Evaluating Discount Offers on Magazine Sales: The Economist Case

This research proposal examines customer responses to discount offers on magazine sales, specifically focusing on The Economist. The study aims to evaluate how discounts influence buyer behavior and sales, identifying factors affecting customer decisions. The proposal outlines research objectives, questions, and rationale, highlighting the significance of understanding customer reactions to pricing strategies in a competitive market. The methodology section details the chosen research approach (inductive), philosophy (interpretivism), and design, including data collection methods, sampling techniques, and data analysis procedures. The study will explore the impact of discounts on sales and offer recommendations for enhancing promotional strategies to attract more readers. The literature review covers buyer behavior, factors influencing consumer choices, and the role of social and personal factors in shaping purchasing decisions. The Gantt chart provides a timeline for the research process, and references are included to support the study's foundation.

RESEARCH PROPOSAL
ON
EVALUATING CUSTOMER RESPONSE TO DISCOUNT
OFFERS ON MAGAZINE SALES:
A CASE STUDY OF THE ECONOMIST

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Title:.......................................................................................................................................1
Background of the study.........................................................................................................1
Research aims and objectives.................................................................................................2
Research questions.................................................................................................................2
Research rationale..................................................................................................................3
LITERATURE REVIEW................................................................................................................3
Introduction............................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................5
Introduction............................................................................................................................5
Research Approach.................................................................................................................5
Research Philosophy..............................................................................................................5
Research Design.....................................................................................................................5
Data Collection.......................................................................................................................6
Sampling.................................................................................................................................6
Data Analysis..........................................................................................................................6
Ethical Consideration.............................................................................................................7
Research limitation.................................................................................................................7
GANTT CHART.............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Title:
“To evaluate the customer response to discount offers on magazines sales: a case study of The
Economist”.
Background of the study
Customer response is the reaction that buyers give when they are confronted with specific
type of goods and services. In addition to this, Watson, McCarthy and Rowley, 2013 have stated
that “Customer response is the reaction which buyers give after seeing the sales promotional
activity of firm” (Watson, McCarthy and Rowley, 2013). In this context, it can be said that for
any firm the techniques used for marketing the goods and services plays very crucial role. This is
because, with the help of given means only organization will be able to direct its efforts with
regard to attract large number of buyers in an effective manner. Thus, by complying with the
given type of activity corporation performs significant improvement in their sales and profits.
Furthermore, it has also being examined by the researchers that the response as being
carried out by the customers depend upon different type of instances such as positive and
negative image about product, price and the quality of product offered etc. It is due to the fact
that, these all given factors plays very critical role in terms of shaping the responses of buyers in
an appropriate manner. In this regard, it has been stated by the Dung Paul, 2015 that “The
responses being given by the buyers largely depends upon the price and quality of product
offered” (Dung Paul, 2015). The given thing specified is correct. This is because, while making
decision with respect to purchase the particular products and services of firm, customer gives
importance to the given factors such as price and quality. Here, on the basis of given factor only
customers carry out comparison between the products which is offered by number of firms.
Through this way, they make the selection of an effective product.
In addition to this, among varied approaches to sales promotion the discounts offered by
firm upon the product also plays very critical role in changing the responses of customers. In
accordance with the given context, it has been seen that customer generally give positive
response toward the products when it can be purchased by them at discounted prices. Thus, it can
be said that discounting is the most common tactic which is employed by many firms for the
purpose to increase the sales of their products and services. However, it has also being seen that
the responses of the customers also depend upon the product on which discount is offered.
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For instance, the buyers who do not like to read the particular magazine will not give
positive response even if firm offers discounts upon its magazines (Balaghar, Majidazar and
Niromand, 2012). Thus, it is correct to say that the responses as being given by the buyers vary
from one industry to other.
For the present study, The Economist magazine is selected. It is the English language
weekly newspaper which is owned by Economist group. Furthermore, the magazine was found
in the year 1843 by James Wilson. The main problem of this study is to identify that whether the
discount offers helps in raising the sales of magazines or not. Furthermore, the study will also
determine the ways with the help of which the sales of The Economist magazines can be
improved.
Research aims and objectives
The main aim behind conducting the given research is to evaluate the customer response
to discount offers on magazines sales: a case study of The Economist. In order to achieve the
given aim, following objectives are set:
 To assess the behavior as being carried out by the buyers who purchase magazines.
 To identify varied factors which leads to influence the behavior of buyers.
