Customer Satisfaction Towards Nestle Products

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Executive Summary

This essay aimed to explore how satisfied customers are when purchasing Nestle projects and provided a brief overview of the Nestle background. Consumer satisfaction is a major challenge that is facing Nestle due to the different tastes and preferences of customers. The researcher used various sources such as Business Statistics: For Contemporary Decision Making and Study of Consumer Satisfaction: A survey of Nestle products in Baroda City to obtain information about Nestle products. There is an undesirable connection amid Nestle goods and client gratification. Nestle can expand its shopper consummation chiefly by cultivating its client services and working on purchaser fulfillment.

Introduction

Customer satisfaction measures how customers feel after using a product or obtaining a particular service. Complaint handling, communication, customer expectations, convenience, product value, and product quality determine how satisfied clients are after purchasing a commodity. A brand improves its consumer satisfaction when it recognizes the needs of its customers and meets their requirements. Satisfied customers convey various advantages to a business, including improving a businesss loyalty, trust, attracting more clients through word of mouth, and enabling a firm to increase its sales. This essay majorly focuses on the Nestle company in the United States, background information of the corporation. It determines how well Nestles marketing strategies and products meet the customer needs and gratify the buyers. Determining how well customers are satisfied is crucial to a business since it enables a company to acknowledge the areas it needs to adjust to meet customer expectations.

Company Background

Nestle is among the largest beverage and food industries and was established by Henri Nestle in 1866. The company employs approximately 250,000 people from more than seventy nations and operates factories in various nations globally (Purvi & Dignesh, 2018). Nestlés history began in Switzerland in 1867 when Henri Nestle, a pharmacist, launched Farine Lactée Nestlé that boosted childrens growth. Henri utilized his surname, little nest, in the company logotype and name. The nest in the logotype and company represents nourishment, family, and security has a significant impact on the firms profile. From the commencement of its operations in 1867, Nestlés business acquisitions and product innovativeness have transformed it to among the largest food companies globally.

Years after its operations, Nestle manufactured mineral water, yogurt, frozen goods, cereals, coffee, soup, and chocolate. Since the early 1970s, nestle has intensified its product profile to cosmetics, pharmaceutical items, and pet foods (Purvi & Dignesh, 2018). Nestle currently markets several products, all innovatively manufactured due to Nestlés long experience in manufacturing quality products. The organization is guided by various primary principles, including renovation and innovation. Nestle ensures its products develop through invention and renovation while maintaining product lines and geographic activities equilibrium. Additionally, the company is grounded on decentralization, implying a nation is accountable for the smooth running of its operations, including staff recruitment.

Over the last 130 years, Nestles operations have enhanced it to differentiate itself on the global map through the high-value product mix that has positioned frim as a health-conscious brand while targeting health-aware individuals across the globe. The firm launched its operations in Pakistan in 1988 by taking over Milkpak Limited, a dairy organization that Indians were also targeting (Purvi & Dignesh, 2018). Since the acquisition of the dairy company in Pakistan, the nation has been identified as the worlds fifth-biggest milk producer. Hence, nestle sells most of the products manufactured in Pakistan in India. On top of that, Nestle sells breakfast cereals, infant milk, chocolates, noodles, and juice. Nestle purchased almost 50 acres of land at Sunland, a few kilometers from Ahmadabad, for a processing plant.

Problem

Consumer satisfaction is a highly complex independent variable that influences brand image, variable price, service regularity, and product quality. The current market is an open market that experiences consumer preferences and tastes changes (Purvi & Dignesh, 2018). When suppliers or businesses determine the best buy products, consumer satisfaction is often employed in marketing and consumer satisfaction scenarios. Nestles consumer satisfaction study aimed at finding a solution that would conclude whether customers are satisfied with nestle products or dissatisfied. The description measures how a companys products or facilities meet customer expectations and is vital for effectively managing a corporations customer satisfaction. Firms require representative and reliable satisfaction measures to ensure customers are satisfied. Their gratification gives business owners and marketers the metrics that help them improve and manage their operations.

Though Nestle has been operating globally for more than 130 decades ago, most consumers are not impressed with the quality and prices of the companys products and prices globally. Consumer satisfaction is an important attribute because it indicates the loyalty and intentions of clients, acts as a differentiation point and increases the lifestyle value of potential customers. Client consummation also reduces negative energy and is affordable when retaining consumers rather than acquiring new ones (Purvi & Dignesh, 2018). Initially, Nestle commenced its activities in Pakistan during the 1988s by obtaining dairy business Milkpak Limited when the Indian people truly needed it. Other than offering prepared foods (breakfast cereals, infant milk, baby food, noodles, chocolates, and juices), Nestle majorly sells dairy commodities.

