The Importance Of Service Quality In Tesco Marketing Essay

The Importance Of Service Quality In Tesco Marketing Essay This is about to finding out the importance of service quality, how people give importance and also how this service quality helped the Tesco to wash out the other retail firms even they are equal in size ,market share etc. While purchasing a product the consumer will consider many factors for selecting a retail outlet. Price ,service ,range of products, etc are the promenate ones among them out of this, quality of service plays a vital role the best example for this is the success behind the grocery giant Tesco . Therefore the need and scope of the study is to examine the importance given to the service quality by consumers while selecting retail. Service characteristics: many may have their own presumption regarding the service. It is basically intangible, inseparable, heterogeneity and pershhability. The first one is like people will feel they cannot see. The next state that goods can be purchased but service cannot be purchased like this service facilitates to buy a product. Inseparability is the performance or quality achieved on produced and consumed at the same time. The other one explains that the service quality cannot be determined exactly, it is hard to structure and the last characteristic of this service quality is as this service cannot be stored and provided it should reach the customers in effective manner. (Davies and Ward., P. 282.283, 285).In 1960s and 1970 the price factor was dominating the retailers and their competitor. They were concentrating more on pricing the products, higher margins etc. in 1980s retailers started working more on non price activities like customer satisfaction .service quality etc. t hese factors gave them competitive advantage. They separately worked on customer service strategies developed along with merchandising strategy to process the consumer in search, delivery, store selection process etc this all to retain the customer loyal to the store and makes them come often for the purchase and making the customer consider that their tore as first choice store. If the retailer wants to make good business he has to work on service quality, he has to work on the ways of giving the best service to the customers. (Cook and Wartlers, P.157, 159) Food enterprises started implement this quality control because customers knew the importance of health. So retailers were in stress to use it in order to extend their market growth and also to provide safety food. Small food enterprises have forced to implement because even suppliers started to demand the quality certificate. So small enterprises are forced to get this one this helped them to them compete with competitors. (Husband and Mandal, 1999 and Rodrà ¬nges-Escobar et al., 2006). This Cleary states the importance of quality and a service required by the customers and also tells how people preference has improved. (http/:www.Sundirect.com Copyright  © 2008) There should be a proper sale promotion than only it is meaningful to proper sales will be there or else people will not know about the store, this increase the sale. Like some techniques followed in like stop and shop even customer who not have any idea of getting into the store should be encouraged to do some shopping in the store like if some customer coming to shop should motivate him to buy something and buy bigger this is suggesting the buyer to buy more products in order to give him some offers for e.g. mega mart in India. The importance of this promotion activity makes the store well reputed, selling more goods making the customers comfortable by getting the things they need. for e.g. some goods may be in upper shelf they find hard to get that product there should be some representative to help them.(Pardhan ., p.171) there are lot losses in retail sector only few are able to make profit but also there are lot of difference with these stores many people had research like pric ing, products avialabtiy etc. There are various stores available now lot of oppurnities for people to choose the shops. Generally price and service are the e factors which attract the customer even all store people can reduce the price to certain level but all stores cannot provide the same service quality of another. So basically comparison starts with price and services at present they are able to give the price but not service. In 170s there were big competition between four stores Tesco, sains bury, and asda and kwik save these were making good profit in these periods. These gaining more on 1970-80 not because of own brands but through loyalty. They sold only good products as a result these all stores got well established Tesco 7.2 8.6 8.3 12.0 13.6 Sains bury 6.1 7.02 7.7 11.5 11.9 asda 1.5 2.5 11.5 5.5 7.3 international 3.2 3.0 5.5 4.0 5.2 Fine fare 4.8 4.2 4.0 4.2 5.0 Kwik save 0.3 0.6 1.4 4.0 4.9 Allied supplier 7.9 7.0 5.7 5.0 4.8 . As this table shows the constant growth of the stores like tesco, sains burys, asda and international this growth is because of their prices and service rendered by the store. In consequent years Tesco ranked as 3 from 5 having turnover around  £ 953 million. All other stores are also improving but not like Tesco. (Retail structure