1BUSINESS MARKETING CHAPTER3: RESEARCHMETHODOLOGY 3.1 INTRODUCTION Thischapterprovidesadetaildescriptionoftheresearchmethods, frameworks and instruments used to gather and evaluate data. Choy (2014) states that research methodology is the method of generating high level of awareness and understanding about the addressed research problem. It is key to choose methods, frameworks and philosophical assumptions which are tested for reliability and validity and designed to be unbiased and objective. Applied research is the main theme for the majority of the research and can be implied in different fields of research. In this study, Saunders’ research onion has been used to discuss the different layers in the research method (Saunderset al.2015). There are numerous methods of generating results and these results ranges from high scientific structural methods to informal ways of fulfilling the objective of the research. The main objective of the research is evaluating the influence of pricing strategies on the consumer purchase intention in the grocery industry in United Kingdom. As per the objective, it can be stated that evaluating the cause and effect relationship between both the variables in the purpose of the research. 3.2 RESEARCHDESIGN Research design is the overall process of choosing techniques and methods that can be used to combine various components logically. On the contrary, the choice between qualitative and quantitative methods is also defined as research design. It also provides insights on the way a methodology can be used to perform the study effectively (Creswell and Poth 2017). This means that it provides the outline of the way, research needs to be conducted in the study. Research design explains the type and nature of study to be performed. This can be experimental, quasi experimental, correlational, review and others. The four key characteristics of research design are reliability, neutrality, validity and generalisation (Ioannidiset al. 2014). This means that the results developed from the research needs to unbiased and the reproducibility of the design is high. Validity measures the appropriateness of the research instruments. Moreover, the results developed should be applicable to the whole population sample and not the chosen sub set.
2BUSINESS MARKETING Researchdesignsaremainlydividedintothreeconcepts;descriptive research design, explanatory research design and exploratory research design.The current research has chosen the explanatory research design as it has facilitated in measuring the cause and effect relationship between two variables (Meyers, Gamst and Guarino 2016). The explanatory research design is also known as causal research design. It has also been used to depict the pattern in association between two variables. This uses a high structured design which facilitates in performing quantification of the observed data. This means that the changes in the pricing strategies and its possible impacts can be identified using this design. A single research design has been developed in the research and quantitative data has been collected using the mentioned design. 3.3 SAMPLINGTECHNIQUE Sampling is the process of the choosing elements from the total population which forms the sample sub set in the research. As stated by Jishanet al. (2015), it is not feasible for a study to use the whole population as the sample population so elements have to be chosen for representing the total target population. The process of sampling is used for reducing the cost and timeframe of the research. This is highly relevant in quantitative studies due to the involvement of the large sample data.The process of sampling follows series of events and steps to select the samplepopulationandtargetpopulation(Taherdoost2016).Thefirststepis choosing the target population and the target population for the current research are the retail consumers in the United Kingdom. However, all the consumers cannot be used in this research and consumers having possible effective contribution to the research needs to be chosen. Sampling frame is the technique which comes into playduetothisrequirementwherethesampleelementshavingsignificant contributiontotheresearcharechosen.Thesamplingframeinthisresearch consists of the retail consumers in London. The next step is choosing the sampling size and in this current study, the data has been collected from 100 respondents by conducting an online survey. The online survey resulted in no missing data and helped in measuring the relationship between pricing strategies and consumer purchase intention.The next step is choosing the sampling technique and there are mainly two types of sampling method, one is probabilistic sampling method and second is non-probabilistic sampling method.
3BUSINESS MARKETING However, in quantitative studies the probabilistic sampling method is preferred where randomisation of sample elements in the key characteristics of the method.In this research, stratified sampling has been used to choose respondents from different strata. This helps in gathering a more diversified response group in the research. 3.4 RESEARCHINSTRUMENT In this research, the study has chosen online survey questionnaire has been chosen as the instrument (Cook and Reed 2015). The research questionnaire has been divided into three sections and consists of 10 questions. The first section consists of demographic questions, the second section consists of questions on pricingstrategyandthethirdsectionconsistsofthequestionsonconsumer purchase intention. The first section consists of 4 questions, the second section includes 2 questions and the last sections also consists of 4 questions. 3.5 PROCEDUREFORDATACOLLECTION The process of data uses primary data collection method to gather data from survey questionnaire. The questionnaire has been sent to respondents through emails. The survey questionnaire consists of close ended questions where the questionnaire used nominal scale, ordinal scale and ratio scale to collect relevant data (Palinkaset al.2015). The questionnaire uses a structured format to collect data from different respondents. The questionnaire has been developed based on the conceptual framework developed in the literature review section to examine the relationship discussed. 3.6 METHODOFDATAANALYSIS This research uses a quantitative approach where the data collected has been analysed using statistical tools like SPSS and MS Excel. SPSS has been used toperformPearson’scorrelationbetweenthevariables.Pearson’scorrelation measures the degree of correlations between the chosen elements. The research has regression analysis to develop a model and perform trend analysis (Palinkaset al.2015). The regression line follows the equation, y=mx + c + E, where m is the slope, c is the constant, x is the dependent variable, y is the independent variable and E is the error. Regression analysis has been able to establish the relationship between the different factors by using a multiple regression tool.
