Customer satisfaction is a predictor of brand preference. This study was conducted to examine the customer satisfaction towards organizational culture for the brand preference. Both qualitative and quantitative methodology was used for this study and data was collected among the students of BUTEX through questionnaire method. After collecting data Microsoft Excel were used as data analyzing tool. Here this study was done on Easy, Richman, Yellow, Artisan, Dorjibari and Freeland brand. The main objective of this study was to find the influence of customer’s satisfaction on the basis of organizational culture when customers are going to choose a brand.
During the study work there were some limitations which included the number of samples, time, cost, and others. However, in this study will help the top management who conduct the business in clothing brand how to develop brand organizational culture in a way that would satisfy customers and to increase customer’s loyalty, share value of the brand, economical sustainability of the brand. In future further study can be conducted in broad area of customer’s opinion that may change the result also. Beside of this study how share value of the brand can be affected by customer satisfaction on the basis of organizational culture can also be examined.
Introduction
There are thousands of clothing brands in Bangladesh. But customers do not always prefer the same brand when purchasing their products. A brand must have some loyal customers for surviving in this competitive market. They need some loyal customers who are willing to try their new products whenever it launches. These customers make the brand superior among competitors in the market. Brand image gets better and annual turnover also increases. So, every brand thrives for achieving brand preference through customer satisfaction. For this they build favorable organizational culture that satisfies customers.
Satisfaction is an overall customer attitude towards a service provider according to an emotional reaction to the difference between what customers anticipate and what they receive. When customers are satisfied, they are more likely to return, while dissatisfied customers are more likely to go elsewhere. Since, customer satisfaction is strongly influenced by the interaction between customers and organizational culture, examining organizational culture and behavior is critical.
There is a unique culture in each organization which shows the people the way of understanding and signifying to events and should be a customer based culture and supportive of customers and their satisfaction. The recent studies on relationship between organizational culture and customer satisfaction are done on the context of service quality, employee performance, strategy development etc. These studies defined various organizational cultures that caused customer satisfaction and also dissatisfaction.
By the results of these studies organizations applied the ways to increase the causes of customer satisfaction and reduce the causes of customer dissatisfaction. The recent studies that are done on organizational culture and customer satisfaction are mostly on banking sectors and health institutions, along with some studies on technological service & gadgets.
There is not much study done on organizational culture in the clothing sector on the background of customer satisfaction and brand preference. In this sector brand preference is one of the most demanded thing from top management. But being preferred by the customers is not an easy task. Brands spend much money and time to create an image that will attract more customers. But spending only money is not the way to get brand preference, brands need to combine developing organizational culture along with other efforts to satisfy the customers. Various organizational culture has both positive and negative impact on customers.
It is needed to understand which should be applied more and which should be applied not at all. For this reason, brands need to develop organizational cultures that will satisfy the customers and the customer satisfaction that will lead them to brand preference. In our study we will try to find organizational culture parameters that will bring customer satisfaction and help in getting brand preference.
Research objectives
To find the relation between the organizational culture of a clothing brands and its customer satisfaction.
To find the similarities and differences in the organizational culture of the selected clothing brands.
To find out how organizational culture and customer satisfaction affect organizational effectiveness.
Theory of organizational culture
Two theories were considered in this research for our literature, they are Shein’s theory of organizational culture and Tharp’s theory of organizational culture. These two will help to understand the culture and their effect in an organization. The social context in which organizational members operate has been shown to relate to several important outcomes both for employees and the organization as a whole. Some researchers have investigated whether particular dimensions or facets of the social environment relate to the attitudes and behavior of individual employees other researchers have related those facets to organizational or group-level outcomes. Still other researchers have investigated the ‘‘strength’’ or intensity of the environment as it relates to organizational effectiveness[1].
The organizational culture and internal features of a company have been used from both theoretical and practical perspectives in business administration areas since the 1980s; however, organizational culture is a cultural anthropological notion that is difficult to distinctly define. Gordon defined organizational culture as an organizational philosophy with core values, norms, rules, and collective attitudes shared by members of the organization. Cameron points out the notion of organizational culture that had been shared for a long time rather than the temporary attitude to members of the organization as perceptions representing the form of the organization, human interaction, tangible symbols, etc.
