Influence of Perceived Product Quality on Consumer Satisfaction amongst Dairy Milk Processors in Kenya.

Anne Mwangi, Ndung’u Kabare, Kenneth Wanjau

Abstract


The dairy milk processors products are globally facing a very competitive environment that is forcing them to enhance the development and sustainability of loyalty opportunities. In Kenya, low investments in quality by dairy milk processors has dampened firms’ competitiveness. The purpose of this study was to determine the influence of perceived product quality on consumer satisfaction amongst dairy milk processors in Kenya. The study was guided by cross-sectional research design. The study population comprised of consumers who purchase dairy milk from major supermarket chains in Kenya. Primary data was collected from 384 respondents using a semi-structured questionnaire which was self-administered. Descriptive statistics and regression analysis were used to analyse data with the help of SPSS version 21. Descriptive analysis showed that the consumer perception of quality of milk was high. Regression analysis showed that perceived product quality was statistically significant at 5% explaining 6.1% of changes in consumer satisfaction. The study concluded that, perceived product quality is a key ingredient for consumer satisfaction and dairy milk processors need to invest heavily in that area for them to be competitive . The study recommends that, dairy milk processors in Kenya must strive to customize their dairy milk products by empowering consumers to give input to products quality, design and seek their views on the most preferred service parameters that will their satisfaction.


Full Text:

PDF

References


Ajzen, I. (2005). Attitudes, Personality, and Behavior. New York: Open University Press.

Ajzen, I., & Fishbein, M. (Eds.). (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, London: Prentice-Hall.

Baiya, H. & Kithinji, J. (2010). Transforming the Dairy Sector: Benefits from the Formalization of the Raw Milk Trade in Kenya. SITE Case Study. August 2010,www.value-chains.org/dyn/bds/813/sitedairycase.pdf.

Campbell, D., & Frei, F. (2010). Cost structure, customer profitability, and retention implications of self-service distribution channels: Evidence from customer behavior in an online banking channel. Management Science, 56(1), 4–24. Retrieved from http://pubsonline.informs.org/doi/abs/10.1287/mnsc.1090.1066

Cooil, B., Keingingham, T., Aksoy, L., & Hsu, M. (2007).A longitudinal analysis of customer satisfaction and share of wallet: Investigating the moderating effects of customer characteristics. Journal of Marketing, 71(1), 67-83.

Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods (9th ed.). Newyork: McGraw-Hill International.

Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (9th ed.). Newyork: McGraw-Hill International

Creswell, J. W., & Plano Clark, V. L. (2011). Designing and conducting mixed methods research (2nd ed.). Thousand Oaks, CA: Sage Publications.

Cronbach, L. J. (1951). Coefficient Alpha and the Internal Structure of Tests. Psychometrika, 16, PP297-334.

Cronin. Jr, J., Brady, M., & Hult, T. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing (Vol. 76). https://doi.org/10.1016/S0022-4359(00)00028-2.

Dabholkar, P. A., Shepherd, C. D., & Thorpe, D. (2000). A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), PP 139-173.

Davis, C. G., Dong, D., Blayney, D. P., & Owens, A. (2010).An analysis of U.S Household Dairy Demand. Retrieved December, 2010, from www.ers.usda.gov/Briefing/Dairy/.

Fishbein, M., & Ajzen, I. (1975).Belief, attitude, intention, and behavior: An introduction to theory and research. London: Addison-Wesley publishers.

Fonterra, (2017.).Innovation and technology products. Retrieved 15th March, 2017, http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/Our+Business/Innovation+and+Tec hnology/Products/

Ghosh, P., Tripathi, V., & Kumar, A. (2010). Customer expectations of store attributes: A study of organized retail outlets in India. Journal of Retail and Leisure Property, 9(1):75-87.

Golder, P. N., Mitra, D., & Moorman, C. (2012). What Is Quality? An Integrative Framework of Processes and States. Journal of Marketing, 76(4), 1–23. https://doi.org/10.1509/jm.09.0416

Graham,S. (2014). An analysis of the dairy industry: Regional impacts and rational price formation. British Journal of Educational Technology, 45(4).

Hausman, A. V., &Siekpe, J. S. (2009). The effect of web interface features on consumer online purchase intentions. Journal of Business Research, 62, PP 5-13.

Hsin Chang, H., & Wen Chen, S. (2008). The impact of online store environment cues on purchase intention. Online Information Review, 32(6), 818–841. https://doi.org/10.1108/14684520810923953

Jain, S. K., & Gupta, G. (2004). Measuring Service Quality: Servqual vs. Servperf Scales. Vikalpa, 29, (2), 25–38. https://doi.org/10.1177/0256090920040203

Jamieson, L. F., & Bass, F. M. (1989). Adjusting Stated Intention Measures to Predict Trial Purchase of New Products: A Comparison of Models and Methods. Journal of Marketing Research, 26,(3), 336. https://doi.org/10.2307/3172905

Karanja, A. M. (2007). The dairy industry in Kenya: the post-liberalization agenda. International Journal of Economics, Commerce and Management, 5 (5), 23-35.

Kariuki, A. N. (2016). Influence of Product Diversification Drivers on Performance of Dairy Enterprises in Kenya. Unpublished Doctoral dissertation. Nairobi: Jomo Kenyatta University of Agriculture and Technology.

Khalifa, S. A. (2004). Customer value: a review of recent literature and an integrative configuration. Management Decision, 42(5), PP645–666. https://doi.org/10.1108/00251740410538497

Kiplang’at, M. J. (2015). A supply chain management prototype for milk in Kenya : case of Gakindu Dairy in Nyeri County. Retrieved from https://su-plus.strathmore.edu/handle/11071/4611

Kusuma, F., & Primidya, N. (2014). Analyzing the effect of product quality on customer satisfaction and customer loyalty in Indonesian SMEs (Case Study on the Customer of Batik Bojonegoro Marely Jaya). Jurnal Administrasi Bisnis, 14(1).

