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Edexcel BTEC (Level 7) Extended Diploma in
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Strategic Management and Leadership)
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Unit Title: Research Methods for Strategic Managers
Topic: A critical analysis of measurement of customer
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satisfaction level in a Tesco store- Feltham
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Unit Code: R/602/2422
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Unit No. 16
Student Name: Amanpreet Kaur
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Student ID: 2859
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Name of Assessor: Mr A Khoso
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Issue Date: 10/6/2014
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Submission Date: 5/8/2014
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DECLARATION:

This thesis is a presentation of my original research work. Wherever contributions of others

are involved, every effort is made to indicate this clearly, with due reference to the literature,
and acknowledgement of collaborative research and discussions.

The work was done under the guidance of Professor Mr A. Khoso, at the 360 GSP College,
Wembley.

Amanpreet Kaur
[Candidates name and signature]

Date:

ACKNOWLADGEMENT:
Apart from the efforts of mine, the success of any project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitude
to the people who have been instrumental in the successful completion of this research.
First and foremost, I would like to thank to our supervisor of this research, Mr A. Khoso for
the valuable guidance and advice. He inspired me greatly to work in this research. His
willingness to motivate me contributed tremendously to my research. I also would like to
thank him for showing us some example that related to the topic of our research. I would like
to show my greatest appreciation to Prof. Mirza. I can't say thank you enough for his
tremendous support and help. Besides, I would like to thank the authority of (360 GSP,
College) for providing me with a good environment and facilities to me to complete this
research. In addition, I would also like to thank the Manager and employees of Tesco store
which provide me valuable information as the guidance of our project.
Finally, an honourable mention goes to my family and friends for their understandings and
supports on me in completing this research. Without helps of the particular that mentioned
above, I would face many difficulties while doing this research.

TABLE OF CONTENTS
1) Abstract....Page 5
2) Introduction..Page 6
3) Need of measurement of customer satisfaction....Page 7
4) Company background .........Page 8
5) Statements of the problemPage 8
6) Objectives of research..Page 9
7) Research questions.Page 9
8) Literature review........Page 10
9) Methodology..Page 15
10) Data analysis, Test, Discussion and Findings.Page 20
11) Conclusion..Page 27
12) Recommendations.Page 28
13) ReferencesPage 29
14) AppendicesPage 35

Appendix1....Page 35

Appendix 2.Page 36

A CRITICAL ANALYSIS OF MEASUREMENT OF

CUSTOMER SATISFACTION LEVEL IN A TESCO
STORE- FELTHAM

A customer is the significant visitor on our premises. He is not

depending on us, we depend on him. He is not an interruption of our work
but the purpose of it. He is not an outsider but a part of it. We are not doing
him a favour by serving him. He is doing us a favour by giving us the
opportunity to do so (M K Gandhi 2014)

ABSTRACT:
Service eminence and buyer satisfaction are very significant brain wave that corporation must
value if they want to stay competitive and grow. Each business is all set to pay any way to
recognize and comprehend the clients and their requirements. Mainly, the retailers try to attain
competitive benefit by enchanting the responses of the clients ahead of the level of presently
satisfied to beyond their expectations. In present competitive atmosphere providing excellence
service is the means for a sustainable competitive benefit.
Organizations foundation and profitability depend upon the customer satisfaction that leads to
repeat acquisition, brand constancy, and affirmative word of mouth. From the view point of
measurement of customer satisfaction this research project is based on the aim that what is the
view of customers about services run by Tesco. Because Tesco is one of the enormous
companies in the retail trade with huge customer base therefore its tricky to measure client
satisfaction level. This research project involves measuring of client satisfaction level by
investigation and individual consultation of clients. Some literature was used to implement the
data to find out the result of this research project. The questionnaire method was used to check
the level of customer satisfaction and it was found that customers are satisfied in all areas of
research but in 3 areas they are not satisfied with the product prices. The company must cut price
of product and to offer more recurrent distinct offers and reduced price on product on diverse
occasions, like Christmas, New Year, Mothers Day etc.

