Free An investigation into factors affecting retail price promotional strategy Dissertation Example

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An investigation into factors affecting retail price promotional strategy

Category: Advertising

Subcategory: Business

Level: Masters

Pages: 21

Words: 5775

AN INVESTIGATION INTO THE FACTORS AFFECTING RETAIL PRICE PROMOTIONAL STRATEGY: A CASE STUDY OF PICK AND PAY RETAIL SHOP IN LESOTHO
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TOC o “1-3” h z u CHAPTER ONE PAGEREF _Toc515970104 h 41.0 INTRODUCTION PAGEREF _Toc515970105 h 42. Research Context: Background PAGEREF _Toc515970106 h 53. Research Problem PAGEREF _Toc515970107 h 64. Aims of the Study PAGEREF _Toc515970108 h 65. Research Objectives PAGEREF _Toc515970109 h 76. Research Questions PAGEREF _Toc515970110 h 87. The Significance of the Study PAGEREF _Toc515970111 h 8CHAPTER TWO PAGEREF _Toc515970112 h 108. LITERATURE REVIEW PAGEREF _Toc515970113 h 108.2 Price Promotional Strategies and Preferences PAGEREF _Toc515970114 h 128.3 The Effects of Retail Price Promotional Strategies PAGEREF _Toc515970115 h 158.4 Apparent Gaps in Literature and Conclusion PAGEREF _Toc515970116 h 179.0 RESEARCH DESIGN AND METHODOLOGY PAGEREF _Toc515970117 h 209.1 Rationale for Methodology PAGEREF _Toc515970118 h 209.2 Research Philosophy PAGEREF _Toc515970119 h 209.3 Research Design PAGEREF _Toc515970120 h 219.4 Research Approach PAGEREF _Toc515970121 h 229.5 Sampling Strategy PAGEREF _Toc515970122 h 239.5.1 Types of Sampling PAGEREF _Toc515970123 h 239.5.1.1 Probability Sampling PAGEREF _Toc515970124 h 239.5.1.2 Non-Probability Sampling PAGEREF _Toc515970125 h 249.5.1.3 Types of Sampling to Apply for the Study PAGEREF _Toc515970126 h 249.6 Target Population PAGEREF _Toc515970127 h 259.7 Sample Size PAGEREF _Toc515970128 h 259.8 Pilot Study PAGEREF _Toc515970129 h 259.9 Data Collection Instruments PAGEREF _Toc515970130 h 269.9.1 Primary Data PAGEREF _Toc515970131 h 269.9.2 Secondary Data PAGEREF _Toc515970132 h 279.9.3 Qualitative Research Instrument PAGEREF _Toc515970133 h 279.9.4 Quantitative Research Instrument PAGEREF _Toc515970134 h 289.9.5 Data Analysis PAGEREF _Toc515970135 h 289.9.6 Reliability and Validity PAGEREF _Toc515970136 h 289.9.7 Limitations of the Study PAGEREF _Toc515970137 h 2910. Ethical Considerations PAGEREF _Toc515970138 h 2911. Chapter Organization PAGEREF _Toc515970139 h 30Bibliography PAGEREF _Toc515970140 h 3414. Appendices PAGEREF _Toc515970141 h 36
CHAPTER ONE1.0 INTRODUCTIONIn the modern corporate environment, competitiveness prevails as one of the elements that most organizations strive to achieve. Consequently, businesses and entrepreneurs aiming at realizing corporate development and dominance have to formulate strategies and approaches that create increased appeal among the different stakeholders and consumers in their target market. Essentially, Bogomolova et al. (2015, 3) note that most of the industries with increased competition have organizations that implement contemporary strategies such as promotional pricing. Arguably, most organizations and business experts agree that promotional pricing is among the most powerful strategies of the modern day. However, contingent on dynamics such as the magnitude of a business and the degree of competitiveness in the market; there are increased factors that act as determinants and facilitators of the most efficient and effective promotional pricing strategy (Ataman et al., 2010, 872).
According to Guha et al. (2017, 79), promotional pricing can be executed using a plethora of approaches. For instance, in most cases, organization reduce the price by a certain percentage for a specified period during which a product is deemed to be in the sale. Resultantly, the purpose of such promotional pricing is creating augmented demand for the product, especially among consumers who are sensitive to prices. On the other hand, Yan (2010, 512) notes that for most business, the implementation of promotional pricing prevails as a sales initiative when they introduce a new product line in the market. Nonetheless, the implementation of promotional pricing, especially among retailers, should use informed decisions as the foundation. Giving price discounts on a specific product or administrations can have adverse implications that determine the success of a brand or a business (Grewal et al., 2011, 47). Resolutely, based on this understanding, the research proposal focuses on an investigation into factors affecting retail price promotional strategy.
2. Research Context: BackgroundIn retailing, pricing incentives and relative promotional strategies all aim at or intend to attract and appeal to more costumers, increase revenue, positively impact the flow of finances, and instigate stock turnovers. However, Allender and Richards (2012, 328) are keen to state that while promotional pricing stands out as a remarkable strategy for businesses most of them use it for a short-term approach, especially the large companies. More so, Yan (2010, 518) affirms that small business and retailers are encouraged to apply the strategy for a short while. However, most of the retailers utilizing retail price promotional strategies use them in recurrence as the standard way for establishing consistent sales and purchases from consumers who are sensitive to prices.
Still, even though excessive utilization of retail price promotional strategies can result in price orientation among consumers, the approaches still maintain a good reputation of offering increased advantages when their executions are effective. As indicated by Ghosh (2017, 96), for retails, the formulation of clear and candid objectives can form a foundation for understanding the most efficient pricing strategies for a business and how they synchronize with other marketing implements such as adverts. Additionally, Peinkofer et al. (2015, 264) highlight that retailer should take time to think about how the different promotion pricing strategies impact their brand since in a significant number of situations, the discounting or free gift approaches might devalue a brand. Conversely, Yan (2010, 517) confirms that promotional pricing schemes with standard arrangements could act as strengths for retailers and provide them with practical information alluding to consumers’ purchasing conduct.
