1. BA (HONS) IN MANAGEMENT
ENTERPRISE & TECHNOLOGY
Title:
Investigation on: Asda’s pricing strategies to explore
its impact on customer’s perception of Asda.
Author:
Hasib Ullah

2. This dissertation is submitted in partial fulfilment of the BA (HONS) in
Management Enterprise & Technology
I declare that this dissertation is my own original work and has not been submitted
elsewhere in fulfilment of the requirements of this or any other awards.
Hasib Ullah

3. ACKNOWLEDGEMENTS
I would like to take this opportunity to thanks my family and friends, particularly Ishrat
Perveen, Wali Muhammed, Shahid Balil and Matthew Kennedy for their constant support
and patience throughout my research.
But the most important person throughout my dissertation is my research professor Dr
Keith Halcro to whom I wish to convey my heartfelt thanks for guiding me in my
dissertation.

4. Abstract
This research project has a focus on an investigation on Asda’s pricing strategies to explore its
impact on customer’s perception of Asda.
This study has a high level of importance because as the competition is intensifies amongst
retail supermarkets for top position in the markets understanding customers perception
regarding services provided to them has become a key for supermarkets.
The research methods which have been used include a literature review of the views of the
major authors in this area.
The findings of this work show Asda customer like any other customer’s have expectation
which influence their perceptions when deciding to visit a particular supermarket or
purchasing a particular product.
The main conclusions of this work show that customer’s choices are very diverse. Also,
respondents were of the opinion that prices of the products are major factor in their choice.
The recommendations of this work are that Asda should continue with current pricing
strategies because it helps Asda address the concerns of majority of the customer’s.

5. Content Page
Page
Declaration i
Abstract ii
Acknowledgement iii
Contents iv-v
Introduction
1.1 Background Information................................................................................................1
1.2 Value of the research......................................................................................................2
1.3 Aims and Objectives of the research..............................................................................3
1.4 Dissertation Structure.....................................................................................................4
Literature Review
2.1 Introduction....................................................................................................................6
2.2 Supply and Demand.......................................................................................................6
2.3 Sales Promotions...........................................................................................................7
2.4 The Marketing Mix........................................................................................................8
2.5 Pricing strategies effects on customers..........................................................................9
2.6 Motivation factors for consumer..................................................................................11
2.7 Asda Market Growths..................................................................................................14
2.8 Supermarkets in the UK..............................................................................................16
2.9 Asda’s use of pricing strategies...................................................................................17

6. 2.9 Conclusion....................................................................................................................20
Research Methodology
3.1 Introduction.................................................................................................................22
3.2 Research Philosophy....................................................................................................24
3.3 Research Approach......................................................................................................25
3.4 Research Strategy.........................................................................................................26
3.5 Time Horizons..............................................................................................................27
3.6 Data Collection Methods.............................................................................................28
3.7 Conduct of the Research..............................................................................................29
3.8 Limitations of the research methodology....................................................................29
3.9 Conclusion....................................................................................................................30
Finding and Discussion
4.1 Introduction..................................................................................................................31
4.2 Demographics of respondents......................................................................................32
4.3 Popularity of supermarkets..........................................................................................35
4.4 Understanding customer expectations..........................................................................40
4.5 Promotion pricing strategies.........................................................................................44
Conclusion
5.1 Introduction..................................................................................................................48
5.2 Key insights from literature review..............................................................................49
5.3 Key insights from questionnaire..................................................................................50

7. 5.4 Recommendation.........................................................................................................50
5.5 Strengths.....................................................................................................................51
5.6 Limitation of Dissertation.......................................................................................... 51
5.7 Future Research............................................................................................................52
References...............................................................................................................................53
Appendices..............................................................................................................................57

8. Introduction
1.1 Background Information
The purpose of this dissertation is to an investigation on Adsa pricing strategies to explore its
impact on customer’s perception of Asda.
Asda is in a retail oligopoly industry. According to Sharma and Kumar (1998) an oligopoly is
a market condition where “a market situation is in between a monopoly and perfect
competition in which the number of sellers is more than one but is not so large that the
market price is not influenced by anyone them.
In the light of porter’s Porter’s generic strategies Asda is placed at cost leadership section in
term of market that Asda want to capture, which consists of board target and low cost. As
attempt to become the lowest-cost supermarket in the grocery industry. Following this
strategy places emphasis on cost reduction in every activity in the value chain. With this
strategy Asda now holds 17.5% of the market share. Despite this strategy Tesco earning is
better than Asda due to product diversification.
In recent years UK has seen its big supermarket like Asda, Tesco, Sainsbury and Morrison
are engaged in ferocious price war to attract each other customers. In this intense atmosphere
Asda is also trying play proactive role by further engaging its own customer and potential
new customers.

9. According to Marcus, Leroux, (2010) Asda is now challenging its competitors supermarkets
by giving its customers the biggest prices cut on the products in a decade. Asda has reduced
the price of 3,600 items by an average of 13 per cent, increasing the pressure on Tesco.
Asda has also pointed allegation at other supermarkets of using promotions which mislead
shoppers Darren Blackhurst, Asda's chief merchandising officer, said: "People are sick and
tired of being tricked and deceived by dodgy claims and bogus buy one, get one free offers.
Unlike our rivals, we're lowering prices on a more permanent basis on the products people
want to buy, not just products we want to sell them. We also want people to check our prices
every time they shop." Marcus, Leroux, (2010)
1.2 Value of the research
If there can be a greater understanding of the factors that influence Asda’s customer
perception of them then it will be easier to attract more customers and compete better in the
UK supermarket industry.
Asda focuses their efforts on value-oriented customers in the market. As a result Asda’s
products are focused on providing value-oriented customers with products that are indeed
value-for-money, relative to competitive offerings. Interestingly, an emphasis on cost
leadership in this sense can act as a form of differentiation.
This dissertation will look at Asda which is second largest supermarket in terms of market
share as Smale (2010) showed that Tesco was the market leader with Asda in second place.
The successful outcome of this research will enable us to understand how Asda customers
perceive Asda prices strategy. Customer attitude can have great impact on Asda as their
decision will determine how they would choose to shop in the Asda stores. This research will

10. provide the insight to readers and would deepen their understanding on matter such as pricing
strategic and the critical role its play in the determining customers shopping habits.
The problem this research piece will attempt to solve is how important role does the price
strategies play in building overall view in customers mind how they perceive Asda. This
dissertation piece will present great scope to retail industry for analyzing in the current
environment what are those factors which determine general public shopping style. In many
people view it only the price consideration which final determine where people might choose
to shop for their household goods.
1.3 Aims and Objectives of the research
The aim of this dissertation is to complete an investigation on Asda’s pricing strategies to
explore its impact on customer’s perception of Asda.
In order to complete this aim I have set objectives for myself that will help me get answers
closer to my aim. They are as follows:
1. To perform a literature review of pricing strategies,
To help establish what the current and historical thinking is in regards to pricing strategies a
literature review will be completed. This will look at key authors, surveys and other relevant
information to establish a good knowledge before undertaking a questionnaire to ensure the
most relevant questions are asked.
2. To perform a review of Asda pricing strategies
By looking at Asda’s current pricing strategies it will help understand what Asda is doing just
now and what Asda is doing in regards to current thinking on pricing strategies. This will
help with objective four.

