An investigative study into consumer choice. a case study analysis using tesco and ikea

4,241 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
4,241
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
104
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

An investigative study into consumer choice. a case study analysis using tesco and ikea

  1. 1. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Course Title: Business & Management (Marketing) Degree Title: Bsc. (Hons)Strategic MarketingResearch ProjectAn Investigative study into consumerchoice. A case study analysis usingTesco and IKEA
  2. 2. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 AcknowledgmentSeveral people have been extremely instrumental in assisting me to complete thisstrategic marketing project. By no order of significant, I will like to extend my expressedthanks to my immediate family, in particular Selina, for her love, encouragement,understanding and unwavering support over the last (3) three months. To Patricia, - forthose cups of tea and Gizmo (my dog who kept me company at nights). To Hanisha,Areah, Chrissy, Wendy and Margaret who constantly called or emailed to enquire howthe project is coming along, thanks. All my close friends who helped kept each othersane, Alesia, Dhee, Seto, Ali, Carl, Ronny, Ridhi, and Mazzi, “the project would nothave been completed without you guys”.Most importantly, the academic staffs at Brunel’s Business school, Prof. T C Melewar,for his concise but focus chats, my personal tutor Dr. Cohen for reminding me that tosuccess “you need to give your all, then give it again”, Dr. King, for allowing me todrop in on short notices, but providing valuable support and critic to my work, PhDStudent Tayo, and most of all my supervisor, Dr. Charles Dennis for direction,counselling and support to which help contribute to the accomplishment of this project.And finally, to the Almighty, for granting me the strength, wisdom and will-power tostart and finish this exciting chapter of my academic career. Thanks 2|Page
  3. 3. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 AbstractChoice has transcended into society given the finite level of resources that abound tosatisfy human infinite desires. Over the last decade increases in choice have bombardedconsumers, no more so, that in the retailer sector. This research seeks to explore thebehaviour of individuals who patronised store which offers extensive choice, in order tofacilitate a satisfactory response. It utilises the Theory of Planned Behaviour (TpB),through the tools of structured questionnaires with 77 intercepted consumer and 26 focusgroup participants. The research obtained via the questionnaire indicates the 51% of theconsumers who planned to visit Tesco at least 3 times in the coming week also believethat Tesco offers extensive choice and is equally satisfied by its offering. This was thereverse case with IKEA where 46% believe that IKEA offers extensive range by only23% plan to visit IKEA at least 4 times in the forthcoming 12 month. Correlationsbetween variables indicated that strong relationships exist between subjective norms andintention, and relatively strong relationships between attitude towards stores which offersextensive choice and intended behaviour to patronise these stores. It also highlights theneed for retailers to be aware of this significant relationship in their marketing strategyand its impact on Viral Marketing activities. 3|Page
  4. 4. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Contents Acknowledgment ...................................................................................................................2 Abstract .................................................................................................................................3 Contents .................................................................................................................................4 List Of Tables & Figures.......................................................................................................6 CHAPTER 1 – INTRODUCTION 1.1 Introduction .....................................................................................................................7 1.2 Rationale for the research topic .....................................................................................7 1.3 Project Synopsis ..............................................................................................................7 CHAPTER 2 – REVIEW OF LITERATURE 2.1 Introduction to the Research Phenomena ...................................................................10 2.2 Arguments for extensive Consumer Choice ................................................................11 2.3 Arguments against extensive Consumer Choice..........................................................13 2.4 Consumer Satisfaction .................................................................................................14 2.5 Theoretical Framework ................................................................................................17 2.4.1.................................................The Theory of Planned Behaviour ..............................................................................................................18 2.4.2........................................................................Satisfaction Theory ..............................................................................................................21 2.6 Gap in Literature ..........................................................................................................24 CHAPTER 3 – RESEARCH METHODOLOGY 3.1 Introduction ...................................................................................................................25 3.2 Research Approach .......................................................................................................26 3.3 Justification of Case Study approach ..........................................................................28 3.4 Research Objectives/Aims ............................................................................................29 3.4.1 Hypothesis Construction ................................................................................30 3.5 Data Collecting Tool .....................................................................................................31 3.5.1 Secondary Data ..............................................................................................32 3.5.2 Primary Data ..............................................................................33 3.6 Tools of Primary Data Collection ................................................................................34 3.6.1 Sampling ....................................................................................34 3.6.2 Sample selection and Framing...................................................35 3.6.3 Sample Area................................................................................36 3.6.4 Sample Design............................................................................36 3.6.5 Justification of Sampling............................................................37 3.6.6 Sample Size.................................................................................37 4|Page
  5. 5. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.6.7 Pilot Study...................................................................................38 3.7 Questionnaires ...............................................................................................................40 3.7.1 Justification of Questionnaires.......................................................................41 3.8 Focus Groups..................................................................................................................42 3.9 Observation....................................................................................................................43 3.10 Data Validity & Reliability..........................................................................................44 3.11 Limitation of the Data Collection Process..................................................................45 3.12 Problems.......................................................................................................................46 3.13 Ethical Consideration and Good Research Practice..................................................47 3.14 Conclusion....................................................................................................................48 CHAPTER 4 – RESEARCH COMPANIES PROFILE 4.1 Corporate Overview TESCO........................................................................................49 4.2 Performance Overview..................................................................................................50 4.3 Corporate Overview IKEA............................................................................................52 4.4 Performance Overview..................................................................................................53 CHAPTER 5 – RESEARCH FINDINGS 5.1 Introduction....................................................................................................................54 5.2 General Findings............................................................................................................55 5.3 Findings on TESCO.......................................................................................................58 5.4 Findings on IKEA..........................................................................................................61 5.5 Statistical Findings.........................................................................................................63 5.6 Internal Consistency, Scale Reliability and Regression Analysis...............................64 5.7 Conclusion......................................................................................................................68 CHAPTER 6 – ANALYSIS AND DISCUSSION 6.1 Discussion and Qualitative Findings.............................................................................69 6.1.1 Intention & Attitude ......................................................................................70 6.1.2 Intention and Subjective Norms.....................................................................72 6.1.3 Intention Past Experience & Perceived Behavioural Control ......................73 6.1.4 Intention & Satisfaction..................................................................................75 6.2 Conclusion......................................................................................................................76 References Appendix A Appendix B 5|Page