Key Information Sources

One of the crucial criteria for evaluating the excellence of scientific study outcomes is the dependability of the facts contained in it. Information with a mandatory link to the source is considered precise in scientific research. Research sources depict the completeness and in-depth origins of information that the researcher had gathered and analyzed. Study sources indicate the extent to which an author owns the topic, the procedure of thematic exploration of electronic and traditional sources of data. A researchs sources validate whether the investigator can choose scientific documents, references, and educational documents, which may not be distributed in preparing a research paper and how the problem has been studied critically. The correct source of information significantly impacts the quality of research being conducted.

This research was dedicated to analyzing the commodities and popularity of Nestle company and measuring the degree of satisfaction of consumers purchasing Nestlés products. It used various sources, including Business Statistics: For Contemporary Decision Making (2020) by Black and Study of Consumer Satisfaction: A survey of Nestle products in Baroda City (2018) by Purvi and Dignesh (Purvi & Dignesh, 2018). The first source is an in-depth and large-scale elaboration of the business statistics model. The source heightened a clear, complete, and convenient pedagogical technique to present and explain business statistics. Blacks work enables the learner to get acquitted with the techniques of quantitative decision-making and the techniques of analyzing data needed to make rational decisions based on data accuracy. Thus, the researcher was interested in understanding the theories of business and statistics.

Black explains the scopes of this research as an arm of practical activity for gathering, analyzing, processing, and publishing statistical data nationwide. A research carried out by the researcher in key information sources paper three demonstrated how statistical investigations and analyzes are diverse. Phenomena and social processes were closely related to the statistical techniques; thence, economic society may not operate without statistics. The knowledge of this literary source empowered the investigator to use the chi-square technique in a study that was concerned with Nestlés client satisfaction. Blacks publication allowed the scholar to evaluate the techniques used in the study and their rules of operation to make the quality of the findings efficient.

The chosen method by the examiner had several benefits, including flexibility and reliability in data collection and distribution. Therefore, the publication Business Statistics: For Contemporary Decision Making (2020) offered important support in the conduction of the study because of its business statistics and statistical methods. The book was vital in the examination as it offered a wide range of data directly related to this study. The writers of the second book, Study of Consumer Satisfaction: A survey of Nestle products in Baroda City (2018) by Purvi and Dignesh, assessed the degree of satisfaction and customers; trust in Nestlés products. The authors performed a study based on the data provided by respondents primary data, specifically a questionnaire.

Purvi and Dignesh conducted a thorough assessment of consumer satisfaction with Nestle goods in India based on product quality, price, and test parameters. The investigation was also dedicated to Nestlés general activities in India and the firms association with Indian farmers, who significantly impacted Nestle. Purvi and Dineshs evaluation showed that Nestle positively affected individuals living standards by creating jobs (Purvi & Dignesh, 2018). The outcomes of this study are beneficial to this study since they focus on the degree of satisfaction of individuals with Nestlés commodities in India, helping the researcher evaluate the organizations perception. The scholars of this study emphasized that consumers should be given key information sources concerning the commodities and services Nestle produces. The authors were content with the marketing strategy of Nestle.

Purvi and Dineshs article is a consistent and valuable source of information about Nestle. Additionally, the article was useful in the writing of this research since its provided figures and general comprehension of the state of events in Baroda city (Purvi & Dignesh, 2018). This use of this publication as a source of data was suitable as it enhanced the study with the scientific decisiveness necessary for a comprehensive examination and results. The book permitted the investigator to collect the significant information for the study, analyze the examination, and formulate conclusions that depict the usefulness of the work.

Methodology

This study used correlation analysis to obtain alternatives to solve the consumer satisfaction challenge faced by Nestle. Correlation analysis application includes utilizing a regression model that establishes a quantitative research analysis. Regression analysis models enable researchers to comprehend the relevance and benefits when analyzing various setting arrangements in development advancements over time crossways the spell nation (Black, 2020). Assuming a company does not satisfy its clients, it cannot consistently expand its benefits. Hence, customer satisfaction is a positive element that helps businesses support their buyers interests and financial growth.

