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CUSTOMER SERVICES AND STORE CHARACTERISTICS: A COMPARISON OF PERCEPTIONS OF HISPANIC AND NON-HISPANIC HOME-FURNISHINGS CONSUMERS Beth E. S. Wuest, Southwest Texas State University Jerry V. Kinnaird, Dallas Market Center ABSTRACT Comparative analysis of quantitative data gathered from Hispanic and non-Hispanic consumers in Texas was used to assess similarities and differences in their impressions of customer services and store characteristics of home furnishings retailers. Results indicate Hispanics and nonHispanics are more similar than dissimilar in their preferences of customer services and store characteristics. INTRODUCTION Like other consumer buying decisions, home furnishings purchases are influenced by a variety of factors (Bennington 1985). Buyer behavior theory, as discussed by Engel, Blackwell and Miniard (1990), and Kotler (1988), shows that buyer's purchasing decisions are influenced by (1) buyer characteristics and (2) outside stimuli. Buyer characteristics (such as racial background and heritage) as well as outside stimuli (such as the store characteristics and services) offered by retailers most likely influence the purchasing behavior of home furnishings shoppers. Such services may ultimately influence the level of customer satisfaction and customer loyalty. In recent years the provision of quality customer service has become an increasingly important issue among retailers and consumers alike (Berry 1988; Berry and Parasuraman 1991). Research has shown the value of customer service for retailers of various merchandise categories (Morey 1980; Zeithaml, Parasuraman, and Berry 1991). Research has also identified specific customer services and store characteristics that are most important to consumers (Lumpkin, Greenberg, and Goldstucker 1985; Parasuraman, Zeithaml, and Berry 1988). However, the extent to which individual market segments value these services and store characteristics has not been thoroughly examined for some key market segments. The Hispanic population is a further study. The Hispanic increasing share of the U.S. cited as the fastest growing
market segment that warrants population constitutes an consumer market and has been consumer segment (Hamilton
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1989). The U.S. Census Bureau (1990, 1994) reports 22.4 million documented Hispanics equaling 8 percent of the total population and concentrated in nine states. Berman (1991) reports that Hispanics, as consumers, represent a purchasing power in excess of $171 billion. However, despite the rapidly growing strength of the Hispanic market, businesses have done little to attract or retain the Hispanic customer. For example, Fisher (1991) reports that the majority of Hispanics do not have store preferences when they shop, probably due to the failure of retailers to effectively market to the Hispanic population. Other studies by Hamilton (1989) and Swope (1989) suggest that Hispanics tend to be quality conscious, loyal customers. Consequently, it has been suggested that businesses who take the initiative to reach the special needs of the Hispanic market can effectively capture this market for years to come (Schwartz 1987). A need remains to compare Hispanic and non-Hispanic consumers' perceptions of home furnishings store characteristics and customer services. A better understanding of the similarities and differences between Hispanic and non-Hispanic consumers' perceptions would be beneficial to the home furnishings industry as it adjusts its retail environment, plans its marketing strategies, and considers its assortment mix. Consumers of Hispanic and non-Hispanic origin, in turn, would benefit from improved services and shopping environments, and hopefully, would experience greater consumer satisfaction when purchasing home furnishings. PURPOSE The purpose of this exploratory study was to compare Hispanics' and non-Hispanics' perceptions of the importance of customer services and store characteristics offered by home furnishings retailers. Further, this study was designed to insure that any apparent differences were not simply the result of differences in other demographic characteristics. Specifically, the research questions addressed in the study were: 1) To what extent are Hispanic and non-Hispanic homefurnishings consumers similar in their perceptions of the importance of customer services and store characteristics? 2) To what extent do Hispanic and non-Hispanic homefurnishings consumers differ in their perceptions of the importance of customer services and store characteristics?
