BA (HONS) IN MANAGEMENT

ENTERPRISE & TECHNOLOGY

Title:

Investigation on: Asda’s pricing strategies to explore

its impact on customer’s perception of Asda.

Author:

Hasib Ullah

This dissertation is submitted in partial fulfilment of the BA (HONS) in

Management Enterprise & Technology

I declare that this dissertation is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other awards.

Hasib Ullah

ACKNOWLEDGEMENTS

I would like to take this opportunity to thanks my family and friends, particularly Ishrat Perveen, Wali Muhammed, Shahid Balil and Matthew Kennedy for their constant support and patience throughout my research.

But the most important person throughout my dissertation is my research professor Dr Keith Halcro to whom I wish to convey my heartfelt thanks for guiding me in my dissertation.

Abstract

This research project has a focus on an investigation on Asda’s pricing strategies to explore its impact on customer’s perception of Asda.

This study has a high level of importance because as the competition is intensifies amongst retail supermarkets for top position in the markets understanding customers perception regarding services provided to them has become a key for supermarkets.

The research methods which have been used include a literature review of the views of the major authors in this area.

The findings of this work show Asda customer like any other customer’s have expectation which influence their perceptions when deciding to visit a particular supermarket or purchasing a particular product.

The main conclusions of this work show that customer’s choices are very diverse. Also, respondents were of the opinion that prices of the products are major factor in their choice.

The recommendations of this work are that Asda should continue with current pricing strategies because it helps Asda address the concerns of majority of the customer’s.

Content Page

Page

Declaration i

Abstract ii

Acknowledgement iii

Contents iv-v

Introduction

1.1 Background Information................................................................................................1

1.2 Value of the research......................................................................................................2

1.3 Aims and Objectives of the research..............................................................................3

1.4 Dissertation Structure.....................................................................................................4

Literature Review

2.1 Introduction....................................................................................................................6

2.2 Supply and Demand.......................................................................................................6

2.3 Sales Promotions...........................................................................................................7

2.4 The Marketing Mix........................................................................................................8

2.5 Pricing strategies effects on customers..........................................................................9

2.6 Motivation factors for consumer..................................................................................11

2.7 Asda Market Growths..................................................................................................14

2.8 Supermarkets in the UK..............................................................................................16

2.9 Asda’s use of pricing strategies...................................................................................17

2.9 Conclusion....................................................................................................................20

Research Methodology

3.1 Introduction.................................................................................................................22

3.2 Research Philosophy....................................................................................................24

3.3 Research Approach......................................................................................................25

3.4 Research Strategy.........................................................................................................26

3.5 Time Horizons..............................................................................................................27

3.6 Data Collection Methods.............................................................................................28

3.7 Conduct of the Research..............................................................................................29

3.8 Limitations of the research methodology....................................................................29

3.9 Conclusion....................................................................................................................30

Finding and Discussion

4.1 Introduction..................................................................................................................31

4.2 Demographics of respondents......................................................................................32

4.3 Popularity of supermarkets..........................................................................................35

4.4 Understanding customer expectations..........................................................................40

4.5 Promotion pricing strategies.........................................................................................44

Conclusion

5.1 Introduction..................................................................................................................48

5.2 Key insights from literature review..............................................................................49

5.3 Key insights from questionnaire..................................................................................50

5.4 Recommendation.........................................................................................................50

5.5 Strengths.....................................................................................................................51

5.6 Limitation of Dissertation.......................................................................................... 51

5.7 Future Research............................................................................................................52

References...............................................................................................................................53

Appendices..............................................................................................................................57

Introduction

1.1 Background Information

The purpose of this dissertation is to an investigation on Adsa pricing strategies to explore its

impact on customer’s perception of Asda.

Asda is in a retail oligopoly industry. According to Sharma and Kumar (1998) an oligopoly is

a market condition where “a market situation is in between a monopoly and perfect

competition in which the number of sellers is more than one but is not so large that the

market price is not influenced by anyone them.

In the light of porter’s Porter’s generic strategies Asda is placed at cost leadership section in

term of market that Asda want to capture, which consists of board target and low cost. As

attempt to become the lowest-cost supermarket in the grocery industry. Following this

strategy places emphasis on cost reduction in every activity in the value chain. With this

strategy Asda now holds 17.5% of the market share. Despite this strategy Tesco earning is

better than Asda due to product diversification.

In recent years UK has seen its big supermarket like Asda, Tesco, Sainsbury and Morrison

are engaged in ferocious price war to attract each other customers. In this intense atmosphere

Asda is also trying play proactive role by further engaging its own customer and potential

new customers.

According to Marcus, Leroux, (2010) Asda is now challenging its competitors supermarkets

by giving its customers the biggest prices cut on the products in a decade. Asda has reduced

the price of 3,600 items by an average of 13 per cent, increasing the pressure on Tesco.

Asda has also pointed allegation at other supermarkets of using promotions which mislead

shoppers Darren Blackhurst, Asda's chief merchandising officer, said: "People are sick and

tired of being tricked and deceived by dodgy claims and bogus buy one, get one free offers.

Unlike our rivals, we're lowering prices on a more permanent basis on the products people

want to buy, not just products we want to sell them. We also want people to check our prices

every time they shop." Marcus, Leroux, (2010)

1.2 Value of the research

If there can be a greater understanding of the factors that influence Asda’s customer

perception of them then it will be easier to attract more customers and compete better in the

UK supermarket industry.

Asda focuses their efforts on value-oriented customers in the market. As a result Asda’s

products are focused on providing value-oriented customers with products that are indeed

value-for-money, relative to competitive offerings. Interestingly, an emphasis on cost

leadership in this sense can act as a form of differentiation.

This dissertation will look at Asda which is second largest supermarket in terms of market

share as Smale (2010) showed that Tesco was the market leader with Asda in second place.

The successful outcome of this research will enable us to understand how Asda customers

perceive Asda prices strategy. Customer attitude can have great impact on Asda as their

decision will determine how they would choose to shop in the Asda stores. This research will

provide the insight to readers and would deepen their understanding on matter such as pricing

strategic and the critical role its play in the determining customers shopping habits.

The problem this research piece will attempt to solve is how important role does the price

strategies play in building overall view in customers mind how they perceive Asda. This

dissertation piece will present great scope to retail industry for analyzing in the current

environment what are those factors which determine general public shopping style. In many

people view it only the price consideration which final determine where people might choose

to shop for their household goods.

1.3 Aims and Objectives of the research

The aim of this dissertation is to complete an investigation on Asda’s pricing strategies to

explore its impact on customer’s perception of Asda.

In order to complete this aim I have set objectives for myself that will help me get answers

closer to my aim. They are as follows:

1. To perform a literature review of pricing strategies,

To help establish what the current and historical thinking is in regards to pricing strategies a

literature review will be completed. This will look at key authors, surveys and other relevant

information to establish a good knowledge before undertaking a questionnaire to ensure the

most relevant questions are asked.

