10198: Perspectives of Small Retailers in the Organic Market: Customer Satisfaction and Customer Enthusiasm

Bolten, Jan; Kennerknecht, Raphael and Spiller, Achim (2006) Perspectives of Small Retailers in the Organic Market: Customer Satisfaction and Customer Enthusiasm . Paper presented at 98. Seminar of the European Association of Agricultural Economists EAAE: Marketing Dynamics within the Global Trading System: New Perspectives, Chania, Crete (Greece), 29 June - 2 July 2006.

Summary

Abstract. In this paper we discuss the impact of customer satisfaction and enthusiasm on the performance of small retailers in the organic food market. The analysis of customer satisfaction and shop data confirm essential economic effects. The study is based on 948 customer interviews and an analysis of management ratios of 12 organic food shops in Germany. The results show that customer satisfaction is a relevant key to sales performance. Regression analysis reveals that overall customer satisfaction accounts for 32 % of sales per square meter sales area. An additional factor analysis identifies service and product quality as main determinants of customer satisfaction. Consumers consider the freshness of fruit and vegetables as representative for the quality of the whole assortment. A correlation analysis demonstrates that customer enthusiasm is a more accurate factor in the recommendation of shops than customer satisfaction. The paper ends with managerial and scientific implications.

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