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UNIVERSITY OF WALES, TRINITY SAINT DAVID
School Of Business
Dissertation Title
Determine the various factors that influence the
consumer’s decision to shop at Sainsbury’s PLC?
Submitted By: SUMON PAUL
TSD ID: 1003463
Submission Date: 06 January 2012
A DISSERTATION
Submitted in partial fulfillment of the requirement for the degree
of
Masters in Business Administration (MBA)
COLLEGE OF TECNOLOGY, LONDON
January 2012
DECLARATION
I (Sumon Paul) hereby declare that this dissertation submitted for the award of master of
business administration is completely my own work and it resembles no similarity with
other people’s research work or it is not coping from other research paper.
SUMON PAUL
………………………………………..
Date: 06-01-2012
TSD ID: 1003463
COLLEGE OF TECNOLOGY LONDON
UNITED KINGDOM
i
Acknowledgement
Writing this dissertation is both exciting and challenging for me. It is not possible
without the help of some people who mainly encouraging me. Definitely, I am studying
on a very interesting subject. I have given sixteen weeks’ time to finish this dissertation.
Finishing the dissertation by this time is not only hard but also it teaches me to deal with
a huge amount of information within a short time.
I have now completed my dissertation of Masters Degree program at College of
Technology, London under University of Wales: Trinity Saint David and I would like to
take this chance to show my gratitude a few persons for their contribution to my work.
First of all, I would like to thank my course supervisor Mr. Mike Elkin, who has been
tremendously supportive and understanding while I was developing through my
research work. Without the help of my supervisor I believe that I would not be able to
write my dissertation in the way that it has been written.
Finally, I would like to be grateful to my family and friends, who has provided me with
some tremendous ideas & support me, and my colleagues of Sainsbury’s Local,
Clapham Old Town, who has contributed with their thoughts and help me by providing
necessary information related to my research topic. As well as I am also thankful to
everybody for their support and patience during the last few weeks.
ii
Abstract:
This research represents the consumer’s decisions in various factors that influence them
to shop in Sainsbury’s PLC in UK for their daily needs. It is a common knowledge by
which the consumers buying decisions are influenced and the consumers get some ideas
about the various factors in general. It helps to influence the consumer’s price
knowledge, quality, customer service and loyalty to the company and also it is
responsible for the sales margin.
The main purpose of this dissertation was to verify the different factors that influence
the customers to shop at Sainsbury’s PLC. Primary data was collected through the
interview of the colleague and a survey that was conducted on the customers of
Sainsbury’s Local, Clapham Old Town.
Price, quality, promotion and customer service were identified as the most important
factors by the customer survey, where majority of the customers were concern about the
price of the product.
The researcher has used quantitative research to test the concept which is relevant to the
design of various factors that influence the customers to shop and qualitative research
for developing more those concepts in to a real form of research. It is really very
important to have a decent concept development in the research process. Researcher has
taken the interview of 100 customers and 4 respondents from Sainsbury’s PLC.
This research also helps the company to have the competitive advantages from the
market.
iii
TABLE OF CONTENTS
Page Number
Declaration i
Acknowledgement ii
Abstract iii
Table of Contents iv
List of Tables viii
Chapter 1 1-4
Introduction
1.0 Background of the Study 1
1.1 Problem Definition 2
1.2 Aim of this Research 2
1.3 Objective of the Research 3
1.4 Scope of the Research 3
1.5 Outcome of the Chapter 3
Chapter 2 5-23
Literature Review
2.0Introduction 5
2.1 Service 6
2.1.1 Service of the theory 6
2.1.2 The quality of customer service 7
2.2 The client preferred shopping convenience 7
2.3 Customer Satisfaction 8
2.3.1 Theories of customer satisfaction 9
2.3.1.1 The importance of customer service 9
2.3.1.2 The function of customer satisfaction 10
2.4.1 Customer vs. Employee Satisfaction 10
iv
2.4.2 Customer’s personal value and their pleasure measurement 11
2.4.3 Price 11
2.4.4 Other attempts to reduce prices 13
2.5 The concept of consumer technology 16
2.6 The UK supermarket industry 16
2.7 The strategy of Sainsbury PLC 18
2.7.1 Sainsbury PLC 18
2.7.2 Nectar loyalty card 19
2.7.3 Advertisement 20
2.7.3a Promotion 21
2.7.4 Price wars 22
2.7.5 Product Quality 22
Chapter 3 24-32
Methodology 24
3.0 Introduction 24
3.1 Research Philosophy 26
3.2 Research Model 26
3.2.1 Research approach 26
3.2.2 Research methods 26
3.2.3 Sampling methods 27
3.2.4 Quantitative Research Methods 27
3.2.4a Reasons for the choosing quantitative methods 28
3.2.4b How to use Quantitative Methods 28
3.2.5 Qualitative research 29
3.2.5a Reasons for choosing qualitative methods 29
3.2.5bHow qualitative method is used 29
3.3 Sources of data 30
3.4 Data collection methods 31
3.5 Methods of sampling 31
3.6 Validity and reliability 31
3.7 Limitations 32
v
Chapter 4 33-37
Context of research
4.0 Profile of Sainsbury’s PLC 33
Chapter 5 37-53
Findings of qualitative and Quantitative research
5.0 Introduction 37
5.1 Qualitative Results 38
5.2 Evaluation 44
5.3 Quantitative Results 44
5.4 Evaluation 52
5.5 Conclusion 52
Chapter 6 54-57
Discussion and Analysis
6.0 Discussion and Analysis 54
6.1 Revising the Objectives 55
6.1.1 Customer Service as Sainsbury’s tools 55
6.1.2 Challenges for Sainsbury’s 56
6.2 Conclusion 57
Chapter 7 58-61
Conclusion
7.0 Conclusion and Recommendation 58
7.1 The Implication 59
7.2 Additional research area 60
7.3 Research limitations 60
7.4 Recommendation 61
References 62-66
vi
Appendices 67-75
Appendix 1 Questionnaire for Managers 67
Appendix 2 Questionnaire for Customers 69
Appendix 3 The Times News Paper 72
Appendix 4 Records of Meeting 73
vii
List of Tables
Table 5.1 Age limit of sample respondent 46
Table 5.2 Gender of the sample 47
Table 5.3 How are the price of the Sainsbury’s product? 48
Table 5.4 How is the customer service at Sainsbury’s? 49
Table 5.5 How effective the Loyalty Card (Nectar) is? 50
Table 5.6 How would you rate the quality of the products at the store? 51
Table 5.7 How would you rate the attitude of the staffs? 52
viii
Chapter 1
Introduction:
1.0 Background of the Study:
The UK retail industry is changing continuously. Big retailers, such as Sainsbury’s,
Morrison, Wait Rose and others with their rock bottom price have dominating the UK
retail industry. These retail companies’ provide a breadth and depth of assortment and
competitive prices to the customer which is different from each other (Vias, 2004). But
the ever changing consumer’s psychological variables like products quality, price,
promotion, interest and lifestyle also influence the customers in their buying decisions.
These factors manipulate the customer’s idea of shopping and loyalty to the company
and also it is responsible for the sales margin.
At the present price, quality and other different factors is very imperative and
challenging for consumers as the customers are more concern about these issues in their
daily needs. These factors influence the customers so much to shop at their layouts.
Though UK got rid of the recession, the price of every product in the market is
increasing every day. For the competitive advantages in market product quality and
price create the value and importance of the company.
1
Darian (1998) suggests that products the price that customers are referred to as probably
any other factor. Chen et al. (2004) found that are the most important attributes of
children's clothing, quality and style more important than price for them. In addition to
these factors, the ads usually have a large impact on sales at retail. Since there is a direct
correlation between rising prices and the latest fashion products in the textile and
clothing industry, which reflects more the product of the latest fashion and style,
together with the contribution of advertising is, the higher the sale price. Branding is
one of the most important attributes that influence the sale. While brand awareness is
high among customers, because it is used as a means for the emotional needs or status
of the device and to make information about their peers, the Harper et al. (2003)
reported that 60 present of parents responded that labels and logos are not of great
importance.
This research is going to represent the consumer’s decision in various factors that
influence them to shop at Sainsbury’s PLC. The goodwill of Sainsbury’s in UK is well
known to all people, but in some cases people find that the product of Sainsbury’s are so
pricey than the other retailers.
However this study will be investigating those influencing factors that drive people to
choose Sainsbury’s for their shopping and identifying some key process to reduce those
barriers for Sainsbury’s PLC.
1.1 Problem Definition:
Buying behavior of customers is influenced by different factors such as price, quality,
and customer service and so on. Each and every business has to take this
inconsideration while making the business strategy because the customers always try to
move to the alternatives. So to maintain the relationship with the existing customers and
to attract the new ones the companies are to manage these factors in a positive manner.
(Fill et. al., 2008). If these factors are managed properly by Sainsbury’s PLC, the
customers will be influenced to do shop more in it.
1.2 Aim of this Research:
The aim of this research is to identify the factors that influence the customers to shop at
Sainsbury’s PLC, which may also help the company for their future existence in the
retail market with other retailers.
2
1.3 Objective of the Research:
The objectives of the research are given below:
• To find out the various factors influencing the consumers’ behavior to shop at
Sainsbury’s PLC
• To rank the factors according to their importance
• To find out how Sainsbury’s PLC perform responding to these various factors
1.4 Scope of the Research:
This research has a huge scope for Sainsbury’s PLC. This study can give the idea to
think about their pricing strategy for the products. It will also be favorable for the
company to think about the marketing through advertisements, promotions and so on.
By managing these factors Sainsbury’s can create more loyal customers and attract
more new customers to shop at Sainsbury’s. It can lead to the more market expansion
for the company. Outcome from this research can also be useful for any other retailers
and create more opportunity for sales.
1.5 Outcome of the Chapter:
The research is separated into seven chapters. Ist chapter provides an general idea of the
research which includes fundamental info of the factors that influence people to shop at
Sainsbury’s and how those factors can be benefited for Sainsbury’ PLC. It has given an
impression of the research aim and objectives. It has also given the clarification of the
way to complete this research. Here, second chapter explain in details of related
literature review and theories. It also includes other significant data which is needed to
prepare a discussions part about the various influencing factors. Now in chapter three
reflects of the research method where the researchers explain the research process,
research methods and research approaches. Moreover it deals with research validity
criteria and limitations of this research. After that, the chapter-3&4 explains Sainsbury’s
PLC, company profile and how does it work, its establishment, future plan etc. Next
chapter-5 defines the data collection process and it presents the results of the
interviewing people. There are some graphical presentations were used to understand
the purpose of the research. Findings and analysis will discuss in chapter-6 and result
from previous chapter also reflects. At last, conclusion and recommendation were
3
described in chapter seven. There are some scopes for further research in this
dissertation.
4
Chapter 2
Literature Review:
2.0 Introduction:
Analysis of various factors affecting choice of consumers for shopping at Sainsbury
PLC effects on many properties to study. In analyzing a variety of factors, a 7-P, and the
market research to determine what factors to attract and retain loyal customers in certain
markets. The following section will examine the literature of the various factors that the
consumer's decisions to shop at Sainsbury’s PLC address the following factors of
influence:
1. Product quality
2. Price
3. Promotion
4. Customer service
5. Loyalty
5
2.1 Service:
In general, customer satisfaction research in marketing should be further developed
(Parasuraman, Zeithaml and Berry, 1988) to meet the needs of customers to identify and
has become an important parameter to understand. To provide high customer
satisfaction is related to the company's success, so concentrated in different settings, the
quality of service to determine how visible a great deal of effort is. Gronroos (1982)
defined about the benefits expected to be, that will measure "that he has received reports
of consumers to compare service expectations of the results of the evaluation process,"
the definition of the same quality of service. Quality of service, the service and the
customer experience and expectations of our customers before receiving the results of
the comparison can be seen as Wyckoff (1984) from the perspective of the enterprise to
define the concept of service quality. Diversity of customer needs and achieve
excellence in order to meet the control to ensure the quality of service excellence
means.
2.1.1 Service of the theory:
"The associated certificate of service, performance, or physical exertion with the
intangible product that cannot be heard is the dominant component is immaterial’’
(Marketing Services, 2007). As the product to the essential characteristics of the various
products service can vary. These attributes cannot be tangible, damages, and
inseparability of these functions, and other services from the actual products are created,
but most of the results of service delivery is prompt, immediate feedback, because they
also offer their experience is not required. The success in the provision of services to
offer services to purchase a high chance of dissonance, because they do not work the
requirements of customers, the company, how to effectively promote their services
sometimes physical products, including the provision of services within the package in a
such a situation depends on the quality of service on the product's ability. In addition,
nearly all service experience (Savitt et al., 1986), the more heterogeneous in nature, the
service cannot be so. A service in the supermarket industry, which is quickly and
accurately to a high degree of service, is very important. This service is available
through them and creates a culture of service on the market (Verret, 2000), in the
supermarket to clarify the expectations of our employees is very important.
6
Established of standard service begins with benchmarking process and by identifying
service attributes that the service standards. Just as you can to serve the best customer is
the ultimate goal of comparative analysis, we first identify the service attributes that are
most important for supermarket customers. The service attributes are derived from the
determinant of the supermarket service quality. Examples include: product quality,
product range, the purity of a supermarket, a supermarket location, price, pricing, fast
recovery, easy payment, employees of the store operating hours friendly, and the
existence of special units, such as meat, fish, deli departments. Missing from this list
includes serious business; supermarket grocery buyer can influence choice / patronage,
but not necessarily the degree of customer satisfaction with grocery supermarket (Ou
and Abratt, 2006). In addition, the contribution of these attributes to overall customer
satisfaction (or the general quality of service supermarket) with the help of feedback
from customers that we have asked with the help of questionnaires measured.
2.1.2 The quality of customer service:
A number of studies were conducted to determine the standards of service quality.
Nevertheless, the model of the quality of services than Storbackav, Strandvik and
Gronous has long been a priority for immediate results. To assess customer satisfaction,
service quality, the model bases the recent experience of the client versus customer
perceptions and expectations (Storbacka, Strandvik, Gronroos, 1994).
Customer satisfaction is the proper measure of service quality. Quality of service is
determined by the relations and, of course, customer loyalty, as well. If a customer is
not satisfied with the quality of service and with the undesirable behavior that customers
can move or no longer needs the service or end weaker relationship ended. So it is very
important that in order to retain the loyalty of customers, service quality focus of
measurement should be consistent and follow-up.
2.2 The client preferred shopping convenience:
In addition, contribute to the growing preference of consumer demand for convenience
shopping, the growth of modern retailing in the UK, for which it is, in turn to improve
efficiency, quality and safety of the food chain (Chengappa et al., 2005;. Mukherjee and
Patel, 2005; Umali Deininger, and Sur, 2007). Consumers are more selective in the
choice of food and have more comfort to emphasize the freshness and quality of
7
products (Quagrainie et al., 1998;. Acebro'n et al., 2000). Considerably with the advent
of supermarkets and independent culture, packaged food preferences of consumers has
increased in recent years (Stewart-Knox and Mitchell, 2003; Silayoi and Speece, 2004;
Wells et al., 2007). The desire for comfort and increase the number of working women
is one of the most important factors for strong growth in packaged foods (Goyal and
Singh, 2007). In addition, consumers have already started to have better quality and
more aware of nutrition, health and food safety (Ruth and Yeung, 2001;. Rimal et al.,
2001).
With the development of food retail modernization and rapid changes in consumer
buying behavior in retail and food grown by leaps and bounds. To capture the
opportunities of the growing organized retail in the country, large companies are being
robbed in this segment. These companies are in advanced development of large retail
chains across the country to build.
Given the above situation, the high demand for the modernization of food retailing, it is
necessary to evaluate different products and market attributes to develop appropriate
structure of the retail food.
2.3 Customer Satisfaction:
In the supermarket industry, customer satisfaction performs an important role because
of its direct impact and influence on proven income and the ability of the supermarket
business. Not only that customer satisfaction with strong word-of-mouth advertising for
the supermarkets, but it also helps them to retain existing customers and provide them
with significant, with the possibility of long-term relationships with their existing
customer base.
Consumer intention to purchase a product depends on the extent to which the product
meets or fulfills the conditions for its use (Lai, 1991). Consequently, the specific
circumstances under which the intended consumers assume the product impact on the
use of their price sensitivity. In some situation, use will be an important factor of
consumer behavior. One of the maximum proportions in the studied collection
determinants (Belk, 1977) that 18.7 per cent of the variance in the decision were made
consumer purchases in order to plan the use of the product. Jack et al. (1994) examined
the spectrum of applications for a variety of cheddar cheese. They found that the most
8
important factor was for the most demanding quality cheese consumption in relation to
their specific use, such as mature cheese perceived, as is best suited for "high quality" as
used "after lunch with wine and luxury."
2.3.1 Theories of customer satisfaction:
Customer satisfaction is a well-known and established concept in different section of
sciences like marketing (Fornell and Werneldt, 1974; Kotler, 1991), consumer research,
economic psychology and economics. Customer satisfaction means that the customer
has with a product or service that meets the needs of customers’ expectations and wants
(customer service and satisfaction, 2007), is satisfied. One of the fastest growing
segments of the market research is the study of customer satisfaction (Dutka, 1994).
Customer loyalty can be generated when the client is happy, and when it will be created
loyal business customers, this is an essential component of sustainable and profitable
growth. Customer satisfaction is diffuse expectations of customers that pass through
three stages before the delivery address. At level 1, expectations are simply takes the
form of assumptions. At level 2 these expectations gain higher value than level 1 and
meet the demand through quality services that meet certain requirements or
specifications. And third levels of expectations is that the organization encouraged its
customers and to produce something in order to win customers for its services and
products. At this third level of customer satisfaction in the customer base of loyal
customers and offers opportunities for companies to establish long term relationships
with customers and regular customers, then this additional information is offered to
other people by Sainsbury PLC Store.
2.3.1.1 The importance of customer service:
Customer service is to satisfy all the efforts to identify and customer needs. The term is
used in three ways:
1. First contrast is the "products." Products are tangible things and services are
intangible things like cutting a hair, taxi journey or insurance questions or advice.
2. Secondly when a customer when they buy a product they get some extra benefit. For
example, a customer purchases a laptop and for this the customer gets a business service
for that laptop for several times. It means that the company ensures that the laptop will
still function and in future for certain time they will provide service for that product.
9
3. Thirdly, a general relationship between the supplier and the customer. It shows that
providing a better service for any product all the business transaction is service based.
2.3.1.2 The function of customer satisfaction:
The functionality of customer satisfaction in the business world is that how effectively
services or products satisfy the expectations of customer needs. In this way the world of
marketing that every story of success in business is based on "Customer Satisfaction"
and for this, customer satisfaction is a key element of corporate strategy in today's
market (Buchanan and Gilles, 1990). Although customer satisfaction varies from person
to person, but to recommend certain standards to be defined in order to reduce the
positive public awareness.
