Analyzing Discount Impact on Attracting Customers: A Supermarket Study

This report investigates the impact of discounts on attracting potential customers to supermarkets, with a specific focus on Home Bargains. The research employs both primary and secondary data collection methods, including surveys and questionnaires administered to 10 customers, to gather insights into customer preferences and behaviors. The study explores the significance of price strategies, product quality, and the influence of discount types (trade and cash) on customer purchasing decisions. Key findings reveal that while quality of products is a major factor, discounts significantly impact customer attraction and loyalty. The analysis also examines customer preferences for different supermarkets, including Tesco, Sainsbury's, and ASDA. The report concludes with recommendations for Home Bargains to enhance customer attraction through effective discount strategies and competitive pricing.

Individual business report and
presentation

Executive summary
Researcher has collected various informations and data from primary and secondary data
collection with its main o0bjective of attracting customers through discount towards home
bargains supermarket. It is very important for researcher to have enough and proper knowledge
of research and its selected topic. Discount rate affects supermarkets in various manner. With the
help of discount it increased their sales and productivity. It collected data with primary data
collection on the basis of customers demographic including gender, age, education and average
spending. There are various factors that helped the manager of supermarket in achieving their
goals includes: price strategy, quality of products, distance and location of super market etc.
From the survey it identifies the reason of customers of purchasing groceries from supermarket
and the factors which affected them the most. B&M and home bargains are rapidly increasing
supermarkets which wanted to provide trade and cash discounts to their potential customers for
competing with big supermarkets such as Tesco, Sainsbury, Morrison etc. Survey helped them in
identifying the views of their selected customers. They selected 10 customers for conducting
their research and asked questions related to importance of discount and the reason for selecting
supermarket for shopping. Researcher collected Secondary data by internet, company's websites
and journals. After identifying and research it also recommended and suggested to the
supermarket about the adopting ways and techniques for more attracting customers.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
MAIN BODY...................................................................................................................................2
Primary data collection...............................................................................................................2
Data analysis...............................................................................................................................3
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................9

Topic: To identify the impact of discount on attracting potential customers. A Study is based on
supermarket
INTRODUCTION
Background
A discount can be referred as a deduction in the usual price of something. There are two
types of discount which are given by supermarket such as trade discount and cash discount.
Trade discount is given to the customers at the time of purchase. With the help of cash and trade
discount, Home bargains supermarket attract higher level of customers as they provide higher
quality of products at lower price. The main aim of providing discount is to retain and attract
potential customers (Price, 2018). This study will show about the importance of discount for
supermarkets and home bargains but there is no requirement for big supermarkets like Tesco,
Sainsbury & ASDA to provide discount to their customers. On the other hand it is very important
for home bargains supermarket to offer discount to their customers in order to compete with big
supermarkets by attracting large number of customers.
Research questions
 What is the importance of discount?
 What are the different methods of discount?
 What is the main concept & meaning of discount?
Aim
 To identify the impact of discount on attracting customers.
Objectives
 To understand the main importance of discount in order to attract potential customers.
 To analyse the best method of discount for increasing sales by attracting customers
towards supermarket.
 To examine the meaning & concept of discount.
Project scope
The main aim of this project is to attract customer for increasing sales and for this,
researcher uses various skills like effective communication skill. With the help of this skill they

convey their message to customers and people (Toms, 2015). In this project, researcher also uses
information collection methods including primary and secondary for home bargain and biggest
supermarkets.
MAIN BODY
Primary data collection
It is a method of collecting data with the aim of making an effective and appropriate
decisions for business. Researcher has used this method by using questionnaires and survey.
Researcher collected data by asking frequent questions related discounts and supermarkets and
their opinion of choosing supermarket for shopping. From 10 customers and participants they
asked questions. The main aim of using this data collection method is to collect informations
related discount (Bernard, 2017). With the help of primary data collection, researcher found the
answers from customers which helped them in their further process.
Research design
A research design is a framework and plan of procedures and methods which are being
used by the researcher in analysing measures of different variables. This research design can be
divided into 4 main parts such as correlation, descriptive, experimental and semi experimental.
For this research, researcher has used the descriptive type of research because it describes the
nature and behaviour of a particular subject in an effective manner (García-Gusano and et.al.,
2016). This research design is a scientific method and this method make researcher able to
understand the factors and importance of discount in order to attract customers.
Sampling
Sample can be defined as a group of people which researcher select from their further
research and from knowing the views and answers from a large population. This sampling can be
divided into various parts. The main two type of sampling are simple random sampling and
probabilistic sampling. Researcher has selected probabilistic or random sampling for this
research. The main aim of choosing this method is that it is an effective method because each
candidate and participant are being given an equal right for selecting and providing their opinion
without influencing. It also helps them in achieving their determined objective as to understand
the impact of discount on attracting customers for supermarkets.
Data collection

