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Transcript of An exploration of the use of price match guarantees in UK supermarkets from a consumer perspective.
7/29/2019 An exploration of the use of price match guarantees in UK supermarkets from a consumer perspective.
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An exploration of the use of price match guarantees in UK
supermarkets from a consumer perspective.
D. S. Childs
BA Marketing Management 2012
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This Project is submitted in part fulfilment of the requirements for the
Degree of BA with Honours in Marketing Management at the Manchester
Metropolitan University Business School.
An exploration of the use of price match guarantees in UK supermarkets from a
consumer perspective.
Daniel Stephen Childs
19/3/2012
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This Research Project is an original and authentic piece of work by me. I
have fully acknowledged and referenced all secondary sources used. It has
not been presented in whole or in part for assessment elsewhere. I have
read the Examination regulations, and am fully aware of the potential
consequences of any breach of them.
Signed …………………………….
Date ………………………………..
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Abstract
This research project explored the way in which the introduction of Price Match
Guarantees (PMGs) by UK supermarkets affects consumers. The main objectives
were to discover the impact on consumer‟s price search behaviour and tounderstand the effect on supermarket choice. The study focused specifically on
undergraduate students in order to maximise access and to take advantage of
their insight as newly independent shoppers.
The current academic understanding of PMGs is mainly focused towards the US
market, where research is generally aimed towards non-grocery retail stores. The
literature on PMGs focuses on several key areas including; the effect on price
search, price perception, price knowledge, store choice and the ways that the
PMG is implemented. The knowledge gaps that the research projected aimed to fill
were based around all areas of PMG literature due to there being no prior
research into the phenomenon as it exists in the UK.
The research methodology was designed from a phenomenological philosophy
and had a focus on the generation of qualitative data through the use of in-depth
interviews. A total of four in depth interviews were conducted in order to minimise
the repetition of data and to allow for sufficient time to be spent with each
interviewee. The data was analysed using a form of thematic analysis which
involved creation of codes, themes and ultimately models in order to fully display
the richness of the data.
The research found that the consumers did not follow the same price search
behaviour as the current literature describes due to a higher value placed on time
and a high perceived cost to take advantage of PMGs. The research also showed
that although PMGs may tempt consumers to stores with the offer, there are other
factors such as convenience that are more important to consumers than price.
Overall, the research achieved the objectives that were set and acts as a
foundation for future research in the UK market. It contributes a small but crucial
amount of knowledge to the existing PMG literature and provides the only
consumer focused research into the specific nature of PMGs in the UK market.
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ii
Acknowledgements
I would like to first thank my research project tutor Dr Catherine Ashworth for her
support and wonderfully thoughtful insights into the project. Her guidance, interest
and expertise allowed me to engage with and understand the research process ina way that would have otherwise been impossible.
I am extremely grateful to my mum and dad for supporting me throughout my
degree and for always believing in my ability.
A special thank you to my girlfriend, Amy for her love and support during the
stressful times.
Finally, thank you to all my friends for the distractions when it all got too much!
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Table of Contents
Abstract................................................................................................................... i
Acknowledgements............................................................................................... ii Table of Contents ................................................................................................. iii
List of Tables ........................................................................................................ vi
List of Figures....................................................................................................... vi
Introduction ........................................................................................................... 1
Section 1.0 Background to Research Study ....................................................... 2
1.1 Supermarket Pricing Strategies ...................................................................... 3
1.2 Global Economic Crisis .................................................................................. 3
1.3 Initial Response by Supermarkets .................................................................. 4
1.4 Introduction of Price Match Guarantees ......................................................... 5
1.5 Defining Research Scope............................................................................... 6
1.6 Research Aim ................................................................................................. 8
1.7 Objectives ...................................................................................................... 8
Section 2.0 Literature Review............................................................................... 9
2.1 Overview ...................................................................................................... 10
2.2 Price Search ................................................................................................. 12
2.2.1 Price Search Background ...................................................................... 12
2.2.2 Pre-Purchase Price Search ................................................................... 13
2.2.3 Post-Purchase Price Search .................................................................. 132.2.4 Price Perception .................................................................................... 15
2.2.5 Cost of Price Search .............................................................................. 16
2.3 Claiming the Price Match Guarantee ........................................................... 17
2.3.1 Refund Depth ......................................................................................... 19
2.3.2 Timing .................................................................................................... 20
2.4 Price Match Guarantees as Anti-Competitive............................................... 20
2.5 Analysis of Literature in the context of the UK market ................................. 202.6 Knowledge Gaps .......................................................................................... 22
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Section 3.0 Methodology .................................................................................... 24
3.1 Research Process ........................................................................................ 25
3.1.1 Philosophy ............................................................................................. 26
3.1.2 Approach ............................................................................................... 26
3.1.3 Strategy ................................................................................................. 27
3.1.4 Choice ................................................................................................... 27
3.1.5 Time ....................................................................................................... 28
3.1.6 Technique .............................................................................................. 28
3.2 Research Design .......................................................................................... 28
3.2.1 Method ................................................................................................... 29
3.2.1.1 Interview Styles ............................................................................... 29
3.2.1.2 Grand Tour Themes ....................................................................... 30
3.2.1.3 Pilot Interview ................................................................................. 31
3.2.1.4 Final Interview Design .................................................................... 31
3.2.2 Sampling ................................................................................................ 31
3.2.2.1 Sampling Technique ....................................................................... 32
3.2.2.2 Sample Size.................................................................................... 32
3.2.3 Collection and Analysis of data .............................................................. 33
3.2.3.1 Ethics .............................................................................................. 34
3.2.3.2 Data Recording ............................................................................... 34
3.2.3.3 Data Analysis .................................................................................. 35
Section 4.0 Findings and Discussion ................................................................ 38
4.1 Price Search behaviour ................................................................................ 39
4.1.1 Price Knowledge .................................................................................... 40
4.1.2 Cost of Price Search .............................................................................. 41
4.1.3 Post Purchase Price Search .................................................................. 43
4.1.4 Effective Price Match Guarantees ......................................................... 43
4.2 Supermarket Choice .................................................................................... 44
4.2.1 Convenience .......................................................................................... 46
4.2.2 Type of shop .......................................................................................... 46
4.2.3 Trustworthiness of store ........................................................................ 47
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Section 5.0 Conclusion ....................................................................................... 49
5.1 Meeting Objectives ....................................................................................... 50
5.2 Direction of Future Research ....................................................................... 51
5.3 Implications .................................................................................................. 51
Section 6.0 References ....................................................................................... 53
Section 7.0 Appendix .......................................................................................... 62
7.1 Price Match Guarantees as Anti-Competitive............................................... 63
7.2 Sample Interview Transcript One ................................................................. 65
7.3 Sample Interview Transcript Two ................................................................. 687.4 Sample Interview Coding ............................................................................. 70
Word Count - 12,156
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List of Tables
1.1 Comparison of the PMG offerings of ASDA, Sainsbury's and Tesco ............ 6
2.1 Overview of literature reviewed ................................................................... 113.1 Comparative interview types and situations of use. ..................................... 29
3.2 Break down of selected interviewees. .......................................................... 33
3.3 Example of a coded observation. ................................................................. 36
4.1 Quotes describing construction of price knowledge. .................................... 40
4.2 Quotes describing price perception of UK supermarkets. ............................ 41
4.3 Quotes describing purchasing habits. .......................................................... 43
4.4 Comparison of thoughts relating to PMG effectiveness .............................. 444.5 Importance of themes relating to the choice of a store. ................................ 45
4.6 Quotes describing store trustworthiness. ..................................................... 48
List of Figures
1.1 Diagram displaying potential research focus areas ....................................... 7
2.1 Model of PMG Effectiveness in lowering perception of store price .............. 15
2.2 Factors related to claiming the PMG ............................................................ 17
2.3 Effects of reputation and retail environment on perceived service quality ... 18
2.4. Model of PMG effects on consumers .......................................................... 21
2.5. Model of characteristics needed for an effective PMG offering ................... 22
3.1 The research process „onion‟ ....................................................................... 25
3.2 Diagram of „grand tour‟ themes used in the interview design. ...................... 30
3.3 Processes involved in the thematic analysis of data .................................... 36
4.1 Themes involved in price search behaviour ................................................ 39
4.2 Factors identified from research as causing high search costs ................... 42
4.3 Themes involved in store choice ................................................................. 45
4.4 Display of interviewees‟ shopping habits ..................................................... 47
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Introduction
This research project looks at the consumer reaction to the use of price match
guarantees (PMG) in the retail grocery sector within the United Kingdom (UK). The
use of price match guarantees covering a whole basket of goods is a pricing andmarketing tactic that has not been used before in the UK (Shah 2011). Although it
has, in some instances, been used in the United States and other countries, there
has been limited academic study of PMGs focusing specifically at grocery
shopping. Asda, Sainsbury‟s and Tesco, the three largest supermarkets in the UK,
all now use the tactic therefore, it is in the interests of business academics and the
public to gain an understanding into this process.
The first section will look at the background relating to the research problem,
looking at how, when and why supermarkets first introduced PMGs. In the second
section there will be a review of the literature related to the area of PMGs, an
analysis of this will be used in order to find knowledge gaps in the current
academic understanding. The third section will contain the methodology which will
look at the approach, design and the sampling methods used to undertake the
research. The fourth section will contain an analysis and discussion of the data
collected by the empirical research. The final section will then conclude by looking
at the extent the research objectives were filled and by discussing the impact on
future research in this area.
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Section 1.0
Background to Research Study
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This section will examine the precursor of events that led to the implementation of
PMGs by the three leading UK supermarkets; Asda, Sainsbury‟s and Tesco. An
understanding of these events will give the current situation context, allowing for
the literature review to be analysed with this situation taken into consideration.
1.1 Supermarket Pricing Strategies
In terms of general supermarket pricing, one of two main strategies are employed;
everyday low pricing (EDLP) or the offer of temporary price reductions (Lindsey-
Mullikin and Petty 2009; Ellickson and Misra 2006). Wal-Mart is considered one of
the pioneers of EDLP and is the strategy that has been employed by their UK
subsidiary company, Asda (Finch 2009; Ellickson and Misra 2006). Meanwhile,
Sainsbury‟s and Tesco use the strategy of frequent, highly discounted promotions
which are used to offset the high prices on some items by offering large savings
on others (Chakraborty et al 2011).
1.2 Global Economic Crisis
The use of the PMG tactic in supermarkets can trace its roots back to the 2008
global economic crisis. This caused widespread financial losses and resulted in
several economic regions entering a recession; notably North America, the
Eurozone and the UK (Nayyar 2011; Lim and Sng 2011). The crisis was caused by
many inter-related factors which stemmed from the collapse of the 2007 U.S.
housing market bubble; the overvaluation of houses which were sold to consumers
on high mortgages (BBC 2007). By the time the market crashed, these subprime
mortgages had been converted into banking securities, securities that were
worthless when it became apparent that it was impossible for the consumers to
pay them back. The money lost on the securities damaged worldwide banking
systems, forced governments to invest heavily in supporting them and ultimately
caused the global recession due to low market confidence and a lack of liquidity in
the finance markets (Nayyar 2011).
