Executive Summary
Changing purchase decision study is an important source of information for understanding standard quality for production of the product and rendering of services. An organisation needs to establish a relationship of trust and confidence with its customers so that it can understand the requirements accordingly and cater to its best possible way. The particular research is conducted in the reference to the retail Grocery sector. Consumers’ decision-making process tries to influence the choice selection for a product made by the consumers. However, branding and price shapes up an important tool effective in shaping the consumers’ behaviour for a particular product.
In the particular dissertation study, the researcher has tried to understand the role of factors that influence in consumers’ decision-making process while purchasing grocery. Application of primary and secondary sources along with quantitative and qualitative techniques has helped the researcher in gaining better details of the research topic. Based on the result of the study, the researcher has also listed list of recommendations that can ideally help the organisation in adopting better strategy to influence customers to purchase grocery from their stores.
1.5 Background of the topic. 12
1.6 Rationale of the study. 13
Indicative literature review.. 15
2.7Framing of price and price reductions. 19
2.8Consumer response to sales promotions. 19
2.8.1The effect of Discount, Display and Ad features. 20
2.8.2The effect of coupons. 20
2.10 Reasoned action theory. 23
3.2.1 Justification of selection of philosophy (Positivism) 25
3.4.1Qualitative and Quantitative approach. 26
Data analysis, findings and Interpretation. 28
4.2 Quantitative analysis: For customers. 28
Qualitative analysis: For Managers. 51
Conclusion and recommendations. 54
5.2 Linking with objectives. 54
5.4 Limitations of the study. 55
5.7 Further Scope of the Study. 56
The UK retail grocery market has been growing significantly year-on-year during the last few years. Online grocery purchasing has been successful than grocery sales in general, this is due to lack of new entrants to the market. (Keynote, 2013) The online grocery market has seen a 17.8% rise in purchased groceries via the internet at least once in a year whiles, 3.8% of consumers have been making online purchases at least once weekly and a further, 2.4% make purchase at least two or three times a month. (Keynote, 2013) On the other hand, a third of the proportion of those who brought groceries online admits that due to financial difficulty, this has forced them to reduce on the amount spent on making online purchasing. (Keynote, 2013)
The grocery retail sales were reported at an estimated £141.5 billion during 2012 financial year, with a 3.7% increase in 2011, whiles 46.8% accounts for the total sales including fuel. (Mintel, 2013) The Grocery market is affected by several factors including, economical factors that influences the decision making of an individual, whiles, political factors such as shortage of production from distributions and increase in price on products. (Mintel, 2013)Also, social factors like healthy eating and consumer preference to purchase home-grown products and, Technological factors influencing online purchasing pattern, are all factors that impact on both the consumer on the consumers and suppliers. (Mintel, 2013)
To be able to understand the grocery market in full, Kantar WorldPanel examined the grocery market for the year ending March 2014. The report declares the grocery market inflation standing at 1.9%, whiles the market has seen a decrease in inflation level since July 2010. (Rogers, P & Brien, R. 2014) The figures were put together by comparing 75,000 identical products year-on-year in the proportions purchased by shoppers and represent the most up to date data available. (Rogers, P & Brien, R. 2014)
After monitoring the household grocery purchasing behaviour of 30,000 demographically representatives in the UK, the data from Kantar World panel indicating an increase in Aldi’s growth rate at a record of 33.5%, whiles the company now accounts for 4.3% of the total grocery market, whereas, results from the research conducted by Kantar World panel shows a further increase of 3.2% from Lidl reaching its previous record. (Rogers, P & Brien, R. 2014) Despite, the success from other retail competitors, Waitrose shrugged off the demands from the discounts with as record market share of 5.0% the highest ever the market has witness. (Rogers, P & Brien, R. 2014) Furthermore, within the last three years, Waitrose, Aldi and Lidl have retained a total of 3.5 share points from competition results to £4.4 billion per year. (Rogers, P & Brien, R. 2014) In terms of the performance from the big four in the grocery market, Sainsbury’s was the only retailer to maintain its market share year-on-year at 17% and reached the overall market growth of 2.2%. Tesco, ASDA, and Morrison’s all reported a decline in share and Tesco and Morrison witness a decrease in actual sales. (Rogers, P & Brien, R. 2014)
This approach is similar to the research conducted by Kantar Worldpanel, where it identifies the attitudes of consumers towards pricing and promotions in food and drinks in the UK. Pricing and promotion is an important factor that impact on consumer’s behaviour towards a particular product. (Mintel, 2013) state that consumers have been heavily involved in barging hunting with the grocery sector, in which seven in ten saying they like the “thrill” of getting a taste of a barging. In other words, consumer continues to expect some form of a discount when making a purchase. Also, with promotion been heavily successful in the grocery sector, it has impacted on consumers’ perception towards promotional activities by which consumers are only set-out to shop when there is a promotion. (Mintel, 2013) Although, the report also state that half of the consumers declare that quality is more vital than the price of a product, they are prepared to pay a little extra if the producers are paid fairly. (Mintel, 2013) Rise in food prices have seen food manufacturer and retailer responding positively to consumers, even in times like the recession. (Mintel, 2013) By responding positively, offering low prices to consumers in order to make them aware that in time like recession they can offer customers low prices which helps to attract those with low disposable income and also be able to meet consumers demand at all times such as change in economic situation. (Mintel, 2013)
A good example is the Aldi’s ‘like Aldi’ advertising campaign, ASDA price lock guarantee across staple products like milk, bread, and eggs or price matching scheme from Tesco’s price promise. (Mintel, 2013) These are promotional activities that take place within a retail organisation in order to keep consumers happy and meet their demand at every stage of their experience. (Mintel, 2013)
East, R. 2008. Pp.82 state that consumers judgment on price depends on the product been good for value or not, importantly there are some focus on quality with price been equally important in consumers’ mind-set. Pricing is one of the elements used to explore the quality of a product. Likewise, consumers’ behaviour towards high priced products differs from low priced products due to their perception of high products been better of quality, whereas consumers sometimes ignore the price of the product if the product is quality enough to for them make the purchase. East, R. 2008. Pp.82
The aim of this research is to pinpoint relevant factors influencing the change in purchasing decision by consumers in the grocery sector. The performance of the grocery sector will be reviewed and the attitude of the consumers towards purchasing decision making will be analyzed.
Understanding how consumers switch from one brand to another is very challenging for companies because there are various factors influencing the decision of the consumers.
Factors such as recession has been one driving force behind brand switching which has both impacted on consumer purchasing decision and companies performance in the grocery market, for instance, there are more consumers purchasing own brand products as an alternative product. This has left consumers with no choice but to either stocking up products during recession or buy little and often. Also, price framing is another relevant area that will be critically examined, in order to analyse the impact on consumer decision-making of different ways which prices can be framed. (Huck, S and Wallace, B. 2010) In order to critically examine the impact that price framing has on consumers decision-making, relevant price framing techniques will be carefully analysed. Price framing techniques such as Base-line treatment, Drip pricing, Sales, Complex pricing, Baiting, and Time limited offers are techniques used by retailers in other to offer consumers with alternative promotional offers to capture consumers’ awareness towards the offer. (Huck, S and Wallace, B. 2010)
Ehrenberg Hammond and Goodhardt (1994) cited in East, R (1997) state that when a price discount has finished and the product is offered again at the normal price, sales return to the pre-promotion level. This justify that consumer are heavily engaged during promotional activities but less empathetic about making a purchase.
There are several factors that influence the purchasing decision of a consumer in the grocery sector. For instance, economical changes that impacts on consumers purchasing decision in which forces consumers to cut down on their purchases, (Jobber, D. 2010.pg.147). In the same fashion, emotional factors such as like or dislike towards a particular product can be identify as another causes in which may tamper consumers choice on whether to purchase a product or not. (Jobber, D. 2010.pp.147). There are other factors influencing the purchasing decision which will be discussed later on. There are 5 stages which consumers have to go through before they can make a purchasing decision. Firstly, the need recognition or problem awareness, information searches, evaluation of alternation, purchase and post-purchase decision evaluation of decision. (Jobber, D. 2010.pg.149) These are all stages in which consumers go through in order to make a final decision on purchasing the product or looking for alternative product to suit the need of the consumer
Selection of topic tries to focus on the relationship between the changing purchase decision making and the influencing factors. Organisations today are to focus on the branding concept so that customers are attracted and influenced while making buying decision process (Baker and Saren 2010). The research aims to understand the importance of consumer buying behaviour on purchase of grocery items in UK. The various factors that help the consumer in making choice for selection will be considered so that role of branding can be evaluated at better level.