Consequently, given these variations and semantics concerning retail price promotional strategies. This research study focuses primarily on the influences of promotion pricing strategies among retail businesses. In the study, as evident from the current information, retailing is a crucial segment of the domestic, regional, and international economies, especially as a business context with increased potential for significant development. Therefore, the implementation of contemporary strategies aimed at instigating consistency and sustainability requires concrete information to apply in the decision-making processes (Keller et al., 2011, 23). Assertively, this research aims at making a positive contribution to the cause by conducting a comprehensive assessment of factors affecting the promotion pricing strategy without overlooking the need for key detail on retailing and price promotional approaches as models of modern marketing.
3. Research ProblemThe research will examine factors affecting retail price promotional strategy as a primary issue. Concerns about effective marketing and attainment ofprospected benefits through several promotional strategies have become a popular topic, not only among retailers but also larger businesses and organizations. As part of their sustainability and survival tactics, businesses have to plan and keep track of their promotional pricing strategies. Even so, there is so much more to the implementation of the retail price promotional strategies and business have to comprehend all the crucial aspects of prosperity. Today, these strategies have become a prevalent approach utilized by retailers from different parts of the world. However, there is limited understanding of the primary factors that affect the retail price promotional strategy.
4. Aims of the StudyThe study aims at establishing the varying factors that influence promotion pricing strategies among retailers. Primarily, the investigation directed in the research will focus on a detailed evaluation of the apparent corporate elements that correlate with or allude to the retail price promotional strategy. More so, by conducting the assessment, the study will act as the foundation for increased awareness among retailers, particularly on aspects they should consider when executing the different promotion pricing strategies for their products. The background of the research highlights that the implementation of retail price promotional strategies can be either successful or unsuccessful. Therefore, the investigation integrated into the research will be instrumental in the development of the promotion pricing approach utilized in the contemporary corporate world.
5. Research ObjectivesThe standard approach for following the aim of the study should entail the formulation of objectives. Consequently, for this study, certain major objectives have been developed. These are:
To identify various factors affecting retail price promotional strategy of Pick and Pay, Lesotho
To determine the effect of the established factors affect the implementation of promotion pricing among retailers of Pick and Pay in Lesotho
To identify the influential factors of promotion pricing that retailers should consider in the decision-making process for successful implementation
To determine which of the identified influential factors directly affect the consumers and the success of promotion pricing among retailers
To make recommendation to the management of Pick and Play on effective pricing promotion strategy
6. Research QuestionsThe formulation of the investigation questions alludes to the milieu of the aims and objectives.
Which factors affect the promotion pricing strategies utilized by retailers?
How can the identified influential factors affect the implementation of promotion pricing among retailers?
Which of the factors of promotion pricing should retailers consider in the decision-making process for successful implementation of their strategies?
Which of the identified influential factors directly affect the consumers and the success of promotion pricing among retailers?
What are the recommended pricing promotion strategy for management of Pick and Play retail shop in Lesotho?
7. The Significance of the StudyThis investigation will act as a turning point for retailers and other business through creating awareness on the influential factors of promotion pricing as a contemporary marketing strategy. Increased publications have affirmed that even with the promotion pricing strategies, the augment of sales among retailers requires comprehensive indulgence of the elements that influence the price and purchase promotion strategies (Peinkofer et al., 2015, 264). The information is significant for retailers, especially in helping them measure aspects such as price elasticity and the effect it has on the retailers’ sales volume. Still, the nature of the retail world entails an atmosphere where all the elements appear to be an influx (Guha et al., 2017, 84). However, through augmented awareness and understanding, the retailers can be in a principal position to develop, implement, and track the best promotional pricing strategies for their products and administration.
CHAPTER TWO8. LITERATURE REVIEW8.1 Promotion and Consumption
Guha et al. (2017, 77) stated that the primary query that emanates from the practice of implementing promotion pricing is whether the consumption responds to this strategies. Notably, extensive past research has fixated on the influence of promotion on business aspects such as brand switching, the number of sales and stock turnover with most of the documenting that promotion strategies implemented as part of marketing can make consumers move from brand to another in addition to making them purchase earlier and more frequently. Given the rivalries in the modern corporate world, businesses have been challenged to pay keen attention to consumers’ consumption decisions. Ataman et al. (2010, 867) note that this prevails as the best solution for establishing how the different promotion strategies influence the action of consumers.
Arguably, customary models of selection and decision cannot apply in countering the challenge since most of them make assumptions of constituent consumption rates over specific periods, as identified by Allender and Richards (2012, 326). More so, while such approaches and assumptions can be suitable for specific collections of products and administrations, they are not fitting for the modern retailing practices. In fact, Bogomolova et al. (2015, 4) state that the contemporary retailing, there is increased potential for promotion to stimulate consumption while simultaneously influencing consumer switches from brands to stock turnovers. Assertively, for retailing businesses with different consumption rates, it is essential to recognize the approachability of consumption to promotion as a metric for the efficiency of price promotional strategy in augmenting purchases.
Essentially, current literature on behavioral and economic hypotheses has been instrumental in providing auxiliary proof that the purchase of some products in retailing reacts to the different promotional strategies. For instance, in his study that utilized an analytical model, Ghosh (2017, 95) institutes that the paramount stock prices appeal to consumer prompting them to buy more products. Similarly, Bogomolova et al. (2015, 5) affirm that when consumers perceive an item or administration as extensively compatible, they will buy it more than its close substitutes. Additionally, there is extensive evidence indicating that perishability has a substantial impact on the consumption of a product. Still, Bogomolova et al. (2017, 193) highlight that stockpiling augments the purchase of products with high convenience as compared to those with limited expediency. Nonetheless, from the findings of his analytical study, Keller et al. (2011, 18) state that the decision to purchase a product is an endogenous choice that emanates from effective promotion strategies by businesses.
Conversely, there are increased publications with empirical analyses that focus on the promotion influence on the consumer when businesses use stockpiling to address the uncertainty apparent from their pricing strategies (Bogomolova et al., 2017, 5). Most of the literature agrees that consumers are prospective in nature. Typically, when making decisions on the products to purchase, the consumers formulate expectations of future prices of specific items, which they use in determining the time, type, and the number of products to purchase (Peinkofer et al., 2015, 265). Therefore, in retail promotion pricing, it is essential to consider the prospective behavior of consumers since ignorance of such influence could result in an under or over-approximation of promotion pliability.