 To recommend the ways to improve the discount offers as being made by firms with an
aim to attract more readers towards magazine.
Research questions
By framing the research question, the direction of researcher can be set towards the
specific aspect. Thus, it is by complying with given type of activity only framed aims and
objectives of the study can be met. In accordance with the given context, following research
questions are framed:
 How the buyers of The Economist magazine do behaves?
 What are the varied factors which lead to influence the behavior of The Economist
buyers?
 How discount offered by the company can be improved in order to attract more readers?
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Research rationale
The main issue of this research is to assess that whether the discounts offers given on The
Economist magazines changes the responses of cited firm buyers or not. Here, researcher will
basically assess that whether the sales of corporation is influenced through discount offers or not.
It is an issue because there are many firms that offer varied type of discounts. On doing so, the
major problem which arises in front of corporation is that whether it helps in raising the sales and
profitability related condition of firm or not (Danaher and Rossiter, 2011).
It an issue now because of the presence of varied changes in book selling market. Now a
days consumers can download books or magazines via online means. This type of condition
raises competition between firms who will not comply with given mean of selling. It is due to the
presence of given aspect, corporation have to make decision with regard to offers discount upon
their product (Greco, 2013). This is done with an aim to change the response of buyers.
The study will shed light on the positive and negative responses associated with the
discount offers that corporation can use for the purpose to raise the sales of their goods and
services.
LITERATURE REVIEW
Introduction
This section of study will examine number of secondary sources with an aim to get in-
depth insight into the given study. The main behind the formation of this section is to analyze
and examines the past studies as being given by varied other researchers upon the given topic.
For the present study, secondary means such as books, company magazines and online articles
are selected.
Meaning of buyer’s behavior
According to the view point of Albuquerque and et.al., 2012 “Buyer behavior is the
systematic approach or process which customers follows while making the decision about the
purchasing of specific goods and services” (Albuquerque and et.al., 2012). In addition to this,
Runfola, Rosati and Guercini, 2013 have stated that “ Buyer behavior consists of number of
activities which manager of firm uses with an aim to get information about the behavior as being
carried out by the buyers” (Runfola, Rosati and Guercini, 2013). In accordance with the given
context, it can be said that for the firm it is very essential that it must improve its employee’s
knowledge regarding the purchase decision making process which is being followed by its
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buyers. This is because, through this way corporation can gather information about the factors
which leads to influence the behavior of their respective buyers. Thereby, the firm can make
measures with regard to change the behavior of its customers in an effective way. Through this
way, corporation can also gain benefits in the form of increased profits and sales.
Factors influences the buyer behaviors
There are number of factors are assessed which leads to influence the behavior of buyers.
In this regard, as per the view point of Watson, McCarthy and Rowley, 2013 “The behavior as
being carried out by the buyers is largely influenced through the social factors which involves
the friends and family members of customers” (Watson, McCarthy and Rowley, 2013). The
statement as being depicted by the given author is correct. This is because, it has been seen that
the buyers preferences with regard to purchase the specific product of firm is thoroughly depends
upon the peer group. For instance, the family members of buyers like to purchase specific type of
magazine. At that time, while making the decision of purchase the customer will also give first
preferences to the particular magazine which is being used by its family members.
In addition to this, Balaghar, Majidazar and Niromand, 2012 have stated that “The social
group of buyers plays very crucial role in terms of shaping the attitude of respective customers”
(Balaghar, Majidazar and Niromand, 2012). The thing which has been specified by the particular
author is also right. For instance, family members of buyers believe that the firm which offers
discount upon its products does not give high quality of goods and services. The given type of
thing leads to develop the negative attitude of buyers towards the discounting related sales
promotional approach. This causes direct impact upon the sales and profitability related
condition of firm.
In addition to this, as per the view point of Dung Paul, 2015 “The behavior of buyers is
also influenced through personal factors which includes age, lifestyle and personality etc” (Dung
Paul, 2015). In this regard, it has been seen that the buyer’s preferences with respect to purchase
specific magazine also depends upon their age. For instance, the individual who ages between
15-25 years prefers to read fashion and other interesting magazines. In the similar way, the
customer who is old generally prefers to gather information about the conditions prevailing in
different and their own nation. Thus, with an aim to assemble the given information they use
varied sources of means. However, the selection with respect to the particular sources largely
depends upon their preferences which is influenced by peer group (Runfola, Rosati and
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Guercini, 2013). Overall, it can be stated that these are being regarded as the major factors which
leads to influence the behavior of buyers. Thus, for the corporation it is essential that it must
gather full-fledged information about the given factors while formulating their business strategy.
