Customers' judgment of the customer service in appliance sales departments in an emerging economy

Evidence that consumers in emerging economies are more tolerant of ineffective customer service (CS), instigated an investigation into controllable elements of the service offering in a specific context in South Africa, namely, appliances sales departments in retail stores. The research aimed to identify possible shortcomings in CS amidst evidence that consumers are exposed to sophisticated merchandise that they have limited experience and understanding of. The intention was to suggest initiatives to augment the service offering so that it becomes more conducive for informed, responsible buying decisions. Household appliances represent a category of complex, durable and expensive merchandise that require more extensive information search before concluding buying decisions. A survey was done in 2007 through a pre‐tested structured questionnaire. Several branches of five prominent department stores were involved through liaison with industry. A store intercept method was used to recruit respondents: 296 questionnaires were filled in on the spot under supervision. Three sections of the questionnaire are relevant for this report: (1) consumers' satisfaction with CS; (2) a product knowledge test; and (3) demographic information. Factor analysis revealed a reduction of the original five elements of CS in the scale to three distinct elements that were labelled Personnel, Processes and Value for Money, and Product Presentation. The simpler scale suggests a less intricate judgment of CS in the context of this research. Means indicated that consumers were generally satisfied with all elements of CS, i.e. the service offering coincided with their expectations. Analysis of variance indicated no significant differences in the interpretation of any of the elements of CS by gender. A significant inverse relationship between satisfaction with CS and years of experience occurred for respondents with more than 25 years of experience in terms of Personnel (Element 1) and Processes and Value for Money (Element 2). Findings of the product knowledge tests were meant to verify consumers' CS judgments. However, scores were disappointingly low for all appliances across all respondent categories. Consumers' product knowledge could therefore not have supported informed buying decisions, despite prior experience and the opportunity to acquire additional product information during the in‐store encounter. Consumers' positive CS judgments suggest that they not necessarily realize their lack of crucial product knowledge. In the interest of informed and responsible buying decisions that have consequences for proper use and maintenance of appliances in the long term, retail stores that serve a broad customer base are encouraged to attend to in‐store customer assistance during the pre‐purchase phase, notwithstanding positive CS judgments. Non‐formal consumer education by competent, well‐trained salespeople is recommended to encourage evaluative rational product judgments. It is also suggested that store displays are designed to encourage consumers to be more inquisitive during store visits.