Customer Experience within Retail Sector of UK: A Costco Study

This report evaluates the impact of customer experience within the UK retail sector, focusing on Costco. It assesses the concept and significance of customer experience, analyzes factors influencing it, investigates challenges faced by Costco, and recommends strategies for improvement. Primary data was gathered from a questionnaire distributed to 20 Costco customers, while secondary data was obtained from journals and articles. The findings reveal insights into customer income levels, purchase frequency, product quality perceptions, pricing strategy importance, and digital platform usability. The report concludes with recommendations for Costco, including situational and market analysis, feedback mechanisms, and employee empowerment, to enhance customer experience and maintain a competitive edge. Desklib provides access to similar solved assignments and past papers for students.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aim of research...........................................................................................................................1
Research objectives.....................................................................................................................1
Research questions......................................................................................................................1
LITERATURE REVIEW................................................................................................................2
RESEARCH METHODOLOGY.....................................................................................................3
Quantitative methodology...........................................................................................................3
Qualitative methodology.............................................................................................................3
Primary data................................................................................................................................4
Secondary data............................................................................................................................4
FINDING AND ANALYSIS...........................................................................................................4
DISCUSSION ...............................................................................................................................10
Recommendations.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13

Title: An evaluation into the study of impact of customer experience within retail sector of
UK: A study on Costco
INTRODUCTION
Customer experience is associated with holistic perception of company's customers so
that relevant step can be taken. In the current era, competition in the retail sector has increased
which require firm to pay attention on assessing customer experience so that appropriate
knowledge regarding prevailing factors affecting image of brand can be identified. In the current
competitive environment it is highly essential for the firm to focus on gaining significant
information regarding its customers experience in turn formulation of strategic business decision
can become possible. For this purpose company need to focus on having relevant course of
action which can positively influence experience of customers. It is considered to be crucial for
promoting loyalty, retaining customers, inclining brand image, gaining competitive edge, etc.
The current study is based on assessing information regarding customer experience with
retail sector. The trend in retail sector is continuously changing which needs Costco to focus on
having relevant insights about its customers in turn proper details can be derived. It will be
helpful for the specified firm to focus on gaining appropriate data to implement relevant course
in order to attract and retain customers.
Aim of research
The main aim of recent study is to assess information regarding impact of customers
experience for Costco company
Research objectives
 To assess the concept and significance of customer experience
 To analyze the factors impacting of customer experience within retail sector
 To investigate challenges affecting customer experience of Costco company
 To recommend the strategies which can improve customers experience of Costco
company
Research questions
 What is concept and importance of customer experience?
 Which factors affect customer experience within retail sector?
 Which are the challenges that affect customer experience of Costco company?
 Which strategies can improve customer experience of Costco company?
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LITERATURE REVIEW
According to Hoyer and et.al., (2020) customer experience is concerned with ability of
organization to affect customers perception and feelings about it. There are several benefits
which can be derived by organization for having smooth functioning. It comprises obtaining
loyalty and commitment from customers. This contributes in gaining sufficient ability to attract
and retain buyers in order to have proper leading position in sector. In against to this, McColl-
Kennedy and et.al., (2019) Customer Experience (CE) is associated with having proper details
of factors encouraging buying particular products or services. There are larger number of factors
which benefit enterprise is having significant functioning which can build good markets hare,
brand image, stable financial position, etc in turn higher number of customer.
In the views of Bueno, and et.al., (2019) are several factors which play crucial role in
influencing experience of customers. The factors comprise employee engagement, awareness
regarding products & services and client expectations. In addition to this, it can be specified that
organization require paying attention on having effective ability to allow customer get involved
with process. In addition to this, awareness regarding particular product can be helpful for the
organization in turn significant application to achieve higher customer experience can become
possible. On contrast to this, Mclean, Al-Nabhani and Wilson, (2018) depicted that the most
important aspect which has major role in affecting experience of customer is brand image, price,
quality, availability of substitutes, problem solving capacity of organization, etc. On the basis of
this it can be specified that organization need to focus on having appropriate extent of
availability of these components in turn positive outcome can be derived.
According to Becker, and Jaakkola (2020) in order to meet higher extent higher of customer
experience firm faces various issues which are needed to be involved into consideration by
organization. The challenges are serve as barrier for CX which has to be evaluated by firm for
overcoming its impact. This comprises data visibility and outdated documentations. To become
successful in achieving customer experience there should be p[roper application of gaining data
visibility & outdated documentations as it creates trustworthiness. On the other side Khan and
et.al., (2020) there are larger number of barriers which are required to be included while
formulation of plan so that proper modification can be executed to improve performance of firm.
Management of company, employees training & development, improper management of cost,
ineffective pricing strategy, non crucial collection of marketing data for making significant
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business decision. From the evaluation it can be specified that these challenges are required to
be overcome for having proper functioning of company. From the evaluation of this, it can be
specified that these are the major issues which can lead to create few complications.