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4BUSINESS MARKETING 3.7 RELIABILITYANDVALIDITY Ithasalreadybeendiscussedthatreliabilityandvalidityareimportant components of research design. Reliability of the questionnaire has been measured using test rated reliability where the questionnaire has been used to collect data from different sets of respondents to check whether the results are similar or not. The reliability of the collected data has been measured using cronbach’s alpha test which measures the scale reliability and internal consistency of the collected data (Heale and Twycross 2015). The value of alpha is expected to be greater than 0.6 for high level of internal consistency. The validity of the questionnaire has been measured using pilot testing where the questionnaire was sent to 10 respondents to gather theiropinionontheconsumers.Thevalidityofthedatacollectedhasbeen measured using Bartlett test of sphericity and Kaiser Meyer Olkin test for sampling adequacy. The KMO test is used to measure the adequacy of the sampling method and the Bartlett test measures the proportion of variance among the data collected. 3.8 ETHICALCONSIDERATION Theresearchhasadheredtoalltheethicalguidelinesofperforminga research. The respondents have been provided information regarding the purpose of performing the research. The research has maintained the privacy and anonymity of the respondents by withholding their personal data (Connelly 2014). The study has also made sure that none of the data collected from the respondents has been fabricated, falsified or plagiarised. The study has followed the data protection act of 1998 and data collected has been stored securely. The collected data has not been used for any other purpose in the research. The study has also ensured that the questionnaire does not consist of any discriminatory or offensive language that may hurt the sentiment of any respondent.
5BUSINESS MARKETING CHAPTER4: FINDINGSANDANALYSIS 4.1 INTRODUCTION The current section has evaluated the data gathered using statistical tools and techniques necessary to obtain relevant results. The reliability statistics and validity test has been performed to analyse the quality of the data collected. Descriptive statistics has been analysed to understand the mean response of the population in eachofthecases.Thefrequencychartshasbeenexaminedtoevaluatethe responses from each participant. The correlation and regression analysis measured the relationship among the different elements to prove the hypothesis mentioned in theliteraturereviewsection.Thechapterhasalsolinkedtheresultswiththe literature review to form valid discussion in the research. 4.2 RELIABILITYANDVALIDITY Cronbach’s alpha test has been used to measure the internal consistency of the information gathered as it has the ability to quantify the responses into a range. The Cronbach’s alpha value has a threshold of 0.7 and the value above 0.7 is considered acceptable in applied research. The value of alpha is .807 which means that the internal consistency and scale of the data gathered is significantly high. The mean value of the responses collected shows a high value which means that similar responses are obtained in majority of the cases. The item total statistics is used to evaluate the internal consistency when one of the item is deleted. In this study, it can be seen that the value of alpha decreases when one of the item is deleted. This means that all the elements have high level of consistency. The validity of the data gathered has been measured using Kaiser-Meyer- Olkin Measure of Sampling Adequacy and Bartlett's Test of Sphericity. The value of KMO is .798 which means that the sampling of the given data is highly adequate. On the other hand, the value of Bartlett test is .000 which is less than the p value of .05. This data implies that the data collected is significant and proportion of variance is minimal in the research. The reliability and validity analysis of the data gathered has shown positive results. It is expected to derive results that are in accordance to the scope of investigation. It also implies that results created are relevant and high accuracy and precision.
