A S T R A T E G IC A N A L Y S IS O E L E C T R O N IC -R E T A IL IN D U S T R IE S N I T H E U N IT E K IN G D O M

November 2011

Abstract This report in to examine the electronic retailing in the United Kingdom as it is the applied research based on the problem of changes in the methods and techniques of the retailing in the constantly changing environment that has an impact on the total satisfaction of the consumers. The researcher has no precise idea about the correlation among the consumers satisfaction and the electronic retailing services. To explore the level to which a certain behavior is demonstrated by the customers engaged in the online shopping and analyze the various environmental factors are part of the research report. The purpose is to investigate the causal effect relationship between total consumers satisfaction (dependent variable) and Electronic retailing services (independent variable). The different journals, news articles, and books regarding the E retailing are examined in the report along with the case study analysis. The close ended questionnaire is used to generate finding from the 15 consumers chosen through random sampling technique. The four managers of the selected organization have been interviewed for 20 minutes each. The results of the hypothesis considered for this research is check through the Chi-Test based on the findings of survey and interviews. The Conclusion of the report is discussed in the later part of the dissertation. The findings are limited to the selected organisation due to the sample size and various other limitations, discussed in the last chapter of the research report.

Contents Chapter 1 : Introduction 1.1 Background to the research 1.2 Relevance of the topic for management study 1.3 Aim 1.4 Objectives of Research 1.5 Scope of Research 1.6 Structure of the Report Chapter 2 : Literature Review 2.1 Theory 2.2 Results of various Empirical Research Chapter 3 : Methodology 3.0 Introduction 3.1 Overview of Research Design 3.2 The process of Research. 3.3 Data Collection 3.4 Sampling 3.5 Data Analysis 3.6 Pilot study 3.7 Research study limitations 3.8 Ethical Approach 3.9 Summary of the chapter Chapter 4 : 4.1 4.2 4.3 4.4 Analysis and Findings Introduction. Interview Results and Discussions Questionnaire analysis Statistical tools for analysis of Tesco

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Chapter 5 : Conclusion 5.1 Introduction 5.2 Objective 1 5.3 Objective 2 5.4 Objective 3 5.5 Evaluation 5.6 Limitation of study 5.7 Future recommendations Bibliography Appendix 1 Appendix 2 Appendix 3 Appendix 4

Chapter 1
This is the opening part of the research report; the prime focus of this chapter is to give the brief account about part played by the electronic commerce retail sector and the attitude and the behavior demonstrated by the online shoppers. Furthermore, the background, purpose and motivation behind this topic are justified in this chapter. The aims, scope and objective along with the relevance to the MBA in the United Kingdoms program is discussed in the opening chapter. The last sub topic of the chapter gives brief introduction about the other chapters included in the research. 1.1 Background Today one of the few key sectors that contribute to the economy of country on a high scale is retailing industry. The role has increased more and more with the development in the tools and techniques of the retailing system. In the last couple of years, the revenue sales of retail industry has inclined to 285 billion, creating 12,750 jobs for fulltime employees which is increase in the job creation by 2.1% as comparing to the job creation ratio in 2009 (prospects.ac.uk). This shows the emerging significance of the retailing industry in the United Kingdom in the past five years. The report published in 2010 by B.R.C (British Retail Consortium) revealed that consumers are spending more in the retail shopping as the number of retail shops open in the previous year has increased by one third reaching to 286000 units of retail in the United Kingdom. All over the country retail sector is under the strong domination of large scale huge retailers operating their multinational chain from small outlets to big supermarkets. The vitality of retailing sector is explained in the social and economic context. The retail background has not emerged recently as it has been two dimensional, moving in both directions at same time. It forms a social network therefore it affects the people in several ways. Any person that is engage in buying of product is linked with this sector in one way or the other. This means that retailing sector has a social dimension affecting the life of consumers who are associated with it because the buying and selling of product forms social grounds for interactions. At the same time, economic aspect arises as the exchange of commodity or service take place. This means that retailing sector is one of the main sectors that have close considerations towards economic and social linkage formations. The

automatic connection of economic interaction emerges due to social network formed between the retailing sectors and the everyday population. With the expansion of technology, the techniques of retailing has modified to a large extent. The traditional mode of retailing converted into modern types so that consumers have ease of access to products and services with the large variety of choices to elect from. The era of the present is regarded as the survival of the fittest in the business which means those businesses have more opportunity to stay for long in the market that have the true potential to be competent in all aspects. The satisfaction of consumer is one of the key areas that every business target to expand their business, increases their market reputability, and enhances their market share. From the past till present, the goal of business is profitability and for that every business is trying new tools, techniques and methods to gain it in the most desired manner. Compatibility at all level is one of the historically proved factors which increase the business for an organisation and every organisation develop strategies and plans to maintain the compatibility factor in all operations. The expansion of retail industry is also the attribute of the fact that operation activities and management are strategies to increase the market worth of the organisation in the competitive environment. The buyers have more given to the market in terms of making demands and the retailers in return has accepted those demands and on the basis of those demands, the methods and techniques are redesigned to ensure that consumers choice remain the first priority of the marketers and business. 1.1.1 Motivation:

The changing techniques and rapidly changing strategies in the business world has an impact on the styles and patterns of retail selling methods. The first step to motivate the researcher for the selection of this topic come with the The retailing mix: planning and management, which is a Journal of Retailing Vol. 37, No. 1, written by Lazer and Kelly (1961). This provide the first basic motivation to study the retailing sector in depth so that business strategies of the selected organisation is studied under the context of the journal of retailing and what are the related issues in the planning and management. Second motivation came in the business context to see the practical implementation of available theoretical model so that choices and consumers preferences are tested with the empirical test. This idea has been conceived from the journal of Business Research, E-retailing versus physical retailing: A

theoretical model and empirical test of consumer choice, Volume 56, Issue 11, by Lee, K. Sheang., & Tan, Soo Jiuan., (2003). The above mentioned journals have given the important information about the electronic retailing system and its usage in the business world to accelerate its growth and productivity. The study motivates the research to explore the retailers perspective while using the sophisticated and advanced technology to increase their business profitability by ensuring the consumers satisfaction being attained. 1.1.2 Purpose: To increase the understanding about the strategic evaluation of electronic retailing world in terms of business context is the main perspective of this research investigation. To explore and investigate the mains factors that caused the e-retailing system to have strong impact on consumers behavior in the United Kingdom market. The changes and shifts in the pattern of selling and buying techniques of the retailing system has accelerated the rapid growth in the e-retailing sector by exploring the various internal and external factors is the purpose of this study. The notion of this inclusion in the research emerged from the journal of retailing, volume 74, Issue 2, written by Sirohi, N., & McLaughlin, W. Edward., (1998) A model of consumer perceptions and store loyalty intentions for a supermarket retailer. The psychological perspective of the consumers behavior regarding e-retailing is one of the significant aspect to explore for which Walczuch, R., & Lundgren, Henriette., (2004) Psychological antecedents of institution-based consumer trust in e-retailing [Internet] 6 November, 2011, Information & Management Volume 42, Issue 1 is undertaken in the investigation. These journals developed the strong linkage to explore the consumers behavior and preferences related to adoption of the innovative techniques and services provided by the organizations. It is evident that the organization uses these different tools to generate the customers loyalty towards organizations so that the revenue is generated at the constant high growth rate. The purpose of study includes the exploration of these various elements and how far these strategies of the business assist organizations. The internal environment of the organization is equally important as the external environment therefore the main target is to ensure the factors that contributes to the changes in approach existing in the micro and macro environment is evaluated and investigated in the detail manner. 1.2 Relevance for MBA:

This research has a close link with the Masters of Business Administration because the research investigation is carried out in order to gain the understanding about the strategic analysis in the retail industry of United Kingdom. The main aspect is to generate the information about the innovations in the sector to gain the competitive advantage and expand business to advanced level in the rapidly changing dynamic market. The research is conducted in the marketing field to explore the innovation in the business world to retain strong position in the competitive market. The subjects studied at MBA program were about marketing and business innovations therefore this research is the practical investigation of the theoretical framework provided in shape of subjects in the Management of Business Administration Program. Research Question: Q. Is the correlation between overall consumers satisfaction and the e-retailing system prevailing in the United Kingdom significant or not? 1.3 Aim: To identify the influences caused on the overall satisfaction of customers by the innovation in the electronic retailing system. 1.4 Objectives of the Research: Objectives of the research are for short term in order to gain the aim of the present investigation. In other words, these objectives are set to accomplish the main aim of the study. The following objectives are given below: 1. To investigate the influences of e-retailing on the consumers satisfaction. 2. To execute the primary research of consumers and employees of Tesco supermarket so that the e-retailings affect on their behaviour and level of satisfaction.

3. To conclude the impacts of the e-retailing on the preferences, behaviour and level of satisfactions on the customers engaged with Tesco. 1.5 Scope:

Detail and strategic analysis of the business of Tescos e-retailing system is the scope of the research as it will be beneficial for the organisation to ensure their quality of retailing system and create more understanding about the behaviours of consumers in order to retain strong position in the market. The focus is to comprehensively analyse the e-retailing system from the business and marketing dimensions. Moreover, the factors that drive the organisation to bring innovation in the retailing sector are included in this research. 1.6 Structure of the Report: This is the brief review about the other chapters included in this dissertation. Through this a brief idea is given about the remaining chapters of the research report that what are the main perspectives of every individual chapter. 1.6.1 The second chapter of this dissertation contains the numerous theories and models used by the other researchers in past to evaluate the electronic retailing system. The managements literature is reviewed in detail and the critical evaluation of various empirical researches is part of this chapter. 1.6.2 Research methodology is the third chapter in the sequence of report format. The philosophy of research is explained and the justification of the selection of the style opted for this particular research is provided. The chapter also contains research design, problem, hypothesis, pilot study and the ethical issues attached with the process of collecting data from various sources. 1.6.3 The chapter four contains the results of the primary data collection presented through graphs. It also includes the analytical tool used to evaluate the various environmental factors affecting the chosen case study. The interpretation of findings is compared with the literature reviewed in the second chapter. 1.6.4 Conclusion is the final chapter of research that explains the results of the findings tested through Chi-Test. The objectives of the research are explained under separate headings along with the future scope for the researchers and the limitation of the present research Investigation.