Exposure explains the consumer buying habits. The buying habits can be random or deliberate. With random exposure consumer purchase goods haphazardly without having any conscious afford. Next would be deliberately consumer buys goods deliberately as they know the side effects and benefits of the products (Hoyer and Maclnnis, 2008). However, consumer gives lower attention to low priced items and give high involvement on high price items like car and expensive clothes. After giving involvement consumer uses short term memory to identify the problems in purchasing items like bread or vegetables and remember long term values and benefits of those goods such as car and television etc (Kincaid, 2007).
The research translates into three major objectives:
To explore the elements of the decision making process that influence the attitudes of consumers towards promotional activities.
To critically assess the study the consumers’ attitudes influencing purchase decision-making process
To identify the factors that affects decision process of buying grocery items
Research question are considered to be helpful in understanding the topic of the research in a much easy and detail manner (Anderson and Kerr, 2009). The list of the research question for the particular topic is given below:
How Price of the Grocery helps in achieving better sales for an organization?
What is the role played by promotions in decision making of the consumer while purchasing Grocery?
What is the relationship between price and customer decision making process in retail sector?
What are the other factors that helpful in giving brand recognition to the products of retail sector?
There are several factors impacting the store performance and sales for the grocery retail industry. Price framing and promotional activities are issues impacting on the performance of the grocery market. As an illustration, Tesco and others tend to place promotional with limited life span. Kantar world panel, (2013)Whereas, competition from other brands can also influence promotional offers on products, for instance, ASDA’s price guarantee, Sainsbury’s ‘Brand match’ and Tesco’s ‘price promise’ are all promotional offers that retailers engages in order to meet market demand and also compete against competition. Kantar world panel, (2013) In other words, price is less of a differentiator and consumers cannot be convinced to switch outlets based on cost alone. Kantar world panel, (2013) Tesco and others have shifted their focus on providing high-quality own label products and this approach seems to be effective and successful at this stage. Kantar world panel, (2013)With the up-market ranges of Tesco Finest and Sainsbury’ s Taste the Difference have both registered double digit growth as shoppers respond to the premium offer stated by Kantar world panel, (2013).
Building on the evidence given by Kantar world panel, Wright, R. (2006).pp.8-9 analyse the law of supply demand in the retail market by stating that law of supply demand as an inverse relationship between the price of a product or service and the demand over a period of time, which for most goods as the price fells demand expands and when the price rises demand shows down. Especially, during sales promotion demand for grocery products will increase due to the level of demand of consumer anticipating to make purchase. Sales promotion involves various short-term promotional techniques designed to achieve a desired acknowledgement from consumers. D.V. Gilbert, N. Jackaria, (2002) Likewise, Office of Fair Trade, (2010) demonstrate how price framing impacts on consumers decision making. Price framing involves five different elements such as:
Time limited offer: In which consumers see straight per-unit prices. Time limited offers are very much deeisgned to cater for the shorter period of time and influence consumer to purchase more and more of goods form the store. The main aim of the time limited offer is to increase sales rather than increase profit.
Drip pricing: where the consumers see only part of the full price up front and price increments are dripped through the buying process. Drift pricing helps to be carried out hurriedly and smoothly purchasing power of consumers. Drift pricing gives slow and gradual movement of the price.
Sales: In which a sale price is given and a pre-sale price is also given as a reference to the consumer, ‘was £2 is now £1’ (actual prices are identical to the baseline treatment). The sale price can be calculated by subtracting the discounts percent. Sales price are normally MRP price and the price which stores that offers to the consumers.
Complex pricing: where the unit price requires some computations, ‘3 for the price of 2. It gives the stores by setting up price lists, unit’s measures and the products families. Complex pricing increases the sales by giving hidden offers which is very much attract the customers. This technique makes the consumer to buy more of the products.
Baiting: In which sellers may promote a special price but there is only a limited number of goods actually available at that price. It also known as bait and switch pricing where goods of the price is being offered at extremely low price. The offer is with only limited amount of goods.
Influence changing purchase decision making process attract the customers holds the theme of the research project (Andrews and Teller, 2007). Changing in purchase decision making process of consumer in Grocery items focuses on the building a communication bridge between the buyers and sellers. Decision making process also involves trust and confidence relationship that initiates a consumer to be loyal to the organization irrespective of the price or promotions. As said by Baker and Saren (2010), brand building is a trend available in the market that helps in improving the participation of the organizations.
Concept of changing in buying pattern of consumer towards Grocery items helps in creating customer base for the organization so that amidst the rival firms, rise of demand in the Grocery items can take place and mind positioning among the consumers (De Mooij, 2010). Consumer buying pattern involves of awareness so that customers can get adequate knowledge about the Grocery items catered by any retail stores of UK.
The basic reason of choosing particular topic is the importance of the taste and preference of the customers in the process of buying any of the grocery products (Foxall, 2008). Mentality of the customers is shifting from local items of the stores to the branded quality of the products by Tesco and Sainsbury and Asda etc highlight the concept of awareness among the consumer as well. In the contemporary society, consumer have too much of options and are changing their buying pattern according to the major factor that is influencing the decision making of the consumers (Gee and Gee, 2010). Customers usually go for the Grocery items in the retail stores although cost of the products is slightly higher than the local grocery market; it elevates the role of quality over prices for set of products. Customers worldwide are very conscious about the prices and the quality of the products (Hoyer and Maclnnis, 2008).
Factors that are influencing the customer decision making process create the sense of the competition among the retail sector of the UK (Jenkins, 2009). On decision making pattern of the retail customer is also encourages the better focus on customers preferences and specifications so that customisations can enhance the retail stores of UK to a new level. Although there are many substitute are available in the market with low rate of the products but customers prefer the quality products with reasonable price top the alternatives (Kengthon, 2011). Lack of branding for the definite set of products fails in guarantying for the quality of the products that restrict the trust and confidence towards the products. Therefore retails stores of UK must be aware of the price and quality of the Grocery items to keep the interest of the customers (Kincaid, 2007).
Several theories have been proposed to explain what influences consumers purchasing behaviour. Although, the literature focuses on a wide variety of theories covering consumers’ attitude towards promotional activities, this review will mainly focus on six major themes which emerge repeatedly throughout the literature review (Dick and Basu, 2007). A society comprises of various forms, norms and thoughts that highlight the living standard of an individual’s on various forms. Purchase decision making of grocery items and its factors like price and promotions select at better level in comparison to others (Hallin and Marnburg, 2008). Purchase decision making pattern is crucial to the organizations so that acceptance level of the products among the consumer is enhanced and achieved effectively. As observed in the retail market, competition besides pricing strategy is also focusing on customer retention within the organizations (Jones and Hayes, 2008). However, factors influencing to buy the grocery items tend to ensure maximum satisfaction of consumers and helps in building long terms relations between consumers and organizations. As noted by Hesse-Biber, (2010), buying behavior brings reliability within consumers for particular company or set of products and thus helps the organizations in winning loyal customers.
As noticed by Dutu and Halmajan (2011), these themes are, the impact of price frames on consumer decision making. Although the literature presents these themes in a variety of contexts, this paper will therefore primarily focus on their application to consumer decision making. In particular, to have a greater understanding on what influences consumers’ behaviour towards their purchasing patterns, pricing and promotional activities will be the main focal point that will be evaluated in order to identify issues in the UK grocery market (Fennis and Pruyn, 2007).