  6. 6. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008LIST OF TABLESTABLE 3.1 – HYPOTHESIS CONSTRUCTION 30TABLE 3.2 – DATA COLLECTION INSTRUMENTS USED IN RESEARCH 37TABLE 3.3 – ILLUSTRATES THE PERIOD USED FOR PILOT TESTING 39TABLE 3.4 – BENEFITS GAIN FROM PILOT TESTING 40TABLE 3.5 - QUESTIONNAIRE SAMPLE COLLECTION - (AREA & RESPONSES) 42TABLE 5.4 – DESCRIPTIVE STATISTICS FOR AGGREGATE MEASURES 63TABLE 5.5 – RELIABILITY STATISTICS 64TABLE 5.6 (A) – CORRELATIONS MEASURE BETWEEN VARIABLE OF THE TPB MODEL 65TABLE 5.3 (B) – CORRELATIONS MATRIX AMONGST VARIABLE OF THE TPB MODEL 66TABLE 5.7 – COMPOUND VARIABLES AND THEIR ASSOCIATION WITH INTENTION TO PATRONISE TESCO & IKEA EXTENSIVE RANGE 67TABLE 5.8 – THE COEFFICIENT BETA AND SIG. IN RELATIONS TO THE HYPOTHESES 68LIST OF FIGURESFIGURE 2.1 – STRUCTURE OF CONSUMER SATISFACTION RESPONSE 15FIGURE 2.2 – COMPOSITION OF THE CONSUMER SATISFACTION RESPONSE 15FIGURE 2.3 – THEORY OF PLANNED BEHAVIOUR 19FIGURE 2.4 – SCHEMATIC REPRESENTATION OF TPB AS IT RELATES TO TESCO AND IKEA 22FIGURE 3.1 – DIAGRAMMATIC REPRESENTATION OF THE RESEARCH APPROACH 27FIGURE 3.2 – TYPE OF SECONDARY DATA USED IN THIS RESEARCH 32FIGURE 3.3 – SAMPLE AREA – PICTOGRAPHICALLY REPRESENTED 36FIG 4.1.1 – TESCO OPERATION BY GEOGRAPHICAL BREAK-DOWN 2001 – 2006 50FIG 4.1.2 – TESCO EMPLOYMENT STATISTICS 1996 – 2006 50FIG 4.1.3 – TESCO MARKET SHARE STATISTICS 2001 – 2006 51FIG 4.2.1 – IKEA AB REVENUE BY WORLD SALES REGIONS – 2007 53FIG 4.2.2 – MARKET SHARES OF MAJOR PLAYERS IN THE UK HOUSEWARES AND HOME FURNISHING MARKET – 2007 53FIGURE 5.1 – AGE DISTRIBUTION OF THE SAMPLED POPULATION 56FIGURE 5.2: OCCUPATION DISTRIBUTION OF RESPONDENTS 56FIGURE 5.3 – PROFESSION DISTRIBUTION OF THE SAMPLED POPULATION 57FIGURE 5.4 (A) – RESPONDENTS EVALUATION OF TESCO’S VISITS AND SATISFACTION 59FIGURE 5.4 (B) – RESPONDENTS EVALUATION OF TESCO’S VISITS AND SATISFACTION 60 6|Page
  7. 7. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008FIGURE 5.5 (A) – RESPONDENTS EVALUATION OF IKEA’S VISITS AND SATISFACTION 62FIGURE 5.5 (B) – RESPONDENTS EVALUATION OF IKEA’S VISITS AND SATISFACTION 63FIG 6.1 – THE THEORY OF PLANNED BEHAVIOUR EXPLAINED IN TERMS OF ITEMS CORRELATION 69 Chapter 1 INTRODUCTION1.1 INTRODUCTION The purpose of this chapter is to introduce the phenomena of an extension of consumer choice by Tesco and IKEA upon satisfactory behavioural response by their customers. It will describe the rationale behind the decision to pursue this research topic, and a review of literature on the subject.1.2 RATIONALE FOR THE RESEARCH TOPICAn article in the Times online, July 4th, 2007 issue, was citied as thought-provoking. Itidentified the decision to choose a basic item such as milk of the shelf of Tesco as “hell”.It contended that consumers face on average over 30,000 products on any single visit totheir local supermarket. 7|Page
  8. 8. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008This problem of choice was not an isolated case. It also affected the author some weekslater when bombarded by the decision as to which cheese to purchase for his Wednesdayevening jacket potato and cheese dinner.Many have questioned the optimum choice level society should enjoy (Iyenger &Lepper, 2000), whilst, others have boldly discredited choice as inadequate anddestructive (Schwartz, 2004).Therefore, research was needed to address such curiosity as to why consumers patronisedstores which offer enormous levels of choice, and how satisfied they feel by suchoccurrence.Based on the initial observations, a number of questions began to emerge, namely;1.3 PROJECT SYNOPSIS 8|Page
  9. 9. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Chapter 1 – IntroductionThis chapter set the scene of the research, it introduced the research problem. Identify therationale behind the decision to pursue this topic, supported by empirical evidence. Itconcludes with the searching questions on extensive choice, to be answered by theprojectChapter 2 – Literary ReviewThis chapter begins with the arguments for and against extensive choice. It develops anunderstanding of consumer satisfaction. Then, continues with the development of thetheoretical framework for the research and concludes with the identification of gap inresearch.Chapter 3 – MethodologyIt starts with a description of the research approach, justification for the use of casestudy, states the research objectives and the tools used in carrying out the research. Itconcludes with a detailed explanation of the limitations and problems encountered fromthe research and issues surrounding ethicsChapter 4 – Company ReviewProvides a simplified overview of the companies featured in the case study.Chapter 5 – Research FindingsThis chapter presents and explains the data found in the research, it identifies generaltrends in the data, specify findings relating to the two companies are detailed. Thenconcludes by exploring the validity and reliability of the data gatheredChapter 6 – Analysis and DiscussionIn-depth discussions on the research findings in respect to the literature review andresearch objectives are put forward. It covers all variables relating to the theoreticalframework and its latent implication on marketing 9|Page
  10. 10. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Chapter 2 REVIEW OF LITERATURE2.1 Introduction to the research phenomenaIt is a common notion to assume “more is better”. The evolution of the concept of choicehas transcended society given the finite level of resources that abound to satisfy ourinfinite desires.The last seven decades have seen a progressive increase in consumer choosing. Added tothat, the growing multicultural population of Britain all influence the diversity of goodsfound on supermarkets’ shelves. Marketers and business organisations have alwaysviewed this expansion as being a direct response to consumers’ demand, and as a strategytowards business longevity. 10 | P a g e
  11. 11. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008However, has such increases in product choice excites and stimulates our senses toproduce positive responses? Alternatively, has it overload our reasoning, processing,enhancing and assimilating faculties to provide null and dissatisfying responses?2.2 Arguments for extensive choiceExtensive choice had been explained in terms of economics, and had been widelyrepresented in marketing as consumer pull, and corporate image building strategies(Bettman and Park 1980; Broniarczyk et al., 1998; Chernev, 2006; Dennis et al.,2005; Hoch et al., 1999(A&B); Kahn et al., 1999; Oppewal et al., 2005). • Consumer preference for large assortment refer to the increase cost efficiency of time and transportation associated with one-stop shopping and the store objectives for providing assortment depth and breath (Betancourt et al., 1990). Based on the naïve and uninformed construct of consumer knowledge they may infer that a larger assortment is more likely to contain an alternative that can fulfil their purchase goal and increase the probability of a perfect match in choice set, than a small assortment (Chernev, 2006; Oppewal et al., 2005). 11 | P a g e
  12. 12. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 • Consumers’ evaluate large assortments of alternatives as a preventative measure to reduce uncertainty, disappointment and increase flexibility. (Bettman et al., 1980; Kahn et al., 1991). Consumers are fairly certain of their preference in the present, but influenced by controlled beliefs and social powers they become less certain of the future. Thus, a larger assortment acts as a cushion to absorb any drastic shift in future preference.Examination of the relevant literature on choice and its effects on consumer behaviourare notably positive. A large assortment size leads to positive benefits to the consumer(Oppewal et al., 2005; Chernev 2006; Hoch et al., 1999-A). Moreover, people like tohave choice, and the ability to choose from a wide range can enhance the enjoyment ofshopping and fulfil non-purchase desires (Dennis et al., 2005; Koelemeijer et al., 2005).In many instances, situations of more choice are preferred, and valued, over situationwith less choice. As such, consumers will naturally opt to choose a store that is perceivedto offer more variety over ones that offers less. Choice is valued and as such, Oppewal etal., (2005), argues that stores which offer greater variety can be translated into positivestore image.Consumer preference for large assortments refers to the situational dependency ofconsumer preferences. Therefore, given that consumer preferences are not stable butdynamic by construct, and fashioned by specific consumption goals. A larger choicerange will be influential during decision-making.It provides an opportunity to evaluate alternatives thus, reduced uncertainty. Moreover, itis likely to contain alternative that smaller choice range cannot fulfil. Consequently,allowing greater flexibility to accommodate varying preferences over person and time(Kahn and Lehmann, 1991, Oppewal et al., 2005). 12 | P a g e
