BA Honours Business

University of the West of Scotland

Paisley Campus

Service Quality In The Retail Industry, Comparison

Between Marks And Spencer And Next

April 2015

Author: Samantha Rae

I certify that all material in this dissertation which is not my own is duly

acknowledged. I have read and understand the section in the

programme handbook dealing with plagiarism.

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HONOURS DISSERTATIONS

SESSION 2014/2015 Business School

Library Registration

Surname Rae

Forenames Samantha

Banner ID B00230937

Degree Title

(e.g. BA Management)

BA Business

Dissertation Supervisor Eileen Henderson

Dissertation Title Service quality in the retail industry, comparison between Marks and Spencer and Next.

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Abstract The retail industry is forever changing, with competition increasing and customers

now requiring more for their money, retail stores now need to create innovative

ways to entice customers in. Many have been turning to the service aspect in order

to do so therefore service quality and service marketing is increasingly important.

The retail high street is no longer the place to shop with vast amounts of individuals

turning to online shopping, the advancements in technology are changing many

aspects of 21st century life and retail is being heavily impacted. Marks and Spencer

and Next, two high street giants with a large internet presence have been select for

primary research as the secondary research highlighted some key changes the

companies are currently experiencing due to the advancements in technology and

increasing service industry. Key theories relevant to the service industry online have

been assessed throughout and applied to the interview questions for the primary

research. Theories such as the E-SERVQUAL model, Gap Model and Extended

marketing mix have been applied. The primary research used an interpretivism

qualitative approach through in-depth interviews with a number of respondents who

fit the sample. The sample chosen was females ages 30-34 and 44-60 who were

users and non-users of online shopping for both Marks and Spencer and Next, the

demographics of the retail industry allowed for sufficient sample selection. Overall

the findings resulted in some key factors being highlighted; both organisations have

recommendations to improve their online presence in some manner however

currently Marks and Spencer have a lot more to do that Next. In addition some

general recommendations for the retail industry have been created such as

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attempting to remain consistent throughout their service delivery which the models

above provide relevant backing.

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AcknowledgementsThe writing of this dissertation has been one of the most significant academic

challenges I have had to face to date. Without the help, support, patience and

guidance, this dissertation would not have been completed. It is for such help that I

would like to express my deepest gratitude to the following people.

Too Eileen Henderson, for the excellent guidance and patience I have

received and for helping to inspire me to continue on when it seemed

impossible. For her wisdom, knowledge and commitment to the project I will

be eternally grateful for.

My mother Susan Rae who has continued to motivate myself throughout the

tough days and has helped in so many ways not possible to mention.

My friends, university and personal who have continued to make me smile

though out this experience.

Dougie Martin, for all his academic wisdom and continually help and

guidance throughout all of university.

All of my interview respondents who took the time to answer and engage in

my interviews, without their help the results would not have been possible.

This dissertation is dedicated to Barry Limbert and Susan Rae.

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The copyright of this dissertation rests with the author. No quotation from it should

be published without her prior written consent and information derived from it

should be acknowledged.

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ContentsChapter 1 – Introduction..........................................................................................................1

1.1 Topic Introduction...........................................................................................................1

1.2 The aim...........................................................................................................................3

1.3 Research Objectives........................................................................................................3

1.4 Overview of the Chapters...............................................................................................4

Chapter 2- Literature Review and Background to Market........................................................5

2.1Market size and forecast of the retail industry................................................................5

2.2 Factors that influence retail spending power.................................................................7

2.3 Key Players in the market.............................................................................................12

2.4 Advancing Technology..................................................................................................20

2.5 Market Background Summary......................................................................................22

Chapter 3 - Theory..................................................................................................................23

3.1 Service Marketing.........................................................................................................23

3.2 Characteristics of Services.............................................................................................26

3.3 Service Quality..............................................................................................................28

3.4 Extended Marketing Mix...............................................................................................31

3.5 The Gap Model.............................................................................................................36

3.6 SERVQUAL.....................................................................................................................39

3.7 E-SERVQUAL..................................................................................................................40

3.8 Conclusion to Literature Review and Theory................................................................42

Chapter 4 - Methodology........................................................................................................43

4.1 Introduction to methodology........................................................................................43

4.2 Research Philosophy.....................................................................................................45

4.3 Inductive and Deductive Approach...............................................................................50

4.4 Primary and Secondary Research..................................................................................53

4.5 Sample..........................................................................................................................69

4.6 Overall Research Design – Advantages and Disadvantages specific to the research... .72

Chapter 5 – Findings...............................................................................................................75

5.1 Results of In-depth interviews......................................................................................75

5.2 Areas of theory applied to research..............................................................................90

5.3 Research Objectives Answered.....................................................................................93

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5.4 Strategic Recommendations for Next, M&S and Retail Market....................................95

6.1 Conclusion......................................................................................................................106

Appendix 1 – Additional Market retailers.........................................................................108

Appendix 2 - Manufacturing.............................................................................................110

Appendix 3 - WEDQUAL....................................................................................................113

Appendix 4 - Topic Guide..................................................................................................114

References........................................................................................................................116

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Chapter 1 – Introduction

1.1 Topic Introduction Service marketing is an increasingly important aspect for companies to help meet

what customers now expect. It is crucial for organisations to understand what

customers expect from their service quality and to fulfil this said objective.

“Delivering quality service is considered an essential strategy for success and survival in today’s competitive environment” (Zeithaml et al, 1996 pp 164)

The above statement represents the importance of service quality to an

organisation. Yet the problem remains that customers’ expectations of services are

forever changing and therefore the marketing of services and examining the service

quality gap is an on-going process for many reasons. With the advancements in

technology and the changes to the economy customers are now expecting more and

more for their money, therefore the better a company understands customers’

expectations of value, the more loyal the customers will be. (Zeithaml et al, 1996)

It is important to consider the factors that customers value as important when

purchasing clothing, the decision to buy again from a store is not purely reliant on

the product but on the service aspect as well. Therefore marketers need to have a

better understanding of the qualities a service must possess.

Technological advancements have resulted in a change in retail shopping as

consumers now look to the internet for quick and easy shopping; the growth has

been substantial with UK consumers spending £87 billion in 2013 on online

purchases. (Dunn, 2013) However the boost in online sales presents a new service

area in which retailers can excel. Through buying online, retailers can now offer

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customers free delivery or the service of click and collect as an added feature with

their purchase. Therefore when purchasing a product a customer would be drawn

back to the organisation’s site which provides the best additional service, for

example delivered on time. So investigation into service quality is valid and required

for organisations to better understand the influence it can have on a customer.

(Dunn, 2013)

In relation to this research further investigation specifically into the service provided

online will be carried out. In addition the will delve into two companies which are

currently in direct competition, Marks & Spencer and Next. Both organisations retail

within the same sector and have strong online presence. A comparison will be made

between the two along with recommendations towards their services online and the

results will predict the differences and improvements that could be made.

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1.2 The aim The aim of this dissertation is to critically analyse the various factors involved within

the marketing of services and the marketing with the new digital age. It has become

apparent that marketers now need to pay close attention to how the world of buying

and purchasing is changing due to technology updates. Also critically assess online

service quality relating to the clothing industry with specific focus on Next and M&S

and the service quality they deliver.

This shall be achieved by examining marketing models used within services that are

highly credible and testing such models to examine whether or not they still fit

within the current buying behaviour of today’s customers. The final aim is to improve

marketers’ knowledge of how big a part technology has to play in how customers go

about purchasing their products and services.

1.3 Research Objectives Review the current market situation for online clothing retailing and the

service they provide.

Critically examine the theoretical area of service quality online and the

relevant models associated.

Apply the theoretical area of service quality to the market area of clothing

retailing specifically Next and Marks & Spencer.

Analysis of the findings of the above research.

Make strategic recommendations for improvements in their area of business

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1.4 Overview of the Chapters Chapter 1 – Overview of the topic and outlining the aims and objectives

Chapter 2 – This chapter is dedicated towards the literature review and also

providing an insight into the background of the market. The main contributing areas

of the current retail industry will be examined and explained along with the factors

that could affect spending or change how consumers buy. Investigation into the key

players in the market will be carried out along with comparisons and reasons for

where they currently sit within the industry. In addition this chapter will highlight

and look at key results by academics within this field.

Chapter 3 – This chapter will be in conjunction with Chapter 2 and will go on to

discuss the theory, assessing what key models are relevant to the research and their

pros and cons.

Chapter 4 - Methodology in general and specific to this research will be the focus.

Information including research philosophy, the approach being chosen for data

collection and some general pros and cons of all areas will be discussed.

Chapter 5 – Findings of the primary research will be analysed and discussed further.

Chapter 6 – Recommendations and conclusions. This chapter will summarise what

was found and generate some new theories as a result of the primary research.

The following chapter will be market background and also investigate into the

literature surrounding the topic.

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Chapter 2- Literature Review and Background to Market

2.1Market size and forecast of the retail industryThe retail industry has continued to flourish over the past 5 years despite the

economic squeeze that has occurred. Consumers have continued to prioritise

spending on clothing with the retail industry, being worth £49.8 billion in 2013, and

from supporting literature the expected future trends are similar to present day.

(Mintel, 2013) Consumer spending on clothes and accessories has risen from 4.5% in

2008 to 4.8% in 2013; this recent figure shows that consumers are now prioritising

clothing however cutting back elsewhere, for example in big ticket products or

leisure services. (Mintel, 2013) Women’s outerwear has been the biggest segment of

the market, currently accounting for 49% of all spending. One reason for such a large

market share and rising profits is the innovative processes that UK clothing retailers

are developing. Some examples of such are

“Primark took cheap, disposable fashion to new levels, ASOS established its niche with online fashion credibility and John Lewis has upped is game by investing in

new key brands and in more trend-led womenswear” (Mintel, 2013)

The new approaches such retailers have taken in order to survive the economic

adversity has resulted in their continual growth. However recent achievements

cannot be celebrated for long as retailers need to continually look to the future in

order to maintain such growth and any businesses involved in the clothing industry

will need to develop new innovative processes to keep consumers interested in their

stores. One area which many retailers are heavily investing in is their stores. By doing

so they are looking to create an environment that encourages shoppers to enter and

browse creating an atmosphere that customers enjoy when shopping, therefore

resulting in more time being spent in store and an increase in purchases. (Mintel,

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2013) This has already been carried out by well-known organisations such as

Debenhams renovating their London flagship store and House of Fraser continually

refurbishing parts of their stores. Refurbishment of stores has not been the only area

of development, new technology has also been implemented to make shopping a lot

more enjoyable. For example the input of new payment points near the changing

rooms removes the traditional till queuing that can result in a lot of consumers re-

examining their purchases or even leaving them as the queue seems too long a wait.

(Mintel, 2013) In order to develop the enjoyable store atmosphere that

organisations are trying to achieve, they have implemented large screens to

advertise their latest promotions on certain products or a “how to wear guide”

which customers could enjoy watching while shopping. (Mintel, 2013) The

advertisements created for their stores are also being used online in terms of

promotional emails and advertisements on social media to attract their online

customers in the same manner.

Overall the above points show that the clothing retail is thriving and continuing to

grow despite what might have been expected. However the organisations within the

industry have to work harder and harder to gain business from consumers, who are

no longer willing to spend on the classic items as there has to be a draw for them to

spend.