Pricing is part of the marketing units; pricing is seen as the odd-one-out of the marketing mix Jobber, D. (2010). To understand the importance of price of grocery products is vital at this stage, the sales of many groceries products in the UK retail supermarket can be measure by how high or low the price of a product linked with the value of the product towards the consumer. Jobber, D. (2010) In other words, the product, promotion and place equally contribute to the sale of a product. According to Gabor, 1977; 1988 state that a given price is seen as high or low depends upon the frame used by the consumer whereas such frames of reference affect our judgement about whether a price is fair, good value, etc. Not only that consumers’ identifies price as the main factor, quality is another element that works hand in hand with price in order to for consumers to be anticipated in making a purchase if they feel it meets their perceived value. East, R.1997. pp.82
This section identifies the pricing methods used by retailers in other to price products accurately. Relevant elements such as the cost of production, manufacturing, competition from rival’s products and the value of the product towards the consumer are all elements that influence the pricing decision. Jobber, D.(2010) pp.423 Analysing how other competitors price their products will have an effect on the pricing of another product, in this manner price need to be fair at level, most importantly the marketing side of the product is another focal point that indicates the value that consumer have towards the product. Jobber, D.(2010) pp.423
As a result, products that meet consumers’ expectation at all level will receive positive response even if the price is at its highest level because consumers will pay a more than usual if the price of the product meets their needs and expectations. (Jobber, D. (2010) pp.423) Whereas, consumers will show negative response towards products that offers little benefit to them or does not keep up to its value and in return consumers will often ignore these types of products. (Jobber, D. (2010) pp.423)
Price is seen as a crucial element in the promotion of a product. As a form of sales promotion it offers rationale approach of short-term discounts and money-off grocery goods, easy credit terms and interest free and ‘buy now pay in six month’. Wright, R. (2006) pp.436-7 However, several scholars have stated that marketers should be very considerate when using price as a form of promotion due to it influences towards the purchaser to focus on price rather than the value of the product. Wright, R. (2006) pp.436-7 As a result, consumers may only be interested to make purchase only when there is a promotional offer and the retailer would be seen as price operation. This could lead to a negative response from consumers by them showing negative attitude and behaviour towards these types of activities. Also the image of the retailer will be affected and it could have an impact on sales. Wright, R. (2006) pp.436-7
There are two types of price ranges that influence consumers’ decision making process, such as lower and upper limits. Stoetzel (1954) cited in East, R. (1997) Lower price occur when a product is at the lowest, consumers’ perception towards the product changes, this may result in negative response from consumers’ towards that specific product and may choose to avoid the product. In contrast, products with beyond its upper-limit price is seen as very expensive by the consumer which may be influenced by various factors such as, the product does not offer than it is priced for, or the price is not seen as good value for money. In order to fully understand the effect that price ranges plays on the decision making process of a consumer, various scholars have analyse the influence of price ranges on consumer attitude. According to Rao and Monroe (1988) suggest that those with minimal product knowledge have to rely on cues that are acquired to the product and these cues include price. Alternatively, Rao and Sieban (1992) analyzed the study on prices that are adequate to people with different knowledge of the product field. They testify that those will little or less product intelligence will have lower limits, only because they are unaware of product qualities that are worth paying for. In the same way, they imply that those with little product knowledge would make more use of price as a quality indicator than those with medium knowledge, in particular, consumer with high product knowledge will take price into account in markets where there is a high price-quality relationship so that, in such market consumers will only take account of price as a form of making judgment (Friedman, 2008).
Reference prices
Monroe (1979) defines reference price as the figure that a purchaser would be expected to pay for a chosen product, as a result, reference price would fall within the acceptable price range but there seems to be an area of price insensitivity around the reference price Kalyanaram and Little, (1994). On the other hand, reference prices operate as a form of deciding actual prices. According to East, R (1997) stated that when a product is cheaper than expected, the consumer will show position response towards making the purchase, and vice visa. In general, there are some negative issues with reference price hypothesis because there are various reference prices that may occur at different levels. East, R (1997) Furthermore, Helson’s (1964) cited in East, R. (2008) adaptation level theory state that stimuli are judged with respect to internal norms. These internal norms embody with the combined effect of the past and present stimulation. East, R (2008) pp.194 mentioned that there are two aspects on the origin of reference prices. These views are as followed, consumers may require their retention of past prices they have previously paid or encountered, this is known as internal reference price s (IRP). Whereas, the second view state that reference price are formed during the shopping experience, based on price recognition, East, R (2008) pp.194. This type of reference price is known as external reference prices (ERP) East, R (2008) pp.194
Price sensitivity occur when sales is affected by price changes, whereas, both the consumers and the product are seen as price-sensitive. East, R (2008) pp.86 According to Seiders and Costley, (1994) changes in price awareness and sensitivity are also revealed in a detailed study of a city where supermarket provision doubled over a period of a month with accompanying price competition and heavy price-oriented advertising.
Price elasticity is relationship between the measurements of the quantity demanded of the grocery items will be affected by the changes in its prices (Gephart, 2009). However, brand loyalty makes the products less to substitute. However, one of the major examples of this theory is coke. Although coke has available substitute in the market but the brand loyalty holds the customer that makes the consumer buy the products (Hallin and Marnburg, 2008). In this case the grocery items present in the Tesco, Asda and at Sainsbury makes the customer loyal to theses stores where the increase in price of the of the grocery items in these stores does not create loss in the sales, however, smaller percentage of the fall in sales than the local grocery products in the grocery markets that lacks the brand loyalty (Hogg et al. 2007).
It is been found that, higher the brand price elasticity higher, less likely an increase in price will lead the consumer to buy the products repeatedly because consumer will have notion that it is harder to replace to substitute (Jones and Hayes, 2008). Brand loyalty decreases the demand elasticity of a product. Besides that, the more price sensitive customers of the retails stores are the more likely customer will buy the products if there is rise in the price (Jones and Sasser, 2008).
As noted by Jones and Hayes (2008), price framing is one of the major strategy that grocery retails stores of UK usually tries to make better way of pricing. Price framing helps the retail stores to price the products according to the suitability of the consumers, demand to the demand of the products, and avoiding the over complicate pricings. Retails stores should look to give the values rather than price in order to change the decision making of the consumers. As said by Jones and Sasser (2008), apart from that, pricing framing is done according the competitors. Price framing is very much necessary in the grocery items as the competitors and customers are aware of the products and its current price (Fornell, 2007).
Price reduction is managing discounts to the customers while purchasing anything in bulk. As the general retails stores tries to give discounts and reductions in price if any customer is buying goods in bulk which can create loyalty towards that brand or company (Friedman, 2008). Price reduction tends to increase the customer to buy the products from the stores as it is quality approved. Reducing the price of the expensive food items in purchase of the certain Kg can increase the sales of the products which are one of the lucrative styles of following the price reductions (Foxall, 2008).
As noted by Gee and Gee (2010), the importance of the consumer sales promotions activities has become stylish way and increasing number of retail stores of UK are using them for their survival in the current competitive market. The study will analyse the factors that influence the customers to buy the Grocery items from the retail stores of UK. The study will help to analyse the use of coupons and discounts and other non price promotions (Hoyer and Maclnnis, 2008).
The discounts help the customer to buy the products which is one of the major influences for the customer in terms of price range (Jenkins, 2009). Discounts help the retail stores to increase the sales of the products. Most of the consumer who is price sensitive tries to look for discounts in the products. Apart from that, price discounts influence the consumer to purchase the grocery item in large quality as because the discount will not be for everyday. As discussed by Kincaid (2007), next will be display of the items of the grocery items play an important role in consumer buying behaviour. If the grocery items are kept in a stylish manner and with designing shelf it will attract the customer to buy the products. Currently display is one of the attracting and influencing factor of purchasing any products. In other words, self sequence must be design in a grid walls, gondola displays so that it attracts the customers (Dick and Basu, 2007). It is psychological effect in the mind of the consumer while purchasing the products. For example Tesco uses slat walls in their grocery section of the stores which makes the fruits , vegetables and meat items look attractive and lucrative, this compel the consumer to at least go near the grocery products (Dutu and Halmajan, 2011). Display comes under psychological marketing, store fixtures and fittings attract the customers to buy the products.
Ad features is most proficient style of campaigning the products by the retail stores. Advertising is features of the product will help to give information and guidance for the buyers to purchase goods (Fennis and Pruyn, 2007). For example in case of grocery items, green vegetables should have nutritional features which will attract the housewives to buy those products which makes them to maintain healthy life styles. Nutritious feature will have huge impact in the buying process of consumer while buying the products (Hallin and Marnburg, 2008). As consumer are very much conscious about health and items that they are purchasing.