6BUSINESS MARKETING Reliability Statistics Cronbach's AlphaN of Items .8076 Table 1: Reliability statistics Source: (As created by author) Item Statistics Mea n Std. Deviati on N @5.Howfardoyouagreethatyoupreferlowpricesthroughoutt h 3.301.648100 @6.Howfardoyouagreethatyoupreferfrequentdiscountsthro u 3.181.579100 @7.Howfardoyouagreethatyourproductchoiceisinfluenced b 3.861.436100 @8.Howfardoyouagreethatyourstorechoiceisinfluencedby3.761.272100 @9.Howfardoyouagreethatyourpurchaseamountisinfluenc ed 3.641.375100 @10.Howfardoyouagreethatyourpurchasetimingisinfluenc ed 3.751.410100 Table 2: Item statistics Source: (As created by author) Item-Total Statistics Scale Mean if Item Scale Varian ceif Item Correct ed Item- Total Correlat Cronbac h's Alphaif Item
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7BUSINESS MARKETING Delet ed Delete d ionDeleted @5.Howfardoyouagreethatyoupreferlowprice sthroughoutth 18.1931.08 5 .282.846 @6.Howfardoyouagreethatyoupreferfrequent discountsthrou 18.3133.20 6 .180.863 @7.Howfardoyouagreethatyourproductchoic eisinfluencedb 17.6325.14 5 .818.718 @8.Howfardoyouagreethatyourstorechoiceisi nfluencedby 17.7326.42 1 .836.723 @9.Howfardoyouagreethatyourpurchaseamo untisinfluenced 17.8526.21 0 .773.731 @10.Howfardoyouagreethatyourpurchasetim ingisinfluenced 17.7426.61 9 .713.744 Table 3: Item-total Statistics Source: (As created by author) Scale Statistics MeanVarianceStd. DeviationN of Items 21.4938.9806.2436 Table 4: Scale Statistics Source: (As created by author) KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy..798 Bartlett's Test of SphericityApprox. Chi-Square353.743 df15 Sig..000 Table 5:KMO and Bartlett's Test
8BUSINESS MARKETING Source: (As created by author) 4.3 DESCRIPTIVESTATISTICS The descriptive statistics examines the mean, standard deviation and kurtosis. The average mean value of all the questions is 3.581 which means that majority of the respondents have agreed to the research questions. The average standard deviation of the data collected is 1.453 which means that the responses range from 5 to 2. It implies that there are few respondents that have disagreed to the research questions. The kurtosis value measures the heaviness of the tail in the study and the negative value determines that the distribution is platykurtic and the tails are lightly distributed. Descriptive Statistics NMinim um Maxim um MeanStd. Deviation Kurtos is Statist ic Statisti c Statisti c Statist ic StatisticStatist ic @5.Howfardoyouag reethatyoupreferlow pricesthroughoutth 100153.301.648-1.550 @6.Howfardoyouag reethatyoupreferfre quentdiscountsthro u 100153.181.579-1.613 @7.Howfardoyouag reethatyourproductc hoiceisinfluencedb 100153.861.436-.433 @8.Howfardoyouag reethatyourstorecho iceisinfluencedby 100153.761.272-.041 @9.Howfardoyouag reethatyourpurchas eamountisinfluence d 100153.641.375-.743 @10.Howfardoyoua greethatyourpurcha setimingisinfluence d 100153.751.410-.661 Valid N (listwise)1003.5811.453 Table 6:Descriptive Statistics
9BUSINESS MARKETING Source: (As created by author) Descriptive Statistics Kurtosis Std. Error @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth.478 @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou.478 @7.Howfardoyouagreethatyourproductchoiceisinfluencedb.478 @8.Howfardoyouagreethatyourstorechoiceisinfluencedby.478 @9.Howfardoyouagreethatyourpurchaseamountisinfluenced.478 @10.Howfardoyouagreethatyourpurchasetimingisinfluenced.478 Valid N (listwise) Table 7:Descriptive Statistics Source: (As created by author) 4.4 FREQUENCYRESPONSES Image 1: Age
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10BUSINESS MARKETING Source:(As created by author) The purpose of the question is examination of the age of the participants for the current investigation. The results show that 42% of the participants belong to the age group of 25-30 years, 26%% of the respondents belong to the age group of35- 40years,18%belongtotheagegroupof18-24yearsandtheremaining respondents belong to the age group of 40 and above. The frequency distribution shows diversity among the respondents. Image 2: Gender Source:(As created by author) The question aims to highlight the gender of the participants and the results show that 51% are female, 40% are male and remaining preferred not to say. The diversity in the gender can be used as a moderating variable in understanding the difference in opinion between both the genders. The preferences and spending characteristics may vary depending upon the gender.