The effects on the public included widespread unemployment, pay freezes, low
interest and high inflation; all of which contributed to dramatically less disposable
income (Nayyar 2011). The immediate reaction of consumers was to attempt to
save money in any way possible causing a large proportion of the general
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population to become increasingly price sensitive in a relatively small time period
(Valls et al 2011). This affects retailers in the UK grocery market because grocery
shopping has been highlighted in studies such as Valls et al (2011) and Kumcu
and Kaufman (2011) as being the main area in which consumers try to save
money. This happens as consumers focus on value shopping and avoid buying
value added, luxury or branded goods. The overall effect on supermarkets is lower
profits. This is due to the margins being higher on luxury or branded goods than
the cheaper alternatives; in order to maintain profits, higher volumes of sales must
be achieved (Thanassoulis 2009). This leads to the next section that will look at
the response of the grocery retailing industry, from 2008 until present.
1.3 Initial Response by Supermarkets
When the effects of the economic downturn became more apparent and began to
negatively affect consumer spending habits, the three supermarkets each reacted
in their own way. The main threat to all of the supermarkets was from consumers
trading down to one of the discounter supermarkets i.e. Aldi and Lidl (Finch 2009).
This section briefly examines the strategies employed before the PMG tactic was
introduced.
The response of Asda to the higher price sensitivity of consumers and the rise of
discounter supermarkets was to continue the policy of EDLP (Just Food 2008). At
the same time they created a new category of „round pound‟ deals to directly
target the discounters without comprising and offering promotions like Tesco and
Sainsbury's (Finch 2009).
The focus of Sainsbury‟s post-crisis offers was on expanding its range of „basic‟
lines, of which the majority cost less than one pound. This was to react to the mix
of products customers were purchasing while at the same time not sacrificing the
quality associated with the Sainsbury‟s brand (Wilson 2009).
In order to combat the rise of the discount supermarket, Tesco launched an
ambitious campaign to become „Britain‟s largest discounter‟ through the
introduction of „Discount Brands‟ (Whitehead 2008). This involved creating a whole
new line of discount products that mimicked the discount own brand product lines
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used by Aldi and Lidl, these lines were priced above the „Value‟ range but below
the „Tesco brand‟ range (Just Food 2009).
1.4 Introduction of Price Match Guarantees
Asda was the first of the supermarkets to introduce the price match promise.
Originally launched in late 2010, it was revamped into to its current state at the
start of 2011 and offers to beat its competitors‟ prices by 10% or a refund will be
given (Smithers 2011a). To calculate the price differences, Asda used
independent price checking website mysupermarket, this initially drew criticism
from Morrisions as their prices do not appear on the site (Owen 2011a). This was
fixed by carrying out physical checks of Morrisons‟ prices twice weekly. The
introduction of Asda‟s PMG was widely regarded by the industry as the start of a
new supermarket price war (Chapman 2011; Smithers 2011b; Wood 2011; Owen
2011b).
In February 2011, Tesco responded to the offer Asda had made by introducing
their own PMG. However, they had an immediate problem with their
implementation of the offer. Initially the PMG stated if a competitor was cheaper
than them they would give a refund that was double the difference. This had to be
revoked when it was abused by consumers (Owen 2011c). In September 2011,
Tesco launched a £500 million price drop to support the PMG; this move also
placed their overall pricing strategy more in line with Asda‟s EDLP (Chapman
2011).
The last of the supermarkets to offer a PMG was Sainsbury‟s who introduced
Brand Match in October 2011. Brand Match differs from the offerings of Asda and
Tesco as it only applies to branded products and the refund was given at the point
of purchase; there are no extra steps to get the refund (Smithers 2011b). This
means that there is less work for the consumer in order to claim the refund.
Table 1.1 shows the various ways in which the PMG offerings of Asda,
Sainsbury‟s and Tesco differ. There is a large difference in the offerings available
depending on the focus each supermarket has. For example, Asda‟s offering
focuses on standing out as the cheapest by promising to match the competitors by
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at least 10%. Its offer also has the largest scope of the three, again highlighting its
clear intention to be viewed as the cheapest supermarket.
Table 1.1 – Comparison of the PMG offerings of ASDA, Sainsbury's and Tesco
Element of PMG offering
RefundType
Min.Purchase
Max.Refund
(onetransaction)
Max.Refund
(per calendar month)
ClaimingCompetitors
includedScope
CheckingSystem
AsdaMatch+10%
8 items n/a £100Nextday
Morrisons,Sainsbury‟s,Tesco andWaitrose
15000products
Mysuper-market
Sainsbury’s Match £20 £10 n/a At
payment Asda and
Tesco
12000BrandedProducts
Brand-view
Tesco Match 1 item £20 £100Nextday
Asda
BrandedProducts
andOwn
labels
Tescopricecheck
Source: Data compiled from Asda (2012), Chapman (2011), Sainsbury’s (2012), Smithers (2011a)
and Tesco (2012).
Even though the claims outlined in the table all differ on various semantics, the
result is the same; the three largest supermarkets in the UK all claim to be able to
be the cheapest in one way or another. An academic understanding of this
process will allow for the effects of PMGs to be explored in relation to a large
market in which no similar research has yet been conducted. The informationgenerated by the research will also be able to be examined alongside the current
academic understanding of PMGs that has originated from a mainly US
perspective.
1.5 Defining Research Scope
As an exploratory study of a new phenomenon, there is the potential for a
research project with a large scope (figure 1.1). However, the research project
must be both realistic in its objectives and fit within certain time/budgetary
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constraints (Saunders et al 2009). As such, it is necessary to reduce the scope
when exploring consumer perceptions by focusing on a particular group of
consumers. In doing so, the research project will be more achievable. In addition,
future research would be able to follow the process set out in this project to focus
on a different group of consumers.
Figure 1.1 – Diagram displaying potential research focus areas
The consumers that will be focused on in this research project will be
undergraduate students. The reasoning behind this is that the majority of students
will be becoming independent for the first time and needing to budget and shop on
their own. In general, students will have limited funds and therefore may be one of
the most price conscious consumer groups to explore (Valls et al 2011). This
group is also an accessible consumer group for the research project to study and
gain an insight into. Based on this discussion of research scope, the aims and
objectives outlined in the following sections were set.
Explorationof effects
on...
AdvertisingStrategy
Market Prices
InflationStore
Patronage
ConsumerPerceptions
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1.6 Research Aim
To explore the use of price match guarantees in UK supermarkets from a
consumer perspective with a focus on undergraduate students.
1.7 Objectives
1. To understand the current literature relating to the subject of price match
guarantees in the context of UK supermarket shopping.
2. To investigate how price match guarantees affect the price search
behaviour of undergraduate students in terms of purchase intention.
3. To explore the extent to which price match guarantees can influence
consumer supermarket choice.
The following section will contain a review of the literature related to PMGs.
Understanding the current work will be the first step to creating a methodology that
can effectively contribute new knowledge to this area.
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Section 2.0
Literature Review
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This section contains a literature review that looks at various areas related to the
use of price match guarantees (PMGs) as a pricing tactic. This literature will be
used to inform the methodology as well as highlight the areas in which this
research project will enhance the academic understanding of PMGs through the
filling of knowledge gaps.
As an issue of clarity, price match guarantees can also be known as low price
guarantees and price beating guarantees (Moorthy and Zhang 2006). For clarity
the author will be using the term price match guarantee or (PMG).
2.1 Overview
The area of price match guarantees (PMGs) is one that has been researched
extensively in academia (Kukar-Kinney et al 2007a) however; most of the studies
are not specifically focused on grocery retailing. Instead they tend to focus on
other retail operations where the customer is purchasing a single, durable product
as opposed to groceries which are classed as non-durable (Kujala and Johnson
1993). Those studies that have been carried out into retail grocery businesses
have mainly been situated in America such as Hess and Gerstner (1991), Kukar-
Kinney (2005), Biwas et al (2006) and Arbatskaya (2005). Some of the older key
studies that are referred to and built upon by the majority of recent published
literature include work by Stigler (1961) and Kujala and Johnson (1993). The
literature reviewed will not be explicit to the retail grocery market, all literature on
PMGs will be considered, as what happens in other markets is very much
pertinent to understanding the concept as a whole.
The areas explored within the literature include; the effect of PMGs on consumer
price search (Arbatskaya 2005; Kujala and Johnson 1993; Lindsey-Mullikin and
Petty 2009), the effect of PMGs on competition and pricing (Hess and Gerstner
1991; Arbatskaya et al 2004; Lindsey-Mullikin and Petty 2009; Eldin 1997), the
timing of the implementation of the PMG (Kukar-Kinney 2005) and the extent to
which PMGs are effective (Kukar-Kinney and Walters 2003; Hess and Gerstner
1991; Arbatskaya et al 2004).
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The table (2.1) below shows an overview of the literature and highlights some of
the themes within this academic area.
Table 2.1 – Overview of literature reviewed
Literature Area
P
r i c e M a t c h G u a r a n t e e s
P
r i c e S e a r c h
C
o s t o f P r i c e S e a r c h
P
r i c e K n o w l e d g e
P
r i c e P e r c e p t i o n
A
n t i - C o m p e t i t i v e n e s s
S
t o r e C h o i c e
C
l a i m i n g P M G
R
e f u n d D e p t h
G
r o c e r y R e t a i l S p e c i f i c
C
o n s u m e r P e r s p e c t i v e
U
K M a r k e t
Hess and Gerstner (1991) x x x x x x
Kujala and Johnson (1993) x x x x x
Eldin (1997) x x
Jain and Srivastava (2000) x x x x x x
Degeratu et al (2001) x x x
Srivastava and Lurie (2001) x x x x x x x
Biswas et al (2002) x x x x
Kukar-Kinney and Walters (2003) x x x x x x x
Arbatskaya et al (2004) x x x x
Srivastava and Lurie (2004) x x x x x
Arbatskaya (2005) x x x x x x x
Dutta and Biswas (2005) x x x x
Kukar-Kinney (2005) x x x x x
Biswas et al (2006) x x x x x x
Kukar-Kinney (2006) x x x x x x
Kukar-Kinney and Grewal (2006) x x x
Kukar-Kinney et al (2007a) x x x x x
Kukar-Kinney et al (2007b) x x x x x x x
Lindsey-Mullikin and Petty (2009) x x x x x
Jansen and Parakhonyak (2011) x x x
An analysis of the table shows that there are only a small number of authors who
have studied the issues of PMGs and the timeframe in which the majority of
research was conducted is limited to the years 2000-2009. The inclusion of the
earlier works by Hess and Gerstner (1991), Kujala and Johnson (1993) is because
they are relied upon by the majority of the more recent literature and are specific to
the area of grocery retailing.