  13. 13. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Summary of the arguments against extensive choice2.3 Arguments against extensive choiceOn the contrary, as choice alternatives increases, and their relative attractiveness rises,individuals experience conflict. Due largely to either cognitive overload or limitedalternative searching skill, and, as a result, tends to defer decision, search newalternatives, choose the default option or simply opt not to choose (Lepper et al., 2000,Garbarino et al., 1997). Excess choice paralyses rather than liberate.Larger choice over stimulate the senses, increase complexity in the decision-makingprocess and create a de-motivating environment for choosing (Berlyne, 1960). Varietyusually exerts a positive influence on choice, so much so, that lots of variety may lead toincreased confusion and transaction costs (Hoch et al., 1999).The decision to choose is mind baffling. Increasing the size of choice set can haveadverse consequence on product selection, given the demands placed on individual 13 | P a g e
  14. 14. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008cognitive resources (Olson et al., 2005) and, their ability to evaluate the attractiveness ofalternatives (Chernev 2006; Huffman & Khan 1998, Garbarino et al., 1997).In selecting alternatives that requires more effort to process their attributes, consumers,which have limited cognitive resources, and are cognitive misers, will need to dispersemore cognitive resources towards product evaluation, thus, generating negative affectiveresponse to the product (Olson et al., 2005, Garbarino et al., 1997). Instead, theyreplace their cognitive disbursement with decision heuristic.However, heuristic frequently result in a less accurate decision and greater choicenegative consequences (Olson et al., 2005, Garbarino et al., 1997). Hence, consumersare willing to forgo product benefits to conserve cognitive effort. Moreover, alternativeswhich are more effortful to process are less preferred to alternatives that are not(Garbarino et al., 1997).2.4 Consumer SatisfactionConsumers’ satisfaction has been a priority of many businesses, and has it roots in TotalQuality Management movement. A review of literature revealed over 40 differentsatisfaction scales had been used in various settings, ranging from airline travel to zoovisits (Nadeem, 2007, Vavra, 1997).Vavra (1997), defines customer satisfaction along two trajectories, as an outcome or as aprocess. “The outcome characterise satisfaction as the end-state resulting from theconsumption experience”, (pg. 4) whilst, “a process emphasises the perceptual,evaluative and psychological processes that contribute to satisfaction”, (pg. 4).Therefore, the consumer is thought to be satisfied when perceived fair treatment arisingfrom their subjective judgement of observed attribute performance and cross reference 14 | P a g e
  15. 15. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008with the psychological fulfilment response they make when assessing performance(Oliver, 1993). Hence, satisfaction is retrospective and requires the mutual adjustment ofexperiences and recalled expectations, influenced by the present environment and otherelements of evaluation (Oppewal et al., 2005, Nadeem, 2007).Satisfaction is framed by two dimensions of the consumer; the affective state – whichrespond to joy or disgust, and the cognitive state - which evaluates post-purchaseprocess and store stimuli. Thus, “satisfaction is a function of cognition, affect and directexperience” (Oliver, 1993. Pg. 421), wherein heuristic are used in trial and error scenarioof product search.Furthermore, satisfaction is a learnt process, shaped by past purchase experience(Garbarino et al., 1997, Nadeem, 2007), product search skills (Olsen et al., 2005,Bettman and Park, 1980), and cross-over influences (Oliver, 1993). Figure 2.1 – Structure of Consumer Satisfaction response Adapted from Oliver, (1993) “Cognitive, affective and attribute bases of the satisfaction response”. 15 | P a g e
  16. 16. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Figure 2.2 – Composition of the Consumer Satisfaction response Adapted from Oliver, (1993) “Cognitive, affective and attribute bases of the satisfaction response”.Marketer has and can shape the level of satisfactory response the consumer enjoy from avisit to their store. This draws on the locus-of-causality literature in attribution theory,which identify dimension of satisfaction origin (Oliver, 1993). Therefore, the display ofextensive product ranges influences the choice task and the level of attributes consideredin attaining a final decision and ultimately satisfaction response (Nadeem, 2007).As depicted in figure 2.2 above, consumer can gain direct satisfaction from aspect of thestore image (Chernev, 2006). Whilst, others rely on their cognitive process to establish asatisfactory response (Oliver, 1993, Bettman et al., 1980). Yet, many rely on theiraffective responses and social pressures to instigate satisfactory responses (Garbarino etal., 1997). Albeit, consumer seek to maximise positive affective state and maximisenegative states when maximising their satisfaction. 16 | P a g e
  17. 17. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20082.5 THEORETIC FRAMEWORKMany studies seek to provide insight into consumers’ intention and behavioural responseto predict their level of satisfaction. The Mood affective responses explore the relativityamong consumer mood and information processing, differences give rise to process-induce affects (Garbarino et al., 1997). The process-induce affects (Garbarino et al.,1997) evaluate the relationship among consumers’ task skill, product attribute andcognitive resources in their choice evaluation.Although such theories provide an understanding of alternative product evaluation orcomparison, they do not explain how such comparison are translated into buying decisionor predicted behavioural intentions (Foxall et al., 1998). To account for this process, anddevelop a comprehensive theory of consumer behaviour this research turn to the Theoryof Planned Behaviour (TpB) (Ajzen, 2006) and draw on supportive theoreticalunderstand and application of the aforementioned theories. Example the subjectivejudgement arising from observation, referent powers, and control beliefs, regardingchoice evaluation to initiate satisfaction (Oliver, 1993; Garbarino et al., 1997), and 17 | P a g e
  18. 18. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008prior knowledge structure together with information processing heuristic employed inevaluating satisfaction (Bettman et al., 1980, Nadeem, 2007). 2.5.1 THEORY OF PLANNED BEHAVIOURThis theory formalised that consumers holds various belief about stores of various size intheir evaluation of choice alternatives, satisfaction, and concept of attitude. Hence,guided by such beliefs, and influences of references, individual patronised such stores.The TpB forms the overarching theoretical framework for this research offering a clearlydefined structure into variables on human behaviour (Ajzen, 2006). Furthermore, areview of literature indicates that in recent years the TpB model has been applied to awide variety of research topics (eg: Deshopping behaviour; King et al., 2003, Greenmarketing; East et al., 1999). Moreover, Oliver (1993) adaptation of the theory ofreasoned action attitude model, was instrumental in providing support for and integratedmodel of customer satisfaction (Nadeem, 2007).The TpB is itself an extension of the theory of reasoned action (TRA) (East, 1997), itassumes that consumer consciously consider the consequences of the alternativebehaviour under consideration and choose the one that leads to the most desirableconsequence (Olson et al., 2005). Hence, the result of the reasoned process leads to 18 | P a g e
  19. 19. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008engagement in a selected behaviour. The theory incorporates both cognitive and affectivecomponents (Foxall et al., 1998). Moreover, TpB model incorporates a furtherdeterminant of intention called “perceived behavioural control” (East, 1997)According to the TpB, human actions are guided by belief about the likely outcomes oftheir behaviour (Behavioural belief), the perceived thinking of others (Normativebeliefs) and the presence of factors that may facilitate or impede performance of thebehaviour (Control belief) (Ajzen, 2006).The respective aggregates are symbolically represented in Figure 2.3, where behaviouralbelief predict “attitude toward that behaviour”(AB), normative belief result in perceivedsocial pressure and attitudinal influences or “subjective norm”(SN), and, control beliefperpetuates “perceived behavioural control”(PBC). The combination of these distinctaggregates leads to behavioural intention, which is ones attitude to engage in suchbehaviour. Moreover, under the right condition will approximate behaviour itself(Foxall, 1998, Ajzen, 2006). 19 | P a g e
