and welcoming staff who are also helpful and have good knowledge of products. This is reiterating Reid (2011) who stated that organisations found that they experienced less customer complaints when hiring employees who were friendly and outgoing, this meant customers felt more welcomed as they entered the store. Through qualitative research customers have stated what they expect when shopping in a retail store, this has been echoed through quantitative research from customers and managers. Therefore, there is no contrast between customer expectations of service and what Zara perceive customer expectations to be meaning there is no gap in this area of Zara customer service.

4.3. Objective 2: To identify any differences between Zara perception of customer expectations against what they teach their employees to deliver.

4.3.1 Qualitative research: Rules and guidelines

All interviewees were in agreement that performance reviews and performance appraisals were something that is Zara policy. However, it is not something that has ever/does ever happen except from interviewee 4 stating they received one within their probation period.

All four interviewees were in agreement that very basic training was given at the beginning of employment. However, no training has been given since and there was no customer service specific training to help them deal with customers.

4.3.2 Qualitative research: Zara perception

Refer back section 4.2.2 for Zara perception of customer expectations

4.3.3 Discussion

Yoo, Arnold and Frankwick (2012) stated good service is achieved when employees meet the customer needs by delivering high level of expertise, this demonstrates that they are well educated and make the customer feel that they work for an organsation who values them and cares about their customers. Gates, Heffernan Sudore (2015) added customer satisfaction is gained by providing customers with an aesthetically pleasing environment to shop in, this draws them into products they otherwise may not have looked at. As shown through qualitative research Zara employees have an understanding that customers are looking for friendly and approachable staff who take the time to help them. This is reiterated by quantitative research where employees stated it was of high importance to them that employees were friendly, helpful, welcoming and knowledgeable of products. Qualitative research also showed that employees understood customers were looking to shop in a clean and tidy environment. Qualitative research shows that Zara employees are not given adequate level of staff training at the beginning of their employment, particularly in relation to dealing with customers. It was also shown that employees are not given any type of performance review or appraisal despite it being part of Zara policy. Therefore, it was identified there are differences between Zara’s perception of customer expectations against rules and guidelines their employees have to follow. Although employees were able to identify what customers would expect when shopping in a retail store, they are given no training or assistance to help them achieve this.

4.4. Objective 3: To identify if there are any differences between what Zara teach their employees to deliver against the service delivered

4.4.1 Quantitative research: Service delivered

Respondents were asked to score the level of customer of service they received from employees whilst shopping in Zara. All attributes scored between 1 strongly disagree and 3 neither disagree or agree, showing all attributes of customer service were not delivered well. “Offered alternatives if product not available” was the lowest scoring attribute at only 1.94. “Were knowledgeable about products” return the highest score at 2.77. However, this is still very low showing that customers receive a low level of service.

Respondents were asked when shopping in Zara what the store was like. All attributes scored between 2 disagree and 3 neither disagree or agree with the exception of “Waiting time at changing room was short” which scored the highest at 3.19. However, this is still a low score implying that this attribute was still not delivered very well. “Store was tidy” scored the lowest at 2.08.

4.4.2 Qualitative research

See section 4.3.1 for rules and guidelines employees have to follow.

4.4.3 Discussion

Previous literature in chapter 2 stated it is difficult to have the ability to please all customers as they all have different needs and expectations. What satisfies one customer will not necessarily satisfy all customers, meaning organisations would have to provide each customer individual attention ensuring their needs are met to deliver good service (Minns, 2014). Darlington (2016) states that recognizable customer service comes from being able to understand the product or service being sold therefore being able to fulfil the customers wants and needs.

Lui and Piccoli (2016) agree when stating making an effort to keep the store clean and tidy ensures customers become more engaged in all products, increasing sales. Lui and Piccoli (2016) expands when stating within retail stores, having to wait in long queues is always a big complaint. Quantitative research also showed that when customers were shopping in Zara the stores were not clean, tidy, have a variety of sizes or have short queues.