Chapter 2: Literature Review

2.0 Introduction Theories related to the retailing industry and the researches of past are the part of this segment. The main reason behind this chapter is to investigate the answers and solutions for the research question. The aspects of literature review included in research are as following: 1. Evaluate, discuss and explore the relationship of the electronic retailing system with the consumers overall satisfaction in the national and international market. 2. Identify the movements of market in the sector of electronic retail. 3. The linkage between the buyers and sellers is understood in depth. 4. Electronic retail sectors tools and techniques. 5. The division of the e-retails impact on the behavior of consumers 2.1 Theories: Before the theories are evaluated, it is essential to define the literature review, According to Kumar, (2006) literature review is a lengthy process which carries on continuously from the start when the particular problem is identified by the researcher and it goes on till the investigation is over. Following are the steps for the proper execution of the reviewing of literature. 1. In this first step, the previous literature is analyzed in context of the present investigation. 2. In the second step the selection of literature is done that suits the present research. 3. The exploratory framework is formed for the selected literature. 4. The last step is to conceive the conceptual structure for underpinning the research. 2.1.1 Electronic retail industrys continuous growing importance: The e-retail industry has gain more momentum in the recent times as the online shopping has emerged as serious method than casual way. It has created the opportunities for the organization to develop strategies for future. Before it was considered a tool used by marketing sector but now it is the more serious consideration to implement organizations plans in the upcoming future.

E-retailing has provided the scope to the retailers to modify their channels more in the process of continuity. The sales of commodities and services through electronic medium are the basics that are dealt through electronic retailing as per stated by Chan H. (2001), Chang E. (2001), Dillon T.(2001), and Lee R.(2001). The idea of these researchers is that the electronic services are the services that tackle the tangible and intangible goods sales. 2.1.2 Definition of E-Marketing Since the electronic sales are different from the traditional sales therefore the buyers and sellers are also differentiated from the traditional sellers and buyers. The sellers of goods via electronic ways are regarded as the e-retailers and the market of the sellers and buyers formed through internet is known as the e-market. Dave Chaffey on his blog at (wnim.co.uk, 2009) explained that various channels such as web, database, e-mails, and digital TV are part of digital technologies which assist the business to market its product. He further elaborated that marketing activities flourish through these means to gain the satisfaction and retain the consumers by gathering the information about the customers preferences, behavior and values so the need of consumers is identified and fulfilled by the marketers through communication about business. 2.1.3 Online Retailing Online retailing is one of the common models of the electronic business through which the sellers set online stores for selling their products to customers and the businesses. The digital goods are selling by means of internet too. It reduces the time consumption factor and provides for flexibility to the buyers during shopping. But the success of online sells will be high has no pure guarantee despite the brand equity carried by the presence of pre-internet element. The experimentation of buying online the tangible goods could be any level of lacking in standard then the commitment made by the business organizations. Digital Products Physical goods sell thorough online is expensive than the selling online the digital products. Gradually the online selling has gained a momentum and it is expanding more as in the fast moving world, purchasers are more willing to save time and energy by purchasing online. Tangible products

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Through the direct channels commodities like clothing is sold. But customary channels are use to sell goods of digital nature. Considering the example of digital products online sell is the labels of records distribution by the promoters through warehouses and hubs to store it. The postal services will be use to deliver the product/CD which is online booked by consumer. 2.1.4 E-Retailing Electronic retailing has been conceived by the internet as a specialization in the selling technique. The special class of buyers and sellers are formed due to the specialization in the online selling technique. To support the argument, the example of lastminute.com is beneficial as it is a specialized online channel allowing the buyers to purchase traveling tickets, gifts and other entertainment material on the last moments. It is the type of specialized seller for the special product line. The above mentioned example assist us in creating understanding about the innovation of internet forming special type of retailers known as e-retailers and their stores are known as e-stores which provide the variety of products under the single management and the process is called e-retailing. Tesco and Boots are the example of e-retailing shops and at the same time with the e-retailing shops there are e-brokers also who are also serving the purpose of ease to customers. It does not deal in the buying and selling of commodities but help the customers being reached by the sellers. They take orders from customers and place in front of the sellers by using electronic services. These e-brokers offer numerous types of services like shopping, placing orders, and arranging services for parties. The examples of e-brokers include ebay.co.uk, priceline.com and lastminute.com etc. 2.2 Results of Various Empirical Researches Big companies with well established platform engage in retailing like Tesco, Sainsburys etc may get under the influence of web retail system. The concept behind web retail is that these nationalized chains of retailers reduce their physical cost due to electronic mode usage. The statement of Jeff Bezos (2009), the founder and CEO of Amazon.com, is that internet based retail provides more options for the consumer than conventional stores of retailing. The close study of retail system indicates that e-retail has more wide opportunities and is itself advantageous for the customers.

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The quick access to product of services, attaining effortless deal to shop and buy is one of the advantages of the web based retail. Second advantage is that this offers the firms to interact with the specific client and guide them to different parts of website to make their shopping experience more personalized. The effective, well designed and consistent shopping experiences are formed due to it. The immense variety of economical products is advantageous for the online consumers due to the e-retail-s centralized and computerized procedure. Amazon.com is the finest example of e-retail designed well as it is gaining more high ratings for its extra ordinary customer services on frequent basis. This website allows the quick shopping and provides speedy order placing. It also gives guarantee, warranty and assurance to customers after sales with low cost. This has helped this website to be at top in the online shopping sites. For the online businesses through electronic machine, this website is regarded as the online customer services typical model. The dean of the London Business School John Quelch, argues that the mixing of physical retail and online retail can do wonders for units, stores, and supermarkets in the provision of low cost items with the large variety. But at the same time, the sense of touching and feeling is less in the online shopping because hybrid retail help in the formation of social interaction between the buyers and the sellers as it give more chance to both to meet. Although hybrid has this advantage but online system help the units to be more patterned and organized in meeting the need of consumers. Moreover, multiple clients are dealt and it is less costly too. Thus we can say that online retail could develop as the vital aspect in the satisfaction of consumers need through maintenance of high customer services. 2.2.1 The features of E-Retailing: Some of the vital attributes of the electronic retailing are explained below: 1. It assists the clients in attaining their desired product by providing a catalogue about the products and services available online in huge variety. It is the quality which makes it selfmotivated and is beneficial in placing order process. 2. Second quality is that it works as search engine that assist individuals in a speedy way to go through wide range of good available and take little energy to consume of consumers. It is the techniques which was not available in the traditional retailing system.

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3. The other benefit is that automatic updating of prices happen and offers shipping cart online to customers that give more ease factor in the selection of commodities. 4. The e-retailings finest attribute is the marketing, promotions and advertising store layouts. 5. One of the qualities is that digital goods can be downloaded and applications can process quickly in order to get the quick delivery from the online shoppers. 6. E-retailing also is beneficial to searching and browsing the sites. 7. E-retailing helps in the tracking of goods as it update the customers about the delivery and confirms the placements. 8. The customers become loyal to the brands and companies as it create that stickiness features to form strong customer retention.

2.2.2 E-Retail Mix: (Adopted From Emerald Reports) E-Retail Mix defined The net total of all commodities and services to the general consumers provided by the electronic retailer, is known as the electronic retail mix (online shoppers),(Lazer and Kelly, 1961). To understand the concept of e-retail mix in more depth it can be called as the method or approach which is the mixed or combined for the provision of the quality services to consumers by the electronic retailers. In the start of the era regarded as the 20 th century, mixer of Ingredients was used for the marketing person having the reputing job profile Culliton (1948). While involve in the procedures of marketing mix, number of strategies are carried out by the marketers to satisfy the consumers needs and therefore devoting more value to the customers. The Marketing Mix is a phrase that was used by Neil Borden, (1964) of Harvard Business School. But E. Jerome McCarthys (1960) used 4ps in his marketing mix that contains place, product, price and promotion. The top 4ps mentioned above were not founded on any particular theory but it stands of the basis of its demand by the department of manufacturing and simultaneously the practitioners use it to clarify their decision making into more precise and simplified headings (Palmer, 2004). In the similar way, electronic retailers

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also require the e-marketing mix for the foundation of their decision making regarding the customers which are fundamentally significant for success of their business. C1: Convenience for the customer Business always considers the convenience for customer as a significant element to progress more in business. In the marketing mix, Place is a placing technique of product in market where customer can have easy access. This valuing consumer is known as convenience for the customers. It assist the retailers in understanding the level of convenience which is crucial for the decision making related to selection of location that is preferred by customers, the distance is short, parking facilities etc are all part of convenience. For electronic retailers, physical location is essential as it is the one area which is known to customers, they can browse and buy from that location. The location within the reach of customers in terms of geographic boundaries will help e retailer in attaining the trust of the customers. Though people buy online products but prefer to buy good from stores in a direct contact therefore, the e retailers need to focus on the physical location which means practical location and effective place on website as well in the geographic region. It is the main reason that emails and associated links about location is being registered in search engine. C2: Customer value and benefits Another P of marketing mix is Product which is considered as the customer value and benefits because the packaging of the product creates its value and image for the customers as the bundle of various benefits. The e-retailers take the physical product and display it through web as the unique product which narrows the gap between the seller and customers and customers and product too. The customer has a rapid chance to access which is the benefit for the customer. The product selection is the task of most vitality for the retailers and e-retailers to display in effective way so that the specific clientage is attained. E-retailers have one advantage over simple retailers that they can provide wide range of products and services and display them too as physical retailers lack this ability. But the sales have no connection with this fact because the preferences, choices and trends alter the customers perception. The demerit of e-retail occur when customer buy product and seeks help online, he does not have it as much as from shopping in store.