  20. 20. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Therefore, if consumers hold salient believes, such as, shopping at a retail unit as that ofTesco for food items, or Ikea for durable goods, (which both offers extensive choice) theywill achieve all the items they are looking for at one location. Then, they are more likelyto patronise these stores. If the outcome belief is favourable, then the attitude towards thebehaviour will also be favourable, resulting in the action being taken (East, 1997, Ajzen,2006). 20 | P a g e
  21. 21. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Therefore, subjective norms are influence by the likelihood of the individual to upholdtheir normative belief and the desire to comply with the views of the referent(s). Thedegree and nature of reference influence on behaviour is segregated and linked tosocioeconomic hierarchy.Moreover, if reference has strong ties, as that of the Asian communities, then suchbehaviour will become a permanent feature of their decision making process. Groupinteraction is seen as a major determinant in attitude and satisfaction, by affects membersaspiration levels and producing element of satisfaction or dissatisfaction (Kollat et al.,1970).Behavioural Intention (BI) is the immediate antecedent of behaviour, it connect self toa future action in the evolution of the choice process (East, 1997; Ajzen, 2006). Itcombines individuals’ belief about the consequences of different actions and theresources capable of performing the various actions, then selecting from the variedalternatives. 21 | P a g e
  22. 22. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Despite the exclusion of “intention” on the ground of insufficient evidence to justify it,and the intricacy of limiting volitional control (King et al., 2007, Ajzen, 2006), it provesa useful variable to this research and is included. Moreover, it has proved relevant toother research (East et al., 1999, King et al., 2003), intention therefore, serves as aproxy for actual control, thus, predicting behaviour (Foxall, 1998). 22 | P a g e
  23. 23. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 2.5.2 SATISFACTION THEORYThe development of satisfaction theories have being studied from two perspectives;approaching the study of satisfaction through product performance (Cardozo, 1965), or amodel of its own construct (Oliver, 1980). The work of Oliver (1980) will be used as thetheoretical foundation.Oliver initiated a focus on the antecedent of satisfaction as the expectancy-disconfirmation sequence. He adapted earlier work of Fishbein expectancy theoreticalmodels to suggest that expectation of standard of performance is a frame of reference forcustomers’ evaluative judgement (Vavra, 1997, Nadeem, 2007). Expectation orperceived control belief serve as baseline for satisfaction. Hence, positive or negativeconfirmation to that baseline serves as proxy to consumer satisfaction. 23 | P a g e
  24. 24. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20082.6 GAP IN LITERATUREDespite the recognition that variety has positive influence on store choice, (Broniarczyket al., 1998, Hoch et al., 1999, Oppewal et al., 2005), there have been little research intounderstanding the impact of variety on consumer satisfaction and other factors thatinfluence store choice, albeit jointed or separated from extensive choice analysis.The Broniarczyk et al., study found relationship that variety perception influence floorspace devoted to various categories, which seek to define product depth and range.However, fail to measure customer satisfaction or external influences (such as;consumer attitudes, beliefs and resources) from these variables.The Hoch et al., study went beyond Broniarczyk and develop an understanding ofvariety in terms of the product information structure, product attribute levels anddifferences, using product organisation, and shelf positioning to gauge consumers’intention to purchase. However, using consumer behaviour models, failed to adequatelymeasure consumer’s actual behaviour and latent satisfaction response.Oppewal et al., research contended that assortment size affect store’s evaluation and thepresence of an extensive range as catalyse to patronage. Yet, it refrain from addressinghow these influences consumer attitude towards the store, factors of social pressure and 24 | P a g e
  25. 25. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008availability of resources to actualised store visits, and an adequate measure of assortmentsize on consumer satisfaction.All these research taken together contend that in the presence of uncertainty, choice fromlarger assortment can potentially lead to lower choice probability and weaker preferencefor selective alternatives. However, they all remain inconsistent with the notion thatconsumers are best served with larger choice and are more satisfied from patronising ashop which offers extensive range. In the light of current findings, research must becommissioned to address these areas. Chapter 3 RESEARCH METHODOLOGY 3.1 INTRODUCTIONThis chapter will outline the research approach developed at answering the researchquestion as far as practicable. It outlines the structure and nature of the research workconducted, together with the frameworks developed at addressing the research question.It continues with the development of the research aims, construction of hypotheses, andfollows-through with the explanation of sampling methods and techniques. It concludeswith an outline of ethical considerations and identification of the limitations encounteredduring the data collection process. 25 | P a g e
  26. 26. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.2 RESEARCH APPROACHThe research question on consumer choice offering bases on the TpB model was studiedby qualitative techniques focused on Tesco’s and Ikea’s store offering and how theyaffect behaviour. Key social construct such as behavioural variables must draw uponobservable responses (Ajzen, 2006).A deductive approach is used in this research (Saunders et al., 2000), which combinedthree sub-approaches to problem investigation. Birk & Malhotra (2003) admonish that acombined technique provides greater power in understanding and measuring consumerbehaviour. Moreover, in consumer behaviour studies, “it is often advantageous to do so”(Saunders et al., 2000. Pg.88) since it is a complex phenomenon (Olson et al., 2005).Hence, a combine approach is adapted. • Exploratory research This approach is used at the introductory stages. “Discovering the general nature of the problem and variable that relates to it” (Tull et al., 1993 pg.43). 26 | P a g e
  27. 27. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 • Quasi-descriptive/conclusive As the research progress, the investigating method evolved (Tull et al., 1993). This method provided a near accurate description of the investigating phenomena drew upon theories, researches, surveys from pass analysis and integrated a representative sample into the research to be tested (Malhotra & Birk, 2003). 27 | P a g e
  28. 28. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Figure 3.1 – Diagrammatic representation of the Research ApproachSource:This approach equipped the research with autonomy for the development of a logical andscientific form of investigation (Robert Yin, 1993, Saunders et al., 2000).Quantitative analysis were used as the preparatory work (East, 1997), where results fromquestionnaire helped to identify consumers’ problem solving approach in the face ofextensive consideration set, and implications relating to consumers’ satisfaction.Pertinent analysis were filtered into the focus group session for discussion, whilst,generic consumer disposition were sought after during the observation exercises. 3.3 JUSTIFICATION OF CASE STUDY APPROACH 28 | P a g e
  29. 29. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.4 RESEARCH OBJECTIVES/AIMSFollowing the literature search, specific questions are formulated to address the researchproblem. From the general framework highlighted by East, (1997) Ajzen (2006),consumer satisfaction is the superseding outcome behaviour from their considerationconstruct and influenced by Tesco and IKEA stores, given their extensive choice.This study aimed at understanding the dimension of consumer attitudinal behaviour thatinfluences intention to patronise stores which offers extensive choice. More specifically,the research follows the objectives: 29 | P a g e
  30. 30. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.4.1 Hypothesis constructionHypothesis constructionH1 Attitudes and beliefs towards Tesco and IKEA extensive range will predict satisfactory behaviour responseH2 Consumers’ perception of the extent to which others evaluate Tesco and Ikea extensive choice range will significantly predict their satisfactory response from shopping at these storesH3 Consumers’ available resources to patronise a Tesco or IKEA will significantly predict their level of satisfaction 30 | P a g e
  31. 31. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008H4 Consumers’ perception of satisfaction is shaped by past experiences together with the in-store atmosphere, in which their shopping is conductedH5 Enlarge choice set has positive implications on consumers’ satisfaction responseTable 3.1 – Hypothesis Construction 3.5 DATA COLLECTING TOOLSTwo categorisations of data were identified: Secondary Data Primary DataSecondary data comprise of raw and published summaries that are used subsequently byother researcher (Malhotra & Birks, 2003). It provided a useful source from which theresearch began. 31 | P a g e
