Unit7.5 Research for Senior Managers, Level &, Athe

2. The rationale of the study

Main aim of current research is to identify the effectiveness or impact of pricing operations of the firm. The current study aids in ascertaining specific area of marketing concept. Several other researchers have conducted a study on the respective topic, however, they fail to identify the impact of pricing practices of company. Therefore, scholar has selected the present topic to fulfil limitations of researches as well as make effective judgements or recommendations to enhance the sales performance of company. Furthermore, marketing is a vast concept which provides readers with an insight on diverse aspects of sales and promotion. Additionally, it creates a wide scope for the investigator to conduct research in an appropriate manner as well as to identify the relevant areas which can be highlighted as well. Therefore, researcher has selected the present topic based on his personal interest. This will further help in ascertaining complete relevant information so as to conduct the report in an appropriate manner by presenting all facts and figures. Moreover, the investigator has personal interest on respective topic which will further help in achieving the desired results.

Aim: To identify the impact of pricing decision on sales performance of company- A case study on Marks and Spencer

Objectives:

• To assess different kinds of pricing strategies used by the clothing industry
• To determine effectiveness of low prices on the demand of products
• To recommend the ways in which sales performance of M&S can be enhanced

Research Questions

• What are the different kinds of pricing strategies selected by clothing industry?
• How does the low prices influence demand of products?
• What are the ways in which sales performance of M&S can be enhanced?

Task 2

1. Critical Review

Kinds of pricing strategies

As per the opinion of Gilmore and et.al., (2013), there are different kinds of pricing strategies adopted by company according to current situation prevailing in the market as well as action plans adopted by customers. However, it has been ascertained that some of the pricing strategies adopted by firms include economic, penetration and psychological. These are however decided after completing analysis of customer’s behaviour towards prices and the external environment which may affect their buying pattern.

Effectiveness of low prices

As per the view points of Wang and et.al., (2016), people get highly influenced by the alterations in pricing strategies of company. It aids in determining or ascertaining the sales of enterprise based on customer behaviour and buying pattern. In addition to it, Kireyev, Kumar and Ofek, (2014) supports by stating that higher the prices of products and services will be; lesser would be the demand of its goods and services and vice versa.

Methods to improve sales performance

Xie and et.al., (2016) critically states that pricing is not the only strategy through which performance of company can be enhanced. Nonetheless, there are varied techniques and ways in which it can enhance its operations. Some of the most prominent methods suggested by Guo and et.al., (2013) includes promotion, personal selling, improving the customer relationship, providing ancillary services, etc. However, pricing is also the most prominent method through which sales performance of respective company can be improved.

More About: MOD003327 Strategic Management Level 6

2. Research methods

In order to conduct the above research, the following methods will be selected by scholar so as to conduct the study in an appropriate manner.

• Researchapproach: Since it is a qualitative study, investigator will be using an inductive approach as it is the most suitable for present study of pricing strategies. This helps researcher to observe the behaviour of customers and draw patterns  based on the hypothesis  which further leads to defining theory (Silverman, 2016).
• Researchdesign: Since scholar will be going to describe the areas which have not been identified in the past studies, therefore, descriptive design shall be used. Although, there are varied kinds of research designs which can be used by the investigator, it includes exploratory, experimental and casual. However, in the present study, it is describing a fact that is impact of pricing decision on the sales performance of company. Therefore, the descriptive style will be used.
• Datacollectionmethod:In order to conduct the literature review in an appropriate manner and highlight the relevant information regarding pricing decisions and its methods, secondary method of data collection will be selected by the researcher. However, primary data will also be used in the current study therefore, questionnaire will be prepared to gain the reviews of customers (Merriam and Tisdell, 2015).
• Data Analysis: Since it is a qualitative study, therefore, thematic analysis will be done by the scholar wherein themes shall be prepared based on objectives and questions that has been asked by the investigator to customers.