2. To perform a review of Asda pricing strategies

By looking at Asda’s current pricing strategies it will help understand what Asda is doing just

now and what Asda is doing in regards to current thinking on pricing strategies. This will

help with objective four.

3. To get data on customers perceptions of Asda

By asking customers what their perceptions of Asda are then this can be used to see if it

matches up with what is being said in the literature review and will also help when

completing objective four.

4. To establish the best ways for Asda to use pricing strategies to further improve

customer perceptions.

By using all the data gathered it will then be possible to establish good recommendations for

Asda to improve their customer’s perceptions.

1.4 Dissertation Structure

This dissertation methodology framework primary data will consist of survey questionnaire

that I will ask Asda customer to get their first hand viewpoint. Questionnaires will be used to

collect both qualitative and quantitive data. There will be 20 questions that I will ask to 100

participants. I plan to carry out this task in December to take the advantage of busy time in

the store. The secondary data gathering will mainly be generated through websites. Websites

will be used to collect both qualitative and quantitive data. All of the secondary data will be

collected from investigations previously carried out by different institutions and authorities.

The dissertation will be divided into five chapters of which this introduction is the first.

The second, chapter two, will comprise of literature review, and will look at key

thinking in the relevant areas

The third chapter, will consist of methodology frame work, and will explain how the

dissertation will be undertaken

The fourth chapter, findings, will examine the results of the questionnaire in relation

to issues looked at in the literature review. It will also help to fulfil objective four.

The fifth chapter will be the conclusion and will wrap up the entire dissertation and

will also fulfil objective four. Strengths and weakness of the research will be look at

as will avenues for future research

Literature Review

2.1 Introduction

In order to fulfil of the project, four research objectives this literature review examine pricing

from authors viewpoints. This chapter will allow greater understanding of the will for further

analytical judgement and will enable the project’s aim of Asda and its pricing strategies.

2.2 Supply and Demand

According to Landsburg (2008) when the price of a good goes up, people generally consume

less, this statement is called the law of demand and economists believe that the law of

demand is nearly always true. Therefore, Asda will be concerned with the prices of their

products as they will look to increase their turnover to the maximum potential. This means

they will very carefully set their prices and to this end they may examine several pricing

strategies to attract as many customers as possible.

Asda as the supplier of goods to their customers can be examined in relation the supply side

theory of economics. Supply side economics is concerned with incentives and lower taxes,

Rhiani (2002). The idea is that if a company can lower their costs as much as possible then

they will be able to lower their prices which will in turn stimulate demand. If Asda can lower

their costs through bulk buying and supplier discounts then they will be able to lower their

prices which will increase the demand of their customers. Asda recently highlighted “supply

side shocks” as one the main reasons for rising prices, Asda Income Tracker (2010).

2.3 Sales Promotions

Sales promotions can play a big part in influencing customer demand. “Sales promotion is the

offer of an incentive to induce a desired sales result” (Gilbert, 1999). IGD, the data company

which monitors supermarkets, estimates that a quarter of all shoppers buy goods because they

are part of a buy-one-get-one-free offer, as a result, more than 80 per cent of all promotional

activity within supermarkets is a buy one get one free or three-for-two, Wallop (2008). This

shows that sales promotions can play a massive role in increasing customer demand and is an

important factor for customers when considering where to buy.

Customers buying habits can be affected by sellers pricing strategies. According to Mills

(2002) the “consumers desire for the product usually depends on available income and may

depend on other factors such as household size and composition, and ethnic origin.

Consequently, some consumers are willing to pay high prices while others will buy only at

lower prices. Equally, there can be differences in the quantities purchased by individual

customers or households, even when all customers pay the same price. “From a sellers

perspective although there are many factors that could influence a customers demand (e.g.

advertising, location etc) the main factor that will affect the demand of customers will be

price.

2.4 The Marketing Mix

A seller who wishes to influence the demand of their customers can make use of an idea

known as the marketing mix (also known as the 4 P’s). According to Jefkins (2000) the

marketing mix is the combination or stages of elements necessary to the planning and

execution of the total marketing operation. The marketing mix consists of price, product,

place and promotion.

The product is the actual product itself, what a company is selling to their customers.

Armstrong & Kotler (2010) both emphasise that the product means the goods and services

combination the company offers to the target market. A product or service which is not

matched to a customers needs will likely see demand fall as customers will not be interested

in purchasing a product which is not useful to their needs.

Place is where the products or services are sold. According to Kotler and Armstrong (2010)

place includes company activates that make the product available to target customers.

Although place will be important if price, product and promotion are sufficiently good then

demand will likely increase. This is backed up by a survey undertaken by Brand Recruitment

which showed that consumers regularly shopped in their chosen supermarket primarily

because it is the closest supermarket to where they live, Mann (2010).

Promotion involves a company’s efforts to promote itself themselves. According to Kotler

and Armstrong (2010) promotion means activities that communicate the merits of the product

and persuade target customers to buy. This will include areas such as advertising and strong

brands.

Price is what the actual cost of the product or service is to the customer. According to Kotler

and Armstrong (2010) price is the amount of money customers must pay to obtain the

product. Barron (2010) commissioned a survey which showed that 71% of UK consumers

ranked price as the most important factor when making a purchase, placing the UK as the

most price conscious market in Europe. This shows that for consumers in the UK the biggest

factor in the marketing mix which will influence their demand is price.

Although it may be the case that consumers rank one factor as higher in importance in

affecting their demand it is important that the other factors are not neglected. According to

McDaniel & Gitman (2010) a strategy must be constructed for each of the four 4 P’s and

blended with the strategies for the other elements. This shows that even though different

aspects of the marketing mix may be more important in influencing customers demand than

others all areas should be considered important and will have some influence on customers

demand.

2.5 Pricing strategies effects on customers

Asda at times promotes through its advertising that it has made large price cuts as a way to

attract customer. According to Neil Hamann, a Managing Director, price cuts are a tactical

way for supermarkets to promote their products and address their shoppers changing needs.

Marketing Society Forum (2010). Price cuts have also been used by supermarkets during the

recession as a way to attract customers who will be looking for low prices in a tough

economic climate. One example of this is Morrison’s who in 2009 implemented 30,000 price

cuts in response to the recession and saw sales hit record levels, The Western Morning News,

(2010). 

By implementing low prices Asda’s image among customers will be one of a company which

can offer them low prices on a consistent basis. This means that customers will have a

perception of Asda as a company which can offer them low prices.