  32. 32. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Primary data on the other hand, is data developed by the researcher specifically for theresearch project (Parasuraman, 1991). Its use is advocated at the introductory stage as adescriptive design (Malhotra & Birk, 2003). However, such application is not adheredto in this research.Nevertheless, most research questions are answered using some combination ofsecondary and primary data (Saunders et al., 2003), which is the method adapted here. 3.5.1 Secondary DataThe classification of secondary data used during the research is detailed in (Figure 3.1)below. This data was used to gain insight into the nature and extent of consumer choiceoffering, the extent of work carried out on the phenomena and the availability of data onthe phenomena, in order to commence research. Moreover, “examination of secondarydata is a prerequisite to the collection of primary data” (Malhotra & Birks, 2003, pg.87).Additionally, it was used to make comparison amongst research findings, and triangulatethe present research (Saunders et al., 2003), thus, providing the longitudinal element toa time-limited research. 32 | P a g e
  33. 33. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Figure: 3.2 - Type of secondary data used in this researchSource: Saunders et al., (2003. Pg. 190) 3.5.2 Primary DataMalhotra & Birks (2003) argues that qualitative data be “used in conjunction withquantitative approaches where illumination of statistical findings is needed” (pg. 131).Moreover, since consumer behaviour is an overt response, and overt behaviours arecomplex (Olson et al., 2005) qualitative research “seek to encapsulate the behaviour andexperience of the respondents in their own context, aiding a holistic outlook on thephenomena” (Malhotra & Birks, 2003. Pg. 133 & 159). 33 | P a g e
  34. 34. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.6 TOOLS OF PRIMARY DATA COLLECTION Primary data collection methods 34 | P a g e
  35. 35. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.6.1 SamplingThe process whereby the research attempt to learn about the larger population, bylooking at a small part (Worcester et al., 1988, Oppenheim, 2001) is qualified assampling. Sampling is an important part of consumer behavioural research, and as suchwas an integral part of this research. 3.6.2 Sample Selection and Framing 35 | P a g e
  36. 36. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Selection of the sample respondents appears problematic. Respondent could have beenachieved by generating email to all registered undergraduate students enrolled at BrunelUniversity. This would provide many cases and a representative sample of the populationunder study. Such an attempt at random sampling would, though, have resulted in under-representing the patrons of Tesco and IKEA. Therefore, the research resort to a modifiedsampling method called cluster sampling (Oppenheim, 2001) in which samples werecollected from the sample areas by directly intercepting shoppers which had directconnection with the researching variables. Such sampling method proved effective byDennis et al., (2005).Clarification of the framework used to recruit samples at different stages in the research,are enlarged upon at the relevant data collection tool section underneath. 3.6.3 Sample Area 36 | P a g e
  37. 37. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 • Tesco Metro Plc – Ealing Broadway, and Greenford Broadway • Tesco Express Plc – West Ealing • IKEA – Brent Cross North London • Brunel University CampusFigure 3.3 Sample Area - pictographically representedSource: Author - Constructed using ‘Google Earth’ – Licensed software 3.6.4 Sample DesignThe study uses a convenience sampling design in recruiting samples; the reader isdirected to Malhotra & Birks, (2003. Pg. 348), Saunders et al., (2003. Pg 96) andOppenheim (2001. Pg. 24) for further justification. However, at later research stages,respondents to the initial questionnaire sample were recruited to obtain sample for thefocus groups sessions, and participation in the observation exercise, further explanationcan be found in, focus group design, Appendix….and observation design, Appendix….. 3.6.5 Justification of Sampling 37 | P a g e
  38. 38. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008The above sample areas were specifically chosen since they are host to the dependentvariable and directly relates to the measuring behaviour. With the exception of BrunelUniversity, they all produce respondents who have visited, or proximate to visit thestores being researched. Additionally, a compromise had be strike between theoreticalrequirements and practical suitability in the research. Thus, in all cases common-senseprevailed (Oppenheim, 2001) thereby, directing the sample to be taken from thelocations where the cases are being studied. Moreover, issues surrounding time, ease ofmeasurement, access, and corporation was considered (Malhotra & Birks, 2003). 3.6.6 Sample SizeThe size of the sample fluctuates depending on the method of investigation being used;the following table represents the participants to various data collecting methods.Table 3.2 – Data Collection Instruments Used in Research 3.6.7 Pilot Study 38 | P a g e
  39. 39. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008Ajzen (2006) warns that to elicit outcomes variables for the TpB model, pilot study mustbe carried out to identify various measures of consumer consideration (attitude,subjective norms and perceived control) which affects behaviour. Moreover,Oppenheim (2001) reminds us that;Pilot study work was used within the context of exploratory research, since the datagather lack precision (Zikmund, 1999). Furthermore, pilot test enabled futurerespondents to answer the questions without many problems and create relativesimplicity in recording data, thus improving data integrity.Despite this research being conducted on a small scale, Saunder et al., (2003) advisedthat “it is still important to pilot test your questionnaire” (pg. 308). As part of the pilottesting the outline referred to in Saunders et al., (2003, Pg. 309) was adhered to. • How long the questionnaire took to complete • Clarity of instructions and questions ambiguity • Questions respondents felt uneasy to answer, and question omission • Questionnaire format and other commentsAdapted: Saunders et al., (2003)Two pilot studies were conducted, the first pilot study consisted of ten (10) openedanswer questions distributed to 60 students before various lectures and the responseswere collected at the end of lectures. 39 | P a g e
  40. 40. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008The study was aimed at identifying accessible behavioural, normative and control beliefs.The responses were used in the questionnaire to construct a list of modal salient beliefsthat is commonly held in the research population. The table below illustrates pilot testingperiods.Table 3.3 – Illustrates the period used for pilot testingThe second pilot study consisted of the originally designed questionnaire, whichconsisted of seventy-five (75) questions, with most rating scales being seven (7) interval-points scales. 40 | P a g e
  41. 41. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008The responses from this second testing enabled the restructuring of the questions format,the re-scales of the interval points systems, which were revised to mostly to five (5)points interval-scales, and the deleting of sixteen (16) questions, to produce the final setof questions used in the study.The second pilot study appeared helpful byIncreasing the questionnaire completion levels and response accuracyReducing the time for questionnaire completionEnabling simplicity of rating by the respondentsReduce confusing during completionCreating a more holistic and accurate representation of the respondents answers Table 3.4 – Benefits gain from Pilot Testing 3.7 QUESTIONNAIRESThe term Questionnaire has been used to mean many different things (Oppenheim,2001, Zikmund 1999), for the purpose of this study is it used strictly to refer tostructured, self-administered questions which adapt the use of various measuring tools.It is the main data collection tool used in this research, geared towards obtainingappropriate measurable outcome based on the research aim (Oppenheim, 2001), thus,“comprising of a comprehensive listing of every variable to be measured” (Oppenheim,2001. Pg. 101). The questionnaire followed the design recommended by East (1997) andAjzen (2006), (details of the design appear in appendix A) and the guideline outline byMalhotra & Birk, (2003. Pg. 335). It was tailored for use, based on the interceptionsampling approach used. 3.7.1 Justification of questionnaires 41 | P a g e
  42. 42. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008The sample of shoppers obtained from the shopping centre interception method ispresented in the Table (3.5) below. It provides details of when and where samples weretaken from and how many samples were extracted at each location.There was a 92% response rate overall, with 100% response rate from surveysconducted outside Tesco Metro – Ealing Broadway being the highest, while surveysconducted outside Tesco Metro Greenford receiving the lowest response rate of 82%.These differentials in rates of responses can be accounted for by different settings inwhich the research was conducted. Ealing Broadway had seating facilities, whilstGreenford had no such facilities. 42 | P a g e