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2.2 Factors that influence retail spending power2.2.1 Price and Quality

In relation to what consumers list as important when purchasing clothes it has

resulted in quality and durability being high on the list with low price coming in next.

(Mintel, 2013) Quality and durability are, according to research, 10 percent more

important than low price. This is represented in the diagram below

Figure 1

(Mintel, 2013)

The above diagram represents what has been previously stated, in that nine out of

ten consumers see durability and quality as the most important factor. However

when comparing this to low price eight out of ten find this most important. When

splitting these factors into which gender finds it most important it is evident that

males are most concerned with quality and that females find prices to be the driving

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factor in their current buying. (Mintel, 2013) Although statistics confirm that the

main driving factor in buying for males is quality this is also confirmed through some

statement by males of ages ranging from 25-34. One example of such would be

“I am definitely willing to pay more for good quality clothes because it’s worth it in the end” (25-34 D male,2013) (Mintel,2013)

The importance of such product quality is evident within the age range of all males

however peaks at over 55s.

Although quality is a key aspect when consumers are deciding where and what to

buy, low price is still extremely important to consumers, specifically ages 16-24, as it

has been found that this age group care less than the average consumer about

quality. The high concern about price within this age group has mostly come from

the continual economic pressures they are experiencing. One in every four 16-24

year olds have now agreed that their financial situation is “Tight I am just making

ends meet but only just”. (Mintel, 2013) The current situation with this age range has

made many retailers consider how they can create according to these needs. One

example would be online fashion giant ASOS which has subsequently lowered their

prices and is also looking to launch a value range.

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Summary of above points –

Key

Most Concerned with + Least Concerned with –

General Age range Low Price Quality

Women + -Men - +

Low Price Quality

Sample 16-24 + -

2.2.2 Double Dip Recession

Recession hit Britain hard in 2007 affecting all areas of the UK economy, however it

has been reported that UK spending on clothing was down since 2001/2002 with the

average spending having dropped to £21.60 a month. (Telegraph, 2009) This fall in

spending continued right up to the start of the financial crisis in 2007; with

confidence down the UK consumers were now being careful where and how they

shopped. Spending was continually limited right through 2008 and resulted in that

year being one of the most difficult times for retailers in Britain. This period brought

hard times for businesses with spending being limited and the summer being a wash

out. Consumers were looking for bargains, this put pressure on the clothing retailers

to make cuts right through their product lines. (Kollewe, 2009) However this resulted

in what is now deemed the ‘Primark effect’ in which throwaway fashion became the

forefront of Britain’s high street fashion. (Kollewe, 2009) In relation to online

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retailers this was not good news as they could match the prices however had to

factor in the postage and packaging.

2.2.3 Ethical Policies

Quality and price are the two main areas in which there can be an effect on how

consumers buy, however these are not the only areas that can have an effect as

returns policies and ethical policies can also determine how customers buy. (Mintel,

2013) In relation to return policy the women demographic is much more concerned

with this area as they see free returns and a longer refund period as very important

due to the fact many more females than males struggle with the fit of clothes.

(Mintel, 2013) Women hold such aspects high on their list of priorities when

shopping and these results in service marketing playing a very important role,

especially E-SERVQUAL model which will be discussed throughout.

Ethical policies is a relatively new concern when it comes to what influences how

consumers buy as in May 2013 the collapse of a factory which produced clothes

killed over 1000 people. This tragedy was highly documented on the news and so

brought the issue of ethical polices within clothing to the forefront of consumers’

minds. (Mintel, 2013) Due to this heightened concern large, well known retailers like

Primark and H&M decided to sign a document that stated they would aim to

improve the conditions and buildings in which their clothes were manufactured. This

not only did the obvious, which was protecting the safety of the people

manufacturing their clothes, it also made their organisations look desirable to the

average consumer as they now looked to be a caring company not only concerned

with making money. (Mintel, 2013) However when investigating further into this

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area of concern for consumers, it becomes evident that more women than men

were concerned not only with ethical practices but also with environmentally

friendly practices within the company. (Mintel, 2013)

Overall considerations for companies to assess when investigating influential factors

in relation to consumers’ buying behaviours are as follows: quality, durability, price

and return policy. The four aspects can greatly affect what, where and how

consumers buy and should be of the utmost importance for clothing organisations.

(Mintel, 2013) Ethical trading is a considering factor for the clothing companies

however it has not been concluded how many consumers would actually change

their buying behaviours based purely on such an area.

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2.3 Key Players in the market Regardless of the economic situation, the clothing industry is always one with great

competition. Clothing retailers can no longer get away with just providing the

average product as they now need to compete in all areas of their business such as

merchandise and innovation in order to draw in the customers. (Sender, T 2014)

Consumers are now more than ever feeling the squeeze but are still buying as they

have confidence in the marketplace, therefore there is still potential to up their

profits and their level of consumers if they approach the aspects as previously

stated. (Sender, T 2014) It is crucial to know who the main competitors are; the UK

clothing industry is extremely concentrated which results in many different

companies competing for the same types of customer. The main competitors within

the women’s, men’s and children’s clothing are as follows

M&S

Next

Debenhams

Primark

New Look

Matalan

Asda

Tesco

Sainsbury’s

H&M

Arcadia Group

River Island

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All of these companies are attempting to outshine each other in terms of the

consumers. Although they are all in competition with each other, certain

organisations will compete on a more direct basis with specific retail companies. The

table below represents the organisations that are currently overtaking or ahead of

most others:

Current Market Leader Company Overtaking current market leaders

M&S 7.6% Next 7.2%Arcadia 5.6% Primark 4.8%Sports Direct 3.5% Asda (Overall market share including

food etc 13.9%)Matalan Tesco

From this table it can be assessed that the industry is changing, the companies that

currently have the market lead losing more of their market share to new and

upcoming companies which are accessing the industry in an innovative way. (Sender,

T 2014) Classic well-known companies like M&S are greatly struggling as they are

losing a lot of their market share and their margins are falling, compared to Next

who is on the way to overtaking M&S as Next margins are currently exceptional.

(Sender, T 2014) It is easy enough to state where companies lie in terms of market

share and consumers; it is not so easy to assess how such companies are succeeding

where others are failing. Therefore the following sections will assess attributes about

both M&S and Next as they are the area of focus for the research.

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2.3.1 M&S - despite falling sales

“The 13th consecutive quarter of declining sales in M&S’s general merchandising arm, which is primarily clothing, a grim statistic” (Ruddick, 2014)

M&S as stated above has been going through hard times. There falling sales have

been heavily linked to their seemingly inability to remain current with their clothing

line. This is confirmed to be true when comparing the sales between M&S food and

clothing, the current figures for the food department represent a different picture

for the organisation, as reports of record sales in festive food proves to be a positive

aspect for M&S. (Espiner, 2015) The full extend to M&S struggles has not yet been

established however the continual problems occurring at their Castle Doningtion

distribution centre has been badly affecting the amount of sales made online. So in

turn affecting their reputation as customers are questioning there reliability as an

online retailer. (Espiner, 2015) Other department stores upped their strategic tactics

but M&S does not appear to be doing the same and this is hindering their current

growth in consumers. (Mintel, 2014) Currently womenswear is the department

which is being affected the most within the organisation.

Although M&S has struggles ahead they do have positive attributes which can be

built upon to ensure they become ‘king of the high street’ once again. M&S has had a

place on the British high street since 1884 and through this they have built a brand

which is one of the most trusted stores on the high street. (Mintel, 2013) This is an

aspect which the British public values greatly; therefore despite falling sales they are

still continuing to maintain their regular customers. (Mintel, 2014) Further examples

of current organisations are represented in (Appendix 1).

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2.3.2 Next – Top of their game

“There’s no doubt that Next is now an established leader on the British high street. Its stores are everywhere and yummy mummies rave about it” (Couttigane, 2014)

Next is based on and off the high street primarily selling clothing and home wear.

Currently they are experiencing some prosperous times with pre-tax profits hitting

£782 million which was achieved despite of the mild winter that was experienced.

However Next is still not satisfied with their current return and are expecting some

big changes to occur in order to achieve the profits they would ideally be wishing for.

(Nils, 2015) Currently Next has nothing to panic about, their online business is

continuing to grow specifically overseas. Next is also currently expanding their

product range to increase profits, there current venture is labels; they are aiming to

bring in other brands into their stores. (Nils, 2015) The first attempt at such venture

was highly lucrative for the organisation and therefore expansion into other ranges

has now been carried out. Their success within online retailing is directly related to

their hugely successful past in pre-internet catalogue ordering process which was

synonymous with the organisation. (Marston, 2014) Next were well versed in the

processes and produces needed for customer ordering therefore the move to online

ordering was relatively simple for the organisation. The seamless transition between

the two has enabled Next to improve their ordering services and so entice more

customers into using the service. (Marston, 2014)

The struggling high street does not appear to be having effect on Next, yet is

affecting one of the main competitors mentioned above.

“Usurped Marks and Spencer throne as ‘king of the highs street’ and is now valued at £10.6hn. But M&S is still struggling despite their 130 year history and broader

product base” (Marston, 2014)

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Next’s unique approach to their organisation seems to be the reason for their

success compared to M&S’s struggling figures. They have approached the market

with a combination of customer-centric thinking and emphasis on technology that

has helped to include customers in the buying process so they feel valued and

listened to which is key aspects in delivering good service quality for any

organisation. (Marstone, 2014)

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2.3.3 Overview of the market

Companies on the Up WhyPrimark Growing fast even through their focus for

expansion has been moved to continental Europe and America. This is due to their classic strategy of the right product in the right place.

Sports Direct The consumers continuing interest in a healthy lifestyle and being healthy has greatly helped Sports Direct sales. In addition their low pricing on usually expensive sportswear. They may have to face maturity at some point however this has not happened yet.

Companies staying Flat WhyNew Look They have stayed on the same path for

the past year. Maintaining profit however not growing greatly. Indication that they may begin to grow their market share in the next year.

Next Performing strongly as previously stated however disappointing online sales and there is a question mark over their new strategy to expand in different types of areas.

Companies on the Down WhyM&S Success for this year is resting on the

Autumn/Winter ranges that have just been brought into stores. However the initial feeling about such is not positive. Also the company is struggling to keep executives in the clothing side of the business creating disruption within the business.

Arcadia Topshop is outperforming what was expected however BHS sales are greatly down. There are some promising new formats for the businesses however sales need to be driven up across the board.

Matalan The company is realising that customers no longer just want conservative fashion

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at reasonable prices, they want high fashion at cheap prices which is what Primark is now providing. Matalan is now going to have to re- think strategy and give the customers reasons to travel to their stores.

(Mintel, 2014)

2.3.4 Demographics of retail customer

The success of any fashion retail business lies within the company’s ability to

understand the consumer needs and offer the correct merchandise to satisfy the

needs of their target segment. Market segmentation is the process of dividing

customers into different categories which are generally based upon a number of

different aspects and this can be categorised as demographics. (West et al, 2010) The

general belief behind market segmentation is that it aids retailers to further their

understanding of the consumers likely to buy from their company. There are several

types of market segmentation/demographics that are currently used within the

clothing markets; Gender, Age and social-economic. (West et al, 2010) All of these

have a key role to play in where a consumer shops. Below lists the key players within

the current retail industry that are more popular amongst each demographic.