In the recent move by the Asda to remain cheap and distinctive store Asda has decided to  do

way with buy one get one offer.  “Supermarket giants Asda are scrapping "buy one get one

free" deals in favour of price cuts.The offers, known as BOGOFs, will be replaced this

weekend by cost reductions on around 5000 items. It follows a similar round of cuts last

month. Asda chief merchandising officer Darren Blackhurst said: "With the country in

recession, we need to do all we can to lower the cost of the weekly shop and do the right

thing by our customers." "That's what our price pledge is all about - good, honest value that

our customers can trust, week in, week out." Leading retail analysts said the move marked a

return to the firm's roots. Richard Perks, director of retail research at Mintel, said it showed

the influence of US retail giants Wal-Mart, who bought Asda in 1999. He said: "It is really

going back to Wal-Mart's roots of everyday low pricing. "You don't go for the promotions -

you just make sure your prices are as low as possible every time." Robert, Dex, (2009)

Asda has decided to shun traditional methods (e.g. BOGOFs, loyalty cards etc) of attracting

customers and will instead rely on their prices to attract and retain customers. Asda has

enough confidence in its ability to offer low prices on a consistent basis that they feel they do

not need to rely on gimmicks. Instead their pricing policies will be used to ensure repeat

custom.

2.6 Motivation factors for consumer

An understanding of customer motivation to buy is key to the success of marketing strategies

(price strategies). Marketers who have understanding of customer behavior know that

customers need motivation to select a store for shopping. Customer motivation is a complex

process that affects directly on customer purchase behavior. Sustainable success is achieved

when marketers understand what motivates consumers to buy. ASDA operates in a

challenging market environment where it is hard to characterise customer behavior, brand

loyalty, how, where and why consumers buy. This research aims to reveal detailed insights

into where, why and how consumers buy.

Most common type of customer motivation is economic motivation, where top motivational

factor is low price. Organizational factors are significant for some customers like a business

owner buying for his office or business or a mother shopping for her family. My primary

research reveals that customer can also be motivated by conditioning for example they buy

same brand or product from the same store as their friends and family did. Customers are also

motivated by some unconscious drives to buy a product or brand. Customer buying behavior

is also influenced by their individuality. Individual preferences are often shaped by personal

experiences, perceptions, unique memories etc

Ethical motivation plays the import role in customers purchasing decision. According to

Hillebrand (2007) state that “Ethnically motivated customers buy fair-trade products because

they feel they have responsibility towards a board set of stakeholders “. As customers are

becoming more diverse in their choice of purchasing particular products this make it difficult

to predict customer even further as to how they react next.

Motivation is based on drive and direction. Drive is linked to the strength of motivation and

direction indicates the variety of products that customer can choose from. Overt and covert

motivating factors are the basis of our inner motivation as in the Freudian theory outlined

above.

Customer motivation to buy is also influenced by some internal and external forces for

example customer motivation can be decreased or increased by their experiences, desires,

needs, expectations or personal traits. Moreover, primary research indicates that variety of

products is another prime motivator for many customers of ASDA.

For many consumers sense of achievement is another important motivational factor, where

the final outcome is related to positive consequences rather than an expense to solve a

problem. Sometime customer purchase products to restore stability in their order of life as the

absence of these products can make their life out of balance. Consumers are even willing to

buy personalised luxury products to restore this balance in their life.

Robert (2000) Maslow’s hierarchy of need is considered as a basis all motivation in which

people satisfied their wide range of need in order to live. Maslow’s hierarchy highlights that

basic need such as food, shelter and warmth must be achieved and satisfied. This Maslow’s

hierarchy of need is used by companies often to pressure customer to purchase more products

while they could without it before proceeding further in their shopping.

Market segmentation is a core factor to analyse customer behavior. Market segmentation is

the process of dividing markets into groups of similar consumers and selecting the most

appropriate groups and individuals for the firm to serve (Olson & Peter, 1994).

The consumer buying process is also described by Kotler et al (2008) five stage model. This

model explains the customer buying behavior. This five stage model includes problem

recognition, information search, and evaluation of alternatives, purchase decision and post

purchase behavior.

Another factor which can influence customers demand is the convenience factor, i.e. the

ability to shop for everything you need under one roof. According to Wilson (2011) the

decline in the number of local butchers can be attributed to the apparent preference of

consumers to shop in supermarkets where everything is under one roof. This was also an

issue raised when the government took under consideration plans for supermarkets to sell

over the counter drugs normally sold at local pharmacy’s. According to Poulter (2011) “the

row has echoes of earlier battles, where out- of-town supermarkets effectively killed off

traditional butchers, bakers and greengrocers when customers were lured away by claims of

lower prices and the convenience of buying everything under one roof”. This shows that for

customers the ability to have the convenience of shipping for everything under one roof is a

very important factor to them and can influence them to shop at supermarkets.

2.7 Asda Market Growth

Asda price strategies have been chosen by them in order to increase their sales which they

hope will also lead to increased profits.

Asda sales have mostly shown a steady increase over the last 8 years.

Date 2009 2008 2007 2006 2005 2004 2003 2002

Turnove

r

19,836 18,573 16,896 15,759 14,865 14,318 13,326 12,188

All figures are in millions and are taken from the FAME database

Asda turnover has increased every year for the last eight years. In 2009 Asda turnover

reached a record high of almost £20 billion.

ASDA's sales for the 12 weeks ending March 22 were up 8.5% on the year, taking the Wal-

Mart-owned chain's share of the UK market to a record 17.5%, the latest TNS World panel

grocery market share figures showed yesterday.

TNS said Yorkshire-based Asda has again demonstrated its strength as a low-price champion.

Morrison’s, meanwhile, saw its sales climb by 7.2%. The UK's fourth-largest grocer took its

share of the market to 11.8%, TNS said.

Tesco, the UK's largest grocer, saw its share of the market dip year-on-year, falling from

30.8% a year ago to 30.4%.

J Sainsbury's market share was "constant" at 16.1%, TNS said, after its sales grew by 5.7%.

Discount retailers such as Aldi, Lidl and Netto saw their combined share of the UK market

rise to 5.9% from 5.5% a year ago. TNS said "shopper spending" at the three retailers rose by

13%.

Asda sales figures can be attributed to its pricing strategies. By offering appropriate pricing

strategies Asda has been able to achieve continuous growth over a long period of time

meaning that their turnover has been consistently increasing.

2.8 Supermarkets in the UK

There are a number of different supermarkets currently operating in the UK. The four biggest

United Kingdom supermarkets are Tesco, Asda, Sainsbury’s and Morrison’s.

This shows that Asda is the number two supermarket in the UK, with Tesco being the market

leader and Sainsbury’s and Morrison are in third and fourth place respectively. Collectively

these four supermarkets are known as the ‘big four’, Smale (2010). There are a few other

supermarkets such as co-op, Waitrose, Aldi, Lidl and Iceland all with small market share

compared to the big four supermarkets.