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Due to above mentioned reality, it is clear that online purchases do not give much help and support so it is essential for e-business people to provide exact and detailed description about the commodities because to retain market share, it is essential that customers are given complete details about product by the e-business people. C3: cost to the customers The fourth P of 4Ps of marketing mix is Price and it is the charge that business decides to take from customers in the exchange of providing commodities. The customer takes it as the payment they have to make for attaining goods. The example of cost to the customers is whatever they pay including the transportation charges etc. in case of online purchases, the simple click can be a cost of carriage with the tax levied on purchase. These additional charges are included in the purchase of goods. Even the usage of internet is cost for the customer but the perception of the customer is that online purchases should be less costly then the purchases in physical store. This type of mind set can really upset the customer in deals as the online price quotation may look less expensive and their perception that physical purchase would have been more costly is incorrect in the face of facts and reality. C4: Communication and customer service The final P of 4Ps is promotion which is undertaken as communication that business use as a tool to inform about the features of their product. The feedback of communication helps the business in provision of quality customer services. Retail industry spend huge amount of the promotion of products as compare to the real producer of products. It is a way to communicate the product to the customers and gain the access to their respective feedback. It does not mean that communication is just the advertisement but it is the process of enhancing the loyalty, public relation and brand information. The communication done by eretailers these days are through electronic mails, online advertisements etc. but the issues related to e-retailers way of promotion is that it sometime fails to recognize emotions and true feelings while selling product because people cannot feel the product while purchasing online. This drawback has generated the challenge for e-retailers to meet the consumers

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choice in the fullest manner. On the other hand, the physical retailer has more chance to understand consumers emotion due to face-to-face interaction. The atmospheric behavior can be used by the physical retailer to offer pleasing experience to customers. One technique to develop for online purchaser the pleasant online shopping atmosphere is through web ambience. It is a way by which e-retailer try the soft music or 3D visual displays to promote product by means of pleasant atmosphere. Retailers are doing pretty good work in the area of improving customer relationships particularly TESCO (tesco.co.uk) has a clear lead over other retailers. Customer relation is linked with the emotional attachment therefore related with the emotional selling. The physical retailers use verbal as well non verbal communication to sell product and has more opportunity to increase the value of goods in emotional terms. In recent times there are positive suggestions for the development of retail mix as 4Ps and 4Cs are almost identical and essential for the success of retail business. To further elaborate it, McGoldrick (2002) suggested that mix of 9 elements. Brand image, logistics and information are included by him in the frame of 4Ps. Though these elements have their significance but wide number of retail mix does not consider it more appealing as 4ps or 4cs elements of marketing mix. Due to this, the formation of customer care, customer services, and customer outlets are 3Cs included by e-retailers to form 7Cs. Due to integration of these additional 3Cs e-retailers offer its customers more value added benefits. The critical analysis of 7Cs show that these above mentioned 7Cs has identical features to 7Cs of Kearney (2000) in order to create excellent experience for customers to have electronic shopping. Kearney (2000) included the different Cs such as communication and customer care, content and customization to convenience that are discussed in the customer value and benefits. C5: Computing and category management issues The choices of consumers are getting more and more diversified due to the production of goods and services on new scale and new technology. Due to this, it is essential for every single electronic retailer to make the availability of goods or services to its targeted customer at precise place at precise time. The methods have changed for the provision of goods and services and the era is the provision of commodities on the basis of consumers demand

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because previously retailers have control over the process of supply chain, which they still do have but the logistics are more involved in the process. These logistics has established the relation between the retailers and retailers to be stronger due to online supply chains regarded as electronic data interchange (EDI).

Huge retailers have more efficient logistic system that contribute to its success, for instance Tesco has centralized computer based logistic system. But some organization has seen the issues of being deficient in logistic system controlled by computerized system due to more focus on the advertisement and promotions. Amazon.com is correct example to show that how logistic system is controlled in effective manner because it has structured system in effective way through excellence in the customer care and customer services. Amazon is utilizing its logistic ability to deliver services for physical clients in United Kingdom, such as WHSmith (www.whsmith.co.uk) and Toys R Us (www.toysrus.co.uk). The telemarketing and selling of goods in direct mode is more by Dell, carrying out since mid 80s through website (www.Dell.co.uk). They set the trend for other competitors to sold products without having the direct face to face interaction with the customers. Therefore, it is regarded as the true leader of hardware market and also stands as the first electronic retailers in the hardware. C6: Customer franchise Creation of the constructive and positive image of the business is vital for the business. In the search of positive image most business concentrates on customer services and the provision of the quality so that they can be more successful in accomplishing the set targets in the market. The building of trust and improving the overall image and value of product, the word use is customer franchise. It is correctly said that retailers have steady their progress by becoming the retail brand managers from the simple merchants (McGoldrick, 2002, deriving support from Kumar, 1997). The outcome of this has created the long term mark by the physical retailers to have more quality brands supported by distinguish celebrities. McGoldrick (2002) also argues that the trust of retailers is one of the main issues due to the huge choices are in the market, strong

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attachment and loyalty to only familiar brand which make it more difficult for the new product to create its strong impact on the market. C7: Customer care and service Usually similar type of goods and services are offered to customers by electronic retailers what are offered by other competitors. Previously service industry is the term used for the retailing sector but with the improvement in the techniques of selling, it has provided more excellence in quality of services and products in recent times (McGoldrick, 2002). From broad perspective, the service provision to customer is prime activity of the retailers therefore in consumers satisfaction a significant part is played by retailers. The quality services by the electronic retailers are the excellence in the provision of services, prompt and speedy delivery on precise time to customers, assisting clients on telephone, and facilitate customers for refund and returns. In the beginning of e-retailing, e-retailers were not very effective due to which customers had to experience bad quality. Whereas the image and reputation is concern, the personnel of stores play vital part. For creating quality image, billboards, chat rooms on websites, and arranging telephonic interactive sections are used by e-retailers to make positive perception of customers. In short, to be a successful e-retailer the online shopping should be make easier, less time consuming and fun for customers. 2.2.3 Process of Internationalization Corporate Intelligence 1991 revealed the statistics that in the period of 1980s 654 example of new marketer entrants in 16 European countries whereas in previous decade that is 70s the number of entries were 182. Though internationalization process is expanding but facts reveal that local markets are generating more revenue, for instance Marks and Spencers is considered to be the leading retailer in the United Kingdom but generate only 14% from international market every year. In recent times, improvement in the fresh markets or invasion of domestic market is the main concentrations of the process of internalization. The flow of creative ideas, exchange of information and expanding boundaries has affected the methods of business more than ever because of gradual changes in methods (Burt 1994, and Kacker 1985). But on the other hand, the international retailing is defined by Lamey (1996) as it is an investment of huge level that gives no surety of return. But the process of internationalization of retailing has exceeded and expanded more nowadays.

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2.2.4 International development positions Numerous styles of methods have emerged in retailing for the Multinational companies due to the process of internationalization. Treadgold (1991) describes internationally renowned markets such as Benetton is entirely different in its format from the other in the national circuit therefore able to generate revenue on large scale but it lacks a focus on the domestic one. But some of the multinationals have little success with combination format to gain success in business. There is one more retailing that lies between these two extreme regarded as transnational retailing. In such type of retailing, the firms focus on attaining the competency at international level and simultaneously not ignoring the national issues, opportunities and needs of local customers. Marks and Spencer is the example of transnational one as it focus on the international market but at the same time focus on the improving ways to gain national market competency. 2.2.5 Trends in retail internationalization In the retail world there is complexity involve more these days as there are more trends to have high segmentations, amalgamation and competition. This is more popular in the European countries but even though these trends are existing in the sector at great level still there are various differences prevailing in the enhancement levels inside varieties of countries with traditional retailing like Greece and Portugal to the advance retailing of Germany and United Kingdom. Trodjman (1989) discusses that Europe has developed in methods to a great extent in last three decades. The business-related products in these European countries have developed to more proficient level due to these changes in order to cope up with the changes in markets and the business environment. Furthermore, to economically prosper more, the traditional retailing is over taken by the well organized and modern methods of distributions. This can be concluded from the discussion that business structure of the European market has changed due to the advancement in the environmental factors. 2.2.6 Strategic Dimension Salmon and Tordjman (1989) identified three distinct types of strategies in the market by the players and its approaches with the strategy of inactive partner investment. The prime focus of present research investigation is international attempt to explicit the retailing in international era. The successful imitation of the wide concept of creating a strategy to

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market homogenous product in the international market by avoiding the local differences is essential for strategy formulation. Whereas, the approach of multinational substitute approach is one where the subsidiaries of the retailers are counted by them for the geographical dispersion of business, according to local conditions the strategies are formulated so that standards are maintained by the business at local level. Williams (1991) strongly argues that differences of strategies in firm is advantageous for the process of internationalization and suggested that four essential sources like large scale retailing, professionalism and skills related to retail marketing, reputed brand, and concepts of different type related to retailing. Vida and Firhurst, (1998) have viewed the internationalization perspective as they suggested that the internal environment will give birth to the process to gain momentum and even lead to influence the decisions where the countries can be evaded. These decisions that arose from the internal environment may alter the operations of macro domain and tentative planning or even the execution process. 2.2.7 Consumer Behaviour McGoldrick, (2002) consumer behavior is essential for all the retailers to fully understand and respond accurately. The shifts of patterns and trends that are visible in all sorts of markets have affect on the consumers and these effects may vary from customer to customer and even country to country. The consumer behavior is the indicator of demographic type as well as socio-economic type as the statistics of official national type are shown through the variation in the consumer market. Various types of elements frame the consumer behavior, such as consumers buying power, social and physical characteristics, relations in production and the methods of consumptions particularly prototype enhances the scope and diversity on the conditions of market (Gist 1968, p.85-86). By the numerous types of the characteristics prevailing in the different societies may affect the system of retailing. Considering the example that there is gradual decline in the orthodox methods of stores and the inability to cope up with the changes in the environment, it is essential to consider the consumers consumption patterns. Few of the changes in the behavior of the consumers are very beneficial and motivating one for the some retailers and vice versa (Advances in Consumer Research; 1987 Vol.14 Issue 1, p439). The frequent notion of the income may appear pleasing to all but the unequal distribution has