As said by Hogg et al. (2007),coupons influence the consumer to purchase the products both by discounting the products and try new and innovative items which is still not been launched by any other company. However, coupons influence consumer to try new items or to purchase additional items (Jones and Hayes, 2008). For example Sainsbury gives 10% off coupons to their customer if they purchase fruits of more than 5 kg which makes of the buyers to purchase the fruits more than 5 kg to avail these items.
Ajzen (1991) defines attitude behaviour as “the degree to which a person has a favourable or unfavourable evaluation as appraisal of the behaviour in question”. According to Ajzen (1991), attitudes towards the behaviour of an individual relates to the favourable or unfavourable evaluation or appraisal of the target behaviour. The more favourable the attitude towards the behaviour, the individual will have a stronger intention to perform the behaviour. According to Walsh and Mitchell (2010), the relationship of consumer attitude towards private label brands and their intention to purchase the private label brands can be explained by using the theory of Planned Behaviour. For example, purchase behaviour may be anticipated by each of two: stated intention or from a person’s estimate of their purchase probability. East, R. (1997) pp.129
According to Infosino (1986) cited in East, R. (1997) state that purchase tendency could foresight new product sales, although Taubler (1975) commence that only the first purchase of a new product was presumed and any repeat purchase hypothetically determined by reference to the earliest purchase experience. Though intention contradistinguish among the likely and unlikely to purchase, it shows minimal value in predicting the total purchase potential due to the influence of economical factors. Pickering, (1984)
In particular, Pickering and Isherwood (1974) made an experiment focusing on consumers’ durable purchase. Pickering an Isherwood (1974) used a scale to estimate the intention and results indicates that 61 per cent of the recipient who comment they were 100 percent likely to purchase actually fulfil that promise, whereas, the remaining 5 per cent of respondents who made a purchase did not have any intention to purchase the durable in the next 12 months East, R. (1997). These findings indicate that consumers’ intention depends on the need of the consumer at that present moment, whereas the intention of a consumer anticipating to make a purchase will influence the probability to make a purchase or not. According to Ajzen and Madden (1986) suggest that there is usually an overlap between past experience and perceived behavioural control (PC) due to past experience reveals the situational opportunities and the personal abilities upon which PC is based.
The repesentation of perceived behavioural control in certain behaviour has also been indentified by several studies. One example, Bandura (1977) used the phrase ”self-efficacy” which can be associated with perceived behavioural control. Bandura (1977) mentioned that ’perceived self-efficacy’ is apprehensive with judgements of how successful an individual can fulfil a way of action needed to deal with prospective situation. Although Fishbein and Ajzen (1981) acknowledge the studies of exisiting evidence for action give little evidence of where suitable to apply emphasis in an influence attempt. On the other hand, it is absurd to reveal beforehand the approximate dimensions to which a given item of information will influence an individuals attitude or subjective norm. East, R.(1997)
To have a greater undertstand of how planned behaviour theory works, this section will critically ananlyse each stage of the theory of Planned Behaviour, and also demonstate by giving relevant examples influencing on each stage of the behavioural attitude.
This phase indicates the consumer is evalued by their behvaiour of intereste which can be fvaourable or non favourbale (Fennis and Pruyn, 2007). TPB has been sucessfully used to predict the consumer behvaiours and intentions while purhasing gocery items in UK.
It depicts the perception of the indvidulas about the their unique behaviours while purchasing goods and their influence in their family , freinds and others while purchasing products and services (Walsh and Mitchell, 2010). Subjective norms creates the influence of the individuals buying behvaiour and its affects and influence on its neighbour and others.
This theory defibnes that persons perceptions of ease and diffculty of performing the purcasing of goods and services (Hogg et al. 2007). The thoery helps in behvaiour control actions and situation of an individual while buying decision mkaing process. This theory helps the understand the intentions and behvaiour of the consumer while making purchase decision making.
A reasoned action individual can be described as having limited knowledge of the circumstances of action and takes interest of only those issues that can be brought easily to mind. East, R.(1997) pp.134 Likewise, actions are made pureply in acknowledgement to the normative predominance of other people and groups. In the same way, consumers have minimal power to recognise their alternatives therefore it is their intentions rather than thier action that are predicted in the theory. East, R.(1997) pp.134 Hence action will influence intention, but circumstances may reconcile to block or change intention so that later actions may not conform to earliest plans. East, R.(1997) pp.134 Reason for action may be purely down to attitude and behaviour, for example, when alternatives are well differentiated and the selection is free, consumers are expected to make prediction and express their choice of selection by indicating to features of the alternatives that they like or dislike. As a result, consumers can make an informed choice between brands across the grocery sector. They can decide between products that are on promotion and are not on promotion. Consumers can also make basic appraisal such as whether to purchase products that are on promotion or to purchase products that they are familier with.
In this theory particular sense of behvaiour of consumer is being considered towards belief to certain outcomes (Fennis and Pruyn, 2007). . If the outcomes of the behvaiour is being favourable it helps the invdulas to purcashe the gocery items which according to his belief is perfect and suitable. Subjective norms effcts the indvdula influence around the surrounds while making buying decsions. It is type of pressure from the neighbour, locality and family which intend the individual to buy the products (Jones and Hayes, 2008). Lastly, one attitude towards a behvaiour can lead to an intention to act. This attitude helps the consumer to make certin decsion while prurcashing their products.
The aim is to give a brief account of the methodological process as we anticipate it at this stage. This process will be revisited as this research progresses to accommodate new concepts, models and theories (Hogg et al. 2007). Application of the research methodology helps in understanding the procedure adopted in analysing the particular research of consumer decision making and the role of the factors. Research methodology also leads to common errors that may create limits within the research process (Burns et al. 2008).
In a research methodology, application of research philosophy helps in determining the appropriate manner for gaining details of the topic. As per discussed by Cooper and Schindler (2010), the broad common forms of the epistemology that is a part of the philosophy are positivism, interpretivsim and realism.
Positivism as subject of philosophy helps in application of logic that can help in analyzing the hidden facts and information in scientific manner (Corbetta, 2009). Positivism tries to reject metaphysics so that detail observation and knowledge collection is enabled. Realism describes application of human belief and helps in studying the interactions of human beliefs along with realities (Hesse-Biber, 2010).
As noted by Crouch and Pearce (2012), positivism as applied in the current context helps in better analysis of the hidden facts and information related to consumer buying process and role of influencing factors over it. However, nature of the study is time limited so interpretative and realism study is discarded as being the choice of research philosophy (Hesse-Biber, 2010). Further, selection of positivism philosophy limits the researcher roles in manipulating or evaluating the data that leads to minimization of data errors as well.
The research will be based on descriptive research in order to describe consumers’ beliefs, attitudes, preferences and behaviour towards grocery products (Kothari, 2008). A descriptive research design is accurate, reliable but time consuming, with emphasis placed on quantitative research. This type of research will be used in order to find out the purchase decision pattern for grocery retail in the UK (Lancaster, 2012).
This research will be purely focus on quantitative approach in an attempt to a maximum number of quantifiable factors to measure performance (Leedy and Ormrod, 2012). To allow subsequent comparison with previous findings, the scales of measurements will be the same as those to be found in the literature review.
Qualitative data are very helpful in recording form of data that can add better description of the research topic (Bryman, 2006). Qualitative data helps in adding theoretical concepts in the practical field that also leads to better understanding of the topic unlike quantitative procedure. Quantitative data on the other hand applies the statistical data that are very much helpful in recoding data of large samples sizes. As noted by Cameron (2009), in the present study, mixed approach for both the quantitative and qualitative techniques is applied. Customers will be considered for the quantitative research techniques while managers will be considered for the qualitative one.
Primary and secondary are two data sources that are providing materials helpful, in gaining details of any particular research topic (Ellis and Levy, 2009). The first hand data collection however, needs clarifications of reliability and validity. In case of secondary sources, data are used as widening the concept of research topic that also enables better study as it involves more data and description (Freshwater, 2007).