11BUSINESS MARKETING Image 3: Monthly Income Source:(As created by author) The present questions examines the monthly income of the respondents. The results show that 38% of the respondents have an annual income between 25,001 to 35,000 GBP, 28% have an annual income between 15,001 to 25000 GBP, 17% have an annual income of less than 15,000 GBP and 17% have an annual income of greater than 35,000 GBP. This shows that the disposable income of the consumers are relatively on the higher side in United Kingdom. However, it would be interesting to analyse the buying behaviour based on the income level of each participant segment.
12BUSINESS MARKETING Image 4: Age Source:(As created by author) The question shed light on the most preferable retail supermarket among the sample population. The results are quite shocking as 44% of the respondents have preferred ALDI over other industry giants. Tesco has been preferred by 32% of the respondents and has given competition to ALDI but the remaining two organisations have shown shocking results and have received only 12% of votes. This clearly implies that the buying behaviour of the consumers have changed and they are preferring to purchase products from ADLI over the big three.
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13BUSINESS MARKETING Image 5: Everyday Low Pricing Source:(As created by author) Thequestionexaminesthepreferencesoftheconsumersinrespectto everyday low pricing. The results showed that 36% have strongly agreed to the question, 20% have agreed to the question. On the contrary, 26% have strongly disagreed to the question and 10% have disagreed to the question. This shows that 56% of the respondents prefer Everyday low pricing in comparison to the high low pricing strategy.
14BUSINESS MARKETING Image 6: High Low pricing strategy Source:(As created by author) The question examines the preferences of the consumers in respect to high low pricing strategy. The results showed that 34% have strongly agreed to the question, 13% have agreed to the question. On the contrary, 19% have strongly disagreed to the question and 25% have disagreed to the question. This shows that 47% of the respondents prefer high low pricing in comparison to the everyday low pricing strategy.
15BUSINESS MARKETING Image 7: Age Source:(As created by author) The question investigates whether the products choices of customers are affected by the price offered. It can be seen that 49% of the respondents have strongly agreed to the question and 22% have agreed to the question. On the contrary, 13% have strongly disagreed to the question and 8% have disagreed to the question. The result is as expected and have parity with the literature and shows that 71% customers choose products based on the price offered. Image 8: Store choice Source:(As created by author) The given question examines the impact of price of the products on the store choices. The results show that 32% of the respondents have strongly agreed to the question and 41% have agreed to the question. On the contrary, 10% have strongly disagreed to the question and 9% have disagreed to the question. This shows that 73% of the respondents chooses their supermarket retail brand based on the price offered. However, among these there are cherry pickers that purchase products
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16BUSINESS MARKETING when there are price incentives but this study has not been able to differentiate them. Image 9: purchase amount Source:(As created by author) The given question examines the impact of price of the products on purchase amount. The results show that 36% of the respondents have strongly agreed to the question and 26% have agreed to the question. On the contrary, 12% have strongly disagreed to the question and 10% have disagreed to the question. This shows that in 62% of the consumers’ purchase amount is affected by the price of the product.