8.2 Price Promotional Strategies and PreferencesIn retail price promotional strategies, the primary terminologies considered are the expected price and price promotion. Typically, Allender and Richards (2012, 328) are keen to note that prices used by consumers as a reference when making their purchase choices are mainly the amount the forecast as the amount they would pay before the purchase and sale event. In fact, some scholars and researchers have referred to the expected price as the ‘internal reference price,’ which is contrary to the extrinsic reference price that is suggested by manufacturers in their list price (Keller et al., 2011, 54). Furthermore, retailers consider a product to be on price promotion when they offer it to consumers with a temporary price decline. Moreover, the offering process mainly alludes to the different marketing approaches used to spread the information; it could be through advertisements on the television or the company’s website and social media platforms (Guha et al., 2017, 83; Ghosh, 2017, 97).
In the past, Yan (2010, 515) acknowledges that the theory of expected price has been exploited by retailers in providing an unconventional justification for the experiential negative long-term influence of promotional pricing for certain products. More so, past studies have indicated that consequential purchase probabilities of a product after a promotional strategy is implemented are lower as compared to the purchases that follow when a product is not under promotional pricing (Allender& Richards, 2012, 330). One of the theories that have been used in explaining the correlation between promotion pricing and the subsequent purchases has been the self-perception theory, particularly as an implement that can apply in determining whether the purchase of a product emanates from promotion price or aspects such as the long-term relationship with the brand. On the other hand, Bogomolova et al. (2015, 6) claim that when it comes to preferences, most customers construct prospects of a product’s price based on its past costs and the frequency of a retail implementing price promotional strategies. Essentially, the response of customers to a retail price could be dependent on how the cost equates to the price they presume to buy a certain product.
In detail, when retailers implement promotion pricing, they expect to experience significant gains and consumers to have a positive reaction. However, Guha et al. (2017, 89) note that the retraction of the price comes with a decrease in the gains and makes the consumers unlikely to buy the different products. In their efforts to explain the phenomenon of the price promotional strategies, Peinkofer et al. (2015, 267) provide an explicate that after the implementation of these approaches by retailers they eventually experience lower consequent purchases after consumers buy the products using the new prices. This inconsistency in purchases emanates from statistical aggregation and not actual declines in consumers’ potential to buy consumers as customary hypotheses state (Yan, 2010, 513). Normally, the promotion appeals to increased customers who would not have bought the product if there were no price cuts. Consequently, during the subsequent event of a purchase, the limited potential of these customers negatively affects the normal repurchase rate that the retailers realize during the promotion period.
Guha et al. (2017, 87) note that due to the contemporary trend, the pricing promotion strategies may be subject to perfect anticipation among customers, which will most likely affect the influence on customer reaction, especially when compared to scenarios where retailers use them as a price. Consequently, the promotion pricing strategies by retailers should use practical planning as the foundation. Bogomolova et al. (2017, 8) suggest that retailers need to conduct an assessment of the trade-off between the sales gain from the promotion pricing period and the negative influences on the future purchases because of customers formulating cost and promotion prospects. Resolutely, the overall process demands comprehensive data on how price promotions could affect the retailers, especially on the different ways that promotion pricing affects the formulation of consumer expectations based on the dissimilar conditions of the market.
In their study, Ataman et al. (2010, 871) note that price promotional strategies have become popular over the years with multiple types of research and analyses documenting their influence on different brands and products. According to their understanding, the promotion pricing approach normally cuts the cost of a specific product or administration. More so, in some cases, it augments the quantity of a product but as the same price, which technically offers the consumers discounts (Peinkofer et al., 2015, 268). Nonetheless, in the situation where the customers relate the promotions to the inferiority of the product quality, then some brands and retailers might experience adverse effects since the strategy will fail to achieve the prospected increase in purchases. Eventually, the retailers will fail to produce their economic incentive (Keller et al., 2011, 38). Therefore, when it comes to promotion pricing, there are increased factors that retailers ought to consider and allude to when making decisions, especially aspects such as the stature of a brand and the likely response from the target population.
Ghosh (2017, 99) understands that in some economic situations the motive for promotional pricing is encouraging trials and creating appeal for people that do not purchase or use specific items and administrations. Therefore, understanding the influences of promotions is significant for retailers, particularly the assessments made by customers that have not purchased the subject products and services being subject to price cuts (Guha et al., 2017, 84). On the other hand, these promotions are based on introducing new products in addition to those that have been in the market for a while but target nonusers of a specific brand. Still, Yan (2010, 513) highlights that some pricing promotions can result in damages to the brand, which causes undercuts in their economic and psychological incentives aimed for supply causing a reduction in the potential for new consumer trials. Additionally, in situations when consumers purchase a product for the first time due to the promotion pricing, their likelihood to buy it again after the campaign ends remains very low.
8.3 The Effects of Retail Price Promotional StrategiesMost of the retailers today comprehend that brand knowledge acts at the foundation for brand equity. Therefore, Keller et al. (2010, 78) state that given the nature of promotion pricing, any likelihood of associating with a brand may influence its equity, especially when it alters its psychological representation. In fact, this applies to all the different perceptions and information that consumers have in their minds. Similar to promotion pricing, most of the likely encounters are initiated from marketing and communication implements utilized by retailers. Ghosh (2017, 98) notes that promotion pricing has become among the popular implements utilized and can easily corrode brand equity. The potential for promotion pricing to erode the equity of brand emanates from their nature that mostly focuses on enhancing short-term performance by advocating for instant purchase and switching of brands among consumers (Bogomolova et al., 2017, 48). Additionally, the approach of retail price promotional strategy could instigate a bad reputation for the image of a certain brand.
Evidently, these outcomes align with the model that has prompted most of the studies conducted on retail price promotional strategy. Among the primary characteristics of the model is the fact that most the research has focused on assessing the expediency of utilizing promotion pricing rather than evaluating the advantages it has to the customer (Allender& Richards, 2012, 334). On the other hand, as one of the advantages that motivates the utilization of pricing promotion among retailers, it is apparent that the approaches prevail as implements that have an effective impact on the conduct of consumers (Grewal et al., 2011, 48). Typically, most retailers think that the price cuts and relative monetary savings are the primary benefits that prompt the customers to react to the price promotional strategies.
