A STRATEGIC ANALYSIS OF U.

K E- RETAIL INDUSTRIES
A study of data over the period 2006-2010

Name: Adnan ul Haque

Submitted in fulfilment of the requirements of the taught Masters

Dissertation to the University of Wales, for the degree of Master in
Business Administration (MBA).

March 2011

1
 AUTHOR’S DECLARATION

I declare that the work in this dissertation was carried out in accordance with the

Regulations of the University. The work is original except where indicated by special

reference in the text and no part of the dissertation has been submitted for any other

degree. Any views expressed in the dissertation are those of the author and in no way

represent those of the University of Wales. The dissertation has not been presented to

any other University for examination either in the United Kingdom or overseas.

SIGNED: .............................................................

DATE: ..........................

2
 Abstract

In this research I had analyzed that in the E retailing, there was a problem of growing
fast pace increase in the electronic retail services does affect the overall satisfaction
of customer. We have no idea of relationship between the E retiling services and
customer satisfaction. To what extent does it affect the behavior of the customer who
shop through online and what are the environmental factors involved that certain
customer behave in that particular way.
Aim of this research is to find the relationship between the E retailing services and
the overall satisfaction of the consumers in the United Kingdom E retailing industry.
To conduct my research I have gone through journals about E retailing, I have done
case study analysis about the chosen companies, prepared a questionnaire and filled it
out by selecting randomly 15 customers. I have interviewed for 10 minutes sessions
with the management of the selected organization.

After analyzing the expected findings I have learnt that my hypothesis that there
exists a strong relationship between the E retailing services and the overall
satisfaction of the customers is incorrect.

This research leads to a conclusion that there are other various factors such as price
variations, trends, etc which are responsible for customer satisfaction and in future if
the sampling set is expanded more results can be generated with more accuracy.

3
Contents Page
no.
Chapter 1 : Introduction
1.1 Background to the research
1.2 Relevance of the topic for management study
1.3 Purpose of the research and aims
1.3 Structure of the Report

Chapter 2 : Literature Review

2.1 Theory
2.2 Results of various Empirical Research

Chapter 3 : Retail Industry of U.K.

Chapter 4 : Methodology
4.1 The styles of research.
4.2 The research problem and style chosen.
4.3 Hypothesis
4.4 Research Questions
4.5 Method of Analysis
4.6 Data Sources

Chapter 5 : Analysis and Findings

5.1 Critical appraisal of literature.
5.2 Graphical appreciation of data.
5.3 Findings from Analysis

Chapter 6 : Discussions
6.1 Interpretation of results of answer to the research question
6.2 Evaluation with existing theory and previous empirical research
Chapter 7 Conclusion
7.1 Conclusion
7.2 Limitations of Current Research
7.3 Recommendations for further work.

 References
 Appendix

4
Chapter 1: Introduction
This chapter is to explain the background, purpose and the area of the study to the
readers along with the delimitations. This section also briefly explains the role of
electronic commerce in retail segment of the United Kingdom and the behavior of the
consumers in online retail shopping.

1.1 Background
Undoubtedly, the Retailing sector is one of the major economic segments of the
country. According to the website www.prospects.ac.uk the retail sales has In 2009,
UK retail sales were over £285billion and during 2010, the industry created an extra
12,750 full-time jobs, it is 2.1% increase on the previous year. According to the
British Retail Consortium in 2010, there were over 286,000 retail units and more than
third of retail spending has been done through shops. This sector has been dominated
by the huge retailers of multinational businesses operating in small stores to big shops
in variety of markets all over the country.

The significance of Retailing can be view from social and economic aspects. It does
affect the every day population as most of the person goes out for shopping and most
of them are familiar with this word too. They some how daily come across the
retailers and thus the social network is formed. When these individual purchase
something the economic bondage is automatically formed. The boundaries of
traditional products have altered as the modernization has driven new ways and
modes. Retailers have modified their techniques from traditional to more advance
level in order o reach their target people and provide their variety at their
convenience.

5
1.2 Relevance for MBA:
In my Masters of Business Administration in Retail Management, I gave two papers
in consecutively two semesters covering the all details about the Retailing world
including the retailing system in the UK market. This develops the keen interested to
explore in this dimension further. The research is to understand that to which extent
does the consumers behavior is being affected by the modern methods of the
electronic retailing. In our subject ‘the contemporary issues of the retailing’ has given
the specific ideas to carry out my research on. This will also enhance my skills in
retailing as my master is mainly concern with the retail management. This research
has close relevance with the MBA as it will give cover the major areas of my one
year study. It will serve as a ground to step into practical world with the practical
knows how about the e-retailing world.

1.3 Purpose and Aim:

The purpose of this research is to critically evaluate the different aspects of the E-
Retail market of the UK and therefore my research is to enhance understanding about
the affects of the e-retailing on the behaviors of the consumers and identify the
reasons of the rapid growth in the e-retailing sector. the aim is to scrutinize the
internal and external environment that are reason to this rapid expansion and how
these various factors affect the over all process of e-retail.

1.4 Structure of the Report:

The structure of the Report is to explain that which chapter speaks about what. In the
second chapter I have in detailed explained the different theories and the literature
work already done in the e-retail. It thoroughly covers the results of various empirical
researches. The third chapter covers the details of the e-retailing system prevailing in
the UK market. It speaks about some of the leading players in e-retailing market
currently dominating this sector. The fourth chapter is about the research
methodology, covering the research design, problem, generating the hypothesis and

6
style chosen to conduct the research. This chapter I have discus the ethical issues
along with the sources from which data is collected. The fifth chapter contains the
critical appraisal of the literature, graphically the data is sorted and relations are
established through statistical tools. In the last and final chapter that is sixth chapter,
the discussion is done with the interpretation of the results. The results are evaluated
with the existing and previous empirical research.

7
Chapter 2: Literature Review
Introduction
This chapter mainly deals with the theories and various empirical researches
concerning the research questions. The following are the research quarries:
1. Describe, relate and explain the importance of an electronic retailing concerning
both blogs (national and international).
2. Highlight the market movements in E-retail sector.
3. Understand the relationship of the buyer-seller.
4. Techniques of E-retail sector
5. Getting to know the customer’s act of E-retail division

2.1 Theories:
Kumar has defined literature review, as ‘Reviewing literatures is a long and
continuous process. Starting before a specific problem and carry on until the report is
finished’.
Executing a literature review involves four steps. They are as follows
1. Examine for at hand literature in relation to your study;
2. Next, reassess the literature selected
3. Create an exploratory framework for the chosen literature;
4. Finally, develop a conceptual structure.

2.1.1 Ever- Growing significance of E-retail industry

This E-retail shopping has turned into much more serious investigation rather than
just casual flirtation with online shopping. It has grown from a cosset task for any
marketing sector to more of an opportunity that the entire organisation would need to
integrate into future plans.
There is a scope for the retailers to develop and change their existing retail channels
through continuous process. According to Chan H.(2001), Lee R.(2001), Dillon T.
(2001) and Chang E.(2001), E-retailing basically deals with the sales of goods and

8
services. In other words, this can be interpreted as sale of tangible and intangible
goods. This also includes E servicing.

2.1.2 Definition of E-Marketing

As stated by Dave Chaffey on the website www.wnim.co.uk, E-Marketing deals with
implementing digital technologies that helps in forming online channels like (web, e-
mail, database, digital TV) which contributes to marketing activities designed to
achieve fruitful acquisition and retain the customers through improving the
knowledge of customers in terms of their profiles, conduct, value and dependability,
after which it can be possible to deliver integrated communications and online
services according to the individual needs of the customers.

2.1.3 Online Retailing

Among many E-business models, online retailing is the most common and visible of
them all. Sellers or merchants can organise online storefronts to sell their goods to
both businesses and customers. Physical goods are shipped through logistics services
like UPS, USPS or Fed Ex while digital goods could be delivered over the internet.
This online selling or retailing sometimes proves to be very successful in terms of
time saving and flexibility in shopping. On the other hand, although a pre-Internet
presence carries brand equity, it does not guarantee online success. Business
organisations, which sell tangible goods online, could make any level of commitment
from pure play to dabbling.

Digital Products
One of the major advantage of selling digital products online is that it is less
expensive when compared to selling physical goods online. Though online shopping
had a slow start in the beginning, it gradually attracted more and more customers.
People have begun to purchase more quantity and content online in this fast paced
world. Online shopping has helped people to save time and energy to a large extent.

9
Tangible products
All physical goods that are sold online, like clothing are dispersed through straight
channels. On the contrary, many digital products are delivered through customary
channels. Here is an example; some of the foremost record labels distribute most of
their recordings and music through warehouse, offline retailers and trucks. Whereas,
the internet consumer may book online but the CD will reach via local logistic
providers or postal service.

2.1.4 E-Retailing
The internet has given rise to a new kind of specialization. It has not only helped In
specialising in just a specific product line but also helped in specialising in a
particular class of customers and sellers. Lastminute.com is a by product of this
specialisation, which allows customers to purchase last minute travel tickets, gift and
entertainment which can be matched against last minute sellers of the same item. This
is a fit example of the above scenario because we are not only seeing a specialisation
in the product line, but in a class of sellers as well. This helps us to understand that
this would have not been possible without the invention or use of internet. Also, apart
from these specialised stores, there are general e-stores which sells common products
under a single management.

Some of the examples of these kind of stores are Tesco and Boots. Simultaneously,
there is another sector of business on internet which is growing swiftly is the e-
broker. The working of this e-broker is not as same as the e-retailing but it still serves
the purpose. It does not involve selling the goods and products directly to the
customer but brings the customer in contact with a specific seller or supplier, which
may result in fulfilling the specific criteria of a specific customer.

10
E-broker can also be interpreted as a intermediary who collects an order from the
customer and passes it to the seller. This sector plays a vital role when it comes to
shopping online or over the electronic device like computer. Therefore, e-broking can
provide many services like shopping, taking orders from the customers and
fulfillment of the orders and also providing service to the customers. That is one of
the reasons why they are called to as electronic intermediaries. Some of the e-brokers
are ebay.co.uk, lastminute.com and priceline.com to name a few. On the other hand,
many manufacturers with popular brand name products have gone for direct selling
through internet. one of the best example here is ford. This company uses internet to
achieve straight path selling and also they use the dealer network to carryout
distribution and delivery. This approach allows mass customization to cater to
customer preferences. As a result of direct selling by the sellers and manufacturers
the cost to the end customer would reduce and also increases the profit to the
manufactures

2.2 Results of Various Empirical Researches

Conventional based business world presuppose that long- established businesses like
TESCO and Sainsbury’s might get affected to a greater deal by web-based retail. The
simple logic behind this is that these nationalized retail chains are hampered with a
pricey system of physical stores that are supplied through a costly complex
distribution network. Of late, Jeff Bezos, pioneer and CEO of Amazon.com, plainly
gave a statement that those retail based wholly on web would provide far more better
option and selection of goods than in the conventional retail stores. When we make a
closer study into the web-based sales, it indicates that the wide range of attributes that
a traditional or conventional tangible store offers its customers could in reality prove
to be advantageous to the online or electronic s shopping accomplishment. More so
physical retail is well thought-out to be original retail. Subsequently, the sister retail
or in other words, second generation retail took form from the coming on of
electronic retail.

11
It is not only important to provide a web site to the online customers but should make
sure it is an well-designed one which could provide the customers a greater deal of
effortlessness and speed to access, shop and buy than when compared to physical
store. Another advantage of web technology is that it allows companies to meet the
specific line of interest of customers by guiding the customers to that part of the site
which could personalize their shopping experience. This enables the companies to
create a tailored, consistent and more importantly efficient shopping experience. The
computerized and centralized business process of e-retail allows a extensive variety
of highly economical products which is an added advantage to the online customers.
One of the best examples of well-designed e-retail is Amazon.com that has been
receiving high credits and high points for their exceptional customer service on a
continuous basis. The Amazon.com is equipped or designed in such a way that it
allows the shoppers to speed through the process of selection and placing orders for
their specific product in haste while at the same time giving the customers the
required assurance, guarantee and personal after sales service at a reasonable lesser
cost. This is simply one of the many reasons why Amazon.com has been at the top of
the list when it comes to online shopping. It can also be labelled as the typical model
of online customer service for all online businesses on the electronic machine.

Considering the present lifestyle and shopping methods, we could also consider
another generation of retail that can blend into both online and traditional bricks-and
–mortar selling. This could prove to be working wonders if the hybrid business could
possibly mix both of the online retail and physical store retailing. John Quelch, dean
of the London Business School, states that amalgam of both online and physical retail
could work wonders for supermarkets, wholesale clubs that proffer a wide variety of
assortment of more likely low-end commodities. On the other hand, many other view
a broader role for hybrid retail in terms of building a personal relationship with the
customers who would go to the store to view and examine the product before
purchasing it. On the parallel the website could help in the fulfilling the required need
of the customers and more over it helps the store to organize in order to handle

12
multiple orders at a low cost which is again a plus point. All these above features of
hybrid or high-end retail gives us an idea of how these could help in satisfying the
needs of the customers while maintaining the high profile customer service.