Gender

River Island currently is the best of the unisex retailers as they have achieved the

closest split between men and women customers, with a 49.3% of men shopping

within River Island and women slightly peaking at 50.7%. The biggest customer base

of Dorothy Perkins, New Look and H&M is women; each of these retailers averages

above 70% of women customers. (Mintel, 2014)

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Age

Age within any market can play a huge role in where a consumer chooses to shop

from as the perceived image of a store/company can easily result in consumers not

even considering said store when shopping. However such perceptions of certain

stores are changing, for example H&M and ASOS are now attracting a much older

demographic of 25-34s. (Mintel, 2014) The widest range of customers chose to shop

within stores such as Primark and Next as they appear to cater to all customers no

matter what age demographic they currently fit into. (Mintel, 2014)

Socio-Economic

The examination of social and economic factors that influence an aspect in relation

to the proposed research is the spending of consumers and where they shop

according to specific circumstances. (Mintel, 2014) John Lewis is most popular

amongst the affluent AB consumers due to the average price of their products and

type of atmosphere they offer with their brand. Overall Next is the closest to the

average with a wide range of socio-economic groups choosing to shop there,

showing it is the store that currently has the broadest appeal. (Mintel, 2014)

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2.3.5 Summary of key demographic

Overall for the retail sector the main area of interests for the clientele is females

between the ages of 24-60, which although is a wide age range has a great influence

within the fashion sector. The majority of the stores mentioned above have a more

specific age range however there are a few, such as Next, M&S and Primark, which

cater to a variety. All types of socio-economic customers influence the retail sector,

the only contributing factor is budget and therefore customers can be

interchangeable on a month to month basis about where they shop. However as

mentioned above there are some general areas that stay true.

2.4 Advancing Technology Within the current retail sector advancing technology is ever more important as it

accounts for £151 billion to the UK economy; however within recent years the

traditional high street retailing has come under pressure from new and emerging

markets. (Laudon, 2007) Supermarkets’ recent expansion into new product areas

such as clothing and online retailing has taken a large leap forwards, the way in

which Britain spends has had an overhaul due to advancements in technology.

Technology has given the population a new avenue to search of information; the

development of the internet has produced tremendous benefits. (Rhodes, 2014)

Online shopping is now convenient and time saving; due to the large amount of

information available through the development in technology, consumers can now

easily compare prices and the different aspects of the product they are wishing to

purchase. (Chen & Dubinsky, 2003) The benefits that technology can deliver for

online retailing are huge with expansion to the market evident within the figures;

however such growth can also bring disadvantages as retail businesses now have

20

major competition within any market they enter. (Benady, 2014) The added aspect

of competition creates higher expectations for customers, now they have a lot more

bargaining power and increased number of choices. Technological developments

have resulted in retail companies continually having to improve and upgrade their

current methods. (Chen & Dubinsky, 2003) With the regular use of smart phones and

apps, retailing businesses are now creating apps specifically for their customers to

shop the latest products, the development of the apps has resulted in customers

being able to shop whenever and wherever they are, which ultimately can become a

positive for a company and their revenue. (Chen & Dubinsky, 2003) However the

explosion of technology can result in added pressures for a company. What

customers are expecting from the service has increased dramatically due to the

advancements. (Benady, 2014) An example of such would be social media; retail

companies now have a responsibility to manage their media presence. One

customer’s bad experience with a company can now be widely seen and read about

due to social media, therefore tarnishing the reputation of any business. (Benady,

2014) Ultimately technology will always have its benefits for any business however

as the technology advancements are forever changing, retailers must continually

stay up to date and ahead of the competition on how to attract and maintain

customers through technology. (Benady, 2014) In additional relative challenges

involving manufacturing is included in (Appendix 2). Therefore with advancing

technology more and more customers are turning to online shopping which relies

heavily upon services delivery which in turn increases the importance and relevance

of E-SERVQUAL.

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2.5 Market Background SummaryOverall the current retail sector is experiencing large changes in the way in which

their customers shop; customers are now expecting a lot more for their money due

to the difficult financial times Britain has experienced in the past five to seven years.

Retail customers are now turning to different methods of purchasing which suit

them best such as online. Ultimately resulting in the vast majority of retailers

developing their online presence in order to stay up to date and also retain their

customer base. Although the high street will always be needed as not all customers

wish to shop online the new approach to shopping is and will continue to have a

definite effect on organisations marketing and service strategies. Discussed above

are the main competitors within todays retailing market sector however the most

significant change in all the businesses mentioned is between M&S and Next both

organisations based within the same area of retailing however are experiencing

completely different situations due to the changes in the market. (Mintel, 2014) To

summarise the market sector of retailing is changing and so are the customers

however more emphasis is now being placed on the intangible aspects of retailing

and organisations now have to continually improve in order to retain their customer

base and attract a new customer.

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Chapter 3 - Theory

3.1 Service Marketing 3.1.1 – Definition

Services now account for almost 70 per cent of the GDP for the UK and currently

services make up the largest part of all employment opportunities, therefore the

growing demand for services is quickly creating new markets. (West et al, 2010)

Previously service companies have generally been weaker in terms of marketing

their own service. However this is changing as service companies are now realising

the importance of marketing in relation to them. (West et al, 2010) Service

marketing and strategies have been developing quickly to respond to the recent

tremendous growth in service industry and therefore service marketing is the

strongest growth area for marketing recently. A service is defined by Lovelock 2004

as

“A service is an act or performance offered by one party to another. Although the process may be tied to a physical product, the performance is transitory, often

intangible in nature and does not normally result in ownership of any of the factors of production” (Lovelock, 2004 pp180)

Evaluate what the key distinction between a product and service is, lies in the fact

that customers receive value from services without actually obtaining ownership of a

tangible product.

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3.1.2 Characteristics of Service Marketing

However this factor is not the only key difference between the service and product

as there are many other differences to separate the two, also further discussed in

the Tangibility Spectrum section.

Customers do not obtain ownership of services. Service products are ephemeral and cannot be inventoried. Intangible elements dominate value creation. Customers may be involved in the production process. Other people may form part of the product. There is greater variability in operational inputs and outputs. Many services are difficult for customers to evaluate. The time factor assumes great importance. Distribution channels take different forms.

(Lovelock, C & Jochen Wirtz, 2004)

3.1.3 Example of Service Marketing

An example of a service would be a car rental or hotel, where the customer gains a

service however does not receive a tangible good, whereas a service product would

be taking your car to the garage. It is at this point the customer is receiving an

intangible service, however also gaining parts for the car, which is tangible.

(Lovelock, 2004)

3.1.4 Tangibility Spectrum

The aspect of service/ service product is represented within the Tangibility spectrum

which highlights the differing degrees of tangibility for products and services. An

example of such a spectrum is below.

24

When providing a service/ service product organisations are required to assess this

differently than selling a product. For example a service product must be tailored to

customer’s needs, priced realistically, distributed throughout convenient channels

and actively promoted to customers. The last factor is where service marketing

occurs.

The following section will now discuss the appropriate models for the marketing of

services and also the positives and negatives of each area.

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3.2 Characteristics of Services Services by nature have four main aspects: intangible, heterogeneous, inseparable

and perishable. The four areas identity if it is a service the individual is receiving and

are described as follows:

Intangibility – Services are generally seen as intangible as the customer cannot hold

them, touch them or try them before they purchase a service. However the key issue

is that even the most intangible services hold a certain tangible aspect to them that

is used to convey the service quality aspect of services. (West et al, 2010) An

example of such would be stores for customers shopping. They can convey a number

of different messages i.e. luxury, contemporary and many more through components

such as furniture, lighting, colours etc. therefore adding a tangible aspect to the

service which can in turn add value to the intangible service.

Heterogeneity – The factor of heterogeneity focuses on that each time the service is

provided there will be:

“Differences due to the environmental variation or changes in attitude, mood or emotion on the part of either the provider or the recipient” (West et al, 2010

pp135)

It is therefore of the upmost importance that service marketers ensure as much

consistency as possible. Although complete consistency is impossible there are

different methods that can be used to reduce inconsistencies. (West et al, 2010) One

such approach would be to design the service in a uniform manner by automation

where possible or by training the service employees to follow the strict guidelines

laid out for them. (West et al, 2010) However even with tight controls there is the

26

possibility for unhappy customers, service firms could use money back guarantees to

remove any possibility of disgruntled customers due to the service provided.

Inseparability – In the mind of the customer the service cannot be separated from

the provider of the service. Therefore this can often create challenges for the service

provider. (West et al, 2010) One avenue the company could follow would be

location; by bringing the production to the customer provides additional locations

for the service. Using such a method can result in decentralization and employee

empowerment which in turn ensures the highest service quality level. (West et al,

2010)

Perishability – Services cannot be stored in inventory as they are perishable,

therefore when dealing with times of high and low demands can only be dealt with

through flexing capacity or shifting demand. (West et al, 2010) There are many

different ways that have been established to help with supply and demand, some of

which are listed below:

1. Different pricing, when experiencing a dip in the service demand lower the

price

2. Flexible staffing, ensure that there is more staff available at peak times and

less during the dips

3. New services added at off peak times to draw in the customer

(West et al, 2010)

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3.3 Service Quality 3.3.1 Service Quality Definition

Service quality is fundamental in an organisation for their survival and growth as it

can be greatly effective when tackling competitive markets. This results in service

based industries being compelled to provide excellent customer service in order to

maintain a competitive advantage. (Danile et al, 2010) Therefore it is necessary to

understand fully what service quality is. Parasuraman et al (1985) describe service

quality as

“The discrepancy between consumers perceptions of services offered by a particular firm and their expectations about firms offering such services”

(Parasuraman et al 1985 pp208)

It can be broken down to explain that if what a consumer receives is below

expectations it will then be considered as low quality by the consumer.

3.3.2 Characteristics of Service Quality

If the service is perceived to be higher than expected then the consumer will

consider this high quality. This explanation highlights a key factor that service quality

can largely be held to consumers’ expectations of an organisation being high or low.

Certain aspects can be influenced by the consumer’s personal needs, past

experiences, word of mouth and a service provider’s communications. (Parasuraman

et al, 1985) However the challenge for organisations occur when measuring service

quality due to its intangible nature and because it largely deals with consumers’

expectations and perceptions, as stated above, which can be difficult to measure due

to the complexity of human behaviour. (Parasuraman et al, 1985)

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3.3.3 Five Dimensions of service quality

The following five areas are the main aspects in which customers measure service

quality.

Tangible: The physical facilities, equipment, the ease of use and the visual appeal

based on structure of the site or service aspect. (Chaffy et al, 2012) An example of

such would be the seller’s outward appearance, particularly the room furnishings or

appearance of the employees. (Bruhn & Georgi, 2006)

Reliability: The ability to perform the service as promised dependably and accurately

and also the availability of the service/website. Many organisations fail in such

matters and may lose out on achieving 100 percent availability of the potential

customers if customers believe they have been let down in either of these aspects.

(Danile et al, 2010) When the service provider provides its service at the agreed time

it promised to do so, for example a retailer delivers the product by the time frame

stated. (Bruhn & Georgi, 2006)

Assurance: It is the knowledge and courtesy of employees and their ability to inspire

trust and confidence. It is also the assurance that your questions will be answered

with a quality response. (Chaffy et al 2012) When looking to emails Chaffy and Edgar

specifically undertook a survey. Of 180 responses the following statistics were

recorded:

91 per cent delivered a personalised human response

9 per cent delivering an automated response

40 per cent of responses said that they answered or at least referred to all of

their questions

29

38 per cent did not answer any of the specific questions asked

(Chaffy et al, 2012)

An example in relation to Next would be if a customer entered a Next branch and

questioned an employee about a service they offer, the employee should be able to

answer with confidence about said area and ensure the customer was happy with

the response and information.

