AN INVESTIGATION INTO CUSTOMER SATISFACTION ALONG THE OIL SUPPLY CHAIN IN GHANA

ABSTRACT 

Globalisation and intense competition have compelled organisations to think of better ways to improve their performance and still remain competitive. It is therefore necessary to ensure proper management of the supply chain due to increasing costs and depleting resources. The oil industry involves complexities in its operations and hence a proper management of its supply chain is appropriate to ensure that customers are duly satisfied. The focus of this study is to investigate the practices of Oil Marketing Companies and Bulk Distribution Companies in relation to quality, flexibility responsiveness and cost within the downstream oil supply chain in Ghana. These are considered to be the constituents of customer satisfaction. Secondly, the study seeks to explore the level of importance customers place on each of the four identified constructs of customer satisfaction. A mixed methods approach was used for this study where managers from six Bulk Distribution Companies and four Oil Marketing Companies were interviewed. Similarly, a survey of 240 end users of petroleum products were used to investigate the importance they place on the identified constructs of customer satisfaction. The qualitative data was analysed thematically whilst the quantitative data was analysed using Confirmatory Factor Analysis and statistical procedures of multiple comparison of means.  The findings show that whilst OMCs and BDCs mainly strive for quality, customers place more emphasis on responsiveness and cost. The findings of the study also indicate that a one size fits all strategy does not exist for all organisations. The study ends with a framework for an effective downstream oil supply chain. Research implications and future research directions are discussed.