2.2.1 The characteristics of E-Retailing:

There are many features of e-retailing of which some important are discussed below:
1. Electronic retailing provides customers with the provision of an online catalogue
which allows the customers to surf through a variety of goods. Therefore it is self-
motivated and linked with the process of placing order.

2. Another striking factor of e-retailing is the provision of search engine, which then
in the traditional retailing was not available for the customers. This search engine
plays a vital role in the shopping because it helps the customers to look up for various
goods and commodities at a quick time and at a less waste of energy.

3. Yet another advantage of e-retail that it provides online customers with an shipping
cart which allows shoppers to select goods at their own convenience. Also It enables
mechanical or automatic price update.

4. The feature of personalized promotions, store layouts and marketing is an

outstanding characteristic of e-retailing.

5. Also it allows customers to download the digital goods and application

immediately because it has possess the ability to deliver the goods directly to the
shopper online.

6. It also helps the customers to navigate through the sites with ease by providing an
online customer salesperson.

7. Customers could check for their order status before confirming the placement. This
is another useful feature of e-retailing.

13
8. The feature of “stickiness”, which means creating a customer community by
forums, is yet another feature of electronic retailing.

2.2.2 E-Retail Mix: (Adopted From Emerald Reports)

E-Retail Mix defined
The electronic retail mix can be defined as the sum total of goods and services that a
e-retailer could sell or offer to the general public(online shoppers),(Lazer and Kelly,
1961). For a wider understanding , it can be understood as the tools and techniques
that are blend together by the e-retailer to provide value service to customers. If we
date back to the history as far as the first half of the 20 th century, the job profile of a
marketing person was described as a “mixer of Ingredients” according to Culliton,
1948.

In the act of marketing mix, the marketers execute various strategies and plans
targeted at satisfying the needs of the customers and hence adding timeless value to
the customers. The phrase “Marketing Mix” was first termed or coined by Neil
Borden,1964 of Harvard Business School. The marketing mix is popularly known as
E. Jerome McCarthy’s (1960) “4ps”, namely, place, product, price and promotion.
While not being based on any theory, the parent 4ps, for instance, was strongly based
on the requirements of the manufactured goods department and at the same time,
need for the practitioners to simplify their decision making into a wide number of
peculiar and practicable headings(Palmer,2004). In the same manner, even the e-
retailers have the need to design their decision making in terms of their offers to
customers that are basically essential for success.

C1: Convenience for the customer

Offering convenience to the customers is the most essential part in any business.
Place, one out of the 4ps, is the technique of placing the products in the place where
the customers would like them to be. This can be in a sense understood as

14
“convenience for the customers”, thus getting to know the level of convenience of the
customers in buying the product. As for the physical or bricks retailer is concerned,
“place” is the most vital and critical decision that he has to take in terms of
“location”, that should suit the customers’ shopping preferences, short travel distance,
facilities for parking etc. this applicable even for the e-retailer because majority of
the customers would use multi-channel shopping, meaning, they could browse for
the product online and then buy the product in store and even vice-versa. Physical
location is equally important for the e-retailer because it is more likely that customer
would place their trust in the e-retailer who is at leasts based in that same
geographical location as that of the customer.

In spite of having the online shopping facility, many shoppers would prefer to buy
their goods directly from the store. So it is necessary for an e-retailer to have a
physical presence to carry out his business with much more efficiency and with ease.
And for an e-retailer, “Location” could mean practical location and effectiveness in
finding the web sites. Thus, this results in registration with search engines, location in
e-malls and associate links.

C2: Customer value and benefits

“Product”, which is another P of the 4ps should be considered as a customer value
and benefit instead of just being considered as a commodity that a company has to
sell. When we refer to “Customer values and benefits”, we mean the package of
service and contentment which is wanted by the customer from the seller. Taking the
present mindset of the customers and sellers into account, e-retailers and physical
sellers now consider “Products” to a much more extent than in the past. As a result
reflecting the closeness and bridging the gap between the customer and sellers along
with the increment In the benefits that customers would be looking forward in terms
of uniqueness, selection, choice so on and so forth. One of the main and indispensable
task to retail and e-retail is the selection of products on a wide range for sale which
would target a specific sect of the customers.

15
This selection is carried out from a diverse collection of data and information along
with the goods and services. One of the main standpoint for e-retailers is that they can
provide wide and deep range of products which is not that effective and practically
possible to physical retailers. It always does not mean that lowest price could result in
increased sales because many customers may consider factors like fashion, present
trends, styles. For instance; when customers buy products online, the chances of
asking for a help is much less than when compared to shopping in a store.

The chances are more that customers might ditch shopping online if the clear and
required information is not given in the website. Therefore, it is of high importance
that all online businesses and e-retailers make sure that they give clear description
about the products they display online in order to help the customers to have a clear
view about that particular product. In a nutshell, it means that the e-retailers or e-
business should be aware of describing about the product in the customer value and
benefits terms.

C3: cost to the customers

“Price” is something the business or companies decide to charge for their products to
their customers. But in this scenario, “cost to the customers” means what the
customers would be really paying for their product. Here is an example to understand
the above statement; a physical company could include their transportation charges
into the cost of the product. Even when we take online retailers or “clicks” e-retail,
there could be cost of carriage and along with it cost of taxes also. So these extra
charges will be added on to the quoted price or final market price of the product. In
addition to all this, at times customers may have to consider the cost of internet
access, which could be an added cost apart from the product cost. Even then, online
shoppers have an mindset that the prices of goods and products sold online should be
lower than the ones sold in the store.

16
This kind of perception or thinking could lead to issues and problems because not
always the price quoted online could be lower than in the stores and therefore when
customers buy goods directly from the store, they have a feeling that they are paying
more than the online shoppers do, which in reality may not always be true.

C4: Communication and customer service

Communication can be considered equal to “promotion”, the last “p” of the “4ps”.
Promotion guides to the ways in which businesses can sway the customers to buy the
products, on the contrary, communication is a two way action or process which may
also involve feedback from the customers to the sellers or suppliers. As a result of
ever increasing control of factors of retail mix by the sellers rather than the
manufacturers themselves, retailers tend to spend more time and money on
advertising the products , partially assisted by manufacturers by granting advertising
allowance. This has hence led the retailers get more closer to the customers than the
manufacturers and also have more access to the customer feedback.

Communication cannot be considered as mere advertising, but all possible ways

deployed by the retailer to communicate with their customers. some of the many
ways practiced by the sellers are marketing research surveys, loyalty schemes, public
relations, mails, e-mails etc. some of the online advertising methods include banner
ads and pop-ups which are mostly incentivized; means, getting paid for listings in
search engines. It is not that easy to identify the emotions of the customers and fulfill
their wants according to their feelings and

emotions through online selling. This can be considered as one of the main drawback
of the online shopping. This has been a ever growing challenge for the e-retailers to
cope with and serve the customers to the fullest of their choice. Whereas, when we
take “bricks” retail or physical store sellers, they are in a much better position to
know the customers’ emotional needs and wants and fulfill them because they can see

17
the customers face-to-face. Also physical store retailers can give the shoppers a
pleasing shopping experience by using the atmospheric behavior.
In order to create a pleasant online shopping for the online customers, e-retailers can
create a “web ambience” with the help of music and visuals like 3D displays and
soothing music. At times, when people are required to go through long downloads
like video clips, then such enhancements should be a compromise. Customer
relationships has been one of the main areas where doing well retailers like
TESCO(www.tesco.co.uk) have cashed In and gained a huge lead over other
competitors. In the above section there is an mention of emotional selling, i.e; selling
products tot the customers according to their emotional needs. In relevance to this, the
salespersons selling face-to-face in the physical retail store could use verbal and non-
verbal communication to sell the product and more importantly, it helps in building
rapport and confidence with the customers, therefore enhancing the emotional value
of the goods.

Of late, there has been a multiple of suggestions for constructing or structuring a

“retail mix” that is more or less equal to 4ps and 4cs of the marketing mix and
blending of other factors and aspects that can help a retailer to succeed. To examine
this McGoldrick (2002) used a 9 element mix. He also integrated proportions like
“brand image”, “logistics” and “information” in addition to the elements that had
been added into the 4ps frame work in the above lines. In spite of all that, majority of
the retail mix are not that convincing or likeable as the 4ps or 4cs of the marketing
mix. As a result of the inefficiency, there is a proposal for a more simplified form of
marketing mix, “7cs” for the e-retail mix combined with customer care and service,
customer outlets or franchise and computing and category management issues. As a
result of inclusion of these 3Cs, it enables the e-retailers to offer important headings
for the bundle of benefits that they provide to add value.

When we conduct a close and detailed study into our 7Cs, to some extent there is a
similarity or in other words, there is parallel comparison with the 7Cs of

18
Kearney(2000) for conceiving a exceptional customer electronic shopping
experience. Kearney added “content” and customization to convenience,
communication and customer care, which has been included under our “customer
value and benefits”, connectivity”(in our “convenience”) and “community (which is
included in our “customer care and service”).

C5: Computing and category management issues

With the production or proliferation of goods and services, have come growing
consumer choices. As a result, if any e-retailer or retailer has to be successful in the
business, they have to produce and supply the goods and services that consumers are
in need of, at the right time and at the right place. This is the secret behind every
successful retailer or e-retailer for that matter. As per the data, superstores carry
20000 or more labelled products and department stores from 100000 which may
shoot up to even a million. In order to control this mammoth level of complexity
effectively, there is a need for effective computer and logistics systems. Noticeably,
there has been a rapid change in the retail logistics over recent decades. Initially, the
retailers took over more power and control over their supply chains leading to a fall in
the involvement of the whole sellers which in turn gives way to contract logistics
under the control of retailers. Subsequently, the link between suppliers and retailers
has become more efficient through the provision of supply chains, many based on
electronic data interchange(EDI).

Fundamentally, EDI is based on individually owned third party computer networks.

This method of EDI has had an great impact on the retailers because it has helped in
reducing the stock levels in the warehouse by enabling quick response and efficient
customer response (QR and ECR). But the negative side of this EDI networks is that
it is expensive to install these systems. Installation of these systems could add up to
couple of hundreds and thousands of pounds. As a result of the expensive nature of
EDI systems, there is a tendency for companies to adopt internet, specially, small
businesses. Big retailers like TESCO are giving the access to real time electronic

19
point of sale to their suppliers to know the present stock level. This helps the retail
suppliers to change the supply of goods according to the changing demands of the
customers. One of the main key factors in supplying and satisfying the needs of the
customers has been the co-operation between the suppliers and the retailers while
contracting the stock and cost. this act of co-operation between the suppliers and
retailers on a large scale is known as “category management”,(CM).

Big retailers like TESCO have been largely succeeded because of the high efficient
use of the computer centred logistics systems. Sarcastically, the reason for the failure
in a number of pure play dotcoms that were concentrating on advertising and
promotion was the deficiencies in the area of computer-controlled logistics systems.
There is an exception to this case, Amazon.com because this website was structured
on efficient logistics systems supported by outstanding customer care and services. In
countries like the Uk, Amazon is using its logistics proficiency to execute distribution
services for physical retailers like WHSmith(www.whsmith.co.uk) and Toys R
Us(www.toysrus.co.uk). A best example of telemarketing and direct selling since the
late 1980s has been Dell (www.Dell.co.uk). They set an example by demonstrating
that a composite product like computer can be sold to the customer without having a
face-to-face contact. Ever since then, this company has been worldwide market leader
for computer hardware and is one of the first e-retailers.

C6: Customer franchise

In the present competitive and business world many or almost all retailers try to
create a positive profile and image in the market world. In the quest to achieve this,
many “successful” retailers have invested a great deal in customer care and service
and quality in order to achieve the highest standard in the commercial market. The
term “customer franchise” refers to the accumulated value of image, trust and
branding to the retailer.

20
Retailers have “progressed from being just merchants to retail brand managers”
(McGoldrick,2002, deriving support from Kumar, 1997). As result, many physical
retailers have high quality brands with apparent personalities supported by long term
endorsement. One of the main factors that hinder the expansion has been the lack of
trust. as earlier stated by McGoldrick (2002), with the availability of greater choice,
customers tend to choose the products that they rely on and trust. this simply means
that the new products will have to work their way to gain the trust of the people.

C7: Customer care and service

Often times e-retailers may offers the goods and services that is similar to that of their
competitors. As per McGoldrick (2002),tradionally retailing has been grouped as a
“service industry” but, the preoccupation with service quality and services offered is
of more recent origin. When we look from a wider perspective, most of the activities
of the retailers deliver a kind of service to the customers. On the whole, all these
activities performed by the retailers play a vital role in providing customer
satisfaction.