  43. 43. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Table 3.5 - Questionnaire Sample Collection - (Area & Responses) 3.8 FOCUS GROUPSZikmund (1997) rationalised focus group interviews as an objective discussion of a topicby a group of respondents in a natural fashion, but moderated by a leader. This toolplayed a supportive role to the research, as such, was used to gain creative insight whererespondents felt sufficiently relax to reflect and portray their feeling and behaviour.It provided the opportunity to probe respondents for detailed explanation to theirresponses. The research followed the guidelines outlined in Malhotra & Birks (2003.Pg 161) for focus group interviews, details of the design used for this research isprovided in Appendix B. 43 | P a g e
  44. 44. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.9 OBSERVATIONDespite observation being a unit of data collection, its wide spread-use was restricted bytime related factors and lack of appropriate training on the part of the researcher.Nevertheless, as advocated by Malhotra & Birks (2003), observation illuminates theresearch and seeks to create a holistic understanding of the researched phenomena.However, results from observation were not presented in the research findings, since itlack clarity. 44 | P a g e
  45. 45. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.10 DATA VALIDITY AND RELIABILITYTo ensure that data quality from respondents are accurate or as near as possible, thequestionnaire was designed with all negative responses on one side, whilst, all positiveresponses on the other. This format was used through-out the questionnaire whichenabled the respondents to navigate their proposed responses quicker, creating a logicalmind map, thus enhancing efficiency, ease of use and adaptability.In scales construction, attitudinal measures were tested for consistency and stability. Dueto the available resources and time, it proved difficult to complete a “test-retestreliability” check, thus, regression analysis were performed to help neutralised the effectsof random fluctuations in responses (Parasuraman, 1991).To facilitate an accurate measure of respondents’ satisfaction levels, the scalecomprising of seven (7) points rating was used, it facilitated the detection of finevariations in responses (Parasuraman, 1991). It would have proved a usefullymeasurement in the global measures, however, it would have lengthened the time takento complete the questionnaire, hence reducing its overall effectiveness.Prior to the focus group sessions the participants were emailed a copy of the objectives ofthe focus group session together with an overview of the project, alongside renewedguarantee for data confidentiality. This enabled participants to pre-consider theinformation and develop a mind–map of potential responses during the session. Thishelps promote data validity and reliability (Saunders et al., 2003). 45 | P a g e
  46. 46. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.11 LIMITATION TO THE DATA COLLECTION PROCESSThe limitations experienced during the research are categorically defined as follows: a) Sampling error – this may arise because the research used a very small portion of the population as sample to analyse the behaviour of the entire population. The error rates were relatively high since it was difficult to increase the sample size, which ultimately would reduces the error rate. b) Non-sampling error – errors that arise not from the sample but from the survey. Namely incorrect response, conception distortion, coding error, arithmetic and other non sample source error. To ensure that this was reduced, particular care was paid to data coding and input. c) Sample frame error – result when the sample used may not have been the best, for instance, how participants were recruited to the research will in itself constitute errors of sample frame. Shopping centre interception method could have resulted in over sampling shoppers with spare-time, such as the elderly and unemployed. Moreover, it may have excluded relevant units while including irrelevant units (Parasurama, 1991). Nevertheless, the demographic representation appears to be reasonably representative of the shopping population which patronises these stores. However, the uncontrollable shady areas of intercept sampling were considered throughout the research. d) Selection error – where no representation of a sample is obtained. This could have derived from several source, for instant if the recruiter was intimidate by tall women with long black hair, and gothic appearance, or sample who appear busy, even if they reasonable fit the criteria, and should be approached next, they were not recruited. 46 | P a g e
  47. 47. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 e) Secondary data source selection – may have been the source of error in the research approach, design, sampling data collection and analysis stage of project (Malhotra & Birks, 2003). On the bases that the researcher did not participate in prior researches, it is therefore difficult to evaluate with any accuracy the reliability of these data. Thus, secondary data of good academic sources were solicited at all time, which were exposed to, and withstand the rigour of critics and upheld good research practices. 3.12 PROBLEMSThe interpretation to some questions appeared problematic at answering, even after thepilot study was commissioned. In particular, many respondents had difficultiesunderstanding and interpreting questions 41, 42, 48, & 49. Additionally, the size of thefont used and the spacing of the responses did not aid in that aspect.In previous studies using the TpB model eg: (King et al., 2007), researchers collected thedetail from the questionnaire survey and analyse these data before commencing furtherqualitative research. This proved to be an effective strategy in gaining depth of study.However, due to lack of the human resources to analyse this data before hand, and thetime-frame in which the research was conducted, this proved impossible 47 | P a g e
  48. 48. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 3.13 ETHICAL CONSIDERATION AND GOOD RESEARCH PRACTICE This “research is founded upon the willing co-operation of the public, it relied on the confidence that it is conducted honestly, objectively, and without harm to the respondents. Its purpose is to collect and analyse information and not to influence the opinions of anyone participating” (MRS, Qualitative research guideline, 2006. Pg. 3). • Standard academic practises were upheld when obtaining secondary data; this encompasses appropriate referencing of source materials. • The overall research adhered to strict data confidentiality procedures to protect the respondents’ details from misrepresentation. The researcher ensured that ONLY respondents enlisted to attend focus group sessions were present in the room where the interviews were conducted. • As far as practicable the anonymity of the respondents were protected by referring to focus group participants in the analysis section (pg. 68 - 74) using hypothetical names. Additionally, only audio-recording of the sessions were conducted • The entire research was guided by the Marketing Research Society (MRS) code of ethic in research and adaptation of procedures outline in Malhotra and Birks (2003). 3.14 CONCLUSION 48 | P a g e
  49. 49. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 This chapter on research methodology is seen as the guiding principle for the creation of knowledge and the orderly and effective way of problem understanding, which can be summarised as follows: The research technique used is that of a qualitative approach, which focused on a deductive approach, and justified the use of case study while developing the research aims and the construction of hypotheses. The tools of data collection were identified and categorised, whilst the research area and sampling details were outlined, problems and limitations encountered were stated and matters pertaining to ethics were deliberated upon. Chapter 4 49 | P a g e
  50. 50. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Research Companies Profile4.1 Corporate Overview – TESCO Plc (UK)4.2 Performance Overview 50 | P a g e
  51. 51. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Fig 4.1.1 – Tesco operation by Geographical break-down 2001 - 2006 Source: GMID – Euromonitor “Tesco company profile report 2007” Fig 4.1.2 – Tesco employment statistics 1996 - 2006 Source: Retailer Directory -2007 “Retailer Ranking by Number of employees - 2007” 51 | P a g e
  52. 52. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Fig 4.1.3 – Tesco market Share statistics 2001 - 2006 Source: GMID – Euromonitor “Tesco company profile report 2007” 52 | P a g e
  53. 53. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20084.2 Corporate Overview – IKEA AB (Sweden – UK review) 53 | P a g e
  54. 54. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20084.3 Financial Overview Fig 4.2.1 – IKEA AB Revenue by World Sales Regions - 2007 Source: GMID – Euromonitor “Housewares and Home Furnishing -UK 2007” Fig 4.2.2 – Market Shares of Major Players in the UK Housewares and Home Furnishing Market - 2007 Source: GMID – Euromonitor “Housewares and Home Furnishing - UK 2007” 54 | P a g e
  55. 55. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Chapter 5 RESEARCH FINDINGS AND DATA PRESENTATION5.1 INTRODUCTIONThis section is designed to detail the research findings, it begin with the presentation ofthe general pattern of data found, then continues with more specific research findingsrelating to the research hypotheses. The result from the questionnaire survey detailed thegeneral statistical finding in the form of descriptive and statistical data, supported bycharts and graphs as far as possible. 55 | P a g e