INRODUCTION:
It is well recognized that pleased clients are key to long-standing commerce victory (Kristensen
et al., 1992; Zeithaml et al., 1996; McColl-Kennedy and Schneider, 2000). Trades that have a
more contented client base also experience higher financial returns (Aaker and Jacobson, 1994;
Bolton, 1998; Yeung et al., 2002). Elevated buyer satisfaction leads to better client faithfulness
(Yi, 1991; Anderson and Sullivan, 1993; Boulding et al., 1993) which, in turn, leads to future
income (Fornell, 1992; Bolton, 1998). Trades giving better-quality of service have been
establishing to be market leaders in requisites of sales and long-standing client loyalty and
preservation (Anderson and Sullivan, 1993; Boulding et al., 1993; Eklo f and Westlund, 2002).
For that reason that, companies rival in comparable market niches are forced to measure the
service quality they offer in order to catch the fancy of and maintain their clients. Clients
prospect are derived from their own build up connections with services offered to them in all
walks of life. From such connections clients accumulate a widespread service hope or standard
based on their everyday account as clients. It is from the gathering of these service experiences
that customers establish personal standards and use them to gauge service quality.
Spontaneously, they could generate distinctive values of service across companies in terms of
their needs from the substantial and insubstantial proportions of the services (Gronroos, 1984;
Nicholls et al., 1998).
Customer satisfaction is the result sensed by those that have gone through a companys recital
that have satisfied their hopes. Various researchers and academicians emphasize the significance
of customer satisfaction and observe that customer satisfaction has a positive impact on
profitability of organizations. Various evidences depicts that there is positive link between
customer satisfaction, faithfulness and maintenance. Today all corporations understand the
impact of providing and managing service quality that leads to customer satisfaction. Service
quality that is delivered can meet or exceed customers expectations are mainly influenced by
customers prior expectations. Service eminence and buyer satisfaction are very significant brain
wave that corporation must value if they want to stay competitive and grow. In present
competitive atmosphere providing excellence service is the means for a sustainable competitive
benefit. Organizations foundation and profitability depend upon the customer satisfaction that
leads to repeat acquisition, brand constancy, and affirmative word of mouth (Zekiri J and
Angelova B. 2011).

According to Hansemark and Albinson (2004) satisfaction is an on the whole buyer approach to
a service giver, or an touching response to the difference between what clients expect and what
they get, concerning the execution of some requirements, goals or need . Client fidelity means
strong promise to re-buy a ideal product in the future in spite of situational affects and
advertising efforts having the prospective to cause switching deeds (Oliver, 1997).
Customer satisfaction leads to customer loyalty and customer loyalty is important because loyal
customers are not only more liable to try new produce from their favourite trader but also
recommend a businesss services. Moreover, it can be up to 20 times more costly to get new
clients than maintaining existing clients.
NEED OF MEASUREMENT OF CUSTOMER SATISFACTION:
1) Customer-focused businesses take customer satisfaction measurement not only as a part of a
cycle of constant expansion in service delivery but also as a part of the wider toolkit of customer
insight methods. Various trades supervise performance over time and calculate the impact of
service enhancement action.
2) Customer satisfaction measurement permits an administration to realize the issues, or key
drivers, that cause contentment or disappointment with a service experience. By knowing the
client satisfaction level, an organisation is able to focus its time and assets more efficiently.
3) Customer satisfaction measurement may also permit an administration to know the extent to
which contentment with a service is influenced by factors exterior of its manage like media and
to distinguish between what people say influences how pleased they are, and what is actually
motivating their fulfilment during a service experience.
4) Most significantly, buyer satisfaction measurement helps an administration not only to
understand what it can and cannot control but also to focus on its clients, and must stimulate
service owners, strategy, and senior management, customer-facing and research workers, with
the goal of recuperating the client experience.

COMPANY BACKGROUND:
Tesco came in the markets of Londons East End, where in 1914, war veteran Jack Cohen began
to sell groceries. The brand name of Tesco first appeared on packets of tea in the 1920s.
Following the success of self service stores in the US, Mr. Cohen opened the first Tesco selfservice store in St. Albans in 1948. Gradually the business expanded from stores to
supermarkets, and by the early 1960s, Tesco had become a familiar household name, selling
household goods and clothing. In 1974, the company set up petrol stations at its major sites,
selling fuel at competitive prices. In 1979, the companys annual turnover reached 1 billion for
the first time. Throughout the 1990s, Tesco expanded even further, and continued its
international expansion. In response to a growing Eastern European market, Tesco opened stores
in Poland, Hungary, Slovakia and the Czech Republic. Tesco also expanded into Taiwan,
Thailand and South Korea. Tesco is one of the largest food retailers in the world, operating
around 2,318 stores and employing over 326,000 people.
As well as operating in the UK, it has stores in the rest of Europe and Asia. It also provides
online services through its subsidiary, Tesco.com. The UK is the companys largest market
operating under four banners: Extra, Superstore, Metro and Express. Tesco sells approximately
40,000 food products in its superstores, as well as clothing and other non-food lines. The
companys own-label products are at three levels, value, normal and finest. Own brand accounts
for approximately 50% of sales. As well as convenience produce, many stores have gas stations.
The company has become one of Britains largest petrol independent retailers. Other retailing
services offered in the UK include Tesco Personal Finance and Tesco.com. Tesco Personal
Finance is a joint venture with the Royal Bank of Scotland. It has over 3.4 million customers,
and provides various financial products and services (Data monitor. 2004)
STATEMENTS OF THE PROBLEM:
According to Reuters (4/6/2014) - Britain's largest retailer Tesco (TESCO.PLC) recorded its
nastiest periodical UK sales plunge in 40 years, raising questions over boss Phil Clarke's
strategy to oppose the challenges of a rapidly-changing grocery business.
British customers are looking about to save money, trying to squander less through buying
little and frequently in confined convenience stores in its place of a immense periodical shop
at big out-of-town stores.

