This action might not be possible to undo. Are you sure you want to continue?
One time the manufacturers were the king but today’s business world is for the customer. So the way that was applied is not useful for today’s business. In past retailer were only middle man, they only sell the products of manufacturer, consumer usually don’t try to get any other utility from them. But now retailing is very important and competitive industry. All industry players are trying to capture the market by providing superior value. Shop environment, use of technology, online presence, innovative retailing, delivering the expected good at expected price, building innovative value chain and respond to customer need are all the key factor for success. Now retailers not only provide goods to consumer, but also create superior shopping experience and desired value to the customers. So all the market players are trying to create value to customers and a brand in the market to keep and capture the market share.
In U.K retail industry we also are observing these issues. Tesco, J Sainsbury, Asda Group, William Morrison, Home Retail Group and Co-operative Group are the big players in the industry. All the retailers try to create better brand and superior value to price. The industry is also experiencing merger and acquisition. In a competitive market these are common phenomenon. Because the U.K population growth is not very high so the retail market is not growing much and because of these the intensity of the completion is very high. And all the company is trying their best.
1.2 Company Background The Co-operative Group stands apart from other major retailers in the UK as a business which is owned, not by a small group of shareholders, but by more than five million consumers. With core interests in food, financial services, travel, pharmacy, funerals and farms, it has an annual turnover of £14 billion, employs 120,000 staff and operates over 5,000 retail trading outlets serving more than 20 million customers per week. The Co-operative Group Ltd is a United Kingdom publicly owned consumers' co-operative, meaning that it is co-operatively run and owned by its members. Its slogan 'good for everyone' is broadly known by the public. It is the largest organization of this type in the world, with over 5.5 million members, who all have a say in how the business is run and how its social goals are achieved. Membership is open to everyone, provided that they share the values and principles upon which the group was founded. Every year members receive a share of the group's profit, based on the total amount of profit made, and the amount of money they spent with the organization in that year. 1.2.1Purpose of The Co-operative Group To serve our members by carrying on business as a co-operative in accordance with co-operative values and principles. Vision of The Co-operative Group To build a better society by excelling in everything we do Aims of The Co-operative Group • • • • • To be a commercially successful business To meet the needs of our customers and the communities we serve To respond to our members and share our profits To be an ethical leader To be an exemplary employer
To inspire others through co-operation
1.2.2Brands of Co-operative Group The modern Co-operative Group was formed from a large range of different independent societies with separate brand identities. The brands are: • • • • • • • The Co-operative Travel The Co-operative Funeral care The Co-operative Pharmacy Co-operative Financial Services Co-operative Legal Services The Co-operative Farms The Co-operative Motor Group
The Co-operative Group at a Glance:
Co-operative Group Limited
Type Founded Headquarters Key people Industry
Consumer Co-operative 1863 Manchester, England, United Kingdom Peter Marks, Chief Executive Retail (Grocery), banking, insurance,
Bob Willett. North West England. travel. pharmacies Revenue Net income Members Employees Subsidiaries Website £9.coop Source: Company Web Site The Co-operative Group has over 123.4 billion (2008) + £111 million (2008) 4. Motors and Online Electricals. but is still in progress as of January 2011. Healthcare.000 (2010) across 4.3.5 million (2008) 123. farming. The group comprises a family of businesses. funeral directors.57 billion deal. creating the UK's fifth largest food retailer.900 stores Manx Co-operative Society co-operative. with its main head office based in Manchester. was appointed and a decision was taken to rebrand the company's operations as Somerfield after a successful pilot scheme in 1990 with a new store and the first Somerfield store in the country being built in Burnham on Sea.000 employees across the UK. which was originally scheduled to be complete by the end of 2010. The two brands' websites have been merged and a roll-out of Co-op own-brand products across the remaining Somerfield stores will be complete by Spring 2011 1. and the company then built its success upon the new brand alongside the existing 4 .travel agency. The name is currently being phased out and replaced by the Co-operative Food brand in a rolling programme of store conversions. motoring. Somerset. a new chief executive.2. Funeral care.2. 1. The company was taken over by The Co-operative Group on 2 March 2009 in a £1.1Introduction of Somerfield In the following year. including: food.3Somerfield: Somerfield was a chain of small to medium sized supermarkets operating in the United Kingdom. Legal Services. Financial Services.
In May 1994 the Company changed its name to Somerfield plc. 1. with the first store opening in Nottingham in 1991. A small number of stores were also relaunched under a new Food Giant discount brand.2.3Somerfield at a Glance: Somerfield Stores Ltd Former type Industry Founded Defunct Headquarters Products Revenue Net income Owner(s) Employees Parent Private Retail 1875 2010 Manchester. England. was in command. yet another chief executive. David Simons.3.000 The Co-operative Food 5 . UK Groceries £4. Two years later.221 billion (2007-8) £226 million The Co-operative Group 50.Gateway and Food Giant chains.
with specialities in convenience stores and smaller supermarkets.3. Somerfield was also briefly surpassed in size by Waitrose. 1. At one point in early 2007. subject to approval from the Office of Fair Trading.57 billion. is comparable in size. Earlier in June. Only the Co-operative Group. It emerged that four provisional bids were made. Somerfield appointed Citigroup to manage the sale.5Takeover by the Co-operative Group On 16 July 2008. Morrisons confirmed that it was not bidding for Somerfield. with 977 stores (as of January 2007). Somerfield was the sixth largest food retailer in the UK. aiming to complete due diligence for the entire estate of 900 Somerfield stores in the third quarter. when the parent private equity consortium.Website Corporate site Customer site 1. and a preference to sell as a going concern rather than on a piecemeal basis was reported. publicly announced purchase talks. Somerfield had a 3. in a final deal worth £1. Asda.5% in 2006. it was announced that Somerfield would be acquired by the Co-operative Group for £1. but would be expected to sell a minority of stores. and the independent grocers' distributor. Also the fifth largest private company in the UK.2.8% share of the UK grocery market in 2007.7 billion. The five larger retailers were Tesco. On the 24th June. according to TNS Worldpanel. following the sale of the Kwik Save unit and the closure or sale of unprofitable stores. a Thomson Reuters newswire reported sources indicating that the Cooperative Group's acquisition of Somerfield could be finalised at the start of July. Nisa-Today's. The top four have specialities in larger superstores.3. Sainsbury's. News reports valued the chain at over £1. put the chain up for sale. down from 4.5 billion.2.4Operations: As an independent entity. that had acquired Somerfield in December 2005. Morrisons and The Co-operative Group. the UK's largest co-operative. The build-up to this announcement began in late 2007. 6 . while the Co-op has become the largest community retailer.
It was confirmed on 20 October 2008 that the Office of Fair Trading had approved the sale of Somerfield under the condition that 133 stores must be sold. to try to avoid redundancies. The Co-operative have said that they will try to relocate as many staff as possible to other areas of the business or to their head office in Manchester. In February 2009. The process is underway as of June 2009 of closing/selling the additional stores and re-branding the remaining Somerfield stores 1.but would consider the purchase of any stores that are sold after the acquisition. creating the fifth largest supermarket chain in the UK.57 billion. the Co-operative Group announced a deal to purchase Somerfield for £1. So there are 7 . The takeover was officially completed on 2 March 2009. In July 2008. (Lynch and Lind 2002) describe mergers and acquisitions as being one of the central techniques for organizational growth. Newspaper sources said that other major supermarket chains are also interested in such purchases. it was announced that The Co-operative Group plan to close the Somerfield head office in Bristol and relocate all operations to their existing head office in Manchester.3 Motive of the chosen topic Merger and acquisition is popular corporate strategy.
Strategy & Leadership. 30 (2) 1. G. 2002. B. vol. Lynch. and Lind.4: Chosen topic sentence 8 . which must be answered to fulfill the purpose of this research: • • • • • • Is there any positive or negative effect on customer for the acquisition of Somerfield by Co ops? Are there any psychological factors that affect the customer perception towards the co ops brand? Are there any functional factors/attributes that affect the customer perception towards the co ops brand? Is there any short term or long term change requirement to meet the maximum customer expectation? What are the critical success factors for the retail business concept in view of customer? What is the overall customer satisfaction level with the company? Ref: 1.. J.. Escaping merger and acquisition madness. This topic is chosen to indentify the effect on the customer base of a firm after the acquisition There are several research questions.various effect of merger and acquisition on firms practicing these strategy.