Responsiveness: Will be able to tell customers exactly when such service will be

performed, will give prompt service to a customer, always be willing to help such

customers and never be too busy to respond to a customer’s requests. (Lovelock et

al, 2004) Online delivery is a specific example of such responsiveness; it is vital that

customers are informed of a day and estimated time of arrival for their product.

Empathy: Will always give customers individual attention, operating hours which are

convenient to all their customers, provide personal attention to customers who

require such and understand the specific needs of their customers. (Lovelock et al,

2004)

3.4 Extended Marketing Mix 3.4.1 History of Marketing Mix

30

The marketing mix rose to the surface in the early 1960s when Jerome McCarthy

developed such a model and coined the term the four Ps: Product, Price, Place and

Promotion. This model is still creditable and used by many organisations to develop

their marketing strategy for many products. (Chaffy and Smith, 2013) However the

original development of the four Ps has now been developed into the seven Ps to

better represent service delivery. The additional three areas are as follows: People,

Process and Physical evidence. (Chaffy and Ellis-Chadwick, 2012) The service aspect

was in great need of representation as services have now become a major generator

of economic activity and also because services are now becoming increasingly part of

the augmented product with customers requiring more for their money than in the

past. (Constantinides, 2006) Kotler et al 2001 and Jobber 2001 state such aspects as

the need for differentiation as they are an important basis for competitive

advantage. Stated above, the marketing mix is used to greatly develop the marketing

strategies of many different organisations, this is included by varying the different

aspects of the mix in order to create a recipe of marketing techniques specific for

that organisation. (Constantinides, 2006) However in relation to digital media, the

extended mix has a larger availability to vary the mix that is suggested in terms of

the traditional and service marketing mix. Chaffey (2013) suggests that due to the

changes in the digital market the following aspects could be re-addressed in order to

update the marketing mix towards the new challenges of marketing within the digital

age.

3.4.2 Marketing Mix and Extended Version

31

Original Marketing mix:

Product – Ways in which the core or extended product could be updated for

the digital environment

Price – Addressing the implications of pricing in the digital market – new

strategies and models

Place – Distribution in the digital market

Promotion – Digital brings new opportunities for promotion and to reach a

big audience with such tactics

Service Marketing Mix (additional aspects):

People – Essential within the service provision, customers will make

judgements based on the people representing the firm through their service

and delivery. Recruiting and training the right staff is necessary

Process – The system used to deliver the service, all services within an

organisation need to be clearly defined and efficient in order to promote an

efficient service

Physical evidence – Particularly relevant to the retailer operating out of a

store. It will distinguish them from their competitors and also allow for them

to charge a premium price for the service as customers make judgements

based on what they see.

(Chaffy and Ellis-Chadwick, 2012)

3.4.3 Limitations of Marketing Mix

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Before assessing the marketing mix in relation to the digital age it is important to

address the criticisms that are faced by the model in general. Many academics and

marketing specialists have commented on the age factor of the marketing mix.

Stated previously the marketing mix came into light in the 1960s. (Chaffy and Smith,

2013) This time the mix suggests a more push marketing approach, which simply

does not acknowledge the needs of the consumers. It has also been suggested that

the mix can lead to product orientation instead of consumer orientation. (Chaffy and

Smith, 2013) Therefore such limitation of the marketing mix/ four Ps is the driving

force of why many academics have tried to develop new models or concepts to

address the issues that the mix does not. One such example is Lautenborn (1990)

which suggested the four C framework. This takes on a similar format to the mix,

however directs the four Cs towards consumer perspective. They are as follows:

Customer needs and wants (from the product)

Cost to the customer (price)

Convenience (relative to place)

Communication (promotion)

(Lautenborn, 1990)

Furthermore to relate to the area of research which is online retailing, the customer

is equally important on and off line however their needs may vary from physical to

virtual environments. (Chaffy and Smith, 2013)

3.4.4 E- Commerce definition and challenges

33

The development of the internet brought a new kind of virtual business which

included a variety of online activities which has now been referred to as E-commerce

which is defined as being:

“A collection of internet based tools, processes can activities supporting, supplementing, improving or replacing traditional commercial (and sometimes

non-commercial) practices. Such practices include Promotion, Acquisition, Sales, Communication, Customer Retention, Personnel Recruitment and Market

Research” (Constantinides, 2006 pp78)

This concept that was coined due to the development of the digital age has given

marketing academics and practitioners several unique challenges to overcome when

attempting to market a business. Some of these new challenges are customer

empowerment, new forms of communication and interaction, global and around the

clock operation, high degree of market transparency and trouble maintaining a

strong competitive advantage. (Weltz 1995; Seybold and Marshak 1998; Porter 2001

cities in Constrantinides, E 2006)

3.4.5 – E-Commerce related to Marketing Mix

The issue of the marketing mix staying relevant in relation to the new e-commerce

work has been debated in great depth by many academics. The basic view is there is

a high proportion of researchers and writers such as O’Connor and Gavin 2001 who

are in favour of the 4 Ps as an E-Commerce marketing framework. In contrast to such

a statement other authors believe slight changes are likely to be made to the original

framework to make it more suited to the internet. Lawrence is one such author.

(Constantinides, 2006) There is now little doubt that the new technologies and

development of internet facilities will shape the future marketing trends of the 21st

century however the future of the marketing mix cannot be determined. It has

34

become evident through previous research that adaptation to the framework is

necessary to stay relevant. (Constantinides, 2006) Chaffy explores how the four or

seven Ps could change to fit the new world of marketing.

3.4.6 Options for varying the Marketing Mix

Product

In relation to the internet there are many options for changing a product through the

internet however first we need to separate the product into core and extended. Core

and Extended product is defined in an ideal manner by Chaffy which states

“The core product refer to the main product purchased by the consumer to fulfil their needs while the extended or augmented product referred to the additional

services and benefits that are built around the core of the product” (Chaffy, 2012)

When assessing whether the digital age can add value to a product, regardless of

whether it is a core or extended product, it is vital to address whether the digital age

will develop a whole new product for your business or whether it shall add value to

products already in existence. (Chaffy, 2012) One example of a product which has

been completely transformed by the internet is entertainment aspects such as

music, books, films, newspapers and magazines. All of these products mentioned are

now available in a different way than before the digital age. Although these products

are currently still available in their original form the internet has given consumers

new and exciting ways to access such products. (Chaffy, 2012) The marketing of

products is inherently important as it now offers flexibility to how customers wish to

view their products.

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3.5 The Gap Model Customer’s perceptions and expectations as discussed above are a large factor into

how a service is viewed by a customer. It then becomes the organisation’s job to

balance the view of what the customer expects and how the service is perceived and

this has now been referred to as the Gap Model. (Lovelock et al, 2004)

3.5.1 Characteristics of Gap Model

Through research by Zeithaml and colleagues four potential gaps have been

identified to create the most important gap (difference between expectations and

what is perceived). There are seven main areas where a gap can occur and they are

as follows:

1. Knowledge Gap – What the service provides and what customers actual

needs are

2. Standard Gap – Manager’s perceptions of what customers expects and

standards developed for service delivery

3. Delivery Gap – Standards set for delivery and what the actual performance of

such standards is like

4. Internal Communications Gap – What the company’s advertising and sales

personnel think are the product features, performance and service quality

level and what the company is actually able to offer

5. Perceptions Gap – Difference between what is delivered and what the

customers perceive they have received

6. Interpretation Gap – Difference between what advertising and sales state is

offered and what the customer thinks is offered

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7. Service Gap – What a customer expects to receive and their perceptions of

the service delivered

All seven gaps can have a detrimental effect on the customer relationship no matter

where they occur in the service design or delivery, therefore it becomes

fundamental for organisations to identify the causes of each gap and developing

strategies to close such gaps. (Lovelock et al, 2004)

3.5.2 Strategies to Address Service Quality Gaps

There are many proposed strategies to the service gaps identified. Some examples

that Lovelock and Wirtz have developed are as follows; number five on the gap list,

they believe that customers find it difficult to judge a service appropriately even

after they have experienced such service, therefore some service personnel tackle

such problems by keeping the customer informed of all actions they are carrying out

and even providing tangible evidence at the end of the process. This enables

customers to feel they follow the process of the service and can give an accurate

response to how they were treated during the service. (Lovelock et al, 2004)

A strategy that could be used to close the gap in relation to interpretation is pre-

testing. Before a company realises any advertising, brochures or website content

they should pre-test the information on a sample of their customers. (Lovelock et al,

2004) Those customers taking part can inform the company of their opinion of the

material and what they perceive is being offered by the company to avoid

disappointed customers. (Lovelock et al, 2004)

The Gap Model has many strengths however a specific strength of the model is that

it can offer a general insight and also provide solutions that can be applied to a wide

37

range of companies. (Lovelock et al, 2004) The Gap Model has been proven to be

successful through a wide range of organisations using and succeeding with it

however there are some academic criticisms of the model, as discussed below.

(Lovelock et al, 2004)

3.5.3 Critical discussion of Service Quality Gap Model

Many academics believe that there is a lack of evidence supporting the gap between

customer’s perceptions and expectations as a direct process of measuring the service

quality gap. Cronin and Taylor (1992) believe that a customer’s perception is valid

enough for assessing service quality. They therefore oppose using expectation and

perception to assess service quality and so in turn deny the validity of the gap model.

Although previously mentioned as a criticism of the gap model it is a respected belief

of academics that the gap model’s validity is questioned in terms of conceptual and

operational problems (Teas, 1993). Perception is definable and measureable as a

customer’s belief about how a service is experienced and therefore can be described

by the customer. However, expectation, which can also be defined by Parasuraman

et al (1985) as “desire or wants of a customer”, cannot be used in such a manner as

expectations can be greatly subjective and therefore can be interpreted in many

different formats (Teas, 1993).

38

3.6 SERVQUAL Valarie Zithaml and her colleagues developed a survey research instrument called

SERVQUAL to tackle such problems which can now be classified as a generic

measurement tool that can be used across a broad spectrum of services. The tool

contains 21 perception items and a series of expectation items which all reflect the

dimensions of service quality; these are classified as tangibles, reliability,

responsiveness, assurance and empathy. (Lovelock et al, 2004) Using these

previously stated characteristics, respondents are asked to rate their experience (a

company they have specifically used) on a seven point scale on each of the

dimensions of service quality which have several items included in each dimension.

(Lovelock, 2004)

3.6.1 Limitations of SERVQUAL

Validity of the SERVQUAL model has been questioned many times, as it is often used

as a generic tool for measuring the service quality across a lot of industries however

academics are questioning whether this is really possible. (Lovelock, 2004)

SERVQUAL model is limited in the areas of measurement and therefore it is not

possible to access all important areas within every industry.