11. 3. To get data on customers perceptions of Asda
By asking customers what their perceptions of Asda are then this can be used to see if it
matches up with what is being said in the literature review and will also help when
completing objective four.
4. To establish the best ways for Asda to use pricing strategies to further improve
customer perceptions.
By using all the data gathered it will then be possible to establish good recommendations for
Asda to improve their customer’s perceptions.
1.4 Dissertation Structure
This dissertation methodology framework primary data will consist of survey questionnaire
that I will ask Asda customer to get their first hand viewpoint. Questionnaires will be used to
collect both qualitative and quantitive data. There will be 20 questions that I will ask to 100
participants. I plan to carry out this task in December to take the advantage of busy time in
the store. The secondary data gathering will mainly be generated through websites. Websites
will be used to collect both qualitative and quantitive data. All of the secondary data will be
collected from investigations previously carried out by different institutions and authorities.
The dissertation will be divided into five chapters of which this introduction is the first.
• The second, chapter two, will comprise of literature review, and will look at key
thinking in the relevant areas
• The third chapter, will consist of methodology frame work, and will explain how the
dissertation will be undertaken

12. • The fourth chapter, findings, will examine the results of the questionnaire in relation
to issues looked at in the literature review. It will also help to fulfil objective four.
• The fifth chapter will be the conclusion and will wrap up the entire dissertation and
will also fulfil objective four. Strengths and weakness of the research will be look at
as will avenues for future research
Literature Review
2.1 Introduction
In order to fulfil of the project, four research objectives this literature review examine pricing
from authors viewpoints. This chapter will allow greater understanding of the will for further
analytical judgement and will enable the project’s aim of Asda and its pricing strategies.
2.2 Supply and Demand
According to Landsburg (2008) when the price of a good goes up, people generally consume
less, this statement is called the law of demand and economists believe that the law of
demand is nearly always true. Therefore, Asda will be concerned with the prices of their
products as they will look to increase their turnover to the maximum potential. This means
they will very carefully set their prices and to this end they may examine several pricing
strategies to attract as many customers as possible.
Asda as the supplier of goods to their customers can be examined in relation the supply side
theory of economics. Supply side economics is concerned with incentives and lower taxes,
Rhiani (2002). The idea is that if a company can lower their costs as much as possible then
they will be able to lower their prices which will in turn stimulate demand. If Asda can lower

13. their costs through bulk buying and supplier discounts then they will be able to lower their
prices which will increase the demand of their customers. Asda recently highlighted “supply
side shocks” as one the main reasons for rising prices, Asda Income Tracker (2010).
2.3 Sales Promotions
Sales promotions can play a big part in influencing customer demand. “Sales promotion is the
offer of an incentive to induce a desired sales result” (Gilbert, 1999). IGD, the data company
which monitors supermarkets, estimates that a quarter of all shoppers buy goods because they
are part of a buy-one-get-one-free offer, as a result, more than 80 per cent of all promotional
activity within supermarkets is a buy one get one free or three-for-two, Wallop (2008). This
shows that sales promotions can play a massive role in increasing customer demand and is an
important factor for customers when considering where to buy.
Customers buying habits can be affected by sellers pricing strategies. According to Mills
(2002) the “consumers desire for the product usually depends on available income and may
depend on other factors such as household size and composition, and ethnic origin.
Consequently, some consumers are willing to pay high prices while others will buy only at
lower prices. Equally, there can be differences in the quantities purchased by individual
customers or households, even when all customers pay the same price. “From a sellers
perspective although there are many factors that could influence a customers demand (e.g.
advertising, location etc) the main factor that will affect the demand of customers will be
price.
2.4 The Marketing Mix
A seller who wishes to influence the demand of their customers can make use of an idea
known as the marketing mix (also known as the 4 P’s). According to Jefkins (2000) the

14. marketing mix is the combination or stages of elements necessary to the planning and
execution of the total marketing operation. The marketing mix consists of price, product,
place and promotion.
The product is the actual product itself, what a company is selling to their customers.
Armstrong & Kotler (2010) both emphasise that the product means the goods and services
combination the company offers to the target market. A product or service which is not
matched to a customers needs will likely see demand fall as customers will not be interested
in purchasing a product which is not useful to their needs.
Place is where the products or services are sold. According to Kotler and Armstrong (2010)
place includes company activates that make the product available to target customers.
Although place will be important if price, product and promotion are sufficiently good then
demand will likely increase. This is backed up by a survey undertaken by Brand Recruitment
which showed that consumers regularly shopped in their chosen supermarket primarily
because it is the closest supermarket to where they live, Mann (2010).
Promotion involves a company’s efforts to promote itself themselves. According to Kotler
and Armstrong (2010) promotion means activities that communicate the merits of the product
and persuade target customers to buy. This will include areas such as advertising and strong
brands.
Price is what the actual cost of the product or service is to the customer. According to Kotler
and Armstrong (2010) price is the amount of money customers must pay to obtain the
product. Barron (2010) commissioned a survey which showed that 71% of UK consumers
ranked price as the most important factor when making a purchase, placing the UK as the
most price conscious market in Europe. This shows that for consumers in the UK the biggest
factor in the marketing mix which will influence their demand is price.

15. Although it may be the case that consumers rank one factor as higher in importance in
affecting their demand it is important that the other factors are not neglected. According to
McDaniel & Gitman (2010) a strategy must be constructed for each of the four 4 P’s and
blended with the strategies for the other elements. This shows that even though different
aspects of the marketing mix may be more important in influencing customers demand than
others all areas should be considered important and will have some influence on customers
demand.
2.5 Pricing strategies effects on customers
Asda at times promotes through its advertising that it has made large price cuts as a way to
attract customer. According to Neil Hamann, a Managing Director, price cuts are a tactical
way for supermarkets to promote their products and address their shoppers changing needs.
Marketing Society Forum (2010). Price cuts have also been used by supermarkets during the
recession as a way to attract customers who will be looking for low prices in a tough
economic climate. One example of this is Morrison’s who in 2009 implemented 30,000 price
cuts in response to the recession and saw sales hit record levels, The Western Morning News,
(2010).
By implementing low prices Asda’s image among customers will be one of a company which
can offer them low prices on a consistent basis. This means that customers will have a
perception of Asda as a company which can offer them low prices.
In the recent move by the Asda to remain cheap and distinctive store Asda has decided to do
way with buy one get one offer. “Supermarket giants Asda are scrapping "buy one get one
free" deals in favour of price cuts.The offers, known as BOGOFs, will be replaced this
weekend by cost reductions on around 5000 items. It follows a similar round of cuts last
month. Asda chief merchandising officer Darren Blackhurst said: "With the country in