These studies are diverse and comprehensive in concept, but consequently, organizational culture can be accepted as an intrinsic environment of organizational members in which organizational rules, procedures, and behaviors are expressed[2]. Organizational culture includes the norms that the members of an organization experience and describe as their work settings .Such norms shape how members behave and adapt to get results in the organization. Organizational culture is how the members of an organization interact with each other and other stakeholders. There is no single definition for organizational re.
The topic has been studied from a variety of perspectives ranging from disciplines such as anthropology and sociology, to the applied disciplines of organizational behavior, management science, and organizational commitment. The following definitions are views of authors from the applied sciences disciplines and are more relevant to the scope of this research document[3]. Organizational culture is an ambiguous term because there is no single definition mostly approved by each of literatures of organizational culture.
The problem in giving a clear definition of culture is that it gives a definition of both its actions and reactions. Organizational culture is defined as a complicated connection of values and standards, leading one’s attitudes. It includes a group of thoughts, values, expectations and experience gained through education, socialization and participation of social unit employees such as staff in the organization[4]. Organizational culture was defined as a pattern of assumptions that are shared by people in the organization and these shared assumptions influence people’s behavior and decisions.
From another perspective, organizational culture refers to the system of shared values, beliefs, and assumptions that show employees what constitutes appropriate and inappropriate behavior in the organization[5].Organizational culture is an ambiguous term because there is no single definition mostly approved by each of literatures of organizational culture.
The problem in giving a clear definition of culture is that it gives a definition of both its actions and reactions. Organizational culture is defined as a complicated connection of values and standards, leading one’s attitudes. It includes a group of thoughts, values, expectations and experience gained through education, socialization and participation of social unit employees such as staff in the organization[6]. According to schein’s theory Organizational culture is defined as a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration.
Organizational culture is the learned result of group experiences, and it is to a large extent unconscious. In Denison‘s model comparisons of organizations based on relatively more surface-level values and their manifest practices are made. Such values are deemed both more accessible than the assumptions and more reliable than the artifacts[7].
Communication with customers can improve customer relations by facilitating understanding of the complexity of the processes involved in facilities management. Communication may be seen as a form of process control or as a means of allowing employees to express their views on decisions affecting them. Simply put, it provides individuals with an opportunity for self-expression. Gibson proposed that there are two reasons why communication is of key importance within organizations.
It is fundamental to the meeting of both economic needs and social needs. According to Folger’s referent cognitions theory, adequate explanations allow individuals to place their undercompensating in context by helping them to understand that things could have been much worse.
Supportive communication also reduces perceptions of uncertainty and reduces stress by helping employees to develop a sense of perceived control. Numerous studies have demonstrated that communication represents a highly effective means of upholding the perceptions of fairness necessary to maintain satisfaction. Greenberg reported that even when individuals were unhappy with the outcome of a process, open communication led to less dissatisfaction and fewer dysfunctional outcomes. Redding reported a positive correlation between a manager’s open communication and employees’ satisfaction with the relationship.
In 1990, Greenberg conducted a study in which employees were informed that they would be receiving a 15 per cent pay cut either with or without an explanation. He examined the effects on turnover and office theft and found a significant increase in both parameters amongst employees who had not been provided with an explanation for the pay cut. Levels of turnover and theft amongst employees were parallel to the control group where employees were provided with a full explanation and an open questions and-answers forum was held [8].
While, in the past, customer service may have been considered an afterthought to the primary facility management functions, there is no doubt that customer service today should be viewed as an integral strategy for increasing a facility department’s effectiveness and value to the company it services. Although PDM does not appear to represent the most suitable option, it is still argued that finding the appropriate level of customer involvement, and addressing and implementing organizational justice strategies in line with this, will not only lead to increased customer satisfaction but will help to transform the culture of facilities management into that of the service industry. In her research into the development of service standards in the facilities management environment, Bandy described five steps involved in achieving customer satisfaction:
Understanding customers’ needs through research;
Setting service standards;
Communicating through leadership;
Delivering the service; and
Maintaining the service culture.
As customer needs are constantly changing, the first of these stages needs to be monitored constantly. The second stage involves the development of service level agreements with the customer through the analysis of performance measurement of the facilities management department itself. The dimensions of service quality which should be monitored include accessibility, communication, competence, courtesy, credibility, reliability, responsiveness, security, tangibles, and understanding of the customer. The third stage requires departmental managers to act as representatives for the customers, demonstrating their commitment to customer service by actively defending the customer’s interests on a daily basis[9].