A common tool is the choice of the level of customer satisfaction survey or primary data
collection, where customers were asked what the opening and closing statements in
accordance with customers own perception assessed. Thus, the provision of services or
goods contingent that some degree of customer satisfaction.
2.4.1 Customer vs. Employee Satisfaction:
In a "Success Cycle" the loyalty of the employees (Schlesigner and Heskett, 1991)
joined with the customer loyalty to the concept of customer satisfaction, so that the staff
training and development in a compact personal service are inevitable in order to
provide services to clients. The model is illustrated as follows:
Figure 2.4.1: Successful cycle of customer vs. employee satisfaction
Source: Sloan Management Review pp.17-28
10
Staff provided a well-run and corporate culture of service that the company has then
they must trained the staffs to maximize profits and sales are set to maximize. In
addition, the sustainability of competitive service industry, development of customer
loyalty is considered.
2.4.2 Customer’s personal value and their pleasure measurement:
Customer’s personal value is also an important factor for the retailers. Rokicha (1968,
1973) defined personal values as "enduring belief that a particular practice or preferred
end state of existence, personally or socially to face or vice versa conduct or end state of
existence." Personal values are generally accepted as a major influence on human
behaviour and consumption patterns (Kang and Yang, 1993), and as a tool for
marketing segmentation (Vinson and Scott, 1977; Schiffman et al., 2003,). Previous
studies have shown that personal values are useful for understanding the behavior as
difficult as choosing a particular brand in the category of product class (Pitts and
Woodside, 1983). It is important for marketer’s cultural relations caused by the brand to
understand and agree with them more closely with the personal values of the target
group (Miller, 1999).
Most studies on the influence of personal values in marketing and consumer behavior
based on the concept and measurement of the contribution of Rokicha (1968, 1973).
Rokicha developed a list of 18 instrumental values and a list of 18 values of the
terminal, in the assessment Rokicha value (RVS), which was used in many studies
(Bond, 1988; Hofstede and Bond, 1984;. Ng et al., 1982) are combined to estimate the
value. The final value of the belief that some end-state, personally and socially desirable
(for example, what an exciting life, family security, or pleasure), that is, values that
serve as long-term goals in life. Instrumental values relate to behaviors and beliefs
represent the individual, personally and socially better in all situations in relation to all
objects for example ambition, independence or self-determination, that is, the values
that serve as guidelines for the day in the day of the event.
2.4.3 Price:
Price is an important element affecting the distribution of new products and services for
observation, but the price of a new product or service is particularly difficult (Foxall,
1984). And requires the ability to exact solution, the prices of other goods or services, a
11
detailed knowledge of the potential customer’s perception and performance is
important. But the price is an essential component of the diffusion of improvement. In
addition, more or less unknown how customers perceive the price charged for a product
and what are the dynamics that influence the price perception. Perceived price is based
on the customer experience via any product or service, and compared the prices of other
additional service delivery channels formed.
It is worth the price and quality was identified as two major components in pricing
research literature (Grewal et al., 1996). According to a basic model of perceived value
(Dodds and Monroe 1985), the values which recognize the basic model recognized as a
positive influence on the quality of the negative impact. In addition, comparative
advertising price can be as advertised marketers selling price to cope with stress
reference pricing, marketing, or the previous price of the leading manufacturers in the
word. This is the suggested retail price or the competitor price (Biswas et al., 1993).
This means that customers are in demand and provides a range of properties. These
properties are "personal", answer the following questions:
• What products are produced?
• Where it is produced?
• This is done by a person who is it?
It must be recognized by consumers as the price for a given value of the product must
be appropriate. How honest consumer customers (Moulton and Lapsley 2001, p. 211), it
is not worth more than their money.
To meet the price of goods, and financial costs at the level expected for the name brand
and quality products means that the associated. In general, the price cannot be tested
before the customer buys the products. There are several other features are important to
signal the wrong choice when there is a risk. The high price of this product may show
that a high quality. As a result, some customers complain only product risk (Balestrini
& Gamble, 2006, p. 401), the cheaper it is to refuse entry to avoid.
The price of the product itself says a lot about the image. As the price of wine trade
partners need to be addressed in collaboration with decisions. Friendly competition in
the market the brand, size and volume targets should be granted. Pricing strategies, but
12
not limited to one price, special price changes frequently to remove products, dealers,
and to promote a special price to add volume to adjustment. The purpose of the special
pricing agreements with other products is that new consumers should try different
product at a lower price. The scale of these special rates (Moulton and Lapsley 2001, p.
211) specific high-line to describe on a regular basis as a special and higher in special
circumstances may be extended.
2.4.4 Other attempts to reduce prices:
One of the most important attributes of the product price is that at which the product on
offer. There are several reasons why prices may be an important determinant of
category structure and the effects on the structure of the acquisition of the various
proposals in this category. First, it is assumed generally assumed that the heterogeneity
of consumers over time must show. To meet these requirements, the consumer can
purchase at various levels, the price for the category. For example, in terms of clothing,
the purchaser can buy inexpensive shoes for everyday use and high-quality, more
expensive shoes for special occasions. Inexpensive wine is satisfactory for normal use
could at home, but higher quality wine by the same person, when guests are invited or
other notable events are acquired. Such scenarios are on the large-segmentation
(Dubow, 1992). Another possible reason for the spread of the purchase price through a
variety of levels is while consumers intentionally experiment with different products to
satisfy the desire for variety (Givon, 1984; and Pessemier McAllister, 1982).
Consumers may wish from time to time in order to indulge by buying a product or a
brand outside of the normal price range. These observations are also consistent with the
results of research on price ranges and thresholds. Consumers are obviously lower and
upper limits of prices for products that make outside of which they either do not doubt
the quality and hard to buy, or at a price level is higher than the variable quality
(Monroe, 1971). This is an acceptable range, especially below the allowable limit,
which apparently formed by the range of prices, consumers are exposed (Cox, 1986).
Therefore, for all the above reasons it is generally accepted that customer to buy a range
of prices over time. However, there was a small study to investigate whether buying
patterns or predictable patterns in how consumers about the price level, researchers and
marketing experts, can the level of competition from other price levels to predict. Given
that price is an attribute of all brands obsessed. It is possible to divide the market for
different prices ranges or levels to explore, if the distribution of consumer purchases
13
between the prices levels over time in the same manner as the distribution of purchases
from brand to brand over time. Definition is a predictable way to understand, predict
and respond to price competition. A literature search found not to work in this area, with
one exception. According to the Scriven and Ehrenberg (1995), the consumer panel data
and found evidence of purchase price over the analyzed categories. Thus, as an
individual level heterogeneity in the acquisition of different price levels over time leads
to buy a recognizable pattern or patterns in the aggregate data to determine
In general the retailers try to reduce the cost of the products in their store for different
function:
a. Manufacturer relationships:
Retailers try to get the products from the lowest price manufacturers. The big retailers
can get this more easily than the small one. As they have a great incentive to get the best
deal in the store part, than a small distributor, manufacturer, and the big retailers took
advantage of their negotiation of the transaction which is a part of a big opportunity.
b. Logistics:
Store retailers try to manage the store and shelf at the lowest possible cost. From major
retailers and distributors to increase efficiency, it depends on the integration.
c. Relationships with customers:
Retail industries are trying to find a way out to achieve a good level of customer service
with minimum effort. Some aspects of pricing particularly retail prices are prevalent in
this business.
d. Different prices:
The selling price to the consumer occasionally is very visible with hidden discount.
Different retail formats can mitigate the competition between dealers. Individual
purchase any other customer was a collaboration between the clergy to justify too small
because, as a rule, on the other side of the economy in other sectors with respect to the
consumer between the price discrimination against consumers for resale. This is a
specific price discrimination offers discounts on consumer markets and retail customers
with other options like manner (for example, trade-ins, as well as credit operations by
14
the end of season sales, etc.) is selected, tend to think about the design features are
implemented is another option.
e. Variable mark-up:
Retail, more than in other sectors of the economy, retail sales of bundles of products and
carry a large selection of products subject. If the product is relatively cheap to buy,
consumers have strong incentives to buy, around, but some products will not be retail
(one for purchases) prefer to go by them. Under these conditions, Bliss (1988) said that
several products retailers, as a rule common to all products, highlighting the percentage
will do everything possible to not show installed, but the low elasticity of demand for
products with high mark-ups are preferred, and vice versa.
f. Loss leader:
When choosing between multiple retailers and consumer goods, the quality and prices
of individual products were very vague idea. In this case, the consumers want a good
product at a reasonable price range and trading on their reputation is based. Under these
conditions, the general earned a reputation for low prices in one of two options are the
loss leader. The number of key positions at a low price and then promote these products
and prices, and retailers of these products at retail prices to encourage consumers to
compare. Best of loss or other retailers in the market in terms of capital-ROM cannot be
looted.
g. Price ceiling:
Some manufacturers suggested that retail price of the retail market (EIA) provides the
use of RRPs to facilitate competition between retailers can work together simple that it
focuses on the price offer.
Since there are many products on the market RRPs, but certainly not enough for a
relationship to offer the price they are still a little bit. In addition RRPs relatively
competitive prices too high can be in the retail market, in order to curb.
Terms intentionally brand products, some retailers that consumers in the future if the
same product cheaper to find a place, and differences in order to take the best deal
around between retailers, the need for consumers to find lower-refundable.
15
In addition, the sale prices competition, as well as other sectors of the economy is spicy.
Without competition, the importance of various aspects of competition between retailers
(location, range, retail), all actions between the retail directly are to suppress price
competition.
2.5 The concept of consumer technology:
Be the divided leaves of consumer knowledge in two broad categories: friendly and
professional, with experience in product development and shows the amount of
experience in a friendly successful product (Alba and Hutchinson, 1987). In Park,
Mathersbaugh and Feick (1994) notes, consumer experience leads the product class to
an increase level of expertise in the acquisition of experience. 'Experts' knowledge of
their structure and selection of test questions and how an understanding of the two
"starters" can be divided into easily. Experts have more knowledge about the product
category. In addition, experts have chosen and rated the product, and they lead a
beginner or more properties (Mitchell and Dacin, 1996).
2.6 The UK supermarket industry:
To understand the relationship between supermarkets and sustainable development the
major part in the first, is a summary of the corporate strategy and business environment
is important. In the 20th Century, has given the food distribution and wholesale market
to address the way the manufacturer. Supermarket - an integrated retail agency could, in
turn, increases. In Britain, supermarket bread, milk, fruit, meat markets, at least
captured three quarters. Food service industry, especially fast food, but also gain in
importance until 2020, consumers spent on food by 50% to 30% of current share capital
is expected to grow from.
In the simplest model of supermarket products, meat, bread and other food products
under one roof, discount prices, major procurement and distribution logistics for the
center of a separate division and self-service shopping center. Nevertheless, the sector is
heterogeneous. Other company like a supermarket in the UK, targeting specific market
segments and is in the desired format. Again Somerfield which is dominated by
concentrating small and medium businesses and convenience, "replenish" segment with
the same deep discounters Lidl and Aldi and a limited number of brands in C2DE social
class is designed for consumers a full range of Sainsbury, Asda, Tesco and Morrison
16
stores the edge of large villages are often a common format, and production to the retail
market, including Waitrose and Boots.
For example geographic focus of Waitrose and Sainsbury `s has a strong presence in the
south of England, again Asda and Morrisons in the north of the fort unevenly same. The
presence of national networks is a relatively new phenomenon.
Another feature of the modern model of a supermarket, not arm’s length relationships
with suppliers are height adjustable food chains linked together. Who works at the
supermarket to its source, its quality assurance and tracking purposes, and reduce the
supply base to attain expected to continue, some manufacturers try to reduce the number
of agents. Stream processors, supermarkets and retail trade, government, in cooperation
with a high level of support and other free-market agriculture in state agricultural
protection and or with a group that combines the advantages of commercial agriculture,
the large end of the changes for granted. Supply chain management (i.e, the maximum
profit at minimum cost to achieve the right mix of products) are outsourcing production
of its suppliers. In general, participation in the distribution chain to the "rules" at the
setting, a leading provider of a new strategy of packing or unsold as taking
responsibility for the production of output to the profile of product categories evolve,
grow, he can risk. The concentration of the chain structure, the most power and leverage
at the end of the supply chain of retail presence, the benefits for customers and
shareholders are available. In these circuits the "inside" relationship marketing, product
quality, brand image and prosperity through investment can be separated, but decreased
in many cases, the supermarket chain actors between the upstream and the total residual
value.
Symptoms of own brands (Wrigley and Lowe, 2002), "competing forces to move the
sleeve heavily in favour of in the 1980s," British retail revolution it your own brand on
the high margin contributions from gross income or profit. Own brand in the UK earn
up to 40% market share of the highest in Europe. With a retail shelf placement and
packaging of brand manufacturers as the brand is now competing head. However own
label is not only a money maker it also improve its image on the label and customer
loyalty.
Finally, retail, and many people in the immediate vicinity of the end-user supply chain
management is to facilitate the development of complex information systems. Point-of-
17
sale scanners (POS data) are obtaining information about consumers with a source of
competitive advantage for retailers and chain "insiders" - Category Manager - with
whom to share.
2.7 The strategy of Sainsbury PLC
2.7.1 Sainsbury PLC:
Sainsbury's is best known as a supermarket retailer. J Sainsbury PLC is the parent
organization controlling these operating companies: Sainsbury's Supermarkets; Shaw's
Supermarkets; Sainsbury's Bank; JS Developments, and Sainsbury's Property Company.
Sainsbury’s have a brand, quality and price is, as well as views the high level of
customer service. But, of course, all sold at the supermarket own brands (Sainsbury,
Tesco, Safeway, Asda, etc.) and reflection, but also in its own brand. These are usually
owned by large food manufacturers; for instance, the following brands are owned by
Nestlé: Buitoni, Libbys, Nescafé, Nesquik, Shreddies, KitKat, Vittel and Perrier.
Sainsbury popular brands offer high profitability of exhibition space, and manufacturers
of those brands want to be associated with Sainsbury and shops in the "best" place to
compete.
The companies also have other non-competitive high-street brands and want to form a
partnership. In 2002, the import of its boots in the number of shops in the village totally
depend health and beauty and pharmacy. "Nectar" loyalty card link Debenhams, BP and
Barclaycard in Sainsbury is a brand of justice. It is no coincidence that these companies
are looking to their advantage, with each other. Some remarks on the banks of this
"compensation" by collecting data about their customers than the big companies, it is
unethical, but it was important.
Its own brand name Sainsbury, the company name was used for product development.
This approach and organic products, these countries have been applied to other product
lines such as: Sainsbury brand is also diversifying into the retail banking market, which
was used to gain a competitive advantage - because it was copied by Tesco move.
18
2.7.2 Nectar loyalty card:
The relationship between dealers and customers in an effort to strengthen customer
loyalty program shows strong interest. But how effective are these programs?
Surprisingly, given the current popularity to distinguish the evidence. Established
overall picture of loyalty in a competitive market research of loyalty programs, in many
cases, it works hard to recommend the outstanding benefits we get. In addition, the
differential gain slope of the forces of competition is removed too quickly.
Fill to the introduction of loyalty programs, the administrator (development, marketing
and operating costs are included), and expenses, compare the benefits of the program
realistic assessment of the relationship of rhetoric to the costs at the expense of
marketing. Difficult market conditions, we are here to claim the best chance of success,
loyalty programs, product or service should improve the overall value proposition. This
setting will motivate buyers to purchase a product, then the series of offensive and
defensive marketing strategies and other aspects of support.
The most popular loyalty program customers, the retail portion of the plan specialties
are often circular. These and other well-groomed and well maintained, so that a loyalty
program which was initially hailed as a creative way, but in recent years more and more
doubts about this assumption is poured. They were together with titles such as academic
and trade press have criticized the "failure Competitive Strategy," "War on the market:
fighting for the turbulence hit points" - the failure of "commercial provision of cycle,"
which will be to improve loyalty.
Nevertheless, loyalty marketing company practice, their loyalty to the former, what is
required. It is much easier for large companies is less. Increased customer base
marketing and market research in the absence of personal knowledge must be used.
Every year more and more advanced technologies of computer databases to control the
behavior of customers and the company's ability to do so. This technology is used by
retailers and manufacturers of packaged foods can be used to effectively target products
and services and marketing resources to be allocated to achieve maximum profit. In the
business market, leading companies customer profitability analysis (type) to calculate
the customer value of life. They are more complex and costly process.
19
Sainsbury is Debenhams, Barclaycard and BP started in autumn 2002 with a card shop
one of the founders of juice. Sainsbury Nectar rewards program for the replacement
card.
Customers at Sainsbury every £1 in the online stores you can get 2 points Nectar spent.
co.uk, Sainsbury spent every liter of fuel at the gas station with a maximum of 4 points
for 1 nectar points at all, unless you have a credit card and Nectar loyalty card at
participating Nectar sponsors to use purchased for £1 each 2 point (Dell, Amazon, eBay,
Argos and others) online at Nectar e-Stores sent.
When nectar points in Sainsbury consume or save, movie tickets, spa, theme park rides
and a variety of luxurious relaxation and attractions Tussauds can be redeemed for
prizes. Points are also can be used to offset online.
2.7.3 Advertisement:
Advertising is a form of communication products, services and ideas to persuade all the
tasks related to customers (viewers, readers or listeners) will be used. In most cases,
despite the political-ideological advertising provided in connection with the commercial
management of consumer behavior is rampant about the desired results. Advertising
message is typically paid by sponsors such as newspapers, magazines, TV spots, radio,
outdoor advertising or direct mail or the Web sites and media to new media such as text
messages, including a variety of traditional media, you can: Advertising a product
personal values. It connects these services are clearly the benefits of moving to each
advert to the consumer in understanding the evolution leads to the desired target state. It
consumers must include a message or meaning. Model if they buy a business, its six
steps to move the consumer or buyer will assume that the steps are as follows:
20
Awarenes
s
Knowledg
e
Liking
Preference
Convictio
n
Purchase
2.7.3a Promotion:
A study by Simonson et al. (1994) suggests that the probability of selection depends on
the product in advance (without increasing its price), as this could cause a statement
about the costs and it shows that the additional funding that is not on utility products is
used, and not increased their price could adversely affect the acceptance of products. In
other words, the properties of the product and the promotion show a degree of
consistency. Thus, the preferred type of support depending on the type of product is
offered with. It outputs a "perfect product promotion," a combination.
Sales promotion is another way to advertise. They are used to collect this information
because it developed into a double-promotional, customer, and where they are taking
what you collect and jump start sales. Our promotional contests and prizes, Raffles,
prizes, product samples, coupons, loyalty programs and discounts to include things like:
Take measures to promote the ultimate goal is to stimulate potential customers (Bhatia,
2000).