17BUSINESS MARKETING Image 10: Purchase timing Source:(As created by author) The given question examines the impact of price of the products on purchase timing. The results show that 42% of the respondents have strongly agreed to the question and 26% have agreed to the question. On the contrary, 12% have strongly disagreed to the question and 11% have disagreed to the question. This shows that 68% of the respondents choose their purchase timing based on the price offered. 4.5 CORRELATIONANALYSIS The relationship between all the elements have been found to be relevant and significant at .01 confidence interval.The correlation analysis shows that there is a strong correlation between product choices and store choices. The value is 0.8 whichmeansthatthedegreeofassociationisstronganddirectlyproportion. Moreover, the relationship is bidirectional in nature where choice of store determines the product to be purchased. Similarly, the product choice dictates the stores to be visited. The relationship between consumers preferring everyday low pricing and the high low pricing strategy shows that negative relationship with a value of -.269. This means that there is a strong negative relationship between the preferences of ELDP and Hi-Lo strategy. This is because of the fact that consumers preferring ELDP would not choose Hi-Lo strategy and vice versa. This means that the consumers of ALDI will not make purchases in Tesco or Sainsbury’s. Similarly, the consumers of
18BUSINESS MARKETING Tesco will not make purchase from ALDI unless other moderating factors affect their behaviour. The relationship between purchase amount and product choice have strong positive correlation between them and the relationship bidirectional. This meansthatconsumerschoosetheirproductsbasedontheiroverallpurchase amount. This defines the disposable income of the consumers. Correlations @5.Howfa rdoyouagr eethatyou preferlowp ricesthrou ghoutth @7.Howfa rdoyouagr eethatyour productch oiceisinflu encedb @8.Howfa rdoyouagr eethatyour storechoic eisinfluenc edby @5.Howfardoyouag reethatyoupreferlow pricesthroughoutth Pearson Correlation 1.419**.357** Sig. (2-tailed).000.000 N100100100 @7.Howfardoyouag reethatyourproductc hoiceisinfluencedb Pearson Correlation .419**1.800** Sig. (2-tailed).000.000 N100100100 @8.Howfardoyouag reethatyourstorecho iceisinfluencedby Pearson Correlation .357**.800**1 Sig. (2-tailed).000.000 N100100100 @9.Howfardoyouag reethatyourpurchas eamountisinfluence d Pearson Correlation .351**.850**.753** Sig. (2-tailed).000.000.000 N100100100 @10.Howfardoyoua greethatyourpurcha setimingisinfluence d Pearson Correlation .324**.646**.715** Sig. (2-tailed).001.000.000 N100100100 @6.Howfardoyouag reethatyoupreferfre quentdiscountsthro u Pearson Correlation -.269**.198*.328** Sig. (2-tailed).007.048.001 N100100100 Table 8:Correlation Source: (As created by author)
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19BUSINESS MARKETING Correlations @9.Howfar doyouagre ethatyourp urchaseam ountisinflue nced @10.Howf ardoyouagr eethatyour purchaseti mingisinflu enced @6.Howfar doyouagre ethatyoupr eferfreque ntdiscounts throu @5.Howfardoyouagr eethatyoupreferlowp ricesthroughoutth Pearson Correlation .351**.324**-.269** Sig. (2-tailed).000.001.007 N100100100 @7.Howfardoyouagr eethatyourproductch oiceisinfluencedb Pearson Correlation .850**.646**.198* Sig. (2-tailed).000.000.048 N100100100 @8.Howfardoyouagr eethatyourstorechoic eisinfluencedby Pearson Correlation .753**.715**.328** Sig. (2-tailed).000.000.001 N100100100 @9.Howfardoyouagr eethatyourpurchase amountisinfluenced Pearson Correlation 1.584**.240* Sig. (2-tailed).000.016 N100100100 @10.Howfardoyoua greethatyourpurchas etimingisinfluenced Pearson Correlation .584**1.320** Sig. (2-tailed).000.001 N100100100 @6.Howfardoyouagr eethatyoupreferfrequ entdiscountsthrou Pearson Correlation .240*.320**1 Sig. (2-tailed).016.001 N100100100 Table 9:Correlation Source: (As created by author) 4.6 REGRESSIONANALYSIS 4.6.1 EVERYDAYLOWPRICINGSTRATEGYIMPACTONPRODUCTCHOICE The value of Multiple R is .419 which shows moderate correlation between product choice and ELDP. The value of R square is .176 which implies that the
20BUSINESS MARKETING goodness of fit of the model is low but is acceptable in practical studies. This also signifies that 17.6% of the characteristics of product choice can be described by ELDP. Durbin Watson test shows that there is no first order autocorrelation between the variables. The F value in the study is .000 which is less than the p value so the null hypothesis can be rejected and there is significant relationship between the two. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.419a.176.1671.3101.827 a. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth b. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression35.848135.84820.888.000b Residual168.192981.716 Total204.04099 a. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb b. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.655.2949.021.000 @5.Howfardoyouagreetha tyoupreferlowpricesthroug houtth .365.080.4194.570.000 a. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb 4.6.2 EVERYDAYLOWPRICINGSTRATEGYIMPACTONSTORECHOICE The value of Multiple R is .357 which shows moderate correlation between store choice and ELDP. The value of R square is .128 which implies that the goodness of fit of the model is low but is acceptable in practical studies. This also signifies that 12.8% of the characteristics of store choice can be described by ELDP. Durbin Watson test shows that there is no first order autocorrelation between the