Environmental uncertainty is unpredictable. Business opportunities and threats differ depending on environmental changes. Consequently, a corporation should pay close attention to information about environmental uncertainty and respond strategically to environmental changes. Environmental uncertainty has been highlighted as a critical factor for companies to consider in strategically adapting to the environment. Management strategy means providing the intentional direction of action and support to respond to the environment [10].
Customer satisfaction:
Customer satisfaction indicates how well the product use experience compares to the buyer’s value expectations. It is the expectation perceived by both customer and consumer before purchasing and experiencing the product or services. According to , since satisfaction is directly linked to customer experience, customers want more than just simple value; they want businesses to overwhelm and surprise them by going above and beyond the ordinary to meet their needs and wants[11]. Customer satisfaction measures the performance of organizations according to their needs. This further provides a measurement of service quality. By providing feedback on service aspects, customers can actually comment on products and services[12].
Satisfaction has also been linked to the feeling of delight. Delight, in this case, refers to an individual developing a surprise in a positive way. If a customer was contented with a given product or service and the service goes through some challenges and creates a discomfort, the customer will be dissatisfied. If for some reasons the service is recovered the customer will experience relief. To put it differently, dissatisfaction model has no place for the complexities of customer satisfaction[13]. In today’s volatile market economies, economic and social benefits of the competition must be evaluated from various financial and non-financial aspects.
Among these aspects, Customer satisfaction measurements are recognized as the non-financial performance indicator that is the most widespread. A high level of customer satisfaction is argued to lead to stronger company image, protection of current market share, increased customer loyalty, decreased customer complaints and strengthened financial performance [14].
Brand Preference
Brand preference was defined as customers’ tendency towards certain brands that review their cognitive information processing towards brand stimuli. This concept highlighted the central control unit and the mental abilities of customers. Therefore, this indicated that a purchaser’s perception of brand attributes leads to preferences or attitudes, which impacts his/her intentions and brand choices[15]. Brand awareness has influenced the client’s product evaluation and selection. On the other hand, brand preference has performed an essential task in client choice of products if clients have preferred a specific brand and buy the product/service when presented to other products of the same type; this has been described as a brand preference [16].
Consumers prefer a particular brand of product for many reasons. The main reasons are income growth and availability of financing, falling product prices and increasing affordability, appreciation of local currency value, Increased competition due to entry of large players, superiority of product technology, innovation in advertising and promotions, need for infrastructure development, superior product offerings at best prices and adopting to the fashion and living style [17].
The computational model applied, whose two components are beliefs· about attributes and evaluative aspects of the beliefs, was developed by Fishbein. Belief about a concept is defined as the probability that a specific relation exists between the concept and an object (e.g., toothpaste prevents decay and whitens teeth). The evaluative aspects of a belief reflect the importance assigned to the concepts in forming an attitude toward an object. For the purposes of this research, Fishbein’s model is represented quantitatively as:
Where:
Ab= the attitude toward a particular brand b
Wi= the weight or importance of attribute i
Bib = the evaluative aspect or belief toward attribute i for brand b
N = the number of attributes important in the selection of a given brand in the given product category [18].
Research design and Approach
Our research looks at the relationship between organizational cultural parameters and customer satisfaction level among different clothing brands. The research approach used here is a convenience data collection method. For our research we need qualitative and quantitative data on different aspects of customer satisfaction. Here both qualitative and quantitative data collection is used in same research design. This approach involves the researcher selecting certain facts which are relevant to the study. The facts are gathered based on pre-determined criteria and demonstrate the relationships of interest. This research uses these previous works of literature on different organizational cultures and their impact on customer satisfaction as a fundamental basis for the study.
This approach enabled us to unearth certain patterns or connections between the variables for the study. In this research we use just 331sample size for our data analysis and others activities. After collecting data we decide that particular parameters like behavior, pricing, store layout, payment system, parking area etc. are the major criteria for selection of a particular brand.
