RESEARCH PROPOSAL

On

BUSINESS RESEARCH

ADNAN UL HAQ

Influences of e-retailing services on the consumers satisfaction in Britain

Abstract This report investigates the electronic retailings role in the marketing world to attain the competitive advantage through increasing in general satisfaction of a consumer. This research aim at finding the correlation between the electronic retailing and overall satisfaction of customer that uses e-retailing service. Various dimensions of strategies are discussed in this paper to clarify the concepts of required change leading to modification of tools and techniques in the system of retailing world. To which level the e-retailing services has its impact on the buying behaviour of a consumer is discussed through previous empirical researches and models of consumer behaviour. Furthermore, the different factors prevailing in the environment is analysed in a critical manner that has significant role in the certain behaviour of a consumer. The perspective of management to offer these services is explored through the managements literature and interviews of experts. To compete well and gain competitive edge in the market, the dynamics of market is explained through various models from marketing world. With the constant technological changes and tough competition in the market, the impact of these services is explained from the consumers point of view also through semi structured questionnaire.

Table of Content Page Abstract Introduction Background Purpose Aim Objective Research Questions Hypotheses Literature Review Scope of the Research Numerous empirical researches Conceptual underpinning of research Critical Appraisal of literature review 8 1 3

Research Methodology Research Design

Methodology Data Collection Sampling Method Questionnaire Semi structured Interviews Z-test

13

Time Table Gant Chart Bibliography

16

17

Introduction:

To fill the gap between the product or services offered by seller and the potential consumer of those offered products and services, most essential tool is the adequate marketing as it helps the organisation to accomplish its ultimate objective by creating strong positive perception of consumer about the products or services. For business world today, it is the era where researchers, marketers and analysts need to understand the demands imposed by the consumers therefore it is important to understand the buying behaviour and satisfaction of a consumer which helps the firms in gaining the competitive edge in the market it is operating. To do so, the numerous types of industries are using various types of strategies and undoubtedly, electronic retailing is one of the unique strategies used by business world to gain the satisfaction of a consumer so that competitors can be outclassed. By electronic retailing the products are sell out online. In modern times, the retailing sector is considered as the important sector to contribute towards economy. The statistics show that graph of sales in retailing sector has been improving with the time period and channels to market products are given the credit for this improvement. Different types of techniques and tools are designed by the marketing world to increase the revenue of retail sector. United Kingdom retail sectors sales was over 288 billion by the end of 2009, creating full time jobs approximately 12700 in the following year 2010, this reveal that full time jobs ratio has inclined to 2.1% more as compare to last year (prospects.ac.uk, 2011). This indicates to a significant fact that even though in recent recessions, the retailing sector has shown good and steady progress. It is also obvious that the severe competition exist in the market and to retain ones position, firms are bound to adopt new ways and techniques to gain the customers confidence by satisfying their needs. To attract the customers and take the edge in the dynamics over rivals, the marketers have come up with the new marketing strategies. In recent time more preference is given to consumers satisfaction by the firms because studies have shown that those customers who are more satisfied with the same brand they do not change it on regular basis, therefore organisations are trying different ways to respond to the needs of consumers (McGoldrick, 2002). The strong