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contradictory outcomes on various combinations of consumers features. Therefore, the impact of the consumers characteristics have varied impact altogether due to numerous accurate and historical conditions. As Ohmae (1998) pounders that strategies are not designed to simply outclass the rivals, but it is framed to fulfill the real needs of consumers. In the support of given statement, the opinions of the great Sun Tzu (500 BC) are included as cited by Ohmae 1998: The best approach in combat is one to assist you in attaining your objective, without mixing oneself into fight. The huge battle in the retailing world is strategies through strategies of prices, promotions, advertising etc that are also visible to the marketing world. But the invisible part of the battles is the searching ways to enhance the consumers satisfaction in the best possible and effective manner. Chenet and Johansen (1999) enhances the self actualized customer concept in the way; We no more purchase the commodities and services in excessive manner but purchase that product or services which is chosen by the self identity experiences and uniqueness. These means that such consumer do not buy what is offered more and more but opt to buy that is based on their experiences and that is identified by themselves as the fulfiller of their respective needs because the concepts and experiences are providing distinct requirements. The observation by Meyers and Eagle (1982) suggest that the choices made by the consumers are not based on the observation of how fine are the various substitutes to fulfill the utility through multi features. The selection of the consumer is based on the repeated experiences of past and the changes that make them stick to that product or services. Yankelovich (1964) take in account the demographic features are needed and opinions about these natures of segmentations. He also argues that differences in the attitudes of the buyers, consumption patterns, taste and preferences and inspiration are some of the significant differences under which the market need to be examined in detail. Mittal B. (2005) suggested that the understanding of the variations among the electronic retailers is vital to find as it is the essential inclusion of the segmentation. As evident that eretailing is the fresh channel for the shopping so it is significant to comprehend and do the categorization of the segments of the consumers and the sub divisions that are prevailing in the electronic market. Rohm and Swaminathan (2004) discussed that four types of intentions of the customers or shoppers whether online or physical purchases and that are the overall

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convenience or ease, stores physical nature, usage of the available information in the planning process and executions, and finally wide range of collection seeking. Due to the study of Rohm and Swaminathan (2004) the view of customers segment emerged as of four types such as buyers of well-adjusted type, shoppers who seek convenience, shoppers of store-based, and seekers of variety. Shoppers who seek convenience are mostly the frequent users of online methods of shopping. Whereas the shoppers of store-based are one who wants quickly access to product and therefore, admires the social environment existing in the physical stores. It is also very obvious that these kinds of shoppers would score less in online shopping. The other type of the customer is the seekers of the variety who have more desire to try new brands, freshly launched products, new stores and in order to seek more variety could opt for the online shopping channels too. The well-adjusted buyers are group of people who can try either way; they might opt for the variety, convenience, balance approach, or store-based shopping. Customer Satisfaction Reichheld (1996) states that relational strategies and building trust to retain customers are due to the provision of the satisfaction at frequent intervals. This referred to the view that The key to retain the loyalty of customers is through increasing the consumers satisfaction, it is the sound philosophy in the marketing world. Buttle (1997) argues that gratification and the satisfaction is not always leading to the retention of the consumers and similarly the dissatisfaction of the consumer does not always lead to defection. It is the usual perception about the consumers that the emotional attachment will form with the place and methods of shopping therefore the investigation chances are below considered supply where there are less emotions and passions. Hence in any model of consumer satisfaction, there is requirement of the scope to distinguish the real vendors and the behavior of the simple customer regarding purchases and its recurrence. Unfortunately, these two mentioned above are not much included in the prime studies about the consumers. The satisfaction of the person that emerges from the inside could be serving the foundation for the loyalty especially when consumers put more efforts to gain the best deals but on the other hand, opportunity cost is one of the situational drives that may affect the loyalty in the negative mode. Because of this it can be stated that when there is

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no requirement for such efforts than satisfaction has very little to offer or even no part to play. Buyer-Seller Relationship The effort to utilize the contingent methods and techniques for the marketing relationship, it is essential to create understanding about the reasons that drive the consumers to develop approaches for the maintenance relationship (Bendapudi and Berry, 1997, p31). The marketing literature about the relationship offers the view concept known as customer retention orientation which is altogether a new concept. But this new concept is conceived on the related ideas of relational selling behaviour from the perspective and context of a customer-salesperson relationship (Beatty et al.1996; Crosby, Evans; and Cowles 1990) along with the market orientation perception which means that the events of built strategies focuses on the provision of the highest value of customer orientation. The notion of the retention of the customers has gone across the boundaries of restricted scope of efforts by the salespersons to commence the examination of the relational selling behavior is the first of all considerations. Next, is the assessment of the quality relationship among the store and the consumers and the level to which the consumer relationship will be involved, though the customer retention orientation will be monitoring the quality of maintained relationship and the factors involve in the process of its determination? Third is the view point of the customers on the foundation of the customer retention orientation. Customer Relationship Management (CRM) is another concept that is discussed as the main objective of the CRM is to give equity of high level among the customers. The general observation is that high will be the consumers equity if consumer become more reliable. Customer equity is driven through three factors and they are value equity brand equity and relationship equity. The value equity is further divided into quality price and convenience. The program that can assist in improving the value equity is the effort of the entire industries to figure out the real factors involve in the each sub-drivers. The consumers equity prevailing in the business and the economic market is one of the vital features of the value equity. But in case of the brand equity it is not visible and brands assessment by the subjectivity of the customer. The assessment may exceed beyond the visible value at the empirical node. Awareness about the brand, positivity of the consumer towards particular brand, and the tools of communication are some of the sub drivers of the brand equity. Since

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brand equity is more expressive in nature due to its less differentiation product, it is most valuable and significant drivers among the other drivers of the consumer equity. Finally the relationship equity is the attachment of the customers with the particular brand and in this consumer equity the assessment of the brand is more exceeded by the consumers in terms of values. The sub drivers of the relationship equity is loyalty programs, special acknowledgement and management programs, community building programs, and knowledge based programs. Those customers that believe in the continuity with the particular supplier or retailer due to their habits and consideration of the personal relationship view relationship equity as the crucial factor in their dealing. 2.2.8 Competitive Analysis To attain the lead over the competitors is one of the prime objectives of the strategizing the movements in the business. Peteraf (1993) has identified four key components for the attainment of the competitive advantage. These keystones are to shape the business to achieve the edge in the market or industry and they are (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 essential that industry and market should be divided 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 (Peteraf, 1993). These will ensure that sustainability is attained and the advantage over the other competitors is gained in the most efficient way. Thus, it can be said that competitive advantage is to be at the upper hand in the market over rivals or for the certain time period hold the position at top to be unequal in the market. As evident that the possibility of attaining the sustainability in the market at short time is possible through competitive advantage but in the long term there could not be competitive edge over others for long time. To speak in more general manner, the competitive advantage evaporates automatically in the long run as compare to short run. The evaporation of the competitive advantage occurs due to two reasons, (1) changes in the ways and patterns which redesigns to form a broad advantage for an industry (2) Lack of protection in the long term provide the opportunity to the contenders or competitors in gaining edge as an advantage. Because of these two characteristics the competitive advantage becomes out dated factor. On

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the other hand, Grant (1991) says that four factors that can influence the sustainability are (1) durability, (2) transparency, (3) replicablity and (4) transferability. sustainability. The organizations should consider any of these four factors to influence their advantage through

2.2.9 Innovation The high technological advancement in form of internet is the fabricated revolution in the retailing world which is regarded as e-retailing. Christensen, (1997) differentiated between the sustaining and disruptive innovation in a unique manner. The division is due to the impact of innovation of the consumers benefits. The escalation of the customer benefits through improving the quality performance viewed by present consumers in a pleasant manner is due to the sustaining technology. On the other hand, the manipulation of the qualities of the product does not get value from the customers at present so decline come in the quality of the product is changed through disruptive technology. Hence, the formation of customers new group is more utilized by means of disruptive technology. Another difference can be made between incremental and radical innovations (Henderson and Clark, 1990). This portion tackle the changes in the production process of product which means that the changes in the key elements of the product is regarded as fragment to perform the particular task that is also well defined. The particular method of designing the system components are known as architecture. The architectural configuration of new type consists of newly reconfigured concepts which are the key feature of the radical innovation. On the other hand, the incremental innovation differs as a current design being improvised by distinguished features. Nevertheless, for the improvement or development of the program, the aim is kept at sustaining innovation and differentiation on the basis of incremental innovation. It gives rise to a question to electronic retailings applicability. Still there are means through which innovation can be categorized to be applicable for the e-retailing. Both retailing and electronic retailing is not product of physical nature but they can be viewed as services offered for the consumers. In the innovation process, the features of the retailing services

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such as prompt delivery, convenience and price could be altered. It is the general notion that retailing services contains the elements representing the real concepts in the structure. To conclude it, this can be said that e-retailing could be the applicability of sustaining and radical in order to find out the factors range for the success of retailing and attaining competitive advantage.