As discussed by Ellis and Levy (2009), in present study, primary sources of data included interactions sessions with the customers and managers of retails sector which includes Tesco, Sainsbury and Asda who has helped in gaining information as per the research objectives (Harrison et al. 2011). Apart from that literature sources of the dissertation can be considered output of the information gained via secondary sources.
So far I have allocated several major sources which will be used in order to successfully compile my research together. (Keynote, TNS world panel, Kantar world panel and Nielsen) were found to contain significant information including size, issues in the market and, consumers purchasing behaviour. Two major articles in 2 referred journals (Evolution-insight and International Journal of Retail & Distribution Management) have published relevant information related to brand switching from consumers, promotional activities from grocery chains.
In order to gain good understanding of consumers’ purchasing pattern, data from secondary sources will be very helpful. A tool of the secondary sources includes both online and offline sources like journals, books, websites etc (Kothari, 2008).
Should include qualitative approach using focus groups of up to 5 respondents Also should include quantitative approach by conducting a questionnaire focusing on 15-20 questions and interviewing up to 100 recipients Also the quantitative approach should focus on Descriptive research of consumers’ awareness, beliefs attitudes, preferences and behaviour. Whereas should also include experimental research focus on the effect of sales promotion in the UK grocery market.
Sample considered for studying factors that influence in consumer decision making process are smaller in number that can suit the criteria of the research topic. As noted by Lancaster, (2012),the sample for customers was simple random probability where non criteria for selection were considered. On the other hand, manager of Asda, Tesco and Sainsbury were considered for non-probability techniques. With the help of online questionnaire, customers were asked for participation where survey was performed on likert scale rating 1 to 5. Managers were considered for interview as per flexible schedule and timings (Bryman, 2006).
As said by Cameron (2009), respondents involved in the process were not involved in any form of pressure or influence. However, customer and mangers of Tesco, Sainsbury and Asda are been biased towards their organisations. This has affected in reliability of the in the present study (Burns et al. 2008). The researcher ahs also faced time limitations that led to study of the work within short period of time. Many deep details of the study was not analysed due to cross-sectional study that also erupted a cause of the research limitations. Lastly, limited budget has created few problems in the study of the research topic. Lack of finance limited the application of SPSS software that could have enhanced the quality analysis with better statistical tool applications (Crouch and Pearce, 2012).
In this chapter, the researcher tried to show the data analysis of factors that influences the consumer decision making pattern of Grocery items in UK and its customers (Duteurtre, B. and Benderson, B. 2008). With the help of both qualitative and quantitative data analysis helps a part of research process to increase the quality and the information and make better analysis and conclusion for a particular topic. Data analysis helps researcher in implementing the theoretical knowledge in the applications (Easterby et al. 2008). Data analysis involves complexities and limitations as well as such as data analysis in research work. Role branding in customers decision making process will be evaluated in this chapter with the help of feedback given by the respondents in relation to the chosen retail organizations. Based on the data collected from this study the researcher analyses the findings to add validity in the process of data collections (Hauser et al. 2006). Respondents considered for process of data collection is customer and mangers of chosen organizations so that more concerned, specific and detail information is extracted with particular research work.
In this present section, customers of Asda, Tesco and Sainsbury will be considered for quantitative analysis so that researcher can understand the influence of changing purchase decision making patter of UK grocery customers. Number of respondents involved in the quantitative section are 100 as the others were not properly filled so rest of them will discarded form being the sample of the research study.
Q1) How frequently do you visits retail grocery stores?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Quite Regularly |
32 |
100 |
32% |
|
Regularly |
22 |
100 |
22% |
|
Often |
20 |
100 |
20% |
|
Some times |
19 |
100 |
19% |
|
Occasionally |
7 |
100 |
7% |
Table 1: Visit to the retail grocery stores
About 32% of the consumer’s regular visits to the stores and 20% of the consumers visit often. 19% of the respondents visit to the stores some times. However, 7% of the respondents visit occasionally or rarely.
Now form the above it has been found that, most of the consumers are very frequents visitor of the stores and supermarkets. This indicates respondent usually look to buy their products from all of these super market. Apart from that at times visitors are looking to visit the stores in order to change their mood of shopping.
Q2) which grocery items do you mostly purchase from the retail stores?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Vegetables |
26 |
100 |
26% |
|
Fruits |
18 |
100 |
18% |
|
Meat |
15 |
100 |
15% |
|
Food items |
22 |
100 |
22% |
|
Spices |
19 |
100 |
19% |
Table 2: Grocery items mostly purchased
25% of the respondent purchase vegetables only. 18% of respondents purchase fruits. 22% and 19% respondents purchase grocery items like food items and spices mostly. Only 15% of the respondents visit the stores to buy meat items.
It has been found that, most of the customers visit the stores for buying vegetables. The local market price has been very much different from the main market. Apart from that, food grains are the next items which is quite often purchase from the stores because of the offers and discounts than the sales price which other stores does not provides. Most of the consumer like to visits the stores to purchase their food grains items like wheat and flour for the super market as the price is quite different from the stores.
Q3) what do you expect most while you buy products from the supermarkets?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Quality |
23 |
100 |
23% |
|
Price |
44 |
100 |
44% |
|
Promotions |
12 |
100 |
12% |
|
Discount |
19 |
100 |
19% |
|
Display |
2 |
100 |
2% |
Table 3: Expectation while purchasing grocery items from the supermarket
About 44% of the respondents believe that price is most important factor while purchasing the grocery from the stores. Price is been considered the most in comparison of the other options. Next, 23% of the respondents who believe quality are the most important part while they purchase groceries. 12% of respondents believe in lucrative promotion rather than quality and quantity. Only 2% of the respondents attracted through the display which is very much smaller in quality.
Price is considered top priority while purchasing grocery items from the markets. This has not been surprise as the EU is facing inflation which is why most of the participant considered price as most important part. However, after price quality is been considered most important, this is because for some people quality matter rather than price. They are looking to buy the groceries at even high price if the food id organic. Next would be discounts, for most of the consumer, discounts on then products is more important rather than the price or quality.
Q4) how far are you satisfied with the grocery items as provided by retail sectors of the UK?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly Agree |
40 |
100 |
40% |
|
Agree |
20 |
100 |
20% |
|
Neutral |
25 |
100 |
25% |
|
Disagree |
10 |
100 |
10% |
|
Strongly disagree |
5 |
100 |
5% |
Table 4: Satisfaction of grocery items
About 40% of the respondents strongly agree that they are satisfied by the grocery items in retail sector very much. About 25% of the participants are neutral to the answer. Only 5% of the respondents are not satisfied with the grocery items.
Since, grocery item are sold on the basis of the fresh and its nutrients value. However most of the consumer has believed that the all of these stores are very much satisfies their needs. Only few of the consumer disagree that grocery items which sold by these retail are stores are not satisfactory because of rotten and non organic which has created many diseases in the recent years. Grocery items are one of the frequent purchasing items in the stores.
Q5) how far do you agree that branding of the product is more important than price while choosing a product?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly Agree |
12 |
100 |
12% |
|
Agree |
25 |
100 |
25% |
|
Neutral |
15 |
100 |
15% |
|
Disagree |
28 |
100 |
28% |
|
Strongly disagree |
20 |
100 |
20% |
Table 5: Brand of the product is more important than price
From the above it can be seen that, only 25% of the respondents believes that branded products is most important rather than price. Around 28% of respondents do not believe on this theory. 20% of the general participants don’t believe that branding of products is not that important while buying of the grocery items for the stores.
Since the branding is more important in grocery items is vague as per the repose given by the maximum respondents. However, more than 35% of the respondents believes that branding is more important while purchasing the grocery products,. This indicates that the purchased fruits, vegetables and food items are fresh and quality approval given by the stores in UK. Branding depicts the products are very much quality based and ahs certain nutritional value in comparison of branding products.
Q6) how far you agree that quality can increase the reliability for the grocery items?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly Agree |
44 |
100 |
44% |
|
Agree |
28 |
100 |
28% |
|
Neutral |
5 |
100 |
5% |
|
Disagree |
15 |
100 |
15% |
|
Strongly disagree |
8 |
100 |
8% |
Table 6: Quality can increase the reliability of the Grocery items
Around 44% of the shopper believes that quality can enhance the reliability of the p[products. 28% only agrees with this questions. About 5% of the participants are neutral to the questions. About 15% of the respondent does not believe that the quality can enhance the reliability of the products.