1.6 Research Objectives The purpose of research is to discover answers to questions through the application of scientific procedures. The main purpose of research is to understand acquisition process.1 General Objectives The general objective is to understand the acquisition procedure and its effect on the customer base and other effect on the company..Methods and Techniques. R. And my topic sentence is: A study to identify possible affect on customer based on the case study: Acquisition of Somerfield by Co operative Group 1. the motives behind acquisition and the effect of acquisition on the firms. Kothari C. • • Can acquisition bring positive effect in customer proposition? Can acquisition increase customer satisfaction? 9 .After a long discussion with my supervisor and keep in mind about my favorite field in international business and also with the help of three academic books and some journals I have chosen a topic on branding strategy. Because. 1.2 Specific Objective Specific objective is trying to find the answer of few questions. New Delhi: Wishwa Prakashan.3 Research Methodology . 1.6.5 Purpose of the study and statement of the issues Academic education is not enough to build student confidence. 200.6. and overall a brief idea about that research is general objective DR C R KOTHARI (2003). The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Each research study has its own specific purpose. Ref: 1. acquisition is a popular corporate strategy in modern strategy. research gives a practical knowledge of the real world.
also known 1. M. “paradigms are universally recognized scientific achievements that for a time provides model problems and solutions to a community of practitioners”. It provides the frameworks made of acceptable methods. Cambridge: Polity. It is of two types. The Global Age.7 Research paradigm The research paradigm according to Kum(1962:vii). the quantitative approach which was generalizes data obtained from a given observation. 2) Albrow.8 Methodology Research methodology refers to the whole approach used in the research process. and helps to facilitate accuracy of data. and rational for the particular method used in a given study”.. theories and means of data collection. London: Thomson Learning. 1996. 2. and according to Jankowicz (2005) “the analysis of. According to Albrow. M (1996). 2005. It is of two types: the positivistic referred to as the quantitative and phenomenological.1. Business Research Projects. Ref: 1) Jankowicz AD.Introduction: 10 . The other is qualitative approach which The qualitative approach is vital for in-depth knowledge of phenomenology.
2.days there are different types of retail shops and retailers. customer loyalty. Besides territorial extension retail chain now tends to create new formats of retail outlets in order to gain more customers. All consumer and other goods are reached to consumer by the retailer. and profitability: By retails business we mean a lot of things right from banks to a shop at the door step. When an organization manufacturer.Retailing is big an industry.2Types of Retail Shops Department stores: 11 . customer loyalty. it all runs on the basic principles of customer satisfaction. Retail consists of the sale of goods or merchandise from a fixed location. It is not a secret that retail business is one of the most actively developing sectors of national economy. wholesaler or retailer is selling to final consumer he is retailing. According to retiling includes all activities of directly selling to consumer. Descriptions of some of the different type of retailer are discussed now. With the increase in the purchasing power of the people the retail business is sure to flourish. Some are big retailers and some are small. So retailer plays a very important role in supply chain. Retail business is all about the study of the relationships of customer satisfaction. and profitability according to (BARAN et al 2007) Now-a. no matter how big or small the business is.
The square feet area of the store depends on the store holder. Supermarkets: These stores mainly sell food items. They provide limited amount of merchandise at more than average prices with a speedy checkout. Warehouse stores: It piles high volume of products at a lower price. General store: Local rural shops supplies all the goods needed by the area. This store is ideal for emergency and immediate purchases. The range of products are very selective and few in numbers. Sometimes these are called warehouse club and charges fees for their members. These stores are seen in local community often are family-run businesses. often bear a resemblance to a collection of specialty stores. They offer considerable customer service.A very large stores offering a huge assortment of "soft" and "hard goods. 12 . but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Convenience stores: Convenience stores are essentially found in residential areas. These stores fulfill the daily need of foods and other products. A retailer of such store carries variety of categories and has broad assortment at average price. Mom-And-Pop: Mom-And-Pop is a retail outlet that is owned and operated by individuals. Discount stores: These stores tend to offer a wide array of products and services. Variety stores or "dollar stores": Contain low cost goods with less verity.
Now retailers become more powerful. have or have access to a credit card. • Consequently retailers will suffer from even a minor economic downturn as profit margins have already been cut to sustain levels of sales. it is apparent 13 . Now supermarkets houses banks and coffee shops. 2003).Category Specialist: Retailer works with a category and is a specialist for this category. They sell a shopping experience to consumer( Kotler.3 Recent Trends in Retailing: We can identify some trends in recent retail business. Now in UK the retail corporations are increasing their presence by giving superior service and 2. 1999). They are trying to dictate manufacturers ( Kotler. the Internet will account for 25 percent of durable goods and merchandise sales. Overall. • Kids in Retail Trade: Twenty-six percent of teens in the U.S. 2003).. whereby large. • E-Commerce: By 2005. Everyone try to combine different things in their services to create superior experience( KOTLER. • New retail forms and Combination: there are different type of combination and forms of retail business. • Entertaining the Customer: The 21st Century will see the continuation of the “entertainmentization” of retailing (Raymond. more dominant retail markets (both in terms of town centers and outof-town malls) have continued to outperform the average retail growth terms. These are different types of retailer besides this retail shop can be established by individual or corporation. • Growth: There is increasing evidence that polarization of centers is occurring across the UK. • Selling Experience not Just Goods: now retailers not only sell goods to customer. 2003). however. Some market houses fitness centre. They become a specialist in a category and kill the category for others.
In the fourth quarter of 2010.that many retailers are committed to expansion with many new sites due to open over the next few years.4 Retail Business in UK: Retiling is a big industry in terms of sales volume and no of job. an additional 943 shops. Currently the UK is undergoing a sustained period of retail growth. there were 297.990UK retail sales were £278 billion in 2008. with the total number currently at 197. The retail sector generates almost 8% of the Gross Domestic Product of the UK. with the high level of consumer confidence witnessed in previous years holding up. More than a third of consumer spending goes through shops. 2. this situation is fragile and could change rapidly. the number of outlets grew by 5. 2. The competitive environment in the UK retail market has experienced a dramatic re-shape. coupled with speculation about changes in interest rates and job insecurity could affect the rate of growth (VERDICT. 14 . In 2007. New Jersey: Prentice Hall. KOTLER. 9% of all VAT-registered businesses in the UK are retailers. Most of the job holders are under 25 that means most of the people starts their working life. P. there were the equivalents of 3.1 Contribution in Job Creation: This industry provides nearly 3 million jobs in UK. However. despite strong growth in recent years. Present condition and contribution of the industry discussed below. of which sales by predominantly food stores were over £127 billion. an increase of 0. 2003.900 more full-time jobs in UK retail than the same quarter a year earlier. Slower earnings. 2007). Sales over the internet account for less than 4% of total retail sales. Comparing the three months to December with the same period the previous year. Marketing Management. Ref: 1.9%.850 retail outlets in the UK.6%.4.
0% compared with the same month in 2009.5% Source: BRC-Bond Pearce Retail Employment Monitor. The number of outlets grew by 6.5% as a result of tough trading conditions. This was equivalent to a fall of around 10.Fourth Quarter 2010: October – December % change on a year ago Employment: full.4. Q4.9% 5.6% 5.2 Recent Merger and Acquisition in Retail Industry: Due to intense competition in UK retail industry it is experiencing several reshape by merger and acquisition.2010.300 full time jobs year-on-year. Supermarket Aberness Founded/Came to UK Merger And Acquisition Bought by Somerfield Closed 2000 Notes Scottish convenience chain 15 . Comparing just December with the same month in 2009.8% 6. Some events are listed below.9% October Novembe r Monthly % change on a year ago Employment: full-time equivalent 2.0% Number stores 5.0% of December -1.6% 1. 2.Number of stores time equivalent 0. the number of hours worked by retail employees fell by 1.
Alldays All 'Ours Bought by the Co-operative Group Merged with Premier Stores Symbol group within the Moffat company 1989 1984 Frozen Foods 63 stores in South East England Partnership between BP plc and Safeway. converted to Somerfield Bought by Tesco 1990 ABF owned Northern Ireland group Day & Nite David Greig Europa Fairway Bought by Tesco Bought by Somerfield Bought by Tesco Bought by Gateway Presence in central London 16 . Some stores now Tesco Express 1990 Bejam Bishops BP Safeway 1968 Bought by Iceland Bought by Budgens Dissolved following Safeway takeover by Morrisons Carrefour 1970's UK business sold to Gateway/Somerfield. listed as Equinox retailing. then later to Asda Now owned by Farmfoods Capital Freezer Centres Circle K County Stores Crazy Prices Merged with Alldays Sold to Gateway.
liquidated in 2009 2009 Smaller stores of former Kwik Save chain. then Argyll Group Rebranded as Somerfield Bought by Costcutter Some stores sold to Argyll Group for their Presto chain and Kwik Save. Smaller stores sold to BTTF.Fine Fare Food Giant FreshXpress 1956 Bought by Gateway Bought by Kwik Save 1986 2007 Administration in 2008. Bought out by management team led by Brendan Murtagh Scottish chain Galbraith supermarkets Gateway Foodmarkets Select & Save Grandways 1894 1950 Bought by Allied Suppliers. larger 17 . remainder renamed Jacksons Bought by Co-operative Group Bought by Tesco Bought by Argyll Foods to become part of Presto Bought by Tesco Bought by Gateway Bought by Sainsbury's 2004 1992/3 1992 Regional in Yorkshire GT Smith Hillards Hintons 2002 Regional in West Yorkshire Mainly in North East England and Yorkshire Irwin's Stores International Jackson's Regional in Yorkshire and North Midlands Key Markets Kwik Save 1959 Bought by Gateway Bought by Somerfield group 1998. after administration smaller stores became 2007 Smaller stores sold to BTTF and converted to FreshXpress.