and severe competition among organisations has incurred due to the increase in the consumers demand and changes in his preferences. Due to this, the ways, tool, and strategies of retailing has changed more then ever. According to the report published by British Retail Consortium, (2010) approximately over one third of spending in retail shop is done through electronic medium out of total 286000 retail units. Social and economic dimensions show the significance of the retailing sector as every day somehow huge number of people comes in contact with the retailing world which forms the social network automatically and since the buying and selling takes place, therefore the economic bondage is also formed between the retail sector and everyday population. With the progress in world, traditional method of purchasing products has been replaced by the modified, improved and advanced technology. To reach the consumers in the swiftest manner, sellers are adopting to these modern techniques. Due to this development in strategies, both parties have benefited from it as the huge variety of services and products are easily accessed by the consumer through electronic medium. At same time, to outclass the other players in the market, these techniques are practiced by the firms. The rapid expansion of the retail industry is due to the advancement in the strategies of marketing because it serves strong basis for various types of organisations to create a better understanding about the needs and demands of consumers. Marketing assist firms in the provision of details about the consumers buying behaviour and provide sufficient information to organisations about consumers preferences and choices. The increase in the level of competition at a consistent rate is due to the expansion of retail industry. Nowadays, the survival is vital for every organisation therefore it is essential to remain fittest in all situations. The advantage over competition is gained over other competitors by means of adoption of new technology. To gain more profitability and remain the main players of market, the firms have realised that the satisfaction of a customer is important component to accomplish. This profitability of firm increase automatically due to competitive advantage gained by firms is caused by the consumers satisfaction. The main focus of research is to identify numerous reasons that add to rapid growth of retailing sector. Factors contributing to the rapid expansion are being examined in

critical manner because it adds to affect the entire process of electronic retailing industry.

The studies of Mittal, (2005) Rohm and Swaminathan (2004) revealed that more than casual services, electronic retailing has grown as deliberate and finest techniques that is result of ease and convenience for the customers satisfaction. Nowadays, the working efficiency of retail industry is continuously improving due to the marketing sectors development in approaches and techniques.

This research will explore in detail that whether the e-retailing services are playing a vital role in the development of the strategies of the organisation. Furthermore, the research will be beneficial for increasing the knowledge about the overall satisfaction of the consumers. The daily life population come across the retailing sector in some ways so therefore it is essential that clear understanding is generated about the eretailing sector as it will be beneficial for the future researchers to explore the linkage between e-satisfaction and e-loyalty and moreover, link these variables with overall satisfaction of the consumers. The research is vital in the academic context as it will be considered as current management literature on the e-retailing in the United Kingdom.

Purpose: The prime objective to carry out this investigation is to identify the connection between the services of electronic retailing and consumers satisfaction. The relationship will be explored in context of the managements literature available and critical examination of the different types of environmental factors that exist in the hospitality industry of United Kingdom. The competitive advantage gain through increasing the level of satisfaction of consumers is be analysed in this study. The recent researches have pointed that competitive advantage, consumers satisfaction and the change in the methods of retailing are linked. Through this research relationship will be examined in statistical mode. The intended outcome is that the general understanding about the retailing world is enhanced. The correlation between e-retailing services and the overall satisfaction of the consumer is explored along with the role of e-satisfaction and e-loyalty in the process. The research will be assisting the marketers for developing strategies to

accomplish the edge in market. Moreover, the linkage between e-satisfaction and eloyalty will be identified through this research.

Aim: To evaluate critically the effects of electronic retailing on the satisfaction of consumers in the UKs retailing sector.

Research Objectives:

Through this research study following are the short term objective to accomplish:

To investigate deeper the impact of e-retailing services on the overall satisfaction of the customers. To carry out the primary investigation about the e-satisfaction and e-loyalty of the consumers who are using e-retailing services offered by Tesco and Sainsburys.

To critically evaluate the various factors influencing the consumer behaviour while shopping online. To conclude the reasons behind the adoption of e-retailing services and its influences on the overall satisfaction of consumers.

Research Questions: This study is executed in order to find the answers for the following questions:

Q1. The relationship existing between the e-satisfaction and e-loyalty is strong or not? Q2. Are the e-retailing services influencing the overall satisfaction of the consumers or not?

Development of Hypothesis: To find the relationship between variables, the development of hypothesis is of high importance as it represents the assumption based on the independent and dependent variables. Two hypotheses for the present investigation are serving the basis to research the answers for the research questions. The electronic retailing services are

undertaken as the independent variable whereas satisfaction of a consumer is considered as dependent variable in this causal-effect research investigation.

Hypothesis#1 H1- The linkage between e-satisfaction and e-loyalty is strong or not?

Hypothesis#2 H2- The correlation between e-retailing services and the overall satisfaction of the consumers is strong or not?

