Evaluating Customer Satisfaction and Sales at Tesco PLC: Research

This business research plan investigates the significant impact of customer satisfaction on sales and profit margin ratios within Tesco PLC. The study emphasizes customer satisfaction as a critical factor for business success, highlighting its influence on overall performance and profitability. The report explores the concept of customer satisfaction, its significance for business growth, and the factors affecting it in the retail sector, such as product quality, pricing, and service. It examines various tools and techniques for measuring and enhancing customer satisfaction, including feedback options, questionnaires, and email surveys, and recommends strategies to improve customer satisfaction levels. The research also focuses on employee motivation, brand loyalty, and the importance of providing excellent customer service to gain a competitive advantage. The research methodology involves identifying major factors affecting customer satisfaction within the retail sector and aims to evaluate the significance of customer satisfaction, investigate contributing factors, examine adopted tools and techniques, and recommend ways for Tesco PLC to enhance its customer satisfaction levels.

BUSINESS RESEARCH
PLAN
1

EXECUTIVE SUMMARY
In the present investigation, customer satisfaction impact on the sales and profit margin
ratio in context to Tesco PLC has been evaluated effectively. Study indicates that customers
satisfaction is one of critical aspect which need to be referred effectively from every business
organization. Success of every organization is also dependent over the key aspect of customer
satisfaction. If customer satisfaction within Tesco PLC is not appropriate then overall
performance might get influenced in negative manner. Along with this, profit margin ratio and
other key essential elements also get affected in negative manner. Study also reflects that if
customer satisfaction is higher, then profitability of company also gets increase. It has been
identified in the report that satisfaction level can be improved through improved focus on brand
loyalty improvement. It is necessary for management to create trust among customers so that
they feel attracted to purchase products and services. Along with this, the training can also be
provided to employees in order to make sure that skills are improved in order to amend customer
service standards.
2

TABLE OF CONTENT
Business Research Plan....................................................................................................................1
EXECUTIVE SUMMARY.............................................................................................................2
Table of Content..............................................................................................................................3
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Concept of customer satisfaction.................................................................................................4
Significance of customer satisfaction for business growth..........................................................5
Factors affecting customer satisfaction in retail sector................................................................6
Tools and techniques of customers satisfaction...........................................................................6
Ways to enhance customer satisfaction level...............................................................................7
AIM AND OBJECTIVES................................................................................................................8
RESEARCH METHODOLOGY.....................................................................................................8
Time table......................................................................................................................................12
REFERENCES..............................................................................................................................15
3

INTRODUCTION
Key topics that were developed during the work includes impact of customer satisfaction
on sales and profitability, link between employee motivation and customers satisfaction, etc.
Retail sector is having an impressive level of success and they are continuously focused towards
internationalization. Present study is focused towards customer satisfaction impact on the sales
and profit margin ratio of Tesco PLC. In order to have effective success the management need to
focus on customer satisfaction level. It can be considered as one of key reason behind the
selection of topic (Oum and Yu, 2012). It has been noticed that one of the key reason behind
carrying out this research is that in the present era, acquiring high degree of customer satisfaction
has become essential for every organization.
Key reason behind the selection of organization as a Tesco PLC is that it is one of leading
business firm in the retail sector. It has been noticed that organization is continuously focused
towards improvement in standards and work process so that level of customer satisfaction can be
advanced. It means the rationale behind the selection of organization is also appropriate as per
standards. In order to gain competitive advantage the business firm require to understand the key
values in respect to customer service and satisfaction.
LITERATURE REVIEW
Concept of customer satisfaction
According to Beard, 2014, customer satisfaction is very important aspect in order to
expand business and earn the maximum profitability. Every business organization have aim is to
earn maximum profitability which is largely depends upon customer satisfaction. Eisenberg,
2011, if business organization deliver excellent quality of goofs and services and fulfill all
requirement of customer related to particular product then they will highly satisfy by company's
product and services. To support this statement, Schiff, 2015, stated that customer satisfaction is
an abstract aspect which involve various factors as the quality of product, the quality of service
provided, the atmosphere of the location from goods or services are purchased and the prices of
product and services. In the contradictory view, Thau, 2013, stated that customer satisfaction is
not just scope of earning profitability for company but also it is an emotional response by which
people feel after making a purchase from organization. If individuals gain sufficient customer
4