By Quelch (1983), sales promotion differs on the role and nature of advertising. Sales
promotion is usually regarded as easy by raising short-term sales are made, while
advertising is perceived as a brand. In many cases, profit is the focus on price rather
than brand. The costs vary directly with sales and thus incurred on a pay-as-you-go
basis, with less financial risk than the cost of advertising. As a sales promotion, often at
a discount, they are called "below the line" activities - that is, discounts directly affect
profit. Advertising, on the other side, typically sends information about the brand to
take advantage of the product identity and loyalty to highlight cement brand. As
advertising as an expense in the profit and loss account is called the "higher-line"
activity is logged.
Impact on the brand value of the constant increase in the sales promotion was assessed
in an international study of the share price. They found that there is little, if a global
approach in the sales after six weeks, the stock price. Thus, the use of sales promotion
for customers has to change the brand to attract any long-term impact. Second, it was
found that most customers for sales promotion, existing users of the mark, therefore, not
only companies, discounting their product, but in some cases, the inclusion of their
future sales. Finally, the stock price the customer is use as training only as a selection
21
criterion, moving the attention of consumers from other attributes that can be viewed as
creating a brand seen.
Celebrity chef Jamie Oliver appeared on television and radio ads and in-store
promotional materials, since 2000, Sainsbury's public face. The deal is expected to firm
£1.2 million professionals every year itself, Sainsbury `there are food recipes from
Jamie's new impressive development.
In 2003, some sources are already in the `generate additional revenues over one billion
pounds, the company's turnover of £200 million (an annual magazine, Sainsbury's).
Sainsbury's claims Oliver as an advertising industry.
2.7.4 Price wars:
The price war Sainsbury PLC's offer worth more than £20 including food basket of
branded products to its customers "zero effort" to join the battle on. Or Asda: Customer
Tesco PLC (TSCO longitude) were able to buy cheaper products in the yard across the
supermarket price war against the supermarket chain to open a new front in the "fire
play" promises a refund of the price difference between brands.
Large supermarket group Asda and Tesco have already pricing in order to operate an
Internet-based service during the past year were in each other's throats. Generate the
same returns in the calculation of the coupon could get a voucher because you do not
need online, including 12 000 items of his plan, has the advantage Sainsbury said.
"The consumer review period, eliminating the need for: Sainsbury's Group Managing
Director, Mike Coupe initiative customers" really, "he said, they are a lot of it is
effectively 12 degrees more than 1000 products related to the grocery store rival, it was
meant to get the price Sainsbury’s PLC mathematics to work at home computer, or print
coupons waste input, so they should not be "independent of the writes.
2.7.5 Product Quality:
Quality control, sensory evaluation and development:
Quality food is a priority for Sainsbury’s customers. There is a place of quality control
of the food in retail business where they develop the new food products in three
22
different steps for quality assurance. These are quality control, sensory appraisal and
development.
Quality management, the newly developed products used in the new selected product
managers and buyers sensory evaluation, current and new product development as well
as for the consumer to think they know what it's like in the focus groups identified an
interest in food center food trends, new recipe ideas (www.sainsbury’s.co.uk).
Based on the foregoing discussion from the review of the literature, the researcher
selected five factors to consider in detail: product quality, price of the product, customer
service, promotion, loyalty card. Along with these factor store atmosphere, store
personnel, crowding, parking and weather conditions also influencing people to shop at
Sainsbury’s PLC. Although, for example, frequently occurring events are well known to
customers, they can also be negative for high-dimensional factors (e.g., problems with
parking in certain locations). Thus, to avoid responses are likely. In addition, the event
is rarely perceived as a "pleasant surprise" to bring about positive affective reactions
and behavior approach.
23
Chapter 3
Methodology:
3.0 Introduction:
In this section a description of different research processes and different approaches of
research and data collection methods will be discussed. Moreover, it also mention about
sampling methods and ways of collecting data to find the different factors that influence
people to shop at Sainsbury’s. Based on the data collection, an assessment and analysis
of data from a number of difficult issues will be discussed in the next chapter. This
chapter discusses the limitations that researchers face while doing this research and
development.
3.1 Research philosophy:
Research philosophy is to develop knowledge and contains important assumptions
about how people view the world. Saunders et al. (2009) argued that a research
philosophy is not necessarily better than others. Instead, the authors argue that the study
of philosophy, does the researcher should focus on the question that the researchers
from looking. . According to Saunders et al. (2009) there are four different
philosophies, pragmatism, positivism, realism and interpretivism. Pragmatism
philosophy, offers mixed or multiple methods of design and research, both quantitative
24
and qualitative methods. This view is supported that it is possible to work with
variations. If we take a positivist philosophy, researcher will be with an observable
social reality of work and the end product of this research can be lawful generalizations
(Saunders et al., 2009). Emphasis on quantitative observations will be placed in the
statistical analysis. Characterization of positivism is to hypotheses based on data
originally collected to test in-depth interviews.
The philosophy of realism implies that there is a reality independent of human thoughts
and beliefs. Credibility of the similarities go positivism, both of philosophy from a
scientific approach to the development of knowledge (Saunders et al., 2009). The
selected methods should be connected to the subject either by quantitative or qualitative
research method. Last philosophy, interpretivism, suggests that important for
researchers, the differences between people in our role as social actors understand. The
researchers argue that interpretivism world is too complex to be able to make a law like
generalizations.
There are many reasons why an understanding of philosophical problems is important.
Easterby-Smith et al. (1997) identified three reasons why the study of the philosophy of
its importance, can with a particular emphasis on research methodology:
1. First, it may help to clarify the researcher, and specify the research methods in the
study who used to say to all the research strategy to determine use. These include the
type of evidence collected and its origin, as such evidence is interpreted and how it
helps to answer the research questions.
2. Secondly, the knowledge of philosophy and the study will help researchers to
evaluate the different methods and techniques and to abuse and unnecessary work by
avoiding the limitations of particular approaches at an early stage.
3. Thirdly, it may help the researchers to creative and innovative adaptation or
selection, or the methods that were previously outside his or her experience.
This dissertation will adopt a pragmatism research philosophy. This perspective is
appropriate in the field of marketing sector. The researcher uses both the qualitative and
quantitative research for the further development, which confirms that it is possible to
research with variation.
25
3.2 Research Model:
Selecting the appropriate research model for conducting the will be helping the
researcher to collect data. A process from the results of this model is shaped by the
defendant, and the qualitative and quantitative analysis and its use can lead to validate
research.
3.2.1 Research Approach:
After choosing the research model, it is required to think about research approach of
data collection for the research and the research questions must be met. Description of
this research is the construction process. In this study, the researchers used a deductive
approach to research. According to (Collis and Hussey, 2009), it can be said that the
deductive study is a conceptual and theoretical framework which is observed
empirically tested and in this way it is cut at specific sites in the form of general
conclusions. This method in general is to promote research and understanding of theory
and then theory is based on the assumption that development. Research approach is
inductive research methods to perform a simple objective interpretation, it is a problem.
This search method is more appropriate in this case from the data collected and
conclusions on the basis of the theory can not be good for other conditions.
3.2.2 Research methods:
For the evaluation of the price awareness along with the other various factors related to
the consumers in the retail market need to use an appropriate method of research.
Jankowicz (2000) argued that a research method is a systematic manner so that the
information needed to manage data collection and analysis to define adoption. A good
amount of research is needed to process information. This is the collection of data and
appropriate analysis of the research objectives of systematic way for this information to
understand. It is a tedious task, view and manages the resources available information
so it cannot get the best value."
Researchers are there to evaluate various fields of research objectives that may be useful
to determine the need to create effective discussion. This discussion will lead the
researchers to select the appropriate method which is totally dependent on the data or
26
information from the process. This research is going to use the two methods; one of
which is qualitative method and the other is quantitative method.
3.2.3 Sampling Methods:
The method of data collection for this study was to distribute questionnaires in two
parts- customers and the managers of Sainsbury's PLC. Both of them are paper
questionnaires. The researcher provides the questions to the customers and the managers
and also asks the management frequently different questions relevant to the topic.
Questionnaire answered instant by the customers and the management team. A total of
100 customers were successfully answering the questions. Unacceptable forms contain
returned empty or incomplete answers. Previously, an online benefits of spatial and
temporal independence and privacy, and induced a response of a sample in a short
period of time. Individual scenario was also used for smoothing method of questioning,
to prevent items from the lack of problems and reduce the likelihood of confusion.
Study questionnaire was divided into two parts. The first part was conceptual
dimensions include technology adoption factors, the quality of the product, customer
satisfaction and loyalty. The last part of the respondents said basic information about
themself and how often they shop in Sainsbury's and what they want. The researcher
also analyze the collected data to determine the respondents' demographic variables
(gender, age, education, occupation, income etc.), significant differences in their effects
were on the conceptual model sizes.
3.2.4 Quantitative research methods:
For the testing of the hypothesis quantitative analysis is to be used such as quantitative
format is required for the representation of the information. Quantitative method deals
with the numerical values and the researchers use the statistical and mathematical tool
to prove the result obtained. This research method is not suitable for each and every
research. It is definitely suitable for the science related subjects.
This study considers an interview of 100 respondents from Sainsbury’s PLC for
creating an evaluation of the quantitative analysis for evaluating different factors that
influence them to shop at Sainsbury’s PLC. The quantitative analysis is based on a
thorough analysis and created the final discussion in this article in the fifth chapter.
27
3.2.4a Reasons for choosing quantitative methods:
Quantitative research is based on the specific characteristics of the main reasons for the
population as a clear idea of what people learn. It is specially designed to produce
accurate and reliable measurements that allow statistical analysis.
Quantitative research is not suitable for measuring attitudes and behaviors. If the
researcher is how many people use a product or service, or are interested in new ideas
and want to know if the quantitative research assistants. It is used as market size,
potential business, or volume, and the importance of measuring the size of the estimate
and the existing market site.
Quantitative research based on common characteristics of the people you need to use a
group profile. Improvements, such as regression analysis, correlation, factor analysis,
cluster analysis and statistical methods used in quantitative research models to predict
whether a particular view one way or create a work can be based on observable
characteristics.
For quantitative research is not profitable to know why people act the way they think.
Questions should be direct and easily quantified, and the sample is very large (100 or
minimum 75) is needed to enable reliable statistical analysis.
3.2.4b How to use quantitative methods:
The quantitative research method is used when researchers deal with numbers, data or
statistics. For example, when noting that the researchers say 33% of the population has a
quarter of the population, some, or perhaps can say that they do not want anything else.
In this case, use quantitative research.
There are two methods- qualitative and quantitative are used for this research. This
method is very important and helpful for both the company and the customers.
Quantitative method is used for the information on the various factors that affect the
customer. The researchers used questionnaires to collect information from customers.
Research data were collected, where each respondent has given a different answer to the
questions.
28
3.2.5 Qualitative research:
In addition, qualitative analysis is used for the various stressors, such as issues related to
knowledge, ideas and build a plan to create an effective marketing and customer
development for Sainsbury PLC as a hypothesis is developed. In case of qualitative
methods of research, the researchers go through a great deal and of the results obtained
are descriptive in nature. We sometimes want some of the results descriptive rather than
numerical data sets. There are many occasions when we have or do not want to count
the number of specific social characteristics of the interaction, but the use of qualitative
research methods, feelings, attitudes, beliefs and motivation, unobservable, and check
the fluid and intangible factors that explain human behavior. Functional analysis of the
relevant research areas and researchers are to detect and evaluate the various factors that
influence people shop at Sainsbury PLC to create more opportunities.
3.2.5a Reason to choosing qualitative methods:
There are several considerations when deciding on a qualitative research method is
adopted. Strauss and Corbin (1990) argued that qualitative methods can be used to
better understand this phenomenon, which is still little known. They have a lot of things
already known about, which is, or to obtain more detailed information can be difficult to
express in quantitative terms, the new approach can be found. Therefore, qualitative
methods are, where you can be the first to identify the variables that need to be tested
quantitatively appropriate, or where the researcher to determine the quantitative
measures are not sufficient to describe the case.
3.2.5b How qualitative method is used:
When the number of qualitative research is needed, however, Views, Beliefs, attitude or
purpose is required.
Qualitative methods used in the company's management when they have different
reasons for what they have personal reasons to think about the information provided on
company policy. The researchers managed to Sainsbury PLC and the company collects
information about a variety of reasons.
29
3.3 Sources of data:
Due to the nature of the research, the data is collected from both primary and secondary
research. The digital marketing tools for the collection of secondary data collected from
various sources. The library is the source for the best. Basic information about the 100
respondents' current management team, customers and clients to identify factors
affecting the Sainsbury PLC-based interviews were collected. It was the experience of
stressors and judgmental analysis of the Sainsbury store is affected by the use of basic
information to identify appropriate.
Advantages and Disadvantages of Secondary data: There are some advantages and
disadvantages of secondary data according to Aaker et. al. (1995).
• Advantages:
• A lot cheaper and quicker to make than the original research.
• The researcher can choose from a study of some of the leading scholars in their field,
which provides the main benefits of data quality.
• If the researcher has limited resources and time, other tests may be used samples
from larger populations.
• How long have the researcher previously collected data in a flexible manner.
Researcher can use the data in a subordinate role in the research, or even a central role.
• A network of data archives in the survey are compiled and distributed, readily
available, so that studies are readily available for secondary analysis.
• Disadvantages:
• Since many of the studies relating to national population, if you are in the study of
well-defined minority subgroup you have a hard time finding relevant information
concerned.
30
• Secondary analysis can be used in an irresponsible manner. If the variables are not
the ones you want, the data can be manipulated and transformed in a way that can
reduce the duration of the original study.
• Much of the research, especially in large samples, it can be difficult for large files
and statistical packages.
In addition, secondary data are used for the analysis of relevant research and criticism,
and more options are available to further discuss the various causes of this issue. It also
plans to issue a statement of work for Sainsbury PLC and how things are under
construction, there are also more suitable for determining when to sell.
3.4 Data collection methods:
In order to collect and display a variety of factors led to this interview and the interview
was, for further evaluation - based on the depth of analysis. Next step is to identify the
target for equipment design requirements to the survey interview. Survey of nine
questions all together. In an interview to discuss relevant issues and how much of an
effective communication plan was developed. Respondents on the research topic,
particularly in regions where they are relevant to all respondents, the research results
can be expected to know that they have been selected based on the sample.
3.5 Method of Sampling:
Sampling methods of random sampling is used for research. 100 respondents were
randomly selected Sainsbury PLC and customers to share their knowledge, "Probability
sampling, methods to calculate the probability that a sample of the population of each
object is not on the basis of" reasons to shop at Sainsbury PLC. This strategy typically
results in a more convenient and useful information can be acceptable.
3.6 Validity and Reliability:
The process of gathering information from various sources, it is useful to determine the
source of legitimacy. Honest and reliable information about the validity of the data and
to provide a reasonable source of information about the research question can be
considered to be satisfied. It appears many do not jeopardize the care of the company's
products and image creation may be difficult to do. In this study, various contact
31
information and that the company plans to effectively research and analysis to consider
the reliability of the information.
32
3.7 Limitations:
Some time researching and more time to the customer's ignorance and false information,
including an assessment of the obstacles. The survey was conducted challenge for this
research to create efficient data collection for a limited time. But the researcher and
their understanding of the limitations in the relevant area from Sainsbury PLC data this
restriction reduce its own contribution.
Finally, this chapter research methodology of this research, which involves many fields
of research methods, including data collection methods is useful for the interpretation.
Researchers in this action-based research and research findings to the risk of error, you
can increase the value. Qualitative research is to better to assess the quality of
information, a digital marketing and quantitative research to be considered for further
assistance. Finally, Sainsbury PLC does not identify those who are good reasons for an
order for research there.
This is a potential barrier to care and research methods of data collection strategies to
overcome constraints. Finally, a digital marketing tool for evaluating the collected data
is valid and reliable formula to make the payment. And the sample size is sufficient
information to support successful research results available, and not as a result of
Sainsbury PLC valid and reliable for identifying the impact of factors. Primary and
secondary data to investigate researchers more about the different components
considered various factors, and effective research plan.
33
Chapter 4
Context of Research:
4.0 Profile of Sainsbury’s PLC:
J Sainsbury PLC was founded in 1869 and now it runs a total of 934 stores comprising
557 supermarkets and 377 convenience stores. It jointly owns Sainsbury’s Bank with
Lloyds Banking Group and has two property joint ventures with Land Securities Group
PLC and The British Land Company PLC.
The Sainsbury’s brand is built upon a heritage of providing customers with healthy,
safe, fresh and tasty food. The main responsible of the business to the customer is
providing quality food with fair price. Each store has a specific importance on fresh
food and they struggle to develop continuously new products for their customers.
Over 21 million of customers now doing transaction in a week in Sainsbury’s PLC and
they have also over a 16 percent of market share in the retail industry. From the web site
of Sainsbury’s PLC around 93 percent of UK household are selling and they have also
free home delivery service. So shopping is now very easier for the customers.
(Sainsbury’s PLC annual report, 2011)
34
Sainsbury’s values are core to the way to perform the business. Very carefully and
ethically Sainsbury’s trade with their products and the most important part is that they
do not compromise on the quality of the product and value. For this reason Sainsbury’s
PLC always remain in the heart of every people.
In this challenging economic condition Sainsbury’s have done a great perform. Last
few years Sainsbury’s total sales were increase up to 4.9 percent and this was happen
during the recession period. Per week they are now earning 21 million. Sainsbury’s
opened a lot of new stores and attracted more new customers with their attracting new
products and also with the help of their existing stores. In short, Sainsbury’s always try
to work hard to keep the prices as low as possible so that the customers don’t need to
negotiate with the quality product or their choice product (Sainsbury’s PLC annual
report, 2011).
From the above discussion, Sainsbury’s marketing strategies can create a huge impact
for their business to increase the sales and attract new customers by creating new market
development in numerous areas.
Justin King, CEO of Sainsbury’s PLC announced in May 2010, that ‘Sainsbury's
pledged to involve each of its 850 stores in the promotion of the Paralympics after the
multimillion-pound deal with LOCOG to be the main sponsor of the London 2012
Paralympics games. Sainsbury’s will sell Paralympics merchandise and become
involved in high-profile events such as the torch relay. It will be one of only two
sponsors able to take advantage of the limited branding allowed within the games. The
promotional rights do not extend to the Olympics.’
In September 2011 Sainsbury’s PLC was announced that the "Try Something New
Today" motto will be replaced now with "Live Well for Less". After checking one and
half year’s business review they decide to change the motto. The motto will be staying
on the till receipts from 16 September 2011. On 30 November 2011 Sainsbury's reached
the first milestone. Now Sainsbury’s new vision is vision 2020 which starts by opening
their 1000th store in Irvine, Scotland. (Sainsbury’s PLC annual report, 2011)
Sainsbury PLC is one of the major retailers in UK. A few years ago it was the most
preferred location for retail, but somehow it lost that position. Sainsbury brand healthy
food, safe, fresh and fruity with a tradition that was created to help customers. Quality
35
and affordability go hand in hand with the business responsible for the process. With
special emphasis on fresh products to Sainsbury stores, and continuously strive to
develop products to meet their needs. Progress towards the strategic aim of appealing to
a wonderful Sainsbury broader spectrum of customers throughout the UK by the
improved profitability has improved in the proceeding. Core values are saved to
Sainsbury. Customers, without compromising on quality or price in principle act
responsibly, and Sainsbury to expect, and this is still the core things that Sainsbury’s do.