As per the views of Manthiou (2020) there are several ways in which firm can improve
current ability to attain CX. The one of the most important factor which is required to be
included for improving CX is empowering employees so that higher extent of potential for
accomplishing roles and responsibilities. In against to this, Kuppelwieser and Klaus (2021) said
that continuous improvement can be exerted by offering personalized service and ensuring
appropriate application feedback mechanism. On the other side, Cambra-Fierro and et.al.,
(2021) articulated that valuing employees ideas and enhancing omni channel mindset can
provide assistance in modifying CX.
RESEARCH METHODOLOGY
This is concerned with analyzing which type of study will be done by selecting
between qualitative & quantitative.
Quantitative methodology
This method s helpful in collecting & analyzing numerical data for accomplishing
objectives of particular study. It is basically using pattern, predictions, cause effect relationship
between variables, etc. The particular method is helpful in gathering numerical and facts by
applying SPSS technique in turn depth study can be formulated. For the current study it is not
helpful as assessing impact of customer experience is theoretical concept.
Qualitative methodology
It is one of the significant type of research which is associated with obtaining information in
non-numerical pattern. This is utilized to gather experience, knowledge, opinion and studying
theoretical concept. The particular research is suitable for the current study as ascertaining
impact of customers experience in retail sector. It is useful for focusing on theoretical views of
customers regarding factors affecting experience, challenges arriving in meeting CX, etc. On the
basis of this, it can be said that scholar with help of this particular research type can accomplish
highlighted objectives.
Primary data
It is one of the way of collecting data to achieve objectives of particular research. It is
related with gathering information which has been collected for particular research. In addition
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to this, the information collected has not been used for other purposes. The tolls which can be
utilized by scholar for gathering data involves survey, interview, etc. so that questionnaire and
checklist can be prepared. For the present study scholar has gathered information from 20
customers of specified organization through spreading questionnaire. It can play crucial role in
understanding their factors affecting their experience, etc. This contributes in formulating
relevant & reliable study so that improving performance of organization through executing
significant strategy can become possible.
Secondary data
The data which has been used prior for any specific objective and currently available on
several platforms. This can be obtained by referring journal, article, books, etc. Secondary data
is highly useful in supporting the particular research through connecting with theories so that
depth information regarding highlighted subject matter can become possible. For the current
study copy right sources has been utilized for accomplishing objectives like understanding
concept, significance, factors affecting, etc.
FINDING AND ANALYSIS
Theme 1: £1000-2000 annual household income
Particulars Respondents
Responses
in %
£1000-2000 7 35.00%
£2000-3000 5 25.00%
£3000-4000 3 15.00%
£4000-5000 2 10.00%
Above £5000 3 15.00%
Total 20 100.00%
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Theme 2: From 5-10 years customer use the products and services of Costco company
Particulars Respondents
Responses
in %
0-5 year 3 15%
5-10 years 10 50.00%
10 and above years 7 35.00%
Total 20 100.00%
Theme 3: Impractical word used by you for describing your quality of products or services
Particulars Respondents
Responses
in %
Reliable 7 35.00%
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Impractical 8 40.00%
High quality 2 10.00%
Poor quality 1 5.00%
Good value for money 2 10.00%
Total 20 100.00%
Theme 4: Weekly purchase from Costco company
Particulars Respondents
Responses
in %
Weekly 10 50.00%
monthly 2 10.00%
Yearly 5 25.00%
More than year 3 15.00%
Total 20 100.00%
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Theme 5: 1-2 rate has been given for product meeting needs as per 1-10 scale
Particulars Respondents
Responses
in %
1-2 rate 8 40.00%
2-3 rate 2 10.00%
3-4 rate 1 5.00%
4-5 rate 3 15.00%
5 and above rate 6 30.00%
Total 20 100.00%
Theme 6: Price is required to solve for offerings of company
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Particulars Respondents
Responses
in %
Price 9 45.00%
Quality 1 5.00%
Communication method 5 25.00%
Employees attitude 2 10.00%
other 3 15.00%
Total 20 100.00%
Theme 7: About as easy as expected easy for customers to navigate with company on
digital platform
Particulars Respondents
Responses
in %
Very difficult 5 25.00%
Somewhat difficult 5 25.00%
About as easy as expected 7 35.00%
Somewhat easy 2 10.00%
Very easy 1 5.00%
Total 20 100.00%
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Theme 8: Somewhat fairly has been chosen by customers for effective employees are
capable of managing your requirements through offering correct suggestion for
purchasing
Particulars Respondents
Responses
in %
Extremely fairly 4 20.00%
Very fairly 3 15.00%
Somewhat fairly 10 50.00%
Not so fairly 2 10.00%
Not at all fairly 1 5.00%
Total 20 100.00%
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Theme 9: Significant pricing strategy is factor for choosing competitors products.
Particulars Respondents
Responses
in %
Quality 5 25.00%
Effective communication 3 15.00%
significant pricing strategy 10 50.00%
Vast product range 2 10.00%
Total 20 100.00%
DISCUSSION
From the evaluation of the above presented table it can be articulated that £1000-2000 is
highly selected. With the analysis of the finding it is clear that the customer experience is very
necessary in order to gain success by the company. in case the consumer will not be satisfied
then this will be affecting the working efficiency of the business. With the analysis of finding it
was evaluated that the majority of the people were having low annual household income. Further
it was also evaluated that the maximum of the respondent was using provided and services of
company for 5 – 10 years. It can be validated by opinion of Mohd-Ramly and Omar, (2017)
there are several factors which are required to be taken into consideration for having depth
evaluation of customer experience. Connection with company, numbers of years of purchase, etc
factor highly influence scion making process of customer and as well affect experience.