A good service for a e-retailer means, providing exceptional, fast and reliable
supplies to the shopper at the right time, in addition to this, access to telephone help
and more importantly, return and refund facilities. Looking back at the early e-
retailers, these were the aspects where they were poor at. As a result online customers
had a very bad experience. As far as the “bricks” retailers are concerned, store
personnel play a vital role in creating retail image and benefaction intentions. But to
an extent the e-retailer is at loss but the happy news is that elements like bulletin
board, chat rooms and click-through telephone help can change the e-shopping
experience more lively and interactive. The bottom line though is that any successful
e-retailer makes the online shopping more enjoyable, convenient and at the same time
less worrying for the customers.

21
Customers would value and expect good and personal customer service, especially,
when purchasing costly and high priced commodities like cars etc. in order to provide
customers with this kind of personal customer service, Virgin(www.virgin.co.uk)
provides with a pop-up window with a phone number to contact a sales executive.
Particularly, the extra 3Cs of the e-retail mix could be decisive for the retailers. Of
late, many e-retailers, pure play dotcoms in particular were lacking far behind in the
areas of supply chain management, computing, category management that resulted in
affecting the trust, image and customer care. On the other hand, stronger brands along
with excellent customer outlets are possibly having higher sales and potentially huge
profits like Tesco and Next.

Those with a strong and established computer and supply chain systems are making a
difference in the e-retailing. Some of the exceptional companies in this category are
Amazon and Dell. Both these establishments are known for effective and efficient
systems, quality service and also communication and one-to-one interaction.

2.2.3 Process of Internationalization

As per the information from Corporate Intelligence 1991, there has been around 654
instances of market entry in around 16 European countries during 1980s in
comparison to the 182 entries in the preceding decade. In spite of this entry and
invasions into new international markets, many businesses packet their big size of
turnovers and profits from local or domestic markets. Marks and Spencer’s, One of
the huge leading retailer of Britain, derive their 14% of yield from international
markets. In the recent years, internationalization has concentrated its attention
towards either improving newly established markets or invading home based markets.
These two distinct features of internationalization are understandably a worry, in
relation to their demands upon the administration of time and their real effects on the
balance sheets.

22
According to Burt 1994 and Kacker 1985, the gush of plans, ideas and acquaintance
has resulted in international influences to trading formats well before the recent rise
of activity. Lamey 1996 states that “Global retailing demands huge investment and
gives no guarantee in return”.The process of retail internationalization has gained
haste in recent times.
2.2.4 International development positions
As a result of internationalization, trade (retailing) has given birth to a varied styles of
procedure, ranging when compared to MNCs. Treadgold (1991) explains that
globally positioned markets like Benetton differ their overall format slightly across
their national precincts, in return attaining the huge economies of scale but
concentrating less on local receptiveness. On the contrary, multinationals try to
achieve a range of formats globally, mostly gaining less benefits from amalgamation.
In between these two a middle itinerary may be defined as ‘transnational’ retailing.
As per this type of retailing is concerned, company looks to achieve international
competence while

at the same time giving heed to national issues, needs and opportunities. Few of the
recent past developments by Marks & Spencer’s could be described as transnational.
This is because of the realization by M & S that even the most commanding and
successful retail formats that is within the domestic markets may require different
adaptations in order to fit within the global market.

2.2.5 Trends in retail internationalization

There are some common or convergent trends within the European retailing
regardless of the mammoth multiplicity. These common trends are more remarkably
towards greater division or segmentation, competition and absorption. In spite of this
common trends in some sectors, there Is always room for differences which prevails
in the levels of expansion within a variety if countries ranging from conventional
retailing of Greece and Portugal to the sophisticated retailing of Germany and United

23
Kingdom. Andre Trodjman 1989 states that in the time period of last three decades,
Europe has undergone tremendous makeover. As a result of this change, each country
in the Europe has tailored the character and clause of its business-related product
range in order to meet with the changing market environment. More so, traditional
retailing is being replaced by a more organized and rigorous distribution that
contributes a great deal to European economic goings-on. On the whole, similar
trends in environmental advancement has given rise to convergent swings towards
structural changes in European business markets.

2.2.6 Strategic Dimension

There are three basic strategies acknowledged by Salmon and Tordjman (1989)
approach along with a inactive partner investment strategy. The main focus of this
paper Is on global approach to retail internationalization explicitly ‘the faithful
imitation, of a concept abroad… as to their centric market was homogenous, in so
doing ignoring all local or regional differences and on the other hand, substitute
multinational approach whereby retailers count their subsidiaries to be a collection of
geologically spread retail business, for each of which they adopt the standard
formulae to suit the local conditions.

Williams 1991 firmly states that significance of discrepancy in the firm advantage as
a part in the internationalization process and draws out 4 sources, namely, retail
marketing skills and professionalism, retailing on a huge scale, strong band and
distinct retail concept.
As far as (Vida and Firhurst, 1998) are concerned, it is easy to believe in the
inhibiting factors which basically takes root from the inner atmosphere of the firm
will have a effect on the decision to invade new countries. During the succeeding
cycles of the process, these decisions may turn to a operation of external environment
and cautions planning and execution.

24
2.2.7 Consumer Behaviour
According to (McGoldrick 2002), it is very important that all retailers have to
comprehend the fundamental parameters that is around the consumers structures and
behaviours in the economic market they operate in. the changes in the trends that can
be spotted out in all markets have had their impact on the consumers or customers
and this impact differs from country to country. A key

demographic and socio-economic indicators fro the official national statistics can
illustrate simple variations in the trends that prevails in the consumer markets.
As per Gist 1968, (p.85-86), consumer behaviour is largely constituted by production
relations, purchasing power of consumers, demographic, social and psychological
features and also the consumption prototype of the consumers take different scope
according to various market conditions. Sometimes, retailing systems might get
influenced by the different characteristics of the consumers in various societies. To
support and understand this here is the example; because of downfall in the traditional
store, along with its inefficiency of adaptation to the other environmental changes, it
is highly necessary to notice the transformation in consumption patterns also. Some
of the changes in consumer behavior may be benefitting and encouraging the retailers
while it could be discouraging for some other retailers as stated in Advances in
Consumer Research; 1987 Vol.14 Issue 1, p439. A general increase in the income
may be pleasing but its uneven distribution has conflicting results on different
combinations of consumer characteristics. As a end result, various combinations of
consumer characteristics may have all together a different impacts under various
appropriate and historical conditions.

As Ohmae (1998) observes; strategy is not all about overcoming the competition, its
all about serving customers’ real needs. In order to further support his statement, he
cites the opinion of the great Sun Tzu (500 BC) as cited by Ohmae 1998: ‘The
smartest strategy in war is one that allows you t chieve your objective, without having
to fight’ the vastly visible battles relating prices, promotions, advertising etc. on the

25
other hand, the bigger part, often being invisible, is the search to find the ways to
satisfy consumers’ needs in a more effective way. Chenet and Johansen 1999,
expands the concept of ‘self actualized customer’ in the following manner, quote; We
do not buy products and services anymore-more and more what we buy are concepts
and experiences that build up our self-identity and uniqueness. Unquote, concepts and
experiences must provide different requirements.

According to the observation by Meyers and Eagle,1982; It is very evident that

consumers would not make choices by observing how good different substitutes are
with regards to a multi feature utility works. Instead, the selections repeatedly appear
to be made hierarchically; means, the elements use to distinguish amidst alternatives
change as different candidates are eradicated. Yankelovich 1964 earlier had sensed
the need for dissection or segmentation bases that could possibly relate more to the
defiance and opinions to demographic natures. He further states that markets should
be examined or tested for valuable and vital differences in buyer attitudes,
inspirations, usage styles, appealing likings and amount of vulnerability.

Mittal B. 2005 gives his view that segmentation includes getting to know the
differences among e-consumers. Since e-retail is a new channel of shopping al
together, it is vital to understand and categorize consumer segments or sub-divisions
that diverge their insights and patronage of the e-market place. Rohm and
Swaminathan 2004 engaged 4 intentions of shoppers or consumers, be it online or
offline, they are; total ease, nature of physical store, use of information in planning
and execution of shopping and finally, assortment seeking.

This study or observation also brought four customer segments to the view; well-
adjusted buyers, convenience shoppers, store-based shoppers and variety seekers.
Convenience shoppers are predominantly known as heavy users of online shopping.
Secondly, store-based shoppers are those who would be looking to possess the
product immediately and hence would love the social environment that prevails in the

26
physical store. It is also very obvious that these kind of shoppers would score less in
online shopping. There is another set of customers, variety seekers. They are kind of
shoppers would like to try new brands, new products, new stores and also would shop
online to an extend. Yet another group of shoppers are the balanced shoppers or
buyers. They score almost equally on all four aspects and are again substantial online
shoppers.

Customer Satisfaction
Reichheld 1996 says satisfaction is frequently recommended as an result of relational
strategies and a pre-requisite for trustworthiness and retention. However the view that
is, ‘customer satisfaction is the key to securing customer loyalty’ is distant from a
fully healthy philosophy. According to Buttle 1997, satisfaction or gratification does
not necessarily end in retention and it is correspondingly apparent that discontent or
dissatisfaction does not result in defection. It is generally imagined that consumers
would make some primary effort to shop around where consumer purchases would
create high emotion. When this passion or emotion is less, the chances of
investigating other sources of supply is considered to be very low.

Therefore, be it any model, there should be scope to differentiate between true vendor
or seller loyalty and simple recurrence purchase behaviour. Miserably, these two are
regularly missing from the mainstream of consumer studies. Intrinsic satisfaction
could be the base for one of a kind of loyalty, predominantly, where the consumer
exerts some of his/her efforts in forming the best deal, but on the contrary, other
situational drives like time and opportunity costs may end up in default loyalty.
Therefore, satisfaction plays little or no part at all when there is no need for this
effort.

Buyer-Seller Relationship

27
When we try to use a contingent approach to relationship marketing, basically it is
necessary to understand when and why customers are most approachable to
relationship maintenance according to Bendapudi and Berry (1997, p31). As far as
relationship marketing literature is concerned, “customer retention orientation” is a
new concept altogether. It basically builds on related concepts like “relational selling
behaviour” from a customer-salesperson relationship context( Beatty et al.1996;
Crosby, Evans; and Cowles 1990) and also the perception of “market orientation”,
meaning, strategic events aimed at delivering grander value of customer orientation.
First of all, the idea of customer retention orientation passes beyond the restricted
scope of salespersons’ efforts that is pressed upon in the studies probing relational
selling behaviour. Secondly, the extent of a consumer’s relationship with the store is
purely assessed by relationship quality, whereas, the factors that determine or decide
the quality of this maintained relationship is monitored by customer retention
orientation. The next point is that the perspective of the consumer is at the basis of
customer retention orientation. Another concept to be discussed is Customer
Relationship Management(CRM). The primary aim of CRM is to deliver high
customer equity. It is natural that the more reliable the customers, the higher the
customer equity.

There are three factors or drivers of customer equity; they are; value equity, brand
equity and relationship equity. Further down it can be said that the sub-dividers of
value equity are quality price and convenience. In order to spot out the programs to
improve the value equity, it is the duty of all industries to outline the actual factors
underlying each sub-driver. One of the main feature of value equity Is that is drives
the customer equity in the economic or business market. On the other hand, brand
equity is the invisible and customer’s subjective assessment of the brand, is this
assessment is exceedingly and beyond its empirically seeming value. And the factor
which drives the brand equity are the customer brand awareness, customer
assertiveness toward the brand and other communication tools to mark these sub

28
dividers. Among all drivers, brand equity is the most important driver of customer
equity because it has more expressive impact capped by less product differentiation.

Lastly, relationship equity is the inclination of customer to hold on to the particular or

specific brand, again this exceeds the objective and subjective assessments of its
value. Loyalty programs, special acknowledgement and management programs,
community building programs and knowledge based programs are some of the sub
drivers of relationship equity. Relationship equity seems to a very important and
crucial factor in the case of a customer who would like to continue with the seller or
supplier out of habit and more importantly where personal relationship is taken into
count.

2.2.8 Competitive Analysis

One of the main and likely aim or goal for strategic movement on the business level
is to achieve a viable edge that is virtual to the competitors. There are four keystone
of competitive advantage according to Peteraf (1993). If the competitive advantage
has to prevail in the industry or economic market, basically it has to be shaped by (1)
heterogeneity, as a result, Recardian rents may be pocketed. (2) Ex post limits to
competition to control the rent to be bearable. Also it is very important that industry
and market should be categorized by (3) flawed mobility to sustain the rents within
the firm and finally (4) ex ante limits to competition in order to make sure that rents
are not counterpoised by costs and expenses.In order to procure the above average
rents and force a competitive advantage, the advantage itself needs to be justifiable or
sustainable. This simple means that it needs to be able to hold it uniquely for a period
of time.

Notably, it is possible to accomplish sustainability in the short period but it is not

possible to contain the advantages in the long run. in simple terms, they evaporate in
the process. This process of evaporation takes place because of either due to (1) shifts
in the pattern that restructures what establishes a industry wide advantage (2)

29
contenders or competitors attaining and overtaking the advantage due to a speculation
of lack of long term protection of the advantage. As a result of these two factors,
competitive advantage either converts into out dated or a need to compete factor.
Grant (1991) states that sustainability could get affected by 4 factors, namely,
durability, transparency, transferability and Replicability. In order to influence the
sustainability of an advantage, companies should leverage or counter these factors,
which ever possible.

