Analysis of Customer Behavior and Preference on Products & Services

The provided report outlines the meaning and method of primary data collection in which data are collected for conducting research on customer behavior and preference on products & services offered by companies to check efficiency of adaptation of discounting policy. The report summarizes collection of primary data with the help of Questionnaire and presents these data through graph and table, concluding statistical presentation of concluded data. Additionally, analysis of secondary data is presented by collecting financial data of organisations through internet, comparing companies market sharer and earning before interest & taxes.

INDIVIDUAL BUSINESS
REPORT AND
PRESENTATION

EXECUTIVE SUMMARY
The below report analyse and collect primary and secondary data. Further, in this report
customers reviews are taken by conducting a questionnaire in which variety of question have
been asked to respondents related to demographics, gender, spending ability and customers taste
& preference. Further, this report analysed market share, earning before interest and taxes and
profitability ratio of different retail companies such as B&M and Home Bargain, Sainsburry and
Tesco which shows competency of these organisations in market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Primary Data collection & analysis.................................................................................................1
TASK 2..........................................................................................................................................16
Secondary data collection & Analysis ......................................................................................16
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Business Report is a written report prepared by business organizations with an objective
of checking efficiency and effectiveness of their business operations. Companies conduct
research to gather information on a topic and this further helps company in resolving their
business problems and making important decisions. This business report explains meaning of
primary data and methods of primary data. Further, this report shows Questionnaires collected
from customers with the purpose of collecting information related customers preference and
reviews about products & services offered by B&M and Home Bargain. This datas are collected
from primary source. Furthermore, the below report highlights tables and data which shows
various statistics. Moreover, this report highlights comparison on three companies such as Tesco,
Sainsbury and B&M and Home Bargain. In this comparison market share, operating profit and
earning before interest & taxes of these three companies are compared. At last, this analysis
shows competitiveness and efficiency of business operations of these three companies.
TASK 1
Primary Data collection & analysis
For conducting a research, research analyst need to gather data related to research project
and that data can be collected from two sources Primary & Secondary Data Collection Methods.
Primary Data Collection is a method of collecting data. In this method data is collected
at a 1st time by researcher of analyst. According ot this method researcher collects data with an
objective of collecting information on a particular topic. This method is costly and requires much
time as researcher collects data from new sources. Various methods are used to collect data in
through this method. These methods includes Observation Method, Interview and Questionnaire,
Schedule Method and Projection Techniques (Velenturf and Jopson, 2019).
In this report Primary Data is Collected by Full-Discount Ltd to gather information
related to customers preference of products & services, spending, product variety and Purchasing
power of customers. Further, data is also collected to know what types of discounting policies
customers are attracted with. All this primary data is collected by company by asking questions
to number of individuals. Thus, Questionnaire method is used in this project for primary data
collection. In this report data is collected by asking questions to 30 respondents(Dang, 2018).
1. What is customers age group?
a) Below 18
1

b) 18-25
c)26-35
d)36-54
e) Above 54
2. From which gender you belong to?
a) Male
b) Female
3. What is your qualification?
a) Passed Higher Secondary
b) Graduated
c) Post Graduated
4. What is your average spending?
a) Less than $5000
b) $5000-$10000
c) $10001-$25000
d) Above $25000
5. From which market you prefer to shop?
a) Local Market
b) Super Market
c) Shopping Malls
d) Online Market
6. At What price you prefer to buy the products?
a) Low Price
b) Moderate Price
c) High Price
7. What type of discounting policy you expect?
a) Flat 30% discount
b) 20%-50% discount
c) Up to 70% discounts
8. What variety of products you prefer?
a) Branded Products
2

b) Local Products
9. Which companies product variety satisfy you?
a) Tesco
b) B&M and Home Bargains
10. Which firm's Brands are more satisfying to you?
a) Tesco
b) B&M and Home Bargains
11. Which companies home delivery services attracts customers?
a) Tesco
b) B&M and Home Bargains
12. Companies which ambiance, space and Interior attracts you?
a) Tesco
b) B&M and Home Bargains
Statistics
What
is
custo
mers
age
group?
From
which
gender
you
belong
to?
What
is your
qualific
ation?
What
is your
averag
e
spendi
ng?
From
which
market
you
prefer
to
shop?
At
What
price
you
prefer
to buy
the
produc
ts?
What
type of
discou
nting
policy
you
expect
?
What
variety
of
produc
ts you
prefer?
Which
compa
nies
produc
t
variety
satisfy
you?
Which
firm's
Brands
are
more
satisfyi
ng to
you?
Which
compa
nies
home
deliver
y
service
s
attract
s
custo
mers
Compa
nies
which
ambian
ce,
space
and
Interior
attracts
you?
N
Vali
d 30 30 30 30 30 30 30 30 30 30 30 30
Mis
sin
g
0 0 0 0 0 0 0 0 0 0 0 0
Mean 2.90 1.57 2.40 2.67 2.77 1.83 2.13 1.40 1.47 1.60 1.70 1.27
Median 3.00 2.00 2.50 3.00 3.00 2.00 2.00 1.00 1.00 2.00 2.00 1.00
Mode 3 2 3 3 2 1 3 1 1 2 2 1
3