Quality can enhance the reliability of the products is very much true. With most of the respondents believes on this thought and describes that with the consistency in the quality can increase the reliability of the products. Products reliability comes with quality and value of the products intact within it. As the Tesco strictly follows that the products and items which must be quality approved which enhance the products reliability.
Q7) From the provided options, which of the following feature is more helpful in creating positive shopping experience for a supermarket?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Lighting |
7 |
100 |
7% |
|
Hot and cold factors |
28 |
100 |
28% |
|
Availability of entire products |
38 |
100 |
38% |
|
Display of items |
9 |
100 |
9% |
|
Easy payment options |
16 |
100 |
16% |
Table7: factors that influence mostly while purchasing
About 38% of the respondents believe that factors are influence them most while purchasing of goods and services are availability of diversified products. Around 28% of the respondents believe prefers ambience of the stores. 16% of the respondents enjoy easy payment option facilities. And the rest are lighting which is 7% and the 9% of the display items get influenced while purchasing the grocery items.
It has been found that most of the respondents believes in the availability of products within the store is their first concern rather than other areas. Tesco, Sainsbury and Asda are known for diversified products and diversify grocery items which make them different from other small stores. With the store ambience like hot and cold system within the store is one of ten major attractions within UK respondents.
Q8) How far you agree that promotions and advertisements are successful in changing your decision-making process?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly Agree |
40 |
100 |
40% |
|
Agree |
25 |
100 |
25% |
|
Neutral |
10 |
100 |
10% |
|
Disagree |
15 |
100 |
15% |
|
Strongly disagree |
10 |
100 |
10% |
Table 8: Buying decision changes based on the promotions and advertisement
About 40% of the respondents believe that the promotions and advertisement majorly attract them to buy the grocery items. 15% of the respondents are neutral about the promotions. 15% of the populations strongly disagrees that advertisement and promotional effects anything in their buying behavior
Advertisement like hoardings, brochure and other factors are some of the major way to advertisement the products. Apart from that with the help of drift in price and complex pricing is one of the major methods to promote their products. As per the findings about 25% of the customer are does not attract with any kind of offers or any pricing ideas. They are usually regular customers.
Q9) How far do you agree that location is also important factor while choosing a shopping destination for grocery items?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly Agree |
15 |
100 |
15% |
|
Agree |
30 |
100 |
30% |
|
Neutral |
25 |
100 |
25% |
|
Disagree |
15 |
100 |
15% |
|
Strongly disagree |
5 |
100 |
5% |
Table 9: Location is been considered while shopping
About 30% of the respondents agree that location of the stores is very much affects their purchasing stores. About 25% of the respondents are neutral to the idea of visiting to the stores. Rest 15% of the participants doesn’t agree that location is important while purchasing grocery items. About 5% strongly disagrees with the idea of location matters.
Since the location is one of the major criteria for shopper to shop as most of the regular customer wants to shop at their localities or areas rather than moving far for shopping. This indicates that location is third marketing mix element which is changes the decision making Pattern of purchasing grocery items. As the item is very much general and needed at daily basis changes the going far for purchase of grocery is will be costly for the consumers.
Q10) how far do you agree discounts, display and coupons inspire you to be the loyal customer of the particular company?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly agree |
30 |
100 |
30% |
|
Agree |
24 |
100 |
24% |
|
Neutral |
15 |
100 |
15% |
|
Disagree |
11 |
100 |
11% |
|
Strongly disagree |
20 |
100 |
20% |
Table 10: Discounts and coupons attract to be loyal customers
30% of respondents believe that coupons and offers are very much affects while buying the grocery items. About 24% only agrees. 15% of the respondents are neutral to the thoughts of that the offers and display makes them loyal customers. Around 20% of the participants are not interested in the any kind of discounts and offers as loyalty they don’t want to drift from their chosen loyal company.
Now form the above , it is been found that most of the consumers are looking for frequent discounts while buying the customers. As the consumer behavior changes while as discussed in subjective norms or perceived behavioral changes the concept of buying of groceries form the stores. Also it has been detected that the customer are continuously looking to avail the offers and coupon which attract them to purchase grocery items. Frequent purchases are very much happy with availing of discount in grocery items that helps the company to avail the discounts.
Q11) How far you agree that you are loyal to the particular store while buying the grocery items?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly agree |
40 |
100 |
40% |
|
Agree |
32 |
100 |
32% |
|
Neutral |
11 |
100 |
11% |
|
Disagree |
7 |
100 |
7% |
|
Strongly disagree |
10 |
100 |
10% |
Table 11: loyalty towards the particular grocery stores
Around 40% of the respondents are very much attached with the company where they are purchasing grocery or any items. Around 17% of respondents don’t agree in any kind of the loyalty towards any company or stores. Only 11% of the respondents were neutral to these questions.
Most of the customers are very attach with company they purchase goods and services. As the grocery items is most common but consumer prefer to buy this items from their known stores. Most of the consumer prefers buying form the known stories as the consumer are loyal to certain brand. However, around 17% of respondents generally shifted their loyalty according to price, offers and discounts etc. as the decision making is related to price and affordability.
Q12) what are the information sources that you consider while making final choice for products/services?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Near and dear ones |
15 |
100 |
15% |
|
Websites |
18 |
100 |
18% |
|
Front desk Employee |
20 |
100 |
20% |
|
Advertisement and promotions |
35 |
100 |
35% |
|
Others |
12 |
100 |
12% |
Table 12: Most trusted information sources
About 35% of the respondents agrees that promotional offers and advertisement are major information sources that is most trusted while purchasing of goods and services. Around 20% are influenced by front desk employee. And the rest 12% and 15% are form the websites and near and dear ones.
This depicts that consumers Rae very much influenced by the promotional offers like hoardings, brochure and text messages sent to the customers by company to enhance the sales. Near and dear ones are very much influenced by behavior of action theory perceived theory .as the near dean one are very much appreciated by the company. Next, would be websites as the websites one of the most influential places to look the information regarding the company information and its offers.
Q13) how far do you agree purchasing high priced grocery items enhances the social status?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly agree |
32 |
100 |
32% |
|
Agree |
20 |
100 |
20% |
|
Neutral |
10 |
100 |
10% |
|
Disagree |
28 |
100 |
28% |
|
Strongly disagree |
10 |
100 |
10% |
Table 13: High priced grocery products creates symbol status
it has been observed that, for more than 32% of respondents believes that high priced grocery items shows the symbol status. Though the response was mix but about 28% of the respondents do not believe that it purchasing high priced grocery will increase their social status. 10%^ of the respondents were neutral.
As high price goods generally shows the status symbol in the society but when it comes to grocery item high priced items does shows the status symbol but in limited manner. As the grocery items like food grains has brand like Pillsbury and or high price bread can create symbol but when it comes to vegetables it doesn’t show any kind of status symbol. Apart from that, high price fruits and organic fruits and vegetables show the healthy life style which is does not show any kind of the status symbol.
Q14) how far do you agree that Nutritional factors influences your buying behavior?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Strongly agree |
15 |
100 |
15% |
|
Agree |
10 |
100 |
10% |
|
Neutral |
22 |
100 |
22% |
|
Disagree |
28 |
100 |
28% |
|
Strongly disagree |
25 |
100 |
25% |
Table 14: Nutritional factors
About 28% disagree with the fact their decision changes according to the changes in the health factors while purchasing grocery items. However, 15% of the respondents do believe in healthy living habits. 22% are neutral they are sometime or not check the nutritional value of the grocery items while purchasing grocer items.
It has been found that, most of the consumers do not want to engage any kind of nutritional facts while purchasing then grocery items as it is purchased on a daily or weekly basis. However, in recent times the populations of the healthy living family or individual are increasing. Some of the major health conscious people purchase grocery items by identifying the fats, cholesterol and other kinds of nutritional facts. Apart from the nutritional facts like carbohydrates, proteins and minerals are the main sources of the changing their decision making.