2.8 Asda’s use of pricing strategies

Asda overall pricing strategy aim is to be a cost leadership store it involves a company using

aspects of business such as economies of scale and discounts from suppliers by buying in

bulk to enable them to sell their products very cheaply to customers. According to Ireland et

al (2008) they describe cost leadership strategies as “an integrated set of actions designed to

produce or deliver good or service with features that are acceptable to customers at the lowest

cost, relative to that of competitive”.

Asda use several pricing strategy in various department to further enhance the market growth

consisting of following, Psychological Pricing, Product Bundle Pricing, and Promotional

Pricing.

Prime strategy that Asda is implementing is penetration pricing throughout all of its chain

stores in the UK. Baker (2011) states that penetration strategy is used when the firm decide to

set the price below the service’s value to the customer, thereby ensuring a large customer

base. It is the trade-off of higher revenue versus higher margins and can be a very effective

strategy especially for new entrants into particular markets.

Hirschey (2009) also argue that “penetration strategy is a pricing strategy that is used for

charging very low initial prices to create a new market or grab market share in a well

establish market”. This strategy will help Asda attain sustainable growth because this pricing

penetration strategy philosophy look to sell the product with minimum profit margin that

allows large customer base to able to purchase product. Beside as the result of recent

economic melt down throughout the developed world significantly large population had to

tighten their pockets. Having a accessibility to supermarket that sell the quality product and

the cheap price will naturally further likely to entice customers to purchase product from

there.

Asda use of penetration price strategy helps it achieve their statement of been low price store.

Currently Asda is making effective and aggressive posture in implementing this strategy one

such step that Asda has taken is this regard is the guarantee to their customer “We'll

guarantee your comparable grocery shopping is 10% cheaper at ASDA or we'll give you the

difference” whereby it is claiming to cheapest store ASDA (2011).

Asda use psychological pricing Pride and Ferrell (2007) look this strategy as “attempt to

influence a customer’s perception of price to make product’s price more attractive”. While

Webster (2003) argue that “psychological pricing is a marketing ploy designed to create the

illusion in the mind of the customer that a product is being at a significantly lower price

when, in fact, the price differential is inconsequential”. This approach is used when the

marketer wants the consumer to respond on an emotional, rather than rational basis. Asda

uses this strategy often for selling various product ranges in it stores. For example Asda

currently sells ASDA Chicken Breast Fillets 3 for £10 from its original price of £3.90, Asda

(2010). This strategy often results in high sales for particular product for the company. Since

customers will perceive such offers as bargains available to them as a result are much more

like to purchase these goods.

Product Bundle pricing is used when set of product that is sold as one product with its own

price according to Kittlaus, and Clough (2009). Product bundle strategy serves to move old

stock. Asda often sold using the bundle approach in its toys department. Asda is currently

selling Play & Learn Rattles & Teethers 3 for £5, Asda (2011). Hughes and Kapoor (2010)

state that Product Bundle pricing can be very useful tool in increasing customers satisfaction.

Customers are more likely to purchase this product over several other products that available

to them to purchase from. This due to the fact that mentally customers will feel they get more

for their spend money.

Promotional Pricing is used to promote a product is a very common application Kurtz, et al

(2009) see it as “pricing policy in which a lower than normal price is used as a temporary

Ingredient”. Anselmo (2010) argue that there are many types of promotional pricing that

company could use for enhancing their sales. Asda in the case of Event starter set newborn

product does the promotion by putting it on sale in its store nearly half its original price. Asda

priced the product at £10.00 from its original market price of £19.98, Asda Special Offers

(2010).

Customers usually prefer to purchase product that are on promotion since customers are

aware that promotion is only going to last for the brief period of time. In 2010 on Boxing

Day sales Asda in its 105 store throughout the United Kingdom attract some five million

customers to their stores. This figure clearly illustrates the general public interest in

purchasing good from promotion available in the stores Yorkshire Post (2010).

Everyday low price (EDLP) “is a strategy that sets a stable price at a point somewhere

between competitors regular price and promotional price” according to Sullivan and Adcock

(2002) .EDLP protagonists use the part of their budget which would go into promoting

merchandise to maintain lower price throughout the year. This is twinned with a refund

policy for customers finding lower prices merchandise elsewhere. To implement EDLP

successfully, cost have to be kept low through an efficient distribution system and low

operating costs. Asda successfully adopted this strategy, which matched their image as a low-

price retailer and was popular with customer. The argument for EDLP is that customers

become suspicious of promotion, suspecting that the higher price they pay for some items

funds the saving they make on others.

I will be discuss in following final conclusion chapter literature review, methodology and

data collected briefly address aim of the report along with objectives analysing whether have

successful or not in achieving the targets.

2.9 Conclusion

Price has continuously been highlighted as perhaps the most important factor that affects

customer demand. However, other factors such as convenience and promotional offers have

also been highlighted as important. If Asda wishes to continue increasing its turnover then

they must take consideration of all these factors and also take advantage of different pricing

strategies.

Research Methodology

3.1 Introduction

The focus of this chapter is on the primary research which will take place in chapter four. The

idea of this chapter is to outline the idea of the research methodology and also examine the

research onion which can help when making decisions at later stages.

The different aspects of research which will be looked at will include, research philosophy,

the research approach, research strategy and finally time horizons.

Beside the mention issue if data collection methods or any other issue which may arise will

also is discussed in their due course. According to Kumar (2008) research methodology “it

may be understood as a science of studying how research is done scientifically”

Research methodology is very important aspect of conducting professional investigation

because without having a proper understanding or know how of exactly what it is you are

attempting to achieve and how you plan to achieve that target. The research is unlikely to be

successful if there is poor planning.

Prior to actually discussing the outline of the research itself it is very important first to

examine the different Issues like the research philosophy, research strategy, research

approach, time horizons and techniques and procedures. These issues will be addressed

through examining the research onion, Saunders et al (2009a).

Adapted from Saunders et al (2009 Page 138) Figure 1

The research onion is a tool that provides the opportunity to take one step at a time decision

approach to research. Saunders at el (2007) “also state that research onion as a way of

depicting the issues lying your choice of data collection method” Through layout out the

research of different stages which are involved in a research methodology the onion research

enable us to make the choices, e.g. whether the research philosophy is phenomenological or

positivist.

The remaining part of the chapter will focus on the different stages of the onion and the

choices made for the research:

Research Philosophy

Research Approach

Research Strategy

Time Horizons

Data Collection Methods

The behavior of the research will also be looked at in detail as will other issues which may be

highlighted when going through the stages.

3.2 Research Philosophy

The research onion looks at the two different approaches for highlighting an appropriate

research philosophy, positivism and phenomenology.

Collis and Hussey (2003) define phenomenology as a philosophy is considered fact that

appears and understood, especially one which the cause the question. Phenomenology helps

with understanding human behaviors from the participant’s own frame of reference. It

provides high importance to the subjective state of individuals.

