Asda and Tesco as Popular Vendors in the United Kingdom - Essay Example

The advent of the internet age has triggered a transformation in marketing and business tactics, just as it is led to a transformation in the methods by which consumers buy and sell. Consumer’s web browsing habits can be translated into behavioral events that predict future purchases. A modern enterprise must capitalize on this potential during the design and implementation of an online interface. For the consumer, locating specific goods and services as needed becomes easier than ever through conveniences scarcely imagined in prior decades. This fundamental shift in the realities of commerce is both opportunity and necessity for any business large enough to merit even the most simplistic online offerings (Bellman et al. 1999; Constantinides, 2004). This analysis is an attempt to quantify the success of two modern retailers utilizing these methods, and to what extent an online interface affects customer purchasing and brand loyalty (Harris & Goode, 2004). The data that makes studies such as this worthwhile describes approximately 14 million households in the United Kingdom going online throughout the entire purchasing process, from a product and pricing research to the actual purchase itself over the course of one month (September of 2009) according to the Office of Fair Trading (2010). Other forms of data from various sources will be cited to describe the modern state of electronic commerce in Great Britain, and the growth of online purchasing will be discussed and compared over the course of the past decade, and pertaining to the rest of Europe, for which the UK measures favorably (Cox, 2001; Wood, 2012; NUA, 2013). Seasonal variations in shopping patterns are described in the context of the increasing relevance not only of online purchasing options, is but a presenting easier and more efficient options than competing businesses. Other important results suggest an ongoing rate of growth for subsequent advertising revenue that can be realized for those institutions able to leverage the full potential of Internet advertising as a venue. Over the course of the past decade, there has been a 17% growth rate in the overall revenue potential and profitability possible through online advertising (Office of Fair Trading, 2010). While the implementation of this strategy is and always will be complicated, there is little doubt that this method represents an area of growth potential which must be exploited by any company that wishes to be relevant moving into the future. In the year 2010, various techniques of behavioral advertising which targeted the Internet history of consumers with available products yielded revenue as high as £95m (Office of Fair Trading, 2010). These figures are indicative that of only a portion of the possible revenues that might be realized in the future, and represent a strong incentive not only to continue to expand online offerings in terms of advertising but for modern companies to cultivate a policy of online support for customer convenience and as a way to promote both satisfaction and loyalty. Within the United Kingdom there is potential for additional growth. Online marketing and browsing support allows for an element of behavioral tailoring that is difficult to fully realize it almost any other media, including other high-tech visual forms. An ideal interface is attractive, efficient, and truly responsive. Various pop-up and banner ads can utilize statistical analyses of customer’s habits in order to present content which that particular customer is most likely to purchase based upon their own browsing history. This is not only an ideal tool for entertainment media ventures, but also for vendors that carry basic food necessities. Two popular vendors in the United Kingdom are employing comprehensive online strategies in order to streamline the purchasing process, as well as create greater efficiency within their actual physical locations. The efficiency possible through electronic media allows the adjustment of content in order to maximize the odds of making the sale, serving both the interests of customers and the business enterprise itself. It is necessary to explore real world corporate examples of online strategies and the extent to which can measure and benefits have occurred in terms of profitability, and customer loyalty. Examples will be provided that demonstrate the means by which an easy and rewarding purchasing experience can encourage future use and the desire to remain with that particular company even in the face of competition. The extent to which the online purchasing experience translates into customer satisfaction is an essential area of understanding for the digital age. Electronic marketing allows for a responsiveness that has been long sought after, television producers have attempted it – but no other media can come as close as an online interface for consumer convenience (Kowatsch et al. 2011). An online interface allows optimization and capitalization based on the nature of website navigation in order to produce the most efficient by experience possible, ideally at any rate. A single user has control over online navigation and can therefore customize their browsing experience based on the needs of the moment and their personal preferences, both in terms of purchasing and browsing. It is the task of the retailer with online interests to maximize customer satisfaction throughout this process. This analysis will also document the importance of customer concerns regarding transaction security, and the extent to which concerns in this regard have the potential to impact loyalty and preference. The clear potential of online advertising emphasizes the importance of the electronic purchasing interface used by major retailers in the UK. An expanded online advertising industry has experienced rapid growth since the early 2000’s, the importance of electronic interfaces is underscored by reports which describe advertising through E-marketing as the largest growth sector in the advertising market for the United Kingdom; with a net value of £3.35 billion as of the year 2008 (Office of Fair Trading, 2010), American estimates are as high as $258.7 billion, (Stuart, 2009), and indicators exist is that the importance of E-marketing and electronic interfaces as a result of advertising alone will continue to increase (DTI, 2000; Magna Media Advertising, 2009; PRWeb, 2012). Much of this potential is technological (Chaffey, 2001), through the use of cookies which create temporary storage archives of Internet navigation patterns, essential