COVERT SHOPPING AND SALES FORCE PERFORMANCE IMPROVEMENT OF SUPERMARKETS IN PORT HARCOURT

COVERT SHOPPING AND SALES FORCE PERFORMANCE IMPROVEMENT OF SUPERMARKETS IN PORT HARCOURT

ABSTRACT: This work aims to ascertain the extent to which Covert shopping affects sales force performance improvement of supermarkets in Port Harcourt. It focused on how Covert shopping can be used to improve sales force performance. The three dimensions studied were information search, in-shop experience, and information dissemination. Their effects on performance improvement were measured in the study. A cross-sectional survey design was used and nine hypotheses were formulated for the study and tested using the data collected from 60 respondents through a five-point Likert scale questionnaire, with the sampling frame selected through convenience sampling. We adopted multiple regression to analyze and as well determine the extent of the relationship between Covert shopping and sales force performance improvement of supermarkets in Port Harcourt. Findings showed that some dimensions of  Covert shopping influence performance while others do not significantly influence performance hence the researcher concluded that mystery has a positive relationship with performance improvement. We therefore that supermarkets should engage in the use of mystery shoppers to improve performance.

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CHAPTER ONE

INTRODUCTION

• BACKGROUND TO THE STUDY

Retailing performance is largely determined by its strategy. A strategy coordinates employee’s activities and communicates the directions the retailer plans to take every day by examining their environment. i.e customer trends, study new technologies and monitor their competitors. (Michael and Moore, 2007). A retailer determines the needs of its target market and satisfies them by offering excellent customer service more than its competitors (Moore, 1994).

Covert shopping can be a critical component of a company’s “toolbox” to develop and maintain service standards (Gartner, 2000). It has been used extensively in a variety of industries, including the hospitality industry, for this very purpose. It can also serve as a means for helping to maintain a sustainable business model, in today’s consumer-driven world. It is used extensively in retail operations (Finn & Kayande, 2000).

Service managers have traditionally used service standards to manage the service delivery process. First, they set the standard and then they measure performance against that standard, taking action when standards have not been met. The main difficulties with monitoring performance are associated with the heterogeneous nature of services, their perishability, their blend of tangible and intangible elements and the fact that consumption takes place simultaneously with production (Fitzsimmons & Fitzsimmons, 2006).

Gartner (2000) opines that Covert shopping exercise examines recruitment and training, the evaluation visit, data collection, reporting methods, and feedback, as well as the reliability and validity of this particular method of obtaining customer intelligence to determine its effectiveness. Oni et al, ( 2015), in his work studied Covert shopping; a tool for the evaluation of service quality in the Nigerian Deposit Money Banks. The work revealed that Covert shopping has a significant relationship with quality service delivery in Nigerian Deposits Money Banks. The study further recommends among others that Covert shopping is one way of gathering service quality information, it should be used alongside other intelligence-gathering methods such as complaints analyses and satisfaction surveys to allow factually based management decision-making. Hesselink et al, (2005), worked on Covert shopping: A tool to develop insight into customer service provision. His work showed that the Covert shopping instrument is useful for improving service delivery. Douglas and Douglas (2015) studied Mystery Shoppers: An Evaluation of their use as Service Performance Monitors. They identified both good and bad practices in the recruitment, training, and use of mystery shoppers and the need to eliminate those bad practices. They also provided guidelines regarding recruitment and the use of mystery shoppers.

Successful organizations, however, support their employee by instituting performance factors like clear job expectations, skills and knowledge required for the job, adequate physical environment and immediate feedback. (Schiuma, 2012). The extant literature provides for the conceptualization and relevance of Covert shopping and sales force performance improvement but had not given the desired depth in operationalizing the concept and relating it to salesforce performance improvement in Port Harcourt. Our point of departure, therefore, is to develop a model that emphasizes on Covert shopping and sales force performance improvement in Port Harcourt.

• STATEMENT OF THE PROBLEM

Covert shopping is used more as an indication of customer service and satisfaction rather than a method for evaluating employees’ performance. How customers view their business and products (Golob, 2002).  Covert shopping is not marketing research but the practice of using trained shoppers to anonymously evaluate customer service, operations, employee integrity, merchandising, and product quality (Michelson 2007). The intention of Covert shopping is not to prove to the workers that they are not performing their work accurately. The goal is a permanent improvement of their attitude to customers and professional growth (Finn, 2001).