satisfaction from a particular company's product or services then they will go back and buy again
that particular product. According to the view of Feinberg, 2015. , organization requires
considering those aspects which deliver excellent amount of satisfaction to customer. In addition
to this, company can increase customer satisfaction by conduct research about buyers
requirement of specific product or services.
Significance of customer satisfaction for business growth
As per the view of Agbor, 2011.customer satisfaction is significant aspect for every
business organization because company's profitability and progress are largely depends upon
satisfaction level of customers. Organization growth and expansion of business are only possible
when customers are fully satisfied from enterprise products and its quality. Schiff, 2015. stated
that customer satisfaction is important because its a leading indicator of customers repurchase
intentions and loyalty. It means if customer is fully satisfied by particular product or services
then they will make purchase in the future again. According to the view of Patel, 2013 customer
satisfaction is important because it is point of differentiation. It means company's products create
differentiation image when company have large sales of product and services in the competitive
market. An Accenture global customer satisfaction report 2008 it has been founded that price is
not the major reason for customer move from organization. It is actually due to the overall poor
quality of customer services. Gatewood, Feild and Barrick, 2010 stated that customer
satisfaction is significant in order to reduce customer churn. If company render an excellent
quality of services and product then it may reduce the customer move from company. According
to the point of Straub and et.al., 2013. customer satisfaction increases customer lifetime value
because successful business understand the important of customer lifetime value so it tries to
maintain effective lifetime value of customer by deliver healthy and quality product and
services. On the contradictory point of view, Alderighi and et.al., 2012. stated that customer
satisfaction increase numbers of customers of organization because it is a chain through which
one satisfy customer recommend another person to purchase that particular product of particular
company. On the contradictory view of company Straub and et.al., 2013. can gain the highest
profitability and effective goodwill in the market if their customers are fully satisfied from its
product and services. If customer again like to purchase tat particular product that mean
company deliver effective quality product and meet the need of customer.
5

Factors affecting customer satisfaction in retail sector
According to the view of Gatewood, Feild and Barrick, 2010 customer satisfaction is a
very sensitive aspects which can change or fluctuate at any time or by any components. It is
largely depends upon the corporation product quality and features but many of components are
available which can largely affect the level of satisfaction in the customers. Straub and et.al.,
2013 stated that cost of product and services largely affected the customer satisfaction. If
company charge the highest prices from customer which is below their income level then
customer may less satisfied from the company. In contradictory view of Straub and et.al., 2013
he stated that customer satisfaction is large influence by the quality and efficiency of product.
According to his view, prices does not largely affect to the customer satisfaction by quality and
efficiency may largely affect customer mind. If product gives effective services and it have
excellent quality then customer will again purchase that product. According to the view of Koh
and Wich, 2012. attractive prices and discount is the major factor which affect customer
satisfaction. If company offers attractive prices and discount for particular product and services
then many of customer like to purchase. Discount and offers will definitely assist corporation in
order to increase their sales. Most of customer wants to purchase those product which are
available in offer prices so company should focus in this factor. By use of this component
company can increase customer satisfaction level for particular product and services.
Tools and techniques of customers satisfaction
According to the view of Patel, 2013. customer satisfaction can effectively measure by
feedback option. This is the best option of measuring customer satisfaction under which
company provide feedback option to its potential customer. It identifies that particular product or
services is suitable for them or not. Company collects review of customer by use of this method.
On the other hand Morrell, 2013 stated that questionnaire is best option to measure customer
satisfaction under which company provide questionnaire to each potential customer in order to
identify their satisfaction level. Under the document of questionnaire organization mentioned
some question related to particular product and services and ask customer to fill them according
to their experience for that product and services. On the contradictory view Forzano, 2011.
stated that Email survey is more convenient method to measure customer satisfaction as compare
to Questionnaire. In this method, company send email to customer in order to know their review
6

for particular product and services. Google form is an excellent free tool for this purpose by
which company paste some templates about product and services. Customer have to give their
answer according to question which is mentioned in the templates. It is the easy method in order
to identify customer thoughts and suggestion about particular product and services.
Ways to enhance customer satisfaction level
According to Beard, 2014 Respective behavior is the best way to enhance customer
satisfaction. According to this method company should treat with customer as their boss.
Salesman is company representative who is responsible to solve all queries of customer related to
particular product and services. So they should treat with customers as customer are boss of
them. By this method customer can feel that they are very special for company and salesmen
understand the value and important of customers. On the contradictory view, Agbor, 2011 give
his statement that customer satisfaction is only increase by improving the quality of product and
services. If company wants to increase the level of satisfaction abut customers then it should
focus on the requirement of customer for that particular product. According to their needs and
wants organization should provide product quality and features so as they can effectively
satisfied. As view of Thau, 2013., healthy relationship with customer is another best way to
increase customer satisfaction. Under this method company should maintain healthy and
effective relationship with customer. On the other hand Schiff, 2015. stated that company should
provide proper support and crate a link at the time of shopping. It should solve the query of
customer related to particular product and services. In order to support this statement, Agbor,
2011. said that effective sales service increase customer satisfaction also. At the time of
shopping, company should arrange effective facility for solve the answer about product and
services. On the other hand Schiff, 2015. stated that reasonable price is another best method to
increase customer satisfaction. If organization requires to increase customer satisfaction then it
should set the reasonable prices of product so they can easily purchase that product. Most of the
customer want product which is available in the lower prices so company can increase their
satisfaction level by offer reasonable price. According to the view of Gatewood, Feild and
Barrick, 2010, customer satisfaction level can increase if company offer attractive offers and
discount for most likely product. if company offer attractive offers and discount to customer then
many of customer more like to purchase that product and services.
7