all 1998 stores were converted to Safeway. Rebranded part of Gateway chain when Dee took Gateway over Converted to Presto or Lo-Cost stores Lennons Bought by Dee Group Liptons 1871 Bought by Allied Suppliers Local Plus Normans supermarkets Normid Bought by the Co-operative Group Bought by Plymco Rebranded Co-op Was owned by United Cooperatives Aberdeen based co-operative society Norco Rebranded Co-op One Stop Presto 1977 Bought by Tesco After buying out Safeway.FreshXpress converted to Somerfield or leased to others by Somerfield Part of Key Market. Bought by the Co-operative Group Discontinued. rebranded as parent Co-op Retail chain operating in South of England and the Isle of Wight 18 Quality Fare Rainbow Richway Supermarkets .
and it is becoming accepted that there is a strong link between customer satisfaction.5Customer Satisfaction: Today customer satisfaction is an important concern and everyone knows the importance of this.Safeway (UK) 1962 Bought by Morrisons 2005 Safeway Compact stores sold to Somerfield.56bn. It is proposed that customer satisfaction influences 19 . Customer satisfaction has therefore become the key operational goal for many organizations. many larger stores have been sold off and smaller stores rebranded to Co operative b Bought by Tesco 2005 2010 Stewarts Supermarket Limited Supernational Templeton supermarkets VG 1880 ABF owned Northern Ireland group Bought by Gateway Bought by Allied Suppliers then Argyll Group Bought by Alldays Scottish chain. customer retention and profitability. It is widely understood that it is far less costly to keep existing customers than it is to win new ones. Rebranded Sainsbury's Purchase agreed by the Cooperative Group on 16 July 2008 for £1. Still trading under Safeway in Channel Islands Sainsbury's Savacentre Somerfield 1977 1865 Discontinued. For many organizations in the public sector customer satisfaction will itself be the measure of success. rebranded as Presto 2.
1994. Ref: 1. LAWRENCE J. CARL D. Quality Management in Service Organizations: An Interpretation of the Service Quality Phenomenon and a Synthesis of International Research. Thousand Oaks. GITMAN. 164-74. as well as those that offer good ratings. G.6 Customer Satisfaction and Customer Loyalty: The second relevant literature is found in the marketing domain. 2. R. Gummesson (1993).customer loyalty. (1994) etc. "Quality in Retail Banking". LOVEMAN.L. which in turn affects profitability. E. SASSER. Heskett et al. Sweden. 20 . J.. reviews..F. Harvard Business Review. AND FORNELL. 1993. Customer satisfaction is the measure of how the products or services of a farm meet the customer expectation. Ohio: South-Western. Mason... Karlstad. What is customer satisfaction? It is not an easy question. HESKETT. MCDANIEL .2005).A. T. (GITMAN et al. GALLOWAY. 2. 4. or testimonials.E. The term customer loyalty is used to describe the behavior of repeat customers. pp. R. It discusses the impact of customer satisfaction on customer loyalty. 1994). Vol. L. AND SCHLESINGER. March-April.5 – 23.1994.. CA : Sage Publications 3.2005. pp. Now it is a key indicator of success and companies use it as a measure to reward employees. 5.W. Proponents of this theory include researchers such as Anderson and Fornell (1994). International Journal of Service Industry Management. BLANCHARD. The Future of Business: The Essentials. International Service Quality Association. C . Putting the service-profit chain to work. The service management literature argues that customer satisfaction is the result of a customer’s perception of the value received in a transaction or relationship – where value equals perceived service quality relative to price and customer acquisition costs (Blanchard and Galloway. 5 Iss: 4. 1994. E. New Directions in Theory and Practice. ANDERSON.W.O. W.. JONES. GUMMESSON.L.
If a customer leaves the organization because of dissatisfaction all the cost become loss. Measures of customer loyalty were selected because they reflected both length (retention) and depth customer relationship. or the act of recommendation (YI. 68-123. There are different types of costs related to creating customer. The marketing literature suggests that customer loyalty can be defined in There are two distinct ways. telling friends and family. (Ed. 2003). 1994). Creating a customer is very costly. Relationship depth is measured by the percentage of customer’s spending with the organization. service. S. Different feelings create an individual’s overall attachment to a product. Zeithaml. In today’s marketing world it is not asked to satisfy the customer rather asked to delight the customer. A Consumer-based Relationship Framework for Strategic Brand Management. thus adding them to the number of loyal customers. The delighted customer will be the most loyal customer of the organization (KOTLER. V. Marketing Management. University of Florida. 21 . Ref: 1. Loyal customer can be created by providing superior value means by satisfying the customer. The first defines loyalty as an attitude. 1990. 1994. The second definition of loyalty is behavioral. 1990. or organization (FORNIER. So organizations should make loyal customer. 1990). Fornier. These feelings define the individual’s (purely cognitive) degree of loyalty.KOTLER. New Jersey: Prentice Hall. P. 2003. Length of relationship is reported by customer retention rates and means customer-reported relationship tenure.). A critical review of consumer satisfaction. Y. Examples of loyalty behavior include continuing to purchase services from the same supplier. pp. increasing the scale and or scope of a relationship. American Marketing Association. 2. 3.Yi. Review of Marketing. published PhD dissertation.Some customers do a particular company a great service by offering favorable word of mouth publicity regarding a product.
Price: customer is willing to pay a reasonable price for the product and service. Without high quality customer satisfaction it impossible to create customer satisfaction. Customer service is a very important factor of customer satisfaction. and profitability. Managing customer relationships for profit: the dynamics of relationship quality. Satisfaction and dissatisfaction do not depend on a single parameter.8 Area of Customer Satisfaction and Dissatisfaction: There are various areas and factors of customer satisfaction and dissatisfaction.. pp. Proper pricing alone cannot create any customer satisfaction but high price easily create customer dissatisfaction (YONG CAO et al. 5 (5). Customer Service: customer service is the way by which a company treats its customer. Loyal customer makes repeat buy from the organization which yields regular cash flow to the organization.. Loyal customer’s regular buying behaviors contribute to the profitability of the organization. It is a minimum requirement from the customer.2. There are various parameters for determining the customer satisfaction these are: 1. 1994.7 Customer Loyalty and Profitability: Profitability is directly related to customer loyalty. 1994) Ref: 1. T. Worse customer service alone can destroy the entire attempt to create customer satisfaction (FINCH.. (STORBACKA et al . LLOYD C. Sales Force: A well trained sales force is needed to provide batter customer service. 3. K. 1994). Storbacka. customer loyalty. 2. 21-38. and Grönroos. Strandvik. 22 . Without quality sales force high quality service cannot be given. International Journal of Service Industry Management. 2003). The service management and the marketing literatures suggest that there is a strong theoretical underpinning for an empirical exploration of the linkages among customer satisfaction. 2. C. Proper pricing is needed for retaining customers but it is not a strong determinant of customer satisfaction. High quality of service yield high customer satisfaction.
3. An Examination of the Effect of Product Performance on Brand Reputation. These are some factors area of customer satisfaction.. durability and dependability.1 Customer Service: 23 . Brand Perception: Brand positioning and perception is a determinant of customer satisfaction. European Journal of Marketing. SELNES FRED. CA: Crisp Publications. Internet Pricing. These promotions create a perception on the mind of customer and this perception can contribute the customer satisfaction. Menlo Park. Ref: 1. International Journal of Electronic Commerce. 2003. THOMAS S. Price Satisfaction. To create brand loyalty proper brand positioning and promoting the positioning is needed. 8(2) pp 31-50. 1994. Availability: Availability is important for customer satisfaction. 27 ( 9) pp. 1993. As customer can buy the products according to their choice. YONG CAO. Product or Service Quality: Product and service quality depends on some factors reliability. Customer always wants high quality product and services in comparable price..8. FINCH. Product Range: There should be a wide range of product to offer. To create superior customer satisfaction every business should look up on these areas. Satisfaction and Loyalty. 2. Because brand loyalty leads customer satisfaction (SELNES F. 6.19 – 35 2.. and Customer Satisfaction. 1993). 5. LLOYD C. BRUCE R.4. Twenty Ways to Improve Customer Service. If any product or service is not available in the needed time of customer how can s/he be satisfied by that product or service? 7.