Strategic Perspective No single theory of economic on attaining the competitive advantage can be defined in more precise manner. Unified Theory of Everything in physics is one approach that is similar to that as there are various strategic groups that answer the reasons from distinct perspective. The competitive advantage cannot be viewed or studied from just one perspective as there are chances of missing out on the important points if only single theory is considered. Hence, in order to view the competitive advantage in more detailed and in depth six strategic perspectives with their techniques in the formation of the competitive advantage is examined here. Brand Perspective Kotler (1997, p.443) stats that more than a simple logo or name is something called brand. A term, sign, symbol, name, design or the amalgamation of all of them that has intention of exploring commodities or services of one trader or group of traders and to distinguish it from rivals. Competitive advantage serves the basic foundation for the brand equity and brand extension. The perception of the customer about the brand is represented by the word brand equity. Keller (1993) explains customer based brand equity as the impact on the past knowledge of customer regarding brand in the process of coming across new marketing efforts about that brand. The profit margin can increase, price can be more flexible, customer can be pursuing more, and more intensification on the communication process of market due to the positive brand equity sustainability. It is the enhancing probability of choices in the selection of brands from the view point of the company. Therefore, the loyalty of the customers increases to a greater extent.

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The two distinct dimensions of the bran equity are due to the memorys associative nature. The two dimensions are (1) brand awareness (2) brand image. Brand awareness or brand responsiveness is regarded as the ability to identify the brand on its strength. Those who control the awareness about the brands are vital in the setting of choices and in the decision making process. There is the probability that the brands selection can be influenced due to set that is very well thought and planed. This is mostly occurring due to choice involvement at low range in the resulting of fine decision founded and established on the appropriate bases. There is also the fact that new associations of brands can even be affected by the chances of brand awareness. The collection of various associations that is being offered to customers in shape of brand is known as brand image. The categorization of the association could be on various types of advantages, culture, and norms. Furthermore, the advantages and disadvantages along with their respective strength and weaknesses affect the levels of these various associations. The formation of the association is vital for the development of strength. After this, the maintenance or the management is essential. In the other words, encoding is crucial, followed by storage. The importance of having an association for the decision of the favorability of consumers is crucial for deciding matters though the importance could be situational sometime. Moreover, the brand should be placed as unique from the competitors. The competitive advantage or the brands uniqueness is the driving force for the consumers to opt for certain product or services. The significant quality of the image is its cohesiveness. The consistency is important for the marketers to operate with their brands in the market. Brand Extension It is the procedure involving the data or information about the product and conveyed to the customers in adequate, effective and efficient way through the basic products or services ( Keller, 1993). The prolonging of the current product by extending it through branding process is the main logic at the back of opting for the brand extension. Due to brand extension the more room is created for the new or fresh product or services in order to follow the brand equity prevailing currently and the outcome of it is spreading the awareness and associations at conditional levels.

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There are numerous ways in which the examination of the customer is possible. One way is that on the availability of the information that comes in mind serve as a base for the evaluation of the customers. The second way is relating it to the rivals brand image, for instance the gathered information about the particular product and services are perceived that how positive it is in comparison to the brands offered by the competitors. Due to the competitive advantage the extension of a brand does not only influencing the services and products of new types but also assist in generating the feedback for the services or products offered in market. If there is complete likeness and acceptability between the core services or products and the extensions than the affect would be constructive and positive in such scenario. Another possibility is that a brand can even get thinner due to brand extension. The unlike products and services could even get diminish earlier than expected from the market if the owner entirely change the associative meaning of brand due to extension and modification. In various ways, electronic retail seems to be identical to mail order services because the same procedures are followed by the customers as they do take in the retail. Though, e-retail has more to offer to the new customers due to its qualities and features. Few of the noticeable merits of e-retailing are the ease of access, wide acceptability, quite reliable, and the information is usually updated. Despite these advantages, there are not much lively hopes for long forwarding. Even then, these advantages are not major hop forward. Consequently, there are no possibility to check the goods or feel them as it is the major advantage of physical retail over e-retail. To sum up retailing has strived more towards advancement in the market with well establish players in various segments but there would be more years to work out on the creation of the strong branding and the value chain to retain ability of competing in the market of retail. For the primary starts, it is advantageous in the strategic mode especially in the branding as it is the immense value-driver in the sector of electronic retailing. It is essential to fully comprehend the new business terminologies, methods and concepts by the electronic retailers to gain more prominent position in the market for the creation of the value chain. The value chain contains the core competencies, units and organizational performances and roles, and inclining need for the communication among the different entities. The correlation of the brand and the huge challenges in selling of product especially the physical goods online or

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through internet is vital to understood in the overall understanding of the e-retailing methods. For this purpose branding is vital as it contains the ability of placing products in the right framework along with the foundation of fashion taste and feelings. Because of the brand knowledge some time the e-retailers business is more expensive due to the amalgamation of the huge cost and advance technology. It is considerable that from the domestic context, the access to most customers by e-retailers is more practicable but the major problem attached with the e-retailing is the compromise on the quality. Therefore, it can be concluded that focus on the brand and understanding the concepts of branding is essential by the e-retailers. The issue of creating the permanent image of the e-retailing is also the crucial one.

Chapter 3: Methodology
3.0 Introduction This part of the research study is to provide details about the tools and techniques adopted by the researcher for the present research investigation. The selected course of action and intentions are supported by the logics and reasons along with the philosophy of the research. The approach, method, styles, data collection, analysis, pilot testing, and ethical approach towards research are the main topics of this chapter. This chapter begins with the research philosophy, followed by research design, style of chosen research, hypothesis, data collection techniques, analysis of the collected data, the pilot study to ensure the credibility of the respondents and ethical considerations. At the end of the chapter, the summary is given about the main highlights of the entire chapter. Zikmund, (2003) described the business research as the detailed process which is the master plan for the researchers to gather data in systematic manner, record and do the analysis of data for making decisions about business. The basis of research information is not gathered randomly or using intuitions but investigating facts in depth. In actual manner, research is indeed the searching again for the objectives in the detail and systematic manner. 3.1 Overview of Research Design: 3.1.1 Philosophy of Research:

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For every type of researcher it is essential to fully understand the philosophy of research as it helps him in the planning of the research design to carry out the research process. It is also evident from the research onion that for researchers numerous types of research philosophy is available. The figure shown here is to show the research onions illustration and complete diagram cited from Saunders et al., (2007).

Figure 3.1 The research onion

Source: @ Mark Saunders, Philip Lewis and Adrian Thornhill 2007

For the present research investigation, the approach selected for this research is interpretive approach so the research philosophy is interpretive research philosophy. For the researches conducted in the business management studies, this type of research philosophy is more ideal one as it show the qualitative perspective of the research and in business researches only to have the quantitative approach is not ideally enough approach (Cepeda & Martin, 2006), in addition to this, the sample size of the research is small one therefore considering the sample size, interpretive approach is more suitable because respondents are being interacted more closely by the investigator in small sample size (Shaw, 1999). Beside this, one of the benefits

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of this approach is to gain the feedback from the consumer in subjective manner to reach to the answers of the research question (Saunders, et al, 2007). To conclude it, this can be said that such research approach is investigation of the facts and reality in subjective way which means respondents are participating in the investigation by providing details about their intentions, feelings, views and actions. 3.1.2 Research approach: Qualitative and quantitative research approaches are also known as the inductive approach and deductive approach and these are the two main types of the research approaches. Inductive is qualitative and deductive is quantitative by nature. The initial consideration for the present study was deductive approach but small sample size of the research convinced the researcher to opt for inductive approach. Inductive approach is the researchers approach because of the small size of sample selected for the study. The chosen style will be more appropriate for the researcher because it will be beneficial to study in detail the respondents of the selected organization. Due to this approach, researchers can interact more in depth so it is significant for the respondents to have a clear and transparent idea about the research purpose so they can provide accurate feedback and what they think in actual about the variables of the research (Hannabuss, 1993). The findings can be tested by the researcher through statistical tools as well compared with the theoretical framework in shape of available literature and previous empirical researches because of the approach being inductive so it can allow researcher to investigate in more detailed manner (Patton, 1991). 3.1.3 Research strategy: Numerous types of the research strategies are combined together for the present study as the research itself is co-relational study. The strategies are mixed because of the limitation of each strategy alone therefore more than one strategy is adopted for the present investigation and these strategies include case study, close ended questionnaire and semi-structured interviews. The case study of the research lies within the boundaries of the United Kingdom as the field of research is London so it is crucial to compare the experienced problem of the selected organization with the other firms through case study analysis (Bonoma, 1983). The

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responses from the sample size are used to generate the actual situation prevailing in the market. 3.2 The process of Research: The process of the study at hand is mainly circulating through the interviews and the questionnaire as the questionnaire for the investigation is written in the English language so that it is understood by sample size and it is administered by the researcher himself. The feelings, responses and the views of the respondents are the products of the personal experiences and to investigate the quality of it, qualitative approach is designed as it assists researcher in the close interaction with the respondents by finding out the actual problem from the inner side. The interpretation and the finding analysis are done more conveniently by research when he knows the problem form inside. By the helps of the questionnaire, the things are felt by the researcher in numerous ways (Schwartzman, 1993). At the mid and preliminary stages of the research, the researchers included semistructured interviews to gain more understanding about the research problem. The interviews were conducted one-to-one with the managers of the outlets of Tesco. The feedbacks from the respondents of the interview were attained in person. Before the timing of interviews was decided, the formal emails were sent to the participants of interview by explaining the purpose of the research. For approximately 20 minutes the three different outlets managers were interviewed. The interview questionnaire was open ended so that managers can express their view points in more detail manner. The survey questionnaire is structured and close ended containing ten questions from the sample size of 15 employees and 15 consumers. Therefore the total of 30 respondents was chosen in the research to represent the large number of the population to express their views about the impact of electronic retailing on the level of satisfaction. The small number of the participants involves in this research make it not ideal to schedule the circulation of the questionnaire from time to time. Instead of doing so, the questionnaire was circulated only one time and managers were also interviewed in the same visit. 3.2.1 Primary research interviews: At the early stage of research findings and analysis, three managers of Tesco distinct outlets were approached through emails by the researcher to inform them about the