to behavioral marketing. And this underscores the dark side of the efficiency and anonymity of the Internet, considering the risk to financial information for the consumer which this analysis will describe. Therefore the future of online business may also be defined not only by the ease of interface, but also by customer perceptions of professionalism and protection from online predators. There are intrusive elements that pose a risk during this form of commerce, but the ability to create an interactive site where customers are able. To navigate through physical inventory items at their leisure – and in some cases secure home delivery, is nonetheless advantageous for all parties despite the potential risks (Drossos et al., 2011). Retailers themselves can find ways to strategically represent their inventories with less shelf space if customers are able to browse for rare or unusual items that might exist in a warehouse, and have them delivered – as the largest competing retailers in the United Kingdom typically permit. The new model of electronic business allows the customer to purchase rare items. As availability permits, yet the retailer does not necessarily need to keep unusual items on hand taking up valuable shelf space thanks to home delivery options. Thus the customer is able to find satisfaction, the physical location can be managed more efficiently, and a purchase occurred that otherwise might not have. But having the potential for an online database permitting customers to order specialized items for home delivery is in itself not enough. The factors that influence customer satisfaction in light of this capability and in light of the offerings from competitors will be discussed during the course of this analysis. Specific strategic differences still exist in terms of the marketing strategies for corporations that offer online purchasing options. Different measures must be undertaken depending upon the realities of the merchandise itself (Chaffey 2006), as well as the cost; a company that delivers books through the mail as a result of online purchases must by necessity adopt different strategies and timetables than the company that attempts to deliver perishable foods. Nonetheless, this study will explore the importance of these options, and the ways in which increased usage of an e-business website will translate into greater revenue for the company. A streamlined electronic purchasing process carries other benefits as well if the company in question can execute it efficiently (Oppenheimer & Ward, 2006). By minimizing the amount of shelf space necessary to contain items in a retail environment, it is possible to warehouse more items and ultimately lower costs for the consumer. Therefore the buyer receives items that would otherwise be rare or difficult to obtain, and is more likely to receive such items – and other essentials offered by the company at a reduced cost. Through electronic marketing, it is also possible for the businesses themselves engaged in electronic commerce to form cooperative networks with one another. As the laws permit, it is possible for businesses to share customer information and demographic data concerning purchasing and browsing trends with one another in order to provide more consumer data that will allow greater accuracy in behavioral targeting (Joines et al, 2003). This greater efficiency again, will permit advertising benchmarks to be achieved at reduced cost to the company, saving money that can be used to improve physical operations, websites, and also to lower prices. For the purposes of this analysis, comparisons will be conducted between the online purchasing practices and comparative customer satisfaction results of ASDA and TESCO. An in-depth study of customer satisfaction pertaining to the online purchasing process will grant insights concerning the viability of each company concerning the new realities of the digital age. The strengths and weaknesses of each organization will be weighed in terms of customer satisfaction through online purchasing methods. This will allow the development of a comprehensive understanding of the strengths and weaknesses of either business. This analysis purports to develop a profile of each company, to foster an understanding of what specific areas of commerce each organization excels at, using their online purchasing interfaces as an indicator. Satisfaction on part of the customer through the use of these interfaces is an assumption that will be extrapolated towards general conclusions concerning brand loyalty and customer satisfaction that will define the prospects of success. This analysis will seek to determine whether each company exhibits superiority in a particular limited dimension, or whether it is possible to identify either Asda or Tesco as being demonstrably ‘better’. Another crucial area not to be overlooked is the process of customer service when a complaint does exist relating to products or services – or an online interface method for purchasing. The details concerning customer service responses for either company will be compared, and available data rating both Asda and Tesco in this regard will be documented and factored into the final analysis. Customer service is not to be discounted by an enterprise that expects long-term success (Smith & Rupp, 2003; Schlosser et al. 2006). The extent to which customers believe that the Corporation is concerned with their problems is integral to the growth of brand loyalty (Mayer & Davis, 1999; McKnight et al. 2002; King-Casas et al, 2005), and the process by which customers achieve loyalty to one company or another will be discussed during this analysis. While the exchange of data through various behavioral marketing techniques allows a considerable degree of networking for the sake of efficiency, networking is also essential within the company itself, and this analysis will describe the ways in which customer service professionals can bridge different areas of knowledge within the company in order to ensure that relevant customer issues are dealt with in an effective and timely fashion. This requires an efficient communications protocol within the organization itself, and it can be considered an important indicator of the strength and agility of the Corporation, as well as a vital component of customer service and satisfaction. Various strategies will be presented concerning the ways in which brand loyalty and general customer satisfaction can be achieved, and the ways in which either Corporation presents itself in order to meet this goal. In addition the customer service, as the perception of price