Nonetheless, several of the recent studies have utilized models that focus on consumers as the standard approach for establishing how the retail price promotional strategies influence the customers. According to Guha et al. (2017, 86), as part of the contemporary marketing communications utilized by retailers, promotion pricing has cognitive and emotional effects in addition to providing the customers with several hedonic and practical advantages. The experience instigated by retail price promotional strategies has a positive correlation with brand knowledge. The properties, advantages, perceptions, sentiments, and encounters, among other aspects that allude to the information of a brand, can be easily subjected to change and relative influences as a result of the promotion pricing. However, Yan (2010, 517) is keen to note that the experience from the retail price promotional strategies can alter the number of associations instigated about a product since the campaigns have exceptional power for enhancing brand association among consumers.
Comparably, as a result of the promotion pricing, Allender and Richards (2012, 337) note that it can produce satisfactory relationships if the subject products and administrations appeal to the customers and that the components they come into contact with successfully convey the subsidiary price promotional strategy implemented by a retailer. Typically, in support of this hypothesis, Grewal et al. (2011, 51) state that the value of promotion pricing on retailers strongly relates to the advantages it has for the customers. Additionally, Guha et al. (2017, 98) add that the promotion pricing can formulate evocative facts of dissimilarity to the unique associations instigated by a retailer, especially if they do not attribute their price promotional strategy to other brands. More so, this still prevails if the campaign does not seem as a nonspecific preferment of a certain collection of products or services.
8.4 Apparent Gaps in Literature and ConclusionThe review of literature clearly indicates that retail price promotional strategies aim at directly influencing the conduct of a buyer (Peinkofer et al., 2015, 267). However, this implication only lasts for a short time. Moreover, it is apparent that all elements of communication by a retailer have some level of influence on their image. Consequently, any retailing business that has acknowledged the significance of using strategic decision-making approach understands that there are so much more things to consider during promotion pricing campaigns (Bogomolova et al., 2017, 192; Guha et al., 2017, 84). In fact, a significant number of the literature reviewed states that such recognition acts as the foundation for using the campaigns for more results than the short-term effects. When it comes to the growth of a business, the retail price promotional strategies have been customarily associated with adverse long-term effects because its nature alludes to predominant price orientation (Ataman et al., 2010, 872). Even so, as depicted from the review of the literature, such hypotheses and models of research for promotion pricing have overlooked the collective scope of retail price promotional strategies as critical aspects of development, marketing, and communications.
Secondly, based on the contemporary developments in the corporate world, a strategic marketing communications arrangement should accurately explicate aspects of promotion pricing. These include goals, the target population, and positioning as factors that assist retailers in making practical decisions regarding the best price promotional strategy and the individual components of specific initiatives (Grewal et al., 2011, 48; Peinkofer et al., 2015, 270). For instance, a retailing business positioned as cost-efficient could look forward to incorporating the value-increasing approaches, while a bigger organization would focus on more brand-building techniques as the primary goal of their promotion campaigns. Essentially, the integration of enhanced planning in the promotion pricing process built on a comprehensive analysis of the factors that affect the different methods will assist a retailing business to achieve premium positioning with innovative forms, which does not depend on the costs cut that are the core of most price promotional strategies (Guha et al., 2017, 84).
Among the consistent factors identified from most of the studies is that the integration of promotion pricing in a marketing communications plan instigates the reinforcement of different messages without any consideration of the channel or implements utilized. The different promotion methods utilized can be interconnected, for example, some retailers utilize TV and social media advertisements to spread the word about their promotion pricing or as it has been a trend, the exploitation of competition to augment the association between retailing businesses and the public (Grewal et al., 2011, 49; Allender& Richards, 2012, 334). Consequently, through the comprehension of factors affecting retail price promotional strategy, retailers can realize synergy between the different approaches with limited complexities. Additionally, the primary challenge for retailers should not be on how to balance funds allocation between advertising and promotion pricing, but about to comprehend the factors influencing their promotion campaigns for sufficient knowledge that will assist in better connection of the methods.
Finally, another gap that has emerged from the literature is whether advertising can affect a retail price promotional strategy and whether that they can both influence the image. All the aspects need empirical answers (Guha et al., 2017, 104; Bogomolova et al., 2017, 197). However, given the current corporate practices, it is clear that retailers cannot evade retail price promotional strategies as part of their campaigns, especially due to the aspects of augmented competitiveness and increased pressure from consumers. Nonetheless, the promotion pricing practices can be utilized as elements that have extensive evidence to effective in improving the business image, and they should prevail if the retailers have premium positioning. The incorporation of promotion pricing in retailing, given its attributes and potential, can result in increased complexities for the long-term (Guha et al., 2017, 85). More so, the modern-day retailing businesses do not have an option but to utilize such campaigns. Decisively, an investigation into the factors influencing retail price promotional strategy is the key to most of the gaps established from past literature. Still, it is the foundation needed by retailers for the skillful exploitation of the price promotional strategies.
9.0 RESEARCH DESIGN AND METHODOLOGY9.1 Rationale for MethodologyThe value of a study diminishes when some of the significant aspects are overlooked during the research process. Consequently, it is essential to conduct a comprehensive research based on definitions and explications of the management approach utilized for a project. Thus, this chapter describes the different components and their significance in the adaptation of a specific methodological approach. Essentially, the research process will utilize project lifecycle phases in ensuring that are the important details in every stage are subject to careful thought and comprehensive conceptualizations up to the final phases that determine successful accomplishment.
9.2 Research PhilosophyResearch philosophy alludes to a conviction on the different ways that data collection, analysis, and application should be conducted. Some of the major research philosophies that prevail in the contemporary research include positivist and phenomenological.
Positivists acknowledge the stability of reality thus it can be subject to observation and description based on a hypothesis that uses objective and without interference of the phenomena under scrutiny (Johnson, 2018). One of the advantages of the positivist philosophy is that it uses quantitative information, which is a positive influence on its reliability as an approach that can apply in the formulation of scientific assumptions. Second, it follows a well-defined structure based on set rules and principle thus minimizing any gaps for error. However, as a disadvantage, there is increased dependence on human behavior based on the belief that objective inferences and conclusions can be realized given that the observer is objective (Johnson, 2018). Even so, emotional responses are prevalent and despite the disregard for them, there lacks a guarantee that they will not have any impact.