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3.7 E-SERVQUAL 3.7.1 History and alternative model - WEDQUAL

The SERVQUAL model measures the quality of a service of the previously stated five

dimensions; these are well suited to measuring service quality offline. However

online services have unique aspects that offline services do not possess; some

examples of such would be as follows:

Server Problems

Connectivity problems

Backing up information (Collier, 2006)

One of the first academics to suggest a definition of the e-service quality was

developed by Zeithaml, Parasureaman and Malhotra in 2000. The definition stated

that:

“Extend in which service quality on the internet could be measured would be through how a Website facilities efficient and effective shopping, purchasing and delivery of products and services” (Zeithaml, Parasureaman and Malhotra, 2000)

Therefore through extensive research by academics there results have highlighted a

need for a new model to measure e-service quality and so two models were

developed. WEDQUAL was created by Lociacono, Watson and Goodhue in 2000

which consists of 14 dimensions that can improve the interaction between a

customer and a company’s website. (Appendix 3) However such a model has been

largely criticised for relating too much to functional design issues rather than service

quality issues which was the main aim of development. (Chaffey & Ellis-Chadwick,

2012)

40

3.7.2 – Definition and explanation of E-SERVQUAL

The second e-service model was developed by Ziethaml et al in 2002 which was

coined the E-SERVQUAL model and currently contains seven dimensions.

1. Efficiency- refers to the ability of the customers to get to the website, search for information or transact as required.

2. Fulfilment- involves the accuracy of service promises, including availability of products in stock and delivering the products in the promised time.

3. Reliability- is associated with the technical functioning of the site, including availability and performance.

4. Privacy- is related to assurance that shopping behaviour data is not shared and that credit card information is secure.

5. Responsiveness- refers to the ability of e-retailers to provide appropriate support information to customers when requested.

6. Compensation- involves returns facilities for refunds and return shipping and handling costs.

7. Contact- is the ability of customers to talk to a live service agent online.

(Ziethaml, 2002)

The dimensions have been split into two parts. The first four are currently classified

as core service scale aspects that are necessary to examine in relation to an e-service

and the latter three are regarded as the recovery scale; these are only necessary

where a customer has a question about or problem with the service. (Chaffey & Ellis-

Chadwick, 2012)

3.7.3 Overview of both frameworks with criticisms

Both of the frameworks have proven useful in certain aspects when assessing e-

service quality however it has been argued that they omit some key factors that are

of importance such as accessibility, findability techniques and customer reviews and

ratings. (Chaffey & Ellis-Chadwick, 2012) It has been suggested that online markets

should assess customer expectations and then identify a gap between expectations

and what is currently delivered, so highlighting the online service quality gap.

41

Identifying the gap between such aspects has developed the Gap Model process

which is discussed below.

3.8 Conclusion to Literature Review and Theory To conclude, the literature review has highlighted some key aspects within the retail

industry such as the factors that influence spending, manufacturing and key players

in the market; such information has provided a basic background to the retail

industry. The literature concerning the aspect of service marketing is vast; which has

been previously mentioned throughout the assessment of the literature, service

marketing has not always been such a prominent aspect within the service world.

Due to such aspects the basic marketing models have been adapted over time;

academics have added elements into the models and also developed new models

which have been debated to produce a better result than the traditional marketing

models. Through the literature review examples of opposing theories and limits of

each model have been given.

Overall the literature review has shown that when marketing services, many other

factors are necessary to be considered and so when adding the online aspect to

marketing services further factors need to be developed to appropriately market

these areas. The world of retail has changed significantly with customers looking for

more value for their money so a more dynamic and responsive service is required.

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Chapter 4 - Methodology

4.1 Introduction to methodology The aim of this dissertation is to further understand the factors that are involved

within the service quality model and how such aspects can be related to the online

clothing industry. Moreover exploring the additional options that are a result of

online retailing and what extra services can be added through the online aspect.

Sanders et al (2007) describes research as

“The systematic collection and interpretation of information with a clear purpose, to find things out” (Saunders et al, 2007 pp610)

The above definition describes that research in basic terms is setting out a clear

purpose or question in which further investigation is needed to understand and

clarify a topic in which the researcher then collects the relevant information.

(Saunders et al 2007) The fundamentals of research may seem simplistic, however

when examining further it is evident that in order to research a topic a number of

aspects have to be carried out, for example collection of information is much more

than simply reading. The collection of data needed for research has to be carried out

in a systematic manner with a clear and precise purpose or such collection of data

will not be seen as research. (Blumberg, 2008)

The main research purpose in relation to this dissertation is to gain further

understanding into the service quality in the retail industry, specifically services

online and what currently drives such factors. It also attempts to gain new insights

into the models and processes which are used within service marketing.

43

The research will be carried out in a number of different manners i.e. the method of

the research therefore it is important to distinguish the difference between method

and methodology. Rajasekar (2013) defines research methodology as

“Essentially, the producers by which researchers go about their work of describing, explaining and predicting phenomena. It is also defined as the study of methods by

which knowledge is gained” (Rajasekar, 2013 pp5)

Further explanation of methodology can be described as not a specific formula but a

broad set of principles or rules which ultimately explain and justify the methods

chosen. Therefore the method can be described as

“The techniques and procedures used to obtain and analyse research data” (Saunders et al, 2007 pp602)

The method is simply what approaches the researcher chooses to take when

collecting data about their research topic. In relation to this dissertation the chosen

methods are in-depth interviews.

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4.2 Research Philosophy The term research philosophy directly relates to the development of knowledge and

the pure nature of such knowledge. It is simply what the researcher is carrying out

when embarking on research and what particular field the research is within that

defines research philosophy. (Saunders et al, 2007) The research philosophy that any

researcher adopts can contain assumptions on how such researcher views the world

we live in. Therefore it is necessary to understand that the philosophy chosen for any

research project can be largely influenced by practical considerations and the view of

the researcher on knowledge and development of said knowledge. (Bryman & Bell,

2007) Overall there are three main approaches that can be chosen when

undertaking research; epistemology, ontology and axiology. For the purpose of this

research, closer examination will be focused on epistemology, which can be defined

as:

“Concerns with what we accept as valid knowledge. This involves an examination of the relationship between the researcher and that which is researched” (Collis &

Hussey, 2014 pp.47)

However it is important to look at the central context of epistemology which is the

two different viewpoints that a researcher can view to be important to them. For

example a researcher who is concerned with resources i.e. they consider data on

resources needed is more than likely to lean towards the natural science approach

whereas the opposite researcher would view feelings and attitudes of employees as

more important for research findings. (Saunders et al, 2007) Therefore the resources

researcher would choose a positivism path for their research and the feelings

researcher would choose an interpretivist perspective for their research. (Collis &

Hussey, 2014)

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4.2.1 Positivism

When looking further into positivism it is defined as

“Positivism is underpinned by the belief that reality is independent of us and the goal is the discovery of the theories based on empirical research (observation and

experiment)” (Collis & Hussey, 2014 pp.44)

Therefore for a positivism research, knowledge is derived from positive information

as it can be verified by scientific knowledge. To put simplistically every rational

justification has to have scientific or mathematical proof. (Sekaran & Bougie, 2013)

Therefore even when attempting to explain or predict a social phenomenon, theories

and exacts are still used by positivism researchers. The main viewpoint would be that

the only goal of any research is to describe the phenomenon being investigated in a

way that one can directly observe or measured objectively. (Sekaran & Bougie, 2013)

Overall when examining research from a positivism approach the findings will be

based largely on facts and figures with proven theories from positivism perspective,

any knowledge collected from emotions, feelings and through it is simply not

possible. (Bryman & Bell, 2007) However there have been critics of the use of

positivism as the argument made can be that the social world we live within right

now is far too complex to lend itself to define rules and figures. Due to the simplistic

attitude it can be suggested that such complexities of the world are lost if it is

reduced to a series of generalised facts and figures.

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4.2.2 Interpretivism

In relation to the current research for this dissertation an interpretivist approach

would be best suited to the research topic and the researcher’s view on society.

Interpretivist can be described as

“Interpretivism is underpinned by the belief that social reality is not objective but highly subjective because it is shaped by our perceptions” (Collis & Hussey, 2014

pp.45)

Interpretivism is the opposite of positivism, it emphasises the use of research

amongst humans rather than objects and as such coined the term ‘social actors’ to

describe the humans involved in the research. The metaphor of the threat and

acting is very important when describing the term social actor; it is based on the

belief that when an actor takes on a role they interpret how such role should be

acted. (Collis & Hussey, 2014) This is similar to how we as humans interpret our

everyday social roles in line with what meaning we give to such roles and also how

we interpret the roles of others. However it is crucial that when the researcher

enters the social world of the actor that an empathetic viewpoint is taken to

understand their view on the world; often this can prove difficult for the researcher.

In relation to interpretivism it is important to realise that the researcher’s viewpoint

will be included in the research outcome because it becomes simply impossible to

separate the viewpoint and the social world around. (Williams 2000)The process of

interpretivism is mainly based on attempting to gain an interpretive understanding

of the social phenomenon that is being investigated. The Interpretivist approach to

research can provide in-depth insights into the world in which the researcher is

investigating however it also has its downfalls. (Bryman & Bell, 2007) Generalisation

is one of the biggest concerns when carrying out research in an interpretivism

47

manner. Often interpretivists deny all use of generalisation within their research and

ignore such issues however generalisation is inevitable within interpretivist research.

(Collis & Hussey, 2014) Williams describes an interpretivist attitude to generalisation

as

“The interpretivist attitude to generalisation is rather like that of the Victorian middle classes towards sex. They do it, they know it goes on, but they rarely admit

to either.” (Willams, 2000 pp 2)

Therefore for the purpose of such research it will be addressed as a limitation within

the research and shall be discussed further within the findings section. The majority

of research based papers on interpretivisatism will make generalised statements but

will not comment on the basis for such. However it may be mentioned in the passing

term of ‘external validity’. The idea of generalisation is not fully supported by all

academics as it is the belief of many that generalisation within interpretivism is not

the case. (Williams, 2000) Norman Denzin claims that interpretivists actually reject

the generalisation viewpoint and such a method never aims to draw random samples

of human experience. (Denzin, 1995) At the centre of the argument is the belief that

individuals are free to attach different meanings to the same action or circumstance,

as different actions can arise out of a similarly expressed meaning. Therefore,

because of such, there is too much variability to allow generalisation for a specific

situation.

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To summarise the key parts of the research method chosen for the purpose of this

dissertation, a list of factors relating to interpretativism has been listed below.

Interpretivism – Qualities and attributes

QualitativeSubjectiveSocial reality is subjective and social constructedThere are multiple realitiesKnowledge comes from subjective evidence from participantsThe researcher interacts with phenomena under study(Saunders et al, 2007)

After examining the two different types of approaches it was an interpretivism

approach that resulted in being most appropriate for this research.

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4.3 Inductive and Deductive Approach

Deductive approach is described as

“Research approach involving the testing of a theoretical proposition by the employment of a research strategy specifically designed for the purpose of testing”

(Saunders, M 2007 pp165)

Inductive approach is described as

“Research approach involving the development of a theory as a result of the observation of empirical data” (Saunders, M 2007 pp168)

Deductive can be described as a top down approach which deals from the general to

specific using secondary data such as books, journals, internet and databases.

Trochim (2006) describes the process of deduction as starting with theory about your

chosen topic, which then is developed into a hypothesis from what is then tested

and then a collection of observations in relation to the hypothesis. (Trochim, 2006).

Lastly we test the hypothesis with the data collected and this either confirms or

clashes with the original theories.

However when looking at induction Trochim (2006) describes it as the opposite to

deduction as it works in a different way, it moves from specific observations to

broader generalisation therefore we can we refer to as a bottom up approach using

primary data. After moving to the generalisation it begins to detect patterns and

regularities while creating some tentative hypotheses that will be explored and then

develop some general conclusions or theories.