Brand selection by cultural parameters
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Research design and development
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Sample design
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Data collection by convenience method
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Data analysis and result discussion
Sample size and Data collection
Population refers the group about whom researchers wants to know more and from whom information & sample; data is drawn. This is often defined in terms of demography, geography, occasion time. The target population of this research is regular customer of different clothing brands in Dhaka city. But we cannot easily access customer information databases of different clothing brands. Our population size, is N=2400. Now we have to find out the sample size for our survey by using Cochran’s formula:
no=(z2*p*q)/e2
Here,
z=1.96, at 95% confidence level
e=0.05
p=0.5
q=1-p =0.5
From here sample size come out n0=384
Now to calculate the sample size for finite population the formula is:
As per N value sample size will be 331. For the purpose of this study, questionnaires were used to gather the data needed. So we have created a google form and collected the data from the students of BUTEX by using convenience method of sampling. The questionnaires were administered first aid used to gain information on the organizational culture of different clothing brands. The questionnaire used is a prewritten standard questionnaire. Questionnaires were personally for the customers to complete. Questionnaires were preferred in order to decrease the tendency of dissemblance of information from the respondents and to collect significant data. However the questionnaires provided good qualitative support. These questions & sample; the observation of the researcher help the researcher get further explanation in deep.
Data analysis
Salesman Behavior
When a person enters a clothing brand outlet a salesman greets & guides well, Customer appreciates that.
Responses on “Salesman Behavior”
Clothing sector is one of the oldest industries in India. India is witnessing change in lifestyle of large section of population. Clothing also forms to be a basic need of living. To understand the consumer behavior concerning to leading clothing brands. Consumers give importance to brands and relate their prestige with different brands. For our survey, the first question was about the behavioral culture in an organization. Most of the respondents agreed (88%, strongly agree 55% & agree 33%) to idea that they liked the gesture of being greeted when they enter into the outlet. They also want to be guided by the salesperson through the outlet so they can get their desired product easily and quickly. Brands like Easy and Yellow practice this culture, so they can satisfy customers by their behavior.
Variation of Product
If the brand outlet has variation in product quality and prices. Customer tends to be more attracted to the brand.
Responses on Variation of Products
There are various fashion houses in Bangladesh. Here we represent variation of various brand like Dorjibari, Easy, Richman etc. the various products of different renowned fashion houses of Bangladesh that’s may be helpful for people. Bangladeshi people are becoming fashion concern day by day. Fashion houses do the remarkable job for the Bangladeshi people. Many designers are personally open their fashion houses in Bangladesh. From the pie chart we can show that about 54% of people agree on it. It also show that about 32% strongly agree on it. Most of all fashion houses are based in Dhaka city. All the fashion houses in Bangladesh, designers are continuously try to give new design for the costumer. There are more than hundreds small and large boutique house or fashion house in Bangladesh.
Exchange Policy
If the brand has short duration for exchanging policy customer does not like it. Return policies are the rules a retailer creates to manage how customers return and exchange unwanted merchandise they purchased.
Responses on Exchange policy
A return policy tells customers what items can be returned and for what reasons, as well as the timeframe over which returns are accepted. From the response system we can see that, there are about 66% of people strongly disagree on short range of exchange policy. But if the duration of exchange policy be increased more clients prefer this system. But some people agree on it from the pie chart the amount of this rate about 10% .Actually they prefer on this system because of the others brand exchange policy. We will likely need the receipt or invoice to return the item for a full refund. Some stores will refund without a receipt, but others may only give a replacement or store credit.
Parking Area
Customer will prefer outlet with parking area. Results from the information showed that the majority of the clients neutral on parking area of the shopping mall now-a-days.
Responses on Parking area
Parking area is a very effective parameter for a social boundary in current times for each pompous public. This culture includes the various choices of shopping mall for example, Bashundhara shopping mall, Jamuna future park, Fortune shopping mall so on for the royal public and Nurjahan mall, New super shop, Chandrima mall for general public. At the point when we approach with the inquiry that in the event that the clients request adaptability in parking area, we found that 25% clients agree it, 11% clients strongly agree it. So this boundary fundamentally affects consumer loyalty level straight forwardly. On the other hand 19% of people disagree on it. Because they are not affordable on this kind of facilities. So a dress brand have a slightly impact on the parking area culture of a brand. This will draw in expected clients.