2.2.9 Innovation
E-retailing could be viewed as an revolution in retailing that is fabricated around a hi-
tech innovation, that is internet. Unique distinction is between sustaining and
disruptive innovations according to (Christensen,1997). The effect of innovation on
customer benefits could serve as a basis for this kind of division. A sustaining
technology operates in such a way that it escalates the customer benefits by taming
the performance of the product qualities which are currently being treasured by
present customers.

On the contrary, a disruptive technology manipulates the attributes of a product that

are not being valued presently by the existing customers and simultaneously
decreases the attributes of a product which are valued traditionally in the small run.
therefore, on the whole, it is understandable that a new group of customers would get
benefitted by this disruptive technology.There is yet another dissimilarity to be made
between incremental and radical innovations ( Henderson and Clark, 1990).

This division or distinction deals with changes in the production of the product. This
means that there could be a change in the core mechanisms of the products or in the
construction of the product. a component can be defined as a fragment of the product
which performs a specific and well-defined task. the specific way in which the
components of a system are referred to as architecture. A radical innovation or
invention features a new dominant design of principal fragments embodying new core

30
concepts that are reconfigured in new architectural configuration.The incremental
innovation alters, refines and prolongs a current design by improvising the distinct
apparatuses or components. On the other hand, architectural innovation tries to
redesign a system or machine to chain existing components in different ways. During
this changeover, the components might be changed or improved but the core or basic
design impression would remain the same.

However, the focus of both the sustaining/disruptive and incremental/radical

differentiation of innovation is towards the product development or improvement.
This poses a question to the applicability of e-retailing. But there is a way in which
they can be generalized in order to be applied to e-retailing. Eventhough e-retailing
and retailing are not a physical product, they could be considered as services to the
consumers. During the process of innovation the performance of service retailing
characteristics like price, convenience and haste delivery could alter. It is also
believed that this service can also consist of constituents representing core concepts
combined in architectural structures. To sum it up, it is understandable that the
thoughts of sustaining/disruptive and incremental/radical could be applied to e-retail
to figure out to what range the factors of competitive advantage and key success
factors vary from conventional retail.
Strategic Perspective
There is no one individual economic theory on acquiring competitive advantage
pretty much like the indefinable “Unified Theory of Everything” in physics. In its
place, there are numerous strategic groups or perspectives that deals the question
from different angles. The danger in examining or studying the competitive
advantage from a single standpoint is that there are chances of missing out on the
phases of practical data that could have a different meaning altogether from a
changed strategic side. Therefore, in order to achieve an in-depth picture of
competitive advantage, we present six strategic ideas or perspectives along with their
methodology towards the creation of competitive advantage.

31
Brand Perspective
According to Kotler(1997;p443), a brand is just not a logo or a name but its much
more than that. He defines a brand as “ a name, term, sign symbol or design or
combination of all of them which is intended to identify goods and services of one
seller or group of sellers and to differentiate them from those of competitors.” Brand
equity and brand extension are the two aspects of brand based competitive advantage.
The word brand equity introduces the customers’ perception of the brand to the brand
concept. Keller 1993 defines customer based brand equity as “the effect on a
customer of previous knowledge about a brand when confronted with a new
marketing effort for that brand” Sustained positive brand equity could improve or
increase margins, reduce price elasticity or price flexibility, increase consumer
pursuit activity and intensify the effect of market communication. From a company’s
point of view, this can be considered as a plus point for increasing the possibility of
brand choice thereby creating greater consumer loyalty and decreasing susceptibility
to opponent’s marketing.

Brand equity can be considered to have two dimensions as a result of the associative
nature of memory. They are; (1) brand awareness (2) brand image. Brand awareness
or brand responsiveness can be termed as the ability or the potential to identify a
brand on the basis of strength of acknowledgment and brand recollection.

The decision of a brand becoming a part of the considered set in a choice is controlled
by brand awareness. There are also chances that it could affect the selection of a
brand from a well thought-out set. This occurs mostly where there is less involvement
of choices wherein fluency and establishment can be adequate base for a definite
decision. Not to forget the fact that brand awareness has the probability to affect the
structure and strong point of new associations.Brand image can be referred to as a
collection of associations that the brand offers for the consumers or customers. These
associations can be abstracted on different levels like benefits, values and culture.

32
And these associations on each level could be affected by their favourability,
strengths and distinctiveness.

The strength of association is totally depended on how the association was shaped or
formed, in other words, encoded and secondly, how it is managed and maintained, in
other words, stored. The significance of the association to the customers decides the
favourability. This significance or importance can sometimes be situational. In other
words, definite associations are esteemed more in certain contexts or situations.
finally, uniqueness or individuality relates to the placing of the brand in relation to the
competitors. The force behind compelling the customer to choose it is the competitive
advantage or unique selling point. Cohesiveness is one of the important characteristic
of image. It is more easier for the competitors marketing to operate the diffuse brand.
It makes life harder to recall old associations or even forming new associations
becomes weak and less favourable.

Brand Extension
Brand extension Is the process of informing the customers about a ne product or
service in a more effective and efficient manner using the fundamental products or
services( Keller, 1993). The reason or the logic behind this kind of brand extension is
that when lengthening an current or existing brand, it gives room for the new product
to follow the existing brand equity, as a result, attaining awareness and conditional
associations.

There are a number of ways through which a customer would evaluate or examine.
Firstly, customer would evaluate on the basis of the kind of information that sparks in
the mind, secondly, relevance, that is, the practical application of the thought
information to the prevailing choices and finally on the basis of how good or positive
it is in relation to the extension as well as competitors’ brands. The end result of a
brand extension is not only affecting the new product or service but also forms a

33
feedback to the fundamental product or service. This affect could be positive given
the scenario that there is an total likeness between the extension and the core product
or service and also similarity among all brand extensions. It is also possible that a
brand could be thinned through brand extension. Dissimilar products or services
could diminish strength of association and also it can create a undesirable criticism
from existing brand owners whose brand has changed associative meaning.

In many respects, e-retail could be similar or related to mail orders as it work for the
same customers with the same needs as in retail. Yet, it has the potential or character
to appeal to new customers. Some of the advantages of e-retail are convenience,
reliability, accessibility and updated information. Even then, these advantages are not
major hop forward. Subsequently, the ability to check the goods and products
physically is not possible and thus judging the quality is not possible. On the whole,
retailing is a advanced market with very good grounded players in almost all
segments. It could take several years to construct a brand and the chain of contacts in
order to compete in retail markets.

This might turnout to be a strategic advantage for primary starters, particularly, brand
is supposed to be the largest value-driver in e-retail. It is very much a necessity that
e-retail should understand the new business concept or logic in the whole value chain.
This consists of competencies, organizational roles and units and also an ever
increasing need for communication between entities. The intimacy of brand linked to
the biggest seeming challenge in selling tangible goods online or over the internet by
using pictures. In this regard, branding also comprises of the potential to place the
products in a framework and sell on the basis of fashioned feelings. As a result, when
this is combined with huge technical costs, it makes the setting up of e-retail business
expensive. It is understandable that even from a local outlook e-retail gives the
possibility of reaching more customers than would be practical. One of the main
problems of e-retailing is the negotiation of quality. Thus this draws the focus on

34
brand and conception of understanding. Also another issue is the creation of a
constant image.

Chapter 3: Retail Industry

Retail industries buys good in sufficient quantity from the producer or manufacturers,
or the wholesalers and then in minor quantities sell it to the customers who demands
for it.
UK has one of the biggest and finest Retail industry that generates high profits every
year. Most of them are at the maturity stage or at growth stage. This Retail industry
has created the job opportunities to thousands of people. Some of the most prominent
retail industries are discussed in this chapter. These Retail industries are existing from
more then centuries or they are the subsidiaries of the leading players in retail world.
Retails consists of the sale of the merchandise from one fix location that may be a
store, kiosk or stall. It includes subordinated services such as delivery purchasers etc.

ASDA
ASDA stores limited are a British chain which is the subsidiary of the American
Retail Giant “Wal-Mart”. The head office for ASDA is situated in Leeds. It is very
popular with the e retailing in their target audience. The large number of varieties is
available at ASDA for its valued customers. It has different sections available from
household items such as groceries, magazines to tools and clothing for all types of
customers. The self-service and the staff are also available in ASDA to help
customers in each aspect. It has its online shopping system for the ease of customers.
It has signed up to the Ethical Training Initiative which does mean that respect
towards their employees.

35
Tesco
Tesco is another retail industry that has its own strong clientage and potential
customers. It was founded in 1919 in East London. Presently it is located in 4811
locations. Their products are mainly groceries, consumer goods, financial services
and telecoms. It is a global and general merchandising retailer in the United
Kingdom. It is the fourth largest retailers in world today and generates the second
highest profits after Wal-Mart. The Revenue last year was over six billion. It has
472000 employees working in different segments until last year. According
to Citigroup retail analyst David McCarthy, "[Tesco has] pulled off a trick that I'm
not aware of any other retailer achieving. That is to appeal to all segments of the
market". Tesco slogan is ‘Every little help’ and Tesco has its own brand products too
in the market that circulates all over the UK markets.

Sainsbury’s
Sainsbury’s currently operates 537 hypermarkets and supermarkets along with
537convenience stores. It also operates the Sainsbury’s Bank. Its online servies are
worthwhile as it is third largest supermarket chain in the UK since its recovery in last
few years. It also highly emphasizes on the quality products and has the quality online
services. It has subsidiaries that are as follows Sainsbury’s Bank, Sainsbury’s
supermarket Ltd and Sainsbury’s convenience store Ltd.

Morrison
Wm Morrison Supermarket plc is the fourth largest chain in the United Kingdom and
its head quarter is in Bradford (Yorkshire). It is located in 403 different places all
onver the United Kingdom. The key products that Morrison deals in are groceries,
home appliances and consumer goods. It has 124000 employees working in different
shifts. The quality drink award 2010 has been awarded to the Morrison’s. It has the
privilege to be finalist for few consecutive years. It has been awarded with Multiple
Retailer of the year that is the grocer own label excellence award. In 2008 and 2009

36
Morrison achieved Retailer of the Year award, which is its biggest accomplishment in
retail world.

PRIMARK
Primark is a clothing retailer, operating around in Europe but its main head quarter is
in Ireland. It is a chain subsidiary of Associated British foods plc (ABF). It is
operating in the UK at 250 spots out of total 251 locations. The biggest unit is
situated in Manchester. Their main products are menswear, womenswear,
childrenswear, footwear, accessories, lingerie and homeware. It was approximately 36000
employees working in different units. It has its own brands such as atmosphere for womenswear
and footwear, active for menswear, Backswing for men and women sports, cedarwood state for
casual menswear etc. It is well known for selling cloths at the budget end of the market. The
company’s success is based on the sourcing of the supply cheaply, making cloths with simple
designs and fabrics.

Iceland

Iceland is a supermarket chain operating in the United Kingdom, the Republic of

Ireland and Iceland. Iceland's primary product lines include frozen foods, such as
frozen prepared meals and frozen vegetables. The company approximately has a 1.8%
share of the UK food market. According to the 2009 survey it is located in 682 places
which show its strong retailing chain in the UK market. The head quarter of the
Iceland is in Deeside, Wales in United Kingdom.

Iceland was renamed the Big Food Group in Feb 2002, and attempted a refocus on
the convenience sector with a bid for Londis Grimsey remained until the takeover and
demerger of the Big Food Group by a consortium led by the Icelandic company,
Buagur Group in February 2005. Walker returned to his previous role at Iceland.

37
Under Walker's control Iceland's website contains pages of polemic against Grimsey's
period in control. The company has recently made large scale changes to the kinds of
promotions it offers on products. In the past "Buy One Get One Free" and Meal Deals
(a selection of products for a set price) were common in stores, although these have
now been reduced and replaced with products offering bigger packs at the original
prices. The pricing system has also been changed with many products having their
prices rounded up or down to the nearest multiple of 25p (i.e. £1.29 becomes £1.25),
this is known as Clear Cut Prices and aims to simplify the pricing system.

2006 also saw a huge surge in 'Home Delivery' promotion. This service is now one of
the main focuses of the company. When a customer spends £25 or more on their
shopping they have the option of free same-day home delivery.

Poundland

Poundland is a British-based variety store chain which sells every item in its stores
for £1. Established in April 1990 by Dave Dodd and Stephen Smith, Poundland stock
a variety of around 3,000 home and kitchen-ware, gifts, healthcare and other
products, across 16 categories many of which are brand name and clearance products.
Like many of its rivals, Poundland operates a constantly rotating product line with
products sold at the single price point of just £1. Although price-point retailing was
invented in the United States during the 1870s, the chain claims to have introduced
this concept to Europe and is the largest single-price discount retailer in Europe.
Poundland have enjoyed strong sales growth and have maintained steady profit
growth against increasing inflation. This, among other factors, has been aided by a
strong customer base of predominantly female shoppers every week in the C1, C2, D
and E categories (the working classes in a system of demographic classification used
in the United Kingdom). The chain employs 7,000 staff and their company union is
the Union of Shop, Distributive and Allied Workers (USDAW). Their closest rival in
the market is 99p Stores, who undercut Poundland's prices by a penny.