Literature review:

Scope of Literature Review: Management and consumers perspective is the scope of this piece of research. Prime focus of literature review is to examine the electronic retailings effect on the total levels of consumers satisfaction under the lights of theories and models of marketing world. Moreover, the study aim at investigating the behaviour of the consumers who opt for electronic retailing services and how these services lead to improve the profitability of organisations in the recent times. Signified changes has been developed in the retailing channels operating currently as the scope of retailing services has been modified by the market players through the process of continuity. Chan (2001), Lee (2001), Dillon (2001) and Chang (2001) have described the link between sales and e-retailing services is fundamental by nature as services and products are sell at a prompt rate. We can also say that electronic retailing is the selling of good in the intangible manner.

Numerous empirical researches: McGoldrick, (2002) argues that with the changes in world, the change has come in the retailing systems as from just merchants; the retailers have moved forward to be retails brand managers. With the changes in tools and techniques, it is evident that the strong presence of retailer in the dynamics is no longer required as more than physical presence, the service orientation is important for the customers to be satisfied with. The physical dominance is vital aspect but retailers could exceed at more constant rate if they update themselves with the technological advancements. The study of McGoldrick (2002), also explains that customers heavily rely on the retailers who offer wide range of choices which means that tendency of a consumer to built trust on retailer vest in the availability of wide choice range. His explanation continued as he pointed out that new product will take more time to establish its mark in the market as it is not easy to win trust and confidence of consumers, therefore new approach is tried by the firms. One of the approach is to attain the satisfaction of consumers is the introduction of electronic retailing services. Products and services are reached to people in different ways and it is not just the product or services itself that satisfy the customers but techniques and methods also

add to satisfaction of consumers. For instance, if customers have their preferred product or service in more speedy and prompt manner, their level of satisfaction will be higher. Dave Chaffey (wnim.co.uk, 2010) writes on blog that main concern of electronic marketing is adequate implementation of digital technologies which assist the marketers in understanding the values, needs, conduct, dependability and profiles of customers. These understanding leads to development of electronic retailing services which ensure that customers satisfaction is gained through the provision of prompt services. Internet in particular has given birth to the new types of specialisation. These specialisations have made differentiated customers, sellers and channels through which the customers are approached. These specialisations have resulted in the increase in the customers retention as some of the websites on the internet facilitates the customers in a very satisfied way. Through these specialisations, not only customers are classified in certain categorise but sellers are also distinguished from one another. This classification leads to outclass the rivals in the market too (Palmer, 2004). We also have understood that internet is important source nowadays as it helps organisations to gain the competitive advantage by specialising in this type of selling.

Burt (1994) and Kacker (1985), the current action are planned due to change in tactics in the global market. Lamey (1996) states no guarantee is given in international retailing due to stress in ventures. To cope up with the stress of retailing three strategies
were suggested by Salmon and Tordjman (1989). Williams (1991) firmly states that the

competitive edge will be gained in the process of globalisation through renowned brand, different retailing concepts, retailing on large scale and tactics for marketing retail. Conceptual Models for E-retailing and consumers satisfaction:

Vida and Firhurst, (1998) argued that the outcomes are being affected by the decision making, essential part is the internal factors. Marketing strategies have huge impact on the life of product that is presented in market by the retailers. But McGoldrick (2002) the important factor is the behaviour of a consumer which has impact on the

life of product produced by retailers. So, it is significant for all types of retailers to understand the consumers preferences and behaviours.

Gist (1968, p.85-86), proposed that various types of characteristics like social, psychological and demographic characteristics are associated with the certain type of consumers behaviour. In other word, numerous types of characteristics play huge part in developing a retailing system in a particular region due to the shifts in consumers behaviour. To adjust according to the need of consumers, retailers have tried to adopt technologically advanced patterns to reach their customers. Now there are internet stores which are changed from traditional retailing stores. The changes in the ways of consumption patterns have driven the retailers to modify the tools and techniques of their selling products and services.