Std.
Deviation 1.185 .504 .675 .959 1.006 .834 .819 .498 .507 .498 .466 .450
Variance 1.403 .254 .455 .920 1.013 .695 .671 .248 .257 .248 .217 .202
Range 4 1 2 3 3 2 2 1 1 1 1 1
Minimum 1 1 1 1 1 1 1 1 1 1 1 1
Maximum 5 2 3 4 4 3 3 2 2 2 2 2
Perc
entile
s
25 2.00 1.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
50 3.00 2.00 2.50 3.00 3.00 2.00 2.00 1.00 1.00 2.00 2.00 1.00
75 4.00 2.00 3.00 3.00 4.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00
What is customers age group?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 4 13.3 13.3 13.3
2 7 23.3 23.3 36.7
3 10 33.3 33.3 70.0
4 6 20.0 20.0 90.0
5 3 10.0 10.0 100.0
Total 30 100.0 100
4

From the above survey it is summarized that data is abstract from individuals of different
age groups and more questions are asked from individuals of age group of 25-35.
From which gender you belong to?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 13 43.3 43.3 43.3
2 17 56.7 56.7 100.0
Total 30 100.0 100.0
5

From the above table it is interpreted that questions asked to 17 females and 13 males.
What is your qualification?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 3 10.0 10.0 10.0
2 12 40.0 40.0 50.0
3 15 50.0 50.0 100.0
Total 30 100.0 100.0
6

From the above table it is evaluated that more number of respondents from which data
are collected are post graduated that further helps in collecting accurate information.
What is your average spending?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 4 13.3 13.3 13.3
2 8 26.7 26.7 40.0
3 12 40.0 40.0 80.0
4 6 20.0 20.0 100.0
Total 30 100.0 100
7

From the above table & graph it is analyzed that more number of customers are able to
spend more that $10,000.
From which market you prefer to shop?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 3 10.0 10.0 10.0
2 10 33.3 33.3 43.3
3 8 26.7 26.7 70.0
4 9 30.0 30.0 100.0
Total 30 100.0 100.0
8

From the above table it is evaluated that maximum number of customers prefer to buy
products & services from super markets.
At What price you prefer to buy the products?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 13 43.3 43.3 43.3
2 9 30.0 30.0 73.3
3 8 26.7 26.7 100.0
Total 30 100.0 100.0
9

From the above collected data it is also summarised that high number of customers are
preferring to purchase products & services at a lower price.
What type of discounting policy you expect?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 8 26.7 26.7 26.7
2 10 33.3 33.3 60.0
3 12 40.0 40.0 100.0
Total 30 100.0 100.0
10

Data collected through questionnaire also depicts that more customers want to purchase
goods & services with the discount of up to 70%.
What variety of products you prefer?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 18 60.0 60.0 60.0
2 12 40.0 40.0 100.0
Total 30 100.0 100.0
11

From the above graph it is also concluded that many customers are purchasing branded
products.
Which companies product variety satisfy you?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 16 53.3 53.3 53.3
2 14 46.7 46.7 100.0
Total 30 100.0 100.0
12

By conducting questionnaire it is also evaluated that maximum number of customers
are satisfied with product quality of Tesco.
Which firm's Brands are more satisfying to you?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 12 40.0 40 40.0
2 18 60.0 60.0 100.0
Total 30 100.0 100.0
13

From the above data it is interpreted that customers are highly satisfied with product brand of B&M and
Home Bargain.
Which companies home delivery services attracts customers
Frequency Percent Valid Percent Cumulative Percent
Valid
1 9 30.0 30.0 30.0
2 21 70.0 70.0 100.0
Total 30 100.0 100.0
14

From the above collected data it is summarized that many individuals are satisfied with
the home delivery services of B&M and Home Bargain.
Companies which ambiance, space and Interior attracts you?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 22 73.3 73.3 73.3
2 8 26.7 26.7 100.0
Total 30 100.0 100.0
15

Primary data collected with the helps of questionnaire concluded that maximum number
of respondents gets attracted with ambiance facility of Tesco.
TASK 2
Secondary data collection & Analysis
Secondary Data Collection is a process of collecting data and according to this method
data is collected from already collected information. Secondary Information is abstracted through
Internet Searches. Libraries, Reports and Census. This method is less time consuming and
benefits researcher in collecting quantitative data very easily. This method give more accurate
and reliable data. Data of Tesco, Sainsburry and B&M and Home Bargains are collected from
internet to evaluate growth of these companies in last three years(Nußholz, Rasmussen and
Milios, 2019).
Formula
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Current Ratio= (Current Assets/ Current Liability)
Quick Ratio= (Quick Assets/ Current Liability
Return on Capital Employed= (EBIT/Capital Employed)
Net Profit Margin Ratio = (Net Income/Net Sales)*100
Market Capitalisation, Earning Before Interest & Taxes and operating profit percentage
of three companies are compared in below tables with the help of secondary data collection
method(Charan and Murty, 2018).
Data for Financial
Year 2016
Tesco Sainsburry B&M and Home
Bargains
Current Ratio 0.81 0.66 2.33
Quick Ratio 68 0.51 0.48
Earning Before
Interest & Taxes
677 668 226
Market Share 14686.51 5317.37
Return on Capital
Employed
6.72 6.52 11.71
Profit Margin Ratio 0.47 0.03 6.12
17