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The purposes of this study were accomplished through an analysis of data gathered from a sample of Hispanic and a sample of non-Hispanic home furnishings consumers in the state of Texas using a self administered, mailed questionnaire. METHODS The methods employed in this study included a descriptive and comparative survey investigating the similarities and differences in the importance of customer services and store characteristics offered by home furnishings retailers as perceived by Hispanic and non-Hispanic consumers. Instrumentation A self-administered questionnaire was developed and pretested according to guidelines suggested by Babbie (1989, 1990) and Dillman (1978). Perceptions of the importance of customer services and store characteristics was measured with a 25-item, modified version of Lumpkin, Greenberg, and Goldstucker's (1985) Likert scale. The questionnaire also included questions regarding the socioeconomic characteristics and housing conditions of the respondent and respondents' households. In order to determine the validity and reliability of the modified instrument, the questionnaire was pretested in a two-stage process. First, the questionnaire was critiqued by a select group of ten home furnishings merchandising professionals including educators and retail managers of various types and sizes of home furnishings stores. Later, the questionnaire was completed by a group of 38 Hispanic consumers attending the monthly meeting of a local Hispanic organization. Findings of the second stage were statistically analyzed for reliability. Based on the pretest results, the questionnaire was edited into its final version. Sample The questionnaire was mailed to two samples of home furnishings consumers in the state of Texas. The first sample was drawn from the population of Hispanic consumers while the second sample was drawn from the population of non-Hispanic consumers. A mailing list of 500 Hispanic and 500 non-Hispanic consumer households that reside in the state of Texas was randomly selected from the population at large.
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Procedures The initial mailing of the questionnaire was accompanied by two subsequent mailings to generate a greater response rate. Using Dillman's (1978) method, a reminder postcard was mailed one week after the initial mailing. Two weeks from the first mailing a follow-up letter and second copy of the questionnaire was mailed to the non-respondents. After the data was collected, a variety of statistical tests were used to examine the findings of the study. Reliability measures, descriptive statistics, and analysis of variance results were obtained to address the purpose of this study. RESULTS The results of this study were based on the data provided by respondents in the sample. Of the 500 households in the initial sample of Hispanic home furnishings consumers, 12 were removed due to inaccurate addresses or lack of compliance with sampling criteria. A total of 127 questionnaires out of 488 Hispanic households were returned and deemed usable, yielding a response rate of 26.02%. Of the 500 households in the initial sample of non-Hispanic home furnishings consumers, 11 were removed due to inaccurate addresses or lack of compliance with sampling criteria. A total of 155 questionnaires out of 489 nonHispanic households were returned and deemed usable, yielding a response rate of 31.70%. Reliability of the Instrument The modified version of Lumpkin, Greenberg, and Goldstucker's (1985) Likert scale was determined to be useful for measuring the importance of customer services and store characteristics for a different sample and in a specific product category. With a Cronbach's alpha greater than 0.84 for both the Hispanic and non-Hispanic respondents, the 25-item scale was reliable for measuring the importance of customer services and store characteristics as perceived by home furnishings consumers. Importance of Customer Services and Store Characteristics Both Hispanic and non-Hispanic respondents showed similar, overall ratings on the scale. The total scores on the scale for Hispanic and non-Hispanic respondents were closely aligned. The total scores from the Hispanic respondents on the scale ranged from 89 to 174 out of a possible range of 25 to 175, with 175 indicating the