Ohmae (1998) explored that to gain edge in market and meet the need of customer in appropriate manner there is change in the provision of retailing services. Chenet and Johansen (1999), extended the idea by suggesting that more the consumers are obtaining goods in healthy manner, when they are self actualised. In the case eretailing, the consumers are more of self actualized when they have wide range of variety to select from with their ease and convenience. Meyers and Eagle (1982) in their presented model suggested that if methods of selling and advertising changes for firm, there is more probability that consumers will be satisfied with the advancement of technology which is designed for their convenience. Yankelovich (1964) examined that changes in the buying behaviour of consumers forces the organisations to bring changes in techniques as more chances of inspiration occurs. Mittal B. (2005) firmly believes that marketing segmentation helps in understanding the variations among e-consumers. Since, e-retailing is a distinct channel so its consumers are standing separately in the market, and the market is regarded as emarket. Rohan and Swaminathan (2004) include various elements such as nature, ease of access, information, channels to use etc in order to retain the attraction of consumers. The methods and channels to reach consumer help in retaining the customers loyalty through developing marketing strategies (Reichheld, 1996). So the philosophy is to attain the consumers satisfaction, the customers loyalty is key.

It is essential to explore the reasons behind the ways customers behave in order to maintain a fine relation and make strategies for marketing (Bendapudi and Berry, 1997, p31). The literature of marketing elaborates the correlation as unique concept, retention of customer orientation. The foundation for this concept relay on concept of behaviour of relational selling from a customer-salesperson relationship context (Beatty et al.1996; Crosby, Evans; and Cowles 1990) and market orientation is also being noticed that reveals that the channels should be modified by the firms to retain the consumers satisfaction and all the strategies designed should be to make customer feel special. A single head management stores are more in fashion these days, dealing in the selling of common commodities and specialising in it by running and managing electronic retail stores. The e-retailing mix model is used by various organisations to increase the sales and revenue. Lazer and Kelly (1961), defines electronic retail mix model as the total sum of services and goods offered to people by the e-retailers through online shopping sites. In the wide spectrum of concepts, this model is a technique blend by the electronic retailer so that services offered to customers are presented in quality way. This is used as a tool to satisfy the customers in a unique way. Culliton (1948) explained that mixer of the ingredients are phenomenon with which the marketing world is associating the persons job abilities in the 20th century. Consumers satisfaction is significant for business as it is satisfied by marketers through adopting marketing mix strategies. Neil Borden, (1964) conceived word Marketing Mix. To accomplish consumers satisfaction, retailers use marketing mix as a tool (Kolter, 1997). E. Jerome McCarthys (1960) developed 4ps, which are place; product, price and promotion are included in marketing mix. These Ps assist retailer in execution of success plan. Critical evaluation of the literature review: The above literature shows different aspects though the researches have cleared that business is expanding by means of technological advancement and internet has served a definite purpose in the advancement and expansion of business. Jerome McCarthy 4Ps are criticised by Lauterbourn for its flaws but still the marketing mix are essential for making rational decisions and e-retailers are using it to the best of proportionate. The strategic dimension mentioned by Salmon and Tordjan are considerate in worth when a firm is in the process of internationalization and same time loyal retailers spread business through subsidiaries. The assumption ignores the human rationality to

certain extent as it is evident that the personal satisfaction of person is vital in making logical decision about the selection so it is not just that simply identifying needs are enough but consumers personal will to opt for product is vital. Ohmaie argued that to gain competitive advantage in the market, e-retailing services are executed but we believe that competitive advantage is only for some time so this means that e-retailing is not for just to gain competitive edge but it is the strategy to maintain the organisation in the competition. More than gaining competitive edge, it is to survive in the market. Meyer and Eagle suggestion that e-retailing will satisfy the consumer is right but it is not only limited to the element of convenience as identified by the authors. There are other elements like time, offers from retailers, wide range of choices etc that can satisfy the consumers. Mithals view that segmentation assist the retailers in creating understanding about variations in the e-commerce but our research investigation has identified that variation if e-commerce are best studied by learning about the consumers behaviour rather than marketing segmentation.