  56. 56. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20085.2 GENERAL FINDINGS 56 | P a g e
  57. 57. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Occupation of Respondents 80.0 70.0 67.5 60.0 50.0 % E G A 40.0 T N E C R 30.0 E P 20.8 20.0 10.4 10.0 1.3 0.0 waged Unwaged Student Retired Occupation of Respondents 67.5 10.4 20.8 1.3 Figure 5.1 – Age Distribution of the sampled Population Figure 5.2 – Occupation Distribution of Respondents 57 | P a g e
  58. 58. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Figure 5.3 – Profession Distribution of the Sampled population 58 | P a g e
  59. 59. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20085.3 FINDING ON TESCOThe overall statistic showed that 51% of the participants “will visit” Tesco at least threetimes at week, while 20% are not sure if they “will or will not visit”. However, whencombined with the assertive “definitely will visit” and the potential “will visit” groups,over 65% of respondents are planning to be exposed to Tesco at least 3 times in theforthcoming week. The same trend was displayed by customers who believe Tesco offersextensive range 51% “strongly agree”, while 49% “agree”, similar, to the 53% & 47%respectively who “strongly agree” and “agree”, that Tesco offers variety. Likewise, anoverwhelming 88% “agree” that they will find all they are looking for from one visit,only 12% was not certain.In addition, most customers were satisfied with their visit, accounting for 88% of the“slightly satisfied - highly satisfied” category; the remaining 12% was “slightlyunsatisfied”. This also were reflected on the volume of customers who view shopping atTesco as a highly pleasurable exercise, with 63% “agreeing” that they enjoy shopping atTesco, compared to only 14% encountering less pleasurable experiences. Additionally,most customers are highly satisfied when there are less than 4 alternatives in the productrange, 63%, “satisfied - very satisfied”. This compared to only 32% “satisfied - verysatisfied”, when there are more than 5 alternatives to choose from in the product range.The graphs below figure 5.4 (a) and (b) illustrates, selected data, on respondents visit toTesco and the evaluation of Satisfaction. 59 | P a g e
  60. 60. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Figure 5.4 (a)– Respondents Evaluation of Tesco’s Visits and Satisfaction 60 | P a g e
  61. 61. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 Figure 5.4 (b) – Respondents Evaluation of Tesco’s Visits and Satisfaction 61 | P a g e
  62. 62. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 20085.4 FINDINGS ON IKEAThe findings indicated that more that half were unsure if they “will visit” IKEA at least 4times in the coming 12 months, whilst 45% were certain that they “will not visit”.Indication of respondent perception on IKEA range; 23% “agree” that they have anextensive range, with 49% strongly contesting this stand. When surveyed on variety,34% “strongly disagree” that IKEA offered extensive variety with 12% “agreeing” thatthey do, yet only 39% were “satisfied” when choosing products with less that 4alternative with 26% being “terrible satisfied”. This figure is greatly amplified whenthere are more that 5 alternatives to choose from, with 30% being “extremelyunsatisfied” and only 24% being “fairly satisfied”. Additionally, 49% “stronglydisagree” that they will find all they are looking for in one visit, while 3% indicated thatthey can.Moreover, 68% and 63% neither “agree, nor disagree”, that their shopping experiencewas very pleasant and shopping there was a pleasurable exercise, respectively. With 65%indicating that it was “difficult to evaluate” their overall satisfaction. 62 | P a g e
  63. 63. Student #: 0527866 Business & Management (Hons) Marketing Brunel – 2008 63 | P a g e
  64. 64. 5.5 STATISTICAL FINDINGSThe data was grouped to as it relates to elements in the TpB model, and their descriptivestatistics are presented underneath. The overall measures, expressed in terms of mean areclosely patterned to results obtain for the measure of Tesco. Whilst, bear little relations tomean obtained for IKEA, (Table 5.4) present the descriptive statistics. Measures No Valid Mean Std. Deviation Entries Overall Intention 77 11.28 4.2793 Overall attitudes 48 28.75 1.4366 Overall Subjective Norms 57 26.10 3.3895Overall Statistical Measure Overall Past Experience 67 42.40 3.1912 Overall PBC 77 15.23 2.3781 Overall Satisfaction 77 47.66 5.6256 Intention TESCO 77 6.96 2.3195Statistical Measure Of Attitude TESCO 48 17.32 1.4995TESCO Subjective Norm TESCO 57 14.30 2.8910 Past Experience TESCO 67 25.55 3.0515 PCB Tesco 77 8.43 1.2610 Satisfaction TESCO 77 28.03 4.5173 Intention IKEA 77 4.32 2.3477Statistical Measure Of IKEA Attitude IKEA 48 11.85 2.1437 Subjective Norm IKEA 57 12.10 .81688 Past Experience IKEA 67 17.13 2.5410 PCB Ikea 77 6.81 1.8067 Satisfaction IKEA 77 19.62 4.1137 Valid N (listwise) 35 Table 5.4 – Descriptive Statistics for aggregate measures 5.6 INTERNAL CONSISTENCY, SCALE RELIABILITY AND REGRESSION ANALYSIS 64 | P a g e
  65. 65. The most commonly used indicator of internal consistency is Cronbach’s alpha coefficient.Ideally, the Cronbach alpha coefficient of a scale should be above .7 (DeVellis, 2003).However, Cronbach alpha is sensitive to items in scales under ten.According to Pallant (2007) reliability of good internal consistency, using Cronbach alphaabove .7 is acceptable, however, .8 is preferred. This is supported by (Ajzen, 2006) whoadvised that for scales with less than 10 items (as was this research) Cronbach alpha ofbetween .612 and .894 are good indicates of internal consistency. In the current study, thefirst stage in processing the results was to construct compound variable for those having morethat one item. The overall Cronbach alpha coefficient was .766, and the individual variablesare listed in table 5.5. Aggregate Cronbachs measures Alpha Overall .766 Intention .892 Attitude .706 Subjective Norms .624 Past Experience .691 Perceived Behavioural control .446 Satisfaction .806 Table 5.5 – Reliability StatisticsCorrelation was used as the parametric technique to check the strength and direction of thelinear relations between variables (Pallant, 2007). Details of the correlation measure arerepresented in Table 5.6 (A) and Matrix 5.6 (B).The table 5.3 (A) below explore relationship between variables of the TpB using Pearsonproduct moment correlation coefficient. Further correlation matrixes in presented in Table5.3 (B) which further explore the relationship between two variables set, and identify theirrelative strength. In keeping with (Pallant, 2007), preliminary analyses were performed to 65 | P a g e
  66. 66. ensure no violation of the assumption of normality, linearity and homoscedasticity, and weresatisfied that they upheld good statistical procedures. Subjective Past Variables Intention attitudes Norms Experience PBC Satisfaction Intention Pearson .483(**) .896(**) .286(*) .352(**) .393(**) Correlation Sig. (2-tailed) .001 .000 .019 .002 .000 N 48 57 67 77 77 Attitudes Pearson .049 -.739(**) -.154 .243 Correlation Sig. (2-tailed) .747 .000 .295 .096 N 45 38 48 48 Subjective Pearson .732(**) .065 .491(**) Norms Correlation Sig. (2-tailed) .000 .632 .000 N 47 57 57 Past Pearson .470(**) -.070 Experience Correlation Sig. (2-tailed) .000 .573 N 67 67 PBC Pearson -.364(**) Correlation Sig. (2-tailed) .001 N 77** Correlation is significant at the 0.01 level (2-tailed).* Correlation is significant at the 0.05 level (2-tailed). Table 5.6 (a) – Correlations Measure between Variable of the TpB Model Intention Attitude Subjective Past Perceived Satisfaction Norms Experience Behavioural ControlIntention - R - .48 R - .896 R - .286 R - .352 R - .393 N – 48 N – 57 N – 67 N – 77 N – 77 P<.01 P<.01 P<.05 P<.01 P<.01Attitude R - .48 - R - .049 R - -.739 R - -.154 R - .243 N – 48 N - .45 N – 38 N – 48 N – 48 P<.01 P=.05 P<.01 P<.01 P<.01Subjective R - .896 R - .049 - R - .732 R - .065 R - .491 66 | P a g e
  67. 67. Norms N – 57 N - .45 N – 47 N – 57 N – 57 P<.01 P=.05 P<.01 P<.05 P<.05Past R - .286 R - -.739 R - .732 - R - .470 R - -.070Experience N – 67 N – 38 N – 47 N – 67 N – 67 P<.05 P<.01 P<.01 P<.01 P<.05Perceived R - .352 R - -.154 R - .065 R - .470 - R - -.364Behavioural N – 77 N – 48 N – 57 N – 67 N – 77Control P<.01 P<.01 P<.05 P<.01 P<.01Satisfaction R - .393 R - .243 R - .491 R - -.070 R - -.364 - N – 77 N – 48 N – 57 N – 67 N – 77 P<.01 P<.01 P<.05 P<.05 P<.01 Table 5.6 (b) – Correlations Matrix amongst Variable of the TpB Model Key to Matrix High Positive Correlation Moderate Positive correlation Weak Positive correlation No correlation High Negative Correlation Moderate Negative correlation Weak negative correlation R – Spearman rho N – number of respondents P – statistical significanceTo test the hypotheses, each variable was investigated for association with the dependentvariable using linear regression. Pallant (2007) advised, when a small sample is involved,such as this research, the R square value in the sample tends to be a rather optimisticoverestimation of the true value in the population. Therefore, the adjusted R value is alsoreported. Additionally, the coefficient Beta is reported, as indicator of the level of uniquecontribution the variable is making. Moreover, the alpha value is an indicator of theassociation individual components has on the depended variable thus; sig. is added to thetable, to help create direction and build meaning to the analysis. If the Sig. value is less than.05 (.01, .0001) the variable is making a significant unique contribution to the prediction ofthe dependent variable. 67 | P a g e