AIM AND OBJECTIVES
Aim- To identify major factors affecting customer satisfaction within retail sector: A study on
Tesco PLC
Objectives
 To evaluate the significance of customer satisfaction in Tesco PLC
 To investigate factors contributing in developing consumer satisfaction for Tesco PLC
 To examine tools and techniques of customers satisfaction adopted by the company
 To recommended ways through which Tesco PLC can enhance its customer satisfaction
level
RESEARCH METHODOLOGY
Research methodology is one of the significant and most crucial aspect of research
evaluation which helps in attaining effective and well defined research results for the researcher.
It is a systematic process of undertaking the study to attain well defined results for attaining
research aims in an effective manner. The aim of the present study is to identify major factors
affecting customer satisfaction within retail sector. Specific research techniques which will be
adopted for attaining the same are discussed henceforth.
8

Research philosophy: This aspect of research focuses on developing a strong base to analyse the
tools and techniques which need be adopted for the study for resolving the research issue in a
structured manner. The major categorisation of the philosophies are positivism and
interpretivism are the two major philosophies which are widely adopted by the researchers
(Creswell, 2013). The present study will adopt interpretivism philosophy for the current analysis
which will help in attaining a well-defined result for the business unit. The research aims to
analyse the factors affecting customer satisfaction within consumers in retail sector. In order to
clearly evaluate the results for the same the stated philosophy will be adopted which will help in
effectively attaining the research results. The stated philosophy will be effective for the current
9
Illustration 1: Diagram for philosophy
(Source: Fiegen, 2010)

study as it will help in effectively undertaking the social behaviour and perspective for the stated
aim.
Research approach
After selecting research philosophy the next aspect of the research is to develop research
approach. This aspect focuses on analysing the res reach base to develop research design and
techniques for the study (Davies, 2010). The major research approach adopted in the analysis is
inductive and deductive approach. The prior approach focuses on attaining the research aim by
developing hypothesis. This helps in creating a structured aspect of undertaking the evaluation.
Deductive approach however focuses on attaining the research aim on the basis of questions
developed. This is an effective measure to develop research results on the basis of social
perception.
Research design
Researches are conducted for different aims and purposes. Different research designs can
be adopted within the study to effectively attain the data and develop well defined result for the
study (Flick, 2011). Different research design adopted in the analysis includes descriptive
research, casual research, experimental research, exploratory research etc. The present analysis
will be carried out on the basis of exploratory research design as it will help in attaining effective
results regarding consumer satisfaction factors for the study.
Research type
Qualitative and quantitative are the common research types adopted in the analysis.
Quantitative researches are the one in which researcher use statistical data and information to
attain the results effectively. Qualitative research on the other hand is the one where social
perspective of people is effectively considered and analysed to develop well defined results for
the evaluation (Ivanov, 2009). The aim of the present study is to identify major factors affecting
customer satisfaction within retail sector. In order to attain the stated aim the researcher will
carry out the qualitative study for the topic. This will help in analysing the consumer tastes and
preferences in retail market.
Data collection
Data collection is one of the most crucial and significant part of the analysis. Primary and
secondary data collection are he common measures adopted by the researchers to attain the aim.
10