Preliminary investigation shows that organizations are faced with the challenges of shoplifting and employees’ inability to interact timely and effectively to consumers and also being able to handle customer complaints. The performance of an employee matter to the organization and with this an organization will succeed in mapping out strategies used in improving organizational performance (Iwu et al, 2015).

Thus, many organizations are using mystery shoppers to evaluate the performance of employees within and outside the organization to enhance the functionality and performance of the firm. With the above-stated problem, we propose that the main aim of this investigation is on “Covert shopping and sales force performance improvement of Supermarkets in Port Harcourt”.

• AIM AND OBJECTIVES OF THE STUDY 

This study aims to determine the extent to which Covert shopping influences salesforce Performance Improvement. Based on this, we have the following specific objectives;

1. To determine the extent of the relationship between information search and sales force performance improvement
2. To determine the extent of the relationship between in-shop experience and sales force performance improvement
3. To determine the extent of the relationship between information dissemination and sales force performance improvement.

• RESEARCH QUESTIONS

Based on the problems identified, the following research questions were raised.

1. To what extent does information search affect sales force performance improvement?
2. To what extent does in-shop experience affect sales force performance improvement?
3. To what extent does information dissemination affect sales force performance improvement?

• Conceptual Framework (IMG. file is missing)
• RESEARCH HYPOTHESES

The following hypotheses were formulated based on the research question above.

Ho₁:     There is no significant relationship between information search and product knowledge.

Ho₂:     There is no significant relationship between information search and attitude.

Ho₃:     There is no significant relationship between information search and interactive skills.

Ho₄:     There is no significant relationship between in-shop experience and product knowledge.

Ho₅:     There is no significant relationship between in-shop experience and attitude.

Ho₆:     There is no significant relationship between in-shop experience and interactive skills.

Ho₇:     There is no significant relationship between information dissemination and product knowledge.

Ho₈:     There is no significant relationship between information dissemination and attitude.

Ho₉:     There is no significant relationship between information dissemination and interactive skills.

• SIGNIFICANCE OF THE STUDY

Every piece of well-executed research is a contribution to the existing stock of knowledge. Therefore, this work is a vital tool for the subject matter under investigation.

Firstly, the work will be of immense value to the management of supermarkets most especially in Port Harcourt; since the problems highlighted above would reflect their experience and challenges and aid organizations to enhance their performance.

Secondly, it will also aid the organization inappropriately selecting the right mystery shopper to solicit reasonable information for the organization.

Finally, the work will serve as a resource material or secondary data to both undergraduate and post-graduate students wishing to research this area.

• SCOPE OF THE STUDY

The scope of this study covers three major areas. These include content scope, Geographical scope and Level/Units of Analysis.

Content scope: This study focuses on determining the influence of Covert shopping and sales force performance improvement.

Geographical scope: This research will be domiciled in Port Harcourt.

Level/unit of Analysis: This study adopts the micro-level of analysis and the unit of analysis of the study is the supervisors and managers.

• LIMITATION OF THE STUDY

This study is limited by lots of variables which include accessibility of respondents, respondents’ bias which is a result of their emotional attachment towards their favorite supermarkets, level of cooperation by some respondents for the fear of being victimized for giving information.

• DEFINITION OF TERMS

Covert shopping: The practice of using trained shoppers to anonymously evaluate customer service, operations, employee integrity, merchandising, and product quality.

Information Search: A stage in the consumer Decision Process during which a consumer searches for information internally and externally.

In-Shop Experience: An interaction between an organization and a customer throughout their relationship.

Information Dissemination: The broadcast of a message to the public without direct feedback from the audience.

Performance Improvement: Measuring the output of a particular business process or procedure to increase the output increase the effectiveness of the process or procedure.

Product Knowledge: stored information about a particular product

Employee Attitude: Specific predispositions or mental sets

Interactive Skill: The exchange of information between an organization and the customer

• ORGANIZATION OF THE STUDY

This study is organized into five chapters. Chapter one focuses on the introduction or background to the study, Statement of the Problems, Research question, and Research hypothesis. Chapter two examines the review of related pieces of literature. Chapter three deals with the methodology of research which includes: research design, population and sample size determination. Chapter four deals with the presentation and analysis of data while chapter five discusses the finding, conclusion, implication, and recommendations for the study.