21BUSINESS MARKETING variables. The F value in the study is .000 which is less than the p value so the null hypothesis can be rejected and there is significant relationship between the two. Model Summaryb ModelRR SquareAdjusted R Square Std. Error of the Estimate Durbin-Watson 1.357a.128.1191.1941.814 a. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth b. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression20.467120.46714.350.000b Residual139.773981.426 Total160.24099 a. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby b. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.850.26810.620.000 @5.Howfardoyouagreetha tyoupreferlowpricesthroug houtth .276.073.3573.788.000 a. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby 4.6.3 EVERYDAYLOWPRICINGSTRATEGYIMPACTONPURCHASEAMOUNT The value of Multiple R is .351 which shows moderate correlation between purchase amount and ELDP. The value of R square is .123 which implies that the goodness of fit of the model is low but is acceptable in practical studies. This also signifies that 12.3% of the characteristics of purchase amount can be described by ELDP. Durbin Watson test shows that there is no first order autocorrelation between
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22BUSINESS MARKETING the variables. The F value in the study is .000 which is less than the p value so the null hypothesis can be rejected and there is significant relationship between the two. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.351a.123.1141.2931.372 a. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth b. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression23.083123.08313.797.000b Residual163.957981.673 Total187.04099 a. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced b. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.673.2919.199.000 @5.Howfardoyouagreetha tyoupreferlowpricesthroug houtth .293.079.3513.714.000 a. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced 4.6.4 EVERYDAYLOWPRICINGSTRATEGYIMPACTONPURCHASETIMING The value of Multiple R is .324 which shows moderate correlation between purchase timing and ELDP. The value of R square is .105 which implies that the goodness of fit of the model is low but is acceptable in practical studies. This also signifies that 10.5% of the characteristics of purchase timing can be described by ELDP. Durbin Watson test shows that there is no first order autocorrelation between
23BUSINESS MARKETING the variables. The F value in the study is .000 which is less than the p value so the null hypothesis can be rejected and there is significant relationship between the two Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.324a.105.0961.3411.545 a. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth b. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression20.633120.63311.481.001b Residual176.117981.797 Total196.75099 a. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced b. Predictors: (Constant), @5.Howfardoyouagreethatyoupreferlowpricesthroughoutth Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.836.3019.416.000 @5.Howfardoyouagreetha tyoupreferlowpricesthroug houtth .277.082.3243.388.001 a. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced 4.6.5 HIGHLOWPRICINGSTRATEGYIMPACTONPRODUCTCHOICE This model is significant as the F value is .048 and hi-lo strategy explains 3.9% of the characteristics of product choice. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.198a.039.0301.4141.784
24BUSINESS MARKETING a. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou b. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression8.03218.0324.016.048b Residual196.008982.000 Total204.04099 a. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb b. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)3.286.31910.291.000 @6.Howfardoyouagreetha tyoupreferfrequentdiscoun tsthrou .180.090.1982.004.048 a. Dependent Variable: @7.Howfardoyouagreethatyourproductchoiceisinfluencedb 4.6.6 HIGHLOWPRICINGSTRATEGYIMPACTONSTORECHOICE This model is significant as the F value is .001 and hi-lo strategy explains 10.8% of the characteristics of store choice. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.328a.108.0991.2081.806 a. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou b. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby
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25BUSINESS MARKETING ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression17.291117.29111.854.001b Residual142.949981.459 Total160.24099 a. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby b. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.918.27310.701.000 @6.Howfardoyouagreetha tyoupreferfrequentdiscoun tsthrou .265.077.3283.443.001 a. Dependent Variable: @8.Howfardoyouagreethatyourstorechoiceisinfluencedby 4.6.7 HIGHLOWPRICINGSTRATEGYIMPACTONPURCHASEAMOUNT This model is significant as the F value is .016 and hi-lo strategy explains 5.7% of the characteristics of purchase amount. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.240a.057.0481.3411.353 a. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou b. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression10.740110.7405.970.016b Residual176.300981.799 Total187.04099