RESEARCH METHODOLOGY
Introduction
This section involves discussion regarding the methods and tools that will be used at the
time of conducting research as part of attaining the results. Here, discussion is done on research
approach, philosophy, design, data collection and data analysis section.
Research Approach
Research approach can be articulated as a mode through which research can be conducted
in order to attain the actual outcomes. In this respect, there are two sort of approach namely
inductive and deductive that supports researcher ion framing the path for research. Considering
the present research that focuses on evaluating customer response to discount offers of magazine
sales, inductive approach will be taken into account. This is so because it will aids in gaining
specific data from the readers of The Economist through which appropriate results will be
attained (Flick, 2011). Also, it will support in gaining insight about the customer response
towards the products which is been purchased by customers from interest irrespective of its
price.
Research Philosophy
Philosophy refers to perception of researchers towards the investigation that been carried
by him/her. It acts as an assumption based on which whole research is carried out. In this regard,
positivism and interpretivism are two usually used philosophies. In present research,
interpretivism paradigm will be used so that researcher can able to interpret the response that
attained from the readers of cited magazines. Based on it, appropriate results will be developed
that aids in conclusion whether customers attracted towards discount offers of magazines or not.
Also, it will help in answering each of research questions (Hoy, 2009).
Research Design
Design refers to the blueprint of the study through which researcher can able to progress.
It acts as a path that supports researcher from getting deviate from the key aim and objectives. In
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this regard, there are several designs namely descriptive, exploratory, case study, causal and
experimental. Since, present research focuses on evaluating customer responses therefore
descriptive research will be carried out. This is so because it will help in describing the responses
of customers through which actual results can be attained. Additionally, descriptive study will
help in analysing the factors that influences readers to buy particular set of magazine at
discounted price (Saunders and et. al., 2006).
Data Collection
Data need to be collected for any research so that it can be analysed as part of developing
results. In this regard, primary and secondary are two sources through which data can be
accumulated. In present study, both sources will be used so that research required set of
information can be attained. Under primary source, data will be collected through survey method
in which questionnaire will be used as research instruments. Questionnaire will be floated
through email ID of readers of The Economist so that their responses can be collected. Email ID
will be collected from the Facebook fan page of The Economist. Focus will be laid here to
choose readers that belongs to UK region so that appropriate and streamline findings can be
attained. Apart from this, data will be collected from varied secondary sources as well such as
books, journals, magazines, online articles, newspaper and other related.
Sampling
Sampling is a practice of dividing whole population into small number so that data can be
collected it. Here, probabilistic and non-probabilistic are two sort of options that can be used for
sampling and it depends upon the nature and perception of researcher (Jonker and Pennink,
2010). With this scenario, present study will incorporate probabilistic sampling in which
systematic technique will be engaged. Under this, specific number of email ID will be selected in
order to develop a sample. In this regard, sample size of 50 readers has been determined by the
researcher so that handful amount of information can be attained.
Data Analysis
It is required to analyse the data that collected from varied sources so that effectual
results can be developed through it. Data can be analysed either qualitatively or quantitatively. In
present research, quantitative measures will be employed in order to attain unbiased and rationale
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results. To conduct the quantitative analysis, SPSS will be used in which varied statistical tools
can be applied. This will aids in attaining actual results through which whole motive of this
research can be completed (McBurney and White, 2009).
Ethical Consideration
In present research, focus will be laid on ethical aspects also so that it can be conduct
without hampering the interest of any participants. In this regard, data will be stored in secured
manner so that it cannot be accessed by unauthorized individual. Further, data will be used for
research purpose only and same will be destroyed once the research purpose will gets completed.
Also, no biased and manipulation of data will be done (Golafshani, 2003).
Research limitation
Time and finance will be regarded as the two major type of limitation for this study. In
order to carry out the research in an effective manner researcher will require the sufficient
amount of time. Here, time is needed in order to collect and interpret the data of the given study.
Furthermore, in order to conduct the research sufficient amount of finance is also required by
scholar.
GANTT CHART
Activity 1st
Month
2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Mont
h
To prepare research plan
Study introduction
Research objective
Literature review
Research methodology
Data collection
Data analysis
Conclusions and
recommendation
Reviewing the whole report
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Final submission
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