38
It was announced in September 2008 that Poundland's owners, Advent International,
are said to be cashing in on the resurgence in value retailers by preparing to put the
chain up for sale.

Marks and Spencer

Marks and Spencer plc (also known as M&S) is a British retailer headquartered in the
City of Westminster, London, with over 700 stores in the United Kingdom and over
300 stores spread across more than 40 countries. It specializes in the selling of
clothing and luxury food products. M&S was founded in 1884 by Michael Marks and
Thomas Spencer. Headquarter of M&S is in Leeds and the number of location is
1010 stores. It has over 6 million assets and generated last year approximately 9
billion revenue. The number of employees in M&S is 76250.

39
Chapter 4: Methodology

Introduction
The sole purpose of this part is to clearly justify and describe the means and
techniques that have been use in research study. In this segment, we are discussing
and providing logical reasons for the course of action. Before each methodology, a
theoretical definition and brief explanation has been given to support our views and
the process. I began my research with the research strategy, followed by the case
study design, the means and the data collection procedure. Finally, the analysis of the
gathered data and the evaluation of the research are elaborated.

According to (Zikmund), Business research is defined as the systematic and objective

process of gathering, recording, and analysing data for aid in making business
decisions. Research information is neither intuitive nor gathered on randomly bases.
Literally, research is to search again which connotes detail study and systematic
investigation.

Research should be carried out by using suitable methods for the collection and
analysis of data; finally research should address an explicit issue. Research enables us
to apply research process to elucidate the problem and must contribute to our general
understanding for processing the solutions. According to (Jill, Hussey 1997), the sole
function of research can be summarized as
• To investigate some existing unique problem.

40
 • To review and enhance our existing knowledge.
• To provide a suitable solution to a problem.
• To explore more general issues.
• To design new procedure.
• To explain a new phenomenon.
• To generate new awareness.

Researc Samplin Data Date Report

h g collection Analysi
Design s

Establishing Selecting unit Choosing Methods of Writing

the problem of study methods of Data Analysis publication of
definition investigation and the Report
for the Interpretation
problems and
unit of study

Representation of the Research Process (Blaxter, Loraine 2001)

4.1 Style of Research

According to Yin, there are several research strategies to select from when
conducting research. Depending on what the researcher wants to investigate. The
researcher has to find out which approach paramount suites the objective of study.

41
The five appropriate situations for research approaches are; surveys, archival
analysis, case study, history, and experiments. Each research approach implies
different ways of collecting and analyzing the empirical evidence containing for
various merits and demerits.

Purpose of Research
Research can be categorized into three dimensions
1. The use of the research study.
2. The goals in undertakings the research;
3. The type of information required.

The above mention three categorize are not entirely mutually exclusive because a
research study which is classified from one angle of ‘application’ can also be
categorized on the basis of purposive.

42
 Types of
Research
From the
viewpoint

Application Objectives Types of

information
sought

Pure Applied Descriptive Exploratory Correlation Explanatory Qualitative Quantitativ

Research Research Research Research Research research Research e Research

Types of Research

Exploratory Research
Exploratory research is carried out in order to investigate the possible chances of
considering of specific research study. It is generally carried out when a researcher
wants to discover area about which he or she has not knowledge or possess a very
little knowledge.

Exploratory Research is most beneficial in the early stages of a research project when
the stages of uncertainty are at their highest peak. The main objective of this research
is to discover the borders of the environment in which the threats, problems,
opportunities or situation of interests are expected to lie and not only this, but
moreover the variables that are relevant to research project might be found in there.
Advantageous of exploratory research includes the opportunities to make its
impression that may occur with any temporal effects.

Descriptive Research

43
If the main purpose of exploratory research is to unravel the variables that are
significant, then the objective of descriptive research is to provide a valid depiction of
the salient variables which is equally filled with the accuracy. Descriptive research is
probably the most often used form of the research. It may be used to investigate the
sales of the units produced in production process or the market share of the
company’s product. On the basis of demographic distribution the targeted market
might be detailed or the target markets may be investigated. The details of date may
be obtained from various available sources but the massive bulk of it will come out
from the secondary sources of date and from the surveys.

Explanatory Research
Explanatory research attempts to specify the co relation between two aspects of a
phenomenon or the situation. It clarifies why and how the relationship exists between
different phenomenons. In such research, the researcher is analysing the causes and
the relationship between different salient variables. This type of research is basically
designed to develop the explicit theory which is used to elaborate the empirical
evidences that are developed during the descriptive research stage. This is also the
last stage of the cycle of research.

As the area of research in the thesis is to avail an insight in the various aspects and
dimension in distribution channels in international retailing. In the consideration of
my research area and the sole objective of the thesis it is clear that my research is
more of descriptive in nature. The initial stage of the dissertation can also be defined
as Exploratory in nature as we do not know much about the research area ad we are
still in the process of exploring and investigating various areas about we have a very
little knowledge or not knowledge at all. And this exploration will lead us to the
target of achieving our aim in research area and our targeted aim is to understand and
analyze the ways and trends in the distribution channels in international retailing. The
areas that we will be uncovering during the course of action that is a research project
is to understand the market trends in the retail section, entry manner strategies,

44
procedure of retail internationalization, understanding the relationship of the buyers
and sellers and also the consumer behaviour.

4.2 Research Design

4.2.1 Research Problem
The research problem is based on the uniqueness of the situation. In every applied
research the problem is a significant one to determine and for that purpose research is
conducted. Here on our hand the problem is the determination of the electronic
retailing has to what extent affects the consumer behaviour and how much the market
share and the quality of E-retailing service to customers and their satisfaction are
affected due to environmental factors. The problem in this research is that what are
the main reasons that are affecting the retail industry of the United Kingdom?

4.2.2 Style of Research

As there are two basic types of approach, one is qualitative and the other is
quantitative data approach. Both types of approaches are empirical research
approaches but qualitative researches are not in the form of numbers where as
quantitative researches are in the form of numbers. The determination of the
quantitative is on the basis of counting it but the determination of the qualitative is on
the basis of its quality.
The numeric form of data which is quantitative in nature is generally collected and
analyze and it tends to emphasize more on large scale and representative sets of data.
On the other hand the qualitative research is linked with collecting and scrutinizing
information in non numeric forms. It focuses on the finding the details in depth.
Qualitative research is more suitable for the circumstances which will enhance
understanding, and clarifying issues, develop hypothesis, explore the range of
behaviours and uncover the consumer motivations attitudes and behaviour, and it will
provide a new input to the future stage of the research development.

45
Qualitative research, is usually used for
• Fundamental exploratory studies,
• New Unit development
• Deliberate research projects
On the analysis of above qualitative and quantitative, I would use both qualitative and
quantitative approaches both as it would facilitate me to work out on my research
project with better understanding of more difficult issues. It will also be helpful for
me in identifying the objective of the research, these approaches will guide me in how
to measure different variables and it will help me to understand how to scrutinize the
information. Quantitative research approach will be use to spotlight on the statistical
data and contradict the conclusion based on numeric data analysis.

4.2.3 Hypothesis
Before conduction of the research, the researchers have to consider some points,
which also serve as the basis for applying the various methods. In other words before
the research starts, the researcher generate some hypothesis which serves as a ground
for his research. Our main hypothesis in this research is mentioned below,

There is a strong relationship between the quality of E-retail service and overall
customer satisfaction.
In this research the hypothesis is that the technology has serves a vital aspect in
creating the strong relationship between the quality of E-retailing services and overall
satisfaction in the retail companies. There is another hypothesis that retail
competition has also served an important aspect in the E retailing and the third
hypothesis that is very crucial one or may be the sole reason for the strong
relationship between the quality of E-retailing is the buying behaviour of the potential
consumers. It may be possible that one of this is the reason for the rapid growth and
popularity of the e-retailing and it may be possible that in the course of uncovering
this new hypothesis may arise.

46
There may be exists a co relation in between these variables and the e-retail
industries. This projection may be because of the line regression between different
environmental factors.

Based on the hypothesis I would conduct a survey to check whether the hypothesis is
null or not. For the survey, I would design a questionnaire which will contain open
ended questions asking the consumers views about the e-retailing and face-to-face
interview from the management of the Tesco and Sainsbury’s available in Hounslow.
For the generation of the data I would use the hypothetic inductive deductive model
which means first I will induce all the data gathered from different sources like
articles, books, journals, interviews, questionnaires and various case studies. After
inducing the data, I would separate the relevant data from the irrelevant data. This
process is the deduction process which means the unwanted data will be detached out
from the whole data and remaining vital data will be processes to gain the right
information.

The sample of the survey conducted from the consumers through the open ended as
well close ended questionnaire is available as a reference at the end of this research
work in the appendix.

4.2.4 Research Questions

I will begin this research with the following questions and try to find out the proper
answers to these questions through research findings and analysis.
Q1. Is E retailing the most important factor for super market customers?
Q2. What are the core competencies of the company that affect the consumer’s
behaviour?
Q3. Is there exist a strong relationship between the E retailing and the overall
customer satisfaction?

47
4.2.5 Method of Analysis
In order to evaluate critically my research I would use the case study approach. I
would study in detail some of the vital players in the world of E-retailing like Tesco,
Sainsbury’s and examining their strategies adopted by those companies in order to
distribution channels and hence understand what effects are on the market and to
what extent have they been successful in gaining market share. I would also have
interviews with the few members of the management of the respective companies.
Apart from this I have used different tools for analysis, such as SWOT analysis, and
CHI TEST.
In chapter 5.1 I will be explaining in detail “the critical appraisal of literature”.
In chapter 5.2 I will be elaborating in detail “the Graphical representation of Data”.
And in chapter 5.3 I will be elucidating the in detail “the study through Statistical
analysis and theoretical Models”.

4.2.6 Data Sources

Once the research objectives and research proposal are decided then it is essential to
specify the methods for the gathering of the data. It is the role of marketing research
to understand and interpret the research objectives such as the suitable and required
data is collected.

The data should be applicable and dependable, easily and promptly gained,
reasonable and appropriate to the circumstances in question.

The two vital sources used in this research are primary source and the secondary
source. Primary data collected by first hand that is through interviews and it is for the
use of a precise study. There are primary data collections, such as documentation,
past records face-to-face interviews, direct and participant observation and physical

48
object where as secondary data is previously gathered information, and it contains
information from various articles about retail industry, books and internet.

Primary Data Collection

Primary data is collect particularly to avail answers for the questions posed by the
present research purpose.

Webb has classified primary data can be into following

• Qualitative research
• Observation
• Survey research
• Experimental Research

As mention above in research methodology, I would conduct case study for my

research. It is one of the most traditional methods in researches. The purpose of the
case study method is to gain information from either one or few past situations, which
are familiar to the problem situation of the researcher. It is the study of the records
that are available and provide a better understanding of the familiar situation, which
had been experienced by any other researcher or organization in familiar
circumstances. In other words, a familiar situation serves as a guide or reference for
the researcher to carry out research at hand.

Steps in Case Study Approach

The steps in this particular approach is as following

• Selection of Suitable Case
• Initial Research
• Data Phase
• Analysis

49
 • Construction of the Report

Following the steps in case study approach, I stared to go through the relevant cases
following the pattern of Cohen and Manion (1995:123).
After reading carefully different case studies, I have learned about the trends and
modes of the E-retailing, from where the idea conceived for E-retailing and how its
progress has been so far in fast pacing world.

There are some limitations to case study method as the complexity of a case can make
analysis difficult to determine. Some time the perception of the researcher can be also
a factor that serves as a limitation. The researchers perceived things according to his
understanding that may lead to biasness.

Interviews
Due to the limitations of the Case study approach, some time researchers use different
more methods in the research. Interviews involve inquiring or conversing issues with
the individuals. It is one of the beneficial and cost effective techniques for collecting
data, which would probably not be accessible while opting for techniques like
questionnaires or observations. Many discrepancies on the interview mode are
possible. In the modern era, there are focus groups and internet interviews also. Now-
a-days through electronic mails interviews are conducted at a distance place. This is
also very cost effective way.

Interviews are categorised on the basis of the extent of flexibility:

50
 Interviews

Structured Unstructured Semi Structured

Interviews Interviews Interviews

For my research, I have opted for the structured interviews, which are all the
questions have multiple answers from which the interviewee has to respond. The
interviewees will respond on the basis of their past experiences, their competencies in
particular field or their view points.

Questionnaires
Questionnaires are one of the most commonly used collective research methods. The
main spotlight of formulating exact written questions to those whose experiences and
views we are interested. It is a strategy for finding the solutions to the problems that
interest us.

