ABSTRACT
This study is a research work on the Impact of Physical Distribution in Customer satisfaction. It is aimed at understanding how physical distribution contributes to customer satisfaction. Physical Distribution is very important when we understand that customers are always demanding quick and ever-ready delivery of goods and services. Hence, it is important to create better product and service offerings through physical distribution. Chapter one deals with the identification of problems that the research study tends to find solutions to, chapter two deals with the review of related literature, chapter three deals with the procedures adopted in studying the research problem. The case under study is Seven-up Bottling Company Aba with Aba as the area of study. The field survey method was employed with the use of questionnaires. Chapter four deals on the analysis of data, the chi-square statistics was used in testing three hypotheses, the result indicates that Just-in-time and inventory management contributes to customer satisfaction; also, the application of physical distribution contributes to customer satisfaction. Conclusively, chapter five deals with summary of findings, recommendations and conclusions. The researcher recommends that companies should improve on their physical distribution activities as it is paramount to ensuring customer satisfaction.
TABLE OF
CONTENTS
Title
i
Declaration
ii
Certification
iii
Dedication iv
Acknowledgement
v
Table of Contents
vi
Abstract
x
CHAPTER
ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problem 2
1.3 Objectives of the Study 2
1.4 Research Questions 3
1.5 Research Hypotheses 3
1.6 Significance of the Study 3
1.7 Scope of the Study 4
1.8 Limitations of the Study 4
1.9 Definition of Terms 4
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.0 Introduction 5
2.1 Conceptual Framework 5
2.1.1 Physical Distribution Concept 5
2.1.2 Physical Distribution System Concept 6
2.1.3 Physical Distribution Service
Concept 6
2.1.4 Customer Satisfaction 7
2.2 Theoretical Review 7
2.2.1 Definition of Scope of Physical
Distribution 8
2.2.2 Importance of Physical
Distribution 10
2.2.3 Physical Distribution
Management Activities 12
2.2.4 Objectives of Physical
Distribution 14
2.2.5 Customer Service 15
2.2.5.1 Importance of Customer
Service 15
2.2.6 Customer Satisfaction 16
2.2.7 Inventory Management 17
2.2.7.1 Just-In -Time and Stockless
Distribution 17
2.2.8 Transportation 18
2.2.9 Order Processing 19
2.2.10 Material Handling 20
2.2.11 Barriers to Effective Physical
Distribution 20
2.2.12 Distribution Channels Major
Decision Areas 21
2.3 Empirical Studies 23
2.4 Summary 24
2.5 Company Profile 25
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Research Design 26
3.2 Area of Study 26
3.3 Population of Study 26
3.4 Sample and Sampling Technique 26
3.5 Sources of Data 27
3.6 Instrument of Data Collection 27
3.7 Validity of Instrument 28
3.8 Reliability of Instrument 28
3.9 Administration of Instrument 28
3.10 Method of Data Analysis 28
CHAPTER
FOUR: DATA PRESENTATION, INTERPRETATION AND ANALYSIS
4.12 General Description 30
4.2 Hypotheses Testing 37
4.2.1 Test of Hypothesis One 37
4.2.2 Test of Hypothesis Two 39
4.2.3 Test of Hypothesis Three 41
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 43
5.2 Conclusions 43
5.3 Recommendations 43
References
Appendix 1
Appendix 2
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
It
is sometimes said that the role of physical distribution is to provide time and
place utilities in the transfer of goods and services between and sellers. Put
in another way, there is no value in a product or service until it is in the
hands of the consumer. It follows that making the product available is what in
essence the distribution function of the business all about (Kotler 2003).
Armstrong
and Keller (2009) averred that customers want more frequent delivery so that
they do not have to carry much inventory; they want higher promised delivery
times. The first objective of physical distribution can be summed up in one
word “service”. That is the reason why physical distribution is to ensure that
the right products are available when consumers want them, in the right place
and at the right time. The overall goal of service has several aspects and they
include availability of product, accuracy in filling orders, safe service and
so on. Availability is in itself a complex concept impacted upon by a galaxy of
factors. Indeed, it could be said that ultimately customer satisfaction is
determined by the interaction of all the factors that affect the process of
making goods and services and services available to the consumers.
Customer
satisfaction is a marketing term that measures how products or services
supplied by a company meet or surpass a customer expectation Ahmet Nuri (2010).