  68. 68. Multiple regression construct are illustrated in table 5.7 and support of the hypotheses basedon the Beta results are indicated in table 5.8.Variable Standard R2 Adjusted R2 Significant Coefficient BetaAttitude .483 .233 .216 .001Subjective Norms .896 .802 .799 .0001PBC .352 .124 .112 .002Past Experience .286 .082 .068 .019Satisfaction .393 .155 .143 .0001 Table 5.7 – Compound variables and their association with intention to patronised Tesco & IKEA extensive rangeHypothesis construction Variable Supporte Level of Tested d significant Yes NO Highly Sig. H1 √ √ Attitude H2 Subjective norm √ √ H3 Behavioural control √ √ H4 Intention shaped by Past experience √ √ H5 Attitude/Past experience √ √ Table 5.8 – The Coefficient Beta and sig. in relations to the hypotheses 68 | P a g e
  69. 69. 5.7 CONCLUSIONThe questionnaire was very well responded; with an overall response rate greater than 95%,with the greatest age category being accounted for by the 25 – 44 age group. Overall, thesample bears a good reflection of the responses of the entire population.The findings indicated that consumers viewed Tesco favourable, in terms of its variety andrange, and, as such, was highly satisfied by its extensive choice, thus having positivepatronising behaviour towards Tesco. Concurrently, respondents were not so optimistic inregards to Ikea’s variety and range, which bore reflection on their overall intended patronageand satisfaction levels.The research upheld good internal consistency and reliability supported by an overall alpha of.766. Moreover, it displayed high correlations between variables, and were supportive of allthe hypotheses. Chapter 6 ANALYSIS & DISCUSSION6.1 DISCUSSION AND QUALITATIVE FINDINGThe research presented here was designed at investigating two main issues.First, it was the intention to test the appropriateness of the TpB model within the sphere ofstores extensive choice offering. Secondly, it was aimed at, examining the impact ofextensive choice by stores on consumers’ satisfactory response. 69 | P a g e
  70. 70. Looking at the first objective the results obtained provided considerable support in term ofthe appropriateness of the TpB model in predicting and explaining intentions to patronisedstore which offers extensive choice, and the embryonic response of consumer satisfaction.The model display good measure of consistency for most variables, with high levels ofconsistency between the influences of subjective norms on intention. However, displayedlittle, but significant consistency with past experience on intention, all other variablesdisplayed moderate consistencies. (Refer to Table 5.6 on page 66) Figure 6.1 – The TpB explained in terms of Items Correlation 6.1.1 Intention and Attitude(Table 5.6 (b) on page 66) indicates a moderately positive relationship between “Attitudeand Intention”, this therefore means, the more consumer perceived Tesco and IKEAextensive choice as a good, the more likely they are to patronised these stores. Olson et al.,(2005), supports this view by indicating that systematically strong attitude towards an objectwill result in strong specific behaviour toward that object. This view is supported by Ajzen 70 | P a g e
  71. 71. (2006) who assert that a multi-component view of attitude can explain intention to partake inbehaviour, in situation of low relationship. Moreover, attitude is significantly associated(beta .48) with intention to patronise such stores, and be suitably rewarded. This is furtherqualified in our focus groups with respondents illustrating selective attitudinal responses.Ajzen (2006) and East (1997), have warned that attitude towards a behaviour is not always agood indicator of the individual specific behaviour towards the object. However, as indicatedby Foxall (1998) attitude, is a good predictor of intention and actual behaviour. This was agood reflection of Tesco in the research findings, in which positive attitude was backed up byactual behaviour.Additionally, Hoch (1999) indicated that stores offerings help build positive attitudes towardsa store and is ranked right behind location and prices as reasons why consumer patronised astore. Moreover, he also argued that consumer may regard extensive choice as confirming tothe inmate desire of consuming different alternatives across occasions. Hence, extensivechoice affords the attainment of this goal. 71 | P a g e
  72. 72. 6.1.2 Intention and Subjective NormsThe association of subjective norm and intention was the most dominate relationship (Beta .896). Such strong association of the presence of, or, impetus of, significant others have strongbearings on individuals’ overall intention. The correlation analysis indicated that the morereferent powers have positive reviews of these stores, the greater the propensity of individualsto patronised these store. Such can have implication for Viral Marketing and word of mouthbrand building. The findings thus far, appear to be in line with Kollat et al., (1970) study“Influence of referent groups on consumer behaviour”.Foxall (1998) indicated that the influences of subjective norms are reflective of consumer’sperception for engaging in a particular behavioural intention. Additionally, Kollat et al.,(1970) viewed referent powers 72 | P a g e
  73. 73. “as a major determinant on behaviour formation, as well as implication on phenomena such as satisfaction” (pg. 458).He detailed that powerful referent individuals affects the aspiration of others, thus influencingtheir behaviour. This acclamation is supported by details presented in this study where 80%of the respondents believe that significant others also visit Tesco, with 64% agreeing thatIKEA offers extensive choice, 52% beliefs that significant others are reasonable satisfiedwith the extensive choice of Tesco and IKEA. Additionally, this sentiment of subjective normand its bearing on intention were manifested in the focus group interviews.Kollat et al., (1970), indicated that the degree and nature of subjective norm on behaviour issegregated. This influence base is linked by the socio-economic hierarchy. Thus, individualsat the bottom of the hierarchy are greatly influence by significant others, unlike those at thehigher end of the hierarchical strata. However, strong social pressures are also linked tocultures with large families or strong social cohesion, as indicated by “Sonal”. Thisrelationship described by Kollat et al., was not explored in this study. 73 | P a g e
  74. 74. 6.1.3 Intention, Past Experience and Perceived Behavioural ControlExperiences respondents encountered in the past, had little relationship to their futureintention, this is reflected by a (Beta .286). Nevertheless, it remains an important componentin framing the consumer overall shopping experience. Additionally, there are a number ofreason why past experience is not described by respondents as a major influential factor onfuture intention.Firstly, most of the respondent failed to adequately complete this section as it relates toIKEA, hence, incorrect assessment of value. Nevertheless, the services of retailing havebecome so standardised that consumers failed to experience the “WoW” factor. Thus,psychologically they have typified each service as the same. Secondly, consumers have cometo expect a certain level of service, hence always receiving exceptional services move downon the hierarchy of shopping experiences.Investigation of PBC and Intention, revealed a moderately positive relationship (Beta .352).This can be translated into (a) Consumer possess the monetary resources to patronise thesestores, and (b) These store are in close proximity to consumers, thus encouragingaccessibility.Societal perception of Tesco and IKEA indicate that most London families can reasonableafford to purchase from these stores, in comparison to MFI, Sainsbury, and Mark and 74 | P a g e
  75. 75. Spencer. Hence, the likelihood that they can successfully purchase from these stores can beinterpreted as consumer having control over their intentions. Thus, resources triangulates intointention, resulting in patronising behaviour.Additionally, these stores are in reasonably close proximity to consumer, more so Tesco.This, from observation found that, they are carefully located next to major bus stops andtransport interchange. This provides the platform for the consumer to enact their behaviour,and instigate positive intention. Such is supported by the qualitative interview. 6.1.4 Intention and SatisfactionThe study showed that Intention, which is the proxy to behaviour, had a moderately positive(Beta .393) relationship to satisfaction (apparent or real). Thus, it was difficult to interpret ifintention created satisfaction, or satisfaction attained, propagate future intention. What iscertain is that there are some levels of positive relationship. Therefore should satisfactionvaries, it will be reflected in the consumers’ intentions. Oliver (1993), supported this view byidentifying expectation, and performance as antecedents to satisfaction, and arguablepredicting intention. He went on to say that, intention and performance are not enough tosignificantly create satisfaction. What is more important is the strength of consumers’ beliefsin exercising their intentions. However, qualitative findings supported the relationshipbetween intention and satisfaction. 75 | P a g e

×