On the other hand, the realm of phenomenology focuses on the investigation of frameworks of experience (Padilla-Díaz, 2015, 106). Therefore, the phenomenological research philosophy scrutinizes the advents of things or entities as they appear to human experience thus the connotations they have to people’s experiences (CIRT, 2017). Evidently, a primary strength of phenomenology is that focuses on finding the universal nature of an experience making it crucial for a deeper understanding. Still, the results of this research philosophy can help in exposing any apparent misconceptions on a certain subject. Nonetheless, it requires the respondents and participants to accurately articulate their thoughts and emotions concerning an experience. Additionally, the results do not have standard statistical reliability.
Therefore, for this research, the phenomenological approach will apply given its focus on the descriptions of the retailer’s experiences making it easier to label and define apparent themes based on the acquired information.
9.3 Research DesignThe research design is the collective strategy selected for integration into the dissimilar modules of the research using a practical and rational approach (Marshall & Rossman, 2018, 29). It ensures effective addressing of the research problem through the utilization of a blueprint that covers the gathering, measurement, and scrutiny of the information. Some of the types of research design include descriptive, exploratory, and casual.
Descriptive research applies in the description of the attributes of the population under scrutiny. It attempts to evaluate and explicate information the discovered information (Creswell & Creswell, 2017, 24).
Exploratory research focuses on the research problem given the deficiency of past studies for reliance upon in the prediction of outcomes (Fluid Surveys, 2014). This approach focuses on acquiring general information on the subject rather than formulating final conclusions
Casual research is quantitative in nature and uses predefined arrangements and structure. It mainly focuses on explaining the cause and impact of existing relationships between variables.
Consequently, the research approach utilized for this study will be both descriptive and exploratory with a primary focus on the acquisition of insights and comprehension for further scrutiny of the research subject. The reason behind utilizing this approach is the persistency displayed by both approaches in being thorough and eliminating apparent barriers to the acquisition of information.
In this research, the descriptive and exploratory designs will act as the blueprint for directing the study with optimal control over factors that might act as interference for the validity of the discoveries. It will be an arrangement that defines the approaches used in data collection, the source of information, and the methods used for analysis (Marshall & Rossman, 2014, 68). It will collectively focus on answering the research questions and realizing the predefined object. Consequently, the primary focus will be investigating the factors that affect retail price promotional strategies. Therefore, the research will incorporate an investigation system that will rely on the effect of the instruments used in data collection and analysis of findings.
The investigation will utilize information that meets the principles of a qualitative methodology where I will acquire both primary and secondary data from an investigation that will aim at delivering data on the influences affecting retail price promotional strategies (Marshall & Rossman, 2014, 69). The research tool that will be utilized in conducting the investigation will be questionnaires and interviews. The philosophies and properties of the research design will assist in the comprehension and documentation of the strategies and guidelines used by retail businesses as a necessity for understanding the factors that affect their price promotional strategies (Marshall & Rossman, 2014, 59; Saunders et al., 2009, 118).
9.4 Research ApproachThe research approach is the strategy and process that comprises of the steps of the extensive assumptions alluding to comprehensive technique of data collection, examination, and elucidation (Saunders et al., 2009, 112). Therefore, the research approach should focus on the context of the subject problem of investigation. Additionally, there are two primary types of research approaches that define the method of data collection and analysis of information, that is, qualitative and quantitative. Notably, both types of research approaches serve varying purposes all aimed at the successful completion of the research. Firstly, qualitative research approach utilizes extensive description where the researchers acquire information through techniques such as interviews, surveys, or observation (Saunders et al., 2009, 113). More so, the analysis of the acquired information also utilizes qualitative methods.
Secondly, quantitative research is based on the utilization of the statistics and involves a detailed utilization of numbers, particularly for research problems that can be addressed using statistics and numbers (Marshall & Rossman, 2014, 29). Comparably, researchers engage in experiments, surveys, and relative data collection methods that provide the statistics and numbers while analysis is completed with statistical methods for accurate and clerical results. Resolutely, this study utilizes qualitative approach given the context of the research problem and the source of information.
9.5 Sampling StrategySampling is the process or approach utilized in selecting the preferred proportion of participants from the target population (Marshall & Rossman, 2014, 82). The selection of sampling strategy is crucial for the successful completion of the research. Failure to select the right proportion of the can result in inaccurate results and substandard conclusions.
9.5.1 Types of Sampling In the application of sampling, varying types and approaches can be used depending on variables such as the nature of the target population, the quality of information required, among others (Palinkas et al., 2015, 537; Marshall & Rossman, 2014, 84). The two most common classifications of sampling are probability and non-probability sampling.
9.5.1.1 Probability SamplingProbability sampling refers to a technique that involves giving every member of target population to be subject to selection as a representative (Penn State, 2018). Under this type of sampling, it is probable to establish the sample that each unit belongs to and the chances of selection for each sample. Some of the techniques utilized for probability sampling include stratified sampling, simple random sampling, cluster sampling, systematic sampling, and multistage sampling (an amalgamation of different methods).
Stratified Sampling – is a form of random sampling that entails splitting respondents into mutually exclusive gatherings after which the researchers choose participants from the different groups
Simple Random Sampling – entails giving numbers to subjects and using a random number generator to choose the participants based on the numbers they have (Penn State, 2018).
