Channel Strategy to Customer Satisfaction: Case of Traditional Retail Channel in Jakarta

Abstract

Consumer’s life style changes impact shifting trend in trade channel where is number of visits to traditional groceries continues to decline, while in contrary the visit to vegetable vendor and minimarts are increasing. Product Availability means product distributes well and ready at outlet. Product Affordability is extending to which perceived value of the product is greater than perceived cost at the outlet where customer buy its product. Customer satisfaction is an important strategy in maintaining customers, in most business include in retail chain. Declining growth on fast moving consumer product business especially beverages including bottled water and the increased of competition had brought many companies to re-look and invest on their distribution Strategy. Currently company mainly focuses on wholesalers, while a lot of opportunity to develop traditional retail. Company needs to really understand the strong reason traditional retail channel is important to be developed. Company must win the market competition thru product availability, product affordability, product quality and Product Variability. This research attempt to investigate the relationship of the Product Availability to Customer Satisfaction in water bottled business at Jakarta area and to provide insight on company maximizing product availability at the traditional retail channel. This study is using quantitative approach and data collection is buy distributing questionnaire to respondents of AQUA, the biggest bottle water brand in Indonesia to consumer living in Greater Jakarta area. Sampling approach was convenient sampling technique. This researched managed to collect 400 valid responses. Data analysis and hypothesis testing was employed regression analysis with SPSS software. The finding found that product availability, Product affordability and Product quality significantly influence customer satisfaction of customer AQUA. Additional insight suggests product availability variable has the strongest influence for all Jakarta Area except West Jakarta on Customer Satisfaction than product affordability, product quality and product variability.