pg no: 101, 2nd edition) even there is lot of fluctuatations in growth because of services rendered by the stores. There are variety of competitors there they all compete with Tesco. Tesco shows it s growth only because of various fore thinking strategies. (Akerurst and Alexander., P. 106,) From all the reference we can say that Tesco is steadily growing up with various strategies but it concentrates more on service qualities. Tesco is one of the important stores in British retailing. It sells at low price and also very excellent its service as according to the customer needs it changes the business. Even it has many competitions with equal potential it survive as the first in its performance. (Ferine and Sparks.,, P. 101) Retail environment is turning rapidly, customers wants are changing and also expectations also increased, so retailers find difficult to satisfy the customers changing needs which cannot be retained by price reduction, discounts offers etc. This can be achieved by quality of service given to the customer .for e.g. appropriate space for car parking, enough space for people to shop inside the store etc. for e.g. Tesco which has a great place for car park big place to shop so people find easy to go there and also care taken in stores with public this all services make the store successful. (http://www.springerlink.com/content/230784q16g50121x/) PROBLEM DEFINITION: The main focus of this grocery store is to retain the customer its not like fashion store or footwear store for e.g. if we buy a shirt will use that for certain months or year as similar for shoe and slippers but for grocery it is totally different we will not use the products will consume it so repeated purchases will take within certain time. Grocery is totally different aspect there will be repeated purchases in this segment, because we will not use but we will consume grocery products. Main motivate of grocery retailer is to retain the consumers, which is very essential now a day consumers expectations are more, the need for service is increasing. Therefore the purpose of the study is about service quality because his makes the consumer to retain with the store. The study is about service quality which is also key contribution for the success of Tesco. Objectives of the study: Analyzing the customer satisfaction on the quality of service rendered by Tesco. How Tesco was able to succeed its rivals. What others retailers lack in their service quality. RESEARCH DESIGN: Research design is an arrangement of terms for the collection and verifying the information for a research study, which will clearly states the purpose and need of the research like (for whom ? why ?) .(Saunders ,Lewies , Thornhill .,P., P.153) TYPE OF INVESTIGATION: The research design is Descriptive in nature because; I will be having a clear idea about the person by the answers given by him. Descriptive study is nothing but showing the accurate profile of the person. (Saunders, Lewies, Thornhill., P. 134) SAMPLING DESIGN: Non-Probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in population has being included in the sample. The sampling procedure for the study is non-probability sampling. I am also dont know the correct population, so I define my design as non probability design (Research methods pg no: 207,208,226).the technique used in research is simple random technique it can be used with the undefined population. We can select the results in simple random sampling because these are hard to get correct answers and also my research is also very similar because very large customer so I have taken simple random sampling technique. (Saunders, Lewies, Thorn hill., P. 219) Primary data is the data collected directly from the sample. The primary data will be collected through personal interviews and questionnaires from the consumers who all coming to Tesco. Secondary data are those, which have been already gathered by others. The secondary data was collected from books, company profile, project reports, journals and websites. DATA COLLECTION METHOD: Data collection method should be very appropriate when we decide the method we have to think it in various aspects because we have to yield the good interview. So we have to plan in effective manner. The instrument used for research is a structured questionnaire. The questionnaire will be collected through schedule. A schedule consists of a list of a projects terminal element with intended start and finish dates. Respondents were contacted personally and were questionnaire is collected using schedule. (Saunders, Lewies, Thorn hill, P. 152) CONTRIBUTION OF THE STUDY: From all my reference I am able to understand the importance of service qualities and how it induce the organization it is very important reason for success of Tesco and also because of this lack of service quality many organization lost its market. So all employee in an organization should concentrate on service quality they have to work toward the satisfying customers and retaining them with the organization and also there should be proper motivation given to the employee to give the core benefits to the customers there should be more convenience for eg.24hours opened and 24 ATM insurances car insurances etc these are the services to be rendered.