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purpose of the study. It was done in order to make them agree to participate in the research investigation. The prime objectives and the ultimate goal of the research study were explained through first electronic mail sent by the researcher. Later the participants were telephoned to take appointments once the respondents agreed to participate on the interviews. Timescale, methods and techniques to gather information, and ethical consideration to the participants were explained on telephone calls. These calls were made to make sure that the confusion of the participants are erased by asking them to question anything, which they think has remained un explained. The acquaintances on the telephone made the researcher to create understanding about the credibility and validity of respondents responses as experiences, educational backgrounds, and know how about the electronic retailing system installed in the outlets and the consumers satisfaction knowledge was gained this way. Furthermore, brief details were discussed about the semi structured interviews designed to generate information related to research problem. The managers were interviewed by the researchers on the following dates: Manager one: 17th October 2011 at 2.00pm local time Manager two: 10th October 2011 at 5.00pm local time Manager three: 19th October 2011 at 2.00pm local time The interview questions were open ended in order to make the respondents share with experiences and views about the business and marketing world. The responses of the participants shoed a quick reflection about numerous types of issues connected with the eretailing mode. Electronic retailing is the vital step for the increase of consumers satisfaction. E-retailing system assists the organisation in increasing the profit margin as well in the enhancement of the level of satisfaction of the consumers. Online retailing is to provide the ease for the consumers for choosing the product from the wide range of choices.

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Electronic retailing at Tesco helped it to increase its market reputation. Consumers satisfaction is a key to success for Tesco therefore online retailing is adopted to ensure that consumers are more satisfied with the services and products of the company.

3.2.2 Research Problem This research is by nature applied research therefore it is based on the problem which is not being solved previously therefore considered as unique or problem. Since the researcher is conducting applied research so determination of the problem along with the identification of the problem is vital for the research purpose. As the study is about the strategic analysis of the e-retailing industry of the United Kingdom so we do not know before this research that quality of the services of e-retailing for the consumers are the main reason for affecting the total consumers satisfaction. It is not known that wither the environmental factors are the reasons that affects the overall satisfaction of the consumers. In other word, we can say that the research problem is that the unknown reasons that is influencing the retail sector of the United Kingdom/

3.2.3 Hypothesis Hypothesis was assumed before the commencement of the research. It was assumed as the researcher needs a foundation to carry out his investigation to apply numerous types of techniques for the investigation. In other words, to make a platform for the research, hypothesis or hypotheses are generated by the researcher to test the final finding. For this study the hypothesis is that: The correlation between the overall satisfaction of a consumer (dependent variable) and services of electronic retailing (independent variable) are strong or not? 3.3 Data Collection: Numerous types of themes are explained by the semi structured interviews (Wass and Wells, 1994). A significant technique used by the researcher to explore the personal point of view of the respondents was the usage of the open ended questions. But in the survey questionnaire, close ended questions were assembled so that the facts are confirmed with the surety and the information is categorized and undertaken in the precise way (Saunders et al., 2003).

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Each participant interviewed in this study was 20 minutes approximately and these interviews were recorded by the interviewer through digital media recorder. The outlets of Tesco selected for the study was used for the purpose of circulation of the survey questionnaire containing questions about e-retailing services and the overall satisfaction of the customers. The questionnaire was circulated among the respondents by the researcher himself. 3.4 Sampling: Since the research is conducted in three different outlets of Tesco therefore on the basis of stratified sampling techniques, the respondents are approached by the researcher. The benefit of this type of sampling techniques is that results of the findings are generalized easily (Bartlett and Kang, 2004). The selection of the respondents is done through the technique of convenience sampling because it involves consumers as well employees so those who were willing to answer were taken in the sample size. 3.5 Data Analysis: Analysis of the data is sorted through the technique of Chi-test because the research approach was qualitative (inductive) approach. For the present investigation, the analytical framework was developed though it and the coding technique of the answers are done in the exact manner as previously done by Parker and Coffey (1997). Interpretation of the data was carried out by means of excel spreadsheet. The 3D representation and sorting of data is through spreadsheet of excel 2007 version. As the approach is inductive therefore the appropriate way for insertion of codes for interviews is through word processor (Harvey, 1990). 3.6 Pilot Study: To ensure that the respondents are reliable and they do understand the questions properly, the pilot testing is carried out by the researcher with the few participants before circulating the questionnaire in the total sample size of the research. This way, the validity and the credibility of the participants are checked also by a deliberate attempt. The material related to models of e-retailing and consumer satisfaction was explained to the three different formed

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groups containing four respondents. Kano model of consumers satisfaction (1984), Smith, Ruth and Wagners model of customer satisfaction (1988), and E-business model by Richard Thrombly (2000) was distributed among the participants to inform them about the importance of consumer satisfaction and channels of e-retailing. In addition to this, the pilot testing was to ensure that participants understand the questions properly and answer the questions in the correct way. For pilot testing, employees of the organization were selected on the basis of convenient sampling. As we know that for the precise and correct findings it is essential that the researcher is convinced about the validity of the responses so this was vital to conduct the pilot study. And for the checking of the credibility of the respondents, their past experiences and educational background was checked by means of demographic description in the first part of the survey questionnaire. To ensure that the questionnaire is filled out properly and the feedback is given in the right way, research himself administered the questionnaire.

3.7 Research study limitations: One of the main limitations of this research design is the sample size itself. Since there are not much of the respondents are included in this research investigation therefore the finding of the present investigation lack the factor of generalizability. Only 30 respondents and three managers are the part of the sample size so the findings remain only for the study at hand. It cannot be a general finding for the overall retailing sectors. In the pilot testing researcher only provided some of the models about the consumer satisfaction and electronic retailing which is in actual the brief highlights of the detail and exploratory work so most of the details were not provided to the participants which leave us with the large possibility of unclear participants. This means there might be few respondents who had not understood the models to a great extent. The problem of the quantification is considered as a limitation because the qualitative data could not be easily interpreted in the meaningful form.

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Shortage of time is the huge limitation for the current investigation as the approach was inductive so most of the data and materials were included so including and extracting of the data was one of the vital task and time constrain urged the researcher to only include some of the information which means the personal observance of the researcher has influenced the data selection in the research. 3.8 Ethical approach: The ideas, views, and the information undertaken by the researcher from the various sources is essential to be maintained and used by the researcher for the research purpose only so the ethical consideration of the researcher is to provide assurance to those individuals who ha vested trust in the researcher by sharing the information and details. In other words, the confidentiality of the respondents is kept by the researcher especially in the interviews as it is qualitative approach and interviews were carried out in which views and information was provided to researchers. The researcher kept the interview results under the title of anonymous. 3.9 Summary of the chapter: This subheading of the chapter shows that what has been studied and discussed in this chapter. It talks about in the start the philosophy of the research that is considered by the researcher and leading to the adoption of the method for executing research. Than the research problem and hypothesis to reach to the centre of the problem is discussed and how the sources are managed to gather the information related to the research problem. The credibility of respondents are discussed under the heading of pilot study, followed by the research limitations that came in the way of executing the research to more higher level. The ethical consideration by the researcher is discussed in the last part of the chapter to maintain the standards of research on the ethical grounds.

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Chapter 4: Interpretation, Finding Analysis and discussions

4.1 Introduction: This chapter contains the interpretation of the questionnaire and interviews conducted by the researcher from the sample size and on the basis of sorted data, analysis and discussions are made in context with the critical appraisal of the literature included in this research study. The first part of this chapter has discussions on the basis of interviews conducted from the participants. The second part has the graphical representation of the data generated from the survey questionnaire and it is analysed with the past research findings. In the last segment statistical tool SWOT is used and Chi-test results are included to test the assumed hypothesis.

4.2 Interview results:

4.2.1 Question one: Is Electronic retailing the prime and significant feature for customers of super market? Manager one: Yes, to certain extent it is important feature.

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Manager two: Those customers who prefer shopping online from the super markets will view it as prime factor and for that reason the form will try to provide such services to gain edge in market. Manager three: It is one the significant factor but it is not the only factor for the customers of the super market.

Discussion: From the views of the three different manager, it is noticed that to certain degree it is the significant factor for the customers of the super market but by no means it is the only essential factor, there are other factors also so it can be said that those consumers who want to save their time will use it more as they perceived it more important factor. This we had also viewed in the literature reviews also that Dennis and Merrilees, (2004) argued that home oriented consumers will prefer more the services of e-retailing because of its ease and convenience. 4.2.2 Question two: Is innovation the competency factor for the company to influence the behaviour of the consumers? Manager one: Yes, indeed innovation is one of the competencies of Tesco to affect the consumers behaviour because it creates the brand image. Manager two: In general, innovation is a competency by every mean and when we talk about Tesco than it is automatic influencer of the consumers behaviour. The advance technology helps the consumer to fine level which increases customer satisfaction. Manager Three:

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Business is all about taking care of customers, when business is more innovative, it will prosper more because brand image will improve so innovation is included in core competencies of firm. Discussion: It is essential for business to have innovation as one of the core competencies to attain competitive advantage in the market. It assists business to have a strong brand image in order to distinguish the company from rivals and at the same time influence the behaviour of the consumers. The findings of the interview is similar to the views of the Mithal (2005) that consumer behaviour is influenced by the new methods of e-retailing and Christensen (1997) that innovation help the organisation to create its strong image in the market. 4.2.3 Question three: Has the e-retailing services helps the organisation in attaining the competitive advantage? Manager one: This could be said that yes electronic retailing give the advantage but nowadays most of the firms offer same services so its not the only factor for attaining the advantage. Manager two: If the question is it helps, yes it helps but helps only to certain extent because all the big players in the market is providing the e-retailing services not to gain competitive edge but as a need felt by the organisation to match the consumers behaviour. Manager three: Of course it has helped the organisation in gaining competitive advantage. Discussion: Three respondents altogether agreed to certain degree that electronic retailing services assist firms in the attainment of the competitive advantage. But it is not the case always as some of the firms are providing this to fulfil the need of the consumers. This is similar to the argument posed by Kearney (2000) that out the competitive advantage, firms are providing these services as the demand from the customers.