Questionnaires are less expensive and it offers greater anonymity, though they are
limited applicable and has low response rate but the approximate results are always
close to the actual say of public’s view. I would concentrate extra on the
questionnaires that I would forward to related people on the internet, and this mode
might help me to gather some appropriate information for my research on E-retailing.

51
I would use the close-ended questionnaires as the basic tool to carry out my primary
research. (The sample of questionnaire is available in the appendix).

Secondary Data Collection

Secondary data is one that has already been gathered for some objective but other
than the present one which is under consideration. Secondary data are already
collected and are recorded by someone else earlier to the present needs of the
researcher. Secondary data are often past records assembled and require no access to
the subjects or respondents.

I would gather secondary data for my research and the main sources of secondary
data collections are as following:
• Newman & Cullen (2002). Retailing: Environment & Operations : Thomas
Learning
• Levy & Wietz (1996). Essential of retailing : Irwin
• Alexander (1995) The Internationalisation of retailing: frank Cass
• Levy & Wietz (1995). Retailing Management : Irwin
• Alexander (1997) International retailing: Blackwell
• Akhehurst, G. and Alexander, N, (1995) (eds) The internationalisation of Retailing
Cass, London
• Dawson (1999). European cases in retailing: Blackwell
• Fernie, John and Sparks, Leigh, (1998), Logistics and Retail Management, CRC
Journals

Journals of business research, journals of marketing, the services journal will be used
to fulfil my research purpose. Along with this, Libraries, government’s sources
(Current Business) will be used.
• International Journal of retailing
• International Journal of retail & distribution management

52
• International Journal of purchasing and materials management
• The European retail digest
• Harvard Business Reviews

Online Reports
• Key note reports
• Retail intelligence
• Euro monitor
• Mintel Reports

Websites
• www.retailwire.com
• www.ukbusinessQ.ark.co.uk
• www.retailing.mg
• http://strategies.ic.gc.ca
• www.euromonitor.com

Data Analysis
It is the logical application of raw facts to understand and interpret the data that has
been gathered about the related subject. It involves systematic interpretation of data
aftr summarizing it into meaningful form. It is the important aspect of the research as
it is complex and a very demanding task, therefore requires immense devotion and
concentration.

There are some key steps that are very important for the process of analysis. First step
is to arrange the data in a pattern form, once data is sequenced, then we have to
classify it according to categorize and kinds. I would be able to access to the data and

53
once questionnaires are analyzed, I would focus on one procedure within the data at
hand and narrow down it to one significant process and compare it with different
areas.

Steps followed for the analysis of Qualitative information

1. Read thoroughly all the Data

2. Arranging all the comments and vies into similar categories, for instance
concerns strengths, suggestions, weaknesses, inputs, recommendations,
outputs and indicators.
3. Identify patterns and casual relationships in the frame work.
4. Keeping the working papers and all materials for several years in case needed
for future references.

4.2.7 Ethical Issues

While conducting research some of the ethical questions are always arising which

needs a serious address from the researchers. For researchers it is some tie an

immense task to determine whether the consent given to prior research was informed

on the bases of personal preferences, cognitive or psychiatric problems which became

evident throughout the research r not to consent these all.

Often while conducting research a conflict of confidentiality can arise such as to what

extent a company can reveal about its inner plans.

IT has been often noticed that most o the time, a human cannot be completely biased.

To some extent his personal feelings can mingle in the research and not only this but

the results and findings are sometime subject to 'reflective listening' and 'acceptance

54
of individual realities' and this may also has a strong influence. This can also be

proved as damage to the personal beliefs of the individual.

Often it is noticed that the role of interviewer can merge with that of counsellor. Rather than

a simpler interviewer, his role is more of the counsellor who tries to take interview in a one

particular direction.

Chapter 5: Analysis and Findings

5.1 Critical Appraisal of Literature:

55
The main purpose of this chapter is to critically review the literature that clearly
explains the acceptance and application of internet technologies, by the retail players,
for the support and sale of products. In particular, this research seeks to clarify project
a realistic and critical review of what is at present known, in order to assist set up the
spaces that will need to be addressed in future research studies.

In my research electronic commerce (e-commerce) is scrutinized in the framework of

the relationship between organizations and their potential customers and the
implications for firm’s accountability. The technology of e-commerce explains what
can be offered to customers sitting at home, but only those customers decide which of
those technologies will be accepted. The author argues that offering the maximum
client delivered worth by e-commerce can be seen as making an actual input to
consumers, that is shopping through the Internet will be accepted by clients. Shopper
satisfaction is of significant value when measuring seems customer delivered
importance that is offered by e-commerce. Three main dimensions which play a
important part in persuading customer satisfaction are (1) client need, (2) customer
value and the cost of the customer.

The Literature provides an important insight for conducting the research as it explains
the expert views of the authors and the earlier approaches in the familiar
circumstances. It explains the minor details about each and every aspect that is
possible and provide a theoretical framework to build a strong structure on. It serves
as a platform to build a strong and huge work on it.

In the modern regime e-business expansion is very clear and visible because a
product is set up in and access to those products is just by single click. It is true that it
does give to certain extent provides the brand equity but there is no guarantee that the

56
deal customer has made will be a success. Establish business is to an extent free from
cultural constrains.

Internet has provided a hope of being a medium for the quick access to various items
such as news, software, movies etc and the cost of the distribution have also lowered
when the comparison is made with the tangible products. Most of the websites has
made its mark and profit from providing the online services. The sales of household
stuff are done through the online but to distribute it, the conventional methods are
used. It is right to say that internet has provided a new kind to get specialized in.
Majority of retail big units has installed the electronic counter. Even electronic malls
such as yahoo are active in recent times. It is rightly mentioned and we can observe
that electronic brokers have developed in rapid succession. Their indirect sell is to
make their customer feel valuable and provide them satisfaction. They facilitate their
customers by providing them exactly the same products or services customers are
keenly interested in.

It is not incorrect to say that broker is an intermediary who passes the orders to the
supplier placed by his customers along with the services to his clients such as
comparison between different products, on the determination of quality, price etc.
The regime has changed with the development. The manufacturers are at the
advantage with the direct mode of selling through electronic media to their customers
and customers are also satisfied as it is advantageous to both parties because the cost
reduction towards the potential customers of the company and at the same time profit
for the producers also increases. It is obviously true that the traditional ways has
changed into modern sphere. Electronic has added its role and signifcane to the
business.

The web retailing has provided solution to the costly physical network which increases the
cost of the organizations. Though the traditionals thought that it will be a threat to many

57
retailing companies but it has provided exceptional results. Web retailing has a very highly
automated and very centralized procedure that gives a large range discounted vairety
products to the consumers. The online shopping does allow the business to make substantial,
cinsistent patronized, and highly effective and efficient experience.

Jerome McCarthy 4Ps is exactly the important ingredients of the marketing mix though it has
been criticized by Lauterbourn but McCarthy’s marketing mix hold important place for the
manufacturers when it comes to decision making. Mostly the actions are made on the basis of
marketing mix as it provides a ground for making a realistic decision and E retailers also
have alike needs to carry out their action plan that are more suitable and leads to the success.
More than the product company should value the customers, seeking their ease and comforts.
It just takes a simple click that answer the query customer has. E retail offers wide range of
choices to its customers and customer has one more score to look at such as their online
shopping go smooth. They do not have to make requests for help while buying online
products.

The strategic dimension has its potential worth as The Salmon and Tordjan
approaches the basic strategies in retail internationalization whereby retailers in every
locality dispersed their units through their subsidiaries. This assumption that how
consumers do approach retail purchases identify does human make rationale choices
when they select from available choices. In my research, I have found that majority of
the consumer make choices based on the rationality. The approach towards product is
always for the satisfaction of inside and therefore logic stands for it. The satisfaction
is only possible to the majority of the consumers when they attain their products.
Though to sociall behaviour of some exceptional is different, but most of the
consumers are opting for the choice which brings the comfort to them. E retail has
brought the ease and comfort to them.

5.2 Graphical Appraisal of Data

5.2.1 UK E-retail section

58
UK online market growing with the rapid speed (according to the Verdict Report).
Although online retail is confine to limited segment, not everyone does web shopping
but it has keep on improvising from its birth. Online shopping has so far successfully
availed the confidence of consumers because one out of every four customers is now
buying products via internet which means that the market share of online consumers
are increasing and the e retailing industry is developing.

Pie Chart Representation of increase on E retail in United Kingdom

Online Retail

16.6% 15.1%
% 2008
2009
15.8%
2010

This above Pie Chart shows the improvement in e retailing in the United Kingdom in
the last three years. In 2008, the percentage of E retailing was 15.1%, in 2009 it
increased to 15.8 and in 2010; it has paced to 16.4%

5.2.2 Graphical Representation of Questionnaire:

59
 45.00%

40.00%

35.00%

30.00%

25.00%
Series1
20.00%

15.00%

10.00%

5.00%

0.00%
Discount Price Variation Product f rom Of fers f rom
Retailers Retailers

After the interviews and the questionnaires, I have generated these finding on the
basis of respondents answers and on those answers the bar charts and graphs are
designed.
Sainsbury’s consumers respondent to the first question that which of the following
attracts them to do online shopping and the response was 6 out of 15 opt for discount,
4 answered price variation, 2 answered product from retailers and 3 responded offers
from the retailers.

50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Series1
20.00%
15.00%
10.00%
5.00%
0.00%
Discount Price Variation Product from Offers from
Retailers Retailers

60
When same question was asked from Tesco’s consumers, the response to the first
question that what attracts them to do online shopping was 7 out of 15 ticked for
discount, 3 responded price variation, 1 said product from retailers and 4 responded
opt for offers from the retailers.

60.00%
50.00%
40.00%
30.00% Series1
20.00%
10.00%
0.00%
ily

kly

y
y
tly

l
n tl
Da

nth
ig h
ee

ue

Mo
W

rtn

eq
Fo

Fr

In the second question that how often the shoppers do online shopping. The feed back
from the Sainsbury’s consumers were 2 out of 15 said daily, 8 marked weekly, 1
answered monthly and 2 each marked frequently and fortnightly.

61
 50.00%
40.00%
30.00%
Series1
20.00%
10.00%
0.00%
ily

kly

y
y
tly

l
n tl
Da

nth
ig h
ee

ue

Mo
W

rtn

eq
Fo

Fr
For the same question, the response from the Tesco Consumers were 6 out of 15 said
weekly, 3’s response was fortnightly, whereas 2 each respondents opt for daily,
frequently and monthly.

35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%
Marketing
Product's life
Development

Strong Brand
New Product

Channel
Strong
Strong
Loyalty

The third question from the consumers of Sainsbury’s was that what attracts them to
shop online and the feedback was out of 15, 5 answered strong brand loyalty, 2 said

62
strong marketing channels and 4 each replied strong product life and new product
development.

50.00%
40.00%
30.00%
20.00% Series1
10.00%
0.00%

Marketing
Product's life
Development

Strong Brand
New Product

Channel
Strong
Strong
Loyalty

Tesco’s consumers responded to third question differently, 3 said new product

development, 6 marked strong brand loyalty, h opt for strong product life and only 1
responded strong marketing channel.

35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%
Frauds
Security

Check-out
and Services
Presentation

Time
Confusing
of Product

63
sanisbury’s customers response to a question what could be the cause that stops them
from shop online was 3 answered security is the main reason, 3 replied frauds, 4 said
confusing presentation of goods and services, whereas 5 marked check-out time.

50.00%
40.00%
30.00%
20.00% Series1
10.00%
0.00%
Frauds
Security

Check-out
and Services
Presentation

Time
Confusing
of Product

for the same question the responses from Tesco consumers were 4 said security is the
cause which stops them from online shopping, 3 responded frauds, 6 answered
Confusing presentation of Products and services and 2 marked Check-out Time.

Comparison of core Competency of Sainsbury and Tesco:

64
 50%
40%
30% Saisnbury
20% Tesco
10%
0%
Time Weather Large Free
Saving Choice of Delivery
Products

One of the question asked from the management and employees of the Sainsbury’s
and Tesco’s were that what are the core competency according to them from the
following options and 6 people of Sainsbury’s responded by saying Time saving
whereas 5 of Tesco answered Time saving, 4 opt for weather in Sainsbury and 5 opt
for weather in Tesco, 3 of the Sainsbury said large choice of products whereas 4 in
Tesco, and 2 of the Sainsbury answered free delivery whereas 1 person of Tesco
opted for Free delivery..

65
 50%
40%
30% Saisnbury
20% Tesco
10%
0%
Time Weather Large Free
Saving Choice of Delivery
Products

In the graph above it is noticed that Tesco is a huge company and their core
competencies are different than the Sainsbury’s. Sainsbury has clear advantage in
time saving and free delivery but Tesc has more upper edge in the weather and large
choice of products because they are not much confined to baking products but are
extended o appliances and other household stuff.