Q15) How far do you believe that employees’ behavior and suggestions helps in making right product selection?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
Quite often |
33 |
100 |
33% |
|
Often |
26 |
100 |
26% |
|
Sometimes |
15 |
100 |
15% |
|
At times |
17 |
100 |
17% |
|
Occasionally |
9 |
100 |
9% |
Table 15: Employees behavior helps in right production selection
Around 33% of the participants are very much acquainted with employee’s behavior while purchasing grocery items. 15% of the employees some time take help from the front desk employee while shopping. 17% at times takes help from the employees while purchasing the grocery from the stores.
It has been found that employee assistance helps the consumer to purchase the goods and services in the right ways. Employee assists the consumer about the offers and current trends in the market and introduce new product which could influence the change in their buying behavior while purchasing the goods.
16) What are the factors forces you to opt for change your retail firms to another retail firms?
|
Options |
No. of respondents |
Total respondents |
Response % |
|
High Price |
28 |
100 |
28% |
|
Lack of Offers and discounts |
20 |
100 |
20% |
|
Far locations |
22 |
100 |
22% |
|
No diversified products |
18 |
100 |
18% |
|
No assistance from Employee |
12 |
100 |
12% |
Table 16: factors that opts for changing the loyalty of consumers
About 28% of the respondents agree that high priced grocery items can change their loyalty towards other stores. Around 20% believes in most offers and discounts are very much helpful while changing their loyalty. For around 22% location matter and changes their loyalty because of nearness of the shopping area. Around 18% are very much concern about the diversified grocery items which changes their decision making.
Price and location are one of the most important factors that make consumer charge their decision to buy the products from any retail stores. As the price and locations are similar because the price is affects the consumer pockets and budget where as far distance can increase their costing of grocery.
Managers of Tesco and Sainsbury proposed that branding helps in increasing the familiarity among the customers and increases the market dominance as well. Branding within organisation promotes recognition among the consumers and thus becomes a reliable tool that enables inclination among consumers. Due to the effect of reliability, consumers’ decision-making process makes a positive effect that gives a market maximisation. Consumers being satisfied by the quality recognise the brand of the product and prefer the brand for the next purchase. Thus, branding ensures gaining loyal customers and promotes business growth for the organisation.
As per consumers’ behaviour theory, consumers try to make choices among goods based on various parameters that also define the mind process of the consumers while purchasing a product. Managers of Asda, observed that consumers while making selection of groceries opt for price rather than quality adopted by the organisation. Being satisfied with both the criteria, quality is the next level that highlights brand of groceries in Asda. The organisation by consumers is primarily judged by the quality instead of the product. Brand helps in adding identity to the
Manager tried to highlight the pinning list of factors helpful in bring the change in the behavior of the consumer while purchasing the groceries. One of the major factors would be nutritional factors, employee assistances and ambience of the stores apart from the price and quality. The employees involved in the front line service try to understand the demand and preference of the customers in the best possible manner so that the communication can be at the most clear way. Suiting the customisation of the consumers, products are offered that helps in achieving a higher level of satisfaction. Tesco tries to cater their customers in the best possible way, and as per their preferences and demands, products are offered. Customers being satisfied with the service deliver are turning into loyal consumers and thus are enhancing the brand recognition of Primark.
One of the basic challenges is to understand the consumer buying pattern. This is challenging because several consumers has several kind of the preferences like some are looking for discounts and offers, some are looking for cheap products and some are branded products which is very tough to understand. Apart from that some of the consumers are extremely health conscious for them organic and non rotten food should be present irrespective price. These are the challenges that Sainsbury is facing while trying to cater their products to consumer and trying to bring products in a best possible way according to their demand and preferences which satisfy them.
Manager of Tesco has a said that, innovating pricing strategies with brand value will hold the key of the retails stores to attract the customer to be loyal. As the inflation is increasing, controlling prices will be a major future challenge that holds to key to retail success. Asda manager has described that, innovating the price s and quality of goods intact will help to gain the loyal customers. Lastly, manager of Sainsbury has recommended that price and innovative products will keep the consumer same kind of quality will increase the customer base and make the existing customer loyal.
Conclusion and recommendations
Conclusion
The entire study was focussed on the concept of consumers’ decision-making process and the role branding plays in shaping consumers’ behaviour while making choice of a product. As cited from the study of the research paper, the consumers of Primark are observed by the researcher so that the value of branding can be evaluated with a specific example of an organisation. As seen in the secondary and primary sources.
As observed in part A, table 1-5 majority of respondents are agree that branding, frequent visiting, price and offers are some of the major attractions of the grocery items. Attitude to the behaviour is changing habits of consume taste preference according to changing in price and offers shows that attitude of the consumer changes. The role as defined by the managers states that branding, price , offers and discounts helps in adding recognition to the organisation where the chances of visibility ad awareness is levelled up and customers on the other hand prefer the brand to competitors.
Attitudes like perceived behavioral are coming from the ones behavior and their influence while purchasing the goods. As according to table 6-10 are depicts that consumer are very much care about the locations and offers and discounts while purchasing the goods. Ability to attract the customers to avail the discounts is major challenge for any particular organizations. Managers commented that brand recognition within new consumers is often due to loyal customers that are supported by the concept of word-of-mouth communication.
Factors defining the role of consumer behaviour includes customer relationship management, service quality, brand value and price of the products as defined in part A table 10-15. Survey depicted preference for is attributes of brand value that also describes the ability of attracting consumers for a particular organisation. These are some of the major forces the customers to opt for change your retail firms to another retail firms. Display and easy payment options are also very much attracts the customers to be loyal customers.
Depending on the analysis and result of the study, the researcher has listed recommendations that can help in bridging the gap between the issues and the proposed solutions.
Feedback system which taken by the company must be taken seriously this will at least help the company to understand the need of the consumers and try to make change accordingly. With the help of problem recognition company will be able to identify the areas of loopholes which will help them to solve the problems.
Social media platform is the place where the company can extensively do advertisement and pout their discounts offers which attract the customer to buy the goods. Apart from by sending text messages the company should look to research out to the larger audience in terms of reach. Company would like to promote more organic food goods which will help them to create loyal customers.
Lastly post purchase behaviour from the company and employee can make huge differences for the companies and for the consumers to maintain relationship for long term. After sales services will give the retail grocery companies and edge over other that make the consumer o think that they are important member of the company. Post purchase service most golf the times makes the customer loyalty towards certain brands as the customer feel’s if any defects in the grocery items will become then they can exchange their products with another.
The research was limited to the UK only while the company, Primark operates in more other countries that could have been considered for the research study of consumers’ decision-making process. The time was limited for a specific time that does not allow participation of larger sample sizes for better quality of analysis. Financial budget was also a restriction in the study that limited the quality of the study.
Scope of the study due to restrictions could not be exploited to its proper potential level. Further, the topic could have developed with study of two organisations such as Zara or H&M, examples of clothing retail firms or other retail items so that level of consumer decision making strategy could have been observed at a better rate. Further, comparative study also enhances chances of observing the various steps applied in both the organisations.
Reference list
Books
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De Mooij, M. K. (2010) Consumer Behavior and Culture: Consequences for Global Marketing and Advertising. (Page 113), 4th ed. Germany: Grin Verlag.
Duteurtre, B. and Benderson, B. (2008) Customer Behaviour. 3rd ed. London: Harvester Wheatsheaf.
Foxall, G., (2008) Consumer Choice. 4th ed. London, Thousand Oaks CA: Sage Publication.
Gee, J. and Gee, V. (2010). Customer Behaviour for strategies. 3rd ed. New York: Harper Collins.
Hoyer, W. D. and Maclnnis, D. J. (2008) Consumer behaviour. 6th ed. Boston: Houghton Mifflin.
Jenkins, J. (2009) Marketing and customer behaviour. 7th ed. London: Routledge.
Kengthon, W. (2011) Consumer Buying Behaviour. 7th ed. New York: Kaplan Publishing.
Kincaid, J, W. (2007) Customer Relationship Management: getting it right! 8th ed. Digital Press: Bradford.