Success in today’s competitive environment requires both customer service and customer satisfaction. Often confused to be synonymous, customer service and customer satisfaction are two very distinct concepts that are interdependent. It is possible to perform well within the field of customer service without ever attaining customer satisfaction. Customer service is necessary to attain customer satisfaction. It does not, however, guarantee customer satisfaction. Customer service is the way a company treats a customer. Customer service is doing all the things a company promises the customer in a way that creates customer value (Raphel 1995). Every person who has had any sort of interaction with a company or organization has a different impression of what customer service is all about. For some, customer service is the attitude of the sales associate in a retail establishment. For others, customer service is the courtesy call they get from a manufacturer after purchasing a large appliance. Ref:
1. RAPHEL, MURRAY AND RAPHEL N.,1995. Up the Loyalty Ladder: Turning
Sometimes Customers into Full-time Advocates of Your Business. New York: Harper Business.
184.108.40.206Service Quality: Dr. Leonard Berry, and his colleagues developed a list of five characteristics of service quality (Anderson 1997). • • • • • Reliability, Assurance, Tangibles, Empathy and Responsiveness.
“Customer expectations of service organizations are loud and clear: look good, be responsive, be reassuring through courtesy and competence, and be empathetic but, most of all, be reliable. Do what you said you would do. Keep the service promise” (Anderson 1998) Ref: 1. ANDERSON, KRISTIN AND ZEMKE R., 1997. Knock You Socks Off Answers. New York: Amacon Publishing,
2. ANDERSON, KRISTIN AND ZEMKE R., 1998. Delivering Knock You Socks Off
Answers. New York: Amacon Publishing,
2.8.1 .2 Reliability: Reliability is based on how well a product or service performs compared to the promises about the product or service (Hanan 1989). It is the combined effect of product and company dependability. Reliability means keeping the service promise: doing what was promised would be done to and for the customer. Ref: 1. Hanan, Mack and Karp P., 1989. Customer Satisfaction; How to Maximize, Measure, and Market Your Company ‘s ‘Ultimate Product.’ New York: Amacon Publishing. 2.7.1 .3 Assurance: Assurance is the knowledge and courtesy of the employees who work directly with the customers (Barsky 1995). An employee’s actions assure customers that they are dealing with a well-trained, skillful employee who is competence and capable in the necessary procedures. The ability to provide the necessary assurances to the customer creates an opportunity to build trust. Ref:
1. Barsky, Jonathan D, 1995. World-Class Customer Satisfaction. Chicago: Irwin
2.8.1 .3 Empathy: The service quality attribute of empathy relates to a company’s ability to provide personal understanding and support to the customer (Barsky 1995). An important aspect of empathy is to remember that customers want to be treated as individuals. Ref:
1. Barsky, Jonathan D, 1995. World-Class Customer Satisfaction. Chicago: Irwin
Professional Publishing. 2.8.1 .4 Responsiveness The ability to provide prompt service is even more important today than ever before. Companies such as FedEx and LensCraft (glasses in an hour) have centered the entire business on the concept of timeliness. In the scope of timeliness, two issues stand out as being most influential on customer perceptions of service quality: deadlines and wait times. Deadlines are similar to service promises. In retailing checkout time can be a measure of Responsiveness. Waiting is a part of business these days. Customers wait to be seated at restaurants and serviced at banks. Often, there is very little a service representative can do to shorten wait time without compromising the service they are providing another customer. But a service representative can always take the time to at least make eye contact with a customer who is waiting on service.
Customer is not a single issue rather it is a issue which combines lots of other issue. And it is not the guarantor of customer satisfaction but worse customer service is guarantor of customer dissatisfaction. Satisfaction is a consumer’s post-purchase evaluation of the overall service experience. It is an affective reaction (Menon and Dubé, 2000) in which the consumer’s needs, desires and expectations during the course of the service experience have been met or exceeded (Lovelock, 2001). Satisfaction in this sense could mean that a supermarket has just barely met the customer’s expectations, not exceeded nor disappointed those expectations. The benefits of taking the customer’s response beyond satisfaction at this level by exceeding expectations, is a competitive strategy many retailers aspire to achieve.
model and style should be kept. AND DUBÉ L.. The majority of shoppers across the EU also admit to switching shop if they cannot find key products they need. AND WALKER. size. 2. LOVELOCK. CHRISTOPHER H.2001. 76 (3) pp. K. MENON. and IGD claims store loyalty is fading as the customer "propensity for promiscuity" grows. Availability is becoming an increasingly important issue for consumers seeking out convenient grocery solutions.Ref: 1. If a retailer cannot give the customer his freedom of choice the customer will not fell satisfied. Sydney : Pearson Education Australia Pty Limited. ..8. So to meet the customer need product of different brands. 2. and improving availability is one strategy for delivering against this expectation”.. 285-307. According to Anita Awbi (2006). Journal of Retailing. Different customers have different test.2 Product Range: To improve or create superior customer satisfaction a wide range of product should be salved. RHETT H. 27 . 2000. PAUL G.8. PATTERSON. Services Marketing-an Asia-Pacific Perspective.3 Availability: Retailers and manufacturers across Europe are losing out to store and brand switching as consumers substitute products which are unavailable or difficult to find. Engineering Effective Interpersonal Responses to Customer Emotions for Higher Satisfaction. "It seems shoppers are increasingly relying on factors that make shopping easier and quicker. 2. Research found that German shoppers are the most likely to change stores if the axed product is not found in the salves. 2nd edition.
" said IGD. and it is likely if this action is necessary on a regular basis. It can be proposed that offering greater variety with finer distinctions among items in the product line is likely to convey expertise and commitment to the category. consumers tend to rely on price as an indicator of quality. shoppers do not want to have to visit multiple stores to complete their weekly shop.com/ConsumerTrends/Product-availability-key-to-customer-loyalty [Accessed 04 February 2011] 2. The reasons for using quality cues such as price. FOOD AND DRINK EUROPE."In today's busy society. the notion that consumers infer quality from the number of options offered by a brand is less obvious.4Brand Perception and Choice Building a powerful brand is all about creating the strongest positive perception in the minds of your customers. It can be proposed that the variety a brand offers can act as an important quality cue. Ref: 1. particularly for experience goods. it may play a role both when consumers evaluate each brand separately. Product availability key to customer loyalty [Online]. brand name.8. such as when consumers consider a brand’s end-ofaisle display or a brand that is sold through exclusive distributors. in the absence of other diagnostic information. In contrast. Corporate image impacts customer loyalty directly (Andreassen T W. Further. and manufacturer’s reputation as proxies for quality appear rather straightforward. Nelson 1974). shoppers may switch their entire shop to a competitor store. Lindestad B. For example. 1998). 28 . and when two or more brands’ offerings are directly compared (Nowlis and Simonson 1997). The notion that consumers rely on cues to assess quality is well-established and has been relied upon in both marketing (Purohit and Srivastava 2001) and economics (Klein and Leffler 1981. Corporate image or brand perception and customer satisfaction are not two separate routes to customer loyalty. affecting the inferences consumers make about the brand and thus influencing which brand consumers choose. This quality cue may play a key role particularly when detailed attribute information is unavailable or under low involvement (Kassarjian 1978). Available from: http://www.foodanddrinkeurope.COM 2006.
Retailer Reputation.. STEPHEN N. 2001.7 – 23 2. 3.8. Vol. variations of gourmet chocolates as opposed to both gourmet chocolates and cheap chocolate bars). W.g.5location of shop: 29 . Effect of Manufacturer Reputation. pp 615-639. SRIVASTAVA J. The Role of Market Forces in Assur Contractual Performance. Given the investment involved in developing such category expertise and the additional costs associated with offering greater variety. 2. pp. SIMONSON I. 199. Anthropomorphism and Parsimony.. 5. 1981. 89 (Fall). a firm that offers finer distinctions within a product line. PUROHIT. the firm has more to lose if buyers are subsequently disappointed by actual product quality. 34 (May). we expect greater variety within the specific category to convey higher quality and. 10 (3) pp123-134.. Therefore. as indicated by its wider variety. 4. communicates that it has invested in learning the details of the category and the dimensions on which consumers’ tastes vary. 1978. pp 205– 218. customer satisfaction and loyalty for customers with varying degrees of service expertise. and Product Warranty on Consumer Judgments of Product Quality. Journal of Consumer Psychology. Benjamin and Keith B.Customer loyalty and complex services: The impact of corporate image on quality. Attribute–Task Compatibility as a Determinant of Consumer Preference Reversals. as long as the composition of the brand’s product line sends a consistent message (e. correspondingly. Association for Consumer Research. Journal of Political Economy.. Bodil Lindestad B. Andreassen T. Klein. DEVAVRAT. International Journal of Service Industry Management.That is. Ref 1. KASSARJIAN. affect brand choice. Advances in Consumer Research. 1997.. 9 Iss: 1. Journal of Marketing Research. Leffler . H.