They are moving towards fast-growing discounters like Aldi [ALDIEI.UL] and Lidl
[LIDUK.UL] for essentials and Waitrose [JLP.UL] and Marks & Spencer (MKS.L) for top
end treats. Tesco is trapped in the centre and has posted two instantly years of income decline
with a third predict for 2014-15.
Consolidated statement of comprehensive income for the year ended 28February 2013 is
given in appendix 1.
To see why the sales of Tesco Plc are down researcher will conduct research and will find out
the possible reasons that whether the downfall is due to dissatisfied customers or due
competitive pressure.
OBJECTIVES OF RESEARCH:
1. To find out lively customers satisfaction level
2. To find out the cause of discontent of clients via response obtained
3. To find the hope of clients from a trader
4. To examine the services of Tesco to check if they meet the customer expectations
RESEARCH QUESTIONS:
1. What are the causes of customer satisfaction at Tesco Plc?
2. What are the overall customer expectations from a retail giant, such as Tesco?
3. Are the existing services offered by Tesco proficient to meet the customer needs?
4. What are the causes of customer dis-satisfaction at the retail store?
5. What new improvements and additions required in the services that brings satisfaction
higher?

10

LITERATURE REVIEW:
Customer satisfaction has turn out to be the key functioning targets for many businesses that
have spend greatly in recuperating presentation in areas that make a sturdy involvement to a
client satisfaction. Industries are spending in 'database marketing', buyer correlation
management', and purchaser scheduling in order to get closer to their clients and rewarding
them in order to ultimately attain" Customer Satisfaction". (Li. 2002). There are numerous
facets that must be taken into concern from the manufacturer point of view in order to apply
effectively the perception of customer satisfaction. Customer satisfaction is a chief belief of
quality beliefs and quality administration tools. (Wink A M. 2009)
The connection between client satisfaction and business accomplishment has traditionally
been a issue of reliance, and many satisfaction studies have also supported the case. Client
satisfaction has forever been regarded a vital company goal as it was supposed that pleased
clients would purchase more. Client satisfaction is frequently defined in the market literature
as a buyer does on the whole assessment of his or her procure and expenditure experience of
a product or service. Furthermore, apparent service quality refers to clients verdict about the
recital of goods or service. Buyer satisfaction is significantly essential as it depicts individual
client assessments of the quality performance linked with the expenditure experience.
(Namkung Y. 2008)
Customer satisfaction is one of the significant results of marketing action (Oliver 1980, Mick
& Fournier 1999). According to Zeithmal and Bitner (2003), satisfaction is the client
execution reaction. According to Kumar, Kee and Manshor (2009) better service quality can
lead to high client satisfaction and upsurges buyer faithfulness. Therefore buyer satisfaction
is the result of service quality (Parasuraman, Zeithaml & Berry 1988, Naeem & Saif 2009),
which can further arouse the turnover and progress of the companies through improved client
loyalty that is a straight outcome of purchaser satisfaction (Heskett, Sasser & Schle-singer
1997). Due to this, numerous companies are paying cumulative attention to enhanced service
quality (Gupta, McDaniel & Herath 2005). Service quality is counted as a more significant
order leader than product quality in few manufacturing industries (Ghobadian, Speller &
Jones 1994), as service-quality enhancements can lead to client satisfaction and cost
administration that result in enhanced incomes (Stevenson 2002). Therefore service quality is
broadly viewed as a teamster of business marketing and financial recital (Buttle 1996).

11

The significance of measurement of client service is well recognized in marketing and

management literature. However, there is no commonly known way or measurement scale
that occurs. Certainly, the measurement of client behaviour and satisfaction is more
investigative in its progress fairly than a detailed, exact knowledge. There are various
philosophies relating to the best way to measure client satisfaction. Between the more
leading, (but not comprehensive of all theories related with client satisfaction measurement)
comprise the expectancy-disconfirmation method, the performance-only method, the practical
and well-designed contradiction approaches, the service eminence against service satisfaction
approach, and the quality prominence approach (Gilbert et al., 2004). Still, there are
disparities in the approach that satisfaction is measured in terms of scales used, questions
layout and the data gathering techniques (Wilson, 2002). Overall, it is approved that client
satisfaction measurement is a post-consumption valuation by the worker about the product or
service gained (Churchill and Surprenant, 1982; Yu ksel and Rimmington, 1998). As stated
by Mittal et al. (1999), qualities that are practiced closer to the time of the clients final
assessment incline to power the clients total evaluations more than to those qualities that
were more reserved in time amongst the service meet and the clients rating.
Some investigators may use a single- item scale to measure to capture clients service
satisfaction (i.e. Yu ksel and Rimmington, 1998; Leisen and Vance, 2001). But, it is mainly
established that client satisfaction measurement is a multifarious paradigm, and the usage of
multi-item scales is chosen, as such offers better vision about buyer satisfaction from the
viewpoint of the purchaser. Multi- item measures can provide empirically based levels of
scale reliability that are not possible with a single item measure. Therefore, multi-item scale
measurements describing innumerable attributes from which customer satisfaction may be
imitative are selected in edict to eradicate the prototype of service satisfaction in a real
method (Nunnally, 1967).
Temporary valuations of few chief practices to assessing customer satisfaction are specified
underneath:

Confirmation-disconfirmation method:

This method is established on a contrast of the clients hopes against what the client really
underwent (Yu ksel and Rimmington, 1998). A device of specific annotation is the Customer
Satisfaction Index (CSI), most extensively used in the USA (ACSI) and Europe (ECSI). It has

12

been widely used (Fornell et al., 1996; Anderson and Fornell, 2000; Martensen et al., 2000;
Dermanov and Eklo f, 2001; Fornell, 2001; Eklo f and Westlund, 2002; Yeung et al., 2002).
The CSI scores relating to client satisfaction function as imperceptible monetary markers, and
are operated to monitor the financial sustainability of businesses, trades and worldwide
business unifications (Anderson and Fornell, 2000; Fornell, 2001). The CSI technique is
based on analytical prototypes that involve preceding client prospects, apparent quality based
on the clients post service valuations, and the clients apparent value (product versus price)
which lead to the formation of a client satisfaction index (CSI) score stretching from 0-100.
The post service valuations are accomplished by phones and are encompassed of the clients
evaluations on three principles: total quality, consistency, and meeting the clients
requirements. The national CSIs measure the quality of products and services as faced by
those who utilize them. A distinct companys CSI signifies its assisted arcades (i.e.
customers) complete assessment of the entire buying and feasting experience, mutually real
and predicted (Anderson and Fornell, 2000).

Performance-only approach

This technique evaluates service features connected to intermediate definite service

satisfaction (together practical and well-designed). One such performance-only approach is
testified in the literature is the Client Satisfaction Survey (Gilbert et al., 1997; Nicholls et al.,
1998). The tool evaluates clients satisfaction directly succeeding a service event. It comprises
practical and efficient transition definite features along with service quality and service
satisfaction measures. It involves two methods that were empirically derived through factor
investigation applications:

personal service satisfaction (SatPers) and service setting

satisfaction (SatSett). Principally, these two methods were targeted on the clients individual
response to the service distribution and to the atmosphere in which it is transported. The
methods are based on the apparent service quality and product features practiced in the
service meet considerably like the SERVPERF model (Cronin and Taylor, 1992).

Overall satisfaction

Jones and Suh (2000) propose that two different categories of customer satisfaction occur
the transaction exact and complete satisfaction. Transaction exact satisfaction is linked to a
specific meet with the business, while complete satisfaction is a collective concept summing
satisfaction with definite products/services of the business with numerous other aspects of the
business (Garbarino and Johnson, 1999). The complete rating look like a more universal

13

approach the client has toward the definite products or services delivered by the business.
Such a complete satisfaction is comparatively steady for some time and fewer subtle to query
order effects or additional transition precise responses on the part of the client (Auh et al.,
2003).

Cross-industry satisfaction measurement: the pros and cons

Experts and philosophers similarly have conveyed awareness in cross business presentations
of client service measurement (Naylor and Bardi-Kleiser, 2002; Yu ksel and Yu ksel, 2002),
whereas others have aimed on purchaser satisfaction measurement through nationwide
margins (Frazer-Winsted, 1999; Crotts and Erdmann, 2000; Spreng and Chiou, 2000; ChenYu et al., 2001). Certain contend that it is very problematic to develop a trustworthy and
effective measure to seizure satisfaction in all businesses (Wilson, 2002). However, others
struggle that there is an excessive necessity for such a measure for reasons of constant
benchmarking and enhancement. Certainly, experts require to have generally agreed scales to
measure customer satisfaction across businesses, for such consistent measures will allow them
to device the comparative efficiency of their own business when linked with the recital of
their opponents. Such benchmarking is a unceasing procedure of measuring the performs of
experts own officialdoms beside those of their strongest opponents, as well as with those
renowned as influential of other businesses (Black and Gregersen, 1999). The ACSI and the
ECSI have been established to help experts in their necessity for facts they can apply to
measure the act of their administrations inside and amongst definite businesses.
The CSI demeanours yearly evaluate client service quality in at least 35 distinct businesses. In
their studies through numerous businesses, the investigators frequently debate that their
model, scales, and measurement appear to be adequately malleable for presentation in diverse
trades (Grnholdt et al., 2000), and that client prospects have insignificant influence on the
development of satisfaction (Martensen et al., 2000). There are supplementary cases spending
fewer intricate measures than that of the CSI, in which it is conceivable for experts to put on
extra genuine times, cross business client satisfaction displays.
Certain studies described in the literature discovered that the similar measures could be
applied to capture satisfaction for areas with certain resemblances. Nicholls et al. (1998) were
able to associate hospitality-oriented and sports-oriented trades using the same client
satisfaction measures. Moreover, in their investigative study, Nicholls et al. (1998) inspected
methods that might be used to measure client satisfaction in five community and five secluded