66
 50%
40%
30% Saisnbury
20% Tesco
10%
0%

d
d
d

d
d

te
f ie

f ie

fie
fie

in
is

is

is
is

po
at
at

at
at

S
S

ap
S

ot
y

ss

is
er

D
Le
V

The question about the level of E-retailing services of the company generated the
results of 4 of the Sainsbury and 5 of the Tesco responded Very satisfied, 6 of
Sainsbury and 7 of Tesco answered satisfied, 3 out of 15 of the Sainsbury and 1 out
of 15 of the Tesco marked not satisfied, whereas no one marked disappointed from
either Sainsbury or Tesco.

50%
40%
30% Saisnbury
20% Tesco
10%
0%
d

ed
sa fie d
Sa d

t S ied
ss isfie
f ie

nt
No tisf

is
t is

oi
t

at
pp
Sa

Sa
ry

Di
Ve

Le

67
The graph above shows that Tesco has a slight upper edge over the Sainsbury’s about
the level of the E-retailing services satisfaction as we can see clearly that red line
which represents Tesco is above the Sainsbury.

35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%
d
fie

ed

ed
ed

ed
tis

int
sfi
sfi

sfi
Sa

po
ati
ati

ati

tS

op
S

S
ry

Dis
No
ss
Ve

Le

The results generated from the questionnaire about that what is your over all
satisfaction about this company (Sainsbury’s), the 5 people marked very satisfied, 4
respondents answered satisfied, whereas 2 each replied less satisfied, not satisfied and
disappointed. This is been represented in the graph above.

68
 35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%

ed
d
ed

fie

ed

fie

t
tis
sfi

sfi

oin
tis
Sa
ati

ati

Sa

pp
S

so
t
ry

ss

No

Di
Ve

Le

35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%
d

ed
fie
ed

ed

fie

t
tis
sfi

oin
sfi

tis
Sa
ati

ati

Sa

pp
S

so
t
ry

ss

No

Di
Ve

Le

For the Same question that what is your over all satisfaction about this company
(Tesco), the respondents has responded by 5 each marked very satisfied and satisfied,
2 each answered less satisfied and not satisfied, where as one respondent replied
disappointed.

69
 35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%

ed
fie
ed

ed

fie

t
tis
sfi

oin
sfi

tis
Sa
ati

ati

Sa

pp
S

so
t
ry

ss

No

Di
Ve

Le

This is also represented in the bar diagram to show the number of respondents and
theirs respective responses.

70
5.3 Study through Statistical Analysis and Theoretical model
5.3.1 Chi-Test
Sainsbury E- retailing Services
Rating
Responses 1 2 3 4 Total
very Satisfied 0 2 1 1 4
Satisfied 2 3 0 1 6
Less Satisfied 1 1 1 0 3
Not Satisfied 0 0 1 1 2
3 6 3 3 15

expected factor
0.8
0.81 1.62 0.81 1 0.266667
1.2 2.4 1.2 1.2 0.4
0.6 1.2 0.6 0.6 0.2
0.3
0.39 0.78 0.39 9 0.133333

P VALUE=0.621525

As we know that if the P VALUE >0.05 then the null hypothesis cannot rejected and in this test our va
so therefore there is no relationship between the different variables

71
Sainsburys Overall Satisfaction
Rating
Responses 1 2 3 4 5 Total
Very Satisfied 2 2 1 0 0 5
Satisfied 0 2 1 1 0 4
Less Satisfied 0 1 1 0 0 2
Not Satisfied 0 0 1 1 0 2
Disappointed 0 0 0 1 1 2
2 5 4 3 1 15

Expect
ed Factor
0.3333
0.66 1.65 1.32 0.99 0.33 3
0.2666
0.54 1.35 1.08 0.81 0.27 7
0.1333
0.26 0.65 0.52 0.39 0.13 3
0.1333
0.26 0.65 0.52 0.39 0.13 3
0.1333
0.26 0.65 0.52 0.39 0.13 3

P VALUE
=0.358872
As we know that if the P VALUE >0.05 then the null hypothesis cannot rejected and in this test ou
value is 0.358872 so therefore there is no relationship between the different variables

72
Tesco E-Retailing Service
Rating
Responses 1 2 3 4 Total
Very Satisfied 3 1 1 0 5
Satisfied 4 2 1 0 7
Less Satisfied 0 0 1 0 1
Not Satisfied 0 0 1 1 2
7 3 4 1 15

expecte
d Factor
0.33
2.331 0.999 1.332 3 0.333333
0.46
3.269 1.401 1.868 7 0.466667
0.06
0.469 0.201 0.268 7 0.066667
0.13
0.931 0.399 0.532 3 0.133333

P VALUE=0.211764
As we know that if the P VALUE >0.05 then the null hypothesis cannot rejected and in
this test our value is 0.211764 so therefore there is no relationship between the
different variables

73
Tesco Overall Satisfaction
Rating
Responses 1 2 3 4 Total
Very Satisfied 3 1 1 0 5
Satisfied 1 3 1 0 5
Less Satisfied 0 1 1 0 2
Not Satisfied 0 0 1 1 2
Disappointed 0 0 1 0 1
4 5 5 1 15

Expect
ed Factor
0.33333
1.332 1.665 1.665 0.333 3
0.33333
1.332 1.665 1.665 0.333 3
0.133 0.13333
0.5332 0.6665 0.6665 3 3
0.133 0.13333
0.5332 0.6665 0.6665 3 3
0.06666
0.268 0.335 0.335 0.067 7

P
VALUE=0.274025
As we know that if the P VALUE >0.05 then the null hypothesis cannot
rejected and in this test our value is 0.274025 so therefore there is no
relationship between the different variables

74
5.3.2 SWOT Analysis of Sainsbury
SWOT Analysis of Sainsbury’s

75
 Internal Strength Internal Weaknesses
• It is confined to
• Consecutive High
only UK market
Turnover and
• Consumers
Increased Sales switching from
local brands after
• Active in Social take over by
Corporate foreign firm.
Responsibility

• Celebrity endorsing
Products

• Skilled Staff

External Opportunities External Threats

• Diversification in to • Investment
new Business without returning
• Increase more its benefits
online sales in • Regulatory
market. Requirement

STRENGHS

• Sainsbury's has had consecutively thirteen quarters of growth. Its turnover is

increasing every year and profit after tax is (Annual Report 2007).
• It has a very skilled and experienced employees working as a team under a very
good leadership of its Chief executive.
• Sainsbury's has been working very well on social corporate responsibility. It has
taken initiatives like fair-trade banana for showing their positive concern on green
and environmental issues.

76
• Celebrity endorsing products has increased its overall sales as it is one of the few
supermarket chains to use this technique.
WEAKNESSES
• There is a possibility of consumers switching from Sainsbury’s local brands as
Qataris Private equity firm took over the bid which is a foreign company and British
locals who have more implication towards British companies may do so more often
now. • Sainsbury is confined to only United Kingdom. Its market is limited which can
lead to a problem of needs to be a source of exceeding the growth within the food
retailing in the United Kingdom.
OPPORTUNITIES

• In future Sainsbury's has a good opportunity to expend as it has alternative business

of investment in property. Through banks also they can make more profit presents a
great opportunity for future growth. Its investments in property have more chances to
expand in forth coming years.
• Sainsbury has more opportunity to exceed its online sales as its online sales
margin is higher leading to high profits. This will increase investment
opportunities.
THREATS
• There has not been any immediate benefits after so much investments already made
on the green and environment. Sainsbury consumers are withstanding the worst of
high prices due to bio fuel and it is directly affecting the supply chain.
• Regulatory requirements are bending its back on Sainsbury's operations and most of
issues are very critical in nature to planning, rivalry and environmental matters,
employment, pensions and tax laws.

77
5.3.3 SWOT Analysis of Tesco

SWOT Analysis of Tesco success

Internal Strength Internal Weaknesses

• High prices as
• E-commerce lead
compare to rivals
• Market Leader in UK • Lacks development
and European in non food areas

countries

• Accomplishment of
internal Development

• Innovations

External Opportunities External Threats

• Open to Ready meal • Too much
developments concentration on
• Grand exporter of international
Development
new formats.
• Change in planning
regulatory
Requirement

Strength
• Tesco has a clear lead in E-commerce as compare to its rivals. From decades,
it has been on top of the list of the best retailers and it still holds its position
very firmly.

78
 • Undoubtedly, Tesco is the current market leader not only in the United
Kingdom but also in the most of the European countries. It has been
recognized as one of the best retails in the chain today.
• In has successfully made its mark in the international regime as it has a clear
dominance and strong brand name in the world.
• Tesco has been one of the best innovators as it has always come up with new
formats. It is also the trendsetters for the other retailers.
Weaknesses
• One of the area in which Tesco has to work out is their prices. The rival
retailers offer prices that are as compare to Tesco offer very less and it can
lose its customers to rivals if not been catered well.
• Tesco should plan to work more vigorously in the non-food areas. It’s all
concentration is in food items.
Opportunities
• Tesco has an opportunity to expand its business by investing in the ready
meal. This introduction will increase its market share as well market
credibility.
• As Tesco has been innovative in its approach so it can produce net formats in
international market too.
Threats
• Too much concentration in the European market can make it loose its grip in
the United Kingdom. These new emerging retailers can make their grounds
strong in United Kingdom as Tesco is mainly concentrating in the
International market rather than national market.
• Change in the technology and international regulations can affect the
strategies and planning of the Tesco.

79
Chapter 6: Discussions
6.1 Interpretation of Results
Research Q1. Is E retailing the most important factor for super market
customers?
After analysing our assumed hypothesis from different angels with the help of
statistical tools, analysing models, and interviews with the different people now we
can answer our first question that whether the E retailing is the most important factor
for the super market customers. To certain extent E retailing is an important factor for
the super market customers as those who do shopping do not always feel same about
it all the time so for few e retailing is a blessing but not for the others. It is one of the
important factors but than again it is not the only important factor for the super
market customers. More of the at home customers will perceive it as important factor
because it will save their time.
Research Q2. What are the core competencies of the company that affect the
consumer’s behaviour?
The core competencies if the company can affect the consumer behaviour because in
case of Tesco, innovation of new formats are one of their core competencies and it
has been a significant factor in the affecting the behaviour of the consumers. The
customers feel more attraction towards the brand name and they are willing to use a
band which is not only good but also the distinct one.
SWOT he have mentioned that for Sainsbury the bid taken by foreign firm will drive
few British locals, who have more implication towards British companies will divert
from them. Sainsbury’s investments in green and environmental issue are affecting
the behaviour of the customers. They feel that company is taking care of them and
they therefore are more inclined to use the same company products.

80
Research Q3. Is there exists a strong relationship between the quality of E
retailing services and the overall customer satisfaction?
No, E retailing is not the most important factor for the super market customers as it
has no co relation between these two different variables. There exists no strong
relationship that the quality of electronic retailing is the essential reason for
customer’s satisfaction. It is not the only genuine factor which will drive people
towards satisfaction. Most often people only do online shopping in order to escape
from long travelling but not all of the online customers are overall satisfied with the
electronic retailing. There are various other factors such as the prices of the
commodities, if there is more variation, the overall customer satisfaction will be
increasing more. Another important factor may be the brand quality which will bring
more satisfaction to the customers. Most of the consumers want a bundle of benefits
with good quality because if a consumer spends money his psychology is that I get
something fine in return. The quality of the commodity brings more satisfactions.
We have conducted the chi-test to establish the relation between these two different
variable but the results finding are totally different than what was assumed in the
beginning of the research. There is no relationship between quality of electronic
retailing and the overall customer satisfaction because customers are only satisfied
when they have bunch of benefits. They are only attracted to those items which has
either a good quality or a low price etc. there satisfaction can not be because of the
electronic retailing of the company.

6.2 Evaluation of the Results

After the critical analysis of the UK retailing and interpretation of the data we can say
that our findings have been close to previous empirical evidences as well the existing
theory. According to Chan H.(2001), Lee R.(2001), Dillon T.(2001) and Chang E.
(2001), E-retailing basically deals with the sales of goods and services which means
that it is about the sales of goods and services via electronic media and from our
research finding it has been similarly proved the same way.

81
With our findings, we come to a point that Electronic retailing can do much more
miracles for the supermarket sales and this idea was also narrated by the dean of
London Business School Mr. John Quelch, he said that e retailing can do wonders for
the sales of the supermarkets.
With this piece of research it can also be justified that with the expansion of
Electronic media has changed the outlook of the Retailers, they have also progressed
from their traditional sellers to the specialized brand executors. According to
McGoldrick, 2oo2, Retailers have “progressed from being just merchants to retail
brand manager”. This means that our finding has been similar to the statement of
McGoldrick.
In this research we know that E retailing has gained its reputation in recent era and
with the passage of time, it has continuously exceeded which requires massive capital
but there is no surety that returns on investments will be quick one and this findings
are also similar to Lamey 1996 states that “Global retailing demands huge investment
and gives no guarantee in return”.
According to (Vida and Firhurst, 1998), the decision occurring from the inner
atmosphere has a great impact on the over all and in my research I have noticed that
the decisions of E retailing have an immense impact on the business. One wrong
selection can take away all the customers from the firm. If any one of the decision is
not fulfilling the customer satisfaction than it will be automatic disaster for the
company.