Data collection is the method of collecting informations including primary data and
secondary data collection. It includes various methods by which a researcher can collect data and
informations such as questionnaires, role playing, observation etc. Primary data collection also
divided into two parts such as qualitative and quantitative. Researcher has used quantitate
primary data collection. Quantitative data collected by survey and by asking frequent question
for knowing their opinion about a particular issue. qualitative method is associated with
emotions and feeling of people (Flaherty, Honeycutt and Powers, 2015). On the other hand
quantitative method is based on the numerical and mathematical calculations. It has also used pie
chart, line and pie chart. For the further study, secondary data also play an important role in order
to increase the reliability and validity of research. Secondary data is already published in
magazines, books, Websites and online portals. Researcher use this data collection method for
effectiveness and for gaining better results. For this research, research has used both primary and
secondary data collection.
Ethical consideration
It is the most important part of the research. Ethics are the norms that helps researcher in
identifying the difference between right and wrong. There are some important ethical concerns
which need to be taken into account in qualitative research are confidentially, anonymity &
informed consent. The main importance of ethical consideration in research is it helps and
prevents against the falsifying of data. It also helps them in collaborative working as it
encourages the environment of accountability, trust among researchers. It is important because
with the help of following rules of ethics, researcher can keep away himself from problems and
issues that arises in processing of research such as data sharing, confidentially and copyright
guidelines (Wickham, 2016). It can also avoid any type of misleading in information. Hence,
ethical consideration are very important for researcher to follow.
Data analysis
Data analysis is a procedure of transforming and inspecting data with the main aim of
discovering effective and useful information for decision making. After collecting the data it is
important for researcher to inspect and transform the data. Discussion and findings also play an
important role in research. The main purpose of this research and data analysis is to interpret and
also describe the significance of feelings. There are some methods of data analysis such as text

analytical, business intelligence & data visualizations. It is important for researcher in order to
correct the outliers and unwanted information (Berry, Brown and Stojanovich, 2016).
Primary data
Theme 1: Which factor you consider while purchasing products?
Particular Participant
Price 4
Quality of products 6
Interpretation
From the above survey it can be interpreted that out of 10 candidates, 4 candidates said
and preferred prices factors which they consider while purchasing products. On the other hand 6
candidates said and preferred quality of products over price of product. They said that they
choose their products on the basis of quality of product which big supermarkets like Tesco,
Sainsbury provide them.
Theme 2: Is it important for supermarkets to be socially responsible?
Particular Participant
Yes 8
No 2
Price Quality of products
0
1
2
3
4
5
6
Column B

Interpretation
From the above survey conducted on 10 participants it can be interpreted that out of 10
candidates, 8 candidates said that supermarket should be socially responsible and the big
supermarkets of UK like Tesco and Morrison work with communities in local area. It is
important because it increases their loyalty and honesty. On the other hand 2 candidate said that
they should not be socially responsible.
Theme 3: The best supermarket from you shop the most?
Particular Participant
Tesco 4
Asda 1
Co-operative 2
Sainsbury 3
Yes
No

Interpretation
From the above survey conducted on 10 participants it can be interpreted that out of 10
candidates, 4 candidates choose and prefer to go at Tesco for shopping as they told various
importance and reason of selecting Tesco. Tesco provides good quality products at good and
affordable prices and have the good image. Whereas, 3 candidates selected Sainsbury for
shopping and 2 candidates like to go co-operative for purchasing goods. Only 1 candidate out of
10 candidate selected ASDA supermarket for their shopping.
Theme 4: Impacts of discount on customers?
Particular Participant
Great amount of savings 7
Increase loyalty 3
Tesco Asda Co-operative Sainsbury
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Column B

Interpretation
From the above survey conducted on 10 participants it can be interpreted that out of 10
candidates, 7 candidates told the reason and impact of discount which home bargains provide
and big supermarket give them while purchasing products such as it helps them in savings. 3
candidates said that it increases their loyalty. They believe that it keep connected with them from
supermarkets. If supermarkets provide them discount then they feel respected.
Theme 5: The best method or techniques you like of discount?
Particular Participant
Trade discount 4
Cash discount 6
Great amount of savings
Increase loyalty

Interpretation
From the above survey conducted on 10 candidates it can be interpreted that out of 10
candidates, 4 participants choose trade discount method over cash discount. They also told the
reason and importance of choosing trade discount. Trade discount is good for business and
customers as they save their money as it is given at the time of purchasing. On the other hand 6
candidates said that they prefer cash discount as it is a deduction in the purchase price of
products. Trade discount is given by the supermarkets on the catalogue price and cash discount is
given on the invoice price.
Theme 6: Preference to do your grocery shopping?
Particular Participant
Local corner shops 2
Supermarket 4
Online 4
Trade discount Cash discount
0
1
2
3
4
5
6
7
Column B

Interpretation
From the above survey conducted on 10 candidates on the question of their preference for
selecting shops for grocery shopping, it can be interpreted that out of 10 candidates, 2
participants choose local corner shop and they said that they like to go at their local corner shop
for grocery shopping because it consume their time. Whereas, 4 candidates said that they like to
go in supermarket because they can purchase anything from one place and they also provide
fresh and good quality products. 4 consumers said that they prefer to shop grocery from online
because it is the easiest and cheapest way of shopping and it also consume their time.
Theme 7: Which supermarket you think is most low priced?
Particular Participant
Sainsbury 3
Tesco 5
Morrisons 2
Local corner shops Supermarket Online
0
0.5
1
1.5
2
2.5
3
3.5
4
Column B