Quantitative research has shown that when customers were shopping in Zara the employees weren’t shown to be friendly, welcoming, helpful or able to offer alternative products. Yoo, Arnold and Frankwick, (2012) identifies good service as employees meeting the customer needs by delivering high level of expertise, they demonstrate that they have high levels of training and make the customer feel that they work for an organisation who values them and cares about their customers.Qualitative research has shown that employees are not given any customer service specific training when they start working in Zara or given any performance reviews or appraisals. Therefore, it was identified if there are differences between rules and guidelines employees have to follow in Zara against the service delivered. Employees were not shown to provide a good service to customers or satisfy them. This could be down to not been provided with proper training for them to be able to provide this.

4.5. Objective 4: To identify any discrepancies between what Zara say they will/can deliver to their customers, and the actual service delivered to them.

4.5.1 Quantitative research

See above section 4.4.1 for the actual service delivered to customers.

4.5.2 Qualitative Research

Interviewees were not all in agreement when answering this question. Interviewee 2 and 4 stated that they think they provide the type of customer service customers expect and try their best to always do so. Interviewee 1 and 3 both stated that they do not provide the type of customer service customers are looking for due to having so many jobs to do at once and not having the time to deal with their enquiries.

Despite interviewee 3 stating they try to keep on top of tidying the store all four interviewees are in agreement that the store is not kept tidy at all times. Interviewees were able to recognise that when customers are shopping in Zara the store is majority of the time messy. Interviewee 1 and 3 recognised that this was down to a low number of staff to keep on top of it. Interviewee 2 and 4 recognised the main complaint is the mess of the fitting room and interviewee 4 stated the store is not usually tidy until after closing time.

4.5.3 Discussion

As discussed in chapter 2 Reid (2011) stated that organisations found they experienced less customer complaints when hiring employees who were friendly and outgoing, this meant customers felt more welcomed as they entered the store. A messy and dirty environment for shoppers is not going to leave them satisfied. (Lee, 2014). Quantitative research shows that when shopping in Zara, customers found that employees were not friendly, helpful or offer any alternatives if products were not available. It was also shown that the stores were not clean, tidy or have a variety of sizes. Darlington (2016) states that recognizable customer service comes from being able to understand the product or service being sold therefore being able to fulfil the customers wants and needs. Qualitative research shows that employees understand what customers expect when shopping in Zara. However, 3 interviewees admit to not providing this service due the store being so busy, having so many jobs to do at once and there not being enough staff to do everything Although, employees were able to identify that the service employees are looking for is not what they are personally providing. It still varies from what Zara as a company state their service is like. Therefore, it was identified there were discrepancies between what Zara say they will/can deliver to their customers, and the actual service delivered to them. This could be down to a lack of staffing as interviewees felt that was the main reason that they don’t provide good customer service, they feel they have other jobs deemed “more important” to get done.

4.6. Objective 5: To identify any deviations between what the customer expectations of the service are and what they receive.

4.6.1 Quantitative Research: Employee attributes

As stated in 4.2 respondents were asked how important certain customer service attributes are when shopping in a retail store. All attributes scored between 4 agree and 5 strongly agree. “Important employees are helpful and deal with enquiries efficiently” scored the highest with 4.86. “Employees offered alternatives if product not available” was deemed the least important scoring 4.22. However, this is still a very high score showing that it too is important. Respondents were also asked what service they received from employees when shopping in Zara. “Employees offered alternatives if product not available” scored the lowest with 1.94. Employees were knowledgeable about products scored the highest with 2.77. However, this is still a very low score.

4.6.2 Quantitative Research: Store Attributes

As stated in 4.2 respondents were asked about the importance of store attributes when shopping in any retail store. “A variety of sizes are available” was deemed most important scoring 4.86. “Waiting time at the changing room is short” scored the lowest with 4.12. However, this is still a very high score showing that all attributes are very important to customers. Respondents were also asked when shopping in a Zara store what the store was like. “Zara store was tidy” scored the lowest with 2.08. “Waiting time at changing room was short” was deemed the best performed. However, this is still a very low score.