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greatest level of importance. The non-Hispanics respondents' total scores were only slightly lower, ranging from 85 to 166. The range of total scores of the Hispanics respondents was 85 and only slightly greater than the 81 range noted for the non-Hispanic respondents. Rankings of items by both Hispanic and non-Hispanic respondents were very similar. Ten items had the same rank for both groups including the two most important and two least important customer services and store characteristics. The two items ranked most important to both groups included ability to return unsatisfactory products, and product quality, while the items ranked least important included small store, and variety of stores close together. The greatest difference in ranking of items was in the item "uncrowded store" which was ranked 23rd by the Hispanic respondents and more importantly ranked 19th by the non-Hispanic respondents. Interestingly, the same nine items were ranked most important by both groups of respondents, but in a somewhat different order. Likewise, the seven lowest ranked customer services and store characteristics were included in both lists in a somewhat different order. Table 1 illustrates the rank, means, and standard deviations of each item for both the Hispanic and non-Hispanic respondents. Table 1 Importance of Customer Services and Store Characteristics of Home Furnishings Retailers Customer Services Hispanics Non-Hispanics Mean and Stores Rank Means* SD Rank Means* SD Diff. characteristics ____________________________________________________________ Ability to return 1 6.83 0.51 1 6.75 0.72 0.08 unsatisfactory products Product quality
2
6.81
0.58
2
6.75
0.65
0.06
Knowledgeable salespersons
3
6.62
0.77
5
6.40
1.01
0.22
Attractive prices
4
6.54
0.86
4
6.43
0.98
0.11
Store reputation
5
6.52
0.79
8
6.05
1.33
0.47
Availability of advertised products
6
6.50
1.12
3
6.55
0.65
0.05
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Readable labels or tags on products
7
6.48
1.03
6
6.33
1.05
0.15
Help in finding items in store
8
6.28
1.12
7
6.15
1.10
0.13
Variety in one store 9
6.17
1.15
9
5.91
1.19
0.26
Convenient parking
10
6.15
1.10
11
5.74
1.24
0.41
Sales (marked down prices)
11
6.11
1.20
12
5.73
1.33
0.38
Well known brands of products
12
6.09
1.14
10
5.79
1.08
0.30
Ease of finding items
13
6.08
1.22
14
5.62
1.26
0.46
Convenient/fast check-out
14
6.04
1.33
18
5.31
1.42
0.73
Delivery to home
15
5.95
1.29
15
5.61
1.59
0.34
Ability to place special orders
16
5.82
1.40
13
5.66
1.47
0.16
Credit or credit card availability
17
5.73
1.55
17
5.32
1.66
0.41
Acceptance of credit cards
18
5.48
1.77
16
5.33
1.75
0.15
Package carry out House call service
19 20
5.42 5.28
1.60 1.83
21 20
4.63 4.65
1.75 1.88
0.79 0.63
Store location close 21 to home
4.99
1.73
23
4.51
1.45
0.48
Availability of design assistance
22
4.96
1.77
22
4.55
1.70
0.41
Uncrowded store Variety of stores close together
23 24
4.95 4.30
1.60 1.83
19 24
4.67 3.40
1.44 1.62
0.28 0.90
Small store
25
3.33
1.73
25
2.94
1.47
0.39
*Minimum is 1; maximum is 7. ____________________________________________________________
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The Hispanic and non-Hispanic respondents also showed a moderate- to high-level of importance for most items included in the scale. However, the Hispanic respondents' mean scores for scale items were slightly higher than the corresponding mean scores of the non-Hispanic respondents. Among the Hispanic respondents, means for the 25 items in the scale varied from 3.33 to 6.83 out of a possible range of 1.0 to 7.0. Comparatively, the Non-Hispanic respondents' means for the 25 items in the scale were only slightly lower, ranging from 2.94 to 6.75 out of a possible range of 1.0 to 7.0. Generally, Hispanic respondents perceived customer services and store characteristics to be more important than the non-Hispanic respondents. Results from Hispanic respondents produced 14 scale items with a mean score greater than 6.0, while results from non-Hispanic respondents produced only 7 items with a mean score greater than 6.0. Further, only one item was considered less than moderately important (less than 4.0) by Hispanic respondents while two items were considered less than moderately important by the non-Hispanic respondents. "Small store" was rated less than moderately important by both groups. However, non-Hispanic respondents also rated "variety of stores close together" less than moderately important. The mean scores on individual scale items varied little between Hispanic and non-Hispanic respondents. The greatest difference in means was in variety of stores close together (with a difference in mean scores of 0.90); package carry out (with a difference in mean scores of 0.79); and convenient/fast check-out (with a difference in mean scores of 0.73). The items with the least difference in the means scores included: availability of advertised items (with a difference in mean scores of -0.05); product quality (with a difference in mean scores of 0.06); and ability to return unsatisfactory products (with a difference in mean scores of 0.08). Overall, Hispanic respondents' mean scores on individual items were higher than non-Hispanic respondents' mean scores on all but one of the items. The one item that had a higher mean score among non-Hispanics was on the availability of advertised items. However, this item was also the item with the most similar mean score among the two respondent groups. Effect of Background on Importance of Customer Services The background characteristics of both the Hispanic and