Store Layout and Trial room
Customer will chose those outlets which are well organized and have spacious trial rooms. It was found that evaluating altogether affects consumer loyalty level. Our outcome from the information has showed that clients favor those brands which have the most sensible value which have spacious trial room and well organized outlets.
Responses on store layout and trial room
At the point when we approach with the inquiry that assuming Client needs the most sensible value contrasted with the competitors the outcomes showed that 59% clients agree it, 24% clients strongly agree it. So it is major areas of strength for a social boundary. This culture highlights quality items and trust ability of the brand. In the event that the brands give quality garments in a sensible value, clients are probably going to go in those brands as opposed to the people who give exorbitant things. So a dress brand can embrace this hierarchical culture in their administration to emerge consumer loyalty.
Pricing Systems
Customer wants the most reasonable price compared to the competitors. It was found that pricing has a significant effect on customer satisfaction level. Our result from the data has showed that customers prefer those brands which have the most reasonable price compared to the competitors.
Responses on pricing system
When we approach with the question that if Customer wants the most reasonable price compared to the competitors the results showed that 54% customers demand it, 27% customers strongly demands it. So it is a strong organizational cultural parameter. This culture features quality products within the most reasonable price. If the brands provide quality clothes in a reasonable price, customers are likely to go in those brands rather than those who provide costly items. So a clothing brand can adopt this organizational culture in their service to arise customer satisfaction.
Payment System
Customer demands flexibility in payment system. Results from the data showed that most of the customers prefer flexible payment system now-a-days. Flexible payment system is a strong organizational cultural parameter in modern times for every society.
Responses on Payment System
This culture features the multiple options of payment system such as cash payment, mobile banking payment, card payment etc. When we approach with the question that if the customers demand flexibility in payment system or not then we found that 38.4% customers strongly demand it, 37.2% customers demand it. So this parameter has a significant effect on customer satisfaction level directly. There are various payment systems now-a-days in our country. People are moving towards e-wallets payment, debit or credit card payment instead of cash payment. Our results showed that customers prefer those brands which provides flexibility in payment system. If the brands provide flexibility in payment system, customers are likely to go in those outlets. Many customers face sufferings in the recent times due to unavailability of required payment system. So a clothing brand can adopt this organizational culture. This will attract potential customers.
Online Shopping
If Customer gets up to date website, timely delivery, committed quality of product in case of online shopping, they like it.
Responses on Online shopping
People now-a-days are more interested in online shopping. Online shopping is increasing day by day. As a result maximum clothing brands provide the service of online shopping. But in our country there are many brands which provide online shopping service but there are lacks in their service. When approached with solutions to this problem, we found that people demand up to date website, timely delivery, committed quality of product in online shopping service. When we approach with the question that if the customers like these features or not then we found that 48% people like, 33.5% people strongly like these features. Our results from the data showed that If Customer gets up to date website, timely delivery, committed quality of product in case of online shopping, they like it. So this is also a strong organizational cultural parameter in modern times. This parameter has a significant effect on customer satisfaction level directly. Customers don’t like the brands which provide poor online shopping service. So to attract more potential customers brands need to adopt this organizational culture.
Result and discussion
Brand Preference
In this study, it was conducted among BUTEX undergraduates. Organizational culture could affect the brand preference of the respondents in clothing brand. The factor of customer satisfaction in consuming the clothing product from brands had more impact on the respondents’ brand preference. There were most of the respondents who will prefer a brand because the product makes them want to use it. The majority of the respondents prefer a brand because the brand is superior to other competing brands.
From our survey we can see customers preferred the brand ‘EASY’ most and ‘RICHMAN’ least. Easy got more than 80% preference where Richman got less than 20% preference from customers. Getting and Not getting preference both depends on organizational culture. In our studies we selected 8 organizational parameters and according to this we can say the brand that got preferred by the customers have developed an organizational which satisfied the customers. On the other hand the brand that did not get preferred have an organizational culture which could not satisfy the customers.
The output of the research providing organizational culture and customer satisfaction towards the brand preferences in clothing brand products could be referenced by future researchers. For the future questionnaires, it still could be referred from this study. The recommendation provided for academic research is focusing on a large sample size which can be improved in reflecting the population. These can make the results of the study more accurate, significant, and valuable. Time management also crucial in this study. The researchers can complete the study in time with quality work which involved in an accurate result. For brands to increase preference they must build their organizational cultural strategy that will satisfy customers.