Lee, E.J.,& Overby, J.W. (2008).Creating value for online shoppers: Implications for satisfaction and loyalty. Journal of Consumer Satisfaction, Dissatisfaction and complaining behavior, 17, PP 54-67

McCollough, M.A., Berry, L.L., & Yadav, M.S. (2000). An empirical investigation of customersatisfaction after service failure and recovery. Journal of Service Research, Vol. 3 No. 2, PP. 121-137.

Mertens, D. M. (2010). Research & Evaluation in Education and Psychology: Integrating Diversity with Quantitative, Qualitative & Mixed Methods. London: Sage Publications.

Moon, J., Chadee, D., & Tikoo, S. (2008). Culture, product type, and price influences on consumer purchase intention to buy personalized products online. Journal of Business Research, 61(1), 31–39. Retrieved from https://econpapers.repec.org/article/eeejbrese/v_3a61_3ay_3a2008_3ai_3a1_3ap_3a31-39.htm

Mutura, K. J., Nyairo, N., Mwangi, M., & Wambugu, K. S. (2016). Analysis of Determinants of Vertical and Horizontal Integration among Smallholder Dairy Farmers in Lower Central Kenya. International Journal of Agricultural and Food Research (Vol. 5). https://doi.org/10.24102/ijafr.v5i1.596

Mwendwa, V. C. (2008). Strategic responses by Kenya Milk Processors to environmental challenges. Retrieved November, 2008, from http://erepository.uonbi.ac.ke/handle/11295/7965

Njarui D., Nguluu, S. N., Mwangi, D. M., & Keya, G. A.(2012) .Challenges in milk processing and marketing among dairies in the semi-arid tropical Kenya. Livestock Research for Rural Development,Vol.22, Nairobi, Kenya.

Njarui, G., Gatheru, M., Wambua, J., Nguluu, S., Mwangi, D. M. & Keya, G. A. (2009). Dairy Cattle Value Chain Assessment: Characterization of Milk Production in Semi-Arid Kenya. KASAL Dairy Working Document 1. Nairobi, Kenya.

Nyariki D. M., & Thirtle C. (2000). Technical innovation and farm productivity growth in dry land Africa: The effects of structural adjustment on smallholders in Kenya. Agrekon 39,(4), PP597–606.

Odero, J. A. (2017). Smallholder dairy production in Kenya; a review. Livestock Research for Rural Development 29 (7) 2017. Retrieved from http://www.lrrd.org/lrrd29/7/atiw29139.html

Odero-Wanga, D. A., Mulu-Mutuku, M. W., & Ali-Olubandwa, A. (2013). Overcoming the Odds: Strategies Used By Women Entrepreneurs in Milk Microenterprises in Kenya. American Journal of Human Ecology, 2(2),PP60–66. https://doi.org/10.11634/216796221504311

Olorunniwa, F., Hsu, M.K., & Udu, G.J. (2006). Service quality, customer satisfaction, and behavioural intentions in the service factory. Journal of Services Marketing, 20(1): 59–72.

Park, C. H., & Kim, Y. G., (2003).Identifying key factors affecting consumer purchase behavior in an online shopping context. International Journal of Retail & Distribution Management, 31 (1), 16-29.

Priluck, R., & Lala, V. (2009). The impact of the recovery paradox on retailer-customer relationships. Managing Service Quality, 19(1), 42–59.

Roberts, J. (2003). The Manufacture of Corporate Social Responsibility: Constructing Corporate Sensibility. Organization Journal, 10(2), 249–265. https://doi.org/10.1177/1350508403010002004

Soutar, G., & Sweeney, J. C. (2001). Consumer Perceived Value: The Development of a Multiple Item Scale. Journal of Retailing, 77, (2), PP. 203-220.

Suchánek, P., Richter, J., & Králová, M. (2017). Customer Satisfaction with Quality of Products of Food Business. Prague Economic Papers, 2017(1), 19–35. Retrieved from https://ideas.repec.org/a/prg/jnlpep/v2017y2017i1id595p19-35.html

Terpstra, M., & Verbeeten, F. H. M. (2014). Customer satisfaction: Cost driver or value driver. Empirical evidence from the financial services industry. European Management Journal, 32, 499–508

Tseng, V., & Seidman, E. (2007). A systems framework for understanding social settings. American Journal of Community Psychology, 39(3–4), 217–228. https://doi.org/10.1007/s10464-007-9101-8

Tuei, B. C. (2010). Milk Quality control and regulation in Dairy Production: A Case of Dairy Producers in Kikuyu Division, Kabete District, Central Province. African Association of Agricultural Economists, Cape Town, South Africa.

Wang, C. K., & Ang, B. L. (2004). Determinants of Venture Performance in Singapore. Journal of Small Business Management, 42(4), 347–363. https://doi.org/10.1111/j.1540-627X.2004.00116.x

Wolfe, K., & Shepherd, T. (2006a). Augusta Area On-Farm Milk Processing Feasibility Analysis. Center for Agribusiness and Economic Development, Georgia, University of Georgia.

Wolfe, K., & Shepherd, T. (2006b). A Feasibility Analysis for On-Farm Bottling of Milk in Morgan County Georgia. Center for Agribusiness and Economic Development, Georgia, University of Georgia.

Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), PP. 195-211.

Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing Integrating Customer Focus across the Firm. Boston: MA publisher.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.