Regression analysis enabled the researcher to apply regression models effectively and recommend how Nestle can solve the problem depending on the variables, including Nestle products and customer satisfaction. The model includes correlation analysis aspects, which indicate how various variables relate. The researcher quantitatively weighed variables using consistent sources to recognize the numerical association between independent and dependent correlation analysis. The scholar also applied the linear regression model to indicate how Nestles products impact customer satisfaction.

The author formulated the linear regression model from independent and dependent variables and presented the relationship between Nestle products and customer satisfaction using the SPSS statistical technique, which analyzes quantitative data. In this study, the independent variable comprises product quality, price, and nutrition, while customer satisfaction of Nestle products in the US was the dependent variable. The researcher used reliable sources to collect data to ensure the analysis was effective. The researcher formulated the regression model as Y= ²0+ ²1X1+ ²2 X2+²3X3. Y represented the Nestle customer satisfaction measured using the Likert scale, X1 product quality, X2 commodity price, and X3 product nutrition (Black, 2020). ²0 displays a constant, while ²1  ²3 demonstrates the regression numbers. Researchers determine the regression coefficients by analyzing each variables beta and standard error for the assessment.

Possible Findings

There is a negative relationship between Nestle products and customer satisfaction. Customers do not use Nestle products frequently and are not interested in buying Nestle chocolate due to their unaffordable prices. Nestle uses poor marketing strategies that do not influence potential buyers to purchase the companys products, such as chocolate, which has not received global attention from consumers. Most clients do not prefer Nestle products due to their high prices that favor customers and low nutrition value (Purvi & Dignesh, 2018). For instance, most respondents said the Nestle milk formula for babies does not have any nutritional value. Most of their babies do not like the product, indicating low quality.

Most of the participants were not implied by Nestles information on its product, including how the products are good for their health due to their nutritional value. The respondents said the products do not meet their expectations and are unaware of how they should use the Nestle product to meet their needs. Nestle should prevent customer dissatisfaction by repackaging its chocolate products in a unique way that appeals to them. They should consider lowering its prices of goods slightly and increasing the quantity to make consumers satisfied. Additionally, the firm understands the promotional discounts and offers to attract more customers. Nestle should also develop a variety of innovative designs of chocolates to fit users satisfaction.

Nestle has a poor buyer relationship; the company does not listen to customer feedback, lacks proactivity, does not understand customer needs, and encourages customers to purchase their products. Five respondents complained that the company does not listen to customer complaints, particularly when a consumer does not understand the Nestle products information or knows the exact Nestle commodity that may fit their infants health. However, some respondents gave positive feedback about the company, including how the product differentiation strategy of the company plays a significant role in giving the customers the chance of choosing the product they prefer at their budgeted price.

Nestles pricing strategy is non-competitive, and most respondents supported it since the company retains its prices in the presence or absence of competitors. Pricing communicates crucial information to the consumers concerning how they will increase or decrease an item. Studies propose that as prices upsurge, the customers attitude towards the quality of goods being sold increases. The primary reason for this notion is that individuals are naturally doubtful about the costs that seem to be too good to be true. Remarkably, low pricing indicates to the clients that the commodity in question may not be predominantly valuable; perhaps it is of a low quality than costly goods. When a company uses low pricing for its products, consumers are more conscious of its quality in general, and they are likely to notice the errors or possible challenges. As a result, this may be challenging for customer satisfaction, leading to the notion that is purchasing whatever they are not particularly valuable or special.

Possible Solutions

Nestle can improve its customer satisfaction chiefly by improving its services to its consumers and working on customer satisfaction. Nestles customer satisfaction can be enhanced by listening to customers, being proactive, understanding the customers, delighting unhappy customers, making the consumer feel heard, protecting a brand from the negative limelight, and building a positive image. Nestle should listen to what the customers need in their products. However, some consumers may respond negatively concerning client service experience, affecting the brand and the business. Fortunately, being attentive to what individuals are saying about Nestle will be impactful through modern client service tools like social media, whereby conversations concerning the services of Nestle among its customers may be tracked.

Nestle can consider conducting surveys among consumers from various regions to help them acknowledge customer views about their products. Surveying will help the company know its strategies to meet its client requirements. For instance, concerning the participants responses about the low quality of Nestles products, the organization should gather views to know what they should do to improve their quality easily. The surveys will provide ample face-to-face interaction between the Nestle management and consumers that will help the corporation use the client complaints to enhance its reputation and improve or correct its weaknesses. Importantly, educating buyers about the Nestle products, including their usage, particularly among infants, will play an important role in eliminating the negative client reviews about the company.

