Store Environment Factors That Influence Customer Purchase Behaviour And Retention in Tyre Retailers

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Research Proposal
Store Environment Factors That Influence Customer Purchase Behaviour And Retention in
Tyre Retailers
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Table of Contents
Chapter One: Introduction....................................................................................................................3
1.1. Management Problem...........................................................................................................3
1.2. Statement of the Research Problem......................................................................................3
1.3. General Objective..................................................................................................................4
1.5. Specific Objectives.................................................................................................................4
Chapter Two: Literature Review............................................................................................................4
1.1. Definition of Retailer stores...................................................................................................4
2.2. Retail Mix Strategy.................................................................................................................4
2.3. Store Attractiveness Theory...................................................................................................4
2.4. Factors of Store Environment................................................................................................5
2.4.1. Ambient Factors.............................................................................................................5
2.4.2. Design Factors................................................................................................................6
2.4.3. Social Factors.................................................................................................................6
2.4.4. Store Employees............................................................................................................7
2.5. Study Conceptual Framework................................................................................................7
Chapter Three: Research Methodology.................................................................................................8
3.1. Introduction...........................................................................................................................8
3.2. Research Design.....................................................................................................................8
3.3. Target Population..................................................................................................................8
3.4. Sample and sampling process................................................................................................8
3.5. Method of Date Collection.....................................................................................................9
3.6. Quantitative Data Analysis...................................................................................................10
3.7. Ethical Considerations.........................................................................................................10
References...........................................................................................................................................11

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Chapter One: Introduction
1.1. Management Problem
A Tyre Retailer operating in Australia has only succeeded in achieving a marketing
share of 25 percent. However, the market share has been on a decline for a considerable
number of years. This is beside the company specializing in selling of the most-recognized
brands such as Good Year and Dunlop. The retailer has lost customers. The new retailer chief
executive officer was quick to observe after vising 20 of the major retail stores located in
regional and cities, that half of customers were women. Besides, they were uncomfortable
and tried to get out of the stores. While these issues were visible to the CEO within few
stores, no study provides a understanding of environment factors that customers consider
important among the outlets.
1.2. Statement of the Research Problem
The study seeks to explore issues that affect the environment of the retail outlet.
Furthermore, the study seeks to explain the manner in which customers perceive ambience
factors in their purchase decision. Studies have failed to focus on Tyre Retailers involved in
offering products and services to a diversified groups of customers. The study will focus on
three key factors of store environment including design, social, and ambient factors.
Secondly, this study will evaluate the manner in which consumers develop their perceptions
concerning the ambience of retail stores. Thirdly, the study seeks to offer some
recommendations concerning some of the best strategies that management could take to
improve the retail environment.
The study seeks to adopt a case study as a qualitative strategy. A case study involves
conducting empirical investigation concerning a given contemporary scenario. The scenario
must also occur in their real life. The study will use structured questionnaires distributed at
different stores to collect primary data from customers visiting the stores.

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1.3. General Objective
This study seeks to study a general objective that involves exploring environment Factors
that influence customer purchase behaviour and retention in tyre retailers.
1.5. Specific Objectives
a. To identify the issues with the environment of the retail outlet
b. To evaluate the consumer perception regarding the ambience of the retail store
c. To recommend suitable strategies to improve the retail environment
Chapter Two: Literature Review
1.1. Definition of Retailer stores
A retailer refers to an individual or a business that sells goods to final consumers for
final consumption and not for reselling (Kaltcheva and Weitz, 2006). The customers purchase
the products from a single point such as internet or brick-and-motor. Retailers buy goods in
bulk from manufacturers and resell them in small quantities to customers. They link the
manufacturers and consumers.
2.2. Retail Mix Strategy
Retailers use marketing strategy attractive to target customers (Judd, Powell & Lewis,
2015). A good strategy for retail mix should be able to fulfil the customer expectations while
its elements are consistent with each other (Sachdeva & Goel, 2015). It should also be
competitive. Its elements include product, price, place, promotion, people and process.
2.3. Store Attractiveness Theory
Attractiveness of a retail store plays a major role in attractive customers to promote
the sale of products (Reinartz & Kumar, 1999). Studies have found an association between
store attractiveness and customer experiences (Berthold, Reese, & Martin, 2017). The current
dynamic environment where technology is becoming a major influencing factor in