2 Customer relationship management 30 . In the most situations.9. a large part of this group is made up of repeat customers with a high ratio of purchase over time. These are some way to attract and retain customer prescribed by marketing researcher. Every business has to build the customer base by creating superior value and satisfaction we can retain customer. In many cases. These customers are the main source of consumer spending. M 2002) the basic premise of the customer retention based marketing suggests that it is more efficient to focus on your established customer base.9 Customer Base: The customer base is the group of customers and/or consumers that a business serves. the customer base is considered the business's target market.9. 2. 2. It is an important issue to satisfaction. 2.1Building the Base According to (Schneider. The difference between selecting the wrong location and the right site could be the difference between business failure and success. There are some ways how a business can build customer base: • • • • Building Managing Customer Relationship Creating Customer Satisfaction Creating Customer Loyalty and Retention Building Customer Equity There are no hard and sole rule how to build customer base. Every business starts with no customer.Choosing the location your retail business will have a major impact on everything your shop does. where customer behaviors are well understood through market research or past experience.
It involves using technology to organize. Intergroup communication: Multiple perspectives. 2008).10. An acquisition may be private or public. Loughborough. 3. H. & OSBORNE. KLEEMAN. A practical look at delivering assessment to recommendations. J 2002).. C (2002) CRM is first and foremost a business philosophy or strategy where all activities in the company are driven by the needs. CMR requires that business recognize and nurture the relationship with customer (Reynolds. Customer relationship management is a widely-implemented strategy for managing a company’s interactions with customers.10 Acquisition An acquisition is the purchase of one company by another company. By applying we can easily build a strong customer base... clients and sales prospects. 2005) Ref 1. Proceedings of the 6th International Computer Assisted Assessment Conference.According to Osborne. and synchronize business processes. Consolidation is when two companies combine together to form a new company altogether. 2. & Giles. J. depending on whether the acquiree or merging company is or isn't listed in public markets. The reason for acquisition are listed now: 31 . New York: Peter Lang. 2002. J. automate.1 Reason for Acquisition: There are different reason for corporate takeover. 2005. It is quite normal for M&A deal communications to take place in a so-called 'confidentiality bubble' whereby information flows are restricted due to confidentiality agreements (Harwood. Ref: 1. Harwood. C. For several decades in company boards and academics are treating business as a security and the going for diversify their business and create synergy and acquisition is a tool for that (Vishwanath.
The target is in a potential turnaround situation . The target gives you needed skills or experience in management or staff. 3. These are the reasons which are found by different researchers. Expansion and improvement. Increase in breadth and depth of product line. Improvement of IPO or other equity funding possibilities. Reducing competitor.2Types of Acquisition: 32 . The target gives you reduced costs or improved profit.• • • • • • • • • • • • • Diversification of business. The target assists with a geographic expansion. Target holds a unique (or strong) market position . There are complementary skill sets between the two companies.10. Beside these ego and other non business factor can be the reason for acquisition but these are not the issue for the business literature. Access to new customer bases and Stopping or limiting opportunities for a key competitor etc.
known as a creeping tender offer. whereby it tries to persuade enough shareholders.10. private acquisitions are usually friendly. A takeover is considered "hostile" if the target company's board rejects the offer. If the board feels that accepting the offer serves shareholders better than rejecting it. it recommends the offer be accepted by the shareholders. Another method involves quietly purchasing enough stock on the open market. but the bidder continues to pursue it. In all of these ways. An acquiring company can also engage in a proxy fight.From the different view point there can different types of acquisition. to replace the management with a new one which will approve the takeover. because the shareholders and the board are usually the same people or closely connected with one another.1Hostile Takeover: A hostile takeover allows a suitor to take over a target company whose management is unwilling to agree to a merger or takeover.2. Tender offers in the United States are regulated by the Williams Act. 3. or the bidder makes the offer without informing the target company's board beforehand. to effect a change in management. it usually first informs the company's board of directors.10. 2008). The different types of acquisition are discussed now: • • Hostile Takeover Friendly Takeovers 3.2Friendly Takeovers Before a bidder makes an offer for another company. management resists the acquisition but it is carried out anyway. If the shareholders 33 . usually a simple majority. A hostile takeover can be conducted in several ways. A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price (Vishwanath. In a private company.2.
whilst Hurtt. 34 . 3. Effects on these factors leads an effect on the total satisfaction and customer base.10. Kreuze and Langsam (2000) go further and suggest growth is the primary reason for M&As.4Impact of Merger and Acquisition: Acquisition has various effects on operation management and other parts of the organization.10. It can also affect other factors.3The Process of acquisition A number of authors have discussed the different growth strategies available to CEOs. 2. Horizontal Integration are types of acquisition in the different view. Beside these types Vertical Integration.agree to sell the company. then the board is usually of the same mind or sufficiently under the orders of the equity shareholders to cooperate with the bidder (Swann 2004). They suggest that in the 1990s companies shifted the focus for undertaking M&As from a cost saving perspective to using M&As as a strategic vehicle for corporate growth. Perry and Herd (2004) emphasize the critical role of strategic planning when using M&As to grow an organization. These may lead a positive or negative effect on customer. Lynch and Lind (2002) describe mergers and acquisitions as being one of the central techniques for organizational growth. These effects can lead some effects on the customer satisfaction and perceptions. Factors that can be affected by acquisition: Location Customer Service Technology etc. which the authors regarded as an inherently more difficult challenge.
Different methods are used to conduct a research depending on the requirement of particular research. how to continue. 2) How to go about finding the answers. In this particular research the level of customer satisfaction will be measured where it will be investigated that whether the customer is satisfied in different parameters based on the case study of Co-ops acquisition of Summerfield. Research Methodology: 3. 35 . and what constitutes triumph.2The Research process: The research process is alike to undertaking a journey. how to determine progress.3. In this process different statistical test and quantitative test will be applied to find out outcome. A research methodology defines what the action of research is.1Introduction: According to Stephen Potter (2002) “Quite often textbooks on research state that project is made up of a series of straightforward tasks. Ref: 3. each of which is tackled in sequence”. There are practical steps through which the research must pass through the journey in order to find answers to the research questions. For a research journey there are two imperative judgments to make1) What the research will find out about: The effect of acquisition of Somerfield by Co-operative group on its customer satisfaction.
1Main objectives: ‘To measure the customer satisfaction of the Co-Operative retail due to the acquisition of Somerfield. Interest: U. • Find the development area to improve the level of satisfaction. So the researcher picks the subject and wants to learn the industry.2Sub-objectives: Sub objectives of my study are: • To identify the advantages and disadvantages area of this acquisition.K retail industry is now very competitive and it’s related to the daily life of citizens. 36 .4.3.3Considerations in selecting a research problem: These help to ensure that the study will remain manageable and aggravated. 3.4. Extent: The researcher has some knowledge about the industry and can collect the required data to conduct the study. It is really important to word those clearly and specifically.’ 3.4 Developing the Objectives Objectives are the goals that set out to attain in the study. Objectives should be listed under two broad categories: a) Main objectives b) Sub-objectives 3. • What factors contributes to their satisfaction or dissatisfaction area.
The research is constructed based on two hypotheses for this study.5 Constructing hypotheses: Hypotheses is a proposed explanation of a fact or a proposed fact and it is tested to validate or reject the proposition. 37 .3. Hypothesis 2: There are mostly negative effects on customer satisfaction through the acquisition of Somerfield by Co-operative group. Hypothesis 1: There are mostly positive effects on customer satisfaction through the acquisition of Somerfield by Co-operative group.
o 3. The function of research proposes is to provide for the gathering of appropriate information with minimal spending of effort.7. It will help researcher to conduct the study in a planed way.qualitative and quantitative 3. Objectives of the research study. thereby providing focus to the study. o A hypothesis tells what data to accumulate and what not to accumulate. Source of information—Sample Design 4. 3. The researcher selects a sample to represent the population and try to get their perception about the case that studying. Method of Data Collection to be adopted 3. 2.5.7 Methods of Data Collection: There are two types of data • Primary Data— collected for the first time • Secondary Data—those which have already been collected and analyzed by someone else.3. time and money.7.2 Secondary Data: 38 . appropriate for a particular research problem. engages the consideration of the following: 1.1 Primary Data: For collecting the primary data the researcher has arranged a survey with a questionnaire to know the people perception. Tool for Data collection 5.1 The functions of hypotheses: This hypothesis will make the focus on the problem. Data Analysis-. 3. o The researcher will be impartial in the study as the study is an empirical study and the hypothesis will guide to a distinct goal.6 Preparing the Research Design Research design is the conceptual structure within which research would be conducted. The preparation of research design.
This data is collected by a person or organization other than the use of the data. Generally. company publication. London: Market Research in Practice Series.2004. 2004. to be used in many different situations and with many different data-gathering media. I. p-02).Secondary Data is data or information that is already available.Questionnaire is one of the main interviewing tool for gathering primary data in research. Structure and Write Survey Material for Effective Market Research. Ref: 1. journals. The secondary data will be collected from industry publication. Quantitative information will be used to judge the frequency of response and due to the nature of the research the qualitative data will give the in depth information through detail discussion. 39 .8 Structure of Questionnaire: Questionnaires are written in many different ways. I. websites. annual report etc. BRACE. So the outcome will be combination of quantitative and qualitative information out of the survey.. two types of questions are used in research. a) Open question b) Closed ended question Both of the type of question will be used in this particular research. 3. (Brace. news media. Questionnaire Design: How to Plan.