Most clients give Nestle negative reviews due to the lack of knowledge of the uses of the companys products. Nestle can enhance its customer satisfaction by developing g multifaceted channels of communications whereby consumers can reach them easily and lay their complaints. With the digitization era, firms have adapted to the social media channels like Twitter and Snapchat. Different people prefer specific social media platforms as their principal modes of communication. Thus, Nestle should develop different social media platforms to enhance its customer support to receive various feedback and complaints from different people. Feedbacks will help Nestle improve its quality of goods and services and identify the needs and wants of its customers. Nestle may also use other modes of communication through subscribing to toll-free numbers and email support. The firm should also follow up with the complaining clients and know how to be assisted. Customer follow-ups make clients feel entrusted and valued, thus developing customer satisfaction.

The organization can use the appropriate tools to create a proactive consumer service trend instead of a reactive one. The management of Nestle can train its delivery staff to practice uprightness and manage anticipations in marketing. One of the largest sources of consumer dissatisfaction. Client dissatisfaction occurs when a product or a service does not rhyme with purchasers expectations. Nestle should carefully craft its marketing efforts to ensure that its promises things that it can fulfill. Nestle should understand its unique customers individual to enhance their satisfaction. The company can use its marketing people and customer care representatives to know what the clients expect from them. Understanding the customers wants can be done through collecting data to enable them to comprehend their wants and needs and address them.

The organization must use the appropriate tools to enhance its customers satisfaction. Nestle can ensure that all its clients complaints are heard and considered. For instance, if a client orders a commodity and is delivered with the wrong item, Nestle should ensure that the customer gets a different item that meets their expectations. The organization can ensure that each customers expectations are looked into to feel important and valued. Nestle can make its unhappy customers by giving them more than they requested. These small additional values changed the negative attitudes that some customers may be having concerning Nestle. On top of that, the company ensures that it protects its brand image from customers and competitors with negative motives.

Nestle should utilize interactions with unsatisfied clients as a chance of turning them around. Thus, such customers may spread false negative information about the organization to social media platforms. Enhancing frequent interactions with negative-minded individuals and proper customer service can avoid Nestle from being rebranded negatively since their issues have been heard. Nestle should focus on transforming unhappy clients into delighted customers by offering them what they need and paying attention to their issues. Giving disgruntled customers the services and goods they require makes them tell their friends about the quality services and goods they were offered, thus making Nestle maintain a good reputation.

Lastly, the company can pay attention to every customers demand to feel entitled and influential. Nestle should be ready to acknowledge some minor mistakes or errors in their services and goods; thus, it should step forward in times of such issues and clarify the mistakes to develop trust in the products and services of the organization. It should ensure that it approaches its customers with care during faulty products or services to avoid competitors utilizing the chance to bring them down. Paying attention to customers requirements will help the company build its reputation, trust, integrity, and long-term relationships with customers. Companies with value long-term relations ensure implementation is attained since they prioritize their reputation over profits.

Conclusion

Creating clienteles is an imperative aspect in businesses since customers involve in determining a businesss direction. Even though effort and time are vital factors in defining the development businesses should make concerning services and goods, patrons remain the main determining factors of a businesss future success. Subsequently, quality client provision is vital for the prospering of a business since it ensures customers are satisfied. Most of Nestles customers are not satisfied with its products because they do not meet their expectations. However, Nestle offers a wide range of products that give customers a variety of options to select, discourage market entry, and enhance the companys creativity.

Customer service involves major players, which can develop or break a commercial. Utmost actions assumed in an occupational such as marketing strategies, business planning, and quantity of sales are contingent on the clients. People involve in businesses to generate income via the amenities and goods they bid on. Nestle needs to design approaches that meet customer expectations to achieve its business objectives. A failure in service superiority can have solemn consequences since customs may choose to obtain the same amenities from supplementary service benefactors. The letdown implies that the firms will miss their customers, therefore, incurring fatalities. To safeguard the satisfactory provision of amenities to consumers, managers require establishing modes that can examine the processes of their industries, mainly service quality.

Reference

Black, K. (2020). Business Statistics: For Contemporary Decision Making. Hoboken: Wiley.

Purvi, D, & Dignesh, S, P. (2018). Study of consumer satisfaction: A survey of Nestle. Web.

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