16. recession, we need to do all we can to lower the cost of the weekly shop and do the right
thing by our customers." "That's what our price pledge is all about - good, honest value that
our customers can trust, week in, week out." Leading retail analysts said the move marked a
return to the firm's roots. Richard Perks, director of retail research at Mintel, said it showed
the influence of US retail giants Wal-Mart, who bought Asda in 1999. He said: "It is really
going back to Wal-Mart's roots of everyday low pricing. "You don't go for the promotions -
you just make sure your prices are as low as possible every time." Robert, Dex, (2009)
Asda has decided to shun traditional methods (e.g. BOGOFs, loyalty cards etc) of attracting
customers and will instead rely on their prices to attract and retain customers. Asda has
enough confidence in its ability to offer low prices on a consistent basis that they feel they do
not need to rely on gimmicks. Instead their pricing policies will be used to ensure repeat
custom.
2.6 Motivation factors for consumer
An understanding of customer motivation to buy is key to the success of marketing strategies
(price strategies). Marketers who have understanding of customer behavior know that
customers need motivation to select a store for shopping. Customer motivation is a complex
process that affects directly on customer purchase behavior. Sustainable success is achieved
when marketers understand what motivates consumers to buy. ASDA operates in a
challenging market environment where it is hard to characterise customer behavior, brand
loyalty, how, where and why consumers buy. This research aims to reveal detailed insights
into where, why and how consumers buy.
Most common type of customer motivation is economic motivation, where top motivational
factor is low price. Organizational factors are significant for some customers like a business
owner buying for his office or business or a mother shopping for her family. My primary

17. research reveals that customer can also be motivated by conditioning for example they buy
same brand or product from the same store as their friends and family did. Customers are also
motivated by some unconscious drives to buy a product or brand. Customer buying behavior
is also influenced by their individuality. Individual preferences are often shaped by personal
experiences, perceptions, unique memories etc
Ethical motivation plays the import role in customers purchasing decision. According to
Hillebrand (2007) state that “Ethnically motivated customers buy fair-trade products because
they feel they have responsibility towards a board set of stakeholders “. As customers are
becoming more diverse in their choice of purchasing particular products this make it difficult
to predict customer even further as to how they react next.
Motivation is based on drive and direction. Drive is linked to the strength of motivation and
direction indicates the variety of products that customer can choose from. Overt and covert
motivating factors are the basis of our inner motivation as in the Freudian theory outlined
above.
Customer motivation to buy is also influenced by some internal and external forces for
example customer motivation can be decreased or increased by their experiences, desires,
needs, expectations or personal traits. Moreover, primary research indicates that variety of
products is another prime motivator for many customers of ASDA.
For many consumers sense of achievement is another important motivational factor, where
the final outcome is related to positive consequences rather than an expense to solve a
problem. Sometime customer purchase products to restore stability in their order of life as the
absence of these products can make their life out of balance. Consumers are even willing to
buy personalised luxury products to restore this balance in their life.

18. Robert (2000) Maslow’s hierarchy of need is considered as a basis all motivation in which
people satisfied their wide range of need in order to live. Maslow’s hierarchy highlights that
basic need such as food, shelter and warmth must be achieved and satisfied. This Maslow’s
hierarchy of need is used by companies often to pressure customer to purchase more products
while they could without it before proceeding further in their shopping.
Market segmentation is a core factor to analyse customer behavior. Market segmentation is
the process of dividing markets into groups of similar consumers and selecting the most
appropriate groups and individuals for the firm to serve (Olson & Peter, 1994).
The consumer buying process is also described by Kotler et al (2008) five stage model. This
model explains the customer buying behavior. This five stage model includes problem
recognition, information search, and evaluation of alternatives, purchase decision and post
purchase behavior.
Another factor which can influence customers demand is the convenience factor, i.e. the
ability to shop for everything you need under one roof. According to Wilson (2011) the
decline in the number of local butchers can be attributed to the apparent preference of
consumers to shop in supermarkets where everything is under one roof. This was also an
issue raised when the government took under consideration plans for supermarkets to sell
over the counter drugs normally sold at local pharmacy’s. According to Poulter (2011) “the
row has echoes of earlier battles, where out- of-town supermarkets effectively killed off
traditional butchers, bakers and greengrocers when customers were lured away by claims of
lower prices and the convenience of buying everything under one roof”. This shows that for
customers the ability to have the convenience of shipping for everything under one roof is a
very important factor to them and can influence them to shop at supermarkets.
2.7 Asda Market Growth

19. Asda price strategies have been chosen by them in order to increase their sales which they
hope will also lead to increased profits.
Asda sales have mostly shown a steady increase over the last 8 years.
Date 2009 2008 2007 2006 2005 2004 2003 2002
Turnove
r
19,836 18,573 16,896 15,759 14,865 14,318 13,326 12,188
All figures are in millions and are taken from the FAME database
Asda turnover has increased every year for the last eight years. In 2009 Asda turnover
reached a record high of almost £20 billion.
ASDA's sales for the 12 weeks ending March 22 were up 8.5% on the year, taking the Wal-
Mart-owned chain's share of the UK market to a record 17.5%, the latest TNS World panel
grocery market share figures showed yesterday.
TNS said Yorkshire-based Asda has again demonstrated its strength as a low-price champion.
Morrison’s, meanwhile, saw its sales climb by 7.2%. The UK's fourth-largest grocer took its
share of the market to 11.8%, TNS said.
Tesco, the UK's largest grocer, saw its share of the market dip year-on-year, falling from
30.8% a year ago to 30.4%.
J Sainsbury's market share was "constant" at 16.1%, TNS said, after its sales grew by 5.7%.
Discount retailers such as Aldi, Lidl and Netto saw their combined share of the UK market
rise to 5.9% from 5.5% a year ago. TNS said "shopper spending" at the three retailers rose by
13%.