The theme of the questions or the underlying objective of the questionnaire is to find out the following critical query.J. Designing and conducting health surveys: a comprehensive guide(3ed ed). Ref 1.3.(FRD). COHEN..(2006). reference books will be also a great advantage as part of data collection. L.D.al.2006. S. A. ADAY.. publication.CORNELIUS. question that involve complex or complicated phrasing or response formats have generally been thought easier in a face-to-face interview with the respondent Semi-structured interview will be arranged for the data collection purpose. 40 . M.. What is the current experience shopping in Co-ops? Is there any implication/considerable differences you observe after the acquisition? What important aspects do you see most significant as part of critical success factor to meet your desired expectation? What specific suggestions can you provide for the improvements to be made in future? Different web sites.B.9 Structure of interview: According to Aday et. John Wiley and Sons.
3. It will also help to understand and measure the customer equity of the firm.11 Processing and analyzing data: Processing and analyzing data involves a number of closely related operations which are performed with the purpose of summarizing the collected data and organizing these in a manner that they answer the research questions (objectives).1 Sample Area: It will be effective to include all areas to the sample testing.10. Data can be analyzed either manually or with the help of a computer. Among the total sample of 50. 25 will be male and 25 will be from female class to give more reliability of data collection process.10 Sample of Data It is impossible to survey a whole population.2 Quantitative Data Analysis This method is most suitable for large well designed and well administered surveys using properly constructed and worded questionnaire. So sampling will be used in that case. It will ensure the representation of all group of customer. So the data will be collected from the convenient shops which are easy to access. 41 . It can help the researcher to reach the goal. operation.10. 3. Different age group and by gender wise group will be used to do the survey. 21-40 and above 40. Some qualitative data will be collected through interview and also will use the industry publication.3. But it is not possible. This non-probabilistic sampling will also help The researcher to understand the mind of the different group of customer.1 Qualitative Data Analysis: Qualitative data analysis is a very personal process with few rigid rules and procedures. 3. At the same time different age group will be selected: 1220. management strategy. The method will be non-probabilistic or Judgmental sampling as there will be some judgment to select the sample. The sample size and the sample element will be pre-determined.11. marketing strategy and other relevant data to evaluate the customer satisfaction.2 Sample Frame and Size: To collect the required data judgmental sampling will be used within the existing customers of 50. 3. 3. The researcher will not go for random sampling.11.
In this area. 3. Where less than 2. At first some factors will be selected determine the customer satisfaction. The individual rating will be derived as follow: Where R= Rating. If the rating falls between the positive and negative both hypothesis will be rejected and the decision will be the acquisition of Somerfield has no effect on customer satisfaction. knowledge of computer and statistics plays an important role. The factors are: • Quality of Service • Use of Technology • Customer Retention • Convenience • Price These factors will be rated at the scale of 5. From the survey the researcher will find the rating each factor.To analyze data using computer. The researcher will use Excel and SPSS for this analysis. 42 .5 will be considered as negative as and more than 3 will be considered as positive. For this analysis the researcher will use a rating model to evaluate the quantitative data. The aggregate rating will be derived as follow: Where W = Weight for particular factor. The aggregate rating will represent the customer satisfaction and effect on customer base because of acquisition.12 Generalization and Interpretation In this stage all the findings will be interpreted received from different qualitative analysis and proceed to last stage. Then all the rating will aggregate using weight. If the total rating became positive and all other aspect qualitative analysis is positive we will accept the . If the total rating became negative and all other aspect qualitative analysis is negative will accept the . one should be familiar with the appropriate program.
Analysis & Findings: 4. and for many. 4.13 Reporting the Findings: Writing the report is the last.1 Introduction: 43 . the most difficult step of the research process. what he have discovered and what conclusions he have drawn from your findings. The report informs the world what the researcher have done.3.
Here every question in the questionnaire will be analyzed and we will go for statistical hypothesis evaluation process to derive a decision. The sample used for the survey was a non-probabilistic sample. 2.2Response to the Questionnaire: 60 retail customers were surveyed for this purpose and their response are analyzed here.(15) 1) High price and quality (16) 2) Lower price (11) 3) Convenience to customer. What do you thing about Co ops brand image in the market? 4.In this chapter all the response of the customer about the fact will be analyzed and a conclusion about the topic will be drawn. What do you think about the location of shop? 44 Answer 3. (32) 1) Very professional (26) 2) Doesn’t difference (17) 3) Average (15) 4) Not professional at all (2) 1) Always (45) 2) Sometimes (15) 3) Never (0) 6. The co-operative is now a familiar brand in retail industry. How often you get the product you are looking for? 1) At my doorstep (25) . Different shop of cooperative was visited and different customer was surveyed. If yes. What do you think about Co ops Employees? make any 5. Question No 1. how was the customer service? 1) Dissatisfactory (3) 2) Below Average (4) 3) Average (13) 4) Above Average (25) 5) Satisfactory. 4. People from different age group were selected and surveyed. The questionnaire is attached in the appendix of the paper. At a brief table is given here about what they answered.
Which brand you like most? 8. are you happy the way of serving customer by The Co Operative? 1) Yes (33) 2) No (22) 3) Don’t know (5) 11.2) Just ok (28) 3) Inconvenient (7) 1) Somerfield (13) 2) Co operative (47) 7. the Co Ops can get more customers? 1) Agree strongly (23) 2) Agree slightly (22) 3) Don’t know (10) 4) Disagree strongly (2) 5) Disagree slightly (3) 12. Agree strongly (17) 2. Do you think that the acquisition of Somerfield by Co-operative group will improve the service? 1) Agree strongly (14) 2) Agree slightly (20) 3) Don’t know (16) 4) Disagree Strongly (3) 5) Disagree slightly (7) 1. Do you think after the acquisition of Somerfield by Co-operative group. Do you think after the acquisition of Somerfield by Co-operative group all the Somerfield customer will continue with Cooperative group? 10. Don’t know (12) 4. Agree slightly (19) 3. Disagree slightly (9) 9. In your opinion what are the critical success a) Fair-trade product (12) 45 . Disagree Strongly (3) 5.
3. Here a critical analysis has been done. Then.factors for the co-op Summerfield modern time? in b) Customer service (10) c) Price and products (31) d) Shop location (7) These answers will give a view about the customer satisfaction and perception about the cooperative group.1 Close Questionnaire. 4. 4. But it is not possible. So these answers of the participants are analyzed to find out the customer satisfaction level and the factors that’s affect the satisfaction level.3 Closed Questionnaire Analysis There are a set of close questions. 46 . data Analysis and research findings Q: Have ever shop at Co ops shops? The question is asked to know how familiar the customers with the co-op brand. those will be compared with the average level then there will be a conclusion. If there can be a survey before the acquisition than there could be a comparison among the answers. There is an attempt to understand the satisfactory level of the customer and their perception about the acquisition. It will also give some sense about the customer visit to the Co-Operative shops.
Most of the customers surveyed are made visits to the co-operative shops. Among them 83. What is the perception of the customer about the service delivery procedure? The answers of the customers are as below. It proves that the co-operative is familiar brand to the customers. Q: If yes. We rated the customer service satisfactory level as Level 1) Dissatisfactory 2) Below Average 3) Average 4) Above Average 5) Satisfactory Rating 0 1 2 3 4 47 .33% customer visits the co-operative. how was the customer service? This question is made to know about the customer service of the co-operative.
What do you thing about Co ops brand image in the market? This question will reveal the market position and competitive advantages of the co-operative.The average rating of the Customer service of the co-operative is: Rating = 2.33% think that the co-operative shops are convenience to customer. 26. That will make it easy to comment on the basic strategy on what the customers prefer the cooperative. It is thought because of the location of the shops. It can be said that customer service is not dissatisfactory. A clear brand image creates competitive advantage and also creates superior experience to customers.75 This rating indicates that on an average customer service of the co-operative is above average. It will contribute to the overall satisfaction to the brand. Most of the customer surveyed 53. Q.67% people of the sample believe that its market position is high price and high quality product. I think Fair-trade products are the main cause to create this belief and rest of the participants consider the co-operative as low price retailer. availability of the products and considerable price. 48 .
