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Analyzing the Effects of Retail Store Management Tactics on Consumer

Perceptions: Insights from Marketing Management

A Research Proposal

Presented to the School of Business and Accountancy

Holy Cross College

In partial fulfillment

of the requirements for the degree

Bachelor of Science in Hospitality Management

February 2024

Chapter Ⅰ

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Introduction

Background of the Study

Retail is the sale of goods and services to consumers, in contrast to wholesaling,

which is sale to business or institutional customers. A retailer purchases goods in large

quantities from manufacturers, directly or through a wholesaler, and then sells in

smaller quantities to consumers for a profit. Retailers are the final link in the supply

chain from producers to consumers. Retail markets and shops have a very ancient

history, dating back to antiquity. Some of the earliest retailers were itinerant peddlers.

Over the centuries, retail shops were transformed from little more than "rude booths" to

the sophisticated shopping malls of the modern era. In the digital age, an increasing

number of retailers are seeking to reach broader markets by selling through multiple

channels, including both bricks and mortar and online retailing. Digital technologies are

also affecting the way that consumers pay for goods and services. Retailing support

services may also include the provision of credit, delivery services, advisory services,

stylist services and a range of other supporting services.

Many retailers have a tendency to grow the scope of their offerings to integrate

considered products outside of their traditional space. In this way, necessities store and

retail stores advertise their products, such as hardware, textiles, engine parts, drugs, and

electronics.

Retail marketing has evolved significantly since its start, necessitating a detailed

understanding and study of its many components. One unusual situation witnessed over

the last two decades is rapid development in new retail forms. In terms of development

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and investment potential, India's retail sector is experiencing a complete transition;

both new and established market participants are experimenting with new retail

models. Hypermarkets and supermarkets are two retail ideas that are growing in

popularity in today's market. Every aspect of retail marketing is considered, from the

interior to the exterior, including promotions and discounts, product placements in-

store advertisements, strategic positioning, and shop representative behavior.

In the ever-changing globalized and liberalized world of retailing, competition

becomes the major organizational principle of marketing activities. In this dynamic

business environment, consumer behavior, trends and issues of retailing are undergoing

a sea change. This demands marketing approaches to be altered accordingly. Thus, all

retail formats are challenged to formulate marketing strategies that will ensure them of

achieving competitive advantage over other competing formats.

ls such as stores, malls, kiosks, vending machines or other fixed locations. In

contrast, direct marketing to consumers attempts to complete a sale through phone, mail

or website sales. The successful implementation of the components of the traditional

marketing mix (product, place, price and promotion) is essential for success in retail

marketing. Retail marketing strategy has to create interest and converse store planning

concept to customers by way of developing competitive retail marketing review, by

targeting customer behaviours and by identifying the branding. An analysis of internal

environmental factors, marketing mix plus performance analysis and external

environmental factors customer analysis, competitor analysis, target market analysis, as

well as technological, economic, cultural or political/legal environment likely to follow

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success of market plan. Each market plan has to focus on monitoring the progress and

set of contingencies.

Review of Related Literature

It is clear that the goal of every retailer is to transform visitors into buyers. It appears

that retailers need to focus on improving the sales target so as to generate revenue in

addition to serving the relationship between manufacturers and consumers. Retailers

often need to focus on many important aspects of retail, such as improving

communication with customers, building a brand image among the general public, and

providing efficient customer service to ensure business inflows. Retailers generally

focus on these services to ensure that customers are satisfied. Furthermore, in order to

transform visitors into buyers or customers, retailers need to pay more attention to the

most important aspects of organized retailers' retail. These important aspects of retail

are visual marketing, warehouse design and retail-friendly retail space management.

These features not only attract customers to retail stores but also transform them from

visitors to buyers. The purpose of visual marketing is to attract customers through the

display of effective sales in stores. Visual Affiliate visual marketing manages to attract

customers and provide a better engaging experience for customers. Similarly, effective

store design is crucial for retailers and influences customer decision. Furthermore, the

researchers say that it is important for retailers not to use any retail space and to focus

on product display so that the right products can be found in the right space. From the

information provided here, it is clear that the existence of any organized retail business

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in any competitive environment can only take place when retailers are able to attract

customers to their stores. Attracting visitors to retail stores and turning them into

customers can be done through proper management of the essential elements of retail.

The elements of retail are visual marketing, warehouse design and retail space

management, and if retailers can effectively manage these essential elements of retail,

such as visual marketing, store design and retail space management, they will not only

attract visitors This study reveals that they will be transformed into customers.