20. Asda sales figures can be attributed to its pricing strategies. By offering appropriate pricing
strategies Asda has been able to achieve continuous growth over a long period of time
meaning that their turnover has been consistently increasing.
2.8 Supermarkets in the UK
There are a number of different supermarkets currently operating in the UK. The four biggest
United Kingdom supermarkets are Tesco, Asda, Sainsbury’s and Morrison’s.
This shows that Asda is the number two supermarket in the UK, with Tesco being the market
leader and Sainsbury’s and Morrison are in third and fourth place respectively. Collectively
these four supermarkets are known as the ‘big four’, Smale (2010). There are a few other

21. supermarkets such as co-op, Waitrose, Aldi, Lidl and Iceland all with small market share
compared to the big four supermarkets.
2.8 Asda’s use of pricing strategies
Asda overall pricing strategy aim is to be a cost leadership store it involves a company using
aspects of business such as economies of scale and discounts from suppliers by buying in
bulk to enable them to sell their products very cheaply to customers. According to Ireland et
al (2008) they describe cost leadership strategies as “an integrated set of actions designed to
produce or deliver good or service with features that are acceptable to customers at the lowest
cost, relative to that of competitive”.
Asda use several pricing strategy in various department to further enhance the market growth
consisting of following, Psychological Pricing, Product Bundle Pricing, and Promotional
Pricing.
Prime strategy that Asda is implementing is penetration pricing throughout all of its chain
stores in the UK. Baker (2011) states that penetration strategy is used when the firm decide to
set the price below the service’s value to the customer, thereby ensuring a large customer
base. It is the trade-off of higher revenue versus higher margins and can be a very effective
strategy especially for new entrants into particular markets.
Hirschey (2009) also argue that “penetration strategy is a pricing strategy that is used for charging very low
initial prices to create a new market or grab market share in a well establish market”. This strategy will help
Asda attain sustainable growth because this pricing penetration strategy philosophy look to
sell the product with minimum profit margin that allows large customer base to able to
purchase product. Beside as the result of recent economic melt down throughout the

22. developed world significantly large population had to tighten their pockets. Having a
accessibility to supermarket that sell the quality product and the cheap price will naturally
further likely to entice customers to purchase product from there.
Asda use of penetration price strategy helps it achieve their statement of been low price store.
Currently Asda is making effective and aggressive posture in implementing this strategy one
such step that Asda has taken is this regard is the guarantee to their customer “We'll
guarantee your comparable grocery shopping is 10% cheaper at ASDA or we'll give you the
difference” whereby it is claiming to cheapest store ASDA (2011).
Asda use psychological pricing Pride and Ferrell (2007) look this strategy as “attempt to
influence a customer’s perception of price to make product’s price more attractive”. While
Webster (2003) argue that “psychological pricing is a marketing ploy designed to create the
illusion in the mind of the customer that a product is being at a significantly lower price
when, in fact, the price differential is inconsequential”. This approach is used when the
marketer wants the consumer to respond on an emotional, rather than rational basis. Asda
uses this strategy often for selling various product ranges in it stores. For example Asda
currently sells ASDA Chicken Breast Fillets 3 for £10 from its original price of £3.90, Asda
(2010). This strategy often results in high sales for particular product for the company. Since
customers will perceive such offers as bargains available to them as a result are much more
like to purchase these goods.
Product Bundle pricing is used when set of product that is sold as one product with its own
price according to Kittlaus, and Clough (2009). Product bundle strategy serves to move old
stock. Asda often sold using the bundle approach in its toys department. Asda is currently
selling Play & Learn Rattles & Teethers 3 for £5, Asda (2011). Hughes and Kapoor (2010)
state that Product Bundle pricing can be very useful tool in increasing customers satisfaction.

23. Customers are more likely to purchase this product over several other products that available
to them to purchase from. This due to the fact that mentally customers will feel they get more
for their spend money.
Promotional Pricing is used to promote a product is a very common application Kurtz, et al
(2009) see it as “pricing policy in which a lower than normal price is used as a temporary
Ingredient”. Anselmo (2010) argue that there are many types of promotional pricing that
company could use for enhancing their sales. Asda in the case of Event starter set newborn
product does the promotion by putting it on sale in its store nearly half its original price. Asda
priced the product at £10.00 from its original market price of £19.98, Asda Special Offers
(2010).
Customers usually prefer to purchase product that are on promotion since customers are
aware that promotion is only going to last for the brief period of time. In 2010 on Boxing
Day sales Asda in its 105 store throughout the United Kingdom attract some five million
customers to their stores. This figure clearly illustrates the general public interest in
purchasing good from promotion available in the stores Yorkshire Post (2010).
Everyday low price (EDLP) “is a strategy that sets a stable price at a point somewhere
between competitors regular price and promotional price” according to Sullivan and Adcock
(2002) .EDLP protagonists use the part of their budget which would go into promoting
merchandise to maintain lower price throughout the year. This is twinned with a refund
policy for customers finding lower prices merchandise elsewhere. To implement EDLP
successfully, cost have to be kept low through an efficient distribution system and low
operating costs. Asda successfully adopted this strategy, which matched their image as a low-
price retailer and was popular with customer. The argument for EDLP is that customers

24. become suspicious of promotion, suspecting that the higher price they pay for some items
funds the saving they make on others.
I will be discuss in following final conclusion chapter literature review, methodology and
data collected briefly address aim of the report along with objectives analysing whether have
successful or not in achieving the targets.
2.9 Conclusion
Price has continuously been highlighted as perhaps the most important factor that affects
customer demand. However, other factors such as convenience and promotional offers have
also been highlighted as important. If Asda wishes to continue increasing its turnover then
they must take consideration of all these factors and also take advantage of different pricing
strategies.
Research Methodology
3.1 Introduction
The focus of this chapter is on the primary research which will take place in chapter four. The
idea of this chapter is to outline the idea of the research methodology and also examine the
research onion which can help when making decisions at later stages.
The different aspects of research which will be looked at will include, research philosophy,
the research approach, research strategy and finally time horizons.
Beside the mention issue if data collection methods or any other issue which may arise will
also is discussed in their due course. According to Kumar (2008) research methodology “it
may be understood as a science of studying how research is done scientifically”

25. Research methodology is very important aspect of conducting professional investigation
because without having a proper understanding or know how of exactly what it is you are
attempting to achieve and how you plan to achieve that target. The research is unlikely to be
successful if there is poor planning.
Prior to actually discussing the outline of the research itself it is very important first to
examine the different Issues like the research philosophy, research strategy, research
approach, time horizons and techniques and procedures. These issues will be addressed
through examining the research onion, Saunders et al (2009a).
Adapted from Saunders et al (2009 Page 138) Figure 1
The research onion is a tool that provides the opportunity to take one step at a time decision
approach to research. Saunders at el (2007) “also state that research onion as a way of
depicting the issues lying your choice of data collection method” Through layout out the
research of different stages which are involved in a research methodology the onion research

26. enable us to make the choices, e.g. whether the research philosophy is phenomenological or
positivist.
The remaining part of the chapter will focus on the different stages of the onion and the
choices made for the research:
 Research Philosophy
 Research Approach
 Research Strategy
 Time Horizons
 Data Collection Methods
The behavior of the research will also be looked at in detail as will other issues which may be
highlighted when going through the stages.
3.2 Research Philosophy
The research onion looks at the two different approaches for highlighting an appropriate
research philosophy, positivism and phenomenology.
Collis and Hussey (2003) define phenomenology as a philosophy is considered fact that
appears and understood, especially one which the cause the question. Phenomenology helps
with understanding human behaviors from the participant’s own frame of reference. It
provides high importance to the subjective state of individuals.