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4.2.4

Question four: Is e-retailing the essential step for the enhancement of the consumers satisfaction?

Manager one: Yes, it is essential step for the increase in the consumers satisfaction level. Manager two: In a way it can be said as essential step because consumer are more at ease due to this which give them more satisfaction.

Manager three: Sure, more customers are satisfied when they have convenience in shopping and it essential step to do so. Sometime the consumer finds it difficult to park car and shop so for such customers, it is vital to satisfy them because it saves them time. Discussion: This shows that e-retailing is more about the satisfaction of a consumer as it provide them link ease in shopping and more convenience therefore yes form the above interviews it can be said that e-retailing help the organisations in increase the satisfaction of consumers. This reflect the findings of the research of Borden (1994) that e-retailing is a ladder to improve the satisfaction level of the customers 4.2.5 Question five: Does the margin of profit and level of satisfaction of the consumer increases due to e-retailing? Manager one: Profit margin is different thing, it has not much link with the e-retailing services but of course the consumer satisfaction has increased due to e-retailing. Manager two: I will link all of the three things; e-retailing has essential role in the satisfaction improvement of the customers and customer become loyal that in some way increase the profit margin of a company.

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Manager three: Profit increase due to satisfaction of consumer and level of satisfaction improve with the help of e-retailing so yes, e-retailing has contribution in the profit increment and improvement of customers satisfaction. Discussion: The feedbacks of the managers reveal that all of the three are linked with each other. In one way or the other way it has a linked. E-retailing is not directly increasing the profit margin but it is improving the satisfaction level which leads to increase the profit margin of the organisation. The past research of Mithal (2005) also revealed that organisation use eretailing as a tool to increase the level of satisfaction. 4.2.6 Question six: What is the biggest advantage for the consumer that e-retailing provide? Manager one: For customers it is the most convenient way of shopping and for organisation, it is the providing the opportunity to be brand image Manager two: It gives wide range of varieties online and quick access to huge varieties in one click. Manager three: The biggest advantage it offers to consumers is that it is the easiest way to shop especially in peak hours of physical shopping; online shopping appears to be a blessing. Discussion: Some of the major advantages that are mentioned by the respondents are identical to the finding of the study of Richard and Joel (2006) that suggest that the most important function e-retailing has to offer is one single happy click and the shopping is done. In other words, the ease, convenience, and the speedy way of shopping are advantages of the online shopping.

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4.2.7

Question seven: is the market reputation of Tesco increased due to E-retailing?

Manager one: Yes, we can say that e-retailing has played its part in improving the market reputation of the Tesco. Manager two: E-retailing has helped Tesco as the company who believe in the change and development and therefore, consumers prefer Tesco because of its e-retailing services.

Manager three: Indeed, market reputation of Tesco improved due to e-retailing as now it is known as the innovative retailers. Discussion: Not just Tesco but most of the organisations have improved their market worth by means of e-retailing services. The market reputation is increased in different ways, for some it is helping them to gain competitive advantage, some are becoming more innovative due to these services and some are improving its quality of retailing services. This is also viewed in the literature reviews as the statement of the Ohmae (1998) that it helps organisation in competing in the market to improve its net market worth. 4.2.8 Question eight: What is the key of the success for Tesco?

Manager one: Consistent performance and adopting changes in the market is a key to succeed. Manager two: The key to success is providing wide range of variety to the customer at their ease. Manager three: Brand extension and strategic development can be said keys of success.

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Discussion: The views of the respondents may vary from each other but the centre point is somehow linked with the e-retailing services. If we see the adoption towards changes is the retailing services that the company has changed and the findings of Change (2001) are also suggesting that e-retailing is the scope of retailing. Wide range of products available at convenience is similar to the online services that give customers opportunity to view products at ease. The third respondent mentioned strategic development and if we notice e-retailing is the result of strategic development as mentioned by Rohan and Swaminathan (2004).

4.3Questionnaire representation:
4.3.1 Which one of the Following attracts one for online shopping? Discount Employees Customers 5 6 Price Variation 4 3 Product from Retailers 3 2 Offers from retailers 3 3

Interpretation and Analysis:

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The findings of this question is not similar to the study of Lamly (1996) which was indicating that the enhance investment in the channels of retailing is due to price variation as the feedback of the questionnaire indicates discount as the reason that majority seek.

4.3.2 How often online shopping take place?

Daily Employees Customers 2 1

Weekly 5 6

Fortnightly 3 2

Frequently 1 2

Monthly 4 4

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Interpretation and Analysis: The study of Reichheld (1996) suggested that the e-retailing is increasing more and more and in the findings of this survey, it is evident that most of the people nowadays opt for eretailing services weekly. In other words, as compare to past the usually tred was shopping monthly but now customers shop weekly.

4.3.3 What is the biggest attraction of all to shop online? New Product Development Employees Customers 3 4 Strong Brand Loyalty Strong Product Strong marketing life channel 4 2 6 5 3 2

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Interpretation and Analysis: The emperical research of Vida and Firhurst (1986) considered new prodcut development while Reichheld (1996) considered loyalty of of customer as attraction but the findings of this study shows that for employees strong marketing channel is also the biggest attraction, not to forget that according to consumers point of view the study of Reichheld (1996) is correct that brand loyal is one of the key attraction.

4.3.4 What could be the reason for online shopping? Large Choice of products 1 2 6 7

Time Saving Employees Customers 7 5

Weather

Free Delivery 1 1

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Interpretation and Analysis: Time saving and wide choice availablity is equal consideration for the online shopping and this is also evident in the past study of Peteraf (1993) that argues the company benefits from e-retailnig to gain copmetitve advantage and at the samtime huge variety is available for the customers.

4.3.5 Which of the following stops one from shopping online? Confusing presentation of product or services 4 5

Security Employees 5

Frauds

Check-out Time 1

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Customers

Interpretation and Analysis: The survey of Cap Gemini Ernst Survey report 2000, revealed the statistics that security is one of the main concern for the customers as it hinders them from online shopping and in this study we noticed that security is one of the reasons but it is not the only reason as frauds and confusing presentation of the product or services also stops customers from online shopping.

4.3.6 Are you satisfied with the electronic retailing services of Tesco? Very Satisfied Satisfied Less Satisfied Not Satisfied Disappointed 4 6 3 2 5 7 1 2

Employees Customers

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Interpretation and Analysis: The feedback from the respondents show that the e-retailing services are satisfactory to certain extent and these are indicating to the study of Kotler (1997) who argued that majority of people are satisfied with the services e-retailing therefore it is existing in the market, if it was not good enough, it would have been replaced by the other services.

4.3.7 How often does one uses the e-retailing services of same company? Yes Employees Customers 7 8 No 6 4 Never Noticed 2 3

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Interpretation and Analysis: We noticed that most of the respondents stick to same company for e-retailing services that have given them good experience and it is also being noticed by the past research of Rohan and Swaminathan (2004) that described the experiences of the consumers shape their behaviour towards the company.

4.3.8 What is your overall satisfaction about this Company? Very Satisfied Satisfied Less satisfied Not satisfied Disappointed

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Employees Customers

5 5

4 5

2 2

2 2

2 1

Interpretation and Analysis: The findings about the overall satisfaction of the customers of the present investigation is similar to the past research of Butles (1997) that suggests that satisfaction do not mean that customer will always remain happy and dissatisfaction does not always lead to the defection of customers. Even if they are at times not happy with the services, they will not dispose it forever.

4.4 Study through Statistical Analysis and Theoretical model 4.4.1 Chi-Test Customers feedback about E- retailing Services

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Responses very Satisfied Satisfied Less Satisfied Not Satisfied

1 0 2 1 0 3

2 2 3 1 0 6

Rating 3 1 0 1 1 3 Expected

4 1 1 0 1 3

Total 4 6 3 2 15

0.81 1.2 0.6 0.39

1.62 2.4 1.2 0.78

0.81 1.2 0.6 0.39

0.81 1.2 0.6 0.39

factor 0.266667 0.4 0.2 0.133333

P VALUE=0.621525 The Chi-test value occurred is 0.621525 which refers that the PVALUE is greater than 0.05 so the null Hypothesis cannot be rejected and hence there is no relationship between the selected variables. Employees feedback about E-retailing services Responses Very Satisfied Satisfied Less Satisfied Not Satisfied 1 3 4 0 0 7 2 1 2 0 0 3 Rating 3 1 1 1 1 4 Expected 2.331 3.269 0.469 0.931 0.999 1.401 0.201 0.399 1.332 1.868 0.268 0.532 0.333 0.467 0.067 0.133 Factor 0.333333 0.466667 0.066667 0.133333 4 0 0 0 1 1 Total 5 7 1 2 15

P VALUE=0.211764 Since the incurred value is 0.21174 which means P VALUE >0.05. On the basis of Ch-test result the null hypothesis cannot rejected. Hence, there is no relationship between the variables chosen for the research.