(Sulaiman and Ahmed, 2017)

The entry of online retailers and the widespread use of digital technology has posed a

threat to the business models of small retail stores in India. This is because small retail

outlets use technology less. Using a qualitative methodology and a techno-

organizational environmental framework, the study explores the challenges facing these

small retailers as the main reasons for the government's push for digital payments

and increased competition from large retailers and online retailers. Lack of control, cost

of technology, low consumer socio-economic background, influence of suppliers, tax

and security implications, bureaucracy and lack of confidence in regulatory and external

environment are the challenges identified by the researchers in this study. In addition,

poor physical and digital infrastructure, inadequate access, and poor reliability and

cost of digital technologies hinder the use of digital technology. According to the

report, increasing competition from large supermarkets and digitization is rapidly

changing the landscape of retail, accelerating the decline and adaptation of small retail

stores. Despite the urbanization and supermarket chain and the arrival of online

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retailers, it has been reported that these small retail outlets still control 98% of the retail

market in India. Many retail sales are still taking place in the physical stores manual

system and as these small retail outlets in India have great economic significance, the

implications of digitization for them should be considered. (AU et al., 2018)

It describes the potential for energy efficient energy management to improve the

energy efficiency of retail stores. Implementing energy management in retail stores is

currently a challenge due to the roles of different stakeholders and different storage

features. (Zheng Ma et al, 2018)

Some large retail stores will train service officers and use advanced technology to

improve the quality of service. In practice, the main reason why the services

provided by these small retailers have not yet reached a good service effect is

considered to be the lack of utilization of technology. Some retail services run them

uninterested and do not focus on upgrading and optimizing. (Lu, 2020)

Archade's shops, such as those of many years ago, are well-known and still trade,

such as the Burlington Arcade in London, the Galleria Vitorio Emmanuell II in Milan

and the Arcade in Paris. This research paper states that many of the smaller traditional

arcades that currently exist in the traditional way have been demolished and replaced by

larger "shops". A number of shops located in one area combine to form a "shopping

mall" and the concept has a long history and has benefited all sections of society. The

proliferation of large shopping malls outside the city has resulted in small shop owners

losing customers. (Mathews, 2018)

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Optimal policy offers significantly higher returns than cost-based inventory

policies, and researchers emphasize the importance of profit-based inventory

management. In order for a retail store to work to perfect ordering standards, it must

have aggressive inventory management, supply chain operations restructuring, and

standards upgrading to the absolute standard. Parametric updates include timely orders,

data synchronization, damaged and unusable products, delivery dates, order timelines,

and rack-level services. (Sohail and Sheikh, 2018)

One may analyze the following as strategic decisions in a commercial company

(Müller-Hagedorn&Toporowski;2017): a) selection of a business unit type; b)

internationalization-related decisions; c) diversification direction and scope; d) scope of

cooperation between commerce and industry; e) decisions on the formation of central

resources, especially the IT and logistics systems, as well as on the formation of

informational structures, predominantly related to centralization and decentralization

However, retailing literature so far has paid little attention to the importance of care

management for customers and employees. Even less, has it investigated how a care

management perspective can be implemented to manage dysfunctional behavior in

retailing environments. Furthermore, to the best of the authors’ knowledge, those few

retailing studies addressing dysfunctional behavior have always focused on consumers,

ignoring employees (Gong et al., 2022).

Retailing is a socio-economic system, which brings people together, to

exchange goods and services for a small consideration; which matches the needs of

people, the ultimate consumers, with those of manufacturers and agriculturists, which

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not only satisfies the essential daily necessities of life but also promotes new

lifestyles, thus peace, happiness and prosperity in the community (Rudrabasavaraj,

2018)

In a similar meaning, Kotler and Armstrong define retailing as all the activities

for selling goods or services directly to ultimate buyers for their personal, non-

business use whereas according to Aydın, retailing represents the entirety of

activities that add value to products and services sold to consumers for personal use

and households. So, retailing consists of all of the activities of goods sold to

ultimate buyers (Perreault et al., 2018)

Retailing thus, is seen as the ultimate gate in the delivering of products, for

consumption by the final consumers. Any firm that markets goods to the ultimate

buyer is doing the function of retailing. It thus, includes all activities associated in

the selling of products and services directly to the buyers, for their personal, family

or household use. Retail is the final stage of any economic activity (Arora, 2018).

Significance of the Study

The study’s significance plays a vital role in identifying how significant the study is

and how imperative it is to the significant individuals. The significance of the study is a

section in the introduction of the thesis or paper. Its purpose is to make clear why the

study was needed and the specific contribution of the research made to furthering

academic knowledge in the field.