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2.2 Price Search
Within the PMG literature there is a key area looking at consumer behaviour,
focusing more specifically on how the offer (and its implementation) affects the
consumers pre and post purchase price search. The pre purchase price search
process is where a consumer looks for information relating to prices until they feel
they have enough information to make an informed decision (Kujala and Johnson
1993; Lindsey-Mullikin and Petty 2009). The post purchase price search is a
continuation of this process where the consumer continues to search for cheaper
prices after the purchase is made (Arbatskaya 2005; Lindsey-Mullikin and Petty
2009).
2.2.1 Price Search Background
The work by Kujala and Johnson (1993) combines two important disciplines
needed to understand the consumer‟s actions during the price search; economics
and consumer behaviour. Their paper combines these areas and looks at both the
motivating and limiting factors that dictate how the price search happens. The
reason presented in the literature for why the price search takes places is so that
the consumer has a certain level of knowledge on prices before selecting where to
shop. This is built on the work of economist Stigler (1961) who was the first to
relax the assumption of perfect price knowledge, i.e. the consumer does not
simply know what prices are fair and they must search to become informed (Kujala
and Johnson 1993). This view has been challenged by Punj and Staelin (1983)
and Urbany (1986) however; it has been on the basis of durable or higher
involvement purchases, of which groceries are not considered to be a part (Kujala
and Johnson 1993). The papers main findings are that although price search
stems from a consumer wanting to gain knowledge of fair pricing, it is not always
actively used by consumers for habitual purchases. This is because the search
does not need to take place before each shop, instead consumers rely on intuition
and external factors (e.g. news on grain prices or inflation) for when they expect
prices may have changed, a view reinforced by (Srivastava and Lurie 2001).
The limiting factor for discontinuing the price search is when the consumer
reaches a point where the benefit of gaining knowledge exceeds the potential cost
savings produced from conducting it (Kujala and Johnson 1993; Hess and
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Gerstner 1991; Srivastava and Lurie 2001; Lindsey-Mullikin and Petty 2009).
There is little debate over this fact in the literature; the main debate is over the
effects PMGs have on the ability for the consumer to continue the price search
(Arbatskaya 2005; Srivastava and Lurie 2001) which is looked at in the following
two sections.
2.2.2 Pre-Purchase Price Search
The work by Lindsey-Mullikin and Petty (2009) focuses on the role of price
deception in bargain assurances (BA‟s) in discouraging price search. BA‟s are a
group of marketing tactics that signal a low price of which PMGs are a part of.
They ultimately conclude that BA‟s do discourage both pre and post purchase
price search by indicating that the price advertised is the best possible bargain. An
issue with the study is that it does not conclude on each of the BA types
separately (Lindsey-Mullikin and Petty 2009). Instead, they conclude on the role
that BA‟s in general have on discouraging price search; the extent to which the
PMG is responsible is not specifically discussed in their findings.
However, the findings are consistent with the earlier works of Kujala and Johnson
(1993), Jain and Srivastava (2000) and Arbatskaya (2005). The general
consensus in these three pieces of literature is that the offering of a PMG does
cause the consumer to cut short the pre-purchase price search. Jain and
Srivastava (2000) offer the explanation that this happens due to consumers being
confident at finding generally lower prices at a store with a PMG therefore; the
price search is shortened even when actual prices are not known. This area will be
explored more in the price perception section (2.2.4).
2.2.3 Post-Purchase Price Search
In terms of post purchase price search, Arbatskaya (2005) leads the argument that
the implementation of PMGs is not to shorten the pre-price search but to allow the
consumer to delay the price search until after the purchase. The author presents
the view of “Buy now, search later” (Arbatskaya 2005:28), which is to buy the
product immediately on the promise that it is the lowest price, not from the
consumers own knowledge; this must be gained after the fact.
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Meanwhile, Jain and Srivastava (2000) describe the post purchase price search as
being one that only exists if the search costs are low. This is because the products
cost and therefore, potential savings are not likely to be high from having the
refund if the PMG offer is taken up. If the search costs are high, the low value
perception from the store offering the PMG is enough to accept the products at the
price that they cost (Srivastava and Lurie 2004; Jain and Srivastava 2000).
A more in depth study by Kukar-Kinney et al (2007b) enhances the knowledge in
this area by further defining the use of post purchase search. Their findings into
the role of price consciousness in PMGs indicated that those consumers who are
more price conscious are likely to continue the search after the purchase (Kukar-
Kinney et al 2007b:219). How the level of price consciousness was measured is
not specifically mentioned in the study. A comparable study by Dutta and Biswas
(2005) which has similar findings to Kukar-Kinney et al (2007b) also fails to show
calculations. However, the methodology for both studies was based on the earlier
work by Lichtenstein et al (1988) which states that the level of a consumers price
recall is directly linked to the price consciousness of that consumer. Therefore, a
consumer who can recall the price of a purchased item successfully would be
classed as a highly price conscious individual. In the future, studies could be
aimed at this area with the focus of discovering general levels of price
consciousness across a population in order to inform other studies.
Overall, the literature generally agrees that PMGs have the effect of cutting down
the time a consumer spends on price search (Kujala and Johnson 1993;
Srivastava and Lurie 2004; Jain and Srivastava 2000) while at the same time
allowing for a reason to continue or defer post-price search (Arbatskaya 2005; Jain
and Srivastava 2000). This impacts retailers as it allows for sales to be made on
the promise of the lower price, even if this price is not the best in the market. It
transfers responsibility for getting the best price to the consumer; those who do not
engage in the post purchase price search benefit the retailer. These issues are
looked in more detail in section 2.3.
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2.2.4 Price Perception
An important area that links with price search behaviour and store choice is the
differences in price perception that consumers have.
The issue within the literature here is the extent to which PMGs affect the
consumer‟s price perception of store prices. Most authors agree that the existence
of a PMG is enough to convince the consumer that the store is low in price
(Biswas et al 2006; Srivastava and Lurie 2004; Kukar-Kinney and Walters 2003).
However, the situations and conditions that allow this process to work are debated
(Srivastava and Lurie 2004). For instance, Biswas et al (2002) found that the use
of the PMG indicated to the customer that the price was low regardless of other
cues that generally signal higher prices. This means that a store may have all the
indicators of a high price (i.e. location, brand, previous advertising) however, if
they offer a PMG then the consumer will perceive the store to be low in price.
Figure 2.1 – Model of PMG Effectiveness in lowering perception of store price
Adapted from Srivastava and Lurie (2004)
The model above (figure 2.1) challenges the view of Biswas et al (2002) on the
basis of market discipline levels. The study is theoretical in nature and looks at the
effects of consumers perceptions towards other consumer‟s reactions. Simply, if a
consumer believes that many other consumers will take advantage of the PMG,
then there is more chance of the PMG being genuine. This is what creates high
market discipline; the process of multiple consumers claiming a PMG in the
market. Without this, the consumer will not perceive the store price to be low as
they do not believe the PMG on offer to be genuine.
The latest research on this subject is by Biswas et al (2006) who hit back at the
findings of Srivastava and Lurie (2004) on the basis that the work is only a
Uncertain
marketprices
High
marketdiscipline
No internal
priceindication
Effective
PMG
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theoretical expectation; not as the result of empirical research and disproved it in
their findings. Further empirical research would be needed in this area in order to
verify the findings however, it can still be concluded that PMGs create low price
perception in some cases.
2.2.5 Cost of Price Search
So far, the literature has indicated that the effect that PMGs have on price search
and price perception have a key variable which dictates the extent to which the
PMG tactic will be successful i.e. the cost of the price search (Kukar-Kinney et al
2007a). It is therefore important to understand what factors constitute the cost of
the price search. Search costs are described by Arbatskaya (2005:7):
“Search cost includes the cost of getting informed about actual prices inthe market, the cost of making sure that all restrictions on the product,competitors, and timing of price offers are satisfied, as well as the costof returning to the store and obtaining the refund.”
Kukar-Kinney and Grewal (2006) expand on this definition by stating there are
significant differences between bricks and mortar stores and internet retailers due
to the online environment being perceived to be less reliable.
An example of a variable that has been investigated in detail by Srivastava and
Lurie (2004) is the location of stores in relation to one another. The results show
that where competing stores are located in close proximity then the search costs
are perceived by the customer to be lower; they do not need to travel far in order
to carry out the price search (Srivastava and Lurie 2004:122).
A study by Jansen and Parakhonyak (2011) criticises current consumer search
models on the basis that they assume there is no cost to the price search of
revisiting a store they have already been too. Therefore; after a prolonged price
search, the cost of going back to any store identified as the cheapest will incur
additional search costs. An issue with this study is that its methodology states that
they assume all consumers know market prices, something previously contested
by Stigler (1961) and again by Kujala and Johnson (1993).
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What these studies do not consider is the use of the internet to compare prices of
retail stores; this massively reduces search costs (Arbatskaya 2005; Degeratu et
al 2001). When considering the popularity of price comparison websites in the UK
(Chakraborty et al 2011; Alexa 2012) and the accessibility of the internet, the
actual cost of price search in the UK may be small. Furthermore, as discussed in
the background section, the types of PMG offers of the UK supermarkets are
implemented in such a way that the hassle costs are very low.
Therefore, the cost of price search is not a major factor; for example, Sainsbury‟s
PMG refund happens at the point of sale which means that the customer does not
need to return to the store. With ASDA and Tesco, even though the customer must
return to the store to claim the price match guarantee they are likely to do so
anyway as part of the weekly shop.
2.3 Claiming the Price Match Guarantee
A separate area of study within the PMG literature looks at the processes and
effects that occur when the consumer actually makes the decision to act upon a
PMG and claim the refund. There is only a small amount of research in the area,
focusing on the effects of refund depth (i.e. amount refunded), the time the PMG is
claimed, its effect on loyalty and willingness to claim.
Figure 2.2 – Factors related to claiming the PMG
Source: Kukar-Kinney and Grewal (2006:12)
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The study by Kukar-Kinney and Grewal (2006) looks at all the factors involved in
the willingness for consumers to claim the PMG. The model above (figure 2.2)
maps these factors in the theoretical framework that was tested in their research.
The findings in terms of retail environment were that a PMG claimed through the
internet was viewed as less reliable and therefore, more difficult to claim than in a
bricks and mortar store. An issue with the finding is that the study does not take
into consideration the way in which UK shoppers use internet channels, also the
use of internet has grown considerably since the study was conducted
(Chakraborty et al 2011).