Sainsbury is still the economic situation is better than to challenge the market. 4.9
percent of total sales (excluding fuel) up 2.3 percent, the same as for an increase in
sales. When the family budget this time of great strain, at least not from record oil
prices, inflation was under the time. 21 million customer transactions per week, now is
the all-time high. They are available in the shop but the shop is not only attracting new
clients, customers, reflects the universal appeal of energy. In particular, the hard work
of Sainsbury PLC as possible without compromising quality or preferences on the rising
cost of raw materials, even though our prices are lower.
Sainsbury continues to trade intensity increases the existing farm. This, however, was
still in the development of a new shop to sell more than offset an increase in the number
of phase-space of non-food and high growth years of experience in the application for
the extension ratio. Overall, it fell by the way, the intensity of the year to year. Years’
time customers spend in a week; they become savvier in their purchases and to manage
the quality looking for the little that Sainsbury’s can help. Where the leading brands on
the campaign to save the value of Sainsbury PLC, to check over 30,000 prices every
week and that the cost of competing in such a high standard and is supported by other
campaigns for the products offered by over 1,000, the £ 1 or less. It's a good value and
quality of our products and high quality has been recognized for many awards this year.
Sainsbury, a leading food retailer in the notice and a reasonable price, and their
ambition is to offer good quality food to customers' food and health for the better.
“Approach and to help encourage customers to promote a healthy and balanced diet
eating healthy food and active Lifestyle. From high-quality healthy food and a place
readily available to them, in addition, the company confirmed that they will be more
clear and easy to label people to help you understand the choices. Sainsbury
management and delivery structures to identify what worked and where you want to
compare, supermarkets and convenience stores are more differences between the
branches is relatively small. Importantly, they are placed in different regions of the most
36
important point is whether the investigation was effectively manage diversity
management. In addition to their work ethic, and colleagues of all parties, regardless of
the seniority of the need to complete the Enterprise view.
Sainsbury is a broad overview of the various barometers to help all levels of staff
focused on the monitor. Sainsbury's said, it is clear that the employees feel valued, and
it is pretty clear-cut succession planning and career development. Corporate
communication, effective teamwork within the shop floor is a summary for use. As
regards statistics for the past three years, they shot 10% improvement in employee
involvement. In the absence of management and improve their education with a high
level of the index. Talent management is more important and a very high standard to
continue, the potential development of their staff. Continuous improvement, staff
development is done through the power of Sainsbury’s energy and they do not shy away
from difficult decisions, and it is not a problem. Investors are to focus on actions that
help people in need.
37
Chapter 5
Findings of Qualitative & Quantitative:
5.0 Introduction:
This chapter describes some of the most important questions, and the results of the
survey. It also explains the various factors to more sales Sainsbury PLC and how it can
create a ratio of more customers. This chapter identifies the results of interviews and
observations on these clients and the results are based, are an assessment of the areas
that are important to effective engagement with the relevant areas of the various factors
that influence people to do in order to Sainsbury’s PLC Shop.
38
5.1 Qualitative Results:
This section wills analysis different factors that influence customers to shop at
Sainsbury’s PLC. Sainsbury’s PLC is doing business in UK for a long time with other
retailers and generating new sales and attracting frequently new customers.
In retail market Sainsbury was in the top most position but recently they lost this top
position in retailing. When the researcher ask about this question, the manager, Kevin
Murphy’s opinion was that,
“I believe that, other has opened more stores than Sainsbury’s. So the other retailers
get more profit from there and increase the sales and earn the top position”
(Interviewed on 27 November 2011).
Again for the same question another team leader, Aimee Fobah said,
“I think price perception as customers thinks Sainsbury’s is more expensive than other
shops. And customers are always looking for quality product in cheap rate so they want
to go to different stores to buy the same product rather than Sainsbury’s” (Interviewed
on 02 December 2011).
According to the management the reason behind losing the top most position in retail
market is that the businesses of the other competitors have been expanded by opening
more outlets and they are having more profits from that. Whereas other member of the
management argued that the reason behind this is that the products of the company is
too pricy; so this leads the customers to move towards the other retailers.
These are the two reasons but there might be some more reasons behind that. It can be
said that mismanagement in the corporate level, relationship with the suppliers, and the
relationship with the business partners might be some other reasons for losing the
position.
Price is one of the most important factors that help retailers to attract the customers.
Though Sainsbury lost its top most position in retail market but still it is the third
biggest retail store in the market. After recession customers spend more time for
choosing their daily needs. But the loyalty and quality of food attract the customers to
39
Sainsbury and these customers also informed others to buy the product from this retail
shop.
Now when the researcher ask that the price of the product of Sainsbury’s is
comparatively higher than the other retailers, Muhsin Mustafa, Duty Manager said,
“I believe customers demand quality goods at value price and excellent shopping
experience in store. So our quality products will attract more new customers and then
customer can decide the price of the product is ok or not” (Interviewed on 27
November 2011).
Another one Michel Leonard, team leader said,
“I think new customers believe Sainsbury’s is morally superior considering we are the
top store for fair trade, we also pride ourselves or better quality than the rest” (5
December 2011).
According to the management personnel it can be said that Sainsbury’s does fair trading
with their quality products and superior morality. Whenever a customer goes for
shopping he does consider so many things like brand, quality, price and moreover
customer service. Sainsbury’s deals with all these very fairly. In case of new customers
Sainsbury’s strongly believe that they will do shopping in their stores as they provide
good value, quality and excellent customer service to their customers.
Product quality is rapidly becoming an important competitive issue. Quality food is a
priority for Sainsbury’s customers. Sainsbury’s have in place quality control at many
stages of the food sector in the development of new food products, food company, is a
center in the three stages of quality control: quality control, Sensory evaluation and
development.
In quality control, new and newly developed products from managers and buyers of
samples in the sensory evaluation, focus groups are used to find out what consumers
think about the current and new products, and in the development process, the Food
Center is interested in identifying trends for recipe ideas food.
For example, when the researcher ask about the variation of the quality of the product
with other retailers, Duty Manager, Muhsin Mustafa said,
40
“Sainsbury’s stock thousands of products, sourced naturally and fairly. Provide
customers with quality products, similarly to other competitors. Probably better than
Morrison and Asda”(Interviewed on 27 November 2011).
According to the management the quality of the products of Sainsbury’s is good
enough. They have quality control support center where they control the quality of the
product and always try to develop the quality more as the customer expect.
It is not enough to have a company that sells good products at attractive prices. To
generate revenue and profits, the benefits of the products should be communicated to
consumers. It can stimulate a rapid increase in sales through targeted promotional
incentives for certain products.
Each retail business depends on customers for its survival. To encourage customers to
use the retail business should know who their potential customers can and what they
want. Understanding, recognition, forecasting and customer satisfaction is the focus of
marketing. Promotion of such retail businesses
the customer aware that the products have to sell them and buy where they can. This
device consists of two major areas of retail business.
Now when the researcher ask that how do the promotional offers affect the customers as
well as the company, Kevin Murphy, the Manager said,
“I think Due to current climate, people do not have a lot of money. Therefore they shop
special offers more than the other products. And now we have different type of
promotions in our products for the Christmas” (Interviewed on 27 November 2011).
Again Muhsin Musfata, Duty Manager said,
“Promotional offers are proven to drive sales with fewer profit margins but increased
the volume of sales that helps the business. Customers benefit from these offers with
reductions or multi buys that is Buy one get one free, 3 for 2, Meal deal etc”
(Interviewed on 27 November 2011).
Now a days promotional offers are very important for customers. They always want the
best quality product in cheap rate so they always look for the promotions when they go
41
for shopping. As well as it is also important for the company too as they can drive the
sales with a good profit that help the business to develop.
With loyalty and rewards programs can help customers to get business to hire and retain
customers. Offline, traditional retailers are offering these types of incentive programs to
increase sales by encouraging repeat business. More importantly, allows the detection of
background management loyalty program, which is the customer, and to continue and to
build a demographic profile of the customer. Around 10.2 million Sainsbury’s customer
have a Nectar Card.
Nectar used their knowledge of what customers had previously bought to customize the
recommendations they made to them. ‘’How does the loyalty (Nectar) card play a role
in customer relationship management?’’ when the researcher ask about this to the
management, Muhsin Mustafa’s point of view,
“Loyalty card (Nectar) encourage customers to shop at Sainsbury’s regularly.
Company gets more customers and customers also get some value from the card”
(Interviewed on 27 November 2011).
Again Aimee Fobah believe that,
“It is more incentives to get them to shop more with us by giving coupons, vouchers”
(Interviewed on 02 December 2011).
According to the management loyalty card is important for the customers. It encourages
more the customers to shop in their store. Customers can get quality product by
vouchers or coupons and they can realize the loyalty of the company. They also think
that it a good step for the company to become more loyal to the customers.
Customer service is the total activity of identifying and meeting customer needs. High-
quality customer service is an important way in which companies can be different from
others. Sainsbury's customer service strategy is simple: to provide for better customer
service, developing the best trained and motivated colleagues in an environment in
which the upper large supermarkets compete for market share. Its experts are working in
a retail bakery in Market Street; Sainsbury’s to ensure that customers receive the
personal service of a trained professional. By creating a high level of customer
satisfaction, Sainsbury’s creates a distinct competitive advantage.
42
To provide the best customer service, a business needs to know what its customers
expect of it and then meet these expectations. Customer satisfaction is vital for keeping
customers happy and loyal to the business. It can often be much more cost-effective to
retain customers than to attract new ones. Sainsbury’s achieves this by offering products
and services.
Again when the researcher ask about the customer service and its affects in sales, profit
and attracting new customers Duty Manager, Muhsin Mostafa says,
“Great customer service is the key to maintain our customers and attracting new
customers. Best advertisement is “Word of Mouth” – recommendation by customers to
friends, family and work colleagues” (Interviewed on 27 November 2011).
Another one Michel Leonard, the Team Leader said,
“Extremely important. If customers have a good experience in store with friendly,
helpful staffs they are likely to shop there again. And brings their friends and family”
(Interviewed on 5 December 2011).
And from the Manager, Kevin Murphy’s point of view “Customer service is a key in
keeping customers returning to store” (Interviewed on 27 November 2011).
According to the management customer service is a very important part of the business.
It is the key to maintain the customers and these customers can bring more. It also helps
to increase the sales of the business.
From the collected data it is evident that some contradictions have come into focus
about the pricing strategy of Sainsbury’s PLC. Sainsbury’s motto is “Live Well for
Less.” Customers think that the price of the product will be cheaper but when they come
to shop they find the products are too pricy. They complain against this. But when the
researcher asks that the Motto is contradictory with the price of the product the
management says that “Live Well for Less” doesn’t mean that the products will be of
very low price. According to the management the price of the products is marginal.
According to Muhsin Mustafa the Duty Manager,
“Every product has a value and “Live well for Less” does not mean cheap. High
quality products at good value price” (Interviewed on 27 November 2011).
43
Another respondent, Aimee Fobah states
“No. We got better quality products for the price when other retailer’s quality is very
poor” (Interviewed on 02 December 2011).
Other respondent, Michel Leonard speaks that,
“I think sometimes this motto does not transfers well to convenience stores bur main
stores show it well” (Interviewed on 05 December 2011).
According to the survey most of the customers are saying the price is too high but
Sainsbury’ do not compromise with the quality of the product. If customers want to buy
the same quality product they have to pay more. There are other retailers also provide
the same quality products with a high value price. So Sainsbury’s motto gives a clear
understanding for their consumers.
Along with this contradiction news came on The Times (10 November 2011) where the
headline is ‘People think we’re just too pricey’ and the chief executive of Sainsbury’s
PLC, Justin King talks about it. Shoppers still think that it is up to 10% more expensive
than its rivals. Traditionally Sainsbury’s has been trying to improve its price reputation
to boost its universal appeal. The management team of Sainsbury’s Clapham Old Town
also agrees with that and they also believe that the products are not pricey.
When the researcher ask about the opinion on this news to the Manager, Kevin Murphy
said,
“Whilst some price may be high, with average shop over a week. There is not much
difference in price” (Interviewed on 27 November 2011).
And the Duty Manager, Muhsin Mustafa described this that
“Due to intense competition and cut price caused by the economic crisis it may seem
more expensive. Some products are cheaper, others are higher than competitors and
that goes for all other companies” (Interviewed on 27 November 2011).
It can be said with the tune of the management that though some of the products are
pricy, some are cheaper. So the customers in average will get good value for their
overall shopping. It apparently seems that the prices of some of the products are too
44Appendix 3: The Times
high. It’s not only for the Sainsbury’s but it is also true for other companies. The reason
behind this might be economic recession in UK.
From these points, it is important to consider the customers demand. By providing a
great customer service, quality product with reasonable price, clean- clear and easy to
shop at stores Sainsbury’s can identify the customers demand. So with a great customer
service if Sainsbury’s also look after their stock availability they can do well in future as
customers wants to find what they wants in a pleasant environment served by friendly
staffs.
5.2 Evaluation:
From this qualitative analysis some key issues were found which are very important for
Sainsbury’s. If they take these necessary steps they can attract more customers to shop
there. Sainsbury’s can control their stock availability and great customer service. If
Sainsbury’s have available stock of their product in store then customers are always
come to the store to shop as they constantly want a pleasant environment to shop and
served by friendly staffs.
It is also useful for maintaining relationships with customers is the requirement to
communicate with customers directly or through interactive media or survey to take
(Berndt et al., 205). They can also focus on some marketing tools, to create a more
direct communication with customers and increase sales more.
Sainsbury’s is planning communication, where it can be a number of test marketing that
you can easily find companies, customers, and can create greater value for their product
and do to increase your income. Maintaining high quality services and products, it is
important to make a sale and it may create more customers. From this study, many
respondents focus more on increasing the monitoring of their quality and price, given to
reduce errors.
5.3 Quantitative Results:
In this section, the quantitative results of the 100 respondents surveyed Sainsbury’s
customer that provides an assessment of these results with the help of a literature
review. Based on this assessment is made and some charts and graphs will be created on
the basis of frequency tables. This statistical presentation is good to create a more useful
45
assessment and provide a good assessment of the various factors that influence and its
effect on Sainsbury `s.
Based on this analysis, the researchers can test hypotheses, and create more interest
from readers and a critical discussion to answer the research questions. This will make
the study more critically and identify important factors. Sainsbury’s PLC has more of
these areas, allowing it to identify some quantitative data.
Table 5.1: Age limit of sample respondent
Age Frequency
20-30 17
31-40 40
41-50 25
51-60 15
61 and above 3
Figure 5.1: Pie chart of Table 5.1
Analysis:
From the above figure, 17% of the 20-30 years respondents accepted that the quality of
the product is good and the price of the products is affordable. Again 40% of the 31-40
years respondents believe that Sainsbury’s product quality is very good and the price of
the product is cheap. These respondents always want to shop at Sainsbury’s. Another
15% of 51-60 years and 25% of 41-50 years respondents accepted that the quality of the
product is good but it is expensive and the rest of the 3% 60 years and above
46
respondents says quality is average and very expensive products. So Sainsbury’s should
think about the price and quality more and more. Around 43% of the respondents says
that the price of the product is high, so Sainsbury’s PLC should take care of the pricing
issue to attract more customers in their store.
Table 5.2: Gender of the sample
Male Female
21 79
Figure 5.2: Bar chart for Table 5.2
Analysis:
From the above figure, the researcher get that 79% of the respondents are female. These
respondents are satisfied with the quality and price of the products and most of them
shop at Sainsbury’s frequently and use different offers and vouchers from Sainsbury’s
that they receive from the company. Again the researcher fined that 21% of the
respondent are male where most of them shops at Sainsbury’s often and visit other
retails too. These male respondents are also satisfied with the quality but they also say
that the price is too high. For this reason these male respondents visit different shops to
get the same product in cheap price.
Sainsbury’s PLC should think about this pricing issue and provide more different offers
to attract these existing customers with also the new customers. This will help in
increasing the sales of the business and they can regain the top most position again.
47
Table-5.3: How are the prices of the Sainsbury’s products?
Factors Frequency
Cheap 10
Affordable 33
Expensive 55
Very Expensive 2
Total 100
Figure 5.3: Pie chart for Table 5.3
Analysis:
From the figure 5.1, 55% of the respondents accepted that the price of the products of
Sainsbury’s is expensive and 33% of respondent agreed that the price of the product is
affordable. From the figure it is clear that most of the respondent agreed that products
are too pricy of Sainsbury’s. The respondents are also says that according to the product
quality price is too high. So Sainsbury’s should take some necessary steps for this. They
must talk to the customers and provide them supportive information about their price.
Also Sainsbury’s can check the price of the other competitors and discuss with the
management team about their price and take care of this problem.
48
How are the prices of the Sainsbury’s products?
10
33
55
2
Cheap Affordable Expensive Very Expensive
Table 5.4: How is the customer service at Sainsbury’s?
Factors Frequency
Excellent 42
Good 43
Average 15
Poor 0
Very Poor 0
Total 100
Figure 5.4: Bar chart for Table 5.4
Analysis:
42-43% of the respondents are happy with Sainsbury’s customer service. Customers are
happy with the service but they want quicker service with quality. It can also create long
term relationships with the customers. Again 15% of the respondents say that the
customer service of Sainsbury’s is average. They say that they did not get proper
customer service when they shop at Sainsbury’s. By solving customer’s problems
Sainsbury’s can create more loyal customer service and continuing their business
growth with less risk. So a level of trust increase here and the customers also feel happy
doing shopping in the store.
49
How is the customer service at
Sainsbury’s?
0
10
20
30
40
50
Excellent Good Average Poor Very Poor
Factors
FrequencyPercentage
Table 5.5: How effective the Loyalty Card (Nectar) is?
Factors Frequency
0-1 17
1-3 7
4-5 17
5-7 2
8- 10 57
Total 100
Figure 5.5: Bar chart of Table 5.5
Analysis:
57% of the respondent said the effectiveness of the Nectar (Loyalty) Card. They said
that Sainsbury’s take a good step by providing this Nectar Card. This Nectar scheme
replaced the Sainsbury’s Reward Card. Customers can earn more points for every single
pound they spend in store or online. Again they believe that Nectar point for reusing
their bag is also helpful. According to the customers for using the same bag every time
they can earn extra point but it is also good for the environment.
50
How effective the Loyalty Card (Nectar) is?