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Moreover, this study plays a significant role in providing all needed information and

idea to all the significant individuals who will benefit from this study. Also, this study is

significant in a way that it provides insights to all those individuals who will carry this

study.

This study will be beneficial to the following:

To the Customers. This study will be beneficial to the customers because it will

provide them insights and ideas on what are the tactics in marketing of various retail

stores and how can it affect their buying behavior and purchase intention.

To the Retail Store Owners. This study will enlighten the retail store owners regarding

the importance of management tactics and how impactful it is to all the customers that

are purchasing retail products.

To the Future Researcher. This study will be beneficial to the future researchers

because this research will serve as the guide of the future researchers in further

understanding the scope of this study and its parameters. The future researchers can also

utilize this research for further growth of knowledge and for future purposes.

Theoretical Framework

This study is anchored to the wheel of recycling theory. The wheel of retailing

theory is one of the most common cyclic retailing theories. This was first proposed by

McNair (1958) is one of the oldest retailing theories, and is frequently cited. The idea is

that retailers will enter the market and progress through a cycle of strategies. Initially,

McNair believed that retailers would enter the market using a low-cost strategy, and

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accepting low profit margins, as a method of acquiring customers. Costs are kept to a

minimum during this phase, with the retailer offering only limited service and product

range. This was referred to as the entry phase.

As the retailer acquires customers and profits, they move onto the trading up phase

of the cycle. At this stage the retailer has gained customers and is able to invest in the

business in order to improve profits. Strategies that this stage may include obtaining

better facilities, for example moving to higher locations, increasing the service level,

expanding the product range, and investing more in displays and advertising. Notably,

when one retailer moves into this phase, they may leave a gap in the retail sector for

new discounters to enter.

The third stage is the vulnerability phase, where the retailer has become a mature

business and may now have high overhead costs. At this stage the organization may be

facing a declining return on investment, may need to renew their strategies in order to

retain existing customer, who may be tempted to competing organizations where there

are lower prices, high level of differentiation. Therefore, the mature retailer may move

back to the entry phase, with a need to attract new customers, often achieved through

increased discounting, and cutting costs to alleviate the heavy overheads.

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Conceptual Framework

Paradigm of the Study

INPUT PROCESS OUTPUT

 Customers of  Construction of  To provide

retail stores the survey intervention plans

 Statement of the questionnaire and programs to

problem  Securing a retail store

permission owners on how to

letter manage properly

 Floating of their businesses

survey and how to entice

questionnaire customers.

 Gathering and

collection of

data

 Analysis and

interpretation of

data thru

statistical

treatment of

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data

Statement of the Problem

General Problem

This study aims to determine the effects of retail store management tactics on

consumers perceptions.

Specifically, it seeks to answer the following questions:

1. How may the demographic profile of the respondents be described in terms of:

1.1 age;

1.2 sex;

1.3 monthly income; and

1.4 frequency of purchasing on retail stores.

2. What are the retail store management tactics used by owners?

3. How may the effects of the retail store management tactics on consumers perception

be described as:

3.1 personal;

3.2 buying behavior;

3.3 brand image; and

3.4 repetitiveness.

Hypothesis of the Study

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H 0 :The retail store management tactics has no effect to the perception of the consumers

H 1 :The retail store management tactics has an effect to the perception of the consumers.

Definition of Terms

Tactics. It pertains to the strategies and techniques done and utilized by retail store

owners.

Retail Stores. It pertains to the stores that sells products on a retail basis.

Management Tactics. It pertains to the techniques done by retail store owners on how

to manage their respective business.

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Chapter II:

Methodology of the Study

This chapter presents the research methodology that was used in the data

gathering, analysis and presentation of the study. Specifically included in this chapter

are the methods and techniques, population and sample, construction and validation of

instruments and the data processing and statistical treatment applied.

Methods and Techniques

This study is quantitative research which means, all data that will be presented on

this study are stated in numbers, and mathematical figures. Quantitative research is a

type of research wherein, all data are interpreted numerically through the use of a

specific statistical tool.

The researchers will imply the use of Descriptive Research as its research design.

Descriptive research is a type of quantitative research wherein, the variables, factors, are

being described and explained. Descriptive research aims to accurately and

systematically describe a population, situation or phenomenon. It can answer what,

where, when and how questions, but not why questions. A descriptive research design

can use a wide variety of research methods to investigate one or more variables.

