Differentiation between Sainsburys Direct and Tesco Direct in the UK - Research Proposal Example

Customer behavior towards online shopping: how they trust “case study of differentiation between Sainsbury’s direct and Tesco direct in UK.” Name: Course: Tutor: Date: Research background Development of online shopping Internet posses an immense methodology used by businessmen in the world today. Online shopping is a business taking place through the internet and linking together all the sectors and markets in the entire business globe. Many people trust the fact that globalization in business, or going global, is a facet that makes use of the internet. The development of world wide websites has seen many companies and organizations link up on grounds of business. Internet business first entered its genesis in the 1960s. The subsequent years have propagated rapid growth and development of commercial online businesses. For instance according to Fernie 2004, p. 58, online businesses have reached an approximate of over thirty million users since the inauguration of the internet in 1960s in the UK (Fernie 2004, p. 58). Tesco Company Background information Tesco is a company based in Sheshunt, United Kingdom. It deals with manufacture and sale of both food and non food products as general merchandise and grocery. The company was established in 1919 by an individual called Jack Cohen. Tesco is considered among the best and leading companies in the world. This is when it comes to aspects as marketing and manufacture of its products and services. The company developed on a vision of “pile it high and sell it cheap.” When the company recognized the importance of going global, it added into it a few internet phrases as “YCDBSOYA,” which literally meant that one cannot do business while seating on an Arse. Currently, the company is operating in fourteen countries across the globe. This is mainly due to incorporation of the internet in its services and products. In the United Kingdom, Tesco Company manipulates almost 20% of the entire transactions based on internet business. The company has a maximum of 492715 employees. Its branches operating in fourteen countries are majorly concerned with further expansion of the business. Tesco Company has a high rate of returns from its products and services. For instance in the year 2010, the company made an average of 8% revenue annual increase. The company exemplifies online business within these 14 countries. Moreover, it is entitled to advance its operations within and outside Europe (Fernie 2004, p. 58). Sainsbury Company Sainsbury Company is an online company that offers immense online goods in terms of groceries besides other home products and tasty recipes. It is one of the largest supermarkets in the United Kingdom. It carries a total share of 16.5% of the entire supermarkets in the United Kingdom. In the 1980s, the company was ranked among Asda and Tesco as it provided products and services through the internet (Dennis 2004, p. 74). Online marketing has been improved by markets as Sainsbury and Tesco. Sainsbury offers a greater option for customers to shop for products as groceries and other non food products. The main vision of Sainsbury supermarket is to provide more and more products to the customers with an aim of remaining as one of the global figures in the market (Needham, D 2000, p. 25-27). Online shopping Online shopping refers to purchase of goods and services via the internet without the intermediary’s services. It entails business to customer online shopping. Many customers in the world are for the idea that technology plays a significant role in the expansion of businesses in the world. Internet is considered a convenient way of practicing business in the present world market. For instance, many consumers find products they are in need of by just visiting the website of a particular retail they intent to buy from. They meet and select the goods they want using a shopping search machine. Use of credit cards and emails is common among consumers shopping online (Breitenbuch 2004, p. 65). Problem of the paper There are diverse factors that influence customers before they decide on taking after online shopping. Customers often experience hardships and insufficiencies in dealing with online shopping. However, the influx of internet in the world market has necessitated many people to shop through it. In the UK, many sellers of goods as retailers, manufacturers and even consumers have to make considerations before deciding on the nature of online shopping to reinforce. Getting customers from their old ways of shopping to online shopping could be a problem but with time, customers are making a difference. Research method This paper has involved a number of research methods in a bid to realize factors that customers consider prior online shopping. Source materials that have been of major concern are journals in the UK, books written and published in the United Kingdom, together with daily articles. These articles have been comprehensively described to give further details regarding the aim of this paper. Therefore, the research carried out has been descriptive in nature. Research showed that both Tesco and Sainsbury companies have embraced this idea of online shopping. Customers are able to access their products and services through the internet. Britain’s markets are currently undergoing major changes due to introduction of online marketing practiced by these two supermarkets. Tesco and Sainsbury’s offer customers a variety of purchasing options that are readily available to them. Competition between these two supermarkets has led to varied perceptions form customers offer the rate of their services and products in general. Therefore, customers demonstrate varied behaviors towards the same (Peck 1999, p. 25-26). Aim This piece of writing has endeavored to exemplify factors that customers consider when dealing with online shopping. Customers demonstrate various kinds of behaviors that are notable with regard to the new technology. The paper has considered Tesco and Sainsbury supermarkets in the United Kingdom, and how customers are able to relate between the two as far as online shopping is concerned. Customers