Collis and Hussey (2003) say that positivism “approach seeks the facts or causes of social

phenomena, with little regard to the subjective state of the individuals”. “It is based on the

assumption that social reality is independent of us and exists regardless of whether we are

aware of it.”

This research philosophy will focus on phenomenological approach. The aim of this project

will seek to understand the importance of pricing strategy in customers chooses a particular

of Asda supermarket and how it enhances customer’s perception of Asda. The primary

research that will be undertaken will likely yield data that is of a qualitative nature coming

from primary information. Since Asda supermarkets and their customers are evolving (Asda’s

turnover increased by more than 100 million between 2008 and 2009, FAME database) it is

unlikely that the same results would be yielded should the questionnaires be handed out again

in the future. This means that a phenomenological approach would be most appropriate for

the project.

3.3 Research Approach

The research onion looks at the two different approaches for highlighting an appropriate

research approach, inductive and deductive.

According to Engel and Schutt (2010) inductive research start with specific data, which is

further enhances to attain general explanation that account for the data.

Deductive research “generally combines finding out the explaining certain phenomena”

according to El Kadhi (2009)

The research approach for this project will be inductive, which is appropriate for a

phenomenological approach. Through exploring this data and using the literature to refer

back to. The research proposal will aim to build up solid theory in relation to the aim by

using previous literature available on the matter form both primary and secondary research.

An inductive approach means that primary and secondary research will be used to make

observations which can then be used to establish recommendations.

3.4 Research Strategy

The onion says that there can be many different research strategies which are available. These

are, experiment, survey, case study, grounded theory, ethnography and action research. The

survey strategy will be used for this project.

The research strategy that will be used for this research on Asda will utilise the survey

research strategy. There are two main kinds surveys can be used. which are descriptive

survey and analytical survey. According to Collis and Hussey (2003) a descriptive survey is

concerned with indentifying and counting the frequency of a specific population, either at one

point in time or at various times for comparison. Such a survey is frequently used in business

research in the form of attitudes to a product or service. The other major type of survey is the

analytical survey where intentions are determine whether there is any relationship between

different variable. In order to conduct such a type of survey there will be need familiarise

with the theoretical context. The survey is the most popular and common method in the areas

of business and management, Bankert and Amdur (2006), and is used most frequently to

answer who, when, what, where, how much and how many questions, which means it will be

the most appropriate in regards to the aim as it will allow the collection of relevant data. The

survey strategy brings up two important issues of validity and reliability. Any conclusions

which result from the survey strategy must be valid, that is to say, they should be accurate,

reflecting the information present in the data in a way which is unbiased. It must also be

reliable, that is to say, the same result should occur if the same conditions are replicated

(assuming circumstances have not changed) Saunders (2007).

The main purpose of using the survey strategy will be to collect data from respondents which

will give information on their perspectives and opinions and which will allow conclusions to

be drawn from the data which are valid and reliable and which are also appropriate to both

the aims and objectives.

3.5 Time Horizons

Two time horizon strategies are identified by the research onion.

Bonita , Beaglehole, Kjellström (2006) in a cross-sectional study the measurements of

exposure and effect are made at the same time. It is not easy to assess the reasons for

associations shown in cross-sectional studies

Kemper (2004) says that longitudinal studies involved follow up research after a specified

time period.

As the research can only be undertaken once the strategy chosen will be cross section studies.

This means that the empirical work will take place once ensuring the project can be

completed by the set date.

3.6 Data Collection Methods

There are many different choices provided by the research onion when deciding on data

collection methods which are appropriate. A questionnaire is naturally the most appropriate

choice for this project.

The primary data will mainly be generated through questionnaires. Questionnaires will be

used to collect both qualitative and quantitive data. There are several reasons which qualify

questionnaires as way forward. The first benefit of questionnaires is that they are cheap to

produce and if made correctly they can help gain high research quality primary data for

analysis, Wood and Kerr (2011). Also, in order to ensure accurate data which properly

represent the whole sum picture a there will be relatively large sample size 100 will be

employed throughout. Lastly, in order to ensure maximum participation of general public as

respondent it will be very important that the questionnaire produced is easy to read. Such type

of easy to answer questionnaire only takes a few times to complete and also help ensure that

participants do not lose interest in the questionnaire. Lastly It is important that the

questionnaires which are handed out to participants are first of all are clear to read and easy

to understand for them and secondly include the correct questions to get the best possible

response for generating results in later stages. It would be very helpful if questionnaire will

be tested with a small sample first. As such venture will allow any problems to be brought to

attention such as unclear, misleading or confusing questions.

3.7 Conduct of the Research

Quota sampling will be utilised for this study. Hopefully during the course of questionnaire to

general public reasonable divided number of participants from each age of both male and

female will participate which ensure equal representation of respondents as possible. The

relevant numbers from each sex group will be sufficiently represented to ensure that the data

can be used. If the sample is not proportionate in term of representation of both sexes then it

will be difficult to draw conclusions as the sample will be biased. This questionnaire will

asked to people aged between 18+ years to avoid youngster not mature from wasting time.

The questionnaire will be asked to be completed by at least 100 respondents.

3.8 Limitations of the research methodology

The sample size for the questionnaire is 100 participants. This is a relatively large sample and

therefore should prove to be representative of the general population. This could possibly

bring up the issues of validity and reliability because if the sample is unrepresentative then

any conclusions taken from it may not be valid or reliable. According to Collis, Hussey

(2003) Reliability concerns with research finding been able to be represented while validity

concerns with research findings that absolutely correctly represent what is actually is

occurring in the situation. As questionnaires are only being handed out a certain Asda stores

which are in near fascinates due to constraint of resources. Therefore the responses which

will be collected might not be fully representative view of Asda customers through the United

Kingdom.

3.9 Conclusion

The options which have been selected from the onion are as follows:

Research philosophy – Phenomenological

Research Approach – Inductive

Research Strategy – Survey

Time Horizons – Cross Sectional Study

Data Collection Methods- Questionnaire

Chapter 4 Findings

4.1 Introduction

The purpose of this chapter is to present, examine and analyse the results of the empirical

work. This chapter will have two purposes. First, there will be a presentation of the results of

the questionnaire as this will enable me to address the objective of gathering data on the

customer’s perception of Asda. Second, there will be an examination of what the results

indicate. The results will then be used to examine the issues raised in the literature review and

whether they back up the findings, contradict them or have no conclusive result. The results

of the questionnaire will be put forward in a numerical fashion with the results of each

question being presented individually and illustrations such as bar charts or pie charts.

The layout of the chapter will be as follows:

4.2 demographics of respondents

4.3 popularity of supermarkets

4.4. understanding customers expectations

4.5 Promotion pricing strategies

There are fifty eight respondents from the Asda general Public to respond on the ten

questions.