3. Gantt Chart

In order to conduct the research study, following activities will be conducted in the respective manner:

Activities

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Designing research proposal

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Making critical review

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Preparation of aim and objectives

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Accumulation of secondary information

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Evaluating secondary data

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Drafting literature review

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Selection of research methods

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Preparing questionnaire

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Conducting surveys

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Evaluating results

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Preparing themes

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Making recommendations

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Printing and binding

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Submission

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Task 3

1. Title

Aims: To identify the impact of pricing decision on the sales performance of the company- A case study on Marks and Spencer.

Objectives:

• To assess different kinds of pricing strategies used by the clothing industry
• To determine the effectiveness of low prices on the demand of products
• To recommend ways in which sales performance of M&S can be enhanced

2. Literature Review

Different kinds of pricing strategies

In the view point of Guijarro and et.al., (2016), there are different kinds of pricing strategy that is adopted by different companies. The choice lies in the hands of the marketers based on its current strategies and market demand. However, some of the most common kinds of pricing strategy adopted by the apparel industry includes penetration pricing. It is used in order to attract customers with low preference price. Nonetheless, when a new firm enters into a developed market, it uses the respective strategy so as to gain wider consumers thereby enhancing it market share.

In contrast to it, Wu, (2013) states that economy pricing is used by the companies in those cases when it wants to strike price conscious consumers that can render high amount of sales volume. Furthermore, this strategy is not useful for the small enterprises as they have a small amount of sales volume which may further increase their cost of product thereby leading them to debt situation. Apart from this there are numerous kinds of pricing strategy which can be used by the senior manager in order to the achieve the sales target of the period which includes bundle, skimming, psychology, etc. Moreover, as per the opinion of the Herrmann and et.al., (2015) when a new clothing material is launched or brought up in the market then the companies intent to set the prices high as the new features and ancillary services or advantages provided by the product is much higher which caused an increased demand of the services. In addition to it, all these give rise to organizations making higher sales and profit in the respective period and thereby lowering its rates later on when the demand get reduced.

Effectiveness of low prices on demand

In the view point of the Safdarian, Fotuhi-Firuzabad and Lehtonen, (2014), people are highly price conscious in the present world which caused them to select diverse options or substitutes products that are available to them at low prices. Since demand and price are two determinants which are highly influenced by each other. Several studies has demonstrated that the their is a direct relationship between the price and demand of the product. When the rates of the goods are reduced by the companies then it is likely to influence or increase its demand. Furthermore, vice versa is experienced when the products are expensive in nature, the customer switch to other brands or substitutes products which is offered by the other rivalry firms. Gilmore and et.al., (2013) denotes that, in order to raise the sales performance of the organization, the marketers chooses to reduce the prices of the products and services so as to attract new customers and enhance its operations.

Methods to increase sales performance

Sales of the company is the most crucial component which decides its profitability as well as its current position in the market. Therefore, the marketers are engaged in devising new strategies and plans that aids in improvising its current performance thereby enhancing its sales for the period. In the view point of the Wang and et.al., (2016) it depicts that there are varied methods to enhance the sales of the company which includes branding, promotion, customer satisfaction, etc. There are varied customers that are brand conscious and chooses to wear branded clothes. Therefore, sales of a company can easily be raised by the means of selecting appropriate branding decision and devising marketing strategies for the target group. Apart from this, promotion and special offers are also an appropriate method through which the target customers can be attracted by the companies and based on this sales can be enhanced. Furthermore, discounts, buy one get one free aids in gaining customer loyalty as well as increases the sales operations of the firm. Therefore, all the above demonstrated methods aids in the organization to enhance its sales (Ingram, 2017).

6. Research Methodology

There are numerous methods and ways to collect the data and use them in the most profound manner so as to make the study authentic and appropriate in manner. The scholar has selected the following methods and techniques in order to conduct the above report appropriately.