0
10
20
30
40
50
60
0 to 1 1 to 3 3 to 5 5 to 7 8 to 10
Consumer Rating
Frequency
Percentage
In addition 17% of the respondents don’t interest to use it. These respondents believe
that other people may get the information about the products that the customers want to
buy. So there is a barrier which may also create problems in the process of loyalty card.
Table 5.6: How would you rate the quality of the products at the store?
Factors Frequency
1- Very Good 43
2-Good 45
3-Average 12
4-Poor 0
5-Very Poor 0
Total 100
Figure 5.6: Pie chart for Table 5.6
Analysis:
From the figure 88% of the respondent said quality of the product is good. It is a
priority for Sainsbury’s customers. They respond that they always shop from the
Sainsbury’s only for the quality product. So Sainsbury’s should keep this image up and
think more to provide better quality product in future to get more customers attraction.
In addition 12% of the respondents said that quality of the product is average.
Sometimes the customers complain that they take the product but it becomes ruined so
51
How would you rate the quality of the
products at the store?
43
45
12
0
0
1- Very Good 2-Good 3-Average 4-Poor 5-Very Poor
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Final Dissertation_sumon

  • 1. UNIVERSITY OF WALES, TRINITY SAINT DAVID School Of Business Dissertation Title Determine the various factors that influence the consumer’s decision to shop at Sainsbury’s PLC? Submitted By: SUMON PAUL TSD ID: 1003463 Submission Date: 06 January 2012 A DISSERTATION Submitted in partial fulfillment of the requirement for the degree of Masters in Business Administration (MBA) COLLEGE OF TECNOLOGY, LONDON January 2012
  • 2. DECLARATION I (Sumon Paul) hereby declare that this dissertation submitted for the award of master of business administration is completely my own work and it resembles no similarity with other people’s research work or it is not coping from other research paper. SUMON PAUL ……………………………………….. Date: 06-01-2012 TSD ID: 1003463 COLLEGE OF TECNOLOGY LONDON UNITED KINGDOM i
  • 3. Acknowledgement Writing this dissertation is both exciting and challenging for me. It is not possible without the help of some people who mainly encouraging me. Definitely, I am studying on a very interesting subject. I have given sixteen weeks’ time to finish this dissertation. Finishing the dissertation by this time is not only hard but also it teaches me to deal with a huge amount of information within a short time. I have now completed my dissertation of Masters Degree program at College of Technology, London under University of Wales: Trinity Saint David and I would like to take this chance to show my gratitude a few persons for their contribution to my work. First of all, I would like to thank my course supervisor Mr. Mike Elkin, who has been tremendously supportive and understanding while I was developing through my research work. Without the help of my supervisor I believe that I would not be able to write my dissertation in the way that it has been written. Finally, I would like to be grateful to my family and friends, who has provided me with some tremendous ideas & support me, and my colleagues of Sainsbury’s Local, Clapham Old Town, who has contributed with their thoughts and help me by providing necessary information related to my research topic. As well as I am also thankful to everybody for their support and patience during the last few weeks. ii
  • 4. Abstract: This research represents the consumer’s decisions in various factors that influence them to shop in Sainsbury’s PLC in UK for their daily needs. It is a common knowledge by which the consumers buying decisions are influenced and the consumers get some ideas about the various factors in general. It helps to influence the consumer’s price knowledge, quality, customer service and loyalty to the company and also it is responsible for the sales margin. The main purpose of this dissertation was to verify the different factors that influence the customers to shop at Sainsbury’s PLC. Primary data was collected through the interview of the colleague and a survey that was conducted on the customers of Sainsbury’s Local, Clapham Old Town. Price, quality, promotion and customer service were identified as the most important factors by the customer survey, where majority of the customers were concern about the price of the product. The researcher has used quantitative research to test the concept which is relevant to the design of various factors that influence the customers to shop and qualitative research for developing more those concepts in to a real form of research. It is really very important to have a decent concept development in the research process. Researcher has taken the interview of 100 customers and 4 respondents from Sainsbury’s PLC. This research also helps the company to have the competitive advantages from the market. iii
  • 5. TABLE OF CONTENTS Page Number Declaration i Acknowledgement ii Abstract iii Table of Contents iv List of Tables viii Chapter 1 1-4 Introduction 1.0 Background of the Study 1 1.1 Problem Definition 2 1.2 Aim of this Research 2 1.3 Objective of the Research 3 1.4 Scope of the Research 3 1.5 Outcome of the Chapter 3 Chapter 2 5-23 Literature Review 2.0Introduction 5 2.1 Service 6 2.1.1 Service of the theory 6 2.1.2 The quality of customer service 7 2.2 The client preferred shopping convenience 7 2.3 Customer Satisfaction 8 2.3.1 Theories of customer satisfaction 9 2.3.1.1 The importance of customer service 9 2.3.1.2 The function of customer satisfaction 10 2.4.1 Customer vs. Employee Satisfaction 10 iv
  • 6. 2.4.2 Customer’s personal value and their pleasure measurement 11 2.4.3 Price 11 2.4.4 Other attempts to reduce prices 13 2.5 The concept of consumer technology 16 2.6 The UK supermarket industry 16 2.7 The strategy of Sainsbury PLC 18 2.7.1 Sainsbury PLC 18 2.7.2 Nectar loyalty card 19 2.7.3 Advertisement 20 2.7.3a Promotion 21 2.7.4 Price wars 22 2.7.5 Product Quality 22 Chapter 3 24-32 Methodology 24 3.0 Introduction 24 3.1 Research Philosophy 26 3.2 Research Model 26 3.2.1 Research approach 26 3.2.2 Research methods 26 3.2.3 Sampling methods 27 3.2.4 Quantitative Research Methods 27 3.2.4a Reasons for the choosing quantitative methods 28 3.2.4b How to use Quantitative Methods 28 3.2.5 Qualitative research 29 3.2.5a Reasons for choosing qualitative methods 29 3.2.5bHow qualitative method is used 29 3.3 Sources of data 30 3.4 Data collection methods 31 3.5 Methods of sampling 31 3.6 Validity and reliability 31 3.7 Limitations 32 v
  • 7. Chapter 4 33-37 Context of research 4.0 Profile of Sainsbury’s PLC 33 Chapter 5 37-53 Findings of qualitative and Quantitative research 5.0 Introduction 37 5.1 Qualitative Results 38 5.2 Evaluation 44 5.3 Quantitative Results 44 5.4 Evaluation 52 5.5 Conclusion 52 Chapter 6 54-57 Discussion and Analysis 6.0 Discussion and Analysis 54 6.1 Revising the Objectives 55 6.1.1 Customer Service as Sainsbury’s tools 55 6.1.2 Challenges for Sainsbury’s 56 6.2 Conclusion 57 Chapter 7 58-61 Conclusion 7.0 Conclusion and Recommendation 58 7.1 The Implication 59 7.2 Additional research area 60 7.3 Research limitations 60 7.4 Recommendation 61 References 62-66 vi
  • 8. Appendices 67-75 Appendix 1 Questionnaire for Managers 67 Appendix 2 Questionnaire for Customers 69 Appendix 3 The Times News Paper 72 Appendix 4 Records of Meeting 73 vii
  • 9. List of Tables Table 5.1 Age limit of sample respondent 46 Table 5.2 Gender of the sample 47 Table 5.3 How are the price of the Sainsbury’s product? 48 Table 5.4 How is the customer service at Sainsbury’s? 49 Table 5.5 How effective the Loyalty Card (Nectar) is? 50 Table 5.6 How would you rate the quality of the products at the store? 51 Table 5.7 How would you rate the attitude of the staffs? 52 viii
  • 10. Chapter 1 Introduction: 1.0 Background of the Study: The UK retail industry is changing continuously. Big retailers, such as Sainsbury’s, Morrison, Wait Rose and others with their rock bottom price have dominating the UK retail industry. These retail companies’ provide a breadth and depth of assortment and competitive prices to the customer which is different from each other (Vias, 2004). But the ever changing consumer’s psychological variables like products quality, price, promotion, interest and lifestyle also influence the customers in their buying decisions. These factors manipulate the customer’s idea of shopping and loyalty to the company and also it is responsible for the sales margin. At the present price, quality and other different factors is very imperative and challenging for consumers as the customers are more concern about these issues in their daily needs. These factors influence the customers so much to shop at their layouts. Though UK got rid of the recession, the price of every product in the market is increasing every day. For the competitive advantages in market product quality and price create the value and importance of the company. 1
  • 11. Darian (1998) suggests that products the price that customers are referred to as probably any other factor. Chen et al. (2004) found that are the most important attributes of children's clothing, quality and style more important than price for them. In addition to these factors, the ads usually have a large impact on sales at retail. Since there is a direct correlation between rising prices and the latest fashion products in the textile and clothing industry, which reflects more the product of the latest fashion and style, together with the contribution of advertising is, the higher the sale price. Branding is one of the most important attributes that influence the sale. While brand awareness is high among customers, because it is used as a means for the emotional needs or status of the device and to make information about their peers, the Harper et al. (2003) reported that 60 present of parents responded that labels and logos are not of great importance. This research is going to represent the consumer’s decision in various factors that influence them to shop at Sainsbury’s PLC. The goodwill of Sainsbury’s in UK is well known to all people, but in some cases people find that the product of Sainsbury’s are so pricey than the other retailers. However this study will be investigating those influencing factors that drive people to choose Sainsbury’s for their shopping and identifying some key process to reduce those barriers for Sainsbury’s PLC. 1.1 Problem Definition: Buying behavior of customers is influenced by different factors such as price, quality, and customer service and so on. Each and every business has to take this inconsideration while making the business strategy because the customers always try to move to the alternatives. So to maintain the relationship with the existing customers and to attract the new ones the companies are to manage these factors in a positive manner. (Fill et. al., 2008). If these factors are managed properly by Sainsbury’s PLC, the customers will be influenced to do shop more in it. 1.2 Aim of this Research: The aim of this research is to identify the factors that influence the customers to shop at Sainsbury’s PLC, which may also help the company for their future existence in the retail market with other retailers. 2
  • 12. 1.3 Objective of the Research: The objectives of the research are given below: • To find out the various factors influencing the consumers’ behavior to shop at Sainsbury’s PLC • To rank the factors according to their importance • To find out how Sainsbury’s PLC perform responding to these various factors 1.4 Scope of the Research: This research has a huge scope for Sainsbury’s PLC. This study can give the idea to think about their pricing strategy for the products. It will also be favorable for the company to think about the marketing through advertisements, promotions and so on. By managing these factors Sainsbury’s can create more loyal customers and attract more new customers to shop at Sainsbury’s. It can lead to the more market expansion for the company. Outcome from this research can also be useful for any other retailers and create more opportunity for sales. 1.5 Outcome of the Chapter: The research is separated into seven chapters. Ist chapter provides an general idea of the research which includes fundamental info of the factors that influence people to shop at Sainsbury’s and how those factors can be benefited for Sainsbury’ PLC. It has given an impression of the research aim and objectives. It has also given the clarification of the way to complete this research. Here, second chapter explain in details of related literature review and theories. It also includes other significant data which is needed to prepare a discussions part about the various influencing factors. Now in chapter three reflects of the research method where the researchers explain the research process, research methods and research approaches. Moreover it deals with research validity criteria and limitations of this research. After that, the chapter-3&4 explains Sainsbury’s PLC, company profile and how does it work, its establishment, future plan etc. Next chapter-5 defines the data collection process and it presents the results of the interviewing people. There are some graphical presentations were used to understand the purpose of the research. Findings and analysis will discuss in chapter-6 and result from previous chapter also reflects. At last, conclusion and recommendation were 3
  • 13. described in chapter seven. There are some scopes for further research in this dissertation. 4
  • 14. Chapter 2 Literature Review: 2.0 Introduction: Analysis of various factors affecting choice of consumers for shopping at Sainsbury PLC effects on many properties to study. In analyzing a variety of factors, a 7-P, and the market research to determine what factors to attract and retain loyal customers in certain markets. The following section will examine the literature of the various factors that the consumer's decisions to shop at Sainsbury’s PLC address the following factors of influence: 1. Product quality 2. Price 3. Promotion 4. Customer service 5. Loyalty 5
  • 15. 2.1 Service: In general, customer satisfaction research in marketing should be further developed (Parasuraman, Zeithaml and Berry, 1988) to meet the needs of customers to identify and has become an important parameter to understand. To provide high customer satisfaction is related to the company's success, so concentrated in different settings, the quality of service to determine how visible a great deal of effort is. Gronroos (1982) defined about the benefits expected to be, that will measure "that he has received reports of consumers to compare service expectations of the results of the evaluation process," the definition of the same quality of service. Quality of service, the service and the customer experience and expectations of our customers before receiving the results of the comparison can be seen as Wyckoff (1984) from the perspective of the enterprise to define the concept of service quality. Diversity of customer needs and achieve excellence in order to meet the control to ensure the quality of service excellence means. 2.1.1 Service of the theory: "The associated certificate of service, performance, or physical exertion with the intangible product that cannot be heard is the dominant component is immaterial’’ (Marketing Services, 2007). As the product to the essential characteristics of the various products service can vary. These attributes cannot be tangible, damages, and inseparability of these functions, and other services from the actual products are created, but most of the results of service delivery is prompt, immediate feedback, because they also offer their experience is not required. The success in the provision of services to offer services to purchase a high chance of dissonance, because they do not work the requirements of customers, the company, how to effectively promote their services sometimes physical products, including the provision of services within the package in a such a situation depends on the quality of service on the product's ability. In addition, nearly all service experience (Savitt et al., 1986), the more heterogeneous in nature, the service cannot be so. A service in the supermarket industry, which is quickly and accurately to a high degree of service, is very important. This service is available through them and creates a culture of service on the market (Verret, 2000), in the supermarket to clarify the expectations of our employees is very important. 6
  • 16. Established of standard service begins with benchmarking process and by identifying service attributes that the service standards. Just as you can to serve the best customer is the ultimate goal of comparative analysis, we first identify the service attributes that are most important for supermarket customers. The service attributes are derived from the determinant of the supermarket service quality. Examples include: product quality, product range, the purity of a supermarket, a supermarket location, price, pricing, fast recovery, easy payment, employees of the store operating hours friendly, and the existence of special units, such as meat, fish, deli departments. Missing from this list includes serious business; supermarket grocery buyer can influence choice / patronage, but not necessarily the degree of customer satisfaction with grocery supermarket (Ou and Abratt, 2006). In addition, the contribution of these attributes to overall customer satisfaction (or the general quality of service supermarket) with the help of feedback from customers that we have asked with the help of questionnaires measured. 2.1.2 The quality of customer service: A number of studies were conducted to determine the standards of service quality. Nevertheless, the model of the quality of services than Storbackav, Strandvik and Gronous has long been a priority for immediate results. To assess customer satisfaction, service quality, the model bases the recent experience of the client versus customer perceptions and expectations (Storbacka, Strandvik, Gronroos, 1994). Customer satisfaction is the proper measure of service quality. Quality of service is determined by the relations and, of course, customer loyalty, as well. If a customer is not satisfied with the quality of service and with the undesirable behavior that customers can move or no longer needs the service or end weaker relationship ended. So it is very important that in order to retain the loyalty of customers, service quality focus of measurement should be consistent and follow-up. 2.2 The client preferred shopping convenience: In addition, contribute to the growing preference of consumer demand for convenience shopping, the growth of modern retailing in the UK, for which it is, in turn to improve efficiency, quality and safety of the food chain (Chengappa et al., 2005;. Mukherjee and Patel, 2005; Umali Deininger, and Sur, 2007). Consumers are more selective in the choice of food and have more comfort to emphasize the freshness and quality of 7
  • 17. products (Quagrainie et al., 1998;. Acebro'n et al., 2000). Considerably with the advent of supermarkets and independent culture, packaged food preferences of consumers has increased in recent years (Stewart-Knox and Mitchell, 2003; Silayoi and Speece, 2004; Wells et al., 2007). The desire for comfort and increase the number of working women is one of the most important factors for strong growth in packaged foods (Goyal and Singh, 2007). In addition, consumers have already started to have better quality and more aware of nutrition, health and food safety (Ruth and Yeung, 2001;. Rimal et al., 2001). With the development of food retail modernization and rapid changes in consumer buying behavior in retail and food grown by leaps and bounds. To capture the opportunities of the growing organized retail in the country, large companies are being robbed in this segment. These companies are in advanced development of large retail chains across the country to build. Given the above situation, the high demand for the modernization of food retailing, it is necessary to evaluate different products and market attributes to develop appropriate structure of the retail food. 2.3 Customer Satisfaction: In the supermarket industry, customer satisfaction performs an important role because of its direct impact and influence on proven income and the ability of the supermarket business. Not only that customer satisfaction with strong word-of-mouth advertising for the supermarkets, but it also helps them to retain existing customers and provide them with significant, with the possibility of long-term relationships with their existing customer base. Consumer intention to purchase a product depends on the extent to which the product meets or fulfills the conditions for its use (Lai, 1991). Consequently, the specific circumstances under which the intended consumers assume the product impact on the use of their price sensitivity. In some situation, use will be an important factor of consumer behavior. One of the maximum proportions in the studied collection determinants (Belk, 1977) that 18.7 per cent of the variance in the decision were made consumer purchases in order to plan the use of the product. Jack et al. (1994) examined the spectrum of applications for a variety of cheddar cheese. They found that the most 8
  • 18. important factor was for the most demanding quality cheese consumption in relation to their specific use, such as mature cheese perceived, as is best suited for "high quality" as used "after lunch with wine and luxury." 2.3.1 Theories of customer satisfaction: Customer satisfaction is a well-known and established concept in different section of sciences like marketing (Fornell and Werneldt, 1974; Kotler, 1991), consumer research, economic psychology and economics. Customer satisfaction means that the customer has with a product or service that meets the needs of customers’ expectations and wants (customer service and satisfaction, 2007), is satisfied. One of the fastest growing segments of the market research is the study of customer satisfaction (Dutka, 1994). Customer loyalty can be generated when the client is happy, and when it will be created loyal business customers, this is an essential component of sustainable and profitable growth. Customer satisfaction is diffuse expectations of customers that pass through three stages before the delivery address. At level 1, expectations are simply takes the form of assumptions. At level 2 these expectations gain higher value than level 1 and meet the demand through quality services that meet certain requirements or specifications. And third levels of expectations is that the organization encouraged its customers and to produce something in order to win customers for its services and products. At this third level of customer satisfaction in the customer base of loyal customers and offers opportunities for companies to establish long term relationships with customers and regular customers, then this additional information is offered to other people by Sainsbury PLC Store. 2.3.1.1 The importance of customer service: Customer service is to satisfy all the efforts to identify and customer needs. The term is used in three ways: 1. First contrast is the "products." Products are tangible things and services are intangible things like cutting a hair, taxi journey or insurance questions or advice. 2. Secondly when a customer when they buy a product they get some extra benefit. For example, a customer purchases a laptop and for this the customer gets a business service for that laptop for several times. It means that the company ensures that the laptop will still function and in future for certain time they will provide service for that product. 9
  • 19. 3. Thirdly, a general relationship between the supplier and the customer. It shows that providing a better service for any product all the business transaction is service based. 2.3.1.2 The function of customer satisfaction: The functionality of customer satisfaction in the business world is that how effectively services or products satisfy the expectations of customer needs. In this way the world of marketing that every story of success in business is based on "Customer Satisfaction" and for this, customer satisfaction is a key element of corporate strategy in today's market (Buchanan and Gilles, 1990). Although customer satisfaction varies from person to person, but to recommend certain standards to be defined in order to reduce the positive public awareness. A common tool is the choice of the level of customer satisfaction survey or primary data collection, where customers were asked what the opening and closing statements in accordance with customers own perception assessed. Thus, the provision of services or goods contingent that some degree of customer satisfaction. 2.4.1 Customer vs. Employee Satisfaction: In a "Success Cycle" the loyalty of the employees (Schlesigner and Heskett, 1991) joined with the customer loyalty to the concept of customer satisfaction, so that the staff training and development in a compact personal service are inevitable in order to provide services to clients. The model is illustrated as follows: Figure 2.4.1: Successful cycle of customer vs. employee satisfaction Source: Sloan Management Review pp.17-28 10