26BUSINESS MARKETING a. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced b. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.977.3039.829.000 @6.Howfardoyouagreetha tyoupreferfrequentdiscoun tsthrou .209.085.2402.443.016 a. Dependent Variable: @9.Howfardoyouagreethatyourpurchaseamountisinfluenced 4.6.8 HIGHLOWPRICINGSTRATEGYIMPACTONPURCHASETIMING This model is significant as the F value is .001 and hi-lo strategy explains 10.2% of the characteristics of purchase timing. Model Summaryb Mode l RR SquareAdjusted R Square Std. Error of the Estimate Durbin- Watson 1.320a.102.0931.3421.710 a. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou b. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced ANOVAa ModelSum of Squares dfMean SquareFSig. 1Regression20.142120.14211.177.001b Residual176.608981.802 Total196.75099 a. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced b. Predictors: (Constant), @6.Howfardoyouagreethatyoupreferfrequentdiscountsthrou Coefficientsa ModelUnstandardized CoefficientsStandardized Coefficients tSig. BStd. ErrorBeta 1(Constant)2.841.3039.374.000 @6.Howfardoyouagreetha tyoupreferfrequentdiscoun .286.085.3203.343.001
27BUSINESS MARKETING tsthrou a. Dependent Variable: @10.Howfardoyouagreethatyourpurchasetimingisinfluenced
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28BUSINESS MARKETING CHAPTER5: CONCLUSION 5.1 CONCLUSION The final chapter of thesis paper aims to summarise the overall research process and findings. This chapter has critically linked the findings to the objectives to gain suitable insights. It has already been stated that the grocery retail market in United Kingdom is highly saturated in nature and organisations spend significant amount of their resources to develop the ideal price strategy for their products to gain competitive advantage over the other organisations in the same operating market.Eventhoughvariousstrategiesandtheorieshavebeendiscussed, consumer purchase intention and pricing is a multi-faced phenomenon. This means that there was a lack of standardisation in measuring and conceptualisation the strategies and theories. Moreover, Aldi has been able to gain competitive advantage in the market due to their unique strategy and the study aims to take this case into accounttoanalysethepricingstrategiesandthewayit hasimpactedtothe purchase intention of the consumers. The research has used 100 consumers in the retail industry in the United Kingdom and quantitative survey has been used to create significant results. The investigation has presented following findings: The results are quite shocking as 44% of the respondents have preferred ALDI over other industry giants. Tesco has been preferred by 32% of the respondentsandhasgivencompetitiontoALDIbuttheremainingtwo organisations have shown shocking results and have received only 12% of votes. This clearly shows that ALDI has been able to increase their share in the market. The correlation analysis shows that there is a strong correlation between product choices and store choices. The value is 0.8 which means that the degreeofassociationisstronganddirectlyproportion.Moreover,the relationship is bidirectional in nature where choice of store determines the product to be purchased. Similarly, the product choice dictates the stores to be visited. The relationship between consumers preferring everyday low pricing and the high low pricing strategy shows that negative relationship with a value of -.269. This means that there is a strong negative relationship between the preferences of ELDP
29BUSINESS MARKETING and Hi-Lo strategy. This is because of the fact that consumers preferring ELDP would not choose Hi-Lo strategy and vice versa. This means that the consumersofALDIwillnotmakepurchasesinTescoorSainsbury’s. Similarly, the consumers of Tesco will not make purchase from ALDI unless other moderating factors affect their behaviour. The regression analysis shows that both the pricing strategies impacts the productchoices,storechoices,purchasetimingandpurchaseamount. However, the impact is greater in case of the ELDP which can be understood from the models developing using regression analysis. 5.2 RECOMMENDATION The research has proposed the following recommendations based on the objective in the research: ELDP pricing is more appropriate for the consumers in United Kingdom due to the change in buying behaviours of the consumers. The consumers have become more sensitive to price changes so ELDP is more appropriate when compared to Hi-Lo pricing strategy. ALDI has become the primary choice of the majority of the consumers in UK so other companies will have to develop backward integration and develop their private labelled brand to provide low prices constantly. This provides sustainable competitive advantage throughout the year. ELDP should be used by heavy discounters and customer value based pricing is the key to implementing pricing strategy suitable to current needs of the consumers. ALDI can use competitor based pricing to improve their market share due to the current economic recession in the United Kingdom market. 5.3 FUTURESCOPEOFTHESTUDYANDRESEARCHLIMITATION The major limitation of the study is that sample size is relatively smaller and the sampling error is 10%. Moreover, the study uses a single research design and a mixed method design would have provided a better result.On the other hand, the study has mainly focused on ELDP and Hi-Lo pricing strategies and further study can be performed to analyse the competitor oriented pricing, cost based pricing and
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