14

segments, and their discoveries exposed auspicious cross business uses. Also, McDougall and
Levesque (2000) examined the role of the service quality promise, the alleged value, and
the interpersonal service quality (the delivery) in the identification of client satisfaction in
four provision areas. Their study exposed that all of these factors were found to have
statistically substantial effects on complete service satisfaction.
On the other hand, the verdicts of some investigators are less reassuring of the effectiveness
of cross business client satisfaction contrasts (Winsted, 1999; de Ruyter and Wetzels, 2000;
Bebko, 2000; Dermanov and Eklo f, 2001). Their results propose that customers calculations
of service quality can be characteristic to definite service businesses. Later, it could be
recommended that using same scale to measure satisfaction level with numerous service
assistances is not advisable, as the measurements that are assessed by the customers through
such an investigation of service aids can vary between the services, themselves. His universal
drift to service quality was began in the 1880s, when trades understood that keeping
competitive benefit is not definite by a product excellence, standing alone (van der Wal,
Pampallis & Bond 2002). Eminence of services can be the variance among victory and failure
in both service and businesses (Gupta, McDaniel & Herath 2005). Service quality, client
satisfaction and client value have developed as chief alarms in both industrial and service
administrations (Wang, Lo & Yang 2004).

15

METHODOLOGY:
The plan of this research was to collect the view of TESCO clients on the buyer service,
products, prices etc. The purchaser satisfaction research was conducted by using quantitative
research. The questionnaires were given to the clients in the stores. The questionnaire integrated
a blend of planned and open questions. This allow the client to engrave their open views about
company
The survey meant to discover customers common outlook about the company
Research Hypotheses:
Based on the diverse vision uttered by researchers in the earlier period, this research aims to test
two pertinent research hypotheses:
H0: There is not high level of satisfaction by customers in company and its services
H1: There is high level of satisfaction by customers in company and its services
Material and Methods:
This segment of research will cover subject matter like research method, how to conduct survey,
questionnaire designing, survey sampling, research hypothesis, and other strictures. Some sub
segments of this research helps to get the aim of this study and specifically research process, data
collection and methods and the other sub segments assists to other statistical implements, and
helps to analyse the data for easy understanding.
Research Approach
As this work is a business and management research, it has a feature of positivist and
interpretive. The knowledge claims that in research approach, strategies and methods play
important role that tends to be more quantitative, qualitative or mixed (Creswell. 2003)

Quantitative approach:

In this approach the researcher utilizes post positivist claims to expand acquaintance like
cause and effect viewpoint, reduction to specific variables and hypothesis and questions, use
of tools and examination and the test of hypothesis. Researcher utilizes strategy for inquiries
like experiments and surveys and collect data on predetermined instruments that yield statical
data (Creswell. 2003 cited in Rana M. 2006).

16

This approach is viewed as hypotheses- testing research. Typically, research starts with
theoretical report from which research hypothesis are derived. Then an investigational plan is
established in which erratic of questions are calculated while controlling for the effects of
certain sovereign variables. Topic incorporated in the study is randomly selected to reduce
error. The samples of area under discussion are drawn to imitate the inhabitants. (Newman
and Benz. 1998 cited in Rana M. 2006)
The nature of measures is deductive that contributes to methodical facts based by theory
testing and this is the nature of this approach. As accurate experimental plan necessitate firmly
controlled circumstances, the prosperity and profundity of measuring contributor may be
sacrificed. From validity point of view this is the drawback of this approach (Newman and
Benz. 1998 cited in Rana M. 2006).

Qualitative approach

This is multi approach that engages an interpretive and naturalistic approach to its subject
matter that means research must be completed in their usual settings, construe, fact in terms
of sense individuals convey to them (Newman and Benz. 1998 cited in Rana M. 2006).
In this approach the inquirer often create facts claims established on constructivists viewpoint
(means communally and traditionally carried out) or participatory viewpoint (opinionated or
transform oriented) or both. It also involves approach of inquiries like phenomenology and
case studies. The researcher gathers the open ended, promising data with the prime aim of
developing ideas from the data (Creswell. 2003 cited in Rana M. 2006).
Data collection
There are two chief methods to collect data. Sometimes data is previously there and one need
to extort it and every so often facts must be gathered. So depending on these methods data
gathering is characterised into:
1) Secondary dataData is gathered from secondary sources like internet, journals, books, news, newspapers,
personal records and govt., publications. (Ranjit Kumar. 1996 cited in Rana M. 2006).
2) Primary data:
Data is collected through questionnaires, interviews etc.(Hair et al. 2003 cited in Rana M.
2006).

