The Effect Of Physical Distribution Service On Customer Satisfaction (The Case Of Moha Soft Drinks Industry S.C. Tekelehaimnot Plant)
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Date
2018-05-19
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Addis Ababa University
Abstract
The purpose of this paper is to investigate the effect of physical distribution service on customer satisfaction in the case of Moha Soft Drinks Industry S.C. Tekelehaimnot Plant. A structured questionnaire was adopted. A quantitative research approach was implemented, and the hypotheses were also tested on a sample of 341 customers out of 377 distributed, giving a valid response rate of 90.5% percent. The questionnaires were analyzed using Cronbach Alpha, descriptive statistics, correlation & regression. The application used to analyze and examine the hypotheses is the Statistical Package for Social Sciences (SPSS) V.20. The findings of independent variable of descriptive statistics has shown that, the mean score of Physical distribution service variables i.e Product Availability, PDS Timeliness, PDS Quality, PDS Flexibility has been 3.94, 3.75, 3.71 & 3.61 respectively. All selected dimensions of physical distribution service independent variables have a significant correlation with the dependent variable “overall customer satisfaction” with 95% confidence interval & at 0.05 p-value, by scoring a Pearson Correlation Coefficient “R-value” value of 0.667**, 0.582**, 0.544** & 0.534** respectively. In this case relatively product availability had a higher strong relationship with overall customer satisfaction than the other three independent variables & the linear combination of physical distribution service predictors’ (independent variables) explains 57.3% of the variance in customers’ purchases decision. In addition to correlation analysis, further regression analysis was also conducted, and the result indicates that all the selected dimensions of physical distribution service have significant relation with overall customer satisfaction. Finally, the results are useful in identifying physical distribution service focus areas to help Moha Soft Drinks Industry S.C. Tekelehaimnot Plant marketing strategy. As evident from the finding section that, Moha Soft Drinks Industry S.C. Tekelehaimnot Plant is recommended to fully implement physical distribution service dimensions effectively to attract customers that make purchase decision and to increase the sales volume. physical distribution service is one of the competitive advantage area for Moha Soft Drinks Industry S.C. Tekelehaimnot Plant to remain competitive in the soft drinks industry
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Keywords
physical distribution service, product availability, physical distribution timeliness