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Employees feedback about Overall Satisfaction

Responses Very Satisfied Satisfied Less Satisfied Not Satisfied Disappointed

Rating 1 2 0 0 0 0 2

2 2 2 1 0 0 5

3 1 1 1 1 0 4

4 0 1 0 1 1 3

5 0 0 0 0 1 1

Total 5 4 2 2 2 15

Expected 0.66 0.54 0.26 0.26 0.26

1.65 1.35 0.65 0.65 0.65

1.32 1.08 0.52 0.52 0.52

0.99 0.81 0.39 0.39 0.39

0.33 0.27 0.13 0.13 0.13

Factor 0.333333 0.266667 0.133333 0.133333 0.133333

PVALUE =0.358872 The P VALUE >0.05 as it is 0..358872 so null hypothesis cannot be rejected therefore there is no relationship between the different variables Customers response about Overall satisfaction

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Responses Very Satisfied Satisfied Less Satisfied Not Satisfied Disappointed

1 3 1 0 0 0 4

2 1 3 1 0 0 5

3 1 1 1 1 1 5

Rating 4 0 0 0 1 0 1

Total 5 5 2 2 1 15

1.332 1.332 0.5332 0.5332 0.268

1.665 1.665 0.6665 0.6665 0.335

Expected 1.665 1.665 0.6665 0.6665 0.335

0.333 0.333 0.1333 0.1333 0.067

Factor 0.333333 0.333333 0.133333 0.133333 0.066667

P VALUE=0.274025 In test value we got is 0.274025 and P VALUE >0.05 means null hypothesis cannot be rejected and on the basis of findings it is clear that there is no relationship between the different variables 4.4.2 SWOT Analysis of Tesco

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Internal Strengths: From the finding analysis and secondary survey reports, it is visible that Tesco has advantage over its competitors in the e-retailing services as for last twenty years it is the top retailer in the United Kingdom.

From the survey report of Cap Gemini Ernst (2000) it is evident that it is recognised as the best retail chain in the United Kingdom along with the other European states. In the International regime so far Tesco is making good progress as being the strong brand in the retail world. It strength is responding to changes in the best way as it is the trend setter and always work out its innovation by improving its strategies.

Internal Weaknesses

Prices are one of the key areas to sort out as it has high rates as compare to competitors. The price strategies need to be revised in order to retain customers. No development in the non-food items recently, as more of the concentration of Tesco is to invest in food items but it needs to develop its non-food items too.

External Opportunities In future to increase its market share more, there is an opportunity to invest in readymeal items so that the market share increases with the expansion of business areas. The chance if introducing new formats of retailing is more of its opportunity to grow because it is regarded as trend setter and if it introduces new designs and formats for

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retailing out of its innovation then it will have increase in its market worth in the process of internationalization. External Threats More of the focus these days is investing and expanding business in the European market so there is a threat of losing clients in the United Kingdom if the concentration is more on the European market. The new entrants can ground their steps more firmly in the UK retail market as they know that Tesco is more focusing on the international market then national market.

Rapid changes in the Technology and regulations imposed by international law are threat for the strategies of Tesco if it neglects it to even minor level.

Chapter 5: Conclusion
5.1 Introduction This is the final chapter that contains the conclusion of the entire report. It contains the three defined objectives to achieve the aim of the investigation. The evaluation of the hypothesis and importance of the study is discussed under the heading of evaluation, followed by the limitations that restricted the research report from being most appropriate and generalized for the electronic retailing sector on the United Kingdom. The last topic if this chapter suggest the steps that future researchers can work on to have more precise findings in this field. 5.2 Objective 1: To investigate the influences of e-retailing on the consumers satisfaction The literature review of the research report indicates that e-retailing has a vital role in the increase of the consumers satisfaction as evident in the research of the McGoldrick (2002) but at the same time there are researchers like Lamey (1996) and Buttle (1997) that argue eretailing has impact on the satisfaction but there is no guarantee that how long that impact will last. The study of Reichheld (1996) view customers satisfaction as a key to increase the brand loyalty and one of the ways is the provision if adequate and appropriate e-retailing service. In the light of the past researches it can be said that e-retailing has influenced the consumer satisfaction to certain level.

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5.3 Objective 2: To execute the primary research of consumers and employees of Tesco supermarket so that the e-retailings affect on their behavior and level of satisfaction The results of the present investigation indicate that e-retailing is vital but it is not the only factor that influences the overall satisfaction of the consumer. The behaviour of the consumer tends to vary and the SWOT analysis also established the fact that though Tesco is brand image, innovator and leader in the retail world but it has to deal with the changing consumers behaviour which means e-retailing does not guarantee the consumers satisfaction. But the results also show that it has improved the brand image and market reputability of the selected organisation. 5.4 Objective 3: To conclude the impacts of the e-retailing on the preferences, behavior and level of satisfactions on the customers engaged with Tesco The different statistical tools and graphical representation of findings and analysis has enables us to reach to the certain conclusion about the hypothesis assumed before carrying out the present study investigation. The Chi-test in case of both Employees perspective as well customers perspective, out assumption was incorrect because null hypothesis cannot be rejected if the value is above 0.05 and our test has generated the value above 0.05 in each case. The P Value is greater for all four tests, namely, Employees feedback regarding the eretailing services, Customers view about e-retailing services, Employees perspective about overall satisfaction, and customers view point about overall satisfaction cannot be rejected because it is greater than the assumed value. This lead us to the conclusion that e-retailing not the only factor that influence the overall satisfaction of customers because there are other factors also involved in the attainment of the consumers satisfaction. In other words, the overall satisfaction is not always the result of the due to the e-retailing services of the company. This can be concluded about the present investigation that the e-retailing system is not the reason for the overall satisfaction of the consumers behaviour. It is one of the key contributors and indicators for the business to implement their future plan and target their customers but it is not the only factor that will result in the overall satisfaction of the

58

consumers. Furthermore, it can be said that the personal experience of the customer is very essential in the increase of level of satisfaction because if consumers have good experience about the services they will be more satisfied but if not than it may reduce their level of satisfaction. 5.5 Evaluation: The evaluation also identifies the core importance of the research project as the environmental scanning shows that Tesco is an organisation which believes in the strategic planning of its units and outlets. Though the analysis of SWOT identified that Tesco is the organisation which firmly believe in the innovations and e-services but on the other hand, there are weaknesses and threats for the organisation which it need to work out on. It indicates that despite being the trend setter, the e-services do not guarantee satisfaction of the behaviour of the consumers because there is no clear evidence that the overall satisfaction of the customer is based on the electronic retailing services. 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 customers satisfaction but quality of e retailing is not the whole sole vital and crucial factor for the customer satisfaction. The importance of this piece of research is that it has increased the researchers practical knowledge about the E-retailing services operating in the dynamic environment. Most of the models of e-retailing and business patterns are clear to the researcher which was previously not very clear in conceptual terms. The various ideas about the attitude and behavior of the consumer is improved to huge level and the usage of various tools for the analysis and interpretation is learnt through practical implementation in the different parts of the research. The study will be beneficial for the academic purpose as it will serve the basic grounds for the students to include it in their literature review and for the future researcher it is the preliminary stage from where they can continue to explore more business and marketing dimensions about e-retailing services and consumers behavior. 5.6 Limitation of the study: The research is not as in depth as the researcher would have wanted which is one of the limitations of the present research. If more time was available, more in-depth research would have gone. Second limitation is the selection technique of the participants; in this research respondents were selected by two ways, though the stratified sampling technique was adopted but the individuals were approach through means of researchers own convenience and

59

random selection. There is the possibility that those customers who were part of the sample size may not have been very frequent users of e-retailing services and therefore, their response may be based on ideas rather than personal experience. The sample size of the research is very small as compare to the actual population who shop online so it is a clear limitation of the investigation because results are only confined to one organization and the respondents are less than the actual population of one day shoppers of the selected organization. It is not a comprehensive research because it only includes Tesco as a case study but it the researcher has shown the comparison between two or more organizations and their e-retailing services, there would have been more generalizability. In this research the outcomes cannot be generalized to the whole retailing sector of the United Kingdom. 5.7 Future Recommendations: The future researchers should increase the sample size for their research to have more generalized results. Furthermore, researchers should also do the comparison between different retailing organizations so that there is more accuracy in the approach. The comparison will help the researcher to find the consumers point of view about the e-retailing services of these players. The more appropriate effort will be to interview the member of chamber of commerce who have more expertise in the e-commerce and use it in the discussions to gain more precise outcomes. The sampling technique used for the current research need to be modified by the future researchers in their approach because this research had time constrain therefore only convenience and random sampling was used but more appropriate will be stratified sampling technique or the future researchers.

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Appendix 1:
Interview Questions:

Part A: Demographic Description: What is your age? What is your qualification? How many years of experience you have?

Part B: Question one: Is Electronic retailing the prime and significant feature for customers of super market? Question two: Is innovation the competency factor for the company to influence the behaviour of the consumers? Question three: Has the e-retailing services helps the organisation in attaining the competitive advantage?

66

Question four: Is e-retailing the essential step for the enhancement of the consumers satisfaction? Question five: Does the margin of profit and level of satisfaction of the consumer increases due to e-retailing? Question six: What is the biggest advantage for the consumer that e-retailing provide? Question seven: is the market reputation of Tesco increased due to E-retailing? Question eight: What is the key of the success for Tesco?

Appendix 2:
QUESTIONAIRE Age: Income: __________________ __________________ Education: __________________ Gender: __________________ Occupation: __________________

Q1. Which one of the Following attracts one for online shopping? Discount Price variation Product from Retailers Offers from Retailers Q2. How often online shopping take place? Daily Weekly Fortnightly Frequently

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Monthly Q3. What is the biggest attraction of all to shop online? New product development Strong brand Loyalty Strong products life Strong marketing channel Q4. What could be the reason for online shopping? Time saving Weather Large choices of products Free Delivery Q5. Which of the following stops one from shopping online? Security Frauds Confusing Presentation of Products and Services Check-out Time Q6. Are you satisfied with the electronic retailing services of Tesco? Very Satisfied Satisfied Less Satisfied Not Satisfied Disappointed Q7. How often does one uses the e-retailing services of same company? Yes No Never noticed Q8. What is your overall satisfaction about this Company? Very Satisfied Satisfied

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Less Satisfied Not Satisfied Disappointed Thank you for your cooperation~

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