However, most companies are blissfully unaware of the importance of customer
satisfaction. Consumers are becoming increasingly demanding, this development
is usually customer-led demand for improved services, customers are demanding
ever quick delivery and ever-more added value from their products, which
increasingly demand “Just-In-Time” distribution.
In
a thorough understanding of this project topic, it is necessary to have a
definition of physical distribution. Nnabuko (1998) as cited in Ebitu (2003) defines
physical distribution to involve the movement of products through various
intermediaries to customers. Its main elements include; transportation,
warehousing, order processing, inventory controls and customer service. An
efficient coordination of these various elements provides an avenue for
improved customer satisfaction and vice versa. A company’s successful stay in
business and its ability in maintaining high standard decision and physical
distribution capabilities rely on a great extent at ensuring customers
attraction and satisfaction.
1.2 Statement of Problem
In
spite of the emphasis many firms place on marketing mix (4ps), the role of
place in the marketing mix has somewhat been neglected. While it is true that
customer satisfaction is the result of the total marketing effort, industries
have generally failed to recognize the importance of customer satisfaction as
provided by physical distribution and has not effectively integrated physical
distribution into their marketing functions. Customer satisfaction is not
adequately met in the developing economy because companies do not have
efficient infrastructure which usually help n providing adequate customer
service. Customers’ complaint range from late delivery of products,
inconsistency in delivery, lack of credit financing, defected or broken goods
on delivery, no information on delay, imbalance of brand, attitude of salesmen
etc. These customers complaints which
has some negative impacts on companies that experiences it leads to customers
dissatisfaction and frustration leading to poor company sales.
1.3 Objectives of the Study
The main objective of this study is to examine
the physical distribution system that exists in 7up Bottling Company in the
provision of efficient customers’ satisfaction.
The
specific objectives are to:
1) Ascertain the effect of order processing
technique on customer satisfaction.
2) Determine
the effect of proper warehousing on efficient customer satisfaction.
3) Ascertain
customer satisfaction with the level of customer service.
4) Determine
the role of inventory management on customer satisfaction.
5) Evaluate
the importance of proper warehousing towards improved satisfaction of
customers.
1.4 Research Questions
The
following research questions will guide the researcher in this study
1) What
is the effect of proper warehousing towards efficient customer satisfaction?
2) Are
customers satisfied customer service being delivered?
3) What
role does transportation play in efficient customer satisfaction?
4) How
does order processing effect customer satisfaction?
5) What
role does inventory management play on efficient customer satisfaction?
1.5 Research Hypotheses
The following research hypotheses
will guild the researcher in this study.
H01: The application of physical distribution does
not contribute to customer satisfaction
H02:
Customers are not satisfied with the level of customer services being delivered
H03:
Inventory management does not have any significant role on efficient customer
satisfaction.
H04: Order processing technique has no effect on
customer satisfaction.
1.6 Significance of the Study
It is expected that at the end of this
research, the study will contribute immensely to the 7up Bottling Company and
consumers of the product equally. The study at the end will also be beneficial
to the students who will find it useful as a reference material. To the
academia, it is expected to be an addition to the body of knowledge that
already exists. The society will also benefit from the study as it is expected
that good policies will be formulated by the company through this study.
1.7 Scope of the Study
This study is limited in scope to the impact
of physical distribution on customer satisfaction in 7up Bottling Company Aba,
Abia State.
1.8 Limitations
of the Study
In this study, the researcher anticipated
some critical challenges in the following area;
Time:
time constraint is a very critical area that the researcher will be confronted
due to the fact that the study has to be combined with other academic exercise.
Respondents:
the researcher envisages challenges from the respondents as many may not be
willing to co-operate with the researcher instructions resulting in delays.
Finance:
the researcher has already stated facing challenges on this as area.
Inaccessible
relevant materials: having to do with a company that is operating in a
competitive market, there is every tendency that the officials of the company
will not be willing to release some vital information/material for fear of
competitor’s invasion in their strength area (competitive edge).
1.9 Definition of Terms
Physical
distribution: the movement of products through various intermediaries to
customers.
Customer
satisfaction: this is a measure of how products or services supplied by a
company meet or surpass customer expectation.
Transportation:
an act of conveyance or movement of goods from one place to another.
Warehousing:
an act of using warehouses for storing large amounts of products by
manufacturers before going to retailers.
Customer
service: a strategically designed standard for customer satisfaction that the business
intends to provide to its customers.
Order
processing: designed to take customers orders and execute the specifics the
customer has purchased.
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