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As mentioned by McCombes, S. (2019), Descriptive research aims to accurately and

systematically describe a population, situation or phenomenon. It can answer what,

where, when and how questions, but not why questions.

A descriptive research design can use a wide variety of research methods to

investigate one or more variables. Unlike in experimental research, the researcher does

not control or manipulate any of the variables, but only observes and measures them.

Locale of the Study

This part of the research discusses the locale or where the researchers will conduct

the study, will administer the survey questionnaire to the respondents.

The locale of the study will be in Sta. Ana, Pampanga. The researchers chose the

mentioned locale for the convenience of both the researchers and the respondents.

moreover, the above-mentioned locale is progressive and it has numbers of retail stores

that can be found on the fourteen (14) barangays of the mentioned locale.

Key Informants of the Study

Key informant interviews are qualitative in-depth interviews with people who know

what is going on in the community. The purpose of key informant interviews is to

collect information from a wide range of people—including community leaders,

professionals, or residents—who have first-hand knowledge about the community.

The key informants of the study include the business owners, specifically, the retail

store owners, it also includes the local government that are assigned to monitor the

activities, growth, and development of the retail stores. It also includes the government

agencies that are into the business such as Department of Trade and Industry, and the

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like. Moreover, the key informants of this study are those significant people that will

benefit most from this study.

Instruments of the Study

A research instrument plays a vital role in the data collection procedure. Without the

research instrument, researchers will not be able to collect or gather any data which the

researchers will use to interpret and analyze the results of the study.

As stated by McLeod, S. (2018), A questionnaire is a research instrument consisting

of a series of questions for the purpose of gathering information from respondents.

Questionnaires can be thought of as a kind of written interview.

Researchers will utilize the use of survey questionnaire in gathering and collecting

data. Utilization of survey questionnaire in gathering quantitative data is vital and

imperative. It will provide you data that are valid and reliable. Furthermore, the

researchers have utilized the use of 4-point Likert Scale in the survey questionnaire.

Data Gathering Procedure

Data collection procedure is a process where researchers should state the processes

that the researchers have done in collecting or gathering data which the researchers will

be needing in analyzing and interpreting the results of the study.

First, the researchers will craft a questionnaire that is anchored on the study’s

statement of the problem --- general and specific problems or questions.

After which, the researchers will have the questionnaire validated by a statistician,

and grammarian and have it checked by the research adviser.

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Lastly, the researchers need to gather all answered questionnaire, collect and

organize all data, interpret, and present all data. All data will be presented through the

use of various mathematical tools and techniques to assure the validity and reliability of

all the results.

Data Processing and Statistical Treatment

Data Analysis is the process of systematically applying statistical and/or logical

techniques to describe and illustrate, condense and recap, and evaluate data. This part of

the research discusses the data processing technique used by the researchers in

analyzing and interpreting data.

The data matrix technique will be used by the researchers because it can efficiently

organize and process data while providing visualization through the use of charts,

graphs, and tables.

A data matrix is a rectangular table or matrix with columns for variables or attributes

and rows for observations or cases. The matrix's cells each hold a value that corresponds

to the variable for the specified observation. In addition, it serves as the foundational

input for various statistical procedures, including analysis of variance, multivariate

analysis, regression analysis, survey analysis, and cluster analysis.

The researchers will utilize the use of Descriptive Statistics such as frequency

distribution and percentage distribution. Descriptive statistics describe, show, and

summarize the basic features of a dataset found in a given study, presented in a

summary that describes the data sample and its measurements. It helps analysts to

understand the data better.

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Percentage distribution

Percentage (%) This was used to describe the relationship of the group with the

whole population.

Formula:

P = f/N x 100

Where:

P = percentage

f = frequency

N = total frequency (population)

RANGE VERBAL DESCRIPTOR

1.00 to 1.79 Strongly Disagree

1.80 to 2.59 Disagree

2.60 to 3.39 Neither Agree nor Disagree

3.40 to 4.19 Agree

4.20 to 5.00 Strongly Agree

Ethical Considerations

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Ethical considerations in research are a set of principles that guide your research

designs and practices. These principles include voluntary participation, informed

consent, anonymity, confidentiality, potential for harm, and results communication.

The researchers will make sure that the participants’ security and privacy will be the

utmost priority. Anonymity will also be considered because no information of the

participants’ will be used in any part of the research.

Furthermore, the researchers will also still follow the basic health and safety

protocols because there is still a pandemic. Therefore, the researchers will prioritize the

health of the participants during the process of collecting data.

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