  • 20. Staff provided a well-run and corporate culture of service that the company has then they must trained the staffs to maximize profits and sales are set to maximize. In addition, the sustainability of competitive service industry, development of customer loyalty is considered. 2.4.2 Customer’s personal value and their pleasure measurement: Customer’s personal value is also an important factor for the retailers. Rokicha (1968, 1973) defined personal values as "enduring belief that a particular practice or preferred end state of existence, personally or socially to face or vice versa conduct or end state of existence." Personal values are generally accepted as a major influence on human behaviour and consumption patterns (Kang and Yang, 1993), and as a tool for marketing segmentation (Vinson and Scott, 1977; Schiffman et al., 2003,). Previous studies have shown that personal values are useful for understanding the behavior as difficult as choosing a particular brand in the category of product class (Pitts and Woodside, 1983). It is important for marketer’s cultural relations caused by the brand to understand and agree with them more closely with the personal values of the target group (Miller, 1999). Most studies on the influence of personal values in marketing and consumer behavior based on the concept and measurement of the contribution of Rokicha (1968, 1973). Rokicha developed a list of 18 instrumental values and a list of 18 values of the terminal, in the assessment Rokicha value (RVS), which was used in many studies (Bond, 1988; Hofstede and Bond, 1984;. Ng et al., 1982) are combined to estimate the value. The final value of the belief that some end-state, personally and socially desirable (for example, what an exciting life, family security, or pleasure), that is, values that serve as long-term goals in life. Instrumental values relate to behaviors and beliefs represent the individual, personally and socially better in all situations in relation to all objects for example ambition, independence or self-determination, that is, the values that serve as guidelines for the day in the day of the event. 2.4.3 Price: Price is an important element affecting the distribution of new products and services for observation, but the price of a new product or service is particularly difficult (Foxall, 1984). And requires the ability to exact solution, the prices of other goods or services, a 11
  • 21. detailed knowledge of the potential customer’s perception and performance is important. But the price is an essential component of the diffusion of improvement. In addition, more or less unknown how customers perceive the price charged for a product and what are the dynamics that influence the price perception. Perceived price is based on the customer experience via any product or service, and compared the prices of other additional service delivery channels formed. It is worth the price and quality was identified as two major components in pricing research literature (Grewal et al., 1996). According to a basic model of perceived value (Dodds and Monroe 1985), the values which recognize the basic model recognized as a positive influence on the quality of the negative impact. In addition, comparative advertising price can be as advertised marketers selling price to cope with stress reference pricing, marketing, or the previous price of the leading manufacturers in the word. This is the suggested retail price or the competitor price (Biswas et al., 1993). This means that customers are in demand and provides a range of properties. These properties are "personal", answer the following questions: • What products are produced? • Where it is produced? • This is done by a person who is it? It must be recognized by consumers as the price for a given value of the product must be appropriate. How honest consumer customers (Moulton and Lapsley 2001, p. 211), it is not worth more than their money. To meet the price of goods, and financial costs at the level expected for the name brand and quality products means that the associated. In general, the price cannot be tested before the customer buys the products. There are several other features are important to signal the wrong choice when there is a risk. The high price of this product may show that a high quality. As a result, some customers complain only product risk (Balestrini & Gamble, 2006, p. 401), the cheaper it is to refuse entry to avoid. The price of the product itself says a lot about the image. As the price of wine trade partners need to be addressed in collaboration with decisions. Friendly competition in the market the brand, size and volume targets should be granted. Pricing strategies, but 12
  • 22. not limited to one price, special price changes frequently to remove products, dealers, and to promote a special price to add volume to adjustment. The purpose of the special pricing agreements with other products is that new consumers should try different product at a lower price. The scale of these special rates (Moulton and Lapsley 2001, p. 211) specific high-line to describe on a regular basis as a special and higher in special circumstances may be extended. 2.4.4 Other attempts to reduce prices: One of the most important attributes of the product price is that at which the product on offer. There are several reasons why prices may be an important determinant of category structure and the effects on the structure of the acquisition of the various proposals in this category. First, it is assumed generally assumed that the heterogeneity of consumers over time must show. To meet these requirements, the consumer can purchase at various levels, the price for the category. For example, in terms of clothing, the purchaser can buy inexpensive shoes for everyday use and high-quality, more expensive shoes for special occasions. Inexpensive wine is satisfactory for normal use could at home, but higher quality wine by the same person, when guests are invited or other notable events are acquired. Such scenarios are on the large-segmentation (Dubow, 1992). Another possible reason for the spread of the purchase price through a variety of levels is while consumers intentionally experiment with different products to satisfy the desire for variety (Givon, 1984; and Pessemier McAllister, 1982). Consumers may wish from time to time in order to indulge by buying a product or a brand outside of the normal price range. These observations are also consistent with the results of research on price ranges and thresholds. Consumers are obviously lower and upper limits of prices for products that make outside of which they either do not doubt the quality and hard to buy, or at a price level is higher than the variable quality (Monroe, 1971). This is an acceptable range, especially below the allowable limit, which apparently formed by the range of prices, consumers are exposed (Cox, 1986). Therefore, for all the above reasons it is generally accepted that customer to buy a range of prices over time. However, there was a small study to investigate whether buying patterns or predictable patterns in how consumers about the price level, researchers and marketing experts, can the level of competition from other price levels to predict. Given that price is an attribute of all brands obsessed. It is possible to divide the market for different prices ranges or levels to explore, if the distribution of consumer purchases 13
  • 23. between the prices levels over time in the same manner as the distribution of purchases from brand to brand over time. Definition is a predictable way to understand, predict and respond to price competition. A literature search found not to work in this area, with one exception. According to the Scriven and Ehrenberg (1995), the consumer panel data and found evidence of purchase price over the analyzed categories. Thus, as an individual level heterogeneity in the acquisition of different price levels over time leads to buy a recognizable pattern or patterns in the aggregate data to determine In general the retailers try to reduce the cost of the products in their store for different function: a. Manufacturer relationships: Retailers try to get the products from the lowest price manufacturers. The big retailers can get this more easily than the small one. As they have a great incentive to get the best deal in the store part, than a small distributor, manufacturer, and the big retailers took advantage of their negotiation of the transaction which is a part of a big opportunity. b. Logistics: Store retailers try to manage the store and shelf at the lowest possible cost. From major retailers and distributors to increase efficiency, it depends on the integration. c. Relationships with customers: Retail industries are trying to find a way out to achieve a good level of customer service with minimum effort. Some aspects of pricing particularly retail prices are prevalent in this business. d. Different prices: The selling price to the consumer occasionally is very visible with hidden discount. Different retail formats can mitigate the competition between dealers. Individual purchase any other customer was a collaboration between the clergy to justify too small because, as a rule, on the other side of the economy in other sectors with respect to the consumer between the price discrimination against consumers for resale. This is a specific price discrimination offers discounts on consumer markets and retail customers with other options like manner (for example, trade-ins, as well as credit operations by 14
  • 24. the end of season sales, etc.) is selected, tend to think about the design features are implemented is another option. e. Variable mark-up: Retail, more than in other sectors of the economy, retail sales of bundles of products and carry a large selection of products subject. If the product is relatively cheap to buy, consumers have strong incentives to buy, around, but some products will not be retail (one for purchases) prefer to go by them. Under these conditions, Bliss (1988) said that several products retailers, as a rule common to all products, highlighting the percentage will do everything possible to not show installed, but the low elasticity of demand for products with high mark-ups are preferred, and vice versa. f. Loss leader: When choosing between multiple retailers and consumer goods, the quality and prices of individual products were very vague idea. In this case, the consumers want a good product at a reasonable price range and trading on their reputation is based. Under these conditions, the general earned a reputation for low prices in one of two options are the loss leader. The number of key positions at a low price and then promote these products and prices, and retailers of these products at retail prices to encourage consumers to compare. Best of loss or other retailers in the market in terms of capital-ROM cannot be looted. g. Price ceiling: Some manufacturers suggested that retail price of the retail market (EIA) provides the use of RRPs to facilitate competition between retailers can work together simple that it focuses on the price offer. Since there are many products on the market RRPs, but certainly not enough for a relationship to offer the price they are still a little bit. In addition RRPs relatively competitive prices too high can be in the retail market, in order to curb. Terms intentionally brand products, some retailers that consumers in the future if the same product cheaper to find a place, and differences in order to take the best deal around between retailers, the need for consumers to find lower-refundable. 15
  • 25. In addition, the sale prices competition, as well as other sectors of the economy is spicy. Without competition, the importance of various aspects of competition between retailers (location, range, retail), all actions between the retail directly are to suppress price competition. 2.5 The concept of consumer technology: Be the divided leaves of consumer knowledge in two broad categories: friendly and professional, with experience in product development and shows the amount of experience in a friendly successful product (Alba and Hutchinson, 1987). In Park, Mathersbaugh and Feick (1994) notes, consumer experience leads the product class to an increase level of expertise in the acquisition of experience. 'Experts' knowledge of their structure and selection of test questions and how an understanding of the two "starters" can be divided into easily. Experts have more knowledge about the product category. In addition, experts have chosen and rated the product, and they lead a beginner or more properties (Mitchell and Dacin, 1996). 2.6 The UK supermarket industry: To understand the relationship between supermarkets and sustainable development the major part in the first, is a summary of the corporate strategy and business environment is important. In the 20th Century, has given the food distribution and wholesale market to address the way the manufacturer. Supermarket - an integrated retail agency could, in turn, increases. In Britain, supermarket bread, milk, fruit, meat markets, at least captured three quarters. Food service industry, especially fast food, but also gain in importance until 2020, consumers spent on food by 50% to 30% of current share capital is expected to grow from. In the simplest model of supermarket products, meat, bread and other food products under one roof, discount prices, major procurement and distribution logistics for the center of a separate division and self-service shopping center. Nevertheless, the sector is heterogeneous. Other company like a supermarket in the UK, targeting specific market segments and is in the desired format. Again Somerfield which is dominated by concentrating small and medium businesses and convenience, "replenish" segment with the same deep discounters Lidl and Aldi and a limited number of brands in C2DE social class is designed for consumers a full range of Sainsbury, Asda, Tesco and Morrison 16
  • 26. stores the edge of large villages are often a common format, and production to the retail market, including Waitrose and Boots. For example geographic focus of Waitrose and Sainsbury `s has a strong presence in the south of England, again Asda and Morrisons in the north of the fort unevenly same. The presence of national networks is a relatively new phenomenon. Another feature of the modern model of a supermarket, not arm’s length relationships with suppliers are height adjustable food chains linked together. Who works at the supermarket to its source, its quality assurance and tracking purposes, and reduce the supply base to attain expected to continue, some manufacturers try to reduce the number of agents. Stream processors, supermarkets and retail trade, government, in cooperation with a high level of support and other free-market agriculture in state agricultural protection and or with a group that combines the advantages of commercial agriculture, the large end of the changes for granted. Supply chain management (i.e, the maximum profit at minimum cost to achieve the right mix of products) are outsourcing production of its suppliers. In general, participation in the distribution chain to the "rules" at the setting, a leading provider of a new strategy of packing or unsold as taking responsibility for the production of output to the profile of product categories evolve, grow, he can risk. The concentration of the chain structure, the most power and leverage at the end of the supply chain of retail presence, the benefits for customers and shareholders are available. In these circuits the "inside" relationship marketing, product quality, brand image and prosperity through investment can be separated, but decreased in many cases, the supermarket chain actors between the upstream and the total residual value. Symptoms of own brands (Wrigley and Lowe, 2002), "competing forces to move the sleeve heavily in favour of in the 1980s," British retail revolution it your own brand on the high margin contributions from gross income or profit. Own brand in the UK earn up to 40% market share of the highest in Europe. With a retail shelf placement and packaging of brand manufacturers as the brand is now competing head. However own label is not only a money maker it also improve its image on the label and customer loyalty. Finally, retail, and many people in the immediate vicinity of the end-user supply chain management is to facilitate the development of complex information systems. Point-of- 17
  • 27. sale scanners (POS data) are obtaining information about consumers with a source of competitive advantage for retailers and chain "insiders" - Category Manager - with whom to share. 2.7 The strategy of Sainsbury PLC 2.7.1 Sainsbury PLC: Sainsbury's is best known as a supermarket retailer. J Sainsbury PLC is the parent organization controlling these operating companies: Sainsbury's Supermarkets; Shaw's Supermarkets; Sainsbury's Bank; JS Developments, and Sainsbury's Property Company. Sainsbury’s have a brand, quality and price is, as well as views the high level of customer service. But, of course, all sold at the supermarket own brands (Sainsbury, Tesco, Safeway, Asda, etc.) and reflection, but also in its own brand. These are usually owned by large food manufacturers; for instance, the following brands are owned by Nestlé: Buitoni, Libbys, Nescafé, Nesquik, Shreddies, KitKat, Vittel and Perrier. Sainsbury popular brands offer high profitability of exhibition space, and manufacturers of those brands want to be associated with Sainsbury and shops in the "best" place to compete. The companies also have other non-competitive high-street brands and want to form a partnership. In 2002, the import of its boots in the number of shops in the village totally depend health and beauty and pharmacy. "Nectar" loyalty card link Debenhams, BP and Barclaycard in Sainsbury is a brand of justice. It is no coincidence that these companies are looking to their advantage, with each other. Some remarks on the banks of this "compensation" by collecting data about their customers than the big companies, it is unethical, but it was important. Its own brand name Sainsbury, the company name was used for product development. This approach and organic products, these countries have been applied to other product lines such as: Sainsbury brand is also diversifying into the retail banking market, which was used to gain a competitive advantage - because it was copied by Tesco move. 18
  • 28. 2.7.2 Nectar loyalty card: The relationship between dealers and customers in an effort to strengthen customer loyalty program shows strong interest. But how effective are these programs? Surprisingly, given the current popularity to distinguish the evidence. Established overall picture of loyalty in a competitive market research of loyalty programs, in many cases, it works hard to recommend the outstanding benefits we get. In addition, the differential gain slope of the forces of competition is removed too quickly. Fill to the introduction of loyalty programs, the administrator (development, marketing and operating costs are included), and expenses, compare the benefits of the program realistic assessment of the relationship of rhetoric to the costs at the expense of marketing. Difficult market conditions, we are here to claim the best chance of success, loyalty programs, product or service should improve the overall value proposition. This setting will motivate buyers to purchase a product, then the series of offensive and defensive marketing strategies and other aspects of support. The most popular loyalty program customers, the retail portion of the plan specialties are often circular. These and other well-groomed and well maintained, so that a loyalty program which was initially hailed as a creative way, but in recent years more and more doubts about this assumption is poured. They were together with titles such as academic and trade press have criticized the "failure Competitive Strategy," "War on the market: fighting for the turbulence hit points" - the failure of "commercial provision of cycle," which will be to improve loyalty. Nevertheless, loyalty marketing company practice, their loyalty to the former, what is required. It is much easier for large companies is less. Increased customer base marketing and market research in the absence of personal knowledge must be used. Every year more and more advanced technologies of computer databases to control the behavior of customers and the company's ability to do so. This technology is used by retailers and manufacturers of packaged foods can be used to effectively target products and services and marketing resources to be allocated to achieve maximum profit. In the business market, leading companies customer profitability analysis (type) to calculate the customer value of life. They are more complex and costly process. 19
  • 29. Sainsbury is Debenhams, Barclaycard and BP started in autumn 2002 with a card shop one of the founders of juice. Sainsbury Nectar rewards program for the replacement card. Customers at Sainsbury every £1 in the online stores you can get 2 points Nectar spent. co.uk, Sainsbury spent every liter of fuel at the gas station with a maximum of 4 points for 1 nectar points at all, unless you have a credit card and Nectar loyalty card at participating Nectar sponsors to use purchased for £1 each 2 point (Dell, Amazon, eBay, Argos and others) online at Nectar e-Stores sent. When nectar points in Sainsbury consume or save, movie tickets, spa, theme park rides and a variety of luxurious relaxation and attractions Tussauds can be redeemed for prizes. Points are also can be used to offset online. 2.7.3 Advertisement: Advertising is a form of communication products, services and ideas to persuade all the tasks related to customers (viewers, readers or listeners) will be used. In most cases, despite the political-ideological advertising provided in connection with the commercial management of consumer behavior is rampant about the desired results. Advertising message is typically paid by sponsors such as newspapers, magazines, TV spots, radio, outdoor advertising or direct mail or the Web sites and media to new media such as text messages, including a variety of traditional media, you can: Advertising a product personal values. It connects these services are clearly the benefits of moving to each advert to the consumer in understanding the evolution leads to the desired target state. It consumers must include a message or meaning. Model if they buy a business, its six steps to move the consumer or buyer will assume that the steps are as follows: 20 Awarenes s Knowledg e Liking Preference Convictio n Purchase
  • 30. 2.7.3a Promotion: A study by Simonson et al. (1994) suggests that the probability of selection depends on the product in advance (without increasing its price), as this could cause a statement about the costs and it shows that the additional funding that is not on utility products is used, and not increased their price could adversely affect the acceptance of products. In other words, the properties of the product and the promotion show a degree of consistency. Thus, the preferred type of support depending on the type of product is offered with. It outputs a "perfect product promotion," a combination. Sales promotion is another way to advertise. They are used to collect this information because it developed into a double-promotional, customer, and where they are taking what you collect and jump start sales. Our promotional contests and prizes, Raffles, prizes, product samples, coupons, loyalty programs and discounts to include things like: Take measures to promote the ultimate goal is to stimulate potential customers (Bhatia, 2000). By Quelch (1983), sales promotion differs on the role and nature of advertising. Sales promotion is usually regarded as easy by raising short-term sales are made, while advertising is perceived as a brand. In many cases, profit is the focus on price rather than brand. The costs vary directly with sales and thus incurred on a pay-as-you-go basis, with less financial risk than the cost of advertising. As a sales promotion, often at a discount, they are called "below the line" activities - that is, discounts directly affect profit. Advertising, on the other side, typically sends information about the brand to take advantage of the product identity and loyalty to highlight cement brand. As advertising as an expense in the profit and loss account is called the "higher-line" activity is logged. Impact on the brand value of the constant increase in the sales promotion was assessed in an international study of the share price. They found that there is little, if a global approach in the sales after six weeks, the stock price. Thus, the use of sales promotion for customers has to change the brand to attract any long-term impact. Second, it was found that most customers for sales promotion, existing users of the mark, therefore, not only companies, discounting their product, but in some cases, the inclusion of their future sales. Finally, the stock price the customer is use as training only as a selection 21