17

In this research Quantative approach is used. Since the aim of study is to measure the
customer satisfaction level at Tesco store in Feltham. A questionnaire is set to get the thought
what clients experience while shopping at Tesco. A survey procedure was used to gather the
primary data from the folks. Surveys used in the research include gathering information from
huge inhabitants (Samuel et al. 2003 cited in Rana M. 2006).
Instrumentation
For understanding the significance and satisfaction of each client thirteen blend of questions
were prepared. The study has an idea of questionnaire pre- testing in order to get best results
from the research.
Questions were first tested on friends to check if they are easy to understand and readable.
After refining questions a well improved questionnaire was produced.
The questionnaire was given to 90 customers in TESCO store located in Feltham.
Questionnaire was designed based on literatures and experts. The Customer Satisfaction
Survey uses
Sampling strategy
Researcher selects TESCO, a leading retail supermarket based in the city of West London in
area Feltham. In the case of client respondents, 90 clients of above 23 years of age are
considered as purposive and casual sample for study. The sample process paid more thought
on assortment of suitable samples, so that samples can cover diverse background of
individuals because London is mainly multicultural city in UK.
Data Sources and study design
The type of the study is qualitative and quantitative. The researcher sticks to the expressive
logical approach in performing the research. This research is considered in practical research
that depends chiefly on data gathering from primary sources during dispensing a
questionnaire that was made particularly for this research:
The data was gathered by circulating a questionnaire on the target people.
The researcher used secondary sources like Business journals and preceding research
papers and business letters, news that are associated to the research topic.

18

Study area
Researcher selected the Tesco store located in Feltham, West Middlesex London
Ethics
In the study the researcher will perform assessment of Feltham Tesco store; so it is very
significant to appreciative of the Tesco Store. Official appeal to gather data will be
completed and concerned business must be wholly informed of the research nature,
educational institute (360GSP College) and manager must be well informed too about the in
progress research. This is also compulsory on researcher to value the workers and their
business while structuring questionnaire. Research subject must be examined carefully.
Confidentiality of person and business must be considered and mutually person and business
have the right to take out from research if they sense inconvenience.
Validity and reliability
In order to plummeting the vision of getting the answer incorrect, thought have to be paid on
research plan: reliability and validity (Saunders et al. 2003 Rana M. 2006).
Validity means that client satisfaction research calculates only those factors that are
associated to the satisfaction, which is required to be evaluated with the research. Validity is
influenced mostly by structure of research questions, substitutes that are selected to the
questions

(e.g.

scales)

and

the

question

location

in

the

survey

(Rope

&

Pllnen,Asiakastyytyvisyysjohtainen 1998).
Reliability means the constancy of the measure. (Ghauri & Gronhaug. 2002). This chiefly
means that, when the client satisfaction research is repetitive, the results are almost alike to
the formerly conducted research. If, variations have occurred in client satisfaction. The
factors that incapacitate the reliability are the amount of the unsystematic sample, a huge
figure of non-replies, uncertain structure of questions and incorrect timing of the execution
of the research. (Rope & Pllnen,Asiakastyytyvisyysjohtainen. 1998).
Validity
It involves, whether the results are actually about what they in fact emerge to be about
(Saunders et al. 2003 Rana M. 2006). It is defined as the extent to which data collection
methods precisely measure what they are planned to measure (Saunders et al. 2003 Rana M.
2006).

19

Since there were no option to reply the questionnaire incognito there may be validity
inconvenience with the results. Most of the replies were given by loyal clients and they may
have been replying individually. This is as if they might have desired to gratify the
employees.
Reliability
According to Saunders et al. (2003), extent to which data gathering methods will acquiesce
reliable findings, parallel explanations would be made or conclusions reached by other
persons.
This was the first customer satisfaction survey conducted in the Feltham TESCO store, so
there is no preceding case at how pleased clients have been before. This was an excellent
start and researcher discovers it very vital to carry on this measurement.
The research was conducted in June and the study was given out to clients for two week.
Researcher finds that the time-period was lengthy enough to gather trustworthy results. The
number of returned questionnaires was quite high.
Most of the answers belong to main client group (28-51-year old) and also most of them
were loyal customers. This fact elucidate that the replies are from the right client group and
can be judged as reliable.

20

DATA ANALYSIS, TEST, DISCUSSION AND FINDINGS:

After attaining the results, for getting the quantitative data analysis a statical tool of
Microsoft excel was used by the researcher. The statical results were obtainable in graphical
form with thorough description. Questionnaire is given in appendix 2.
How long been you are buying the products from TESCO store?
The reason for asking this question was to check customer loyalty. It was good to view that
most of responds came from customers who have been customers for more than 7 years
means very loyal.

Number of customers
40
30
20
10
0

Number of customers
less than 2 2-3 years 4-5 years 6-7 years more than
years
7 years

Fig.1: Histogram showing the number of customers and their duration of time for shopping
at Tesco
How extensive been you are buying the products from Tesco store?
The reason for asking this question was to recognize how the store retaining their inventory
and their goods assortment. Are they talented to get new stuff or not.
It was good to see that 50 clients who shop at Tesco said that often they locate what they are
looking for.

Fig.2: Histogram depicting the number of clients extensively buying products at Tesco

21

How knowledgeable do you find the sales staff about the goods they trade?
The major cause for enquiring this question was to discover how knowledgeable Tesco
employees are about the available products, so that they can assist the clients to locate the
products that they are looking for.
It was good to see that 40 customers at Tesco replied, the employees are very knowledgeable
and 36 customers said that the store workers are somewhat knowledgeable.