• Researchapproach: There are two kinds of research approach which can be used by the scholar. It includes inductive and deductive approach wherein the former one has been used by the investigator to conduct the study (Merriam and Tisdell, 2015). The reason behind selecting the respective method is that, since the present study is based on qualitative analysis. Therefore, data will be collected by the investigator on the basis of observation on customers buying behaviour. Thereafter, the concepts will be formed which can further take the form of theories.
• Researchdesign: There are many kinds of research design which encompasses of exploratory, experimental, causal and descriptive. Since the present study describes the importance or impact of pricing decision on the sales performance of Marks and Spencer. Therefore, descriptive analysis has been selected wherein each concept has been described clearly to approach at relevant theories.
• DataCollectionmethods: For the current study both the primary and secondary data has been selected by the researcher which will aid in accumulating relevant information for the successful accomplishment of results (Cohen and et.al., 2014). Moreover, primary data has been collected by the customers in form of questionnaire. For this purpose a sample of 50 customers has been taken by selecting the stratified sampling method. Moreover, in order to conduct literature review in an appropriate manner, books, journals, articles, newspapers has been refereed by the scholar as a secondary source.
• Researchphilosophy: There is no perfect definition to the research philosophy. However, there are types of philosophy that can be used by the scholar including interpritivism and positivism (Haines and et.al., 2014). As the word suggest that interprivitism is used for the purpose of interpreting any concept. Contradictory to it, positivism is used in order to identify real facts. However, scholar has selected positivism philosophy to identify the reality behind the effects of pricing decision on the sales performance of the company.
• Dataanalysis: Since the present report is base don qualitative analysis of facts and figure therefore, themes has been prepared by the scholar to analysis the responds presented by the scholar based on which recommendations has been made and theories has been presented.
• Sampling: For the present research scholar has stratified sampling wherein every nth number of customer shall be selected in order to conduct the survey and derive relevant information so as to the prepare themes on the same. Moreover, it is more useful than the other methods of collecting sampling such as random and cluster as proper preference is being given to each participants rather than selecting the respondents on random basis. Moreover, it removes the biased attitude of the scholar and aids in presenting as well as conducting the research in an accurate and desirable manner (Mackey and Gass, 2015).

4. Questionnaire

Questionnaire

Personal information

Name: __________________

Age: _______

Occupation:

• Business person
• Professional
• Service class
• Unemployed

Gender

• Male
• Female

Q 1) What do you first consider while purchasing a particular product?

• Price
• Brand
• Quality
• Customer services
• All of the above
• None of the above

Q 2) Do low prices is likely to attract you to make a purchase?

• Yes
• No
• Maybe

Q 3) Are you satisfied with the current pricing strategy proposed by the Marks and Spencer?

• Highly satisfied
• Satisfied
• Neutral
• Dissatisfied
• Highly dissatisfied

Q 4) What makes you revisit the retail store of Marks and Spencer over and again?

• Low priced products
• High brand image
• Quality products offered
• All of the above
• None of the above

Q 5) What in your opinion is more likely to intensifies the customers to purchase?

• Promotional schemes
• Economic pricing
• Discount offers
• Special offers
• All of the above
• None of the above

5. Record and Collection

Q 1) What do you first consider while purchasing a particular product?

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Price	Â	25	Â	Â	Â	Â	Â
Brand	Â	5	Â	Â	Â	Â	Â
Quality	Â	8	Â	Â	Â	Â	Â
Customer services		2	Â	Â	Â	Â	Â
All of the above		9	Â	Â	Â	Â	Â
None of the above		1	Â	Â	Â	Â	Â
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Q 2) Do low prices is likely to attract you to make a purchase?					Â	Â	Â
Yes	38	Â	Â	Â	Â	Â	Â
No	5	Â	Â	Â	Â	Â	Â
Maybe	7	Â	Â	Â	Â	Â	Â
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Q 3) Are you satisfied with the current pricing strategy proposed by the Marks and Spencer?
Highly satisfied		12	Â	Â	Â	Â	Â
Satisfied	Â	16	Â	Â	Â	Â	Â
Neutral	Â	12	Â	Â	Â	Â	Â
Dissatisfied	Â	4	Â	Â	Â	Â	Â
Highly dissatisfied		6	Â	Â	Â	Â	Â
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Q 4) What makes you revisit the retail store of Marks and Spencer over and again?							Â
Low priced products		15	Â	Â	Â	Â	Â
High brand image		5	Â	Â	Â	Â	Â
Quality products offered		6	Â	Â	Â	Â	Â
All of the above		24	Â	Â	Â	Â	Â
None of the above		0	Â	Â	Â	Â	Â
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Q 5) What in your opinion is more likely to intensifies the customers to purchase?							Â
Promotional schemes		1	Â	Â	Â	Â	Â
Economic pricing		12	Â	Â	Â	Â	Â
Discount offers		26	Â	Â	Â	Â	Â
Special offers		6	Â	Â	Â	Â	Â
All of the above		3	Â	Â	Â	Â	Â
None of the above		2	Â	Â	Â	Â	Â
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6. Interpretation and analysis