27. Collis and Hussey (2003) say that positivism “approach seeks the facts or causes of social
phenomena, with little regard to the subjective state of the individuals”. “It is based on the
assumption that social reality is independent of us and exists regardless of whether we are
aware of it.”
This research philosophy will focus on phenomenological approach. The aim of this project
will seek to understand the importance of pricing strategy in customers chooses a particular
of Asda supermarket and how it enhances customer’s perception of Asda. The primary
research that will be undertaken will likely yield data that is of a qualitative nature coming
from primary information. Since Asda supermarkets and their customers are evolving (Asda’s
turnover increased by more than 100 million between 2008 and 2009, FAME database) it is
unlikely that the same results would be yielded should the questionnaires be handed out again
in the future. This means that a phenomenological approach would be most appropriate for
the project.
3.3 Research Approach
The research onion looks at the two different approaches for highlighting an appropriate
research approach, inductive and deductive.
According to Engel and Schutt (2010) inductive research start with specific data, which is further
enhances to attain general explanation that account for the data.
Deductive research “generally combines finding out the explaining certain phenomena”
according to El Kadhi (2009)
The research approach for this project will be inductive, which is appropriate for a
phenomenological approach. Through exploring this data and using the literature to refer
back to. The research proposal will aim to build up solid theory in relation to the aim by

28. using previous literature available on the matter form both primary and secondary research.
An inductive approach means that primary and secondary research will be used to make
observations which can then be used to establish recommendations.
3.4 Research Strategy
The onion says that there can be many different research strategies which are available. These
are, experiment, survey, case study, grounded theory, ethnography and action research. The
survey strategy will be used for this project.
The research strategy that will be used for this research on Asda will utilise the survey
research strategy. There are two main kinds surveys can be used. which are descriptive
survey and analytical survey. According to Collis and Hussey (2003) a descriptive survey is
concerned with indentifying and counting the frequency of a specific population, either at one
point in time or at various times for comparison. Such a survey is frequently used in business
research in the form of attitudes to a product or service. The other major type of survey is the
analytical survey where intentions are determine whether there is any relationship between
different variable. In order to conduct such a type of survey there will be need familiarise
with the theoretical context. The survey is the most popular and common method in the areas
of business and management, Bankert and Amdur (2006), and is used most frequently to
answer who, when, what, where, how much and how many questions, which means it will be
the most appropriate in regards to the aim as it will allow the collection of relevant data. The
survey strategy brings up two important issues of validity and reliability. Any conclusions
which result from the survey strategy must be valid, that is to say, they should be accurate,
reflecting the information present in the data in a way which is unbiased. It must also be
reliable, that is to say, the same result should occur if the same conditions are replicated
(assuming circumstances have not changed) Saunders (2007).

29. The main purpose of using the survey strategy will be to collect data from respondents which
will give information on their perspectives and opinions and which will allow conclusions to
be drawn from the data which are valid and reliable and which are also appropriate to both
the aims and objectives.
3.5 Time Horizons
Two time horizon strategies are identified by the research onion.
Bonita, Beaglehole, Kjellström (2006) in a cross-sectional study the measurements of
exposure and effect are made at the same time. It is not easy to assess the reasons for
associations shown in cross-sectional studies
Kemper (2004) says that longitudinal studies involved follow up research after a specified
time period.
As the research can only be undertaken once the strategy chosen will be cross section studies.
This means that the empirical work will take place once ensuring the project can be
completed by the set date.
3.6 Data Collection Methods
There are many different choices provided by the research onion when deciding on data
collection methods which are appropriate. A questionnaire is naturally the most appropriate
choice for this project.
The primary data will mainly be generated through questionnaires. Questionnaires will be
used to collect both qualitative and quantitive data. There are several reasons which qualify
questionnaires as way forward. The first benefit of questionnaires is that they are cheap to

30. produce and if made correctly they can help gain high research quality primary data for
analysis, Wood and Kerr (2011). Also, in order to ensure accurate data which properly
represent the whole sum picture a there will be relatively large sample size 100 will be
employed throughout. Lastly, in order to ensure maximum participation of general public as
respondent it will be very important that the questionnaire produced is easy to read. Such type
of easy to answer questionnaire only takes a few times to complete and also help ensure that
participants do not lose interest in the questionnaire. Lastly It is important that the
questionnaires which are handed out to participants are first of all are clear to read and easy
to understand for them and secondly include the correct questions to get the best possible
response for generating results in later stages. It would be very helpful if questionnaire will
be tested with a small sample first. As such venture will allow any problems to be brought to
attention such as unclear, misleading or confusing questions.
3.7 Conduct of the Research
Quota sampling will be utilised for this study. Hopefully during the course of questionnaire to
general public reasonable divided number of participants from each age of both male and
female will participate which ensure equal representation of respondents as possible. The
relevant numbers from each sex group will be sufficiently represented to ensure that the data
can be used. If the sample is not proportionate in term of representation of both sexes then it
will be difficult to draw conclusions as the sample will be biased. This questionnaire will
asked to people aged between 18+ years to avoid youngster not mature from wasting time.
The questionnaire will be asked to be completed by at least 100 respondents.
3.8 Limitations of the research methodology
The sample size for the questionnaire is 100 participants. This is a relatively large sample and
therefore should prove to be representative of the general population. This could possibly

31. bring up the issues of validity and reliability because if the sample is unrepresentative then
any conclusions taken from it may not be valid or reliable. According to Collis, Hussey
(2003) Reliability concerns with research finding been able to be represented while validity
concerns with research findings that absolutely correctly represent what is actually is
occurring in the situation. As questionnaires are only being handed out a certain Asda stores
which are in near fascinates due to constraint of resources. Therefore the responses which
will be collected might not be fully representative view of Asda customers through the United
Kingdom.
3.9 Conclusion
The options which have been selected from the onion are as follows:
• Research philosophy – Phenomenological
• Research Approach – Inductive
• Research Strategy – Survey
• Time Horizons – Cross Sectional Study
• Data Collection Methods- Questionnaire
Chapter 4 Findings
4.1 Introduction

32. The purpose of this chapter is to present, examine and analyse the results of the empirical
work. This chapter will have two purposes. First, there will be a presentation of the results of
the questionnaire as this will enable me to address the objective of gathering data on the
customer’s perception of Asda. Second, there will be an examination of what the results
indicate. The results will then be used to examine the issues raised in the literature review and
whether they back up the findings, contradict them or have no conclusive result. The results
of the questionnaire will be put forward in a numerical fashion with the results of each
question being presented individually and illustrations such as bar charts or pie charts.
The layout of the chapter will be as follows:
• 4.2 demographics of respondents
• 4.3 popularity of supermarkets
• 4.4. understanding customers expectations
• 4.5 Promotion pricing strategies
There are fifty eight respondents from the Asda general Public to respond on the ten
questions.
4.2 Demographics of respondents
1. What is your gender?

