THE EFFECT OF DISTRIBUTION PERFORMANCE ON CUSTOMER SATISFACTION: THE CASE OF AQUA ADDIS BOTTLE WATER

Abstract

The main objective of the study is to investigate the effect of distribution performance on customer satisfaction in case of Aqua Addis bottled water. The study involved a self-designed and pre-tested questionnaire with 36 question elements that were distributed to 384 Hotels, Restaurants, Bars, Cafes, and Shops. The reliability of the questionnaire was assured through determination of Cronbach’s alpha after which to check whether the distribution performance (independent variables) associated with customer satisfaction (dependent variable) after which regression analysis was conducted to investigate the impacts of independent variables (distribution performance) on customer satisfaction in the case of Aqua Addis bottled water p.l.c. A conceptual framework was used as a guideline to test the relationships between distribution performance and customer satisfaction. A quantitative and qualitative approach is chosen in this research. The findings of the study show that the identified distribution performances, product accessibility, distribution timeliness, distribution flexibility, distribution quality and distribution quantity were implemented in varying degree but strongly associated with customer satisfaction in Aqua Addis bottle water p.l.c. Moreover, the impacts of this distribution performance against customer satisfaction from strongest to the weakest are mentioned here: Distribution Quality, Distribution Flexibility, Product Accessibility, Distribution Quality and Distribution Timelines.