4.2 Demographics of respondents

1. What is your gender?

The demographics of the respondents were 36 male and 22 female. More males have

responded to the questionnaire than females. The key note survey reported that 71% of men

claimed to be responsible for the grocery shopping in their household, KeyNote (2010). This

shows that Asda’s customers are likely to be in line with the behavior of shoppers in the UK

as just over 20 respondents were female and just over twenty respondents said they were

responsible for the main shopping in their household.

2. What is your Age?

The ages of the respondents were 27 were between the ages of 18-30, 23 were between the

ages of 31-60, 8 were between the ages of 61.This data illustrate that viewpoint of all age

group are accommodated in the questionnaire. Perception of Asda customers across the board

of all age group is represented.

“Asda said that under its new policy, customers would be consulted about every aspect of the

business, having input on things like product development and the feel of packaging.

Beginning in January, 18,000 regular Asda shoppers will be given access to products before

they are launched in its stores. Making a dig at rivals' customer-loyalty programs, Asda Chief

Executive and President Andy Bond said he thought customer loyalty couldn't be bought with

plastic points or discount vouchers. Loyalty plans are one of the ways that the British

supermarkets compete. For more than a decade, they have tried to outdo each other”. Lilly,

Vitorovich, (2009)

This demonstrate that my strategy is of surveying the customers is also in line with the store

because since one of the objective that will be addressing is to recommend the best way

forward for Asda in using their pricing strategies to further improve their customer

perception.

3. Are you solely or jointly responsible for your household’s main shopping for groceries?

Majority of respondents (36) of customers who visited Asda are solely or jointly responsible

for their household’s main shopping of groceries. This data illustrates that the general

perception amongst these family’s shopper Asda is a popular place for shopping household

goods. Because they had budget consideration to adhere to in deciding their weekly shopping

that also prove the point from literature review that psychological pricing Pride and Ferrell

(2007) look this strategy as “attempt to influence a customer’s perception of price to make a

product’s price more attractive”. This psychological strategy is every successfully been

implemented by Asda. In future to further improvements to the image of Asda, they must

continually pursue this psychological strategy as this will aid in Asda to attaining more

household customers to attractive pricing. A survey conducted by KeyNote (2010) argues

that men and women’s buying habits in terms of grocery shopping, it was established women

were far more expected to the mass amount of household shopping (71.4%) in comparison to

their male counterparts.

4.3 Popularity of supermarkets

4. Which one of the following statements most closely describes how you shop for your

main grocery shopping?

Majority of 33 customers questioned stated that they always visit the same supermarket while

around 16 customers stated they mostly visit the same supermarket. This data illustrate that

customer’s perception about Asda is good as majority of the customer always choose to visit

the same store for their shopping. This statistical data also show that Asda overall aimed

strategy of been a cost leadership store it involves a company using aspects of business such

as economies of scale and discounts from suppliers by buying in bulk to enable them to sell

their products very cheaply to customers. According to Ireland et al (2008) they describe cost

leadership strategies as “an integrated set of actions designed to produce or deliver good or

service with features that are acceptable to customers at the lowest cost, relative to that of

competitive”.

Asda is also working so that people who visit Asda are happy with their products prices

charged to them. Because Asda opted not to implement loyalty card strategy that is used by

all its major competitors like Tesco, Morrison’s etc. Asda does not see loyalty cards as

important. Loyalty cards do not affect the price of supermarkets products and are not used to

give discounts or special offers. They are designed rather to encourage loyalty by offering

points in return for consistently shopping in one store. Asda will be confident that rather than

loyalty cards than being needed to ensure that customers return their pricing policies which

can offer customers low prices on a consistent basis will be the most important factor in

ensuring that customers continue to shop in Asda. In future Asda could further improve

customer perception of customers by remaining low cost supermarket that will help win their

trust of customers.

5. Please tell us which supermarket or shop you use most frequently for your main grocery

shopping?

Inevitably the most popular supermarket among respondents was Asda with twenty

respondents saying they shopped at Asda for all of their groceries. The second most popular

supermarket was Tesco and Morrison’s with four respondents saying they shopped at Tesco

and Sainsbury’s more frequently. Sainsbury’s had roughly the same number of respondents

who said they shopped at this store more, with eight and 7 respondents respectively choosing

others store. This data in which overwhelming respondent’s choose Asda as their main

preference shopping store the response is broadly support what the literature suggested

illustrate that penetration pricing strategy utilised by Asda is very successful in winning the

trust of it’s customers.

However, it would be expected that as Tesco is the clear market leader, holding almost

double the market share of its closest rival Asda that the most popular supermarket among

respondents would be Tesco. However, this was not the case as Asda was the most popular

response among respondents by a slight margin.

6. Supermarkets can vary in the range of groceries and other goods stocked, some of which

are shown on this card. Which of the following categories of product, if any, would you

regard as particularly important to be able to purchase as part of a single visit to the

supermarket for your main grocery shopping?

This data illustrate that customer expectation varies across all items mention product they

would like to have the ability to purchase in single visit to supermarket with majority stating

toiletries and confectionery are two most important item to which they wish to have

accessibility for purchasing. Although Asda have the entire mentioned products range for the

customer to buy from in the stores In light of these statistics become available Asda perhaps

can further increase two of the most popular items range in their stores because that will

ensure customer satisfaction about product range in Asda. The issues raised by Wilson

(2011) and Poulter (2011) that customers are switching their loyalty from local shops to

supermarkets due to the convenience of having all their shopping done under one roof is true

as customers are looking to by many different products at Asda.

4.4 Understanding customer expectations

7. What are other factors, if any, are important to you?

Amongst the 58 customers questioned in the survey 44 respondents considered the most

important factors in their shopping habits is their ability to have access do all their shopping

under one roof. While 22 of these customers also choose the price charged at groceries. This

data illustrate that Asda customer expect to have available to them in one place all the

groceries. In light of this shopping habit data, Asda perhaps can further ensure that it has

more variety of the products available in the store so that maximum number of customer is

satisfied with availability of products. This shows that the issues written about by Wilson

(2011) and Poulter (2011) that customers are switching their loyalty from local shops to

supermarkets due to the convenience of having all their shopping done under one roof is true

as the research shows the most important factor that affects customers shopping habits is the

ability to have all their shopping done under one roof.

Second most factors to customer in the data is price the groceries products, Although Asda

already striving to be the cheapest supermarket store in the UK by offering low prices to

customers, In light of the data they must intensified their effort of perusing cost leadership

strategy. This backs up Barron (2010) who’s survey showed that 71% of UK consumers

ranked price as one of the most important factors when making a purchase, placing the UK as

the most price conscious market in Europe. This shows clearly that for Asda’s customers one

the primary factors which are important to them is price.