In this piece of research, it has been significantly notified that customer loyalty is
subject to customer’s satisfaction and this is similar to the empirical evidence of the
research by the (Reichheld 1996). Here in the SWOT analysis we noticed that
customer’s loyalty towards the companies are on their satisfaction. According to
Reichheld ‘customer satisfaction is the key to securing customer loyalty’.
In our Research, through the SWOT analysis we have come to the point that it is not
always that all the customers who are not satisfied will resent the company. Our
interviews via questionnaire also show this behavior of the consumers that it is not

82
always a one particular thing on their mind, as for some the reasons could be different
ones too and this is exactly similar to the empirical evidences of the previous research
on the consumer behavior. According to (Buttle 1997), Dissatisfactions or satisfaction
does not always lead to defection. Not all sorts of consumers will have emotional
enchantment with the same supermarket. It’s more about the price and qualities.
From our research it has been clearly evidenced that consumer behavior can be
intrinsic as well extrinsic for instance if its intrinsic than this would be of one kind of
loyalty where the consumer puts more efforts just for a good deal and this would
automatically brings two things in frame, one is time factor and the other is
opportunity costs which will reduce the loyalty of the consumer and this is also being
one point that gives more support to the already empirical evidences available in the
literature review. Hence we can say that situational approach is more in account for
the consumer’s behavior in different settings and satisfaction has no significant role
to play when the efforts are not too much required and this is also proved our chi test
that the overall satisfaction of the customer has nothing to do with the E retailing
services.

83
Chapter 7: Conclusion
7.1 Evaluation of Hypothesis
After the Chi-test and generating the graphs and charts about the different variables,
the results are available and I reach to the conclusion that our hypothesis that there
exists a strong relationship between the quality of E retailing industry and the overall
satisfaction of the customers is wrong. Our assumed hypothesis is not the correct one
because P value in both cases (Tesco and Saisnbury’s) is more than the standard
required value of 0.05.
Sainsbury’s E retailing services result is 0.621525, which means that P value is
greater than the hypothetical value of 0.05 and there for the result shows that
hypothesis is incorrect one. The chi test secures the result of the overall satisfaction of
the customers as 0.358872 and it is also greater than the required hypothetical value.
For Tesco the numeric result occurred is 0.211764 and this P value is not meeting the
standard value of 0.05 so the retailing services are not as we have assumed and the
Chi test has generated the result of 0.274025 for the overall satisfaction of the
customers of Tesco. This P value is also more than the required value of 0.05 that we
have assumed in the beginning of the research so this hypothesis that we have
assumed in the beginning, now it can be rejected due to the results on hand.
The graphs and the bar diagrams about the e retailing services of the respected
organizations and the consumer behaviour also suggest that there are different factors
responsible for the customer satisfaction.

According to the SWOT analysis there are some weaknesses and threats from
consumer’s changing behaviour but it is no clear that customer satisfaction is not
based on the e retailing.

84
There can be other factors that may be responsible for the customer satisfaction such
as price strategies and offers made by the sellers and retailers, the quality of the
products and services etc. These variables may play vital role in the customer’s
satisfaction but quality of e retailing is not the whole sole vital and crucial factor for
the customer satisfaction.

7.2 Limitation of the Research:

The research is conducted with the time constrain as there was not much time to go in
more detail to explore the research to deeper level. The respondent selected were only
on the basis of random selection method and the number of respondents were very
small, of more people were included, the result finding could has been more different
or brighter than the one currently occurred from this research. The present results
cannot be regarded as comprehensive because it was only limited to two selected
Retail organization. The selected respondents were a small part of the overall but if
more respondent were included and few more similar sort of industries were included
in the research, the results would have been more generalized as the research is only
conducted. Limitations
Moreover, the questionnaires are filled to generate the data but it is not been
confirmed that the responses are true in nature because the possibility is alive that our
respondents might have answered few questions differently than what they really felt.
Their phase of mood is unknown so we do not know whether they answered correct
or incorrect.

7.3 Recommendation for Further Work

The limitations I have mentioned above must be overcome by the in the future
research pieces. In the future researches, the researcher must conduct more detailed
interviews with the op management and should also conduct the interviews of the
employees and people associated with the E retail industry. The future researcher
should also have more direct approach to gather information and should also include
interviews sessions with the members of Chamber of Commerce in order to increase

85
the generalizability. The results of the future researches will be more acceptable when
the appropriate method of sampling is used which would cover the good proportion
of the population. The results finding will bring more generalizabilty if sample is
taken from other retail companies also in the future researches. If the sample is a
large one that will be more successful for the future researches as large spectrum of
consumer satisfaction and E retailing will comes under one big umbrella and the
chosen hypothesis will bring more possibilities to work on. In the future, researcher
must also consider conducting the researches in the other parts of the world to find
the relationship between the quality of E retailing and the overall satisfaction.
With this research it is clear that there are few areas that the E retailing industry has
to think serous about such as the technological advancement and changing consumer
behavior. It has to improve the online services by introducing digital live camera so
that a consumer can not only see the still image but can also see live picture. This will
give the buyer exact idea about the product. These cameras in the supermarkets will
also have the function of magnifying the labels so that consumer can read the
ingredients of the product and has a complete knowledge about the hygiene level.
The E retailing companies should also start to conduct the workshops in order to keep
its employees informed about the new technologies and help with sessions in order to
meet the challenges in the dynamics of the environment. It should also groom its
workforce to understand the needs of the customers and how to satisfy the online
consumers about their purchases.

7.4 Reflection on the work:

I believe I am very satisfied with my work as it was a great learning experience for
me. Now I clearly understand most of the things about the E retailing world. I have
learnt how to conduct research and how the data can be accessed. My knowledge
about various products and consumer behavior has improved largely. While
commencing this research I communicated to different people from different
backgrounds and it was a great working experience communicating with them. I got
an opportunity to put the theories in to practices.

86
I have an opportunity to understand the dynamics of the environment and how the
professionals approach to their targets. I have also learnt through this research how to
critically analyze and evaluate the organizations.

Bibliography

1. Weather, broadband and credit cards have created phenomenon

Saturday September 2, 2006, Guardian News Paper.

2. Smith P.R and Chaffey, D. (2005) eMarketing excellence: at the heart of

eBusiness. Butterworth Heinemann, Oxford, UK. 2nd edition.

3. Gordan, Ian H. (1998) “Relationship Marketing: New Strategies, Techniques

and Technologies to Win the Customers You Want and Keep Them Forever”.

Toronto: Wiley.

4. Strauss J., Ansary A. and Frost R. (2006) E-Marketing, Pearson Prentice Hall,

4th Edition.

5. Swinyard, W.R. and Smith, S.M (2003) ‘Why Consumers (Don’t) Shop

Online’, Psychology & Marketing 20, issue 7, p.p. 567-598.

6. Mathieu, Richard Industrial Management ‘Hybrid Retail: Integrating E-

commerce and Physical Stores.’

87
7. Richard W. and Joel R. (2006) ‘How click-happy Britain fell in love with

online shopping. [Accessed 5 February, 2011 ] [Internet]. Available from

http://www.guardian.co.uk/technology/2006/sep/02/news.business

8. Alexander, N (1997), “International Retailing”. Blackwell, Oxford

9. Reynolds, J. (2002), “ Charting the multi-channel future: retail choices and

constraints”

10. McCarthy, E.J. (1960), Basic Marketing, Irwin, Homewood IL.

11. Kumar, N. (1997), “The revolution in retailing: from market-driven to market-

driving Long Range Planning, Vol. 30 No. 6, pp. 830-835

12. Dennis, C. E, French, T. and Merrilees, W. (2004), E-retailing, Routledge,

London.

13. Kearney, A.T. (2000), E-business Performance, A.T Kearney, Chicago, IL.

14. Steve Burts and Leight Sparks. “Department of Trade and Industry:

Competitive Analysis of retail sector in UK”

15. Borden, N.H. (1964), “The concept of the marketing mix”, Journal of

Advertising research, Vol. 4, pp. 2-7

16. Goldrick, P. (2002), “Retailing Marketing Management”, McGraw Hill, 2 nd

Edition.

17. Goldrick, P & Davies, G (Eds) (1995), “International retailing: Trends and

Strategies”, Pitman Publishing.

18. Peteraf, M.A. (1993), The Cornerstones of Competitive Advantage: A

Resource-Based View. Strategic Management Journal; 14, (3), pp. 179–191

88
19. Cap Gemini Ernst & Young (CGE&Y), 2000. “On-line Retailing Report

2000”

20. Salmon, WJ and Trojman, A (1989), “The internationalization of retailing,

International Journal of Retailing, 4, pp. 3-16

21. Grant, R.M., (1991), The Resource-Based Theory of Competitive Advantage:

Implications for Strategy Formulation. California Management Review; 33,

(3), pp. 114–135.

22. International Journal of Retail & distribution Management, Vol. 30 No. 11,

pp. 550-553

89
References:

23. Henderson, R. & Clark, K., (1990). “Architectural Innovation: The

Reconfiguring of Existing Product technologies and the Failure of Established

Firms, [Accessed 9 February, 2011]

<http://dimetic.dime-eu.org/dimetic_files/HendersonClarkASQ1990.pdf>

24. Christensen, C., (1997). The Innovator’s Dilemma: When New Technologies

Cause Great Firms To fail. Boston, Harvard Business School Press. [Internet]

90
 [Accessed 2 February, 2011]

http://web.mit.edu/6.933/www/Fall2000/teradyne/clay.html

25. Kotler, P., (1997), Marketing Management: Analysis, Planning,

Implementation and Control (9th Edition). New Jersey, Prentice, Vol. 29,

issue 1, 35-50.[ Accessed 3 February, 2011]

http://knol.google.com/k/marketing-management-13th-edition-philip-kotler-

book-information-and-review

26. Lauterborn, R. (1990), “New marketing Litany: 4Ps passe’, 4Cs take over”,

Advertising Age, [Accessed 17 February, 2011]

27. 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 4 February, 2011]

28. Keller, K., & Aaker, D., 1992. “The Effects of Sequential Introduction of

Brand Extensions.” [Internet] 4 February, 2011], Journal of Marketing

Research, Vol. 29, issue 1, 35- 50

29. Grant, R., (1991), “The Resource-Based Theory of Competitive Advantage:

Implications for Strategy Formulation”, California Management Review, p.p.

114-135. [Internet] [Accessed 14 February, 2011]

30. Culliton, J.W. (1948), “The Management of Marketing Costs”, Harvard

University Press, Boston, MA.

31. Keller, K., 1993. “Conceptualizing, measuring and managing customer- brand

equity.” [Internet] 5 February, 2011, Journal of Marketing Research, 57

(January), 1-23

91
 32. Lazer, W. and Kelly, E.J (1961), “The retailing mix: planning and

management” Journal of Retailing Vol. 37, No. 1, p.p 34-41

33. Sirohi, N., & McLaughlin, W. Edward., (1998) “A model of consumer

perceptions and store loyalty intentions for a supermarket retailer” [Internet] 5

February, 2011, Journal of Retailing Volume 74, Issue 2, Pages 223-245

34. Lee, K. Sheang., & Tan, Soo Jiuan., (2003) “E-retailing versus physical

retailing: A theoretical model and empirical test of consumer choice”

[Internet] 6 February, 2011, Journal of Business Research Volume 56, Issue

11, Pages 877-885

35. Walczuch, R., & Lundgren, Henriette., (2004) “Psychological antecedents of

institution-based consumer trust in e-retailing” [Internet] 6 February, 2011,

Information & Management Volume 42, Issue 1, Pages 159-177

36. Mittal B. (2005) “Next stop, unravel: The tangled web of e-consumer

research”. Journal of Unravelling e-consumer research. [Internet] 7 February,

2011, Vo.5 (1), pp125-135

QUESTIONAIRE
Age: __________________ Education:
__________________
Occupation: __________________ Gender:
__________________
Income: __________________

Q1. Which of the following attracts when you shop online?

92
 Discount
Price variation
Product from Retailers
Offers from Retailers

Q2. How often do you shop online?

Daily
Weekly
Fortnightly
Frequently
Monthly

Q3. What are the following attracts you to shop online?

New product development
Strong brand Loyalty
Strong products life
Strong marketing channel

Q4. What are the core competencies of your company?

Time saving
Weather
Large choices of products
Free Delivery

Q5. Which of the following cause you not to shop online?

Security
Frauds
Confusing Presentation of Products and Services
Check-out Time
Q6. Are you satisfied with the level of E-retailing services of this company?

93
 Very Satisfied
Satisfied
Less Satisfied
Not Satisfied
Disappointed

Q7. Do you often use same company’s E-retailing services?

Yes
No
Never noticed
Q8. What is your overall satisfaction about this Company?
Very Satisfied
Satisfied
Less Satisfied
Not Satisfied
Disappointed

Thank you for your cooperation~

94