The implications for the UK market are that both ASDA and Tesco use the internet
as the primary means for the initial price comparison that then gives the consumer
the voucher for the refund. Sainsbury‟s therefore may have an advantage by
offering the PMG refund in store, if the study was found to be consistent with a UK
perspective. This is therefore an area that must be explored in the different context
in order to create a fuller understanding.
Figure 2.3 – Effects of reputation and retail environment on perceived service quality
Source: Kukar-Kinney and Grewal (2006:16)
The study also showed that internet stores with the highest reputation were slightly
higher than a retail store with the lowest reputation in terms service quality, as
shown is figure 2.3. This has an effect on the perceived likelihood of receiving the
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refund as shown in figure 2.2 therefore; the effects of the type of channel may not
be high as suggested by the results of difficulty to claim alone.
2.3.1 Refund Depth
An important area relating to the claiming of a PMG offer is the extent or size of
refund that is available; this is referred to as refund depth (Kukar-Kinney and
Walters 2003). This is an important area of the literature to understand as the UK
supermarkets differ in depth, based on both amount refunded and items compared
i.e. ASDA offers 10% price beating offer and Sainsbury‟s restrict the PMG by how
much is spent (only active above £20).
The research by Kukar-Kinney and Walters (2003) is one of the first to explore this
area and does so from a consumer perspective; they criticise the lack of research
into PMGs from the consumer perspective as one reason for the research. The
research has three main findings; a modest refund increases believability of the
PMG offer, an aggressive refund is viewed sceptically and deep refunds raise
perceptions of PMG value. It concludes by stating that the refund depth takes the
strongest role in amongst PMG characteristics when influencing the initial
purchasing decision. The findings however, are contradicted by a later study by
Kukar-Kinney (2006) which suggests that refund depth is not the primary
characteristic, instead scope (i.e. number of items, length and range of the PMG)
was the main variable that influenced initial store choice. If this was to apply to UK
market it would suggest that Tesco and ASDA would be favoured by consumers
therefore, this will be an important area to explore in the research.
The study by Kukar-Kinney (2006) also finds that refund depth has no effect
repeat store purchase behaviour whereas the scope of the offer does. This
suggests that consumer prefer more items, over a longer time period to be
considered as part of the PMG tactic. It also shows a link between scope and
loyalty, suggesting that if used in a certain way PMGs can both attract and keep
consumers. The extent to which this applies in the grocery retail sector now needs
to be discovered in greater depth through exploratory research.
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2.3.2 Timing
A qualitative consumer focused research study by Kukar-Kinney (2005)
investigated the effects of the timing of refunds; either at the time of purchase or
returning to the store at a later time. The research found that consumers are more
likely to seek the refund at the time of purchase (having already found a cheaper
price). This finding would seem to benefit the model of refund that Sainsbury‟s
offer; the point of sale system compares prices and refunds differences on the
receipt. The issue with the findings is that there are no follow up studies to reaffirm
or challenge the results, this therefore presents another area in which further
exploration through the UK market would benefit the academic understanding of
PMGs.
2.4 Price Match Guarantees as Anti-Competitive
A large area of the existing literature centres on whether the PMG tool promotes
competition or is conducive to price collusion. This area is not directly related to
the objectives and would therefore be a potential area of future research. The
literature review of this area can be found in Appendix 8.1
2.5 Analysis of Literature in the context of the UK market
The ways in which PMGs affect the price search behaviour of the customer are
generally agreed upon by academics. PMGs reduce the time of the price search
because the customer‟s perception is that PMGs are indicators of low store price.
Post-purchase price search is encouraged by the PMG offer, they allow the
consumer to buy with the knowledge that if it is cheaper somewhere else they will
not lose out. The cost of price search affects how long the consumer will search
for the best price; the cost is measured in time, effort and hassle. If the price
search cost is low, consumers will continue to look for the best price for longer
than if it is high. The problem with these conclusions is that they do not take into
account the nature of the UK market; the cost of price search is low in terms of
cost, hassle and time. However, this may be explained by habitual shopping being
less about price search and more about intuition due to the low involvement nature
of the products.
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When claiming a PMG, there are differences based upon reputation, difficulty and
store quality on the consumer willingness; the channel (internet or retail) has an
effect favouring retail stores. The timing of the refund claim is more often at
purchase and store loyalty is increased by a PMG offer that has a large scope.
None of the literature reviewed looks at the UK retail grocery market; in total only
fiveof the studies look at the grocery market regardless of country. This lack of
specific focus in this area does not mean that the literature is not pertinent. The
main difference between grocery and non-grocery has been examined in the
review on the basis of durable/non-durable goods. The literature examined here
will be used in the next section to inform the methodology and knowledge gaps
outlined in section 1.7.
Figure 2.4 - Model of PMG effects on consumers
Drawn from literature review
The model (figure 2.4) synthesises the effects of PMG on the various elements of
consumer behaviours.
PMG
ShortensPrice Search
IncreasesWillingness
to claimrefund
Lowers PricePreception
IncreasesLoyalty
EncouragesPost
PurchasePrice Search
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Figure 2.5 - Model of characteristics needed for an effective PMG offering
Drawn from literature review
The model above (figure 2.5) summarises the themes in the literature which
identify the various offerings a PMG must have in order to exert the influence
modelled in figure 2.5.
2.6 Knowledge Gaps
From the literature reviewed it is clear there are many unexplored areas in the use
of price match guarantees. The majority of the research is based on the effectsthat PMG has on the fairness of competition, the effects on price perception, the
type of price search and how PMGs are implemented. Effectively, the majority of
the research is from an industry point of view. There is little empirical research on
the perceptions of consumers towards PMG, just the theoretical implications that
are predicted to happen. Therefore, it is now important to explore the speculative
understandings of PMG by applying them to the UK market and looking at a
consumer perspective.
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The current literature is also heavily orientated to non-grocery retail markets,
grocery retailing makes for only a small percentage of academic understanding
and there are no studies that look at the UK market. Therefore, the application of
the findings in the literature review to the UK market would constitute contributing
towards filling a knowledge gap and add a new important voice to the knowledge
of PMGs.
The next chapter will take the understanding of the current situation of PMGs and
create a research design that can be used to explore the various themes
highlighted as having insufficient research from a consumer perspective.
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Section 3.0
Methodology
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This section will deal with the processes involved in creating a research method
that will allow for the gathering of empirical data with a view to meeting the
objectives described in section 1. The aim of the research is „an exploration of
consumer perceptions regarding the use of price match guarantees in
supermarkets focusing on undergraduate students‟, the methodology therefore,
must adopt a suitable design that can achieve this aim.
3.1 Research Process
The structure for the methodology section is adopted from Saunders et al (2009),
using the figure 3.1 below which shows the „research onion‟ which describes the
research process. By using this format, the reasoning behind the research design
decisions is made clearer, the process begins with the choosing of a philosophy
which then governs the decisions made as the research design is created.
Figure 3.1 – The research process ‘onion’
Adapted from Saunders et al (2009)
Philosophy
Approach
Strategy
Choice
Time
Technique
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3.1.1 Philosophy
In order to create a research method, the philosophical perspective of the
researcher must first be declared. It is the assumptions attached to research
philosophies that underpin the design of the research and therefore impacts on the
way in which data is gathered (Saunders et al 2009).
The research philosophy adopted for the research study is phenomenology which
is part of an interpretivist or anti-positivist philosophy (Bryman and Bell 2011).
Phenomenology is the prevailing approach in qualitative research in social science
literature (Gummesson 2000) and is described by Taylor and Bogdan (1984:2) as;
“The phenomenologist is committed to understanding solitaryphenomena from the actor‟s own perspective. He or she examines howthe world is experienced. The important reality is what people perceive itto be.”
From an ontology perspective, this means that the researcher understands the
world does not have a single reality; instead this reality is socially constructed and
is subjective (Saunders et al 2009). This is important as the research is an
exploration of a phenomenon that has been observed in the US but not in the UK.
It is the potential for difference in the realities of consumers in the two markets that
will mean this report adds a new area to PMG literature.
In terms of epistemology, acceptable knowledge in the context of this research
study, is based on subjective meanings and social phenomena. The focus of
knowledge is on the details of situations and the reality that exists behind these
details. This stance is taken by those who are critical of scientific models beingapplied to the social world. Therefore, the understanding of knowledge reflects this
position, and there is a different logic and method applied to gathering it (Bryman
and Bell 2011).
3.1.2 Approach
The choice of research approach is important as it creates a more thorough
research design that matches the nature of the research problem and allows for a
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more informed decision to be made regarding the choices within research design
(Easterby-Smith et al 2008).
There are two principle research approaches; inductive and deductive. The latter
focuses on testing existing theory while the former generates new theory
(Saunders et al 2009). Gummesson (2000) argues that after the initial choice
between inductive and deductive all research become abductive; a combination of
approaches although it is necessary, at first, to choose between the two.
The choice made for the research design is inductive; the primary reasoning
behind this decision is that inductive approaches are more suited to gaining an
understanding of the meanings humans‟ attach to events (Saunders et al 2009).
This is more in line with the choice of research philosophy than the rigid scientific
structure of the deductive approach (Bryman and Bell 2011). As this study is an
exploration of consumer perceptions to a particular phenomenon, the inductive
approach is far more appropriate in allowing the research generated to have
meaning.
3.1.3 Strategy
The research strategy is the way in which the research problem is tackled and
although there is no one „correct‟ strategy, the choice is affected by the inductive
approach taken (Saunders 2009).
In order to most effectively research the aims of the project the chosen strategy
was the in depth method (McCracken 1990). This strategy is a common way to
conduct exploratory research and is a principle tool of qualitative researchers
(Gummesson 2000; Bryman and Bell 2011).
3.1.4 Choice
The choice of research method chosen for the subject is a mono method. This
involves using one method for data collection and a corresponding data analysis
procedure (Bryman and Bell 2011; Saunders et al 2009). A problem with using a
mono-method study is that triangulation cannot be employed. The process of
triangulation is using multiple sources of data in order to reduce bias and increase
the validity of the research results (Saunders et al 2009).
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However, data triangulation has been criticised as a mainly realist approach; it
indicates that there is one world view and multiple methods looking at that view will
increase research validity (Bryman and Bell 2011). This does not fit with the
phenomenological philosophy and as such, multiple methods would only serve to
confuse the research from its objectives. For example, using a focus group and an
interview would present a social and private reality, this would not triangulate into
increasing the validity of the study‟s results because realities do not mix in that
way.
3.1.5 Time
The time horizon represents the time scale at which the research will look. It is
common for case study strategies to employ a cross sectional time scale as the
interviews are conducted over a short space of time (Saunders et al 2009). The
cross sectional study is also in keeping with the phenomenology philosophy, the
reality of the subjects‟ changes over time therefore in order to understand the
issue as it is now; a narrow timeframe must be used in collecting the data.