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The above illustrated table indicates that weekly shopping, impractical, 1-2 rate scale and
pricing strategy, etc are chosen by customers. On the basis of this it can be specified that
customers highly get affected from these elements which has influence on the experience of
clients. Somewhat fairly and significant pricing strategy is considered to be positive response
from the customers has been identified. It can be justified with the opinion of Bustamante and
Rubio (2017) that there are several elements which are needed to be involved in decision-
making process of firm. The reason behind by considering this is to have relevant components
for positively affecting customers.
Recommendations
 It is suggested to the specified organization to execute appropriate situational & market
analysis so that proper information regarding customers can be derived. The main
reason behind applying this approach is to have relevant information regarding
prevailing trends, competitive edge, etc. This can be helpful in gaining proper
information to make strategic decision.
 This is advised to have proper feedback mechanism so that actual reviews of clients can
be derived to analyses actual views and experience. It can lead firm towards significant
formulation of products, strategy, etc. In turn relevant offerings can be made to attract
larger number of clients.
 It is recommended to the specified firm to have proper implementation of digital
practices to incline customers satisfaction through offering larger extent of benefits. The
advantages encourages buyers to prefer company's offerings.
CONCLUSION
From the above report it can be concluded having positive customer experience is
highly essential for having competitive benefits. The current study has involved research
objectives and questions. It has given emphasis on literature review for providing detailed
information. This has included research type like quantitative, qualitative, primary and
secondary data. Questionnaire has been sent for gathering information regarding their
experience. The data has been presented and discussed along with recommendations.
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REFERENCES
Books and Journals
Becker, L. and Jaakkola, E., 2020. Customer experience: fundamental premises and implications
for research. Journal of the Academy of Marketing Science,. 48(4). pp.630-648.
Bueno, E. V., and et.al., 2019. Measuring customer experience in service: A systematic
review. The Service Industries Journal. 39(11-12). pp.779-798.
Bustamante, J. C. and Rubio, N., 2017. Measuring customer experience in physical retail
environments. Journal of Service Management.
Cambra-Fierro, J., and et.al., 2021. How do firms handle variability in customer experience? A
dynamic approach to better understanding customer retention. Journal of Retailing and
Consumer Services. 61. p.102578.
Hoyer, W. D. and et.al., 2020. Transforming the customer experience through new
technologies. Journal of Interactive Marketing. 51. pp.57-71.
Khan, I., and et.al., 2020. Customer experience and commitment in retailing: Does customer age
matter?. Journal of Retailing and Consumer Services. 57. p.102219.
Kuppelwieser, V. G. and Klaus, P., 2021. Measuring customer experience quality: The EXQ
scale revisited. Journal of Business Research. 126. pp.624-633.
Manthiou, A., 2020. Applying the EEE customer mindset in luxury: reevaluating customer
experience research and practice during and after corona. Journal of Service
Management.
McColl-Kennedy, J. R., and et.al., 2019. Gaining customer experience insights that
matter. Journal of Service Research. 22(1). pp.8-26.
Mclean, G., Al-Nabhani, K. and Wilson, A., 2018. Developing a mobile applications customer
experience model (MACE)-implications for retailers. Journal of Business Research. 85.
pp.325-336.
Mohd-Ramly, S. and Omar, N.A., 2017. Exploring the influence of store attributes on customer
experience and customer engagement. International Journal of Retail & Distribution
Management.
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APPENDIX
Questionnaire
1. What is approximately annual household income?
 £1000-2000
 £2000-3000
 £3000-4000
 £4000-5000
 Above £5000
2. How often you use the products and services of Costco company?
 0-5 year
 5-10 years
 10and above years
3. Which of the following word will be use by you for describing your quality of products
or services ?
 Reliable
 Impractical
 High quality
 Poor quality
 Good value for money
4. How often you purchase from Costco company?
 Weekly
 monthly
 Yearly
 More than year
5. How well the product meets your needs as per 1-10 scale?
 1-2 rate
 2-3 rate
 3-4 rate
 4-5 rate
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 5 and above rate
6. What is the problem you would like to solve regarding offers of company ?
 Price
 Quality
 Communication method
 Employees attitude
 other
7. How easy for you to navigate with company on digital platform?
 Very difficult
 Somewhat difficult
 About as easy as expected
 Somewhat easy
 Very easy
8. How effective employees are capable of managing your requirements through offering
correct suggestion for purchasing?
 Extremely fairly
 Very fairly
 Somewhat fairly
 Not so fairly
 Not at all fairly
9. Why do you choose the products of competitors?
 Quality
 Effective communication
 Significant pricing strategy
 Vast product range
10. Any recommendations
…………..
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