Q: What do you think about Co ops Employees? In retail industry sales persons and other employee are very important in creating customer satisfaction. Evaluation of the employee professionalism by the participants: Rating of the employee professionalism: Level Very professional Professional Rating 5 3 49 . So. So. Better brand proposition. it is a very important factor for creating the customer satisfaction. high quality professional workforce is needed to create better shopping experience. developed service delivery procedure all will be worthless if the employees are not professional. By this question the perception of the customer about the employee of The Co-Operative. competitive strategies.
as customers can get the product according to their need and choice. Participants’ response to this question: 50 . By this question we will try to reveal the product availability of The Co-Operative. Because. it can be understood that there is a positive perception towards the employees of The Co-Operative. it is impossible to retain the customer. to retain customers all the desired product should be kept on the shelves. average rating of employee professionalism in The Co-Operative is 3. So. Not only should the product.Average Not professional at all 1 0 Average Rating = (5*26+3*15+1*17+0*2)/60 = 3.16 at the scale of 5. It is a critical factor for customer satisfaction and customer base. Q: How often you get the product you are looking for? Another important factor for customer satisfaction in the retail industry is availability of the product. same product of different brands be kept. It indicates that on an average employee of The Co-Operative shops are professional.16 So. So. efficient workforce create profitable and long relationship with customers make the customer loyal to the company. The CoOperative’s employees are efficient as per survey. If a customer visits a shop and don’t get the desired product.
It should the place where customers can reach easily and conveniently. shops should be established at a convenient place to customers. 51 . it can be easily derived that The Co-Operative understands the need of customers and keeps the desired product by the customer and customers have a positive perception about the product availability of The Co-Operative. So. Response of the Participants. So. If the shop established at very far from the households no one will go to the shop.75% of the participants said that they always get their required product in The Co-Operatives and 25% said they sometimes get the required product. There was anyone who said he never get the required product from The Co-Operative. Q: What do you think about the location of shop? Location is a very important success factor for the retail shops.
Most of the participant said that locations of The Co-Operative shops are convenient. So. 52 .96/ otherwise we do not reject Ho. Only 12% participants said that locations are inconvenient.) α = 0. P = Hypothesised proportion of success in the population.05 (level of significance for testing the hypothesis) The formula that will be used here is: Z = (Ps – P)/ √ (P (1-P)/N) Here Ps = x/n= no of the success in the sample/ Sample size.5 (Null Hypothesis: most of the customer think think that shop location is convenient ) H1: P > 0. Statistical Test: Here a statistical testing will be done to find out the significant evidence that customers think that shop location is convenient. 41% said that shops are at their door step 47% said that location is ok. Here 53 participants agreed that the acquisition will bring positive result. there is significant evidence that shops are at convenient locations.5 (Alternative Hypothesis: : most of the customer think think that shop location is not convenient. Decision Rule: we will reject Ho if Z < 1. H0: P => 0.
This acquisition enables The Co-Operative group to compete with the market leaders like Tesco.5 Z= (0.88 P= 0.Test statistics: Here. Ps = 53 / 60= 0.88 .5)/ 60) = 5. There is significant evidence that most of the customer think think that shop location is convenient. By the acquisition The Co-Operative will get location in more places and it will get different strategy and management policy and different type of shop.5 (1.0.0. Acquisition can create synergy. Response of the participants: 53 . Ho is not rejected. This acquisition is also can create some synergy. Q: Do you think that the acquisition of Somerfield by Co-operative group will improve the service? This question will help us to understand the perception of the customers about the acquisition of Summerfield by The Co-Operatives.93 Decision So.5) / √ (0.
57 P= 0. Here 38 participants agreed that the acquisition will bring positive result.) H1: P > 0.96/ otherwise we do not reject Ho. P = Hypothesised proportion of success in the population.5 (Alternative Hypothesis: most of the customers think that the acquisition brings positive result.5 (Null Hypothesis: most of the customer think that the acquisition don’t bring positive result. Statistical Test: Here a statistical testing will be done to find out the significant evidence that customers think that the acquisition will bring improvement of service. H0: P <= 0.5 54 .Maximum customers think that the acquisition will improve the service of The Co-Operative. Test statistics: Here. Decision Rule: we will reject Ho if Z > 1.) α = 0. Ps = 38 / 60= 0.05 (level of significance for testing the hypothesis) The formula that will be used here is: Z = (Ps – P)/ √ (P (1-P)/N) Here Ps = x/n= no of the success in the sample/ Sample size.
There is significant evidence that most of the customers do not have any negative perception about the acquisition. So.5) / √ (0. If the Summerfield’s customers continue with The Co-Operative the customer base of The Co-Operative group will have a positive effect.5)/ 60) = 2. Q: Do you think after the acquisition of Somerfield by Co-operative group all the Somerfield customer will continue with Co-operative group? It is also question which is helpful to identify the perception of the customer about the acquisition and its effect.0.63 . Participants’ Response: Most of the participant think that customer of Summerfield will continue with The Co-Operative.5 (1. 55 .Z= (0.0. Ho is rejected. Here 39 participants agreed that the acquisition will bring positive result.06 Decision So. they think the customer base of The Co-Operative will have a positive effect.
Decision Rule: we will reject Ho if Z > 1.5)/ 60) = 2. P = Hypothesised proportion of success in the population.) α = 0.5 (Null Hypothesis: most of the customer think that after the acquisition Summerfield’s customer will not continue with The Co-Operative. Ho is rejected.H0: P <= 0.5 (Alternative Hypothesis: most of the customers think that after the acquisition Summerfield’s customer will continue with The Co-Operative.5 (1.0. Q: Are you happy the way of serving customer by The Co Operative? This question will reveal the customers perception about the company’s current policy. There is significant evidence that most of the customers will continue with The Co-Operative. Test statistics: Here.5 Z= (0.). Ps = 39 / 60= 0.05 (level of significance for testing the hypothesis) The formula that will be used here is: Z = (Ps – P)/ √ (P (1-P)/N) Here Ps = x/n= no of the success in the sample/ Sample size.63 .32 Decision So.57 P= 0. Participants’ Response: 56 .) H1: P > 0.0.96/ otherwise we do not reject Ho. Strategic policy is important for corporate successes.5) / √ (0.
Decision Rule: we will reject Ho if Z > 1.5 (Alternative Hypothesis: most of the customers’ perception about the current policy is good.55 . Test statistics: Here.5 (1.96/ otherwise we do not reject Ho.05 (level of significance for testing the hypothesis) The formula that will be used here is: Z = (Ps – P)/ √ (P (1-P)/N) Here Ps = x/n= no of the success in the sample/ Sample size. Ps = 33 / 60= 0.5 Z= (0.) α = 0. Here 33 participants current policy is good.5) / √ (0.55 P= 0.) H1: P > 0.0.5 (Null Hypothesis: most of the customers’ perception about the current policy is not good.5)/ 60) 57 . P = Hypothesised proportion of success in the population. H0: P <= 0.0.Statistical Test: Here a statistical testing will be done to find out the significant evidence that customers’ perception about the policy.
Ho is not rejected. Q: In your opinion what are the critical success factors for the co-op Summerfield time? in modern 58 . the Co-Operative will get more customer than the combined customer of Summerfield and the Co-Operative. There is significant evidence that most of the customers’ perception about the current policy is not good. Participants’ Response: Most of the participants think that after acquisition of the Summerfield. Q: Do you think after the acquisition of Somerfield by Co-operative group.= 0. the Co Ops can get more customers? It is also question which is helpful to identify the perception of the customer about the acquisition and its effect.96 Decision So. As The Co-Operative acquired Summerfield it will create some short of synergy. The Co-Operative will get some new locations and some new strategy and other asset. Because.774 Z value is less than 1.
strategy and technology. 4. In response to these question responded differently. some says about the quality and price. If the effects are managed properly and all the resources used properly the factors of the customer satisfaction there must be positive effect on the customer base. 25% participants talk about the customer service. Participants’ Response: 51% of the participants shout about the price and product it indicates price and desired product is the most important issue to manage. 4. management of the shops. Most of them belief that acquisition can bring positive changes in the organization if it can be accommodate the new or better parts of the acquired firm. some said the location and some said about customer service.By this question it will be easy to find the factor the factor which is get most emphasis from the customer.5Other Data Analysis: 59 .4 Open Question Analysis: There are some open questions in the questionnaire. As critical success factor many said about the use of ICT. Acquisition can have direct effect on location.
al. organization or community. Without improving this entire factor it is not 60 .al. location. After the acquisition the customers base had a positive effect.Besides these questions we can get and analyze different data and can get clear perception about the topic.(Gill and Johnson. participant as observer means both research and the subjects are aware of the fact that it is a entry level work relationship.et.p-144) .(1992). And the market share increased to 8.”(p8).2002. price and quality.2% which is more than the combined. The Cooperative Group has reported "record" results for 2010. et. According to Ackroyd. Participant observer not only observing the whole things but also feeling it. It was great experience to work in this paper. A number of merger and acquisition has occurred in the industry and come to this shape. And this effect yield a abnormal growth in the industry. Sales and Market Share: After the acquisition of Summerfield in 2008 in 2009 The Co-Operative group sales and profit increased by 37% and 22 % respectively. with higher sales and profits up almost 50%. 4. In this research I worked like a Participant as observer. In retail industry there are different critical factors for success such as customer service. employee professionalism etc.6 Participant . There are different types of retail shop in UK.(2007).Observation Research Findings According to Saunders. “the researcher attempts to participate fully in lives and activities of subjects and thus becomes a member of their group. After looking through these data we can easily identify the effect of acquisition of Summerfield on customer base. Retail industry in UK come to this stage by different rebuilding and reshape. These are happened because of the acquisition of the Summerfield.