Fig.3: Histogram illustrating the number of customers views about the Tesco staff Knowledge
about goods
How comfortable are you shopping at this store?

Number of customers
45
40
35
30
25
20
15
10
5
0

Number of customers

Fig.4: Histogram depicting the number of customers about their confortability shopping at
Tesco

22

The cause to enquire this question to the clients is to discover out how they experience about
the store. This takes in service, security and atmosphere within the store.
It was good to view that 42 clients say that they experience very comfortable shopping at the
store and only 6 clients utter that they don't feel comfortable shopping at the store.
Do you find the price competitive at this store?
The chief cause for enquiring this question is to uncover, are the clients satisfied with the
costs or not. As when it's come to satisfaction price plays significant role.
So, when the researcher asked this question to the clients of the Tesco, 45 customers said that
the prices are not very competitive, 10 customers said that the prices are not at all competitive
and 20 customers said that prices are competitive. The result shows that majority of
customers are not happy with the prices.

Fig.5: Histogram depicting the number of customers and their views about price of products
at Tesco store
Have you ever made any returns to this store?
This question is very significant from the point of view of customer satisfaction. If a client is
satisfied with the goods and rate that they paid, they will not need to return any goods.
It was strange to view that 60 customers said that they returned a product at Tesco.

23

Fig.6: Histogram depicting the number of customers and their views about product return at
Tesco
What was the main reason for your most recent return?
There are so various reasons for returns like quality not expected found same product for
lower price in other stores and item defective.
It was strange to see that 80 customers said they return the products to the Tesco store because
they getting the same product at cheap price in other stores.
.

Fig. 7: Histogram depicting the number of customers and their views regarding product return

24

How do you find the store hours fit to your schedule?

When the researcher asked this question to the individuals who shopped at Tesco 70
individuals said that they are very satisfied with store hours

Fig.8: Histogram depicting the number of customers and their views regarding Tesco store
hours
This store is clean and well organized.
The aim for asking this question is to see if the store is well cleaned or not as they trade food
products in the store. As soon as it comes to an efficient store, it does emanate to client's
safety. If store is well systematized it make it stress-free for clients to find the product they
are looking for.
It was good to view that 20 customers agree and 60 clients strongly agree who shopped at
Tesco

Fig.9: Histogram illustrating the number of customers and their views regarding cleanliness
of Tesco store

25

This store is well stocked.

When the researcher asked this question to the individuals who shopped at Tesco, 10
customers agree and 74 customers said that they strongly agree.

Fig. 10: Histogram showing the number of customers and their views regarding stock
management at Tesco
How is the availability of parking at this store?
When the researcher inquired this question to the clients of Tesco, 50 customers said that they
are very satisfied with the parking facilities. And only 21 customers said that they are
somewhat satisfied while 16 customers who shopped at Tesco said they are satisfied with the
accessibility of parking space at store.

Fig.11: Histogram illustrating the number of customers and their views regarding
availability of parking at Tesco

26

The sales staffs at this store are friendly and helpful.

When the researcher inquired this question to the customers who shopped at Tesco, 10
customers agree and 80 customers said that they strongly agree with the question.

Fig. 12: Histogram showing the number of customers and their views regarding the behaviour
of Tesco staff

27

CONCLUSION:
Through this research, the researcher learned about client satisfaction and how significant it's
for trade. Also, what aspects affect clients' satisfaction and what the store need to do to please
their clients.
The conclusion can be drawn on basis of above analysis and findings. Out of 12 statements, 9
areas show higher satisfaction level and part from three areas where pricing is mentioned
means they not satisfied with the prices. It seems that the company is performing satisfactory
in service areas but failing operationally where prices are to be blamed. During the survey, the
management adverts of the case considered business have stated numerous factors that might
affect client satisfaction and that have vital effect on client reliability. Established on the
survey results, some of the main factors comprise- product cost and quality, service
excellence, location of store and environment, product obtainability, and distinctive
offers/discounted price, and overall customer services etc. have vigorous influence on the
client satisfaction and client reliability at Tesco plc, UK. The survey outcomes illustrated that
mainstream of the clients are pleased and extremely satisfied with shopping atmosphere, store
site, parking area etc. On the other hand, majority of clients are extremely dissatisfied with the
price of product and value for money at Tesco plc, UK. So, established on the survey results,
it can be believed that the price of product at Tesco is a vital apprehension to upsurge client
satisfaction and client faithfulness at Tesco plc, UK.