Burns, R. B., Burns, R. and Burns, R. P. (2008) Business Research Methods and Statistics Using SPSS, 3rd. ed. London: Sage Publications.
Cooper, D. and Schindler, P. S. (2010) Business Research Methods, 11th ed. London: McGra-Hill.
Corbetta, P. (2009) Social Research: Theory, Methods and Techniques, 4th ed. London: Sage Publications
Crouch, C. and Pearce, J. (2012) Doing Research in Design – Page 68, 2nd ed. London: Bloomsbury Publishing Plc.
Hesse-Biber, S. N (2010) Mixed Methods Research: Merging Theory With Practice, 3ed ed. New York: Guilford Publications
Kothari, C. (2008) Research methodology: methods and techniques. 5th ed. New York: Leadership Press.
Lancaster, G. (2012) Research Methods in Management, 4th ed. Oxford: Elsevier.
Leedy, P. D. and Ormrod, J. (2012) Practical Research: Planning and Design, 2nd ed. New Delhi: Person Education
Solomon, M & Bamossy, G. (2010). Individual decision-making. In: Solomon, M &. Consumer Behaviour: A European Prespective . 4th ed. England: Pearson Education, 314.
Wright, R. (2006). “Consumer Behaviour”. London: Thomson Leaning
Strachan, J. (2006). Future of Retail property:Changing Demographics and Consumer Patterns. Surrey: BCSC Educational Trust. 0.
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Journals
Dick, A. S. and Basu, K. (2007) Customer loyalty: Toward an integrated conceptual framework. Journal of Academy of Marketing Science, 22, 99–113.
Dimitriadis, S. and Stevens, E. (2008) Integrated customer relationship management for service activities. An internal /external gap model. Managing Service Quality, 18(5), 496-511
Dutu, C. and Halmajan, H. (2011), The Effect of Organizational Readiness on CRM and Business Performance. International Journal of Computers, 1(2), 106-114.
Easterby-Smith, M., Thorpe, R. and Lowe, A. (2008) Management research: An introduction. London: SAGE Publications Ltd.
Fennis, B. M. and Pruyn, T. H. (2007) You are what you wear: Brand personality influences on consumer impression formation. Journal of Business Research, 60 634-639.
Fornell, C. (2007) A national customer satisfaction barometer: The Swedish experience. Journal of Marketing, 56, 6–21.
Friedman, M. (2008) Consumer boycotts in the United States, 1970-1980: Contemporary events in historical perspective, Journal of Consumer Affairs, 19, 96-117
Gephart, R. (2009) Qualitative research and the Academy of Management Journal. Academy of Management Journal, 47 (4), 454-462.
Hallin, C.A. and Marnburg, E. (2008) Knowledge management in the hospitality industry: a review of empirical research. Tourism Management, 29(2), 366-81
Han, Y. K., Morgan, G. A. Kotsiopulos, A., and Kang, P. J. (2007) “Impulse buying behaviour of apparel purchases”, Clothing and Textile Research Journal, 9(3), pp. 15-21.
Hauser, J. R., Simester, D. I. and Wernerfelt, B. (2006) Customer satisfaction incentives. Marketing Science, 13, 327–350
Hogg, M. K., Bruce, M. and Hill, A. J. (2007) Fashion brand preferences among young consumers. International Journal of Retail & Distribution Management, 26 (8), 293-300.
Jones, R. M. and Hayes, S. G. (2008) The UK clothing industry: Extinction or evolution? Journal of Fashion Marketing and Management, 8 (3), 262-278.
Jones, T. O. and Sasser, W. E. (2008) Why satisfied customer defects. Harvard Business Review, 71, 88–99.
Bryman, A. (2006) “Integrating quantitative and qualitative research: how is it done?” Qualitative Research, 6(1), pp. 97-113.
Cameron, R. (2009) ‘A sequential mixed model research design: design, analytical and display issues’, International Journal of Multiple Research Approaches, 3(2), 140-152,
Ellis, T. and Levy, Y. (2009) ‘Towards a guide for novice researchers on research methodology: Review and proposed methods’, Issues in Informing Science and Information Technology, 6, 323-337.
Freshwater, D. (2007) “Reading mixed methods research: contexts for criticism”, Journal of Mixed Methods Research, 1(2), pp. 134-46.
Harrison, R. L. and Reilly, T. M. (2011) “Mixed methods designs in marketing research”, Qualitative Market Research: an International Journal, 14(1), pp. 7 – 26
Huck, S and Wallace, B. (2010). “The impact of price frames on consumer decision making”. Office of Fair Trade. OFT1226, pp. 1-165.
Websites
Acrwebsite.org, (2014). An Investigation of Consumer Response to Sales Promotions in Developing Markets:&Nbsp; a Three-Country Analysis by Lenard C. Huff and Dana L. Alden. Available at: https://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=8222 [Accessed 1 May. 2014].
Berning, J. and Zheng, H. (2011). The Effect of Retail Grocery Coupons for Breakfast Cereals on Household Purchasing Behavior. 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania. Available at: https://ideas.repec.org/p/ags/aaea11/103661.html [Accessed 4 May. 2014].
Choicesmagazine.org, (2014). Welcome to Choices Magazine Online!. Available at: https://www.choicesmagazine.org/magazine/article.php?article=154 [Accessed 2 May. 2014].
Jstor.org, (2014). JSTOR: An Error Occurred Setting Your User Cookie. Available at: https://www.jstor.org/discover/10.2307/1249695?uid=2&uid=4&sid=21103976323667 [Accessed 1 May. 2014].
López, A. (2014). Online Grocery Store Coupons and Unhealthy Foods, United States. Preventing Chronic Disease, 11. Available at: https://www.cdc.gov/pcd/issues/2014/13_0211.htm [Accessed 5 May. 2014].
Rogers, P. & Brien, R. (2014). Unprecedented changes in Grocery Retailing in the UK. Available: https://www.kantarworldpanel.com/global/News/Unprecedented-changes-in-Grocery-Retailing. Last accessed 31/03/2014.
Q1) How frequently do you visits retail grocery stores?
|
Quite Regularly |
|
Regularly |
|
Often |
|
Some times |
|
Occasionally |
Q2) which grocery items do you mostly purchase from the retail stores?
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Vegetables |
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Fruits |
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Meat |
|
Food items |
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Spices |
Q3) what do you expect most while you buy products from the supermarkets?
|
Quality |
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Price |
|
Promotions |
|
Discount |
|
Display |
Q4) how far are you satisfied with the grocery items as provided by retail sectors of the UK?
|
Strongly Agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q5) how far do you agree that branding of the product is more important than price while choosing a product?
|
Strongly Agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q6) how far you agree that quality can increase the reliability for the grocery items?
|
Options |
|
Strongly Agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q7) From the provided options, which of the following feature is more helpful in creating positive shopping experience for a supermarket?
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Lighting |
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Hot and cold factors |
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Availability of entire products |
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Display of items |
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Easy payment options |
Q8) How far you agree that promotions and advertisements are successful in changing your decision-making process?
|
Strongly Agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q9) How far do you agree that location is also important factor while choosing a shopping destination for grocery items?
|
Strongly Agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q10) how far do you agree discounts, display and coupons inspire you to be the loyal customer of the particular company?
|
Options |
|
Strongly agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q11) How far you agree that you are loyal to the particular store while buying the grocery items?
|
Strongly agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q12) what are the information sources that you consider while making final choice for products/services?
|
Near and dear ones |
|
Websites |
|
Front desk Employee |
|
Advertisement and promotions |
|
Others |
Q13) how far do you agree purchasing high priced grocery items enhances the social status?
|
Strongly agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q14) how far do you agree that Nutritional factors influences your buying behavior?
|
Strongly agree |
|
Agree |
|
Neutral |
|
Disagree |
|
Strongly disagree |
Q15) How far do you believe that employees’ behavior and suggestions helps in making right product selection?
|
Quite often |
|
Often |
|
Sometimes |
|
At times |
|
Occasionally |
16) What are the factors forces you to opt for change your retail firms to another retail firms?
|
High Price |
|
Lack of Offers and discounts |
|
Far locations |
|
No diversified products |
|
No assistance from Employee |
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