Price is the most effluent factor contributing purchase decision of customers

When customers were asked about the factors that influences their purchase decision then, 25 out of 50 said price is the most important factor that affects their purchase decision which is almost 50% of the people agreeing with the same. However, other variables were also provided to them such as quality, brand, customer satisfaction but most of them choose price. Therefore, it can be stated that price has a high influence over the sales operation of Marks and Spencer.

Low prices of the products and services is most likely to attract the customers

When the investigator asked the customers about their views regarding the prices. Then most of them replied with a yes the question. Herein, when the companies offer products and services at lower prices, then it will help them to make high amount of sales in the respective period. As consumers tend to make purchase only when the prices of the goods get reduced over time.

Customers are satisfied with the current strategy adopted by the Marks and Spencer

The investigator asked the buyers about their satisfaction level from the current prices offered for their products and services then most of them were satisfied with the current prices. This can be analysed from the responses that were given by the participants. Herein, approximately one third of customers responded that they are satisfied with the economic pricing charged for the products and services of Marks and Spencer.

Low prices, quality and branded products cause the consumers to revisit the retail outlets of the M&S

It has been assessed that low prices and other variables such as brand image and quality are the most influential factors which cause the consumers to make purchase from the respective company over and again. Furthermore, 48% of the participants agreed that all the determinants has equal and considerable amount of influence over their purchase decision. Therefore all the variables are interdependent on each other.

Discount offers is the best strategy to influence the sales of M&S

It has been witnessed from the answers that were provided by the respondent that discount offers intent to make purchase more than any other variable. Herein 26 participants presented a consent on the following factor while 12 people said when economic pricing strategy is adopted by the company, then they get engrossed in shopping activities. Therefore, it can be stated that discount offers has a high amount of the influence over the sales operations of the company.

7. Recommendations and conclusion

From the above description on impact of pricing strategy on the sales performance of the company it can be ascertained that price plays a decisive role in enhancing the operations of the company. Therefore, the company needs to adopt diverse and the most influential strategy through which maximum profit can be made and aids in meeting the best interest of the customers. in addition to this, further the research shall be conducted on the impact of branding and promotional tools on the customer buying behaviour pattern which shall help the researcher and learner to gain insight of all the crucial aspects of marketing. along with that their influence on a company's performance can be assessed.

References

• Cohen, L. L. and et.al., 2014. Single-case research design in pediatric psychology: Considerations regarding data analysis. Journal of pediatric psychology. 39(2). pp.124-137.
• Gilmore, A. B. and et.al., 2013. Understanding tobacco industry pricing strategy and whether it undermines tobacco tax policy: the example of the UK cigarette market. Addiction. 108(7). pp.1317-1326.
• Guijarro, L. and et.al., 2016, September. Optimal pricing strategy for a wireless sensor data broker under a Zipf-distributed sensing rate offer. In Personal, Indoor, and Mobile Radio Communications (PIMRC), 2016 IEEE 27th Annual International Symposium on (pp. 1-6). IEEE.
• Guo, X. and et.al., 2013. Cooperation contract in tourism supply chains: The optimal pricing strategy of hotels for cooperative third party strategic websites. Annals of Tourism Research. 41. pp.20-41.
• Haines, T. and et.al., 2014. A novel research design can aid disinvestment from existing health technologies with uncertain effectiveness, cost-effectiveness, and/or safety. Journal of clinical epidemiology. 67(2). pp.144-151.