33. The demographics of the respondents were 36 male and 22 female. More males have
responded to the questionnaire than females. The key note survey reported that 71% of men
claimed to be responsible for the grocery shopping in their household, KeyNote (2010). This
shows that Asda’s customers are likely to be in line with the behavior of shoppers in the UK
as just over 20 respondents were female and just over twenty respondents said they were
responsible for the main shopping in their household.
2. What is your Age?

34. The ages of the respondents were 27 were between the ages of 18-30, 23 were between the
ages of 31-60, 8 were between the ages of 61.This data illustrate that viewpoint of all age
group are accommodated in the questionnaire. Perception of Asda customers across the board
of all age group is represented.
“Asda said that under its new policy, customers would be consulted about every aspect of the
business, having input on things like product development and the feel of packaging.
Beginning in January, 18,000 regular Asda shoppers will be given access to products before
they are launched in its stores. Making a dig at rivals' customer-loyalty programs, Asda Chief
Executive and President Andy Bond said he thought customer loyalty couldn't be bought with
plastic points or discount vouchers. Loyalty plans are one of the ways that the British
supermarkets compete. For more than a decade, they have tried to outdo each other”. Lilly,
Vitorovich, (2009)

35. This demonstrate that my strategy is of surveying the customers is also in line with the store
because since one of the objective that will be addressing is to recommend the best way
forward for Asda in using their pricing strategies to further improve their customer
perception.
3. Are you solely or jointly responsible for your household’s main shopping for groceries?
Majority of respondents (36) of customers who visited Asda are solely or jointly responsible
for their household’s main shopping of groceries. This data illustrates that the general
perception amongst these family’s shopper Asda is a popular place for shopping household
goods. Because they had budget consideration to adhere to in deciding their weekly shopping
that also prove the point from literature review that psychological pricing Pride and Ferrell
(2007) look this strategy as “attempt to influence a customer’s perception of price to make a
product’s price more attractive”. This psychological strategy is every successfully been

36. implemented by Asda. In future to further improvements to the image of Asda, they must
continually pursue this psychological strategy as this will aid in Asda to attaining more
household customers to attractive pricing. A survey conducted by KeyNote (2010) argues
that men and women’s buying habits in terms of grocery shopping, it was established women
were far more expected to the mass amount of household shopping (71.4%) in comparison to
their male counterparts.
4.3 Popularity of supermarkets
4. Which one of the following statements most closely describes how you shop for your
main grocery shopping?
Majority of 33 customers questioned stated that they always visit the same supermarket while
around 16 customers stated they mostly visit the same supermarket. This data illustrate that
customer’s perception about Asda is good as majority of the customer always choose to visit

37. the same store for their shopping. This statistical data also show that Asda overall aimed
strategy of been a cost leadership store it involves a company using aspects of business such
as economies of scale and discounts from suppliers by buying in bulk to enable them to sell
their products very cheaply to customers. According to Ireland et al (2008) they describe cost
leadership strategies as “an integrated set of actions designed to produce or deliver good or
service with features that are acceptable to customers at the lowest cost, relative to that of
competitive”.
Asda is also working so that people who visit Asda are happy with their products prices
charged to them. Because Asda opted not to implement loyalty card strategy that is used by
all its major competitors like Tesco, Morrison’s etc. Asda does not see loyalty cards as
important. Loyalty cards do not affect the price of supermarkets products and are not used to
give discounts or special offers. They are designed rather to encourage loyalty by offering
points in return for consistently shopping in one store. Asda will be confident that rather than
loyalty cards than being needed to ensure that customers return their pricing policies which
can offer customers low prices on a consistent basis will be the most important factor in
ensuring that customers continue to shop in Asda. In future Asda could further improve
customer perception of customers by remaining low cost supermarket that will help win their
trust of customers.
5. Please tell us which supermarket or shop you use most frequently for your main grocery
shopping?

38. Inevitably the most popular supermarket among respondents was Asda with twenty
respondents saying they shopped at Asda for all of their groceries. The second most popular
supermarket was Tesco and Morrison’s with four respondents saying they shopped at Tesco
and Sainsbury’s more frequently. Sainsbury’s had roughly the same number of respondents
who said they shopped at this store more, with eight and 7 respondents respectively choosing
others store. This data in which overwhelming respondent’s choose Asda as their main
preference shopping store the response is broadly support what the literature suggested
illustrate that penetration pricing strategy utilised by Asda is very successful in winning the
trust of it’s customers.
However, it would be expected that as Tesco is the clear market leader, holding almost
double the market share of its closest rival Asda that the most popular supermarket among
respondents would be Tesco. However, this was not the case as Asda was the most popular
response among respondents by a slight margin.

39. 6. Supermarkets can vary in the range of groceries and other goods stocked, some of which
are shown on this card. Which of the following categories of product, if any, would you
regard as particularly important to be able to purchase as part of a single visit to the
supermarket for your main grocery shopping?
This data illustrate that customer expectation varies across all items mention product they
would like to have the ability to purchase in single visit to supermarket with majority stating
toiletries and confectionery are two most important item to which they wish to have
accessibility for purchasing. Although Asda have the entire mentioned products range for the
customer to buy from in the stores In light of these statistics become available Asda perhaps
can further increase two of the most popular items range in their stores because that will
ensure customer satisfaction about product range in Asda. The issues raised by Wilson

40. (2011) and Poulter (2011) that customers are switching their loyalty from local shops to
supermarkets due to the convenience of having all their shopping done under one roof is true
as customers are looking to by many different products at Asda.
4.4 Understanding customer expectations
7. What are other factors, if any, are important to you?
Amongst the 58 customers questioned in the survey 44 respondents considered the most
important factors in their shopping habits is their ability to have access do all their shopping
under one roof. While 22 of these customers also choose the price charged at groceries. This
data illustrate that Asda customer expect to have available to them in one place all the
groceries. In light of this shopping habit data, Asda perhaps can further ensure that it has
more variety of the products available in the store so that maximum number of customer is
satisfied with availability of products. This shows that the issues written about by Wilson

41. (2011) and Poulter (2011) that customers are switching their loyalty from local shops to
supermarkets due to the convenience of having all their shopping done under one roof is true
as the research shows the most important factor that affects customers shopping habits is the
ability to have all their shopping done under one roof.
Second most factors to customer in the data is price the groceries products, Although Asda
already striving to be the cheapest supermarket store in the UK by offering low prices to
customers, In light of the data they must intensified their effort of perusing cost leadership
strategy. This backs up Barron (2010) who’s survey showed that 71% of UK consumers
ranked price as one of the most important factors when making a purchase, placing the UK as
the most price conscious market in Europe. This shows clearly that for Asda’s customers one
the primary factors which are important to them is price.
21 respondents also mentioned having supermarket within convenient distance of home as
important factor consideration when choosing to shop in supermarket. Asda can address this
demand of the customer by building store beside the motorways throughout the country and
city centre so that more people could easily access them. This shows that place is an
important factor to respondents which backs up Brand Recruitments survey which
highlighted that customers regularly shopped in their chosen supermarket due to it being the
closest supermarket to where they live, Mann (2010).
Flexible opening hours and Extra facilities like petrol, coffee shop etc are also important
highlight factors in the shopping habits of the customers. Asda can address the first concern
of 12 respondents regarding the flexible opening hours by further increasing the numbers of
the store which it open 24hours. Asda can address the second concern of having extra
facilities like petrol, coffee shop etc by building Asda petrol pump station near Asda
supermarkets.