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Deduction Induction

Id

(Saunders et al, 2007)

4.3.1 Advantages and Disadvantages of Deduction and Induction

With any approach to research there will always be advantages and disadvantages

however the following section will discuss these and provide a balanced decision on

which approach is best suited to the current research approach.

1. Advantage Deductive - Time

Generally deductive will be a lot quicker to carry out, although time will be needed

before the research is carried out in order to set up the study data is collected. The

data within a deductive approach is usually completed once and therefore is much

easier to accurately predict a time scale for the research.

2. Disadvantage Inductive – Time consuming

Although Inductive research will be a lot more time consuming the results produced

are collected over a much larger period of time and therefore the data collected

naturally emerges from the research.

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Theory

Hypothesis

Observation

Confirmation

Observation

Pattern

Tentative Hypothesis

Theory

Current Research position – Time constraints are not of an issue for this research

project therefore Inductive would be best suited at this point.

3. Advantage Deductive – Lack of risk

The risk entailed within deductive research is much less, there is always risks

however they are not as strong for example some questionnaires may not be

answered.

4. Disadvantage Inductive – Risk involved

With inductive research there will always be the worry of non-useful data being

established e.g. no research patterns or emerging theory.

Current Research position – Although the risk entailed is a worry for the author it is

believed to be worth the challenge as the possibility of what data could be produced

outweighs the negative.

4.3.2 Current Research Project

The current research project will lean towards an inductive approach, it is felt to best

suit the research project as the data collected is based around the perceptions and

feelings of the individual respondents and is also using a qualitative format which

best suits with an inductive approach to research.

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4.4 Primary and Secondary Research Throughout this dissertation both secondary and primary research have and will be

used to gather the information and data needed for investigation into the world of

service quality and the companies being compared. The diagram below represents

the general process of research and what flow it should ideally carry out.

4.4.1 Secondary Research

Secondary data can be described as

“Data collected from an existing source, such as publications, databases and internal records” (Collis & Hussey, 2014 pp59)

Secondary data can provide useful insights into answering or even partially

answering your research question. Data can come in many different formats from

raw to publish and can range from government reports to minutes of meetings.

(Saunders et al, 2007)

It can have a particular dominance within a qualitative research project as it can

often provide a general context for the researcher to use, as the research project is

taking a qualitative approach then secondary research will be heavily depended

upon to build a background to the information.

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Mentioned above, secondary data can come within many different formats and each

of the types pose challenges as some sources are easier than others to find or be

allowed to use. Organisational documents are an important source of secondary

data, many of which are freely accessible, for example annual reports, information

supplied to shareholders, press releases etc. However some company documents are

not so easy to access and permission from the organisation may be needed in order

to gain access. (Blumberg, 2011)

The current research project will use secondary data for investigation into the

service quality model and the specific types are as follows: journals, websites, books,

report and diagrams. All of the previously mentioned types have been used so far

and will be used continually in conjunction with the primary research. With any

research there will always be positives and negatives therefore a brief investigation

into said areas is required and will be evaluated at the end of this section to provide

the current research with the best end result for the use of secondary data.

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4.4.2 Advantages of Secondary Data

One of the main advantages with secondary data is that this approach saves time

and money. Discussed previously, secondary data is already available and can be

immediately analysed which is much faster than collecting primary data. (Blumberg,

2011) Secondary research does provide the research with an easier starting point for

investigation and also reduces the amount of money needed for the topic. Primary

research can become costly if it is to be carried out numerous times throughout

however will be collected for this research topic aswell. (Blumberg, 2011) Secondary

data used within this research project was all free due to access to journal websites

and the university library; both have provided valuable sourcing of secondary data to

use within the research of service quality.

Another advantage of secondary data, generally depending on the source, is that

such data is often high quality, particularly data from well-known research sites such

as Emerald and Mintel. Respected research sites normally provide secondary data

that has been collected by experts and so in turn gives the research a level of

credibility. Secondary data that has been used in relation to the current research

area has been gathered from creditable sites such as Mintel, Sage Journals, Emerald

and many more. (Blumberg, 2011)

In addition an advantage of secondary data can also be that it has not been collected

on the basis of the researcher analysing the data it can fall into line with the

proposed area of study and can be used in-conjunction with other secondary sources

to provide the researcher with a broad image of the topic. (Sekaran & Bougie, 2013)

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4.4.3 Disadvantages of Secondary Data

Secondary data has some disadvantages for example the main issue is that they were

not researched with your problem in mind. Thus they may not fit perfectly with the

research problem being investigated. (Saunders et al, 2007) In order to ensure the

data is relevant certain questions need to be asked before readily using the data.

Some examples of such are as follows

1. Is the information provided in the secondary data sufficient to answer your

research question?

2. Does the secondary data address the same population you want to

investigate?

3. Was the secondary data collected in the relevant time period (Saunders et al,

2007)

The above questions need to be answered when assessing the secondary data and

whether or not it is relevant and useful. Secondary data can also pose the problem of

not being detailed enough which results in the information being too generalised for

your specific research problem. (Saunders et al, 2007)Although this data gives you

some information on the topic is does not provide as deep an insight as you wish for

your research. Therefore to resolve this problem primary research will be used, as

stated previously, to fill the gaps within the research and to work in sync with the

secondary data.

Secondary data also has to be assessed in terms of the quality of the data being

used. This can be a major disadvantage if the data used is bias or of poor quality.

Therefore it has to be examined as to whether it is relevant and useful for the

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researcher’s particular research topic. A main problem with company reports etc. is

they are usually written for a specific purpose and also because they are reporting on

their own business may present information strategically. (Collis & Hussey, 2014)

Therefore if information such as this is to be used it is vital the researcher examines

the other sources of secondary data not created by the organisation to gain the

whole view of the problem. To summarise the above the following three areas where

of most concern to the current research project:

Relevant to chosen topic

Lacking detail

Quality - bias

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4.4.4 Primary Research

To define primary research it has been stated that the basis of it is as follows

“ Generated from an original source such as you own experiences, surveys, interviews or focus groups” (Collis & Hussey, 2014 pp 196)

From the above definition it can be stated that the primary data collected is carried

out by the researcher themselves and the methods chosen generally coincide with

the other research paradigm, for example whether the researcher has chosen

qualitative or quantitative. Primary data can be carried out in a number of different

formats such as surveys, questionnaires, in-depth interviews, focus groups and many

more. However once again this is directly related to the choice between qualitative

or quantitative, both of which shall be examined and critiqued. (Bryman & Bell,

2007)

4.4.5 Overall Advantages and Disadvantages Primary and Secondary

Secondary Research Advantages DisadvantageSaves time and money Not specific to your

problemHigh Quality Generalised

Primary Research Advantages DisadvantagesSpecific to the research CostlyResearcher gains viewpoint

Quality could be questioned

4.4.6 Definition of Quantitative research

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A quantitative data approach is stated as

“Entailing the collection of numerical data and as exhibiting a view of the relationship between theory and research as deductive, a predilection for natural

science approach (and of positivism in particular)” (Bryman & Bell 2007 pp154)

It is clear from the above definition that quantitative research takes a positivism view

to the world of research and is mainly focused on the collection of numbers and

facts. The numerical data can range from simple counts such as frequency of

occurrences to more complex numerical statistics such as test scores, prices or rental

costs. (Collis & Hussy, 2014) This data then has to be analysed for it to be of use to

the researcher and as such can be demonstrated within tables or diagrams. If the

adoption of a quantitative process is selected then it becomes essential for the

researcher’s data to be highly specific and precise. Measurement is an essential

element of said research process. (Johnston et al, 2007)

4.4.7 Definition of Qualitative Research

In contrast qualitative research is defined as

“Transient, understood only within context and are associated with an interpretivist methodology that usually results in findings with a high degree of

validity” (Collis & Hussey, 2014 pp130)

From the above description that a qualitative method of research is based on the use

of materials such as text, images and audio such as recordings of focus groups.

However the challenge for the researcher when applying qualitative research

techniques appears when attempting to retain the integrity of the data collected. In

addition when collecting qualitative data it is necessary that there is some context to

the research, for example time. Location influences such as social or political all

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result in providing the data collected with contextualisation gathered throughout the

literature. (Collis & Hussy, 2014)

4.4.8 Differences between Qualitative and Quantitative

Qualitative and quantitative researches have some major differences that set them

apart from each other. The main differences are listed below, summarizing and

justifying the choices made for this research.

Quantitative QualitativeNumbers Words

Point of view of researcher Point of view of participantsResearcher distant Researcher close

Theory testing Theory emergentStatic ProcessStructured Unstructured

Generalisation Contextual Understanding

(Bryman & Bell, 2007 pp 426)

The seven points starting the differences between the two processes are only some

which set them apart however to the researcher’s knowledge these are the most

important in relation to the current research topic. Upon choosing between the

quantitative or qualitative method it is important to fully examine the key

advantages and disadvantages. Both methods have been criticised in a number of

different areas and the following section shall examine the critics and result in a final

choice for the purpose of this research.

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4.4.9 Limitations of Quantitative research

Failure to distinguish from natural world - One of the main criticisms of quantitative

research which has been mentioned previously within this dissertation is that the

researchers fail to distinguish people and social institutions from the world of nature.

To examine further it is the treatment of the social world in the same manner as one

would treat the natural world. Schutz’s argument is relevant in relation to the

phenomenon, which is turning a blind eye to the differences between the social and

natural world does not work well (Schutz, 1962) by simply ignoring the fact that

individuals interpret the world around themselves whereas such capacity cannot be

found amongst natural science objects as they are incapable of such interpretation.

(Bryman & Bell, 2007)Therefore it can be deduced that research into people and the

social world through using the quantitative technique could be high questioned over

its credibility within the research world.

Reliance on Instruments - Another key criticism of quantitative research would be a

heavy reliance on instruments and procedures hindering the connections being

formed between the researcher and everyday life. Many of the techniques

commonly used rely heavily on instruments being distributed amongst the subjects,

for example structured interviews and self-completion questionnaires. By adding a

reliance on such instruments takes away from the bond that may be created

between the researcher and the subject and this could have a detrimental impact on

the findings produced. (Bryman & Bell, 2007) However when attempting to collect

data in this manner it is important to factor in if researchers know if survey

respondents or interviewees have the pre-knowledge to answer the questions.

Therefore if a set of respondents answer a questionnaire or interview questions on a

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certain topic, is it certain that they fully understand what it is and where it is of

concern within their everyday lives? To examine even further is it possible that the

respondent’s answers are actually related to their everyday lives or whether their

actual behaviour varies with their actions? (Bryman & Bell, 2007) The above points

are brief insights into the world of criticisms relating to quantitative research and

give a viewpoint on where quantitative research could be discredited for certain

reasons.

4.4.10 Advantages of Quantitative

Objectivity is the main advantage of quantitative research, the independent and

dependent variable is examined in detail therefore allowing the researcher to be

more objective about the actual findings of the results as there are facts and figures

produced through the research. (Jones, 2014)

Ultimately organisations will favour a quantitative research approach as they are

provided with specific details to enforce the findings therefore it is largely used

because of its believed credibility. (Jones, 2014)

4.4.11 Limitations of Qualitative Research

Subjective and impressionistic – These are two criticisms most common amongst list

of critiques in relation to qualitative research. The criticism includes that the

researcher’s method is unsystematic about what is significant/ important and the

close relationship that usually forms between the researcher and the subjects being

studied. In general, qualitative research normally opens up in a relatively open ended

manner and goes on to narrow down the research area in question. The respondent

of the research is given few clues as to why one specific area was chosen. (Saunders

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et al, 2007) To contrast this with the quantitative approach such research generally

leans towards the problem formulation of the work being stated. Through the

approach of qualitative research it is evident that the subjectivism is a key area of

criticism.