  • 31. criterion, moving the attention of consumers from other attributes that can be viewed as creating a brand seen. Celebrity chef Jamie Oliver appeared on television and radio ads and in-store promotional materials, since 2000, Sainsbury's public face. The deal is expected to firm £1.2 million professionals every year itself, Sainsbury `there are food recipes from Jamie's new impressive development. In 2003, some sources are already in the `generate additional revenues over one billion pounds, the company's turnover of £200 million (an annual magazine, Sainsbury's). Sainsbury's claims Oliver as an advertising industry. 2.7.4 Price wars: The price war Sainsbury PLC's offer worth more than £20 including food basket of branded products to its customers "zero effort" to join the battle on. Or Asda: Customer Tesco PLC (TSCO longitude) were able to buy cheaper products in the yard across the supermarket price war against the supermarket chain to open a new front in the "fire play" promises a refund of the price difference between brands. Large supermarket group Asda and Tesco have already pricing in order to operate an Internet-based service during the past year were in each other's throats. Generate the same returns in the calculation of the coupon could get a voucher because you do not need online, including 12 000 items of his plan, has the advantage Sainsbury said. "The consumer review period, eliminating the need for: Sainsbury's Group Managing Director, Mike Coupe initiative customers" really, "he said, they are a lot of it is effectively 12 degrees more than 1000 products related to the grocery store rival, it was meant to get the price Sainsbury’s PLC mathematics to work at home computer, or print coupons waste input, so they should not be "independent of the writes. 2.7.5 Product Quality: Quality control, sensory evaluation and development: Quality food is a priority for Sainsbury’s customers. There is a place of quality control of the food in retail business where they develop the new food products in three 22
  • 32. different steps for quality assurance. These are quality control, sensory appraisal and development. Quality management, the newly developed products used in the new selected product managers and buyers sensory evaluation, current and new product development as well as for the consumer to think they know what it's like in the focus groups identified an interest in food center food trends, new recipe ideas (www.sainsbury’s.co.uk). Based on the foregoing discussion from the review of the literature, the researcher selected five factors to consider in detail: product quality, price of the product, customer service, promotion, loyalty card. Along with these factor store atmosphere, store personnel, crowding, parking and weather conditions also influencing people to shop at Sainsbury’s PLC. Although, for example, frequently occurring events are well known to customers, they can also be negative for high-dimensional factors (e.g., problems with parking in certain locations). Thus, to avoid responses are likely. In addition, the event is rarely perceived as a "pleasant surprise" to bring about positive affective reactions and behavior approach. 23
  • 33. Chapter 3 Methodology: 3.0 Introduction: In this section a description of different research processes and different approaches of research and data collection methods will be discussed. Moreover, it also mention about sampling methods and ways of collecting data to find the different factors that influence people to shop at Sainsbury’s. Based on the data collection, an assessment and analysis of data from a number of difficult issues will be discussed in the next chapter. This chapter discusses the limitations that researchers face while doing this research and development. 3.1 Research philosophy: Research philosophy is to develop knowledge and contains important assumptions about how people view the world. Saunders et al. (2009) argued that a research philosophy is not necessarily better than others. Instead, the authors argue that the study of philosophy, does the researcher should focus on the question that the researchers from looking. . According to Saunders et al. (2009) there are four different philosophies, pragmatism, positivism, realism and interpretivism. Pragmatism philosophy, offers mixed or multiple methods of design and research, both quantitative 24
  • 34. and qualitative methods. This view is supported that it is possible to work with variations. If we take a positivist philosophy, researcher will be with an observable social reality of work and the end product of this research can be lawful generalizations (Saunders et al., 2009). Emphasis on quantitative observations will be placed in the statistical analysis. Characterization of positivism is to hypotheses based on data originally collected to test in-depth interviews. The philosophy of realism implies that there is a reality independent of human thoughts and beliefs. Credibility of the similarities go positivism, both of philosophy from a scientific approach to the development of knowledge (Saunders et al., 2009). The selected methods should be connected to the subject either by quantitative or qualitative research method. Last philosophy, interpretivism, suggests that important for researchers, the differences between people in our role as social actors understand. The researchers argue that interpretivism world is too complex to be able to make a law like generalizations. There are many reasons why an understanding of philosophical problems is important. Easterby-Smith et al. (1997) identified three reasons why the study of the philosophy of its importance, can with a particular emphasis on research methodology: 1. First, it may help to clarify the researcher, and specify the research methods in the study who used to say to all the research strategy to determine use. These include the type of evidence collected and its origin, as such evidence is interpreted and how it helps to answer the research questions. 2. Secondly, the knowledge of philosophy and the study will help researchers to evaluate the different methods and techniques and to abuse and unnecessary work by avoiding the limitations of particular approaches at an early stage. 3. Thirdly, it may help the researchers to creative and innovative adaptation or selection, or the methods that were previously outside his or her experience. This dissertation will adopt a pragmatism research philosophy. This perspective is appropriate in the field of marketing sector. The researcher uses both the qualitative and quantitative research for the further development, which confirms that it is possible to research with variation. 25
  • 35. 3.2 Research Model: Selecting the appropriate research model for conducting the will be helping the researcher to collect data. A process from the results of this model is shaped by the defendant, and the qualitative and quantitative analysis and its use can lead to validate research. 3.2.1 Research Approach: After choosing the research model, it is required to think about research approach of data collection for the research and the research questions must be met. Description of this research is the construction process. In this study, the researchers used a deductive approach to research. According to (Collis and Hussey, 2009), it can be said that the deductive study is a conceptual and theoretical framework which is observed empirically tested and in this way it is cut at specific sites in the form of general conclusions. This method in general is to promote research and understanding of theory and then theory is based on the assumption that development. Research approach is inductive research methods to perform a simple objective interpretation, it is a problem. This search method is more appropriate in this case from the data collected and conclusions on the basis of the theory can not be good for other conditions. 3.2.2 Research methods: For the evaluation of the price awareness along with the other various factors related to the consumers in the retail market need to use an appropriate method of research. Jankowicz (2000) argued that a research method is a systematic manner so that the information needed to manage data collection and analysis to define adoption. A good amount of research is needed to process information. This is the collection of data and appropriate analysis of the research objectives of systematic way for this information to understand. It is a tedious task, view and manages the resources available information so it cannot get the best value." Researchers are there to evaluate various fields of research objectives that may be useful to determine the need to create effective discussion. This discussion will lead the researchers to select the appropriate method which is totally dependent on the data or 26
  • 36. information from the process. This research is going to use the two methods; one of which is qualitative method and the other is quantitative method. 3.2.3 Sampling Methods: The method of data collection for this study was to distribute questionnaires in two parts- customers and the managers of Sainsbury's PLC. Both of them are paper questionnaires. The researcher provides the questions to the customers and the managers and also asks the management frequently different questions relevant to the topic. Questionnaire answered instant by the customers and the management team. A total of 100 customers were successfully answering the questions. Unacceptable forms contain returned empty or incomplete answers. Previously, an online benefits of spatial and temporal independence and privacy, and induced a response of a sample in a short period of time. Individual scenario was also used for smoothing method of questioning, to prevent items from the lack of problems and reduce the likelihood of confusion. Study questionnaire was divided into two parts. The first part was conceptual dimensions include technology adoption factors, the quality of the product, customer satisfaction and loyalty. The last part of the respondents said basic information about themself and how often they shop in Sainsbury's and what they want. The researcher also analyze the collected data to determine the respondents' demographic variables (gender, age, education, occupation, income etc.), significant differences in their effects were on the conceptual model sizes. 3.2.4 Quantitative research methods: For the testing of the hypothesis quantitative analysis is to be used such as quantitative format is required for the representation of the information. Quantitative method deals with the numerical values and the researchers use the statistical and mathematical tool to prove the result obtained. This research method is not suitable for each and every research. It is definitely suitable for the science related subjects. This study considers an interview of 100 respondents from Sainsbury’s PLC for creating an evaluation of the quantitative analysis for evaluating different factors that influence them to shop at Sainsbury’s PLC. The quantitative analysis is based on a thorough analysis and created the final discussion in this article in the fifth chapter. 27
  • 37. 3.2.4a Reasons for choosing quantitative methods: Quantitative research is based on the specific characteristics of the main reasons for the population as a clear idea of what people learn. It is specially designed to produce accurate and reliable measurements that allow statistical analysis. Quantitative research is not suitable for measuring attitudes and behaviors. If the researcher is how many people use a product or service, or are interested in new ideas and want to know if the quantitative research assistants. It is used as market size, potential business, or volume, and the importance of measuring the size of the estimate and the existing market site. Quantitative research based on common characteristics of the people you need to use a group profile. Improvements, such as regression analysis, correlation, factor analysis, cluster analysis and statistical methods used in quantitative research models to predict whether a particular view one way or create a work can be based on observable characteristics. For quantitative research is not profitable to know why people act the way they think. Questions should be direct and easily quantified, and the sample is very large (100 or minimum 75) is needed to enable reliable statistical analysis. 3.2.4b How to use quantitative methods: The quantitative research method is used when researchers deal with numbers, data or statistics. For example, when noting that the researchers say 33% of the population has a quarter of the population, some, or perhaps can say that they do not want anything else. In this case, use quantitative research. There are two methods- qualitative and quantitative are used for this research. This method is very important and helpful for both the company and the customers. Quantitative method is used for the information on the various factors that affect the customer. The researchers used questionnaires to collect information from customers. Research data were collected, where each respondent has given a different answer to the questions. 28
  • 38. 3.2.5 Qualitative research: In addition, qualitative analysis is used for the various stressors, such as issues related to knowledge, ideas and build a plan to create an effective marketing and customer development for Sainsbury PLC as a hypothesis is developed. In case of qualitative methods of research, the researchers go through a great deal and of the results obtained are descriptive in nature. We sometimes want some of the results descriptive rather than numerical data sets. There are many occasions when we have or do not want to count the number of specific social characteristics of the interaction, but the use of qualitative research methods, feelings, attitudes, beliefs and motivation, unobservable, and check the fluid and intangible factors that explain human behavior. Functional analysis of the relevant research areas and researchers are to detect and evaluate the various factors that influence people shop at Sainsbury PLC to create more opportunities. 3.2.5a Reason to choosing qualitative methods: There are several considerations when deciding on a qualitative research method is adopted. Strauss and Corbin (1990) argued that qualitative methods can be used to better understand this phenomenon, which is still little known. They have a lot of things already known about, which is, or to obtain more detailed information can be difficult to express in quantitative terms, the new approach can be found. Therefore, qualitative methods are, where you can be the first to identify the variables that need to be tested quantitatively appropriate, or where the researcher to determine the quantitative measures are not sufficient to describe the case. 3.2.5b How qualitative method is used: When the number of qualitative research is needed, however, Views, Beliefs, attitude or purpose is required. Qualitative methods used in the company's management when they have different reasons for what they have personal reasons to think about the information provided on company policy. The researchers managed to Sainsbury PLC and the company collects information about a variety of reasons. 29
  • 39. 3.3 Sources of data: Due to the nature of the research, the data is collected from both primary and secondary research. The digital marketing tools for the collection of secondary data collected from various sources. The library is the source for the best. Basic information about the 100 respondents' current management team, customers and clients to identify factors affecting the Sainsbury PLC-based interviews were collected. It was the experience of stressors and judgmental analysis of the Sainsbury store is affected by the use of basic information to identify appropriate. Advantages and Disadvantages of Secondary data: There are some advantages and disadvantages of secondary data according to Aaker et. al. (1995). • Advantages: • A lot cheaper and quicker to make than the original research. • The researcher can choose from a study of some of the leading scholars in their field, which provides the main benefits of data quality. • If the researcher has limited resources and time, other tests may be used samples from larger populations. • How long have the researcher previously collected data in a flexible manner. Researcher can use the data in a subordinate role in the research, or even a central role. • A network of data archives in the survey are compiled and distributed, readily available, so that studies are readily available for secondary analysis. • Disadvantages: • Since many of the studies relating to national population, if you are in the study of well-defined minority subgroup you have a hard time finding relevant information concerned. 30
  • 40. • Secondary analysis can be used in an irresponsible manner. If the variables are not the ones you want, the data can be manipulated and transformed in a way that can reduce the duration of the original study. • Much of the research, especially in large samples, it can be difficult for large files and statistical packages. In addition, secondary data are used for the analysis of relevant research and criticism, and more options are available to further discuss the various causes of this issue. It also plans to issue a statement of work for Sainsbury PLC and how things are under construction, there are also more suitable for determining when to sell. 3.4 Data collection methods: In order to collect and display a variety of factors led to this interview and the interview was, for further evaluation - based on the depth of analysis. Next step is to identify the target for equipment design requirements to the survey interview. Survey of nine questions all together. In an interview to discuss relevant issues and how much of an effective communication plan was developed. Respondents on the research topic, particularly in regions where they are relevant to all respondents, the research results can be expected to know that they have been selected based on the sample. 3.5 Method of Sampling: Sampling methods of random sampling is used for research. 100 respondents were randomly selected Sainsbury PLC and customers to share their knowledge, "Probability sampling, methods to calculate the probability that a sample of the population of each object is not on the basis of" reasons to shop at Sainsbury PLC. This strategy typically results in a more convenient and useful information can be acceptable. 3.6 Validity and Reliability: The process of gathering information from various sources, it is useful to determine the source of legitimacy. Honest and reliable information about the validity of the data and to provide a reasonable source of information about the research question can be considered to be satisfied. It appears many do not jeopardize the care of the company's products and image creation may be difficult to do. In this study, various contact 31
  • 41. information and that the company plans to effectively research and analysis to consider the reliability of the information. 32
  • 42. 3.7 Limitations: Some time researching and more time to the customer's ignorance and false information, including an assessment of the obstacles. The survey was conducted challenge for this research to create efficient data collection for a limited time. But the researcher and their understanding of the limitations in the relevant area from Sainsbury PLC data this restriction reduce its own contribution. Finally, this chapter research methodology of this research, which involves many fields of research methods, including data collection methods is useful for the interpretation. Researchers in this action-based research and research findings to the risk of error, you can increase the value. Qualitative research is to better to assess the quality of information, a digital marketing and quantitative research to be considered for further assistance. Finally, Sainsbury PLC does not identify those who are good reasons for an order for research there. This is a potential barrier to care and research methods of data collection strategies to overcome constraints. Finally, a digital marketing tool for evaluating the collected data is valid and reliable formula to make the payment. And the sample size is sufficient information to support successful research results available, and not as a result of Sainsbury PLC valid and reliable for identifying the impact of factors. Primary and secondary data to investigate researchers more about the different components considered various factors, and effective research plan. 33
  • 43. Chapter 4 Context of Research: 4.0 Profile of Sainsbury’s PLC: J Sainsbury PLC was founded in 1869 and now it runs a total of 934 stores comprising 557 supermarkets and 377 convenience stores. It jointly owns Sainsbury’s Bank with Lloyds Banking Group and has two property joint ventures with Land Securities Group PLC and The British Land Company PLC. The Sainsbury’s brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. The main responsible of the business to the customer is providing quality food with fair price. Each store has a specific importance on fresh food and they struggle to develop continuously new products for their customers. Over 21 million of customers now doing transaction in a week in Sainsbury’s PLC and they have also over a 16 percent of market share in the retail industry. From the web site of Sainsbury’s PLC around 93 percent of UK household are selling and they have also free home delivery service. So shopping is now very easier for the customers. (Sainsbury’s PLC annual report, 2011) 34
  • 44. Sainsbury’s values are core to the way to perform the business. Very carefully and ethically Sainsbury’s trade with their products and the most important part is that they do not compromise on the quality of the product and value. For this reason Sainsbury’s PLC always remain in the heart of every people. In this challenging economic condition Sainsbury’s have done a great perform. Last few years Sainsbury’s total sales were increase up to 4.9 percent and this was happen during the recession period. Per week they are now earning 21 million. Sainsbury’s opened a lot of new stores and attracted more new customers with their attracting new products and also with the help of their existing stores. In short, Sainsbury’s always try to work hard to keep the prices as low as possible so that the customers don’t need to negotiate with the quality product or their choice product (Sainsbury’s PLC annual report, 2011). From the above discussion, Sainsbury’s marketing strategies can create a huge impact for their business to increase the sales and attract new customers by creating new market development in numerous areas. Justin King, CEO of Sainsbury’s PLC announced in May 2010, that ‘Sainsbury's pledged to involve each of its 850 stores in the promotion of the Paralympics after the multimillion-pound deal with LOCOG to be the main sponsor of the London 2012 Paralympics games. Sainsbury’s will sell Paralympics merchandise and become involved in high-profile events such as the torch relay. It will be one of only two sponsors able to take advantage of the limited branding allowed within the games. The promotional rights do not extend to the Olympics.’ In September 2011 Sainsbury’s PLC was announced that the "Try Something New Today" motto will be replaced now with "Live Well for Less". After checking one and half year’s business review they decide to change the motto. The motto will be staying on the till receipts from 16 September 2011. On 30 November 2011 Sainsbury's reached the first milestone. Now Sainsbury’s new vision is vision 2020 which starts by opening their 1000th store in Irvine, Scotland. (Sainsbury’s PLC annual report, 2011) Sainsbury PLC is one of the major retailers in UK. A few years ago it was the most preferred location for retail, but somehow it lost that position. Sainsbury brand healthy food, safe, fresh and fruity with a tradition that was created to help customers. Quality 35
