Consumer Perception & Behaviour: Tesco Organic Food Brand Analysis

This report delves into the theoretical aspects of consumer perception, focusing on Tesco's organic food brand. It explores learning theories like classical and operant conditioning, and cognitive theory, examining how these influence consumer buying decisions. Primary data, collected through surveys, reveals consumer satisfaction levels with Tesco's organic food quality and pricing, their attitudes towards celebrity endorsements, and their perception of Tesco's marketing strategies. The report also discusses consumer attitude, balance theory, and the consumer decision-making process, highlighting areas where Tesco excels and areas needing improvement, particularly in leveraging technology and social media for brand awareness. The analysis provides insights into how Tesco can better understand and cater to consumer needs and preferences to maintain and grow its customer base.

THEORETICAL
CONSUMER PERCEPTION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION..............................................................................................................................11
RECOMMENDATION.................................................................................................................12
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................3

INTRODUCTION
Consumer perception is basically a marketing concept with the help of which business
identifies and understand the consumer perception, awareness and knowledge about the company
and its products. Tesco is one of the leading and third largest retailers company in UK and ninth
largest retailer company in the world. The company offer variety of groceries and food products
to its national as well as international customer in which Organic Food product is one. The
behaviour of the customers towards the Tesco Organic food brand generally remain constant
because of the company’s marketing concepts & strategies. Tesco have their operation in UK as
well as 13 more countries which indicate that they have large number of loyal customers. In
order to understand their preferences and offer products as per their taste and demand, Tesco
company uses various consumer perception and behaviour theory such as Cognitive theory etc.
MAIN BODY
Consumer learn about the brand
Learning theory allow the company to understand about the consumer purchase related
decision making approaches. Consumer is very approachable with the proper products and
services that can meet some kind of specific need and requirements of potential customer in
market. Classical conditioning theory state the fact that consumer bying behaviour is highly
influence with the desire of the consumer (Arafat and et.al., 2020). The expectations of the
customer are highly influence element and channelize the buying behaviour of the target
customer in market. This theory specifies about the fact that procurement decision of the
customer is totally depend upon the need and demand consumer hold. Management of Tesco
Company utilise this theory to understand the buying process customer adopt. Theory theory has
directed the organisation to identify the desire and need of the customer in order to influence the
buying processes customers adopted. The expectations and desire customer hold put a massive
impact over the decision making journey of the target customer in market.
Operating conditioning is another learning theory that utilise by the Tesco Company to
understand about the buying decision making practices followed by the customer in respective
target market. This theory has taught to the management about the behaviour of the customer is
influenced with the reward and what company is offering to its customers (Feng and et.al.,
2019). This theory has made the business understand the fact that what Tesco Company is

offering put a massive impact over the decision making journey followed by the customer in
market. This theory has supported the business to implement various discounts policies and
coupons to attract to the customers towards buying the products offer by the venture.
Cognitive theory is also used by the Tesco company to identify various facts about the
buying decision making processes adopted by the customer in market,. This theory specifies the
fact that buying decision of the customer is totally based on knowledge, understanding and
expectations of the customer about the need and requirement customer hold. The level of
knowledge customer hold also put an impact over the purchase decision customer make in
business. This theory directed to the Tesco company to influence to the knowledge and
understanding of the customer by running an attractive marketing campaign.
Evaluation and Analysis of consumer brand satisfaction and perception
In order to evaluate and analyse the data regarding the satisfaction and perception of
consumer towards Tesco brand, primary data is being collected via mean of survey and
questionnaire. The respondent of survey are random customers with the sample size of 50
customers. The analysis of data collection are as follows:
Q.1. Do you buy organic food items offered by Tesco?
Yes 30
No 20
Total 50
Interpretation:

On the basis of above data and graph, it is identified and analysed that majority of
respondent i.e., consumers have said yes that they always buy the organic food items offer by
customers. It is because they believe that Tesco products are best in quality as well as available
at any point of time. Along with the online delivery service of Tesco has always influence them
to buy and became loyal for the company (Mehta, Saxena and Purohit, 2020). But the remaining
40% of consumer’s state that they do not buy their products because of high price as they get the
same products from other company such as Aldi at low cost.
Q.2. Are you satisfied with the quality and price of the organic food items currently offered by
Tesco?
Highly satisfied 20
Satisfied 10
Neutral 5
Dissatisfied 9
Highly dissatisfied 6
Total 50
Interpretation:
On the basis of above data, it is analysed that 20% of consumers are highly satisfied with
the price and quality of organic food items offered by Tesco but 12% are highly dissatisfied with

the current price and quality of Tesco products. There are also 10% of consumers which does not
say anything about Tesco organic food products price and quality. But as majority are highly
satisfied and 18% are satisfied which means that Tesco provide best quality products at
reasonable cost to its customers after analysing the taste and perception of its consumers. It also
means that product quality factor highly influence consumer buying behaviour (Loxton and
et.al., 2020).
Q.3. Do you believe in product which are promoted by celebrity and certain reference group?
Yes 15
No 35
Total 50
Interpretation:
The above data state that consumers do not like the products which are promoted by any
celebrity and reference group such as model etc. It is because majority i.e., 70% of people
believes that celebrity make their body with weight loss pill not with organic food items. Thus, it
is important for the Tesco that they should analyse the believes and perception of their customers
towards the brand promotion by celebrity before announcing them as their brand ambassador.
The company have to understand that customers believes in products which is promoted by
common people not the products promoted by celebrity.

Q.4. As per your opinion which of the consumer behaviour theory is widely used by Tesco to
influence their customers?
Role theory 15
Sociological theory 10
Semiotics theory 20
Self-image theory 5
Total 50
Interpretation:
The above data state that Tesco company widely uses Semiotics theory in order to
influence their customers buying behaviour rather than self-image theory. It is because around
40% of participants has favour for semiotics theory and only 10% has favour self-image theory.
This indicate that Tesco company widely uses their brand name, logo etc. to influence the
customers that their organic food items must be of best quality because it is of Tesco brand
(Indahingwati and et.al., 2019). The company uses this theory to communicate with the
customers about the quality and value of its organic food items which also help the company in
maintain higher customer base.
Q.5. Do you agree with the fact that Tesco uses technology and social media platforms to spread
brand awareness among consumers?

Highly agreed 8
Agreed 12
Neutral 5
Disagreed 15
Highly disagreed 10
Total 50
Interpretation:
On the basis of the above data, it is analysed that the perception of the customers
regarding the Tesco technology and social media marketing implementation is negative. This
indicate that majority of consumers of Tesco think that Tesco unable to use social media
platform for spreading their brand awareness (Nezamova and Olentsova, 2020). It might be
because of the lack of awareness among the consumers regarding their organic products
description, direction, price etc. It is because 30% of respondent has disagreed that they will get
any information regarding Tesco organic food products at social media platforms such as
Facebook, Instagram etc.
Q.6. Do you stick to the Tesco organic food product if they will increase the price of the same?
Up to certain limit 20

Yes 15
No 15
Total 50
Interpretation:
The above data and graph state that 40% of consumers of Tesco will stick to the Organic
food products in case if they will increase their price but up to certain limit only. While 30% of
people say no and 30% say yes on the same question. This indicate that if the company will
increase their price of the products then the sales of organic food product of Tesco are highly get
impacted. It is because price is a factor which majorly influence the buying behaviour and
perception of consumers which need to be understand by company as well.
Consumer attitude and balance theory
Consumer attitude is a perception and behaviour of the customer while making the
procurement decision of the product in respective target market. Today the customer holds the
large amount of option when it comes to selecting a specific brand or entity in order to make a
procurement decision in business. Attitude is all about assessing the ideology of the customer
when it comes to make a buying decision related to product and services Tesco Company offer.
Balance theory o the other hand guide the company to develop the interpersonal relationship in
between company and the customer. Balance theory has directed to the Tesco Company to