Secondary data collection for the study will be adopted to effectively attain past data for the
study. Various sources of data collection will be adopted which will include books, journals, past
research data, news articles, magazines, books etc. This will help the research in attaining the
past data in an effective manner (Jonker and Pennink, 2010). The primary data for the study will
be collected from the consumers of Tesco. Consumers will be surveyed through questionnaire
which will create a well-defined growth and development impact on research results. The stated
elements of data collection will be effective for attaining valid and reliable research results for
the analysis.
Sampling
Sampling is referred to be an aided mean to the adopted technique of data collection. In
this particular method, the researcher is hereby required to split the targeted set of population
into smaller units. This in turn assist the investigator to carry out an alleviated research work
with a greater contribution of referred sample size. It is especially in context to the primary
methodology of data collection where the surveyor is hereby required to directly approach the
respondents for interrogating their framed set of queries (Kuada, 2012). There exists two leading
methods of data sampling that are known as probability and non probability techniques of
sampling. The probability method of sampling largely assists in making a random selection of
audiences, whereas, the non probable technique necessitate the investigator to make a purposeful
selection of participants. Thus, with reference to the present investigation, it has focused on a
probability techniques of sampling with a random selection of respondents. In context to which,
the recent survey has referred to 50 customers of Tesco who represented the sample size. It is
basically due to a larger base of customers in Tesco that has become a prime reason behind
selecting this particular technique of random sampling.
Accessibility
It is referred to the accessibility of the research work where the investigator is hereby
postulated by varied validated norms with a reliable depiction of outcomes. In context to which,
a substantial abidance of these two approaches of validity and reliability is referred to be a
foremost concern of the researcher. It is where an investigation demands high level of
dependency on the concentrated set of data that should be perfectly integrated in nature (Daniel
and Sam, 2011). Apart from this, the investigation also tends to demand a valid derivation of
11

statistics that is reliable in nature. Therefore, in context to the present conducted study, the
surveyor has used logical set of information that has together depicted a factual nature of
abidance. Such ethical norms in turn assist the investigator to conclude the obtained outcomes of
the study that together corresponds with its framed objectives. It is also important for the
investigator to ethically protect the gathered set of data where in the recent study, the researcher
is referring to mail the framed questionnaires in the personal ID of the respondents. This will also
tend to defend the attested nature of the study by significantly guarding the data from any
unauthorized users who are not supposed to assess the accumulated statistics.
Ethical Issues
There exists varied ethical issues while conducting the research work. This are referred to
be some major obstacles while conducting the investigation that duly hinders the surveyor to
attain the framed objectives of the research. It is therefore important for the investigator to
incorporate some generous efforts to carry out the study that will together aid them to get rid of
such varied ethical concerns. In context to which, the collected set of data should be stored in a
secured manner that can be assessed by only authentic set of users. Apart from this, the
researcher is together liable to amass the data from only authentic resource (Miller, Birch,
Mauthner and Jessop, 2012). It is basically to eliminate any manipulation of informations where
the respondent's should showcase a focussed interest with no pressurizing consent of answering
the queries. It is with another fundamental sense of avoiding any influential base of information
where the responders should not give divergent answers. With a similar reference to which, the
current study has incorporated high level of ethical standards where it has involved a likely
support of the respondents before including them in the carried study. In context to which, no
forceful measure was made on any of the respondents to make a prior participation in the study.
Confidentiality of data is yet another substantial need to process the advanced effect of the
research (Banks, 2012). The investigator has hereby ensured the safety of the personal views that
were conferred by the responders while carrying out the survey. The data that has been complied
was promptly utilised by the researcher with a confidential outlook to serve a timely achievement
of the research aims and objectives.
Significance
12

This section is to define the leading significance of the study where the present research
work is based on identifying such influential factors of business that enhances the satisfaction
level of the customers. Wherein, it is precisely based upon the retail organizations with a
designated firm named Tesco. It is hereby referred to be a vast subject matter that will help to
analyze varied influential factors that directly tends to affect the satisfaction level of customers
by together impacting upon their buying behavior (Goddard and Melville, 2004). This
investigation will further provide a larger base to the researcher to carry out varied other
affiliated studies with a prior scope of getting into distinct service agendas of customer service. It
is where the satisfaction level of consumers is dependent upon large number of factors that are
often related to divergent streams of marketing and promotion, etc. It is therefore with support
of this particular research work where the investigator can discover such varied means that tends
to impact upon the satisfaction level of the customers.
Required Resources
There exists some significant resources to carry out the research work that assists the
investigator to timely attain the stipulated aims and objectives of the survey. These resources are
referred as time, manpower resources and funding to direct the survey into a defined manner. It is
therefore important for the researcher to make a planned usage of these resources where at last,
they are not required to deal with any insufficient measure of the same (Jackson, 2010). A
meticulous availability of information is yet another prime consideration of the researcher. With
reference to which, they are hereby required to refer some authentic resources in both context of
primary and secondary data collection. It is where a non planned approach can atrociously
impact the entire research work as an obstacle mean for attaining its stated aims and objectives.
The surveyor in the current investigation has therefore employed a planed approach to carry out
the study.
TIME TABLE
Research plan for the present study has been explained in the gantt chart below:
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12
Understood and evaluated the research
13

project
Assessed secondary information and detail
study literature and views of several authors
Examined the findings of past research and
facts related to research topic
Determined the objectives and goals of
whole research in order to manage the
further study
Planned the outline and proposal of research
project
Penned information collected form
secondary data and other resources
Designed and developed different
questionnaire with reference to research
topic and aims and objectives of study
Selected of research design and
methodology
Collected of data primary sources
Penned research methodology according to
topic of whole study
Analyzed the information which has been
collected from primary research
Wrote down all study and evaluated the
research project and report
14