From the above collected data of three companies such as Tesco, Sainsburry and B&M
and Home Bargains for the financial year 2016 it is evaluated that B&M and Home Bargain
earned highest profit in the year 2016 as compared to Tesco and Sainsburry which shows
company is earning profits from offering its products & services at a discounted prices. This
show that B&M and Home Bargain is giving strong competition in market as its market share is
also high in UK market as compared to other two companies. After B&M and Home Bargain,
Tesco also giving competition in retail industry by selling its products & services through
innovative stores and by giving discount to its customers time to time(Boyask, 2018).
Further, it is analysed that EBIT of Tesco is highest in the year which shows company is
able to earn higher income after deducting amount of operating expenses which also shows that
company is able to manage its cost. On the other hand, B&M and Home Bargain is earning low
income which depicts that company is unable to manage its cost and most of its profit is reduced
because company is offering its products at a discounting price(Bärring and et.al., 2018).
Data for Financial
Year 2017
Tesco Sainsburry B&M and Home
Bargains
Current Ratio 0.78 0.74 2.21
Quick Ratio 0.66 0.52 0.57
Earning Before
Interest & Taxes
645 617 286
Market Share 15401.57 5784.58
Return on Capital
Employed
2.42 5.5 12.07
Profit Margin Ratio 0.1 0.02 5.88
18

B&M and Home Bargain also gaining more profits in the financial year 2017 as
companies profit margin ratio is 5.88% which is 5 timers higher than both the companies. With
this it can be concluded that companies can earn more profits by giving product at a discounting
price. Which also shows that more customers are get attracted with offers. Further, ROCE of
B&M and Home Bargain is also high amongst all three companies which shows firm is gaining
compensative advantage. On the other hand. EBIT of B&M and Home Bargain is very which
shows that firm is not able to use its resources in an efficient manner(Malik, Abdallah and
Ala’raj, 2018).
Further, its also analysed that profits of all three companies are showing a decreasing
trend as compare to financial year 2016. This also show that in the financial year 2017
companies discounting policies are not much favourable.
By analysing above secondary data collected through internet it is also highlighted that if
companies introduce discounting policy time to time than it is beneficial for company to sustain
in long run and it also helps company in attracting its customers(Kayyali and et.al., 2018).
Data for Financial
Year 2018
Tesco Sainsburry B&M and Home
Bargains
Current Ratio 0.71 0.76 1.57
Quick Ratio 0.59 0.59 0.22
Earning Before
Interest & Taxes
1721 518 321
Market Share 17268.98 5239.5
Return on Capital
Employed
6.72 4.43 14.01
Profit Margin Ratio 1.01 0.02 6.41
19

From the above collected financial data of all three companies its is evaluated that profit
margin of Tesco and B&M and Home Bargain is showing an increasing trend as both the
companies make expansion in their products line, space and ambience. But, Sainsburry is not
able to compete in market as it is not able to adapt discounting policy and that in turn decreases
customer base, market share and profitability of organisation. Further, profits of Tesco is also
increased due to introduction of new discounting chain Jacks's on 19 September, 2018.
It is also interpreted that both the companies are growing in market as their earning
before interest and taxes are also increasing from previous year. It is also evaluated that market
share of Tesco is very high which highlight that customers are highly satisfied with products &
services offered by it. Whereas, Sainsburry's earning before interest & taxes are also decreasing
year by year which depicts that firm is not able to adapt strategies of its competitors.
There is an increase in net profit and market share of B&M and Home Bargain this also
depicts that firm is able to offer its products and services according to the demand of customers
which further helps in maximising customer base of company(Chaudhuri and et.al., 2018).
CONCLUSION
The above report outlined meaning and method of primary data collection in which data
are collected for conducting research on customer behavior and preference on products &
services offered by companies to check efficiency of adaption of discounting policy. Further, this
business report summaries collection of primary data with the help of Questionnaire and these
data are presented through graph and table. Furthermore, this report also concludes statistical
presentation of concluded data. Moreover, this report outlines analysis of secondary data by
collecting financial data of organisations through internet. At last these data are analysed to
compare companies market sharer and earning before interest & taxes.
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REFERENCES
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saving potential and the role of business model innovation and public policy. Resources,
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Charan, P. and Murty, L. S., 2018. Secondary stakeholder pressures and organizational adoption
of sustainable operations practices: The mediating role of primary stakeholders. Business
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