behaviors considered include easiness involved with online shopping, the present state of technology and customer enjoyment, among others. Objectives To determine the real derivation of online shopping according to customer understanding To determine the nature of online shopping in the United Kingdom and the world market To determine the nature of online shopping in Tesco and Sainsbury supermarkets in the UK To determine the various factors that affect customers when carrying out online shopping, which are contributory to market achievements together with their influences To determine the merits and demerits of online shopping To investigate and put in place various marketing strategies that lure customers to exemplify online marketing and shopping Discussions Consumers all over the world consider several options before marketing. Internet shopping is useful to many customers. It offers an easy way of shopping. Tesco and Sainsbury supermarkets offer this kind of service to many customers in the United Kingdom. According to Cim Professional (2011, p. 94), the manner in which a customer views an ease of interaction with the web makes it easy for him or her to access various products and services for purchase. The rise in technology levels in the United Kingdom has enable many consumers switch to online shopping due to their ease of access and delivery of service. For instance, in the United Kingdom, about 70% of consumers in Tesco and Sainsbury supermarkets have access to internet services of the two companies. According to Cim Professional (2011, p. 94), customer satisfaction and confirmation are critical in internet shopping at the moment in the UK. Customers are endowed with certain expectations concerning the products given out at the pre purchase stages in a supermarket. Customers have a cognitive belief that internet products and services will satisfy them. That is why Tesco and Sainsbury companies managed to advance to internet shopping and get established (Cim Professional 2011, p. 94). Peck (2002, p. 45), puts it out that customer trust is critical in online shopping. It entails a multidimensional concept relating to a variance of sales persons, company, products and the internet trust of the consumer. In Tesco and Sainsbury companies, customers have trusted the immense of technology that the companies have taken. Customer trust on the two companies has enabled them go global in their marketing services in the United Kingdom. According to Peck (2002, p. 22), customers derive some scale of enjoyment. The design and internet formation provided by the Tesco and Sainsbury companies are responsible for an influx of many customers to online shopping in their supermarkets. Moreover, according to Peck (2002, p. 27), there are other factors that customers consider regarding online shopping. Some of these are based on the utilitarian and hedonic factors (Peck 2002, p. 23). Online shopping is disadvantageous to customers on some ways. Customers are not able to check on materials personally before they purchase them. Hence, many of them are subjected to fall victim to identity theft. Cases of fraud among sellers are eminent with online shopping. In Tesco and Sainsbury supermarkets, cases of hiked prices are common due to online selling. However, online shopping still remains one of the best in the United Kingdom (Peck 2002, p. 46). For a better use of online shopping, customers are always encouraged to bear legitimacy of the companies to purchase products, legitimacy of the sellers operating in that company and the overall legitimacy of the nature of goods and services one is in need of. Conclusion Online marketing is a global facet used by many organizations and businesses to expand their businesses. Globalization is a resultant factor of online business. Modern business transitions have moved form the current state of local culture to globalization due to introduction of internet in the world. Tesco and Sainsbury companies have advanced online marketing in the United Kingdom. Through online and internet shopping, Tesco has seized the global recognition and customers all over the globe. On the other hand, Sainsbury has advanced in the level of productivity and consumer power in the United Kingdom market (Zook 2004, p. 46). References Breitenbuch, M 2004, Online Food Shopping: Consumer Perception and Retailers Market Approach, Contrasting the Markets UK and Germany, GRIN Verlag, Waitrose, UK, retrieved on 15th May, 2012. Cim Professional, 2011, Relationship Marketing: Strategy and Implementation, CIM Professional Development Series, Birmingham, UK, retrieved on 15th May, 2012. Dennis, C 2004, E-Retailing, Routledge, Manchester, UK, retrieved on 15th May, 2012. Fernie, J 2004, Logistics and Retail Management: Insights into Current Practice and Trends from Leading Experts, Kogan Page Publishers, Starling, UK, retrieved on 15th May, 2012. Needham, D 2000, Advanced Business: For the 2000 Standards, Heinemann, Manchester, UK < http://books.google.co.ke/books?id=7MF9Tc1snxEC&pg=PT298&dq=Needham,+D+20 00,+Advanced+Business&hl=en&sa=X&ei=e- ayT6zUN427hAffyOjkCA&ved=0CDQQ6AEwAA#v=onepage&q&f=false> retrieved on 15th May, 2012. Peck, H 1999, Marketing series (London, England), Professional development, Routledge, Cranfield, UK, < http://books.google.co.ke/books?id=sULd00aYYxEC&pg=PA324&dq=Peck,+H+1999,+ Marketing+series+%28London,+England%29,&hl=en&sa=X&ei=3eayT9iyJoGGhQf5i- HRCA&ved=0CDQQ6AEwAA#v=onepage&q=Peck%2C%20H%201999%2C%20Mark eting%20series%20%28London%2C%20England%29%2C&f=false> retrieved on 15th May, 2012. Peck, H 2002, Relationship Marketing, CRC Press, Shifield, UK, < http://books.google.co.ke/books?id=ryg_csDnxMkC&pg=PA179&dq=Peck,+H+2002,+ Relationship+Marketing,&hl=en&sa=X&ei=SueyT8a3MZGYhQealpzhCA&ved=0CDQ Q6AEwAA#v=onepage&q=Peck%2C%20H%202002%2C%20Relationship%20Marketi ng%2C&f=false> retrieved on 15th May, 2012. Zook, C 2004, Beyond the Core: Expand Your Market Without Abandoning Your Roots, Routledge, Manchester, UK, < http://books.google.co.ke/books?id=4xJDSN1ooAkC&printsec=frontcover&dq=Zook,+C +2004,+Beyond+the+Core&hl=en&sa=X&ei=m- eyT_3oHIWWhQfzt9ifCQ&ved=0CDcQ6AEwAA#v=onepage&q&f=false> retrieved on 15th May, 2012. Read More