3.1.6 Technique
The research technique that is employed by the study is the qualitative approach;
this is chosen because of the exploratory nature which demands insight into “how
people understand the issue or situation” (Jankowicz 1995:173).
The use of qualitative research is also the primary way in which to research from a
phenomenological stance; the „feelings‟ of respondents are what must be
discovered which requires the researcher to directly interact with them
(Gummesson 2000).
3.2 Research Design
This section will take the factors outlined in the research process and describe the
impact on the selection of sampling technique, research method and the way in
which the data is to be analysed.
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3.2.1 Method
As part of an exploratory in depth approach to the research strategy that focused
on the collection of qualitative research data, the primary research method chosen
for the research design was the use of interviews.
3.2.1.1 Interview Styles
There are several types of interview that can be used in order to generate
qualitative empirical or „real world‟ (Gummesson 2000) data, these include;
structured, semi structured and unstructured (Saunders et al 2009).
Table 3.1 – Comparative interview types and situations of use
Exploratory Descriptive Explanatory
Structured xx x
Semi- Structured x xx
Unstructured xx
xx = more frequent x= less frequent
Source: Saunders et al (2009:323)
As this study is exploratory, the table indicated that the most frequent type of
interview used is the unstructured interview. These interviews are described as
being most effective when the scope of the research is not fully understood; no
predetermined questions are used allowing for a long exploratory interview
(Saunders et al 2009).
However, the literature review gave the researcher a pre-understanding of the
topic; this would be part of their reality during the questioning and create particular
areas of interest that should be focused on (Gummesson 2000). An unstructured
interview would not take advantage of these areas of focus and also creates the
potential for too large a quantity of data to be generated, resulting in a “chaotic
effect” (McCracken 1990:25).
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The use of semi structured interviews would have allowed for the pre-
understanding to be taken into consideration in creating themes around which
questions would be created (Saunders et al 2009). However, this process is
restrictive and does not allow the interviewee to explore areas that the researcher
may not have considered in the questioning (Bryman and Bell 2011).
3.2.1.2 Grand Tour Themes
The need for a method of questioning that is both adaptable to the interviewee
while at the same time not likely to create large amounts of unnecessary data led
to the use of a guided interview focusing on „grand tour‟ themes (McCracken
1990). The grand tour themes, as shown in figure 3.2, allow the interview to go in
any direction with the questioning based off the interviewee‟s answers (Anderson
1954; Tiessen et al 2004). The themes set out within the interview are used as to
draw appropriate boundaries that keep the focus relevant to the research
objectives.
Figure 3.2 – Diagram of ‘grand tour’ themes used in the interview design
Drawn from literature review.
Theme
Price searchbehaviour
ClaimingPMG refund
PricePerception
Purchaseintentions
Store choice
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3.2.1.3 Pilot Interview
In order to test how useful this approach would be, a pilot interview was
conducted. The interview relied purely on the grand tour themes as a way to
generate questions; further questions were based off the interviewee‟s answers.
The main issue discovered in the pilot interview was that the pressure of creating
questions based around the grand tour themes, while at the same time remaining
as objective as possible, led to a disjointed interview with too many repeated or
similar questions.
3.2.1.4 Final Interview Design
In order to combat the issues discovered in the pilot interview, an interview road
map was created which was utilised in order to guide the final interviews. This
contained the aforementioned grand tour themes along with potential research
questions based around these core themes.
This technique is highlighted as being a key element of a good interviewing
strategy by McCracken (1990) who describes the road map as a travel itinerary;
there are lots of things to do in the interview and a flexible approach is needed to
ensure that there will be sufficient depth into the important issues. The importance
is that the interview has a direction ensuring it will go somewhere useful to
answering the research question.
As part of this method of interviewing, open questions were employed along with
follow up probing questions. The dual tactic of questioning allows for an initially
detailed response and then a follow up question based off the response that can
then explore the more specific points of interest (McCracken 1990; Saunders et al
2009).
3.2.2 Sampling
This section deals with the decisions made with regards to creating a sample for
the research project. How a sample group is created impacts on the validity and
reliability of the research therefore, justifying the use of particular techniques and
the sample size is important (Saunders et al 2009; Bryman and Bell 2011;
Jankowicz 1995).
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3.2.2.1 Sampling Technique
The choice of sampling technique has many effects on the validity, cost and extent
of generalizable representation of the sample group. Although there are many
types of sampling to consider, time and cost restraints limit the ability to choose
the more complex probability sampling techniques. These samples consist of
creating a sampling frame of the population from which a sample can then be
taken; this method is generally representative of the population characteristics
(Saunders et al 2009).
The technique that is left is non-probability sampling, although these samples tend
to be less representative, the nature of the study itself is more suited to this type of
sampling (Jankowicz 1995). The non-probability sampling technique that was used
is purposive sampling, with specific focus on typical cases sampling (Henry 1990).
This sample involves the researcher using their judgement to select cases that are
known to be useful and do not represent any extreme (Henry 1990; Saunders et al
2009).
An issue with the sampling technique is that it is unlikely to be generalizable to a
large population (Henry 1990; Saunders et al 2009) however, the generalisation of
social studies is criticised by Gummesson (2000) as being prejudicial and not
conducive to understanding. McCracken (1990) also argues that the sample is not
chosen to represent a part of the larger world; instead it is used to provide an
insight into a particular issue.
3.2.2.2 Sample Size
There has been intense academic debate regarding how large a qualitative
research sample should be (Mason 2010). The most prominent theory research
academics subscribe to is the concept of data saturation. Proposed by Glaser and
Strauss (1967), data saturation is described as “the diminishing marginal
contribution of each additional case” (Gummesson 2000:96). This means after a
certain number of interviews, the contribution of knowledge will not add any more
useful information in understanding the research problem.
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The point at which a study reaches data saturation is contested but generally
relies on factors regarding the scope of the study and how modest its aims are
(Mason 2010). For instance, Charmaz (2006) suggests that the aims of the
research study are the primary factor in determining when data saturation is
reached. A small study with modest aims is likely to reach a point of data
saturation quicker than a study that spans multiple industries or disciplines.
McCracken (1990) also adds that it is more important to work more closely with a
smaller sample group than to work in a more superficial way with a larger group.
Finally, Creswell (1998) suggests that phenomenological studies should have a
sample between 4 and 25 depending on the objectives of the research.
As the research study was an exploratory study on one market with the
phenomenon in its infancy, the sample size was 4 in depth interviews. This was
predicted to yield sufficient data without wasting time gathering more views than is
necessary in order to provide an initial understanding into the consumer‟s thoughts
on the research problem.
Table 3.2 – Break down of selected interviewees
Interviewee 1 2 3 4
Age 21 24 21 21
Sex M M M F
The interviewees (table 3.2) selected for the research project were all between 21
and 24 year old undergraduate students. They were purposively sampled on the
basis of having a fresh experience grocery shopping due to recently becoming
independent.
3.2.3 Collection and Analysis of Data
This section of the research design discusses the ways in which data was
conducted and how the data was subsequently analysed. It also presents the
ethical considerations involved in the collection of data through interviews.
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3.2.3.1 Ethics
When conducting research, there are always ethical considerations that must be
taken into consideration regarding the way in which data is collected and the
protection of subsequently collected data (Saunders et al 2009; Bryman and Bell
2011). All interviewees were made aware of the way in which their data would be
used, given notification of interviews being recorded and informed they could stop
the interview at any time. By doing this, the ethics conform to the guidelines set
out as good interview practice by Bryman and Bell (2011), McCracken (1990) and
Saunders et al (2009).
3.2.3.2 Data Recording
The interviews were conducted in a one on one environment in the interviewee‟s
home, this was for the interviewee‟s convenience and in order to make them more
relaxed. Having the interviewees relaxed meant they were likely to contribute a
useful amount of knowledge (Saunders et al 2009).
In the interviews, there was more than one source of data to be generated.
Although, the verbal responses to the questions are the most obvious source of
data, Hall (1959) posits that the nonverbal language has equal importance. This
nonverbal language is made up from behaviours and gestures and is part of a
verbal answer therefore; the mono-method study had the additional method of
observation as a secondary source of data. The use of the phenomenology
philosophy involves understanding not just what people say in the studies but also
the acknowledgment of behavioural attributes (Gummesson 2000). By comparing
the physical actions of the interviewee with the verbal data, the bias in decoding
the verbal was lowered by examining any corresponding physical reactions to the
questions i.e. pauses, puzzled face, defensive posture. This could have been
achieved by video recording the interviews however, many people are put off by
cameras and hiding them would be unethical (Bryman and Bell 2011).
To be able to analyse the verbal responses, it is a commonly recommended
research procedure to transcribe the interview into a written form (Saunders et al
2009; Bryman and Bell 2011; McCracken 1990; Jankowicz 1995). There is
however, debate over who should transcribe the data. Both Saunders et al (2009)
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and Bryman and Bell (2011) believe that the interview should be transcribed by the
researcher as this allows them to become familiar with the results and makes
subsequent analysis easier. However, McCracken (1990:42) argues that the
transcription should be carried out by a professional as the researcher would
become “frustrated” and have “a familiarity with the data that does not serve the
latter part of the analysis”. In regard to this debate, the research followed the
advice of Saunders et al (2009) and Bryman and Bell (2011) due to the prohibitive
cost of professional transcription services.
3.2.3.3 Data Analysis
The analysis of qualitative data is said to be one of the most demanding aspect of
the research process (Miles 1979:595; Piore 1979). The methods regarding the
analysis of data generated by qualitative research are also far less developed in
academia than the research methods themselves (Boyatzis 1998).
Although there are written methods for the analysis of qualitative data, McCracken
(1990:41) argues that “different problems will require different strategies” which
suggests there is no all-encompassing process. Furthermore, Miles (1979:593)
states that the “analysis of qualitative data is a mysterious, half-formulated art”.
A study by (Sieber 1976) conducted a review of seven respected texts on
qualitative methods finding that none had more than 10% of their pages devoted to
analysis methods. The study also found that there was almost no specific analysis
advice for different types of research methods, i.e. exploratory, explanatory. The
study did find some elements that authors typically agreed on such as the need for
identifying themes and formulating classes of phenomena.
The analysis tool that this research project used is best described as a form of
thematic analysis, derived from methods discussed by Miles (1979) and more
modern texts such as McCracken (1990), Saunders et al (2009) and Bryman and
Bell (2011). This analysis tool is the most commonly used and is also highly
adaptable to specific studies furthermore; it follows the key elements identified by
Sieber (1976) i.e. creation of themes and discovery of phenomena. The specific
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process that the research study followed is outlined in the diagram (figure 3.3)
below.