4.6.3 Discussion

Quantitative research shows when shopping in a retail store, customers expect employees to be friendly, helpful, knowledgeable about products and be able to offer alternatives if products are not available. It was also shown customers would expect the store to be clean and tidy with a variety of sizes and short waiting times at queues. Quantitative research has also shown when customers were shopping in a Zara store they found employees were neither friendly or welcoming, able to offer alternatives or were overly knowledgeable about products. It was also found that the Zara store(s) weren’t clean, tidy or have short waiting time at their queues. There was a big difference between the scores of employee expectations of service and the service that has actually been delivered by Zara, employees scored between 4 agree and 5 strongly agree with how important the attributes of customer service were to them while the service they received from Zara scored mainly between 2 disagree and 3 neither disagree or agree for providing these attributes. Therefore, it was identified that there were deviations between what the customer expectations of the service are and what they receive.

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

The purpose of this chapter is to conclude and summarise the previous four chapters. An analyse of all research will take place. As well as drawing conclusions from the information gathered, limitations and areas for future research of the topic will be discussed.

5.1 Parasuramans Gap Model

Each objective within this piece of research relates to a gap within the gap model. Gap 1 Objective 1 “To establish if there is a contrast between customers general expectations when shopping in a retail store against what Zara perceive their customer expectations to be.” Relates to gap 1 in Parasuramans Gap Model. It was found after both quantitative and qualitative research that there was no gap. Gap 2 Objective 2 “To identify any differences between Zara perception of customer expectations against what they teach their employees to deliver.” Relates to gap 2 in Parasuramans Gap Model. After carrying out both quantitative and qualitative research it was found that there was a gap. Gap 3 Objective 3 “To identify if there are any differences between what Zara teach their employees to deliver against the service delivered.” Relates to gap 3 in Parasuramans Gap Model. After both quantitative and qualitative research it was found that there was a gap. Gap 4 Objective 4 “To identify any discrepancies between what Zara say they will/can deliver to their customers, and the actual service delivered to them.” Relates to gap 4 in Parasuramans Gap Model. After carrying out both quantitative and qualitative research it was found there was a gap. Gap 5 Objective five “To identify any deviations between what the customer expectations of the service are and what they receive.” Relates to gap 5 of Parasuramans Gap Model. After both quantitative and qualitative research, it was found there was a gap.

5.2 Conclusion

The aim of this study was to identify and measure any differences in delivery of customer service by Zara Womenswear in Scotland from both a consumers and service providers perspective. Using Parasuramans Gap Model out of a possible 5 gaps within customer service, Zara have shown to have 4 of them; Gap 2,3,4 and 5. Gap 1 showed no difference in customer and employee expectations. The most important gap which has been shown is Gap 5: differences in customers expectations and what they receive. Research shows customers scored between 4 agree and 5 strongly agree, giving all attributes a high average of over 4. This showed customers expect a friendly service, for employees to be knowledgeable about products and to be able to offer alternatives if products aren’t available. However, research showed that when shopping in a Zara store, employees weren’t friendly or helpful, didn’t offer alternatives and didn’t deal with enquires efficiently as all attributes scored between 2 disagree and 3 neither disagree or agree. Gap 2,3 and 4 also identified areas of Zara customer service where they are underperforming. The main issue within these objectives showed to be a lack of training specifically customer service training and a lack of performance reviews or appraisals. This could mean employees don’t know how to deal with customers therefore customers feel like they are providing bad service.

5.3 Limitations of the study

The main limitation of the study was limited time. There was only a short few weeks to analyse all primary research therefore the questionnaire closed responses after 100 responses were received. Although there were a few respondents from each Zara store in the Scottish region there was still a large difference in the numbers between each store. More time would have meant an equal number of customer responses could have been gathered from each store meaning a more accurate representation of Zara customer service in the Scottish region.

5.4 Areas for further research

On completion of this piece of research the opportunity for future research may arise. A research study that examines the expected v actual customer service of other fashion retail stores such as Topshop and River Island and compare these findings to those included in this piece of research. This would allow for a comparison of Zara competitors. There could be an opportunity to examine age groups within Zara shoppers. Different age groups may expect different things when it comes to customer service. This would allow a more in depth comparison of zara customer expectations. There could be an opportunity to examine the customer service given to customers when online shopping with Zara. The findings could be compared with those in this research, allowing for a wider comparison of Zara customer service.

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