Determined findings, conclusion, as well as
facilitation of recommendation about the
study and topic
Initially submitted the research project to
project manager
Evaluated
Created final report with systematic formats
Finally Submitted the report
15

REFERENCES
Books and Journals
Ashford, N., Coutu, P. and Beasley, J., 2013. Airport operations.
Banks, S., 2012. Ethical issues in youth work. Routledge.
Creaton, S., 2014. Ryanair: How a small Irish airline conquered Europe. Aurum Press.
Creswell, J. W., 2013. Qualitative, Quantitative, and Mixed Methods Approaches. 4th ed. SAGE
Publications, Inc.
Daniel, S. P. and Sam, G. A., 2011. Research Methodology. Gyan Publishing House.
Davies, B., 2010. The implications for qualitative research methodology of the struggle between
the individualised subject of phenomenology and the emergent multiplicities of the
poststructuralist subject: the problem of agency. Reconceptualizing Educational Research
Methodology. 1(1).
Fiegen, M. A., 2010. Systematic review of research methods: the case of business instruction.
Reference Services Review. 38(3). pp.385–397.
Flick, U., 2011. Introducing Research Methodology: A Beginner's Guide to Doing a Research
Project. SAGE.
Forzano, L.B., 2011. Research Methods for the Behavioral Sciences. Cengage Learning. pp.
158.
Gatewood, R., Feild, H. and Barrick, M., 2010. Human resource selection. Cengage Learning.
Goddard, W. and Melville, S., 2004. Research Methodology: An Introduction. Juta and Company
Ltd.
Ivanov, D., 2009. DIMA—A research methodology for comprehensive multi-disciplinary
modeling of production and logistics networks. International Journal of Production
Research. 47(5). pp. 1153-1173.
Jackson, S., 2010. Research Methods: A Modular Approach. USA: Cengage Learning.dology in
the social sciences. International journal of social research methodology. 13(1). pp. 55-
70.Johnson, B. and Christensen, L., 2008. Educational research: Quantitative,
qualitative, and mixed approaches. Thousand Oaks, CA: Sage Publications.
Jonker, J., and Pennink, B., 2010. The Essence of Research Methodology. Springer.
16

Klophaus, R., Conrady, R. and Fichert, F., 2012. Low cost carriers going hybrid: Evidence from
Europe. Journal of Air Transport Management. 23. pp.54-58.
Koh, L. P. and Wich, S. A., 2012. Dawn of drone ecology: low-cost autonomous aerial vehicles
for conservation. Tropical Conservation Science. 5(2). pp.121-132.
Kuada, J., 2012. Research Methodology: A Project Guide for University Students. Samfunds
literature.
Lu, W. M. and et.al., 2012. The effects of corporate governance on airline performance:
Production and marketing efficiency perspectives. Transportation Research Part E:
Logistics and Transportation Review. 48(2). pp.529-544.
Miller, T., Birch, M., Mauthner, M. and Jessop, J. eds., 2012. Ethics in qualitative research.
Sage.
Morrell, P. S., 2013. Airline finance. Ashgate Publishing, Ltd..
Oum, T. H. and Yu, C., 2012. Winning airlines: Productivity and cost competitiveness of the
world’s major airlines. Springer Science & Business Media.
Straub, J. and et.al., 2013. OpenOrbiter: A low-cost, educational prototype CubeSat mission
architecture. Machines. 1(1). pp.1-32.
Online
Agbor, J., 2011. The Relationship between Customer Satisfaction and Service Quality: a study of
three Service sectors in Umeå. [PDF]. Available through:
<http://umu.diva-portal.org/smash/get/diva2:448657/FULLTEXT02.pdf>. [Accessed on:
10 December, 2016].
Beard, R., 2014. Why Customer Satisfaction Is Important (6 Reasons). [Online]. Available
through: <http://blog.clientheartbeat.com/why-customer-satisfaction-is-important/>.
[Accessed on: 10 December, 2016].
17