Figure 3.3 – Processes involved in the thematic analysis of data
Adapted from McCracken (1990), Miles (1979) and Saunders et al (2009)
The first process in the analysis is to condense the amount of data; transcripts
contain large amounts of information not all of which has a relevance to the
research study (Miles 1979). Furthermore, Gummesson (2000) suggests that it is
a key part of the r esearcher‟s job to be able to compress the data. The process of
condensing data involved reading through the transcript of each interview and
making observations on the content. When a sentence with information that was
relevant to the research project presented itself, a notation was made. By making
these observations, it was also possible to find preliminary associations between
the data (McCracken 1990).
Following on from the first process, the second process involved a coding of the
initial observations into groups based on similar meanings (Saunders et al 2009,
McCracken 1990). This coded data (table 3.3) was then extracted from the original
transcripts in order to display all text that is associated with a particular code i.e.
sentences with expensive, close by.
Table 3.3 – Example of a coded observation
Statement Observed Codes
Cos I'm running quite low on money so I'm
just kind of going for the cheapest option. I
know that there are stores close by butthey‟re too expensive, you know like Spar.
Low - money, cheapest, option, stores -
close by, expensive
Observation Data CodingCreation of
ThemesModeling
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The third process took the coded data and created a hierarchy of themes in order
to categorize the research (Sieber 1976; Saunders et al 2009; Miles 1979). These
themes made it possible to model what interviewees thought about specific
aspects of the phenomenon (Saunders et al 2009) and also combined all of the
research studies to show agreeing/ disagreeing thoughts (McCracken 1990).
The final step involved modelling the themes that were identified in order to display
what the interviews said about a specific aspect of the research project. This was
then compared to the themes that were identified in the literature review
(McCracken 1990; Saunders et al 2009; Miles 1979). By doing this, the data from
the research could be compared against the current understanding of the
phenomenon (McCracken 1990; Sieber 1976). This allowed for an analysis of the
similarities, differences and new data provided by the research project (Saunders
et al 2009; Bryman and Bell 2011). The following section will present the results
along with a discussion of their impact on the research objectives.
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Section 4.0
Findings and Discussion
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This section presents the findings of the in depth interviews that were described in
the previous section. The discussion of the findings will take place simultaneously
in order to best present the ways in which the new empirical data fits in with the
current view of the academic literature on PMGs.
4.1 Price search behaviour
The first primary research objective was to investigate how price match
guarantees affect the price search behaviour of undergraduate students in terms
of purchase intention. This involved looking at the way in which the offer of a PMG
could be said to change the way in which the process of buying a product. The
current literature indicates that price search is shortened by the offer of a PMG
which increases the likeliness of a purchase being made (Arbatskaya 2005;
Srivastava and Lurie 2001).
The analysis of the research discovered several themes that fall under the larger
theme of price search. These themes were created from the analysis and grouping
of codes discovered in the interview transcripts. The diagram below (figure 4.1)
shows the themes that construct the higher „grand tour‟ theme identified from the
literature. Themes that are circled were not discussed in the literature.
Figure 4.1 – Themes involved in price search behaviour
Identified from thematic analysis of interview transcripts
Price Search
PriceKnowledge
Cost of pricesearch
PriceKnowledge
RepeatedPatronage
LearnedBehaviour
Intutition
Cost of PriceSearch
Access toStores
Saving Amount
Value of Time
Post PurcahsePrice Search
Liklihood of Refund
In builtsaving
method
Effective PMG
RefundAmount
Refund
Scope
Claiming
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The main themes that fall under price search are price knowledge and the cost of
price search, each of these then have several identified themes within. Finally, the
understanding of what makes a PMG effective relates back to the ability for it to
influence the price search behaviour.
4.1.1 Price knowledge
The research discovered that the way in which the interviewees constructed price
knowledge was heavily influenced by the experience of shopping rather than using
any formal means of price searching such as using price comparison sites. All of
the interviewees discussed price knowledge in the sense that prices were learned
through shopping trips rather than by purposely setting out to learn market prices.
The table below shows the responses of interviewees regarding knowing the cost
of products.
Table 4.1 – Quotes describing construction of price knowledge
“You tend to get a feel for the costs of products, you get a basic average of
like how much milk should cost, cheese and stuff… based off experience
really”
“I like, usually buy similar meals each week, after a while you just get an
understanding of how much things cost”
“I don‟t really know. I can only sort of compare against similar products sold in
the same shop. I just go from experience”
“After shopping for a while, you just know the prices of things that you buy, I
don‟t properly look to see if they are good prices but it‟s what I think‟s fair.”
This highlights that the process is more informal and learned over time, using
words such as „feel‟ is very subjective and therefore personal to an individual
reality; this suggests that price knowledge is not a strict concept. This is similar to
the discoveries of Kujala and Johnson (1993) and Srivastava and Lurie (2001) in
that a formal method of price search does not need to take place before each shop
as customers use intuition when purchases are low involvement.
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The findings also indicated that it was the repeated patronage of a store that
allowed for an understanding of its prices to be gained over time. By visiting the
same store and buying the same or similar products regularly, the consumer is
able to learn the expected cost of the shop over time. The current literature does
not offer this as a way in which price knowledge is gained, instead it looks towards
comparisons of prices between multiple stores as a way of assessing price.
However, an explanation for why the interviewees do not feel the need to compare
between stores is offered in the research.
Table 4.2 – Quotes describing price perception of UK supermarkets
“In general I think supermarkets are very competitive, I think that‟s a major
advantage of being a customer. They are all competing with each other and
you are going to get lower and lower prices at different places.”
In terms of price I think they offer a variety of items to suit every type of
shopper, I suppose in that sense they are can be all similar in price
depending what you buy.
The above quotes indicate that there is a belief that prices in UK supermarket arevery similar even though the interviewees had never actually checked the prices of
them. This explains how they can construct knowledge of product prices without
visiting other stores.
4.1.2 Cost of Price Search
The research showed that price search was not only inhibited by the intuitive price
knowledge process but also because of a perceived high cost of searching. For
example, when asked why they did not search for prices before shopping one
interviewee stated;
“The time it would take to find out information is too much comparedwith the potential few pence of savings”
This is in line with the current academic understanding of price search behaviour
in that high costs deter price searching (Kukar-Kinney et al 2007a; Srivastava and
Lurie 2004). However, the reasons for the perception of a high cost differed with
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multiple themes identified as being interrelated to the cost of price search; these
are shown in the diagram below.
Figure 4.2 – Factors identified from research as causing high search costs
Identified from thematic analysis of interview transcripts
The limited access to others stores was a reason for a high cost of price search by
half of the interviewees, they only shopped at one local store so perceived a cost
in going to look for prices at other stores that were further away. This finding
supports the literature, particularly Srivastava and Lurie (2004) who discuss store
distance and location as a primary reason for the high cost of price searching. The
size of savings that compared to the cost of searching was another discovery that
has also been identified in literature by multiple authors (Kujala and Johnson 1993;
Hess and Gerstner 1991; Lindsey-Mullikin and Petty 2009).
A factor that the research found to be a construct of high search costs but was not
shown in previous literature is the value of the time that would be spent searching.
The interviewees discussed that searching for prices was simply not worth it
because they placed a high value of their time over money; one interviewee stated
“I value my time more than wasting it trying to recoup a few quid.”
This discovery is important in being able to fully understand how offers like PMGs
are viewed by the consumer. However good an offer may be, the way in which the
Acess toStores
2/4
Value of time
3/4
Size of savings
3/4
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consumers place value on factors like time and money will have an impact on the
uptake of an offer.
4.1.3 Post Purchase Price Search
The ability for the consumer to continue searching for cheaper prices after the
initial purchase of a product is highlighted by the literature as a key factor of a
PMG offering (Arbatskaya 2005; Kukar-Kinney et al 2007b). However, the
research discovered an important theme that was not present in the literature; the
ability for the consumer to save money by purchasing strategically with an in built
saving method.
Table 4.3 – Quotes describing purchasing habits
“There are some products that I like to go for the brand, things like gravy or
bread. They are things that I‟d normally go for but other things like chicken
breast or mince I find that you might as well go for the cheapest option
because it‟s cheaper and it‟s practically the same product. I mean it might be
less in quality but it‟s still the same thing.”
“Sometimes I go for value if I am wary of money; other times I actually justlike the cheap stuff. I‟d say I mainly go for own brand. Doing that means I
know I'm saving over buying more branded stuff that rips you off.”
By selecting products at different price levels, the consumer has the belief that
they are getting the best deal because of their actions. Searching for cheaper
prices after the purchase would undermine their strategy of purchasing.
4.1.4 Effective Price Match Guarantees
The research also looked at various areas relating to the effectiveness of a PMG,
this is because its effectiveness has a direct impact on its ability to alter behaviour
(Lindsey-Mullikin and Petty 2009). One area that the research looked closely at
was how a PMG can be made more effective in terms of its refund size or
comparison scope. The findings in this area showed that overall, the interviewees
favoured a larger refund rather than a wider offering of comparisons. The quotes
below (table 4.4) illustrate the difference of opinion.
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Table 4.4 – Comparison of thoughts relating to PMG effectiveness
Effectiveness of PMG
Large Refund Wider Scope
“If I was doing the weekly shop and was
spending say thirty or forty pounds and I knew
that going to a particular place would save me
like five pounds per shop then I‟d go to that
place”.
“If more products were compared and
drove the prices down of my shop that
would be a big factor”.
“Obviously a larger refund is better if I was
going to use the offer.”
“I wouldn‟t even bother using the guarantee
unless I knew it was going to save me loads,
otherwise it‟s a waste of time”.
The comparison of the data clearly shows that a larger refund is the main factor
favoured; the respondent favouring wider scope still mentions that it would be the
effect on price that was desirable. This is supported by the earlier discussion
relating to the cost of price search; as it is perceived to be high then so must the
potential refund in order to justify the initial cost.
The literature relating to this area is restricted to just 2 other studies however, they
both find similar results; a large refund is more attractive to initially convincing the
customer to try a PMG (Kukar-Kinney and Walters 2003, Kukar-Kinney 2006).
4.2 Supermarket Choice
The second primary research objective was to explore the way in which price
match guarantees can change consumer supermarket choice. This involves
looking at the factors that dictate supermarket choice and the way in which a PMG
can influence these.
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Figure 4.3 – Themes involved in store choice
Identified from thematic analysis of interview transcripts
The themes developed from an analysis of the interview transcripts are presented
in the diagram (figure 4.3). The research discovered factors that related to store
choice and also discovered the importance that the interviewees placed on these
factors. The implication of this is that the PMG cannot have an effect on some of
the factors discovered; while they can influence store choice by offering largerefunds but not by making a store appear near someone. The table (4.5) below
shows the four main themes that were discussed by the interviewees and lists
them by the number of times these themes were mentioned.