Research Design and Methodology: Research Design The topic of this research comes under the co relational research. To explore the linkage between the electronic retailing services and the consumers satisfaction is the main purpose of this investigation. The views of professionals and experts will be gathered through semi structured interviews and the close ended survey questionnaire will be circulated in targeted population to generate the responses regarding the research question. The findings will be examined on qualitative and quantitative basis. The hypotheses testing will be opted to reach to certain conclusion. The major advantage of this type of research is that it can be completed in the available short time (Saunders et al, 2007). Accuracy in the results are the main reason behind the selection of close ended survey questionnaire. The in depth interviews are qualitative approach in which the experts views will be undertaken by the researchers as findings and compare the results with the previous empirical researches. The targeted sample set is the combination of twenty employees of chosen case study and twenty consumers visiting Tesco supermarkets. These findings will be quantified and the respondents are 18 to 50 years age. So, this is the combination of both qualitative and quantitative approach. The research philosophy is interpretive therefore qualitative approach will be beneficial to explore the qualitative aspect of the research by having a broad discussion but at the same time the quantification of the research findings are vital therefore quantitative approach is used so that data sorting and analysis is done in comprehensive manner. Methodology This part of the proposal discusses the methods and tools used by the researcher in the study at hand. The selection of partially semi structured and close ended survey questionnaire is same as used by researchers like Dorman (2008) and Bhalotra (2003) in their investigations. In addition to this Bhalotra (2003) and Dorman (2008) has also used the blend of qualitative and quantitative approach.

There are two models considered in this investigation, one is J. C William groups Retail EST model and the second one is for measuring the satisfaction of a consumer about the electronic retaining system is Kano model of customer satisfaction. Dorman (2008) has also discussed these models in his research studies. Sampling Method The sample size is essential for the research purpose as it serves multiple purposes (Saunders et al, 2007). This research is based on the consumers satisfaction related to e-retailing services; therefore the total population is the e-retailing service user and the providers of those services (retailers). Therefore researcher has considered that 5 managers from Tesco and Sainsburys and 150 customers are the sample size for the present research investigation. Since it include the retailers of huge chain like Tesco and Sainsburys therefore stratified sampling technique is used by the researcher. The supermarkets and stores are spread on geographic domain and on the basis of regions the most appropriate is to consider the stratified sampling technique. Data Collection The data gathered through the semi structured questionnaire will be circulated among the respondents aging between 18 to 60 and the techniques adopted for the collection of a data is convenience sampling technique in which the targeted population is approach on the basis of convenience. This will create high generalizability of result findings. Apart from this technique, the MONKEY SURVEY will be used to gather secondary data through online surveys and the findings will be compared with the findings of questionnaire circulated in the Tesco supermarkets of Kingston and Hounslow. Questionnaire
In this present research study, the questionnaire is used as an instrument to get the feedback from the respondents. This is in English language and it is self administered questionnaire which ensure that the high credibility of the results. Bartlett and Kang (2004) has also used self administered questionnaire in their researches. The questionnaire is divided into three

segments, first segment contain demographic description like age, gender, and education. The second part deals with the electronic retailing services and the third part consist of questions regarding overall satisfaction of a consumer. The questionnaire is partially semi structured and close ended one so that the finding can be analysed and coded in a definite manner. Semi structure interviews: The open ended semi structured interviews with the managers will be another tool used to gather information about the research topic. These open ended questions will help the researcher in exploring the view points of the participants in more detailed manner. The data will be collected through various sources by means of monkey survey, questionnaire, and interviews that will be self-administered to have valid feedback.

Z-test: Z-test is the statistical tool selected for this research to evaluate the findings and check validity of the responses. This test is widely acceptable for the small size of sample as it gives accurate results for small and medium size of enterprises. Though data will be represented through excel spreadsheet and z-test calculation will also be done through excel but the word processor will be used to use the final results of the test.