Richman got least preferred in our survey. To increase brand preference it needs understand customer demand well. They have to make their store attendants welcome the customers and behave well with them. They have to bring variations in product line and also do reasonable pricing to their products. The online shopping system should be improved with up to date website and timely delivery with right quality. By all these measures they can increase their brand preference.
Research Implications
Theoretical Implication
The findings of this research have demonstrated the relevance and importance of the influence of the organization cultural parameter on customer satisfaction for brand preference. The literature review laid the theoretical groundwork for displaying the applicability of these parameters in developing an organizational productivity .while others recommended the service profit chain and the value profit chain approach to improving organizational performance and success. This research was original from the perspective of combining customer satisfaction and organizational cultures for measuring and assessing brand preference. Also, these research findings should afford researchers an opportunity to use this study and approach in other organizations across different industries, countries and cultures, with minimal structural change.
This study has expanded the current knowledge base that has been provided by the industrial and organizational psychology research community on the importance of organization culture, brand preference and customer satisfaction individually as factors in the functioning of organizations. However, this research is original in that these parameters which were shown to have additional suitability as a method for measuring organizational success for achieving brand preference.
Managerial Implication
Based on these findings, organizational culture significantly affects employees’ eagerness to serve customers. As a result, it is important that organizational agents shape culture in an effective way by decisiveness and innovativeness. Organization culture that ensures individuals free access to a supply of information enhances the satisfaction of customer needs. This culture, however, should not only guide the way work is approached but also the priorities set within the organization, in terms of organizational goals and vision? For these the top level manager created new strategy which applied step by step in floor lever employees to achieve better than competitors.
In order to achieve successful implementation of initiatives, it is important that human resource management practices are designed accordingly, by recruiting and selecting applicants that fit the organization and effectively inducting newcomers into organizational operations, procedures, and standards. Planning increase the attraction customer’s satisfaction. Managers can also boost the market share value of the brand by implementing the findings of this study in their organization.
Conclusion
This study’s aim was to identify the parameters of organizational culture for achieving brand preference. For this a survey was done in a population of 2400 people who are undergraduate students of Bangladesh University of Textiles. Among them 331 students were selected by convenience method for our study. They were mostly of 20-25 years age and they were given eight opinions about brands and asked if they agreed to them or not. We did the survey on Google forms. The data we got from the survey was analyzed by Microsoft Excel to create pie charts and bar chart. The result showed us the brand preference level of different clothing brands. The result of the study was affected by limited sample size with narrow age range, income amount of respondents, gender difference (most respondents were male) etc.
Future research should deconstruct this parameters into its different elements and examine this question to gain more consistent results. The questions those help to set the organizational parameters can be modified to get more detailed information about customers’ demands. So it will be easier for brands to know what they have to do to satisfy the customers, what culture they have to incorporate in their organization. In addition, the outcome proposed in this research is based on participants solely from individualistic. Further research should explore whether the outcome proposed in the study remains the same when applied in collectivist cultures. The study was done on clothing brand’s brand preference but there are lot of other sectors. Further study can be done on different sectors like food industry, leather industry, health service etc. The brands can take feedbacks after every purchase by a customer and use them to improve organizational culture by considering the feedbacks.
Limitations
The number of respondents interacted were limited. Considering that Bangladesh has around 17 crore people, we generalize the results based on only 331 respondents. So such results may not be the true representations of the brands’ organizational culture and customer satisfaction levels. Age group and gender preference are also limitation of this study. The maximum respondents are young in age. There is a difference in the choice, preference among different aged group persons. So it does not reflect the true satisfactory level of all aged group customers. Again maximum respondents are male in gender. And the brands that we have selected for our study purpose are mainly male gender based. So such results does not represent accurate satisfactory level of female customers.
Some participants were not forthcoming in the filling and completion of the questionnaires. This study is based on some of the major brands of our country. So it does not fully represent of all types of clothing brands around the country. There could be other factors which affect the relationship between organizational culture and customer satisfaction such as loyalty, consistency, fast service etc.
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Author:
Gazi Hasibur Rahman Hasib, Shahriar Kabir Evan, Masum Ahmed, Md. Monjurul Islam Nafis, and Asma Ansary Asha*