Cluster Sampling – another form of random sampling where the participants are selected from a large list of random sampling
Systematic Sampling – random sampling that uses a pattern such as selecting the subjects that fall on certain number, e.g. the tenth person in every group
Multi-Stage random sampling – involves the selection of subjects through a combination of several techniques
9.5.1.2 Non-Probability SamplingNon-probability sampling alludes to the approach where there is no criterion or knowledge on the individual that will be selected as part of the sample. The different methods of non-probability sampling base on human selection as opposed to random selection (Explorable, 2017). However, statistical theory does not explicate how the might respond and the probable sources of prejudice are fecund thus require a standard approach based on increased control from the research. Some types of non-probability sampling include:
Convenience Sampling – the researcher selects subjects that are accessible or easy to recruit (Etikan & Alkassim, 2016, 3)
Consecutive Sampling – similar to convenience sampling but uses all accessible subjects making samples have better representation (Explorable, 2017)
Quota Sampling – the researcher ensures proportionate representation of all groups in the sample based on certain trait (quota)
Judgmental Sampling – the researcher purposely selects some subjects based on the belief that they are fitter compared to others
Snowball Sampling – applies when the population size is small and the researcher asks subjects to choose others that qualify for the research
9.5.1.3 Types of Sampling to Apply for the StudyEssentially, specific to this investigation, the sampling will be both non-probable and purposive. Knowledge on the subject will apply in the selection of the best participants for the research. Typically, the information on retail price promotional strategy will apply in the making verdicts on the best subjects to choose for the investigation ((Etikan & Alkassim, 2016, 2). The sample population will be selected from different retailers with varying members of the management team acting as representatives of the company in their participation in the research. The method is preferable since it will save time and result in limited complexities when selecting the individuals to utilize as representatives. Moreover, the approach will help in the maintenance of a population sample that aligns with the objectivity of the study (Saunders et al., 2009, 124). It is expected that this type of sampling will enable the research instruments and design to be formulated based on a primary consideration of the objectives. The carefully chosen sample will provide information representing the larger population of retailing businesses.
9.6 Target PopulationThe target population refers to an overall group of people that are of interest for the research (Saunders et al., 2009, 119). Typically, it is from the target population that researchers draw the sample and representatives to provide information on behalf of the whole group. In this research, the target population will be retailers working in Pick and Pay Shops in Lesotho.
9.7 Sample SizeThe sample size is the number of the subjects or representatives selected for statistical settings such as an academic experiment or survey (Malterud et al., 2016, 1754). Similar to other comparable studies, the sample size will be a factor of consideration and the primary focus will be making it an instrumental factor in augmenting the quality of the study. However, during this stage of the investigation, no formal guidelines will apply in establishing the sample size since the subject research is qualitative in nature (Saunders et al., 2009, 121). Moreover, a criterion will apply in the decision on the participants to include in the investigation. Therefore, the sample size will be open to change and type towards the commencement of the study. Sampling will go on until saturation is achieved, that is, until the point where, as the researcher, I will see that no new discoveries are being realized. The targeted sample size will be a minimum of 20 individuals.
9.8 Pilot StudyA pilot study is the small scale research conducted as part of the preliminaries and aims at evaluating crucial aspects of the collective research. These factors include the feasibility, time, expenses, and adverse activities among others. As a result, the information is utilized in the improvement of the design before the research conducts the complete research. Undoubtedly, a pilot study will be conducted for this research and the data collected on the retailers and the environment will apply in reviewing the final research design for better findings and conclusions.
9.9 Data Collection InstrumentsData collection instruments are techniques and devices used in gathering information. Some of the common data collection instruments include questionnaires, interviews, surveys, observation, focus groups, and literature searches (Marshall & Rossman, 2014, 74). For this study, the instruments used are questionnaires, interviews, and literature search.
9.9.1 Primary DataThe collection of the primary data will be based on the utilization of open-ended questions and interviews where the participants will strive to respond to the various questions based on their comprehension of retail price promotional strategy (Leggett et al., 2016). As aforementioned earlier, the participants of the investigation will be individuals with increased experience in the retailing business since the research will look to exploit the data collection instruments in the acquisition of extensive insight. Still, the participants will be a sample of the greater scope of the retailers operating in different regions, and that recognize the importance of retail price promotional strategy. Most of the processes used in acquiring information will utilize the internet where I will exploit the features and implements of platforms such as Skype to conduct face-to-face interviews using queries formulated in the questionnaire. On the other hand, I acknowledge that some participants might be willing to contribute to the investigation but will not be able to sit down for the interviews. Therefore, the questionnaires will be sent through the e-mail with an attached request for them to send them back after the filling process. Additionally, for precaution purposes and maintenance of the research’s validity, the population sample will be subject to a vetting process that will apply in the determination of their positions and experience in the retailing business. Technically, this will act as a deterrent to make sure the participants provide credible and practical information when responding to the questionnaires developed by the research team.
9.9.2 Secondary DataGathering secondary data will entail directing a comparative evaluation of a plethora of literature, that is, from articles, books, journals, and relative peer-reviewed and scholarly sources. Saunders, Lewis, and Thornhill (2009, 128) highlight that data gathered from peer-reviewed sources has a pool of credible study findings that can be subject to comparative analysis for the supplement and understanding of other studies based on investigating a specific subject. Therefore, in attempt to exploit this notion, then I will acquire varying materials from the libraries and databases that contain peer-reviewed journals and scholarly articles. Essentially, the University’s library will be instrumental in the investigation given it contribution as the platform through which most of the secondary sources to be utilized in the investigation. More so, the selection of databases to apply on the internet will be sternly those that contain information on retail price promotional strategies. Even so, the use of information in the investigation will depend on the predefined foundation, that is, it will focus on exploiting the main objectives and research questions of the study. Resolutely, the main fixation of the selection process will focus on the stern application of peer-reviewed articles and journals since they will give helpful information on the factors affecting retail price promotional strategy.
9.9.3 Qualitative Research InstrumentA qualitative research instrument is a measurement implement developed for the acquisition of information concerning a certain subject or issue from varying sources. The four common qualitative research instruments include interviews, questionnaires, review of documents, and observations (Marshall & Rossman, 2014). Qualitative research instruments are coupled with frameworks that apply in determining and guiding the context of gathering information. In the subject research, in addition to utilizing questionnaires, interviews, and secondary sources as the research instruments, there will be planning and a pilot-test as the preliminary activities of the study.
9.9.4 Quantitative Research InstrumentComparably, quantitative research instruments apply in data collection and the most commonly utilized are questionnaires and tests. However, the type of data gathered using quantitative research instruments differs from that of qualitative research. Since quantitative research is based on customary scientific methods, the instruments utilized generate numerical data and focuses on identifying any association between variables. In the research, quantitative research instruments will not be utilized due to the complex nature of the collective methodology. Questionnaires will be utilized given their convenience and allowance for the subjects to take time while providing responses (Leggett et al., 2016).