Generalisation - Mentioned previously, generalisation has been an issue within

research and as such is an area of disadvantage for the qualitative approach. It has

been suggested that said research is restricted and when participation, observation

or unstructured interviews are conducted with individuals in a certain organisation it

can be argued that it is impossible to predict how the findings should be generalised

to relate to other settings. (Bryman & Bell, 2007) The question asked here is how can

one or two cases be representative of all cases? How can we treat Perlow’s 1997

research on the work-life balance of engineers in a high tech corporation in the USA

as representative of all software engineers? The answer is simply ‘no’ as the

generalisation is related to the theory and not a particular area such as software

engineers. (Williams, 2000)

Small Sample Size – Qualitative research generally does not reach as many

respondents as quantitative research as the number of respondents for interviewing

would generally be much less as those who would respond to a questionnaire

therefore it can be questioned where qualitative research can reach the amount of

individuals required to provide an even result from the data. (Bryman & Bell, 2007)

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4.4.12 Advantages of Qualitative

Qualitative research does not require a strict plan to be followed when carrying out

the research; this is a main advantage of qualitative research. The researcher has the

ability to let it flow naturally therefore is extremely useful in the early stages of

research when the exact area of study has not been decided yet however still allows

for general research to be carried out. (Jones, 2014)

In addition qualitative research generally produces information which is rich in data

and detail for the researcher to examine. The production of such data allows for an

in-depth view of the chosen research topic and is particularly useful within the

context of social research and how it affects individuals. In relation to the current

research the above advantage is the main justification for qualitative research being

selected. (Jones, 2014)

4.4.13 Specific Approach Chosen

Overall when examining all of the previous information, for the purpose of this

research a qualitative approach will be taken when examining the service quality as

the research will rely heavily upon the use of interpretation of the respondents’

thoughts and feelings. In addition the quantitative approach involves teasing out the

main factors that represent SERVQUAL and E-QUAL in the market sector therefore is

not appropriate when applying the theory in the current research topic. Therefore

further investigations into the methods that are best suited to qualitative research

are required for the purpose of this dissertation.

Research interviews are a broad term which can include many different types of

research approaches when conducting primary research. They also come in many

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different formats from formalised and structured, which use standard questions for

each respondent or informal unstructured conversation between the respondent

and the researcher. Each of these categories fall into typologies that can classify the

differences. However within each of the typologies there is a lot of overlap therefore

the main areas shall be discussed further.

4.4.14 Types of Interview

Structured Interviews - There are three main categories that research interviews fall

into and the first of the three is structured interviews. The most common method of

structured interviews is questionnaires which are normally standardised and/ or

identical for all respondents. The standard process includes reading aloud the

questions, recording the answers in a standard method to ensure consistency within

the data collected. (Saunders et al, 2007)The formation of structured interviews has

a standardised and persistent theme therefore they fit best within quantitative data

and are referred to as quantitative research interviews. (Saunders et al, 2007)

Although a highly creditable method for research they are not suitable for the

purpose of this dissertation; in order to gain a full perspective of the topic it is

necessary for the respondent to be unhindered in their responses.

Semi-structured interviews – The second of three; the researcher will prepare a list

of themes and questions however these may vary between interviews. The amount

of questions may vary each time depending on the type of respondents within the

interview, for example questions may be added throughout the duration of the

interview to develop into an answer and also depending on the flow of the

conversation some questions may not be needed. (Saunders et al, 2007) Since the

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conversation can flow in many different ways throughout the research, the data

would be ideally collected using auto-recording or even note taking.

Unstructured Interviews - Finally the third choice would be unstructured interviews

which are generally informal and would be used if the research was looking to

explore a general area of interest. In relation to the questions there will be no list of

exact questions however the researcher has to have a clear idea of what they want

to collect data on. (Bryman & Bell, 2007) In this situation the interviewees will have

the chance to speak openly about any thoughts or feelings they have relating to the

topic, the interviewees perceptions generally guide the flow of the interview and

data that is collected.

Overall for the purpose of this research semi-structured interviews will be carried

out as they give the researcher the possibility of adding or removing questions

depending on how the interview is going. However they also allow for the interview

to have a touch of structure about the research topic which will allow for the

interview to follow the path required. (Saunders et al, 2007) In relation to the

current research being discussed the interviews will be carried out on a one to one

basis in a face to face meeting situation to develop a bond with the respondent,

which will allow the conversation to flow better and also ensure accurate data

collection. Although the decision has been made regarding the path the interview

will follow, the challenges are not finished as interviewing is a complex matter. Aaron

Cicourel wrote almost 50 years ago a sentence that still summaries how difficult

interviewing can be for the interviewer

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“Interviewing is complex and difficult because it necessitates presenting, establishing and maintaining appropriate and possibly conflicting roles” (Cicourel,

1964 cited Roulston, 2014 pp 277)

When difficulties do occur during interviewing they are often cast upon the

interviewer as it is assumed they have failed to build a rapport or establish an

understanding of the purpose of the interview. There a number of different reasons

why the data collected from interviews fail to gather rich evidence, however as

stated a lot are around the basis that it is the interviewer’s fault. The main concern

for this research is the interviewees may not be cooperative with the researchers

therefore selecting the ‘best source’ of information is necessary. An example of such

a study which did not would be Lareau in 2000; she carried out research into family

life and therefore interviewed fathers about their children. However the relationship

was too close to gain a full perspective on the situation, and because of such they

were often lacking in detail and did not provide information they deemed as bad,

which in turn resulted in the data collected being hindered. (Roulston, 2014)The best

source of data is therefore necessary to avoid problematic behaviours such as

inconsistent and contradictory information, lack of cooperation, question evasion

and/ or difficulty in comprehending questions. Therefore the interviewer needs to

ensure the interviewees that are being used are appropriate to the topic and can

provide objective and factual answers. Once the appropriate interviewees are

selected the next challenge comes when attempting to remain unbiased. (Rossetto,

2014) In order to continue to collect accurate data it is vital that the researcher stays

subjective and retains boundaries between themselves and the interviewee.

Through a study into the challenges and risks of qualitative interviewing by Rossetto

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in 2014, the factor of retaining boundaries is highlighted as key to collecting un-

skewed data,

“Researchers must carefully maintain boundaries to protect the researcher-participant relationship and ethical obligations to do no harm” (Rossetto, 2014

pp468)

Therefore the main statement to remember when conducting research and

attempting to remain subjective is to carry out the actual role of a researcher which

is listener, learner and observer and not to council the interviewee. (Rossetto, 2014)

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4.5 Sample 4.5.1 Background of Sampling

Choosing a sample for any research is a very important step when carrying out

research as it is rarely practical to study the whole of a population. Therefore the

main aim of any sampling within research is to draw a representative of the

population so that the results of the sample can be generalised back to the

population. (Marshall, 1996) With any area there are always advantages and

disadvantages.

Advantages include that sampling as stated involves a smaller number of subjects

and is often more time efficient, less costly and often more accurate as control is

easier to gain.

Disadvantages include potential bias in who is selected which in turn may lead to

error when interpreting the results and also decreases the ability to generalise the

results beyond who was actually studied. (Marshall, 1996)

However it is felt that the advantages outweigh the disadvantages and therefore is

one of the most popular approaches when sampling for a qualitative research

project, which is to use probability or random sampling. This is where all members

have the same chance of selection; however a variant of random sampling is

stratified random sampling or area sampling, which is the study of sub groups in

greater detail. (Lunsford, 1995) In the current research the use of stratified or area

sampling is most appropriate due to the nature of the question and the approach

being used.

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4.5.2 Sampling for proposed research

For the purpose of the current research the sample shall be based purely on females

as through the previous research into the retail sector it has become apparent that

females have the most expectations about the stores and the service they receive. In

relation to age range the chosen age groups are 34-44 and 44-60. The ages chosen

span a large amount of years however this is due to the fact that it is an investigation

and comparison directly into Next and Marks & Spencer. Stated above “Next appear

to cater to all customers no matter what age demographic they fit into”.

(Mintel2014) This remains true for Marks & Spencer as well because both

organisations compete directly with each other as they have very similar

demographics. Therefore for the current research it was deemed necessary to have a

wide age range within the sample in order to retain a true picture of their current

customers and their values. In terms of social-economic factors generally stores will

have a direct market, for example AB customers, however this is not the case for

Marks & Spencer and Next as they have a wide range of customers. The market

background above has provided evidence to support such a claim as it is stated that

“Next is the closest to average with a wide range of social-economic groups” (Mintel,

2014) Another specification of the sample is that users and non-users will

participate. The research is into the service quality online it is thought to be

important that a variety of participants are used for the discussion. The

generalisation for both the social-economic factors and the age could lead to

criticism about the true reflection of data collected; therefore within the research

specific questions relating to both age and social-economic factors will be included

to ensure that all categories will be included. The table below represents the chosen

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sample for the purpose of this research as discussed in chapter two, the following

sampling criteria were selected as the research into the retailing sector highlighted

the following areas:

Females – Primarily females spend a lot more on clothing and invested more

into retail organisations, Next and M&S have a large amount of female

customers.

34-44 and 44-54 – The age range for both organisations customer was highly

varied therefore a large age range was selected for the research.

Social-Economic – There was no dominating class of customer that emerge

from background research therefore the category was left open.

Category Sample Chosen

Gender Female, users and non-usersAge range 34-44 and 44-54Socio-economic All types

Sex Age User/Non-user Next/M&S Label

Female 54 User Next 1A MumFemale 34 User M&S 1B PamelaFemale 38 Non-user M&S 2A BarbaraFemale 51 Non-user Next 2B Maureen

The researcher feels the above is representative of the area needed to collect

relevant and valued data.

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4.6 Overall Research Design – Advantages and Disadvantages specific to the research For the purpose of this research a specific approach shall be taken that the

researcher feels best fits with the topic and the other specific preferences of the

researcher. Overall for the research primary and secondary research will be carried

out with a qualitative viewpoint being used to gather the data therefore semi

structured interviews have been chosen as they lend themselves best to qualitative

research. The following will examine the true advantages and disadvantages of the

techniques specific to this dissertation.

Advantage:

Secondary research has already been used through the dissertation so far from

sources such as Mintel, Emerald, Sage journals and a wide variety of research from

academics such as Saunders, Collis and Hussey and many more. Each of the texts

used give a high credibility to the research due to their recognition within the

academic world. The variety between textbooks and journals also adds value to the

research as there is a range of different information which provides scope to the

research.

Disadvantage:

However the use of secondary information can also be a weakness of the research.

Which has been taken into consideration by the researcher as the data collected

through secondary research was not collected specifically into the aspect of service

quality online in relation to M&S and Next therefore generalisation of the

information could become a key downfall of the research. When assessing the issue

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it was decided that secondary research was compulsory to gain a true perspective of

the topic and as long as the researcher accounted for the issue a true perspective

would be gained.