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non-Hispanic respondents in this study were found to be elevated from that of the general population in the state of Texas. However, respondents in both sampled groups represented a full range of housing and household characteristics. Over 90 percent of the houses of both households in this study represented a higher income range and were less likely to headed by a single person than the state average of just over 60 percent (U.S. Bureau of Census 1990). Although direct comparisons were not possible, it also appears that the households in this study represented a higher income range and were less likely to be headed by a single person that the state average. Table 2 lists the percentages of housing and household characteristics of the respondents. Table 2 Description of Housing and Household Characteristics ____________________________________________________________ Housing Characteristics Hispanic Non-Hispanic Percent Percent Housing Type Single Family House Other
93.1 6.9
95.5 1.9
Tenure Own Rent
95.9 4.1
97.4 2.6
Age of House 9 years or newer Between 10 and 24 years 25 years or older
13.7 41.2 45.1
15.5 52.9 31.6
Size of House 1499 square feet or 1500 to 1999 square 2000 to 2499 square 2500 square feet or
21.2 35.4 23.2 20.2
19.5 24.0 23.4 33.1
Style of Furnishings Traditional Informal/Country Updated Contemporary
44.0 30.0 26.0
23.2 49.0 27.8
Size 1 or 2 persons 3 persons 4 persons 5 persons or more
25.5 17.6 36.3 20.6
38.1 28.4 25.8 7.7
less feet feet more
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Marital Status Married Single
88.2 11.8
92.9 7.1
Income $29,999 or less 31.7 11.1 $30,000 to $44,999 37.6 19.4 $45,000 to $59,999 23.5 16.7 $60,000 or more 28.6 52.8 ____________________________________________________________ None of the housing and household characteristics of either the Hispanic or non-Hispanic respondents were found to be influential in the perception of the importance of customer services and store characteristics offered by home furnishings retailers. Analysis of variance showed that the household variables of size of household, marital status, and income, as well as the housing characteristics of type, tenure, age and size of house and style of furnishings, had no effect on the ratings of any of the scale items by either group of respondents at a significance level less than or equal to 0. 10. CONCLUSIONS Regardless of their housing or household characteristics, both Hispanic and non-Hispanic home furnishings consumers in the state of Texas perceive customer services and store characteristics, in general, to be very important. Twentythree of the twenty-five scale items were considered at least moderately important to both groups. Similarities between Hispanics and Non-Hispanics Hispanic and non-Hispanic home-furnishings consumers are similar in that they both highly value the ability to return unsatisfactory products, product quality, attractive prices, and knowledgeable salespersons. Likewise, Hispanic and non-Hispanic home furnishings shoppers are similar in that both groups are less concerned with shopping in a small store, a variety of stores close together, and the availability of design assistance. They may actually perceive these services to be related to the lack of other, more important features such as quality products at attractive prices. Differences between Hispanics and Non-Hispanics Differences between Hispanic and non-Hispanic home-
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furnishings consumers, although slight, were apparent in their overall rating of the importance of customer services and, store characteristics. In general, the Hispanic respondents rated home furnishings services more important than the non-Hispanic respondents. The Hispanic respondents rated none of the services less than moderately important and valued services such as variety of stores close together, package carry out, and convenient/fast check-outs more highly than the non-Hispanic respondents. It should be noted that these conclusions are indicative of both Hispanic and non-Hispanics with a somewhat elevated socioeconomic status compared to all households in Texas. Further, Hispanics of Mexican origin constitute a higher percentage of the Texas Hispanic population than in many other states (U.S. Bureau of Census 1994). Consequently, caution must be taken in generalizing these findings to Hispanic populations of other origins. IMPLICATIONS Home furnishings retailers should recognize the importance that home furnishings consumers place on customer services, whether they are of Hispanic or non-Hispanic origin. With this knowledge, home furnishings retailers should make every effort to provide the quality of customer service deemed important to both segments of the market. The results of this study suggest several directions for home furnishings retailers. Because returnability of unsatisfactory merchandise, availability of quality products, assistance from knowledgeable salespeople, and attractive prices are all highly valued by both Hispanic and non-Hispanic home furnishings consumers, retailers need to adjust their policies and practices to best accommodate these needs. Retailers may need to review their return policies to make them more customer friendly. In addition, retailers may need to reexamine their vendors' relationships in light of their ability to accept the return of unsatisfactory merchandise and provide products of quality and value. Home furnishings retailers may also need to place more emphasis on the hiring, on-going training, and compensation of employees, sales associates, and managers. Home furnishings personnel who understand the value of customer service should be a priority in hiring and rewarding practices. Likewise, home furnishings retailers should place a higher priority on the education and updating of employees so that they are more knowledgeable about product qualities and company policies and have the ability to convey this information to the
