Penetrating the pricing methods could help beat the competitors in the industry but what effect would it had on the consumers?

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

Determining the pricing strategies for business is one of the toughest challenges being faced by business. The aim of the study is to determine the pricing methods which could help beat the competitors and the effect of those pricing methods on consumers. The study used mixed methodology. In the mixed method, the quantitative and qualitative research methods were employed. Tesco considers pricing as a key strategy on the basis of which low prices strategy was used to maximize sales. The case study of Tesco analyzed that there should be strong strategies developed in order to compete with the competitors. To succeed in the transformation of the services industry and consumer analysis changes occurring today, leaders of organizations must evaluate ways to increase customer retention and loyalty. Pricing strategies including the perspective of the consumer provide organizations with a sustainable competitive advantage. The implication is consumers need a relationship with an organization and a firsthand understanding of the pricing method before they engage with the organization. The study provides the pricing methods Tesco should use which could help beat the competitors in the industry. The findings of the study demonstrated that Tesco should use pricing strategies which should help in attracting the customers and determining the strategies which can help beating the competitors and developing strategies which are effective for the competitors.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Tesco Company Profile1

Aims and Objective of the Study3

Research Questions3

Dissertation Structure4

CHAPTER 2: RESEARCH METHODOLOGY5

Research Methodology5

Data Collection Methods6

Case Study7

Research approach7

Questionnaire8

Research Function8

Benefits and Disadvantages of Mixed Method9

Data collection9

Data Analysis10

Sample Size and Participants11

Limitations11

Ethical considerations11

Confidentiality12

Validity and Reliability12

CHAPTER 3: LITERATURE REVIEW15

Defining Price15

Pricing strategies16

Effect of pricing strategies on consumers17

Consumer Behavior17

Customer Retention18

Customer Loyalty20

Factors Affecting Price Decisions22

Overall Marketing Strategy22

The Market and Demand22

The Economy23

Organizational Considerations23

Importance of pricing methods for competitors23

Competition-Based Pricing27

Competitor Identification27

CHAPTER 4: CASE STUDY TESCO29

Case Study Tesco29

Survey Analysis30

Discussion39

Pricing strategies used by Tesco40

Customer Value-Based Pricing40

Good-Value Pricing41

Value-Added Pricing41

Cost-Based Pricing41

Strategies for pricing methods for Competitors42

CHAPTER 4: CONCLUSION43

Recommendations44

Future Implication45

REFERENCES48

APPENDICES52

Tesco's pricing case study52

CHAPTER 1: INTRODUCTION

Background of the Study

Determining the pricing strategies for business is one of the toughest challenges being faced by business. It raises various questions whether the company should charge premium prices for the products and services and how to set up the prices in order to compete with the competitors. Companies which set up low prices sometimes face challenges which lead to attract the customers who decide them upon the value and price. Low cost providers develop their image on the basis of price strategies and increasing their ...