develop a positive inter personal relationship between brand and the target customer base
associated with the brand. Establishing a positive inter personal relationship between brands and
the customer allow and support the business to take on the competitive advantage easily
(Kuramoto and et.al., 2018). Company design an attractive campaign related to the marketing
and promotions to establish a positive relationship between company and its target customer
base. The role of the balance theory is to support the buying behaviour of the customer by
offering productive discounts and coupons o the customer as well along with he regular practices
followed by the company.
This would allow and support the business to maximise the overall growth and
development need in he market. Balance theory has wisely supported to Tesco Company to
formulate the positive relationship in between brand and the customer. Also the theory has
allowed the company to take on the competitive advantage irrespective to the level of
competition company face (Ardyan and et.al., 2021). The theory played a massive role for the
company to deisgn and implements the most efficient brand image that could allow the Tesco
Company to gain the customer loyalty in respective target market. Company is planning to
launch its new organic product line that will further support to the concept of balance theory. The
launch of new product line will allow the company to strengthen the relationship between the
brand and target customer in market. Management has involved the concept of balance theory in
designing all its strategies and further to implement the same to gain the competitive advantage
in respective target market.
Decision making Process based on the purchase behaviour
This is a theory which state the decision-making process and behaviour of the consumers
while they go for shopping. This theory is basically used by Tesco to understand the decision-
making process of its customers and identify the factors which influence their purchase
behaviour. The five stage as per this model through which consumer goes while making
purchase decision are: Firstly, Problem recognition, is a stage in which the consumer will decide
whether the particular products highly needed or not. For example, the organic food product of
Tesco passed this stage because organic food is highly demanded by consumers in present world.
Information search is the second stage of decision-making process model which state how

consumers gathered information regarding the products and services. In the present time,
consumers mainly use internet and social media sites to select which product is best (Gursoy,
2019). But, as it is found out from the primary data that consumers do not get much information
about Tesco organic food products from internet thus Tesco has failed in this stage.
Third stage is alternative evaluation which state the consumers weight choices and
products against comparable products in term of price, quality etc. For example, at this stage
consumers of Tesco analyse the organic food items with the other company offering same
products such as Walmart, Sainsbury etc. As the price offer by the Tesco for its organic food
item is reasonable based on quality consumers passed the brand at this stage. But on the other
hand, their competitor name Aldi offer the same product at low price to consumers so in case if
Tesco will increase its product price the consumer will shift their choices to other. Fourth stage is
Purchase decision, which state making actual purchase by consumers. The consumer selects
Tesco brand while purchasing organic food because they get various discounts, sales flat rate,
buy one get one free offer from company. Thus, Tesco also passed at this stage. At last stage of
decision-making process such as post purchase evaluation which state how the company can
know whether they customers are happy with the products or not (Nash, 2019). For example,
Tesco company uses online shopping channels, own websites etc. likes, comments and review
section to analyse whether consumers are happy with the quality and price of organic food or
not. In order to keep all the consumers, engage in future, Tesco company offer vouchers to its
consumer which they can redeem on their next purchase.
CONCLUSION
After summing up above information it is identified that the perception of the consumer
towards the price, quality, reference group, technology, social media apps plays vital role in
influencing the consumer purchase behaviour. The consumers are highly affected and influence
if Tesco changes price of its organic food item because the similar product they can get from
other company as well at low price. It is also identified from the primary research that the
presence of Tesco over the social media sites and internet is low and not high enough that the
consumer able to get information about their organic food items. Thus, Tesco need to increase
their social media marketing campaign in order to increase their brand awareness among

consumers. Lastly, it is also identified that company widely uses semiotics theory to
communicate with customers about their products value.
RECOMMENDATION
In order to improve the consumer experience towards their organic food products, the
following strategies are recommended to Tesco company which they should adopt. This are as
follows:
 Firstly, the company need to increase their social media presence. It means the company
need to launch various campaign covering the information about their organic food
products rather than just covering the information about their financial and operational
strategies. It is because consumers are more interested in products information such as
description, price, quality etc. rather than company expansion (Kizgin and et.al., 2018).
 Further, it is also advisable to Tesco that they should opt for self-image consumer
behaviour theory also within their organization to identify and analyse consumer
perceptions. Beside this, the company also need to hire common people as their brand
ambassador rather than any celebrity on the basis of the outcome of primary research.
 Lastly, it is recommended to the company that they have to put their focus on pricing
strategy and despite of increasing price of organic food unnecessary they have to adopt
value-based pricing strategy (Nash, 2019). It is because consumers have variety of other
options for the similar good and increase in price will reduce their customer base and
sales revenue. Thus, setting price of goods based on its value is best for the company.