. SAUNDERS. London. Pearson Prentice Hall-Pearson professionals limited. M. 2. and Johnson. 2007.. London. Acquisition can create positive effect on customer base.. Longman 5.). And THORNHILL. S AND HUGHES. J. Gill. In UK retail industry the competition is much intense so only way is to improve all the way. 3. ACKROYD. J. Acquisition can be a tool to expand the business and neutralize the rival. Here 5th largest the Co-Operative acquired its rival Summerfield. London. In this paper the effect of this acquisition on the customer base of Co-operative group is analyzed. P. After rigorous analysis it can be easily concluded that there are mostly positive effect on customer through the acquisition of Somerfield by Co-operative group.. This case of acquisition is one of them. 2002. Ref: 1. P.Conclusion 61 .possible to outperform the industry. Brand proposition is an important issue in managing any business. Merger and acquisition is a common phenomenon in modern business world. A. Research Methods for Managers(3rd ed). Sage Publishing. Research Methods for business students(4th ed.. Acquisition can create synergy which will help to improve the operation and other procedure.1992. At first the position in the market and then according to that position all the strategy should be taken. Data Collection in Context(2nd ed). A clear brand image creates competitive advantage and also creates superior experience to customers. LEWIS.
And customer satisfaction in retail industry depend on some other factors like. The largest acquisition was this acquisition. Without the help of this industry it’s impossible to run the life. product availability etc. For dealing daily life this industry helps most. In recent years some merger and acquisition has happened. the limitations of the stud. And there a positive effect of the acquisition on customer base found in the process. To identify the effect of the acquisition on customer base at first the factor for which the customer base is affected is customer satisfaction. brand proposition. my recommendation based on findings and analysis and guide for the future research. And this industry experienced several reshape and rebuilding in UK. Than with a survey information are collected and analyzed. All these are identified in the literature review part. location. The Co-Op is the 5th largest retailer in UK and capture nearly 8% of the UK retail market. Retail industry is a large industry and the highest job providing industry. Reference: 62 . The target of my dissertation was to find out the effect of the acquisition on the customer base based on the case of acquisition of Summerfield by The Co-Operative Group. Then the procedure of indentifying the effects is formulated in research methodology. price and quality. customer service.In this chapter a conclusion of the study is given by providing the summery of the study. In this part acquisition and its effect also discussed.
199. A. Journal of Marketing Research.D. ACKROYD. Andreassen T. P. 2. pp. ADAY.. 2002.. LEWIS..Customer loyalty and complex services: The impact of corporate image on quality. 2007.2006. Loughborough. Attribute–Task Compatibility as a Determinant of Consumer Preference Reversals.. J. STEPHEN N. C.1992. 10.. KLEEMAN. M. H. 63 . Data Collection in Context(2nd ed). S. Advances in Consumer Research. Designing and conducting health surveys: a comprehensive guide(3ed ed). New York: Peter Lang. 3. BRACE.CORNELIUS. 9 Iss: 1.J. COHEN. A practical look at delivering assessment to recommendations. W.. And THORNHILL.. 8. Questionnaire Design: How to Plan. customer satisfaction and loyalty for customers with varying degrees of service expertise.B. 7. 2005. pp 205– 218. DEVAVRAT. SIMONSON I. 6.. 11. J. PUROHIT. John Wiley and Sons. Research Methods for Managers(3rd ed). & OSBORNE.1. Pearson Prentice Hall-Pearson professionals limited. Bodil Lindestad B. Longman 4.. 34 (May).. KASSARJIAN. P. 2002. Harwood. London: Market Research in Practice Series. SAUNDERS. 2004. Vol. Gill. Sage Publishing.(FRD). Effect of Manufacturer Reputation. L. SRIVASTAVA J. and Product Warranty on Consumer Judgments of Product Quality. London.. M. London. Proceedings of the 6th International Computer Assisted Assessment Conference.. & Giles.). 10 (3) pp123-134. S AND HUGHES. Intergroup communication: Multiple perspectives. Journal of Consumer Psychology. Retailer Reputation. 1978.. H. 2001. Anthropomorphism and Parsimony. Research Methods for business students(4th ed. J. International Journal of Service Industry Management. Association for Consumer Research.. 5. A. I. 1997. London. Structure and Write Survey Material for Effective Market Research. J. and Johnson..7 – 23 9.
MENON.com/ConsumerTrends/Product-availability-key-to-customer-loyalty [Accessed 04 February 2011] 14. MURRAY AND RAPHEL N. Klein. 8(2) pp 31-50. New York: Amacon Publishing. Sydney : Pearson Education Australia Pty Limited.. 1998. CHRISTOPHER H. and Market Your Company ‘s ‘Ultimate Product. Barsky. 64 . Price Satisfaction. Available from: http://www. 285-307. Services Marketing-an Asia-Pacific Perspective. Journal of Political Economy. 2nd edition. 76 (3) pp.foodanddrinkeurope.COM 2006. 20. Hanan. Customer Satisfaction. CA: Crisp Publications. 13. . KRISTIN AND ZEMKE R. World-Class Customer Satisfaction. Delivering Knock You Socks Off Answers. 2000. PATTERSON. AND WALKER. How to Maximize. 1997. AND DUBÉ L. Jonathan D. PAUL G. Chicago: Irwin Professional Publishing. 17.. Measure. LLOYD C.1995. YONG CAO. International Journal of Electronic Commerce. LOVELOCK. New York: Amacon Publishing. and Customer Satisfaction. FINCH. Engineering Effective Interpersonal Responses to Customer Emotions for Higher Satisfaction. FOOD AND DRINK EUROPE.. 1994. ANDERSON. 1989. 16. Mack and Karp P.. Twenty Ways to Improve Customer Service. ANDERSON.12. Internet Pricing... Benjamin and Keith B. Leffler . pp 615-639. New York: Harper Business. The Role of Market Forces in Assur Contractual Performance. Up the Loyalty Ladder: Turning Sometimes Customers into Full-time Advocates of Your Business.. 1995. 18. Product availability key to customer loyalty [Online]. 21. THOMAS S.2001. 2003. BRUCE R. RAPHEL. 1981. 15.’ New York: Amacon Publishing.. RHETT H. KRISTIN AND ZEMKE R.. Knock You Socks Off Answers. Journal of Retailing. 19. K. 89 (Fall). Menlo Park.
C .Methods and Techniques. Sweden. 25. An Examination of the Effect of Product Performance on Brand Reputation. Karlstad. ANDERSON.3 Research Methodology . "Quality in Retail Banking". GUMMESSON. The Future of Business: The Essentials. GITMAN. C. Mason.. E. Cambridge: Polity. 21-38. 1994.. New Delhi: Wishwa Prakashan. AND SCHLESINGER. Jankowicz AD. The Global Age. 5 (5). and Grönroos.. pp. Storbacka. T. 1994.A. Yi. Thousand Oaks. R.L. European Journal of Marketing. 1990. 32. 24. 27. 65 .2005. S... Putting the service-profit chain to work. 1993.). GALLOWAY. 1996. 68-123..E. BLANCHARD. 164-74. A critical review of consumer satisfaction. 5 Iss: 4. Zeithaml. University of Florida. G.19 – 35 23. International Journal of Service Industry Management.O.. J. 30. LOVEMAN. 1990. 1994. 1993. A Consumer-based Relationship Framework for Strategic Brand Management. HESKETT. R. E. JONES. L. 27 ( 9) pp. International Service Quality Association. pp. 1994. Ohio: South-Western. Quality Management in Service Organizations: An Interpretation of the Service Quality Phenomenon and a Synthesis of International Research. SASSER.F. M. Review of Marketing. Harvard Business Review. (Ed. New Directions in Theory and Practice. American Marketing Association. MCDANIEL .W. LAWRENCE J. 31. Vol.L. 29. K. CA : Sage Publications 28. Managing customer relationships for profit: the dynamics of relationship quality. 2005. Strandvik. W. London: Thomson Learning. SELNES FRED. 26. AND FORNELL. 33.22. pp. Fornier. CARL D. R.W. pp. Satisfaction and Loyalty. Business Research Projects. Y. Albrow. V.5 – 23. March-April. T.Kothari C.1994... International Journal of Service Industry Management. 200. published PhD dissertation.
30 (2) 66 . 2002.. B. vol. Strategy & Leadership. Escaping merger and acquisition madness. J.. G.34. and Lind. Lynch.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.