Time Table: The time table for the present investigation is designed below and this research will be carried out in the time period of approximately forty-five days excluding holidays. This investigation begins at the last week of the October with the secondary research. In last week of October Kingston library and British library will be visited to gather the data from various journals, books, articles, newspapers and online books. The cost of travelling, buying material and using internet is approximately 40 (internet 10, books and stationary 13, travelling pass 17). After the collection of secondary source which will serve as a ground for the literature review and primary research, the schedule will be designed to execute the primary research. In primary research, Sainsburys and Tesco supermarkets and stores will be visited in the area of Hounslow and Kingston. From the start of the November till the mid of the same month visits will be made, interviews from the managers will be conducted and questionnaire will be circulated among the targeted customers selected through sampling technique. The gathered data from the questionnaire and surveys will be processed through the z-test at the late mid of the November. On the basis of the gathered and processed data conclusions and future research scope will be discussed and by the third week of October, the final report will be prepared after proof reading. Gantt chart 21st October31st October Library research Interviews Questionnaires Data Findings Analysis Discussions Z-test Final Report 1st November-5th November 6th November-10th November 11th November18th November

Bibliography and References: Henderson, R. & Clark, K., (1990). Architectural Innovation: The

Reconfiguring of Existing Product technologies and the Failure of Established Firms, [Accessed 15 October, 2011] <http://dimetic.dime-eu.org/dimetic_files/HendersonClarkASQ1990.pdf> Christensen, C., (1997). The Innovators Dilemma: When New Technologies Cause Great Firms To fail. Boston, Harvard Business School Press. [Internet] [Accessed 16 October, 2011]

http://web.mit.edu/6.933/www/Fall2000/teradyne/clay.html Kotler, P., (1997), Marketing Management: Analysis, Planning,

Implementation and Control (9th Edition). New Jersey, Prentice, Vol. 29, issue 1, 35-50. [ Accessed 16 October, 2011] http://knol.google.com/k/marketingmanagement-13th-edition-philip-kotler-book-information-and-review Lauterborn, R. (1990), New marketing Litany: 4Ps passe, 4Cs take over, Advertising Age, [Accessed 16 September, 2011] Roham, A.J. and Swaminathan, V. (2004) A Typology of Online Shoppers based on shopping Motivation, Journal of Business Research 57: pp, 748-757. [Internet] [Accessed 16 October, 2011] Keller, K., & Aaker, D., 1992. The Effects of Sequential Introduction of Brand Extensions. [Internet] 15 September, 2011], Journal of Marketing Research, Vol. 29, issue 1, 35- 50 Grant, R., (1991), The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation, California Management Review, p.p. 114-135. [Internet] [Accessed 14 October, 2011]

Culliton, J.W. (1948), The Management of Marketing Costs, Harvard University Press, Boston, MA.

Keller, K., 1993. Conceptualizing, measuring and managing customer- brand equity. [Internet] 15 September, 2011, Journal of Marketing Research, 57 (January), 1-23

Lazer, W. and Kelly, E.J (1961), The retailing mix: planning and management Journal of Retailing Vol. 37, No. 1, p.p 34-41

Sirohi, N., & McLaughlin, W. Edward., (1998) A model of consumer perceptions and store loyalty intentions for a supermarket retailer [Internet] 15 October, 2011, Journal of Retailing Volume 74, Issue 2, Pages 223-245

Lee, K. Sheang., & Tan, Soo Jiuan., (2003) E-retailing versus physical retailing: A theoretical model and empirical test of consumer choice [Internet] 15 October, 2011, Journal of Business Research Volume 56, Issue 11, Pages 877-885

Walczuch, R., & Lundgren, Henriette., (2004) Psychological antecedents of institution-based consumer trust in e-retailing [Internet] 15 October, 2011, Information & Management Volume 42, Issue 1, Pages 159-177

Mittal B. (2005) Next stop, unravel: The tangled web of e-consumer research. Journal of Unravelling e-consumer research. [Internet] 15 October, 2011, Vo.5 (1), pp125-135