Table 4.5 – Importance of themes relating to the choice of a store
Theme Quote Importance
Convenience “If it was local and like pretty convenient then yeh that‟s would
be okay, I don‟t think I‟d save much if I had to go all over just
to save money”
Very High
4/4
Size of
Refund
“Obviously a larger refund is better if I was going to use the
offer.”
High 3/4
Type of Shop “I tend to visit the supermarket every day to pick up bits as
and when I need them.”
High 3/4
Hassle “It takes too long to wait for it to work on the internet, id have
lost my receipt and forgot about doing it the next day”
Medium 2/4
StoreChoice
Location
ClaimingMethod
Trust
Location
Conve-nience
Type of Shop
ClaimingMethod
Amount of Hassle
Refund Size
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The findings indicate that there are multiple factors with importance that determine
the choice of a store. The findings relating to the size of refund has been
previously discussed in section 4.1.4. The findings relating to the other themes will
discuss below.
4.2.1 Convenience
The convenience of the stores location was the most important factor given by all
of the interviewees in terms of how they determine the store that the use for
shopping. This was not previously considered by the literature and also opens up
a range of possible research into the consumer‟s ability to access stores that offer
PMGs. Some of the literature does discuss elements such as distance and
location of the stores (Srivastava and Lurie 2004; Kukar-Kinney et al 2007a)
however; the themes discovered here suggest that convenience is entirely
separate entity. The strength of convenience as a factor is highlighted by one
quote from an interviewee;
“If I only needed a bottle of milk I would go down to the corner shopand pay a little bit extra. Just because it means I don‟t have to gohalf a mile out of the way.”
This demonstrates that this consumer would pay more for a product that they
knew was overpriced because it was more convenient to do so. Whether another
store has a PMG does not influence the consumer in this situation because they
know that they could save the money but purposely does not do so.
4.2.2 Type of Shop
The research discovered that consumers had two distinct types of shopping; either
weekly or buying as needed. This was not found in any previous literature on
PMGs, indicating there may be potential cultural differences in the way that
consumers purchase groceries. Only one of the interviewees never conducted a
weekly shop while the others all shopped weekly while also buying other items
when needed. The diagram (figure 4.4) below shows this shopping behaviour.
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Figure 4.4 – Display of interviewees’ shopping habits
Identified from thematic analysis of interview transcripts
The impact of these findings is that consumers were found to only be likely to take
advantage of a PMG if they stood to save a large amount of money, only weekly
shopping is conducive to this. Although the majority of the consumer did go
shopping on a weekly basis, they also they also displayed mixed purchasing
behaviour. The quote below demonstrates the opinion of an interviewee that did
not shop weekly.
“I don‟t do a weekly shop; I just buy products when I need them. I don‟t
think I‟d save enough money for the time spent getting it to be worthwhile.”
The findings of shopping type relate back to the size of the refund and potential to
save money. The consumer does not see the potential for a large enough saving
for them to alter their shopping behaviour.
4.2.3 Trustworthiness of Stores
A separate factor that the research discovered that directly relates to the choice of
store when a PMG is offered is the issue of trust. The literature indicated that there
must be trust in both the retailer as a business and in its ability to deliver on
promises (Kukar-Kinney and Grewal 2006). The research findings were that the
stores were generally trustworthy although each interviewee had a different reasonfor this belief, the table (4.6) below displays these beliefs.
Mixed
3/4
WeeklyShop
3/4
Buy asneeded
1/4
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Table 4.6 – Quotes describing store trustworthiness
“If they are advertising it in public, like on TV and stuff then yeh I‟d say
they have an obligation to adhere to those terms
“I have no real reason not to believe them. Especially since Sainsbury‟s
have started to give receipts stating how much you saved shopping
there”
“Yeh I‟d say I do believe what they say in their adverts, but I‟m aware
that the stuff they say has been done by marketing people”
The table shows that the one of the interviewees‟ found stores to be honest
because of transparency while the other believed it was due to them being
obligated. The third interviewee did not offer a reason and the fourth did not have
a belief either way. The literature offers a different reason from those discovered in
analysis of the research which is that the reputation of the store is a source of trust
(Kukar-Kinney and Grewal 2006). The findings suggest therefore, that there are
many reasons for a consumer to trust a stores PMG offering but the important
element is that the trust exists.
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Section 5.0
Conclusion
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This section concludes the research project by looking at the extent to which the
research aim was achieved and the degree to which the objectives were met. The
implications that the research may have on future studies are discussed, along
with a critical reflection of the issues that the research presents for both
businesses and consumers.
5.1 Meeting Objectives
The first objective was met through secondary research which involved the
discovery and review of literature relating to the issue of PMGs. The literature
showed that there was no previous research into the use of PMGs in the UK
market and that studies into supermarkets in general were very limited. The review
of the literature did allow for the discovery of the key issues and the identification
of knowledge gaps that the study would intend to bridge.
The second objective was tackled through the use of a qualitative research
methodology and research design that allowed for an exploration of the
consumers reality. The research indicated that consumers do not change their
price search behaviour on the offer of a PMG. The primary reasons for this is that
the interviewee‟s price search was very limited due to a perceived high cost of
comparing prices, an intuitive price knowledge process and high value placed on
their time. As the price search was already shortened by these factors, the offer of
a PMG did not shorten the price search process or increase purchase intentions.
The research findings were similar to that of the current literature in that the
general consensus is that price search will not take place when search costs are
high. However, the research did find factors that the literature does not consider
such as the value the consumer places on their time.
The third objective also used qualitative research and was related to the extent to
which PMGs could influence supermarket choice. The research found that
although there are certain ways in which an effective PMG will have an influence
on the consumer, the most important factor in store choice was convenience. This
factor was demonstrated as being the consumer‟s primary concern when choosing
a store, above factors such as refund size, level of trustworthiness the store had.
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The PMG offer itself cannot change the stores location neither can it make a store
more convenient for the consumer.
The literature suggests that PMGs do have an effect on store choice and although
the research findings do not outright refute this, it does suggest that in the UK
market at least there are other factors that are valued above simply saving money.
5.2 Direction of future research
The research indicates that PMGs are not as successful in influencing purchase
intentions or store choice in the same way the literature suggests that they are in
the US and other countries. As this study only focused on undergraduate students,
an obvious direction for future research would be to discover if these findings are
consistent with other consumer groups. Furthermore, quantitative based studies
could be used in order to discover the extent that the issues identified in this
research exist in the wider market.
The research also found a previously undiscovered theme relating to how
consumers perceive the costs of price search; the value that they place on their
time. This could be an area of research to undertake in the US market to discover
if this phenomenon is unique to the consumers of the UK market or it has been
previously unidentified in US based research.
5.3 Implications
The research findings have many implications on both businesses and consumers
in relation to the use of PMGs. In terms of the implications for business, the
research showed that the key reason for interviewees not using a PMG offer was
the perceived cost of price search. Supermarkets should ensure that they are
drawing the consumers focus to the elements of their PMG offering that make it
easy, quick and cheap to use i.e. Sainsbury‟s offer requiring no further steps by
the consumer.
Furthermore, the research showed that the most effective element of the PMG in
being effective is a large refund depth or the potential for the consumer to save a
meaningful amount. Again because of this, supermarkets that offer a large refund
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should make this very clear i.e. Asda offering 10% discount over competitors. By
making these points clear in their marketing communications, the businesses are
likely to benefit from increased awareness of those factors consumers care most
about.
Another important finding was that convenience often played a larger role in store
choice than any elements of the PMG that the supermarket has the ability to
control. In order to maximise the uptake of PMG offers, it should be made clear to
consumers that local supermarkets such as Tesco Express of Sainsbury's Local
also offer the PMG and that it is not strictly for use in the large stores. This should
limit the effect of convenience being a major factor by ensuring the consumer
understands that they can have both convenience and the PMG offer.
The main implication of the research for consumers is that it indicates people often
rely on intuition and previous behaviour as cues for what a fair price is. The lack of
price search behaviour, although mainly attributed to the perceived high cost it
entails, may also be related to the process of grocery shopping becoming too
habitual and consumers failing to challenge the supermarkets through offerings
such as PMGs. The research indicates that there is not a high enough level of
involvement in the shopping process, if shoppers were to take more formal
approaches to the process there may be the potential for large savings.
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Section 6.0
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Section 7.0
Appendix
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7.1 Price Match Guarantees as Anti-Competitive
This is looked at in some depth by Arbatskaya et al (2004) who conduct a
thorough investigation into the issue, looking at 515 different examples of PMG
offers. The research intends to answer the question as to whether PMG‟s are
actually beneficial to the consumer and to what extent some of the offerings
promote anti-competitive practices, it also reviews some of the literature
surrounding that area.
One interesting view provided is that “theorists typically do not distinguish among
the variety of low price guarantees” (Arbatskaya et al 2004:308) which leads to the
confusion of the results of other studies. The main discussion in the paper is of the
perceived anti-competitive nature of PMG‟s which they argue is supported by too
little empirical evidence. The study separated the area of PMG‟s into two main
subsections depending on how the offer was formed; price matching and price
beating. They conclude that PMG‟s do not generally allow for anti-competitive
pricing because in order to do so the hassle cost to the consumer must be low
however, they found that overall 44% of price matching guarantees and 90% of
price beating guarantees did not facilitate collusion of prices. This area was
revisited by Arbatskaya (2005) and again concluded that PMG do not specifically
allow for anti-competitive markets to exist.
The findings presented in Arbatskaya et al (2004) and Arbatskaya (2005) are in
sharp contrast with other studies. The first is Lindsey-Mullikin and Petty (2009)
who look at PMG‟s in the context of bargain assurances, an offer where by the
customer is explicitly told that a price or deal is the best and therefore can cut
short price search. They argue that this often misleads the customer and that in
order for a PMG to not be deceptive; the price comparison made with competitors
should be defined (Lindsey-Mullikin and Petty 2009:67). They also argue that
„when an entire industry uses price matching refunds, the incentive to compete on
price declines‟, a sentiment that is supported by Eldin (1997) and Salop (1986).
This is a clear indication of a belief that PMG‟s are in fact anti-competitive in terms
of collusive pricing.
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The empirical study by Hess and Gerstner (1991) also conflicts with Arbatskaya et
al (2004) however, there is less emphasis on whether or not the outcome of PMG
should actually be described as anti-competitive. Instead, they conclude that
adoption of PMG‟s helps supermarkets avoid price competition which in turn leads
to generally higher prices. This view is also supported by Srivastava and Lurie
(2001).
Overall, the literature in this area is in debate, this is because much of the work is
not empirical and even where it is, there is no agreement. It is therefore
reasonable to conclude that PMG‟s do have a major effect on competition; the
customer is not going to get the best price if everyone offers the same price. The
degree to which this is anticompetitive is debatable and more applicable to a study
in the area of business economics or business law. Although this research study
will not focus specifically on the area of anti-competitive practices, this is
nonetheless an important area of the literature to understand. The literature will be
used to inform the methodology and it sets the scene for what could be future
issues in the British market: the chance for collusive pricing is increased the longer
that price match guarantees are enforced as more companies begin to follow suit
(Eldin 1997).