fairness will be discussed in the companies will be investigated concerning perceptions of fair play among their customers, and as they relate to each other. Some discussion will also be devoted to the strategy of pricing. In any highly competitive commercial sphere, pricing is only partially dependent upon what rates of payment guarantee profit. Complex strategies are often a necessity in order to resist – or circumvent the market share of a potential competitor. The analysis to come discusses these necessities, and the balance that must be achieved between the perception of a fair price, and measures adopted in response to the pricing strategies of a competitor. As the digital age accelerates, an understanding of essential issues of electronic business is presumed to serve as an adequate predictor not only future success, but where and in what ways these two organizations should invest their resources. A literature meta-analysis combined with surveys will be utilized to determine the extent of customer satisfaction, or dissatisfaction with the online outlets of their respective companies. The discussion will touch upon whether or not technological disparities exist between the companies, which is important pertaining to the functionality of the website in question which defines the face they present to the digital world. Technical issues are important not only in regards to the pure functionality of the purchasing interface, but in regards to the aesthetics of that interface as well. Findings will be presented that identify the extent to which the visual appearance of a website influences perceptions concerning the quality of the company, and its professionalism. The extent to which a website has a pleasing appearance and is easy to use will be factored in to the discussion concerning online commerce between the companies. Evidence will be presented documenting sex-based differences in purchasing preferences, and browsing habits with the potential to influence customer satisfaction. Men and women approach the online purchasing experience differently, and this analysis will detail the specifics that separate preferences, and how this translates into customer satisfaction. There are in addition a range of other demographic factors that are considered during the course of this analysis, such as education and the role it plays in determining income – and how that correlates to Internet usage. These factors are also included in the customer survey reports, underscoring the complex dynamics that determines consumer behavior with respect to physical and online purchases. The successful Corporation must achieve a balance between appearance and functionality in order to successfully navigate the flow of Internet commerce. And the companies in question will be evaluated based not only on technical terms – but on the appeal of online interfaces as described by customer reports. While in absolute terms it is not possible to definitively state whether a particular website looks ‘nicer’ than another, or is necessarily easier to use – but perception equals reality in this case when the customer’s money is at stake. This analysis will be divided into seven chapters, the details of which to be explained below. Realities of the digital age will be discussed in greater detail, in addition to the specifics relating to Tesco and Asda, and the means by which the online offerings from these two companies will be compared against the rubric of customer satisfaction. Graphic figures will be employed as needed to provide a quantitative basis for the conclusions derived concerning the efficiency of online purchasing interfaces and to what degree customers report satisfaction during the buying process. The seventh chapter which contains an appendix, in which the details concerning the questionnaire to be supplied to customers of the respective corporations will be detailed. In addition to the primary research conducted in this manner, a review of the literature concerning Internet commerce, and publicized company data will be used to supplement the survey findings. In addition, the data will be included concerning media perceptions relating to the companies in question. Reports concerning the services offered by these companies, and how they are received by specialist publications and news organizations has the potential to not only alert customers to features they might not otherwise be cognizant of, but such reports depending upon their positive or negative aspects may have potential to influence the opinions of the general public in a prejudicial manner before any services are actually experienced. It is therefore essential to monitor media perceptions so the Corporation can best understand how to position itself in terms of statements, and announcements regarding the introduction of new services, or efforts to lower prices. Trade publications and marketing magazines will be used as source material to derive data that will be factored into the analysis comparing both corporations. All studies have their limits, and a detailed discussion is given concerning the specifics of the methodology used, the strengths and weaknesses of the combined literature review and survey research tactic, as well as sampling techniques. Methods by which potential weaknesses in the study method can be overcome will be discussed at length, and the study will be adapted around the potential shortfalls in the methods proposed. Statistical factors will be discussed in regards to the specific techniques employed, and the sampling size of the population from which data is derived. Stringent measures supported by findings throughout the technical literature will be used as justification for the specifics of the methodology employed. Conclusions will be summarized, and recommendations given for both companies in light of the available data concerning their respective strengths and weaknesses; whether or not it can be determined whether one company has a significant advantage over the other, or whether both companies excel in different areas and to what extent. Asda and Tesco are both highly competitive commercial entities which represent important indicators of the modern state of retail operations within the United Kingdom. They are both competitors within a similar economic niche. This analysis will attempt to define the implicit contest between them using the rubric of online commerce due to its definitive utility presently, and in the immediate future of retail commerce to come. References Bellman, S., Lohse, G., and Johnson, E. 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