Research Proposal: A Case of Tesco

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RESEARCH PROPOSAL
A CASE OF TESCO
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TABLE OF CONTENTS
RESEARCH TITLE................................................................................................................. 1
RESEARCH PROJECT DESCRIPTION...............................................................................2
RESEARCH AIM AND OBJECTIVES..................................................................................3
Research Aim.................................................................................................................... 3
Research Objectives.......................................................................................................3
FACTORS THAT CONTRIBUTE TO THE RESEARCH PROJECT SELECTION........ 3
LITERATURE REVIEW..........................................................................................................4
Customer satisfaction and market share............................................................... 4
Relationship between customer satisfaction and market share of Tesco. 4
RESEARCH METHODOLOGY.............................................................................................6
ACTION PLAN........................................................................................................................ 8
REFERENCES...................................................................................................................... 10
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RESEARCH TITLE
To analyse the impact of customer satisfaction on decreasing
market share of Tesco: a case of Tesco
RESEARCH PROJECT DESCRIPTION

Satisfaction is a broad term which could leads to employee as well
as customer satisfaction. Both are the most effective and important term
which needs to be measured by the company in order to enhance their
market share. It clearly shows the relationship between satisfaction as
well as market share. According to Luo and Bhattacharya (2006) one of
the most important asset of any organization are their customers. It is the
most important task for any firm to attract and retain more number of
customers. In order to enhance the market share of any organization it is
essential to maintain the level of customer satisfaction. Farner, Luthans
and Sommer (2001) in his article defines that satisfaction affects the
market share.
In this regard, the present study is based on the case study of Tesco.
It is a British multination general merchandising and retailer served their
business operations in different field (Sharma, 2010). They are the third
largest retailer across the world on the basis of profit. In the past years, it
has been founded that there Tesco is been losing its market share. There
are several reasons behind this in which one of the reasons could be
customer satisfaction. Hernon and Whitman (2001) stated that customer
satisfaction is a most important term which can mainly defines the needs
and desires of the customers. It can be measured by how products or
services supplied by company meet a consumer expectation. Further, it is
becoming a most important task for every organization nowadays is to
meet the requirements of their customers. It helps Tesco to enhance their
profit margin as well as their market share.
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RESEARCH AIM AND OBJECTIVES

Research Aim
To analyse the impact of customer satisfaction on decreasing market
share of Tesco: a case of Tesco
Research Objectives
To identify the meaning of customer satisfaction and market share
To carry out a primary study on the relationship between customer
satisfaction and market share of Tesco
To recommend various ways through which Tesco can increase the
level of customer satisfaction in order to increase their market share
FACTORS THAT CONTRIBUTE TO THE RESEARCH PROJECT

SELECTION
At the time of selecting any research project there are some of the
major factors which contribute towards it such as:
Interest of the researcher: It is one of the key factors which show
the interest of researcher. He/she can choose the area of research as per
his/her interest so that he can move further with better findings and
conclusion as well. In addition to this, researchers interest is the main
factor which motivates him/her to select the present topic. With the help
of this, researcher will able to conduct this research in a more effective
manner (Mackey and Gass, 2005). In will also help in attaining the
research objectives along with appropriate formulation of better strategies.
Topic is current issue: The present topic is latest as companies
are adopting several strategies through which they can attract and retain
more number of customers. Decreasing market share due to the
decreasing customer satisfaction is presented as a hot issue these days. It
affects the total brand image of company, thus research regarding the
present subject matter is of greater significance.
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LITERATURE REVIEW
Customer satisfaction and market share
According to Swan, Bowers and Grover (2002) market share and
customer satisfaction are two most important terms which have long been
used as a key performance indicator. It highly relates with the
management as well as economic contexts of any organization. In the
past years it has been founded that there is a positive relationship
between customer satisfaction and market share. It defines that satisfied
customers drives repurchases and word of mouth. These are the major
forces which highly influences the companys market share. However, this
assumption has been changed with the period of time and there are
several measures which have been taken into consideration. A recent
study by Angoujard (2005) has looked at the consumer satisfaction
market share relationship over a long period of time. It also has been
revealed that when customer switching costs are low, it is easy to use
customer satisfaction in order to predict future market share as well.
Gronholdt, Martensen and Kristensen (2000) in his article defines that
brand choice is the key influencing factor. Consumers might not switch to
any other brand when they are highly satisfied with the service quality of
a particular brand.
Relationship between customer satisfaction and market share of Tesco
Market share basically covers the sales and profit margin of any
organization. It also focused primarily on advertising and other offensive
type marketing activities. It is the only way through which company can
attract huge base of customers towards their services. According to
Huang and Huddleston (2009) focus on a service quality is one of the most
important tool through which increasing market share can be maintained.
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The value of customer satisfaction depends on its relationship to choice as