21 respondents also mentioned having supermarket within convenient distance of home as

important factor consideration when choosing to shop in supermarket. Asda can address this

demand of the customer by building store beside the motorways throughout the country and

city centre so that more people could easily access them. This shows that place is an

important factor to respondents which backs up Brand Recruitments survey which

highlighted that customers regularly shopped in their chosen supermarket due to it being the

closest supermarket to where they live, Mann (2010).

Flexible opening hours and Extra facilities like petrol, coffee shop etc are also important

highlight factors in the shopping habits of the customers. Asda can address the first concern

of 12 respondents regarding the flexible opening hours by further increasing the numbers of

the store which it open 24hours. Asda can address the second concern of having extra

facilities like petrol, coffee shop etc by building Asda petrol pump station near Asda

supermarkets.

This backs up the idea of McDaniel and Gitman (2010) that although different factors may

have more of an influence than others on customers a company must take all factors into

consideration if they wish to develop a successful selling strategy. This has been shown by

the respondents highlighting different issues which are important to them even though some

factors have shown to have a higher importance than others.

8. Can you think of any particular supermarket(s) that you would like to use regularly for

your main grocery shopping but can’t because the nearest store is too far away or

otherwise inconveniently located for you?

This data illustrate that perception about Asda is good majority 46% stated they do not wish

to visit the other supermarkets while 30% of the customer said don’t know but overall the

perception of Asda customers is positive .

Brand Recruitments survey which highlighted that customers regularly shopped in their

chosen supermarket due to it being the closest supermarket to where they live, Mann (2010).

This is backed up by almost half saying they were happy with the supermarket which closest

to them and only a quarter saying they would visit another supermarket but it was too far

away.

4.5 Promotion pricing strategies

9. Thinking about supermarket special offers and promotions e.g., ‘two for the price of one’

etc., which one of the following statements best describes you behavior?

35 of the respondents state that they always lookout for promotion while 24 says they might

purchase product from promotions and 2 stated they never notice the promotions. This data

illustrate that perception of Asda customer attached high importance how they choose to do

shopping as overwhelming majority show their interest in purchasing products from

promotion. This promotion strategy is already been implemented by Asda throughout all its

chain stores to attract new customers to Asda. This backs up IGD’s survey which shows a

quarter of customers look for buy one get one free offers when shopping, Wallop (2008).

Promotional Pricing is used to promote a product is a very common application Kurtz, et al

(2009) see it as “pricing policy in which a lower than normal price is used as a temporary

Ingredient”. Anselmo (2010) argue that there are many types of promotional pricing that

company could use for enhancing their sales. Asda in the case of Event starter set newborn

product does the promotion by putting it on sale in its store nearly half its original price. Asda

priced the product at £10.00 from its original market price of £19.98, Asda Special Offers

(2010).

Customers usually prefer to purchase product that are on promotion since customers are

aware that promotion is only going to last for the brief period of time. In 2010 on Boxing

Day sales Asda in its 105 store throughout the United Kingdom attract some five million

customers to their stores. This figure clearly illustrates the general public interest in

purchasing good from promotion available in the stores Yorkshire Post (2010).

In future Asda should continue with this promotion strategy to further improve the customer

perceptions of Asda because current economic recession really impact people’s ability to

purchase excessively as in the past in order for Asda to ensure the steady stream of customers

and encourage new potential customer who don’t affiliate with other supermarkets and are

opportunist shopper like to purchase good from cheap price stores Asda should keep

employing this price promotion strategy.

10. Which of the following types of promotions or special offers do you frequently look out

for?

This data illustrate overwhelming almost 56 respondents stated they are interested in some

type of promotion. Asda at times promotes through its advertising that it has made large price

cuts as a way to attract customer. According to Neil Hamann, a Managing Director, price cuts

are a tactical way for supermarkets to promote their products and address their shoppers

changing needs Marketing Society Forum (2010). 

Asda in the future should reintroduce the strategy of buy get one get one free strategy because

according to Robert & Dex, (2009) Asda have shun this policy from their supermarkets. As it

evident from the statistic large number of customers gives important to promotion available

to them in the supermarket. This backs up IGD’s survey which shows a quarter of customers

look for buy one get one free offers when shopping, Wallop (2008).

There are 4 respondents who stated that free entry to competitions is something there are also

interests them. Asda doesn’t do such events in the store regularly expect on Christmas for

children to encourage customer to participate in it. Asda can in future address this demand of

their customers by having more frequent events of competition for everyone whereby by all

age group customers can take part in and this will help make the store more interesting place

for the customers while further improving the perceptions.

Conclusion

5.1 Introduction

This chapter of the dissertation will conclude the dissertation as a whole and will look at any

issues that were raised as a result of carrying out literature review and imperial work.

This chapter will be addressed in following steps:

Key insights from literature review – In this heading I would look at the strategies that Asda

is currently using to further in enhance the customer perception of Asda and increase their

sales.

Key insights from questionnaire- In this heading I would look at the questionnaire which

customer has responded to most favourable to establish their philosophy in shopping at Asda.

Recommendation - In this heading I would provide Asda with few suggestions which could

help them to focus further on those strategies that helping them most.

Strengths- In this heading I would look at factors that has helped me achieves the purpose of

doing this dissertation.

Limitation of Dissertation - In this last subheading of the dissertation I would look at

difficulties or constraint that I faced in carryout this investigation on Asda pricing strategies.

5.2 Key insights from literature review

Cost leadership strategy was the main strategy for achieving market share came out from the

literature review because Asda overall pricing strategy aim is to be a cost leadership store it

involves a company using aspects of business such as economies of scale and discounts from

suppliers by buying in bulk to enable them to sell their products very cheaply to customers.

According to Ireland et al (2008) they describe cost leadership strategies as “an integrated set

of actions designed to produce or deliver good or service with features that are acceptable to

customers at the lowest cost, relative to that of competitive”. This overall pursuit of cost

leadership strategy has helped Asda great deal in employee pricing strategies which helped

Asda implemented the strategy to the fullest.

Amongst the pricing strategies they are implemented with products sold prime strategy that

Asda is implementing is penetration pricing throughout all of its chain stores in the UK.

Baker (2011) state penetration strategy is used when the firm decide to set the price below the

service’s value to the customer, thereby ensuring a large customer base. It is the trade-off of

higher revenue versus higher margins and can be a very effective strategy especially for new

entrants into particular markets. This strategy has been very successful in achieving the

purpose of attracting customers which is advent from (Fame data 2009) the turnover figures

of Asda reached almost 20 billion pound.

The literature review has demonstrated that supplier like Asda and consumer interact in the

market place to sell and buy good and services pricing is a critical element.

5.3 Key insights from questionnaire

Promotions are important to Asda’s customers in the questionnaire 35 of the respondent’s

state that they always lookout for promotion while 24 says they might purchase product from

promotions and 2 stated they never notice the promotions. This data illustrate that perception

of Asda customer attached high importance how they choose to do shopping as

overwhelming majority show their interest in purchasing products from promotion. This

promotion strategy is already being implemented by Asda throughout all its chain stores to

attract new customers to Asda.

