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Research Project On Customer Satisfaction of TESCO
Research Project On Customer Satisfaction of TESCO
1) problems identification
2) literature review
3) Clarify the problem
4) Clearly define terms and concepts
5) Define the population
6) Develop the instrumental plan
7) Collect data
8) Analyze data
9) Recommendation and conclusion
A literature review is already done to relate with the problems. It shows the
trend and cause of losing market share because of customer dissatisfaction.
Losing market share is the problem for TESCOPLC. The problem caused
because increased customer dissatisfaction. The problem is clearly stated
here.
In this section the terms and concept are being introduced. I am going to
consider the research for academic purpose. Data nondisclosures are going
to be applied in overall research. Privacy, access of data is going to be
restricted. Liberty to not participant in research, participant’s right is going to
be followed.
Theoretical framework
Theoretical framework describes relationships between various parties
related to the industry. The variation of customers can have a large impact
on the study. Diversified customer range makes it complicated to understand
the trends and pattern in the survey study. Various research identifies the
characteristics of customer has influence on customer satisfaction analysis of
an organization. The main factors regarding in this research is customer
characteristics, industry characteristics and business operation of the
organization
1) Middle class and upper middle class people generally visit the stores.
2) Buying decisions largely depends on head of the family
3) Product and service quality of the retail business organization
4) Availability of the store nearby.
Those things are important in determining the population for get a clear view
of the research. It will help to understand the trends and patterns in
customer buying habit.
In summary, we can say that, the existing research put a lot of factors that
affect the customer dissatisfaction of retail business. Here, we make a
attempt to get a quick glance on reasons of customer satisfaction.
Research methodology
This is a descriptive research for understanding customer satisfaction
reasons of TESCOplc. A questionnaire has been designed for respondent of
survey. The questionnaire helps to meet the objectives of the research. After
collecting data from sampling, statistical tools are applied to analyze the
data. Charts and tables are being presented to interpret the collected data.
This will help to understand the research. (Toelle, S., 2006)
Data source
As it is a descriptive research, data source is important factor in completing
research. There are two types of data:
1) Primary data
2) Secondary data
Primary data
Primary data is important in the collected data in a research as they are
directly connected with subjects that are main concern in a research. The
research finding largely depends on the collection of primary data. It is also
known as primary research in some context. There are three popular types of
primary data collection methods which are survey, experiment and
observation.
Secondary data
Secondary data is the data in a research that reflects various publication,
criticism, journals or other electronic and print media. Secondary data is very
important in research as it relates practical scenario with academic context.
Because of low cost, availability and many others cause those data are used
in research project. As it is easily accessible, it is popular in research
projects. (Wright, R., 2006)
Window shoppers 70
Middle 110
Satisfied 110
Low satisfied 50
Grocery; 38%
Cosmetics; 33%
Electronics; 10%
Figur
e 3.2 Reasons for customer satisfaction
Reasons for customer dissatisfactions: survey shows that there are some
reasons for customer dissatisfaction. There is a list of numbers which shows
respondents dissatisfaction level on various factors. The respondent
identified several problems while doing their shopping. Some shows that
those may cause in loss of existing customer as well as potential customers.
There are a wide variety of customers for buying in the TESCO outlets. As
TESCO is third large company in the retail business, they have several types
of customer that they have to deal with everyday. Chart 1.1 shows that
there are people, who generally prefers to do shopping if the items are
available under one roofs. The diversity of buying habit of people makes it
more complex to identify the hot selling product from the product variety.
There are a wide number of people who visited TESCO outlets regularly.
Although, there are some window shoppers in the Tesco, the regular
customer’s consideration is most important in the organization. Survey
shows among, 2oo respondent, 130, which means 65% is regular shoppers.
It shows that number of regular customer is 20% more than the window
shoppers. So it should introduce more comfortable shopping experience with
window shopper to turn them into regular shoppers.
There are a lot of reasons for people to do buying with TESCO plc. Figure 3.2
shows those 10 identical reasons for customer satisfaction. The main reasons
of customer satisfaction are both shopping environment and pricing strategy.
About 30% people do shopping with TESCO for those two reasons. It must
have to consider importantly sustaining the customer satisfaction. Then
customer satisfaction caused by factors like product variety, business
operation and advertising strategy. 12.5% people do shopping for those
reasons with TESCO plc. Then factors of billing counter satisfaction make
10% people happy. A problem with billing counter is one of the features that
should consider importantly in retail business. Then the factors like location
ease to locate product and brand image make7.5% customer happy
respectively.
The data form survey shows some factors that cause shopping experience
dissatisfaction. Most of the customer found availability of store as main
problems with TESCO plc. 30% customer is unhappy because of this reason.
Among 30%, 10% states that, they have to do shopping with other retail
store. 20% customers identify interior designing and arrangement of product
in store as a problem. Window shoppers have generally problems with
locating a product in the store. 15% customer identifies pricing strategy as a
problem with TESCO store. They claim that, the price is sometimes too high
in context with other retail store. Then business operation and customer
support cause customer dissatisfaction. 12.5% found those as main problem
respectively. Poor marketing strategy identified as a problem by 10% of total
population sample. They claim that, it should implement more attractive
marketing strategy to identify potential customers and satisfy existing
customers.
Conclusion
Customer satisfaction is one of the main concerns of retail business as it has
a large impact on sustainability of organization of the industry. As a giant in
retail industry, TESCO has to put a considerable space to satisfy the
customer. To maintain the sustainability and expanding market share,
recommended steps must have to put for consideration. To overcome the
existing problems, initiatives must have to introduced and solve it to gain
customer satisfaction. After all, we can conclude that, to introduce new
satisfaction factors with existing factors will result in competitive advantages
and high market share.
References
Allen, D. (2004). Customer satisfaction research management. Milwaukee: ASQ Quality Press.
Evans, M., Jamal, A. and Foxall, G. (2009). Consumer behaviour. Chichester, England: Wiley.
Lewis, R. and Dart, M. (2010). The new rules of retail. New York, NY: Palgrave Macmillan.
Marcoulides, G. (1998). Modern methods for business research. Mahwah, N.J.: Lawrence
Erlbaum.
Toelle, S. (2006). The linkages among service quality attributes, customer value, customer
satisfaction, and customer loyalty in Indonesian retail banking settings.
Sample questionnaire
1) Name:
………………………………………………………………………………………………………………
……………….
2) Age:…………………………………………..
3) Sex: ………………………….
4) Types of shoppers:
Regular customer
Window customer
Grocery
Electronic
Cosmetics
Apparels
6) Satisfaction level
Highly Satisfied
Satisfied
Low satisfied
Locations
Product variety
Shopping environment
Billing counters
Ease to locate product
Business operation
Pricing strategy
Advertising strategy
Brand image