  • 45. and affordability go hand in hand with the business responsible for the process. With special emphasis on fresh products to Sainsbury stores, and continuously strive to develop products to meet their needs. Progress towards the strategic aim of appealing to a wonderful Sainsbury broader spectrum of customers throughout the UK by the improved profitability has improved in the proceeding. Core values are saved to Sainsbury. Customers, without compromising on quality or price in principle act responsibly, and Sainsbury to expect, and this is still the core things that Sainsbury’s do. Sainsbury is still the economic situation is better than to challenge the market. 4.9 percent of total sales (excluding fuel) up 2.3 percent, the same as for an increase in sales. When the family budget this time of great strain, at least not from record oil prices, inflation was under the time. 21 million customer transactions per week, now is the all-time high. They are available in the shop but the shop is not only attracting new clients, customers, reflects the universal appeal of energy. In particular, the hard work of Sainsbury PLC as possible without compromising quality or preferences on the rising cost of raw materials, even though our prices are lower. Sainsbury continues to trade intensity increases the existing farm. This, however, was still in the development of a new shop to sell more than offset an increase in the number of phase-space of non-food and high growth years of experience in the application for the extension ratio. Overall, it fell by the way, the intensity of the year to year. Years’ time customers spend in a week; they become savvier in their purchases and to manage the quality looking for the little that Sainsbury’s can help. Where the leading brands on the campaign to save the value of Sainsbury PLC, to check over 30,000 prices every week and that the cost of competing in such a high standard and is supported by other campaigns for the products offered by over 1,000, the £ 1 or less. It's a good value and quality of our products and high quality has been recognized for many awards this year. Sainsbury, a leading food retailer in the notice and a reasonable price, and their ambition is to offer good quality food to customers' food and health for the better. “Approach and to help encourage customers to promote a healthy and balanced diet eating healthy food and active Lifestyle. From high-quality healthy food and a place readily available to them, in addition, the company confirmed that they will be more clear and easy to label people to help you understand the choices. Sainsbury management and delivery structures to identify what worked and where you want to compare, supermarkets and convenience stores are more differences between the branches is relatively small. Importantly, they are placed in different regions of the most 36
  • 46. important point is whether the investigation was effectively manage diversity management. In addition to their work ethic, and colleagues of all parties, regardless of the seniority of the need to complete the Enterprise view. Sainsbury is a broad overview of the various barometers to help all levels of staff focused on the monitor. Sainsbury's said, it is clear that the employees feel valued, and it is pretty clear-cut succession planning and career development. Corporate communication, effective teamwork within the shop floor is a summary for use. As regards statistics for the past three years, they shot 10% improvement in employee involvement. In the absence of management and improve their education with a high level of the index. Talent management is more important and a very high standard to continue, the potential development of their staff. Continuous improvement, staff development is done through the power of Sainsbury’s energy and they do not shy away from difficult decisions, and it is not a problem. Investors are to focus on actions that help people in need. 37
  • 47. Chapter 5 Findings of Qualitative & Quantitative: 5.0 Introduction: This chapter describes some of the most important questions, and the results of the survey. It also explains the various factors to more sales Sainsbury PLC and how it can create a ratio of more customers. This chapter identifies the results of interviews and observations on these clients and the results are based, are an assessment of the areas that are important to effective engagement with the relevant areas of the various factors that influence people to do in order to Sainsbury’s PLC Shop. 38
  • 48. 5.1 Qualitative Results: This section wills analysis different factors that influence customers to shop at Sainsbury’s PLC. Sainsbury’s PLC is doing business in UK for a long time with other retailers and generating new sales and attracting frequently new customers. In retail market Sainsbury was in the top most position but recently they lost this top position in retailing. When the researcher ask about this question, the manager, Kevin Murphy’s opinion was that, “I believe that, other has opened more stores than Sainsbury’s. So the other retailers get more profit from there and increase the sales and earn the top position” (Interviewed on 27 November 2011). Again for the same question another team leader, Aimee Fobah said, “I think price perception as customers thinks Sainsbury’s is more expensive than other shops. And customers are always looking for quality product in cheap rate so they want to go to different stores to buy the same product rather than Sainsbury’s” (Interviewed on 02 December 2011). According to the management the reason behind losing the top most position in retail market is that the businesses of the other competitors have been expanded by opening more outlets and they are having more profits from that. Whereas other member of the management argued that the reason behind this is that the products of the company is too pricy; so this leads the customers to move towards the other retailers. These are the two reasons but there might be some more reasons behind that. It can be said that mismanagement in the corporate level, relationship with the suppliers, and the relationship with the business partners might be some other reasons for losing the position. Price is one of the most important factors that help retailers to attract the customers. Though Sainsbury lost its top most position in retail market but still it is the third biggest retail store in the market. After recession customers spend more time for choosing their daily needs. But the loyalty and quality of food attract the customers to 39
  • 49. Sainsbury and these customers also informed others to buy the product from this retail shop. Now when the researcher ask that the price of the product of Sainsbury’s is comparatively higher than the other retailers, Muhsin Mustafa, Duty Manager said, “I believe customers demand quality goods at value price and excellent shopping experience in store. So our quality products will attract more new customers and then customer can decide the price of the product is ok or not” (Interviewed on 27 November 2011). Another one Michel Leonard, team leader said, “I think new customers believe Sainsbury’s is morally superior considering we are the top store for fair trade, we also pride ourselves or better quality than the rest” (5 December 2011). According to the management personnel it can be said that Sainsbury’s does fair trading with their quality products and superior morality. Whenever a customer goes for shopping he does consider so many things like brand, quality, price and moreover customer service. Sainsbury’s deals with all these very fairly. In case of new customers Sainsbury’s strongly believe that they will do shopping in their stores as they provide good value, quality and excellent customer service to their customers. Product quality is rapidly becoming an important competitive issue. Quality food is a priority for Sainsbury’s customers. Sainsbury’s have in place quality control at many stages of the food sector in the development of new food products, food company, is a center in the three stages of quality control: quality control, Sensory evaluation and development. In quality control, new and newly developed products from managers and buyers of samples in the sensory evaluation, focus groups are used to find out what consumers think about the current and new products, and in the development process, the Food Center is interested in identifying trends for recipe ideas food. For example, when the researcher ask about the variation of the quality of the product with other retailers, Duty Manager, Muhsin Mustafa said, 40
  • 50. “Sainsbury’s stock thousands of products, sourced naturally and fairly. Provide customers with quality products, similarly to other competitors. Probably better than Morrison and Asda”(Interviewed on 27 November 2011). According to the management the quality of the products of Sainsbury’s is good enough. They have quality control support center where they control the quality of the product and always try to develop the quality more as the customer expect. It is not enough to have a company that sells good products at attractive prices. To generate revenue and profits, the benefits of the products should be communicated to consumers. It can stimulate a rapid increase in sales through targeted promotional incentives for certain products. Each retail business depends on customers for its survival. To encourage customers to use the retail business should know who their potential customers can and what they want. Understanding, recognition, forecasting and customer satisfaction is the focus of marketing. Promotion of such retail businesses the customer aware that the products have to sell them and buy where they can. This device consists of two major areas of retail business. Now when the researcher ask that how do the promotional offers affect the customers as well as the company, Kevin Murphy, the Manager said, “I think Due to current climate, people do not have a lot of money. Therefore they shop special offers more than the other products. And now we have different type of promotions in our products for the Christmas” (Interviewed on 27 November 2011). Again Muhsin Musfata, Duty Manager said, “Promotional offers are proven to drive sales with fewer profit margins but increased the volume of sales that helps the business. Customers benefit from these offers with reductions or multi buys that is Buy one get one free, 3 for 2, Meal deal etc” (Interviewed on 27 November 2011). Now a days promotional offers are very important for customers. They always want the best quality product in cheap rate so they always look for the promotions when they go 41
  • 51. for shopping. As well as it is also important for the company too as they can drive the sales with a good profit that help the business to develop. With loyalty and rewards programs can help customers to get business to hire and retain customers. Offline, traditional retailers are offering these types of incentive programs to increase sales by encouraging repeat business. More importantly, allows the detection of background management loyalty program, which is the customer, and to continue and to build a demographic profile of the customer. Around 10.2 million Sainsbury’s customer have a Nectar Card. Nectar used their knowledge of what customers had previously bought to customize the recommendations they made to them. ‘’How does the loyalty (Nectar) card play a role in customer relationship management?’’ when the researcher ask about this to the management, Muhsin Mustafa’s point of view, “Loyalty card (Nectar) encourage customers to shop at Sainsbury’s regularly. Company gets more customers and customers also get some value from the card” (Interviewed on 27 November 2011). Again Aimee Fobah believe that, “It is more incentives to get them to shop more with us by giving coupons, vouchers” (Interviewed on 02 December 2011). According to the management loyalty card is important for the customers. It encourages more the customers to shop in their store. Customers can get quality product by vouchers or coupons and they can realize the loyalty of the company. They also think that it a good step for the company to become more loyal to the customers. Customer service is the total activity of identifying and meeting customer needs. High- quality customer service is an important way in which companies can be different from others. Sainsbury's customer service strategy is simple: to provide for better customer service, developing the best trained and motivated colleagues in an environment in which the upper large supermarkets compete for market share. Its experts are working in a retail bakery in Market Street; Sainsbury’s to ensure that customers receive the personal service of a trained professional. By creating a high level of customer satisfaction, Sainsbury’s creates a distinct competitive advantage. 42
  • 52. To provide the best customer service, a business needs to know what its customers expect of it and then meet these expectations. Customer satisfaction is vital for keeping customers happy and loyal to the business. It can often be much more cost-effective to retain customers than to attract new ones. Sainsbury’s achieves this by offering products and services. Again when the researcher ask about the customer service and its affects in sales, profit and attracting new customers Duty Manager, Muhsin Mostafa says, “Great customer service is the key to maintain our customers and attracting new customers. Best advertisement is “Word of Mouth” – recommendation by customers to friends, family and work colleagues” (Interviewed on 27 November 2011). Another one Michel Leonard, the Team Leader said, “Extremely important. If customers have a good experience in store with friendly, helpful staffs they are likely to shop there again. And brings their friends and family” (Interviewed on 5 December 2011). And from the Manager, Kevin Murphy’s point of view “Customer service is a key in keeping customers returning to store” (Interviewed on 27 November 2011). According to the management customer service is a very important part of the business. It is the key to maintain the customers and these customers can bring more. It also helps to increase the sales of the business. From the collected data it is evident that some contradictions have come into focus about the pricing strategy of Sainsbury’s PLC. Sainsbury’s motto is “Live Well for Less.” Customers think that the price of the product will be cheaper but when they come to shop they find the products are too pricy. They complain against this. But when the researcher asks that the Motto is contradictory with the price of the product the management says that “Live Well for Less” doesn’t mean that the products will be of very low price. According to the management the price of the products is marginal. According to Muhsin Mustafa the Duty Manager, “Every product has a value and “Live well for Less” does not mean cheap. High quality products at good value price” (Interviewed on 27 November 2011). 43
  • 53. Another respondent, Aimee Fobah states “No. We got better quality products for the price when other retailer’s quality is very poor” (Interviewed on 02 December 2011). Other respondent, Michel Leonard speaks that, “I think sometimes this motto does not transfers well to convenience stores bur main stores show it well” (Interviewed on 05 December 2011). According to the survey most of the customers are saying the price is too high but Sainsbury’ do not compromise with the quality of the product. If customers want to buy the same quality product they have to pay more. There are other retailers also provide the same quality products with a high value price. So Sainsbury’s motto gives a clear understanding for their consumers. Along with this contradiction news came on The Times (10 November 2011) where the headline is ‘People think we’re just too pricey’ and the chief executive of Sainsbury’s PLC, Justin King talks about it. Shoppers still think that it is up to 10% more expensive than its rivals. Traditionally Sainsbury’s has been trying to improve its price reputation to boost its universal appeal. The management team of Sainsbury’s Clapham Old Town also agrees with that and they also believe that the products are not pricey. When the researcher ask about the opinion on this news to the Manager, Kevin Murphy said, “Whilst some price may be high, with average shop over a week. There is not much difference in price” (Interviewed on 27 November 2011). And the Duty Manager, Muhsin Mustafa described this that “Due to intense competition and cut price caused by the economic crisis it may seem more expensive. Some products are cheaper, others are higher than competitors and that goes for all other companies” (Interviewed on 27 November 2011). It can be said with the tune of the management that though some of the products are pricy, some are cheaper. So the customers in average will get good value for their overall shopping. It apparently seems that the prices of some of the products are too 44Appendix 3: The Times
  • 54. high. It’s not only for the Sainsbury’s but it is also true for other companies. The reason behind this might be economic recession in UK. From these points, it is important to consider the customers demand. By providing a great customer service, quality product with reasonable price, clean- clear and easy to shop at stores Sainsbury’s can identify the customers demand. So with a great customer service if Sainsbury’s also look after their stock availability they can do well in future as customers wants to find what they wants in a pleasant environment served by friendly staffs. 5.2 Evaluation: From this qualitative analysis some key issues were found which are very important for Sainsbury’s. If they take these necessary steps they can attract more customers to shop there. Sainsbury’s can control their stock availability and great customer service. If Sainsbury’s have available stock of their product in store then customers are always come to the store to shop as they constantly want a pleasant environment to shop and served by friendly staffs. It is also useful for maintaining relationships with customers is the requirement to communicate with customers directly or through interactive media or survey to take (Berndt et al., 205). They can also focus on some marketing tools, to create a more direct communication with customers and increase sales more. Sainsbury’s is planning communication, where it can be a number of test marketing that you can easily find companies, customers, and can create greater value for their product and do to increase your income. Maintaining high quality services and products, it is important to make a sale and it may create more customers. From this study, many respondents focus more on increasing the monitoring of their quality and price, given to reduce errors. 5.3 Quantitative Results: In this section, the quantitative results of the 100 respondents surveyed Sainsbury’s customer that provides an assessment of these results with the help of a literature review. Based on this assessment is made and some charts and graphs will be created on the basis of frequency tables. This statistical presentation is good to create a more useful 45
  • 55. assessment and provide a good assessment of the various factors that influence and its effect on Sainsbury `s. Based on this analysis, the researchers can test hypotheses, and create more interest from readers and a critical discussion to answer the research questions. This will make the study more critically and identify important factors. Sainsbury’s PLC has more of these areas, allowing it to identify some quantitative data. Table 5.1: Age limit of sample respondent Age Frequency 20-30 17 31-40 40 41-50 25 51-60 15 61 and above 3 Figure 5.1: Pie chart of Table 5.1 Analysis: From the above figure, 17% of the 20-30 years respondents accepted that the quality of the product is good and the price of the products is affordable. Again 40% of the 31-40 years respondents believe that Sainsbury’s product quality is very good and the price of the product is cheap. These respondents always want to shop at Sainsbury’s. Another 15% of 51-60 years and 25% of 41-50 years respondents accepted that the quality of the product is good but it is expensive and the rest of the 3% 60 years and above 46
  • 56. respondents says quality is average and very expensive products. So Sainsbury’s should think about the price and quality more and more. Around 43% of the respondents says that the price of the product is high, so Sainsbury’s PLC should take care of the pricing issue to attract more customers in their store. Table 5.2: Gender of the sample Male Female 21 79 Figure 5.2: Bar chart for Table 5.2 Analysis: From the above figure, the researcher get that 79% of the respondents are female. These respondents are satisfied with the quality and price of the products and most of them shop at Sainsbury’s frequently and use different offers and vouchers from Sainsbury’s that they receive from the company. Again the researcher fined that 21% of the respondent are male where most of them shops at Sainsbury’s often and visit other retails too. These male respondents are also satisfied with the quality but they also say that the price is too high. For this reason these male respondents visit different shops to get the same product in cheap price. Sainsbury’s PLC should think about this pricing issue and provide more different offers to attract these existing customers with also the new customers. This will help in increasing the sales of the business and they can regain the top most position again. 47
  • 57. Table-5.3: How are the prices of the Sainsbury’s products? Factors Frequency Cheap 10 Affordable 33 Expensive 55 Very Expensive 2 Total 100 Figure 5.3: Pie chart for Table 5.3 Analysis: From the figure 5.1, 55% of the respondents accepted that the price of the products of Sainsbury’s is expensive and 33% of respondent agreed that the price of the product is affordable. From the figure it is clear that most of the respondent agreed that products are too pricy of Sainsbury’s. The respondents are also says that according to the product quality price is too high. So Sainsbury’s should take some necessary steps for this. They must talk to the customers and provide them supportive information about their price. Also Sainsbury’s can check the price of the other competitors and discuss with the management team about their price and take care of this problem. 48 How are the prices of the Sainsbury’s products? 10 33 55 2 Cheap Affordable Expensive Very Expensive
  • 58. Table 5.4: How is the customer service at Sainsbury’s? Factors Frequency Excellent 42 Good 43 Average 15 Poor 0 Very Poor 0 Total 100 Figure 5.4: Bar chart for Table 5.4 Analysis: 42-43% of the respondents are happy with Sainsbury’s customer service. Customers are happy with the service but they want quicker service with quality. It can also create long term relationships with the customers. Again 15% of the respondents say that the customer service of Sainsbury’s is average. They say that they did not get proper customer service when they shop at Sainsbury’s. By solving customer’s problems Sainsbury’s can create more loyal customer service and continuing their business growth with less risk. So a level of trust increase here and the customers also feel happy doing shopping in the store. 49 How is the customer service at Sainsbury’s? 0 10 20 30 40 50 Excellent Good Average Poor Very Poor Factors FrequencyPercentage
  • 59. Table 5.5: How effective the Loyalty Card (Nectar) is? Factors Frequency 0-1 17 1-3 7 4-5 17 5-7 2 8- 10 57 Total 100 Figure 5.5: Bar chart of Table 5.5 Analysis: 57% of the respondent said the effectiveness of the Nectar (Loyalty) Card. They said that Sainsbury’s take a good step by providing this Nectar Card. This Nectar scheme replaced the Sainsbury’s Reward Card. Customers can earn more points for every single pound they spend in store or online. Again they believe that Nectar point for reusing their bag is also helpful. According to the customers for using the same bag every time they can earn extra point but it is also good for the environment. 50 How effective the Loyalty Card (Nectar) is? 0 10 20 30 40 50 60 0 to 1 1 to 3 3 to 5 5 to 7 8 to 10 Consumer Rating Frequency Percentage
  • 60. In addition 17% of the respondents don’t interest to use it. These respondents believe that other people may get the information about the products that the customers want to buy. So there is a barrier which may also create problems in the process of loyalty card. Table 5.6: How would you rate the quality of the products at the store? Factors Frequency 1- Very Good 43 2-Good 45 3-Average 12 4-Poor 0 5-Very Poor 0 Total 100 Figure 5.6: Pie chart for Table 5.6 Analysis: From the figure 88% of the respondent said quality of the product is good. It is a priority for Sainsbury’s customers. They respond that they always shop from the Sainsbury’s only for the quality product. So Sainsbury’s should keep this image up and think more to provide better quality product in future to get more customers attraction. In addition 12% of the respondents said that quality of the product is average. Sometimes the customers complain that they take the product but it becomes ruined so 51 How would you rate the quality of the products at the store? 43 45 12 0 0 1- Very Good 2-Good 3-Average 4-Poor 5-Very Poor