Asda has great customer loyalty of the fifty eight people questioned on their shopping

supermarket preference overwhelming majority of forty respondents said they would shopped

at Asda for all of their groceries. This show Asda customers are really satisfied with prices

available to them in their shopping at Asda.

5.4 Recommendation

Asda uses several pricing strategy in various department to further enhance the market

growth consisting of following, Psychological Pricing, Product Bundle Pricing, and

Promotional Pricing. These pricing strategies implemented at Asda’s stores are very

successful amongst customers should continue with them.

Promotions are important to Asda’s customer in ensuring their loyalty and enhancing their

perception of Asda. This strategy in particular has led to Asda claiming to be a cheapest store

against it’s main Tesco because Asda stating guarantee to their customer “We'll guarantee

your comparable grocery shopping is 10% cheaper at ASDA or we'll give you the difference”

whereby it is claiming to cheapest store ASDA (2011).

5.5 Strengths

Having the availability to compare and contrast literature review with questionnaire enabled

me to develop deeper understanding and also has helped make judgement on my aim and

objective.

Second strength in this dissertation was the ability conduct Face to face questionnaire

because this has allowed respondents to ask questions which otherwise if remained

unanswered or not clarified would have led to obscure data been collected for analysis.

Last strength there was lot of data available on pricing strategies for Asda on electronic

resources. Which helped me develop in-depth understanding on the subject of aim been

carried out.

5.6 Limitation of Dissertation

There were only 58 people were questioned in the survey instead of 100 initially planned

because of time constraint and due to the incorporative attitudes of customers does shopping

at Asda as majority request to take part in the questionnaire simply refused it.

There were more males who responded to the questionnaire than females which may have

resulted in a bias towards a male point of view of the questionnaire.

Limited resources was the other important factor which influenced my research as one person

doing this questionnaire along regular classes forced me to only do my questionnaire in

Glasgow area of Asda’s. Having more resources at my disposal would have allowed me to be

more in depth to compare and contrast with Asda at other geographical locations.

Questionnaire that had been asked to Asda customers had to be limited, could only ask a

certain amount of questions. Since there was a risk customer might either not take part in the

survey or do not complete the full questionnaire leading in inconclusive results.

Couldn’t speak to people in charge of Asda’s pricing policies if had this opportunity this

could have gone in long way to understand the first philosophy of Asda.

Last limitation in doing this dissertation was the fact that each chapter of this dissertation had

to completed at certain time after which I would have to wait for feed back from lecturer in

order to proceed further with my dissertation that took significant time for this process to take

place and as result leaving less and less time for me to do other tasks.

5.7 Future Research

A investigation which compares and contrasts Asda’s pricing strategies and how this affects

their customers perceptions of them with other supermarkets pricing strategies and how this

affects their customers perceptions of them would provide a greater in depth analysis of these

issues.

Having a greater sample size and questioning customers from more than one Asda store

would have resulted in more accurate results. Research which looks at more of Asda’s

customers would allows greater understanding and better reflection on the issues.

Being able to ask more questions would also have resulted in more in depth analysis.

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Appendices

I am forth year student of Honour in Management Enterprise & Technology in the Caledonian University. The following questionnaire is being done to assist in research investigating the effectiveness of Asda in attracting new customers. All responses will be kept confidential.

Please either tick or circle the appropriate box

1. What is your gender?

Male          Female    

2. What is your age group?

18-30       31-60 61 or over

3. Are you solely or jointly responsible for your household’s main shopping for groceries?

Yes..................................................................

No...................................................................

4. Which one of the following statements most closely describes how you shop for your main grocery shopping?

I nearly always visit the same supermarket for my main groceryshopping ............................................................................................................. 1I usually use the same supermarket for my main grocery shopping butoccasionally I may use a different one ............................................................... 2I tend to use two different supermarkets that I alternate between everycouple of shopping trips ..................................................................................... 3I don’t really have a regular supermarket and tend to use whichever ismost convenient ................................................................................................. 4Generally I rely very much on smaller local shops and use asupermarket only occasionally ........................................................................... 5

5. Please tell us which supermarket or shop you use most frequently for your main grocery shopping?

Asda.................................................................................. 1

Sainsbury ......................................................................... 2Morrisons.......................................................................... 3Tesco................................................................................. 4Other – please specify ...........................................................................................................................

6. Supermarkets can vary in the range of groceries and other goods stocked, some of which are shown on this card. Which of the following categories of product, if any, would you regard as particularly important to be able to purchase as part of a single visit to the supermarket for your main grocery shopping?

Confectionery .................................................................. 1Ready prepared meals .................................................... 2Medicines......................................................................... 3DIY products .................................................................... 4Wines, spirits, beer etc..................................................... 5Toiletries........................................................................... 6Newspapers/magazines, books videos etc....................... 7Clothing............................................................................ 8None of of these...............................................................9

The list on this card shows various factors that might affect where people choose to do their main grocery shopping. After looking at the list carefully, please tell us the main factor influencing your decision about where to do your main grocery shopping.

7. What are other factors, if any, are important to you?

Ability to get most of the weekly shopping done under theone roof..................................................................................................... 1 Availability of sufficient car parking space................................................ 2Within easy and convenient reach of home .............................................3Flexible opening hours.............................................................................. 4Extra facilities such as petrol station, coffee shop, pharmacyetc ........................................................................................................... 5Prices charged for groceries ................................................................... 6Proximity to other shops and/or recreational facilities .......................... 7 A large range of grocery products to choose from.................................. 8Products I want always in stock .............................................................. 9Shopping experience/style image of store............................................. 10Other – please specify....................................................................... .............................................................................................................

8. Can you think of any particular supermarket(s) that you would like to use regularly for your main grocery shopping but can’t because the nearest store is too far away or otherwise inconveniently located for you?

Yes........................................................................................................ 1 No......................................................................................................... 2Don’t know .......................................................................................... 3

9. Thinking about supermarket special offers and promotions e.g., ‘two for the price of one’ etc., which one of the following statements best describes your behavior?

I always look out for special offers and promotions andfrequently take advantage of them..........................................................1Although I might buy products featuring special promotionsand offers, I don’t deliberately seek them out ........................................2I never really notice supermarket special offers and promotions ...........3

10. Which of the following types of promotions or special offers do you frequently look out for?

Two for the price of one etc .............................................................. 1Buy one item, get a different one free .............................................. 2Coupons offering price reductions..................................................... 3Price refund promise (if product found cheaper elsewhere)............. 4Free entry to competitions ................................................................ 5Other – please specify ........................................................................ 6None of these......................................................................................7

Thank you for the participation