well as market share. From the past years, Tesco is been losing its market
share and one of the major reason behind this is decreasing customer
satisfaction. They need to provide high quality of services to their
consumers so that they feel motivated and satisfied.
According
to
Hernon
and
Whitman
(2001)
higher
customer
satisfaction ratio are widely believed to be the best indicator of companys

future profits. Satisfaction is highly related with the customer loyalty. In
case of decreasing customer satisfaction, Tesco might lose the customer
loyalty and they can switch to any other brand as well. It is the major
factor due to which Tesco is decreasing their profit margin as well as
market share. In addition to this, it can be stated that Tesco wants their
customers to be happy and think that customers would behave in a way
that would benefits the company. Gronholdt, Martensen and Kristensen
(2000) in his article defines that high customer satisfaction has been
shown to statistically affect a companys bottom line through improving
customer retention, reducing complaints as well as price sensitivity and
increasing purchase intention.
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RESEARCH METHODOLOGY
This is considered as a most important sections of any research as it
helps the researcher in finding out the most suitable and relevant data as
per the given subject matter. It helps the researcher in making more
appropriate research by the way of collecting suitable information from
different sources (Merriam, 2009). The present study is based on the
exploratory research design in which researcher will explore whole
information about the impact of customer satisfaction on the Tescos
declining
market
share.
Further,
Inductive
research
approach
will
incorporate in the present study as it helps in accumulating relevant data

for the research. With the help of this researcher can develop appropriate
theory for the study. In addition to this, data will be collected by both the
primary as well as secondary sources. Primary data will be gathered from
the managers of Tesco by the way of questionnaire survey (Clark, 2002).
For this, 5 managers of Tesco will be taken into consideration. They will
give varied responses on the basis of their knowledge. They can provide
appropriate information about the Tescos declining market share and role
of customer satisfaction within this. On the other hand, secondary data
will be gathered from different articles, online sites of Tesco and varied
other online sources. In order to analyse the primary data, qualitative data
will
be
incorporated
under
which
thematic
as
well
as
graphical
representation will be developed (Mackey and Gass, 2005). It is the best

way through which percentage of highest responses can be calculated.
Under thematic analysis, different themes will be developed on the basis
of gathered responses. It is the best source through which appropriate
findings can be developed on the basis of best responses. Researcher can
no draw a valid conclusion about the impact of customer satisfaction on
the market share of Tesco.
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ACTION PLAN
Activity
Writing
Research
Proposal
Literature
Review
Setting aims
and
objectives
Drafting
literature
review
Drafting of
methodology
Developing
questionnaire
Data
collection
Analysis of
Data
Draft Findings
Analyse data
Completing
remaining
chapters
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REFERENCES
Books and Journals
Angoujard, R., 2005. Exceeding customer expectations at Novotel.
Strategic HR Review.
Clark, A.M., 2002. The qualitative-quantitative debate: moving from
positivism and confrontation to post-positivism and reconciliation.
Journal of Advanced Nursing.
Farner, S., Luthans, F. and Sommer, M, S., 2001. An empirical
assessment of internal customer service. Managing Service Quality.
Gronholdt, L., Martensen, A. and Kristensen, K., 2000. The relationship
between
customer
satisfaction
and
loyalty:
cross-industry
differences. Total quality management.
Hernon, P. and Whitman, J., 2001. Delivering Satisfaction and Service
Quality: A Customer-based Approach for Libraries. Delivering
Satisfaction and Service Quality: A Customer-based Approach for
Libraries.
Huang, Y. and Huddleston, P., 2009. Retailer premium own-brands:
creating customer loyalty through own-brand products advantage.
International Journal of Retail & Distribution Management.
Luo, X. and Bhattacharya, C. B., 2006. Corporate social responsibility,
customer satisfaction, and market value. Journal of marketing.
Online references
Sharma, T., 2010. Tesco Marketing Strategies. [Pdf]. Available Through:
<http://www.academia.edu/8183021/TESCO_Marketing_Strategies_F
or_Retail_Industry_TESCO_www.dissertationplanet.co.uk>.
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THIS IS A SAMPLE ASSIGNMENT

RESEARCH PROJECT DESCRIPTION

RESEARCH AIM AND OBJECTIVES

FACTORS THAT CONTRIBUTE TO THE RESEARCH PROJECT

The value of customer satisfaction depends on its relationship to choice as

satisfaction ratio are widely believed to be the best indicator of companys

THIS IS A SAMPLE ASSIGNMENT

incorporate in the present study as it helps in accumulating relevant data

representation will be developed (Mackey and Gass, 2005). It is the best

THIS IS A SAMPLE ASSIGNMENT

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