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customer. Merchandisers will also need to negotiate better costs and terms in acquiring products and managers will need to more carefully control expenses in order to develop a more competitive pricing structure. In making these accommodations, retailers will be more apt to develop the strong reputation that is also very important to both market segments. On the other hand, because a small store was not highly valued by either the Hispanic or non-Hispanic markets, home furnishings retailers need to assure their customers that even if their store is small, they are capable of offering a wide variety of quality merchandise at attractive prices. Fortunately, for many existing retail establishments, the location and size of the store, and variety of stores nearby (which are difficult to impossible to adjust), were viewed by both the Hispanic and non-Hispanic markets as less important than the provision of other, seemingly more important services. Home furnishings businesses that are trying to capture the Hispanic market must recognize the importance placed on customer services by the Hispanic consumer. Although the services important to the Hispanic consumer are not all that different from the services deemed important to the non-Hispanic market, the Hispanic market has been shown to place a somewhat higher value on customer services. Therefore, home furnishings retailers must place an even greater emphasis on providing quality customer services and store characteristics for their Hispanic patrons. Hamilton (1989), Swope (1989), and Schwartz (1987) have suggested that retailers who accept the opportunity to provide the Hispanic market with effective customer services will be rewarded with a loyal following. Further research is needed to find out to what extent Hispanic home furnishings consumers are really different from consumers in other market segments. Likewise, additional research is needed to determine the differences between Hispanics of various origins. Specific information pertaining to the different market segments would enable home furnishings retailers to provide better services for all of their customers. REFERENCES Babbie, Earl R. (1990), Survey Research Methods. CA: Wadsworth Publishing Company.
Belmont,
Babbie, Earl R. (1989), The Practice of Social Research.
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Belmont, CA:
Wadsworth Publishing Company
Bennington, R. R. (1985), Furniture Marketing: From Product Development to Distribution. New York: Fairchild Publications. Berman, Gary L. (1991), "The Hispanic Market: Getting Down to Cases," Sales & Marketing Management, 143 (12), 65-74. Berry, Leonard L. (1988), "Delivering Excellent Service in Retailing," Retailing Issues Letter, 1(4), 19. Berry, Leonard L. and A. Parasuraman (1991), Marketing Services: Competing through Quality. New York: The Free Press. Dillman, Don A. (1978), Mail and Telephone Surveys: Total Design Method. New York: John Wiley & Sons.
The
Engel, James F., Roger D. Blackwell, and Paul W. Miniard (1990), Consumer Behavior. Hinsdale, IL: Dryden Press. Fisher, Christy (1991), "Retailers Target Ethnic Consumers," Advertising Age, 62 (41), 50. Hamilton, Patricia W. (1989), "The $160 Billion Hispanic Market," D&B Reports, 3 (3), 40-43. Kotler, Philip (1988), Marketing Management. Cliffs, NJ: Prentice-Hall.
Englewood
Lumpkin, James R., Barnett A. Greenberg, and Jac L. Goldstucker (1985), "Marketing Needs of the Elderly: Determinant Attributes and Store Choice," Journal of Retailing, 61 (2), 75-105. Morey, Robert C. (1980), "Measuring the Impact of Service Level on Retail Sales," Journal of Retailing, 56 (2), 81-90. Parasuraman, A., Valarie A. Zeithaml, and Leonard L. Berry (1988), "SERVQUAL: A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality," Journal of Retailing, 64 (1), 12-40. Schwartz, J. (1987), "Hispanic Opportunities," American Demographics, 9 (5), 56-59. Swope, G. (1989), "The Hispanic Factor: New Attention," Credit, 15 (2), 22-24.
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U.S. Bureau of Census (1990), 1990 Current Population Survey. Washington, DC: U.S. Government Printing Office. U.S. Bureau of Census (1994), Statistical Abstract of the United States: 1994. Washington, DC: U.S. Government Printing Office. Zeithaml, Valarie A., A. Parasuraman, and Leonard L. Berry (1991), Delivering Quality Service. New York: The Free Press.
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