42. This backs up the idea of McDaniel and Gitman (2010) that although different factors may
have more of an influence than others on customers a company must take all factors into
consideration if they wish to develop a successful selling strategy. This has been shown by
the respondents highlighting different issues which are important to them even though some
factors have shown to have a higher importance than others.
8. Can you think of any particular supermarket(s) that you would like to use regularly for
your main grocery shopping but can’t because the nearest store is too far away or
otherwise inconveniently located for you?
This data illustrate that perception about Asda is good majority 46% stated they do not wish
to visit the other supermarkets while 30% of the customer said don’t know but overall the
perception of Asda customers is positive .

43. Brand Recruitments survey which highlighted that customers regularly shopped in their
chosen supermarket due to it being the closest supermarket to where they live, Mann (2010).
This is backed up by almost half saying they were happy with the supermarket which closest
to them and only a quarter saying they would visit another supermarket but it was too far
away.
4.5 Promotion pricing strategies
9. Thinking about supermarket special offers and promotions e.g., ‘two for the price of one’
etc., which one of the following statements best describes you behavior?
35 of the respondents state that they always lookout for promotion while 24 says they might
purchase product from promotions and 2 stated they never notice the promotions. This data
illustrate that perception of Asda customer attached high importance how they choose to do
shopping as overwhelming majority show their interest in purchasing products from
promotion. This promotion strategy is already been implemented by Asda throughout all its

44. chain stores to attract new customers to Asda. This backs up IGD’s survey which shows a
quarter of customers look for buy one get one free offers when shopping, Wallop (2008).
Promotional Pricing is used to promote a product is a very common application Kurtz, et al
(2009) see it as “pricing policy in which a lower than normal price is used as a temporary
Ingredient”. Anselmo (2010) argue that there are many types of promotional pricing that
company could use for enhancing their sales. Asda in the case of Event starter set newborn
product does the promotion by putting it on sale in its store nearly half its original price. Asda
priced the product at £10.00 from its original market price of £19.98, Asda Special Offers
(2010).
Customers usually prefer to purchase product that are on promotion since customers are
aware that promotion is only going to last for the brief period of time. In 2010 on Boxing
Day sales Asda in its 105 store throughout the United Kingdom attract some five million
customers to their stores. This figure clearly illustrates the general public interest in
purchasing good from promotion available in the stores Yorkshire Post (2010).
In future Asda should continue with this promotion strategy to further improve the customer
perceptions of Asda because current economic recession really impact people’s ability to
purchase excessively as in the past in order for Asda to ensure the steady stream of customers
and encourage new potential customer who don’t affiliate with other supermarkets and are
opportunist shopper like to purchase good from cheap price stores Asda should keep
employing this price promotion strategy.
10. Which of the following types of promotions or special offers do you frequently look out
for?

45. This data illustrate overwhelming almost 56 respondents stated they are interested in some
type of promotion. Asda at times promotes through its advertising that it has made large price
cuts as a way to attract customer. According to Neil Hamann, a Managing Director, price cuts
are a tactical way for supermarkets to promote their products and address their shoppers
changing needs Marketing Society Forum (2010).
Asda in the future should reintroduce the strategy of buy get one get one free strategy because
according to Robert & Dex, (2009) Asda have shun this policy from their supermarkets. As it
evident from the statistic large number of customers gives important to promotion available
to them in the supermarket. This backs up IGD’s survey which shows a quarter of customers
look for buy one get one free offers when shopping, Wallop (2008).
There are 4 respondents who stated that free entry to competitions is something there are also
interests them. Asda doesn’t do such events in the store regularly expect on Christmas for

46. children to encourage customer to participate in it. Asda can in future address this demand of
their customers by having more frequent events of competition for everyone whereby by all
age group customers can take part in and this will help make the store more interesting place
for the customers while further improving the perceptions.
Conclusion
5.1 Introduction
This chapter of the dissertation will conclude the dissertation as a whole and will look at any
issues that were raised as a result of carrying out literature review and imperial work.
This chapter will be addressed in following steps:
Key insights from literature review – In this heading I would look at the strategies that Asda
is currently using to further in enhance the customer perception of Asda and increase their
sales.

47. Key insights from questionnaire- In this heading I would look at the questionnaire which
customer has responded to most favourable to establish their philosophy in shopping at Asda.
Recommendation - In this heading I would provide Asda with few suggestions which could
help them to focus further on those strategies that helping them most.
Strengths- In this heading I would look at factors that has helped me achieves the purpose of
doing this dissertation.
Limitation of Dissertation - In this last subheading of the dissertation I would look at
difficulties or constraint that I faced in carryout this investigation on Asda pricing strategies.
5.2 Key insights from literature review
Cost leadership strategy was the main strategy for achieving market share came out from the
literature review because Asda overall pricing strategy aim is to be a cost leadership store it
involves a company using aspects of business such as economies of scale and discounts from
suppliers by buying in bulk to enable them to sell their products very cheaply to customers.
According to Ireland et al (2008) they describe cost leadership strategies as “an integrated set
of actions designed to produce or deliver good or service with features that are acceptable to
customers at the lowest cost, relative to that of competitive”. This overall pursuit of cost
leadership strategy has helped Asda great deal in employee pricing strategies which helped
Asda implemented the strategy to the fullest.
Amongst the pricing strategies they are implemented with products sold prime strategy that
Asda is implementing is penetration pricing throughout all of its chain stores in the UK.
Baker (2011) state penetration strategy is used when the firm decide to set the price below the
service’s value to the customer, thereby ensuring a large customer base. It is the trade-off of

48. higher revenue versus higher margins and can be a very effective strategy especially for new
entrants into particular markets. This strategy has been very successful in achieving the
purpose of attracting customers which is advent from (Fame data 2009) the turnover figures
of Asda reached almost 20 billion pound.
The literature review has demonstrated that supplier like Asda and consumer interact in the
market place to sell and buy good and services pricing is a critical element.
5.3 Key insights from questionnaire
Promotions are important to Asda’s customers in the questionnaire 35 of the respondent’s
state that they always lookout for promotion while 24 says they might purchase product from
promotions and 2 stated they never notice the promotions. This data illustrate that perception
of Asda customer attached high importance how they choose to do shopping as
overwhelming majority show their interest in purchasing products from promotion. This
promotion strategy is already being implemented by Asda throughout all its chain stores to
attract new customers to Asda.
Asda has great customer loyalty of the fifty eight people questioned on their shopping
supermarket preference overwhelming majority of forty respondents said they would shopped
at Asda for all of their groceries. This show Asda customers are really satisfied with prices
available to them in their shopping at Asda.
5.4 Recommendation
Asda uses several pricing strategy in various department to further enhance the market
growth consisting of following, Psychological Pricing, Product Bundle Pricing, and