9.9.5 Data AnalysisData analysis entails processes that allude to the inspection, cleansing, transformation, and modelling of the collected information in attempt to discover applicable insight, suggestive deductions, and support arguments and decisions (Saunders et al., 2009, 127). The data analysis of this research will utilize the principles and hypothesis of the thematic approach where the research will look to identify apparent patterns and themes in the data collected.
9.9.6 Reliability and ValidityIn research, the reliability and validity aspects focus on the attainment of accuracy and cogency of the instruments or implements utilized in the collection of data (Dikko, 2016, 526). Therefore, the research’s efforts to incorporate methodological strategies for ensuring the reliability and validity will include ensuring accountability for individual biases encountered when conducting the interviews and filling the questionnaires (Bolarinwa, 2015, 195). Additionally, there will be meticulous keeping of records, demonstration of a clear decisions trail, and guarantee that data interpretation is both consistent and transparent.
9.9.7 Limitations of the StudyIn research, the limitations prevail as elements that are out of the researcher’s control, which could be shortcomings, conditions, or influences that restrict the methodology or deductions. Some of the limitations expected to prevail during the research process include increased time-consumption, lack of result verification due to the increased control that the participants have over the information, and demand for a labor intensive approach instigated by the need to categorize and recode information among other processes.
10. Ethical ConsiderationsIn research, the ethical considerations are the moral standards that I as the researcher, should focus on during the different process and practices of the investigation. Consequently, as the significant aspect of the overall ethical procedure, three principles will apply in an effort to conduct ethical study, including beneficence, respect for human dignity, and justice (Saunders et al., 2009).
Informed Consent and Search for Approval
Firstly, the researchers will provide informed consent by signing confidentiality documents that they will receive before any proceedings of the investigation. Secondly, the researchers will seek approval for conducting the investigation from the university. The permission will be acquired from the ethics committee after proofing that the research does not aim to invoke any issues.
Assure no Harm
Still, the principle of beneficence will focus on ensuring that the research will not cause any form of harm, which will include refraining from exploiting the respondents. Still, a risk to benefit ratio will be observed by ensuring that the investigation primarily makes positive contributions as compared to putting the stakeholders at risk.
Self-Determination and Full Disclosure
Thirdly, the principle of human dignity will focus on ensuring the participants exploit their right to self-determination and full disclosure. On the other hand, the participants will not be coerced into contributing to the study and will include a full explanation of the nature of the study as part of the preliminary agreements (Marshall & Rossman, 2014, 103). Finally, the principle of justice will focus on treating the participants fairly and maintain privacy through anonymity and confidentiality. Still, other additional precautions that will be utilized in maintaining confidentiality will include locking the list of respondents’ names, transcriptions, and notes in a safe place, separating names from recordings and transcriptions, and not attaching names to transcriptions and notes.
11. Chapter OrganizationThe presentation of information concerning the investigation through the dissertation structure will follow a specific structure. Primarily, it will have six distinct sections that will focus on varying aspects.
Chapter One – Introduction: The first chapter will be the introduction and will act as the foundation for the investigation. It will provide both general and specific data concerning retail price promotional strategies. Therefore, the factors covered in the introduction will be the background of the study, objectives of the research, aims and objectives, significance and justification of the investigation.
Chapter Two – Literature Review: The second chapter will focus on a review of the literature on the subject matter and will mainly fixate on the relevant data as identified through the utilization of a formulated criterion for selection.
Chapter Three – Research Methodology: The third chapter will be on the methodology of the study and will provide foundation, design, and instruments applied in gathering data and analyzing it. Still, the limitations and ethical considerations will be part of this chapter.
Chapter four – Result Analysis and Interpretation of Findings: This chapter will be an analysis of the acquired information, arrangement of findings and deliberations emanating from practical dissemination of the data collected relative to the objectives of the research.
Chapter Five – Conclusion and Recommendation: Lastly, chapter five will be a summary of the findings, conclusions, and recommendations based on the discoveries of the investigation.
12. Proposed Timetable
The table below is an indication of the overall timeline and processes of the investigation starting from the formulation of the research proposal to formulating the thesis and reviewing it keenly for submission. The proposed timetable begins for the month of April 2018 to September 2018 when the investigation will have been completed.
Activities/ Weeks 2018
(April to September)
 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
                                                 
Research proposal                                                
Literature review                                                
Preliminary Desk Study                                                
Preliminary research                                                
Confirmation period                                                
                                                 
Study 1                                                
a. Desk Study                                                
b. Formulation of Questionnaires                                                
                                                 
Study 2                                                
a. Interviews                                                
b. Questionnaires                                                
                                                 
Stage 3                                                
a. Data Analysis                                                
                                                 
Thesis writing                                                
Pre-completion Review                                                
Thesis submission                                                
                                                 
References
Allender, W. J., & Richards, T. J., 2012. Brand loyalty and price promotion strategies: an empirical analysis. Journal of Retailing, 88(3), 323-342.
Ataman, M.B., Van Heerde, H.J. and Mela, C.F., 2010. The long-term effect of marketing strategy on brand sales. Journal of Marketing Research, 47(5), pp.866-882.
Bogomolova, S., Dunn, S., Trinh, G., Taylor, J. and Volpe, R.J., 2015. Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda. Journal of Retailing and Consumer Services, 25, pp.1-11.
Bogomolova, S., Szabo, M. and Kennedy, R., 2017. Retailers’ and manufacturers’ price-promotion decisions: Intuitive or evidence-based? Journal of Business Research, 76, pp.189-200.
Bolarinwa, O.A., 2015. Principles and methods of validity and reliability testing of questionnaires used in social and health science researches. Nigerian Postgraduate Medical Journal, 22(4), p.195.
Center for Innovation in Research and Teaching (CIRT)., 2017. Strengths and Limitations of Phenomenology. Grand Canyon University. Available at: https://cirt.gcu.edu/research/developmentresources/research_ready/phenomenology/strengths_limits [Accessed 11 July 2018]
Creswell, J.W. and Creswell, J.D., 2017. Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Dikko, M., 2016. Establishing construct validity and reliability: Pilot testing of a qualitative interview for research in Takaful (Islamic insurance). The Qualitative Report, 21(3), pp.521-528.
Etikan, I., Musa, S.A. and Alkassim, R.S., 2016. Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), pp.1-4.