28

RECCOMENDATIONS:
1) To win the hearts of the customers and to attract more customers the company must
follow the Pricing below competition strategy, which simply means rating goods lesser
than the opponent's price. This strategy works well if the store sells the best prices,
decreases costs and improves a marketing strategy by putting emphasis on price
specials.
2) In the period of competitive flea market every single client is very valuable for
businesses to preserve this client base businesses has to answer consistent to their
client and also has to handle responses from client side.
3) Company have to change from being product and progression focused to flattering
client focused.
4) Corporation have to build client acquaintance skill during enhancement of the existing
procedure that embrace buyer data achievement and data analysis.
5) Company must perk up their worker assessment and information systems in order to
generate motivational performance obsessed environments that focus attempt toward
generating strong client association. This can be completed by instigating a definite
reward system based on behaviour, equivalent to income gratifying scheme in order to
perk up buyer focus act.
6) Sales representative should target on resolving any inconvenience straight with no
hold-up in order to evade any dissatisfaction.
7) Sales representatives should target on attaining happiness relatively than just
delivering the necessary product, they must reinforce their talents with inventive ideas,
and intercession abilities in order to astonish their client and pamper them.
8) The company must gather response and ideas from the clients as well as to emphasis
on client affiliation management, client response, and client grievance management
etc.
9) The company must conduct marketing research on daily basis to recognize and
examine demands and prospects from the clients.

29

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papers/Best_practice_in_measuring_Customer_Satisfaction.pdf (Assessed on 4/6/2014)
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on 29/6/2014)
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e_Study_of_Retail_Super_Markets_in_United_Kingdom_(.pdf (Assessed on 25/6/2014)
Data

monitor.

2004.

Tesco

Plc

assessed

on

24/6/2014

at

http://people.exeter.ac.uk/wl203/BEAM011/Materials/Lecture%204/TESCO%20Company%20P
http://uk.reuters.com/article/2014/06/04/uk-tesco-sales-idUKKBN0EF0DF20140604# (Assessed
on 15/6/2014)
Tesco personal finance plc. Directors report and Financial Statements for the year ended 28
February

2013.

Company

number

SC

173199

assessed

on

25/6/2014

at

http://www.my3q.com/research/viewSummary.phtml?intStart=0&questid=328261(Assessed

on

file:///C:/Users/Amanpreet/Downloads/tesco%20finance.pdf

28/7/2014)
http://www.theseus.fi/bitstream/handle/10024/6350/Mattsson_Katriina.pdf

(Assessed

18/7/2014)
http://epubl.ltu.se/1653-0187/2006/58/LTU-PB-EX-0658-SE.pdf (Assessed on 3/7/2014)
http://www.ukessays.co.uk/essays/business/customer-satisfaction.php (Assessed on 5/7/2014)
http://library.iugaza.edu.ps/thesis/87084.pdf (Assessed on 1/7/2014)
http://essayandreportwriting.com/academics/dissertation-writing-samples/critical-analysis-ofcustomer-satisfaction-and-loyalty-tesco-uk/ (Assessed on 12/7/2014)

on

35

APPENDIX:
APPENDIX 1:
Consolidated statement of comprehensive income for the year ended 28 February 2013
2013

2012

000

000

103,385

119,990

16

9,389

9,473

16

28

276

16

5,804

2,495

25

1,614

3,205

98,158

130,449

Note

Profit for the year Net (losses) / gains on available for

sale investment securities
Unrealised net (losses) / gains during year, before tax
Cash flow hedges
Net (losses) / gains arising on hedges recognised in
other comprehensive income, before tax
Income tax relating to components of other
comprehensive income / (expense)
Share of other comprehensive (expense) / income of
associate
Total comprehensive income for the year attributable
to owners of the parent

Source: Tesco personal finance plc. (28 February 2013)

36

APPENDIX 2:
TESCO customer satisfaction survey:
1) How extensive been you are buying the products from TESCO store?
. Less than 2 years
. 2-3 years
. 4-5 years
. 6-7 years
. More than 7 years
2) How extensive been you are buying the products from TESCO store?
. Often
.Some times
. Never
. Don't know
3) How knowledgeable do you find the sales staff about the goods they trade?
.Very knowledgeable
. Somewhat knowledgeable
. Not at all knowledgeable
. Don't know
4) How comfortable are you shopping at this store?
. Very Comfortable
. Somewhat Comfortable
. Somewhat Uncomfortable
. Not At All Comfortable
. Don't Know

37

5) Do you find the price competitive at this store?

. Very Competitive
. Somewhat Competitive
. Not Very Competitive
. Not At All Competitive
. Don't Know
6) Have you ever made any returns to this store?
. Yes
. No
7) What was the main reason for your most recent return?
. Quality not as Expected
. Found Same Item for Lower Price
. Item Defective
8) How do you find the store hours fit to your schedule?
. Very Satisfied
. Somewhat Satisfied
. Satisfied
. Somewhat dissatisfied
. Very dissatisfied
9) This store is clean and well organized.
. Strongly Disagree
. Disagree
. Undecided
. Agree

38

. Strongly Agree
10) This store is well stocked.
. Strongly Disagree
. Disagree
. Undecided
. Agree
. Strongly Agree
11) How is the availability of parking at this store?
. Very Satisfied
. Somewhat Satisfied
. Satisfied
. Somewhat dissatisfied
. Very dissatisfied
12) The sales staff at this store is friendly and helpful.
. Strongly Disagree
. Disagree
. Undecided
. Agree
. Strongly Agree