49. Promotional Pricing. These pricing strategies implemented at Asda’s stores are very
successful amongst customers should continue with them.
Promotions are important to Asda’s customer in ensuring their loyalty and enhancing their
perception of Asda. This strategy in particular has led to Asda claiming to be a cheapest store
against it’s main Tesco because Asda stating guarantee to their customer “We'll guarantee
your comparable grocery shopping is 10% cheaper at ASDA or we'll give you the difference”
whereby it is claiming to cheapest store ASDA (2011).
5.5 Strengths
Having the availability to compare and contrast literature review with questionnaire enabled
me to develop deeper understanding and also has helped make judgement on my aim and
objective.
Second strength in this dissertation was the ability conduct Face to face questionnaire
because this has allowed respondents to ask questions which otherwise if remained
unanswered or not clarified would have led to obscure data been collected for analysis.
Last strength there was lot of data available on pricing strategies for Asda on electronic
resources. Which helped me develop in-depth understanding on the subject of aim been
carried out.
5.6 Limitation of Dissertation
There were only 58 people were questioned in the survey instead of 100 initially planned
because of time constraint and due to the incorporative attitudes of customers does shopping
at Asda as majority request to take part in the questionnaire simply refused it.

50. There were more males who responded to the questionnaire than females which may have
resulted in a bias towards a male point of view of the questionnaire.
Limited resources was the other important factor which influenced my research as one person
doing this questionnaire along regular classes forced me to only do my questionnaire in
Glasgow area of Asda’s. Having more resources at my disposal would have allowed me to be
more in depth to compare and contrast with Asda at other geographical locations.
Questionnaire that had been asked to Asda customers had to be limited, could only ask a
certain amount of questions. Since there was a risk customer might either not take part in the
survey or do not complete the full questionnaire leading in inconclusive results.
Couldn’t speak to people in charge of Asda’s pricing policies if had this opportunity this
could have gone in long way to understand the first philosophy of Asda.
Last limitation in doing this dissertation was the fact that each chapter of this dissertation had
to completed at certain time after which I would have to wait for feed back from lecturer in
order to proceed further with my dissertation that took significant time for this process to take
place and as result leaving less and less time for me to do other tasks.
5.7 Future Research
A investigation which compares and contrasts Asda’s pricing strategies and how this affects
their customers perceptions of them with other supermarkets pricing strategies and how this
affects their customers perceptions of them would provide a greater in depth analysis of these
issues.

51. Having a greater sample size and questioning customers from more than one Asda store
would have resulted in more accurate results. Research which looks at more of Asda’s
customers would allows greater understanding and better reflection on the issues.
Being able to ask more questions would also have resulted in more in depth analysis.
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Appendices
I am forth year student of Honour in Management Enterprise & Technology in the
Caledonian University. The following questionnaire is being done to assist in research
investigating the effectiveness of Asda in attracting new customers. All responses will be
kept confidential.
Please either tick or circle the appropriate box
1. What is your gender?
Male Female
2. What is your age group?
18.30 31-60 61 or over

56. 3. Are you solely or jointly responsible for your household’s main shopping for
groceries?
Yes..................................................................
No...................................................................
4. Which one of the following statements most closely describes how you shop for your
main grocery shopping?
I nearly always visit the same supermarket for my main grocery
shopping ............................................................................................................. 1
I usually use the same supermarket for my main grocery shopping but
occasionally I may use a different one ............................................................... 2
I tend to use two different supermarkets that I alternate between every
couple of shopping trips ..................................................................................... 3
I don’t really have a regular supermarket and tend to use whichever is
most convenient ................................................................................................. 4
Generally I rely very much on smaller local shops and use a
supermarket only occasionally ........................................................................... 5
5. Please tell us which supermarket or shop you use most frequently for your main grocery
shopping?
Asda.................................................................................. 1
Sainsbury ......................................................................... 2
Morrisons.......................................................................... 3
Tesco................................................................................. 4
Other – please
specify ...........................................................................................................................
6. Supermarkets can vary in the range of groceries and other goods stocked, some of which
are shown on this card. Which of the following categories of product, if any, would you
regard as particularly important to be able to purchase as part of a single visit to the
supermarket for your main grocery shopping?
Confectionery .................................................................. 1
Ready prepared meals .................................................... 2
Medicines......................................................................... 3
DIY products .................................................................... 4
Wines, spirits, beer etc..................................................... 5

57. Toiletries........................................................................... 6
Newspapers/magazines, books videos etc....................... 7
Clothing............................................................................ 8
None of of these...............................................................9
The list on this card shows various factors that might affect where people choose to do their
main grocery shopping. After looking at the list carefully, please tell us the main factor
influencing your decision about where to do your main grocery shopping.
7. What are other factors, if any, are important to you?
Ability to get most of the weekly shopping done under the
one roof..................................................................................................... 1
Availability of sufficient car parking space................................................ 2
Within easy and convenient reach of home .............................................3
Flexible opening hours.............................................................................. 4
Extra facilities such as petrol station, coffee shop, pharmacy
etc ........................................................................................................... 5
Prices charged for groceries ................................................................... 6
Proximity to other shops and/or recreational facilities .......................... 7
A large range of grocery products to choose from.................................. 8
Products I want always in stock .............................................................. 9
Shopping experience/style image of store............................................. 10
Other – please specify.......................................................................
.............................................................................................................
8. Can you think of any particular supermarket(s) that you would like to use regularly for
your main grocery shopping but can’t because the nearest store is too far away or
otherwise inconveniently located for you?
Yes........................................................................................................ 1
No......................................................................................................... 2
Don’t know .......................................................................................... 3
9. Thinking about supermarket special offers and promotions e.g., ‘two for the
price of one’ etc., which one of the following statements best describes your
behavior?
I always look out for special offers and promotions and
frequently take advantage of them..........................................................1
Although I might buy products featuring special promotions

58. and offers, I don’t deliberately seek them out ........................................2
I never really notice supermarket special offers and promotions ...........3
10. Which of the following types of promotions or special offers do you frequently look out
for?
Two for the price of one etc .............................................................. 1
Buy one item, get a different one free .............................................. 2
Coupons offering price reductions..................................................... 3
Price refund promise (if product found cheaper elsewhere)............. 4
Free entry to competitions ................................................................ 5
Other – please specify ........................................................................ 6
None of these......................................................................................7
Thank you for the participation