Explorable., 2017. Non-Probability Sampling. Available at: https://explorable.com/non-probability-sampling [Accessed 11 July 2018]
Fluid Surveys., 2014. Types of Survey Research. Fluid Surveys University. Available at: http://fluidsurveys.com/university/3-types-survey-research-use-can-benefit-organization/ [Accessed 11 July 2018]
Ghosh, A. K., 2017. The influence of price and promotion on package size propensity. American Journal of Business, 32(2), 93-103.
Grewal, D., Ailawadi, K.L., Gauri, D., Hall, K., Kopalle, P. and Robertson, J.R., 2011. Innovations in retail pricing and promotions. Journal of Retailing, 87, pp.S43-S52.
Guha, A., Biswas, A., Grewal, D., Verma, S., Banerjee, S. and Nordfält, J., 2017. Reframing the Discount with a Comparison to the Sale Price: Does It Make the Discount More Attractive? Journal of Marketing Research, 4(1), 76-105
Johnson, S., 2018. Advantages and Disadvantages of Positivism. Classroom. Available at: https://classroom.synonym.com/advantages-disadvantages-positivism-12088541.html [Accessed 11 July 2018]
Keller, K.L., Parameswaran, M.G. and Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.
Leggett, L.E., Khadaroo, R.G., Holroyd-Leduc, J., Lorenzetti, D.L., Hanson, H., Wagg, A., Padwal, R. and Clement, F., 2016. Measuring resource utilization: a systematic review of validated self-reported questionnaires. Medicine, 95(10).
Malterud, K., Siersma, V.D. and Guassora, A.D., 2016. Sample size in qualitative interview studies: guided by information power. Qualitative health research, 26(13), pp.1753-1760.
Marshall, C. and Rossman, G.B., 2014. Designing qualitative research. Sage publications.
Padilla-Díaz, M., 2015. Phenomenology in educational qualitative research: Philosophy as science or philosophical science. International Journal of Educational Excellence, 1(2), pp.101-110.
Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K., 2015. Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), pp.533-544.
Peinkofer, S.T., Esper, T.L., Smith, R.J. and Williams, B.D., 2015. Assessing the impact of price promotions on consumer response to online stock-outs. Journal of Business Logistics, 36(3), pp.260-272.
Penn State., 2018. Simple Random Sampling and Other Sampling Methods. Eberly College of Science. Available at: https://onlinecourses.science.psu.edu/stat100/node/18/ [Accessed 11 July 2018]
Saunders, M., Lewis, P., and Thornhill, A., 2009. Understanding research philosophies and approaches. Research methods for business students, 4, pp.106-135.
Yan, R., 2010. Cooperative advertising, pricing strategy and firm performance in the e-marketing age. Journal of the Academy of Marketing Science, 38(4), pp.510-519.
14. AppendicesAppendix A: Questionnaire
The questionnaire derives its background from the better understanding of the objectives of the study. It seeks to provide relevant guidance to the researcher on the questions and attributes that would ensure appropriate questions are asked to help meet the objectives of the study. Kindly note that the research will maintain utmost confidentiality in the exercise. It is also essential to note that the participants will remain anonymous and that the data collected will only be used for the research purpose and not any other. The study will be guided by the following sets of questions:
Tick where appropriate
Before taking part in the exercise, kindly confirm the first question first
Section A: Demographics
What is your gender?
Female
Male
What is your role in the organization?
How long have you worked in the organization
Do you understand the concept of pricing strategies?
Does your organization rely on pricing strategies to influence customer retention?
a) Yes
b) No
If the answer above is yes, please proceed to the rest of the questions. If you answered “no”, for the above, kindly stop with the exercise. We value your commitment to take part in the survey.
1. What is your age?
a) 21-30 years [ ]
b) 31-40 years [ ]
c) 41-50 years [ ]
d) 51 and above years
2. What is your serving capacity?
Board of directors
Management
Marketing team
HR team
IT department
Finance department
Section B: Brand Identity and Consumer Value
3. Do you think the brand’s identity adds value to customers?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
Justify your response above
improved customer satisfaction
Brand awareness
Improved products and services
Relatively affordable products
Employee support
Quality services
Section C: Pricing Strategy and Consumer Retention
4. Do you think the pricing strategy has an impact to the organization’s customer retention strategy?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
5. Do you think the company’s ability to retain clients is dependent on the pricing strategies use?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
6. Do you think the pricing strategies have an impact on the client satisfaction?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
7. Should firms rely on pricing strategies to influence customer retention?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
8. Which retail price promotion strategies does the company utilize?
Trade promotions
Loss leader pricing
Special events pricing
Point of sale discounts
Special customer pricing
On the spot discounts
9. What factors of pricing promotion should be considered during decision-making processes to make pricing strategies successful?
Traffic and market demand
Increased perception of value/Brand strategy
Retention rate and loyalty
Competition
Cost of goods sold
10. Does customer opinion affect pricing strategies in the organization?
a) Yes
b) No
c) I don’t know
d) Sometimes
e) Always
11. Does the organization solely rely on pricing strategies to influence the retention of its clients?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
12. Do you believe that adhering to the customer retention strategies helps to minimize customer loses?
a) Agree
b) Strongly agree
c) Not sure
d) Disagree
e) Strongly Disagree
I wish to thank you for taking part in the above exercise. The outcomes will be useful in formulating relevant opinions regarding price promotional strategies and thus customer retention
Appendix b: Cover letter
P.O BOX 11734
Maseru 100
2nd May, 2018
The General Manager
Pick and Pay Lesotho
MASERU 100
RE: REQUEST FOR PERMISSION TO CONDUCT RESEARCH STUDY AT PICK AND PAY LESOTHO
Dear Sir/Madam
I hereby request permission to conduct research on the factors affecting retail price promotional strategy. The research is a requirement for Master’s Degree in Business Administration of which I have engaged or enrolled in. This study will be used for the abovementioned purpose only.
Therefore, I hereby request the organization permission to conduct the research.
I will ensure that, there is no physical, psychological, emotional embarrassment or any harm to all concerned and to ensure that individuals and organization remains anonymous and data confidentiality is maintained.
Your usual corporation and assistance will be highly appreciated.
Yours sincerely
MirriamRatsiu

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