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7.2 Sample Interview Transcript One
Interview Transcript 1M21 – 60/03/2012
Researcher: Could you explain how you decide where to shop for groceries?
Interviewee: Erm…at the moment it‟s based off what‟s cheapest. Cos I'm running
quite low on money so I'm just kind of going for the cheapest option. I know that
there are stores close by but they‟re too expensive, you know like Spar. Too
expensive to afford to buy the weekly shop.
Researcher: Do you ever change the place you shop?
Interviewee: I switch between the Asda in Hulme and the Sainsbury's down the
road. I tend to go to Sainsbury‟s for the location. If I'm passing by I‟ll pop in
otherwise I‟ll go to Asda.
Researcher: Do you shop weekly or do you just purchase the items as you need
them?
Interviewee: If I'm tending to run low on stuff like in the fridge or cupboard, I‟ll run
over and grab stuff, like if I run out of milk. I‟ll go to a shop that‟s nearest and pick
up a few essentials but I won‟t actually do a weekly shop, I‟ll just pick up what I
need at the time.
Researcher: How do you know how much products should cost when grocery
shopping?
Interviewee: Its based off, with living at uni I‟ve shopped at a lot of places like spar
Tesco Sainsbury's Asda and during that time you tend to get a feel for the costs of
products, you get a basic average of like how much milk should cost, cheese and
stuff. After a while, after a couple of years you kind of weigh up where is likely to
be cheaper and you go for those options instead. It‟s basically just comparing,
based off experience really.
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Researcher: So do you believe that you are quite aware of the general pricing of
products offered in supermarkets?
Interviewee: Yeh I mean I couldnt tell you any prices on the spot, I couldn‟t give
you the price of milk right now but if I was in a shop I‟d know what a good price is.
Researcher: Do you regularly check the price or offers of supermarkets before
engaging in shopping?
Interviewee: No, no I just go off my experience.
Researcher: Is there any particular reason you don‟t take the time to look before
you go?
Interviewee: Personally I find it unnecessary; I‟ll just go to Asda because they offer
you a large enough variety of products to give you the choice of what you are
going to buy. You can buy half decent milk or really cheap milk. So there‟s no point
doing research beforehand.
Researcher: So you don‟t believe searching for prices before going shopping
would be beneficial in finding the lowest priced stores?
Interviewee: I suppose if you went and you were doing a weekly shop erm you
could probably compare a basket. But if you are going around just picking up odds
and ends I don‟t really see much point.
Researcher: If you knew that you had the chance to be given a refund for finding
cheaper prices would you keep looking after you had purchased?
Interviewee: Personally, no. again, I'm just used to shopping where I always shop
and I go f or the cheapest options there. They tend to be the cheapest, I don‟t look
at any other places.
Researcher: Could you explain how you perceive supermarkets in terms of price?
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Interviewee: In general I think supermarkets are very competitive, I think that‟s a
major advantage of being a customer. They are all competing with each other and
you are going to get lower and lower prices at different places. There are places
like the smaller shops, like Spar that do tend to be expensive but I believe they go
off the convenience factor cos they are usually in really convenient places. But
supermarkets are all pretty similar.
Researcher: So because of the competition, you think that they are all quite
similar?
Interviewee: Yeh, obviously certain things are expensive in some supermarkets
but you could shop cheaply at any of them.
Researcher: How would a supermarket offering to match the price of competitors
change your perception of that cost of products in that supermarket?
Interviewee: The only way that it would change my perception is a combination of
how much it would save, if it was a big enough saving, like more than five or ten
pounds and if it was convenient then I‟d definitely go to that place because I‟d
know it was cheapest.
Researcher: Do you view grocery shopping as a series of individual product
purchases or as a single large purchase?
Interviewee: When I'm picking up the items to buy I tend to think of them
individually, I never really think about how much it will cost overall I just go off the
fact that the cheaper products I get the less expensive my baskets going to be.
Researcher: How do you choose between the items on the shelf?
Interviewee: There are some products that I like to go for the brand, things like
gravy or bread. They are things that I‟d normally go for but other things like
chicken breast or mince I find that you might as well go for the cheapest option
because it‟s cheaper
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7.3 Sample Interview Transcript Two
Interview Transcript 2M24 – 08/03/2012
Researcher: Could you explain how you decide where to shop for groceries?
Interviewee: I‟d say it‟s mainly based off convenience, as I don‟t have a car at Uni
with me I can only be bothered taking my weeks shopping so far. if I need any
random meals I just buy them wherever‟s closest.
Researcher: What is the most important factor?
Interviewee: just that the shop is within walking distance from home.
Researcher: Do you ever change the place you shop?
Interviewee: Yeh, I‟d rather shop at Tesco or Waitrose when I am at home, but
neither of these are within relevant distance at Uni. If I am buying a random meal I
will buy it anywhere, usually for a treat I buy things from M&S.
Researcher: Do you shop weekly or do you just purchase the items as you need
them?
Interviewee: I generally do a weekly shop but sometimes still run out of stuff! If I do
I go somewhere near where I am, like if I'm at uni or something.
Researcher: How do you know how much products should cost when grocery
shopping?
Interviewee: I like, usually buy similar meals each week, after a while you just get
an understanding of how much things cost. Obviously stuff like deals may sway
my decision, and buying different brands if they are on offer.
Researcher: So do you believe that you are quite aware of the general pricing of
products offered in supermarkets?
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Interviewee: Like I said before really, my weekly shop will be the same price every
week. I think I am aware of how much things usually cost, and obviously the mark
up supermarkets will place on products from stuff I‟ve done at uni.
Researcher: Could you recall the price of items bought in the last shop?
Interviewee: Yeah my last week‟s shop was about £22, and contained £5 in
cheese and £1.40 in potatoes!
Researcher: Do you regularly check the price or offers of supermarkets before
engaging in shopping?
Interviewee: Not really, as I can only go to one supermarket there is little point.
Also as I walk around the supermarket the deals are usually well publicised around
the store so I just select the relevant ones to my needs.
Researcher: Do you think spending time searching for information before shopping
will help find the cheapest supermarket?
Interviewee: It can do when you‟re like buying the groceries, but with current petrol
expenses the savings you make in the store may be wiped out by travelling further
than you need to!
Researcher: If you knew that you had the chance to be given a refund for finding
cheaper prices would you keep looking after you had purchased?
Interviewee: No not really, I value my time more than wasting it trying to recoup a
few quid.
Researcher: Could you explain how you perceive supermarkets in terms of price?
Interviewee: Prices are usually cheaper than that of individual stores, I am happy
to pay what I do for the stuff I buy.
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7.3 Sample Interview Coding
Interview Transcript 1M21 – 60/03/2012
Researcher: Could you explain how you decide where to shop for groceries?
Interviewee: Erm…at the moment it‟s based off what‟s cheapest. Cos I'm running
quite low on money so I'm just kind of going for the cheapest option. I know that
there are stores close by but they‟re too expensive, you know like Spar. Too
expensive to afford to buy the weekly shop.
Researcher: Do you ever change the place you shop?
Interviewee: I switch between the Asda in Hulme and the Sainsbury's down the
road. I tend to go to Sainsbury‟s for the location. If I'm passing by I‟ll pop in
otherwise I‟ll go to Asda.
Researcher: Do you shop weekly or do you just purchase the items as you need
them?
Interviewee: If I'm tending to run low on stuff like in the fridge or cupboard, I‟ll run
over and grab stuff, like if I run out of milk. I‟ll go to a shop that‟s nearest and pick
up a few essentials but I won‟t actually do a weekly shop, I‟ll just pick up what I
need at the time.
Researcher: How do you know how much products should cost when grocery
shopping?
Interviewee: Its based off , with living at uni I‟ve shopped at a lot of places like spar
Tesco Sainsbury's Asda and during that time you tend to get a feel for the costs of
products, you get a basic average of like how much milk should cost, cheese and
stuff. After a while, after a couple of years you kind of weigh up where is likely to
be cheaper and you go for those options instead. It‟s basically just comparing,
based off experience really.
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Researcher: So do you believe that you are quite aware of the general pricing of
products offered in supermarkets?
Interviewee: Yeh I mean I couldnt tell you any prices on the spot, I couldn‟t give
you the price of milk right now but if I was in a shop I‟d know what a good price is.
Researcher: Do you regularly check the price or offers of supermarkets before
engaging in shopping?
Interviewee: No, no I just go off my experience.
Researcher: Is there any particular reason you don‟t take the time to look before
you go?
Interviewee: Personally I find it unnecessary; I‟ll just go to Asda because they offer
you a large enough variety of products to give you the choice of what you are
going to buy. You can buy half decent milk or really cheap milk. So there‟s no point
doing research beforehand.
Researcher: So you don‟t believe searching for prices before going shopping
would be beneficial in finding the lowest priced stores?
Interviewee: I suppose if you went and you were doing a weekly shop erm you
could probably compare a basket. But if you are going around just picking up odds
and ends I don‟t really see much point.
Researcher: If you knew that you had the chance to be given a refund for finding
cheaper prices would you keep looking after you had purchased?
Interviewee: Personally, no. again, I'm just used to shopping where I always shop
and I go for the cheapest options there. They tend to be the cheapest, I don‟t look
at any other places.
Researcher: Could you explain how you perceive supermarkets in terms of price?
7/29/2019 An exploration of the use of price match guarantees in UK supermarkets from a consumer perspective.
http://slidepdf.com/reader/full/an-exploration-of-the-use-of-price-match-guarantees-in-uk-supermarkets-from 81/81
Interviewee: In general I think supermarkets are very competitive, I think that‟s a
major advantage of being a customer. They are all competing with each other and
you are going to get lower and lower prices at different places. There are places
like the smaller shops, like Spar that do tend to be expensive but I believe they go
off the convenience factor cos they are usually in really convenient places. But
supermarkets are all pretty similar.
Researcher: So because of the competition, you think that they are all quite
similar?
Interviewee: Yeh, obviously certain things are expensive in some supermarkets
but you could shop cheaply at any of them.
Researcher: How would a supermarket offering to match the price of competitors
change your perception of that cost of products in that supermarket?
Interviewee: The only way that it would change my perception is a combination of
how much it would save, if it was a big enough saving, like more than five or ten
pounds and if it was convenient then I‟d definitely go to that place because I‟d
know it was cheapest.
Researcher: Do you view grocery shopping as a series of individual product
purchases or as a single large purchase?
Interviewee: When I'm picking up the items to buy I tend to think of them
individually, I never really think about how much it will cost overall I just go off the
fact that the cheaper products I get the less expensive my baskets going to be.