Executive Summary

This report is based on market research conducted for GoodBuy Electronics (client) with the aim
of increasing the sales volume in its stores. Market research is an effective tool in business
planning. Appropriate and sufficient information is collected that provides insight in customers’
buying patterns and location. In addition, market research also serves as a tool in monitoring
market trends and competition. Marketing research helps identify issues and solutions on
resolving them.

Introduction

GoodBuy is a large big box retailer that has a track record of success offering popular brands of
electronics such as Samsung, Sony, LG, and HP. Although the bulk of their sales revenue comes
from big-ticket items like computers, big-screen HD televisions, and smart phones, management
wants to develop a strategy to increase sales through increasing the loyalty of its customers.

Point of View

All businesses want to improve customer satisfaction because it is a leading indicator of

consumer repurchase of consumer repurchase intentions and loyalty. It increases Customer
Lifetime Value and reduces negative word of mouth. When customers are happy, they keep on
buying more of your products and share this to other people, which in turn increases sales.

Statement of the Problem

In this case study, management want to increase sales through focusing on increasing customer
loyalty. Hence, the need for marketing research in order to develop a strategy towards achieving
this.

Objectives

1. Improved store infrastructure so that customers will have home-like experience and keep
on coming to the company’s stores
2. Improved efficiency in customer service and engagement from 45% to 60%
3. Increased sales per month by 10%
Case Study- 1 GoodBuy Electronics July 28, 2020

Area/s of Consideration

SWOT Analysis

STRENGTHS

 Great retail space that is bright, functional and efficient for a commercial.
 Excellent staff who are highly skilled and knowledgeable about business

WEAKNESSES

 A limited marketing budget to develop brand awareness due to the lack of critical mass and
store cover.

OPPORTUNITIES

 A growing market in a high growth area with a significant percentage of the target market
still not aware what the organization offers.
 Increasing sales opportunities outside of our target area

THREATS

 Competition from local independent retailers can drive down prices, as owner operators have
lower overhead costs than our staff-run stores.

Data Analysis

Data analysis is done for 10 customers from given excel sheet. (See next page)

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1. Impression of other Good-Buy shoppers (ATS1–ATS4)

2. Favorableness of the GoodBuy atmosphere (ATM1–ATM4)

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3. Customer satisfaction (CSD1–CSD5)

4. Loyalty scales (LOY1–LOY4)

Strategy Formulation

Monitoring crucial factors such as the time it takes to get a response from customers or to get
their issues resolved, and improving on the weaknesses identified, is one of the best ways to
avoid subjecting customers to lengthy delays on their purchases.

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Action Plan

Action Person responsible Time Evaluation Method

Who? How Long? How will you evaluate?

Focus on loyal customer for Sales Team 3-6 months Employee feedback
more sales

Arrange sales staff training General manager 6 months Employee performance

Marketing manger
Conduct customer feedback Marketing manager Every 3 months Analysis of feedback
form
Service manager

Conclusion

Customer satisfaction is essential to unify end user opinions. Conducting customer survey is one
of the best ways for product or service designs. The company shall monitor user feedback after
the product delivery, and address issues/defects quickly.

Answers to Questions
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Case Study- 1 GoodBuy Electronics July 28, 2020

1. In what ways can we allocate resources to consistently encourage our current customers
to spend more time in a GoodBuy store and increase purchases of valuable accessories?

• Keep communicating: keep communicate with regular or loyalty customers through

sending some offer and discount SMS emails.

• Listen carefully: The key concept to satisfy the customers is, listen carefully about their
requirements, and focus to requirement locking.

• Express customer service: Express to your customer about your organization after-sales
service and customer satisfaction.

• Provide home like experience to customers: Focus to provide a home like experience to
your customers so that they are attracts more with your organization and product.

• Discount and offers: May provide some discounts to offers for increase purchase value,
which retain customer engagement.

2. How does the store atmosphere affect customer loyalty?

Store atmosphere includes the physical characteristics of a retail store used to create an image
to pull customers towards you. It is a direct focus to the customer experience, which is the
most vital component of retail today. Customers attention is caught by how a store look, but
they're also expected to make purchasing decisions based on the atmosphere of the
establishment they like.

3. Do customers bond with other customers in the store and does this lead to positive
reactions among consumers?

Yes. Customers feel like they are part of a group and sharing experiences with each other
especially when customers are happy and satisfied, leads to an increase in sales since they
both buy.

4. Are the data appropriate for multiple regression analysis? If so, what technique/s would
you suggest as appropriate and why?

Given data is appropriate for the regression analysis, I chose to present in graphs for analysis
to easily understand the data.

5. The researcher suggests that you first use only half of the data to do an initial analysis
(split the entire sample randomly into two halves of 200 respondents each). Do you think
that is a good idea? Explain.

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I think this is the good idea first use only half of the data to do an initial analysis for initial
analysis; it would be easy to understand, present and analyze, if we acquire whole data at
ones it will be difficult to present and understand.

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References:

• Staff, I. (2018). Market Research. [online] Investopedia. Available at:

https://www.investopedia.com/terms/m/market-research.asp [Accessed 27 Jul. 2018].
• Mindtools.com. (2018). SWOT AnalysisDiscover New Opportunities, Manage and Eliminate
Threats. [online] Available at: https://www.mindtools.com/pages/article/newTMC_05.htm
[Accessed 27 Jul. 2018].
• Bernazzani, S. (2018). What Is Customer Satisfaction? [online] Blog.hubspot.com. Available
at: https://blog.hubspot.com/service/what-is-customer-satisfaction [Accessed 27 Jul. 2018].

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