Advantage:

Primary research will also be used in order to fulfil the research question, which will

include four semi-structured interviews; they will be carried out by the researcher

themselves and will be conducted in an appropriate manner in order to retain

professionalism within the research. Carrying out interviews specific to the area

provides the research with even more credibility as it demonstrates a key

understanding of the topic and also allows for the researcher to ask directly related

questions, which provides the topic with a further understanding than secondary

sources alone.

Disadvantage:

It has to be acknowledged that the researcher has a vested interest in the research

outcomes and therefore the research being biased could be a criticism of the

outcomes. So in turn it is vital that the questions proposed are clear, persist and the

respondent discusses the most within the interview to gain their view and not a view

skewed by the researcher and their previous background knowledge.

Advantage:

Mentioned above a qualitative approach has been chosen to collect the data as it is

believed that the research topic and area is best suited to an approach which

accounts for the interpretation of feelings and different viewpoints instead of just

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facts and figures. The research main area is to investigate how customers of the two

shops perceive the online experience of M&S and Next and to fully understand why

Next is taking over. Therefore it is vital to gain an understanding of feelings and

perceptions in order to gain the true research outcome desired.

Disadvantage:

However as the project will be using mainly feelings and interpretation data then the

question of the credibility of the data collected could be due to the lack of numerical

or factual data which some academics see as necessary for the research to be

credible. The researcher is fully aware of the possible issue and still remains with the

view that research with facts and figures would not produce an accurate result for

this topic however is mindful of the criticism.

Overall it is believed that if the previous guidelines are followed there should be

minimum criticism of the research outcomes and allow for a creditable investigation

to be produced through a variety of research methods and techniques.

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Chapter 5 – FindingsA copy of the topic guide used within the in-depth interviews is represented in

Appendix 4. The following is a representative of the findings collected from the topic

guide.

5.1 Results of In-depth interviews Key - +, -, n (Positive, Negative and Neutral)

1. What do you define a service as? (Service definition)

“A service is something I would expect a store to provide along with a product or on its own” (1A)

“A service is something someone gives or does for you” (2A)

Comment:

The respondents all had a general idea of what a service was and what they

perceived a service to be however were not familiar with the specific characteristics

of the service. Therefore the research interview was able to carry on as they did

understand to a certain degree what was meant by the term service. Typically unless

an individual has studied a service then an exact definition would not be of

knowledge to the respondent.

Summary:

Sample 1A 1B 2A 2B

Tendency + + + +

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2. Is it important to you that the service you receive each time is the same? If

so why? (Heterogeneity)

“Yes as I like continuity within my services” (1A)

“Yes if the service is good and I receive it more than once I will continue to return” (1B)

“No not greatly important as I would not want a bad service repeated” (2B)

Comment:

Overall the interviewees agreed that the same service again and again was important

to them and that it would urge them to return if continuity was received. Samples

Next Online and M&S Online were a lot more concerned with receiving the same

service each time even though they were based in different age ranges. It is felt that

this is related to online users as they generally depend more on the service being

excellent in order for them to receive their product.

3. Do you enter a service with a preconceived idea of what you will receive? If

so is this because of previous experiences? give examples. (Service quality)

“Yes thoughout my time of shopping online I developed a preconceived idea of what I should receive from a service therefore I do enter expecting certain aspects” (1A)

“Yes as I am using the same organisation I expect what I have received before or even if I am using somewhere different I expect from their service what I receive from others” (2B)

“When using a company I have already used before then yes, I enter with the idea of what I will receive is what I received last time, however if it is a new company I have not used before I do not enter with a preconceived idea” (2A)

“I expect all online services to be the same across the board so enter with preconceived ideas” (1B)

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Comments:

From the above four comments there is a general consensus that the answer is yes,

however the interviewees differ slightly. Online users for Next and M&S agree they

enter with preconceived ideas of what to expect from a service as they generalise

companies to receive the same aspects from all companies. However the offline for

Next and M&S users believed overall that if it is a new company they do not enter

with an idea of what they will receive because they have not used them before. This

could be representative of the fact they shop differently.

Offline users generally do not have preconceived ideas.

Summary:

Sample 1A 1B 2A 2B

Tendency + + - +

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4. If you do not receive what was promised from a service would you use

them again and why? (Reliability & Service quality)

“Only ones I feel loyal to i.e. have used a lot before” (1B)

“Give one more chance to see if it had improved” (1A)

“Would use again if particularly liked the company or couldn’t get what I wanted anywhere else” (2B)

“No would be put off and try to avoid at all costs” (2A)

Comments:

The internet users and also one of the offline users agreed that they would give the

company another chance if they particularly liked the company or used them a lot in

the past. However the opinion was different for M&S offline user as they stated they

would not use again at all. This could be down to personality or practically bad

experience in the past therefore the general view would be that interviewees would

use again.

Summary:

Sample 1A 1B 2A 2B

Tendency + + - -

5. What do you expect most from the company supplying the service (out with

the actual service)? (Responsiveness & Empathy)

“Friendly and helpful employees over the phone or face to face” (1A)

“Deliver on their promises” (1B)

Comment:

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The majority of samples felt that generally if employees where helpful and pleasant

to deal with they would be fulfilling their expectations of the company’s service.

They did not need anything fancy to be happy with the service therefore priority

should be placed upon staff members to continue to deliver good customer service,

either offline or online, as both felt it was important.

6. If you were to purchase from (Next/M&S) what is you perception of the

service you will receive? (Perception)

“Excellent service” (1A)

“Very good” (2B)

“High quality” (1B)

“Professional service” (2A)

Comments:

All respondents believe that service from both companies would be a high level

service. They believed this because of both company’s reputation upon the British

high street; mentioned previously both companies are synonymous with Britain and

have been trusted by British shoppers for a number of years.

Summary:

Sample 1A 1B 2A 2B

Tendency + + + +

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7. When using (Next/M&S) have you ever seen an advert promoting product

or service that they offer and what you actually received was different?

(Interpretation gap)

“No always the same” (1B)

“No never experienced such problem” (1A)

Comments:

Again all respondents agreed that when it came to the continuity of the stores

providing what they had advertised, it was always the same. Both companies are

large well established organisations therefore the researcher predicted the result

however now has been guaranteed.

Summary:

Sample 1A 1B 2A 2B

Tendency + + + +

8. When buying a product from (Next/M&S) is there any additional services

they could add to ensure you buy from them again? (Product)

“Specific times for delivery not just a slot time” (1A)

“Free delivery” (1B)

“Cannot think of anything” (2B)

“Catalogue, nothing would greatly add” (2A)

Comments:

The samples here differ and agree, which is of interest to the research. Both online

users for Next and M&S gave specific examples of what they could add to services

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however both offline samples for the two companies agreed that nothing could be

added for them. Therefore this is seen as a direct result of how the individual uses

the company can have an impact on what is expected from the services provided.

Sample No/YesOnline YesOnline YesOffline NoOffline No

Online samples have more additional services that would be of benefit both organisations should investigate into this area.

9. Do you feel price of delivery service is a fair price or could they do

something to improve this? ( 7 Ps)

“Don’t think they are fair especially when spending a lot of money with the company” (1B)

“Fair but should get allowances if you shop a lot with them” (1A)

Comment:

Both Next and M&S online users agreed that the organisation should provide

something back to their customers if they are loyal to the brand otherwise they feel

that the charges are fair. This could be directly related to the fact that humans like to

feel valued in their choices and an organisation recognising their loyalty with free

delivery would feel like a bonus to the individuals.

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10. When shopping in a store do you feel happy with the people service? Or

when shopping online do you feel it is missing the people service aspect or

do you feel it is still interactive with employees if need to be? (Product 7 Ps)

“No still interactive through online as there is live chat and helplines if needed” (1A)

“Wouldn’t say the service is equal between online and in store, better service through in store” (2B)

Comments:

The online sample was in general agreement that they received enough service and

it was there if they particularly needed it, however the in store shoppers did not feel

any consistency between what they received in store and online. This factor is linked

to the difference in experiences you receive when shopping online and in store as

customers who generally shop in store on a regular basis will feel that lack of service

and interaction if they suddenly switch online.

Summary

Sample 1A 1B 2A 2B

Tendency + + - -

11. Could you please go on the website and find (black and white stripped dress

for Next and butterfly cardigan for M&S) then evaluate how you found

using this service? (Process 7 Ps & Efficiency SERVQUAL)

“Easy to find if navigated through search facility on web page” (1A)

“Not difficult to find because I know the website and where to narrow the search down” (1B)

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Comments:

The interviewees expressed concern for just simply looking through the products to

find the correct one due to the large amount of volume on each site, however once

the narrowing area was used then the product was found on both sites. Through

watching the interviewees navigate around both sites it would seem they were on

par with each other in terms of accessibility.

Summary

Sample 1A 1B 2A 2B

Tendency + + N N

12. When you have bought from the company before has the delivery service

been easy to use? (Efficiency SERVQUAL)

“Yes very easy” (1B)

“Yes self-explanatory” (2A)

Comments:

Overall the samples of both Next and M&S found the delivery service easy to use.

Both organisations use large couriers to ship their goods therefore such simple and

easy to use service should be provided.

Summary

Sample 1A 1B 2A 2B

Tendency + + + +

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13. Upon looking at the site and the companies store would you say it is

presented well? Explain what you regard their image as? Or brand?

(Physical evidence 7 Ps)

“Classy and fancy layout of store and site” (1B)

“Very British middle class” (2A)

“Well presented, variation of products however more women’s” (1A)

“Did like the layout, consistently classy” (2B)

Comments:

The opinion given in the samples for M&S vary slightly with sample M&S online user,

perceiving the store to be that to be more the high end market of retail whereas

sample M&S offline describes it as middle class, therefore there are some

discrepancies between M&S’s customer image. In terms of Next both samples agree

they do like the brand image and it is seen as generally high end. Therefore when

contrasting the two companies it is evident that Next has come out on top with the

most consistent image from their customer’s perceptions.

Sample Adjective to describe company1A Well-presented (Next)1B Classy (M&S)2A Middle class (M&S)2B Classy (Next)

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14. Through the number of times you have shopped within the store or

website, would you say they always had the item you were looking for? So

where you fulfilled with the product range? (Fulfilment ESERVQUAL)

“Have never not had what I wanted” (1A)

“No always had what I wanted and if they didn’t they checked the stock and found what I wanted” (2B)

“Haven’t always had my size a few different times I have been in which is off putting” (2A)

“Yes always had what I wanted” (1B)

Comments:

When comparing the experience of both companies given in the sample Next’s

sample was satisfactory however M&S’s sample had a negative experience with

product range and did not mention the extra help which the Next respondent

mentioned. Overall the sample answers provide the insight to experiences in terms

of fulfilment and also give an insight into the Next customer service being good. This

was not claimed for M&S.

Summary

Sample 1A 1B 2A 2B

Tendency + + - +

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15. Do you trust the company with your details i.e. do you feel they are

creditable company to buy from? (Privacy ESERVQUAL)

“Yes nationwide trust them” (1B)

Comments:

The above statement sums up the overall sample answers which were all a variation

of the above idea. Next and M&S both have the large national company aspect

which ultimately makes the majority of individuals trust an organisation.

16. Upon buying from the company do you view there being enough support

information for customers either in store or on their website?

(Responsiveness)

“Yes plenty of information on the website not as much in store” (1A)

“Plenty online to find out about the company however when asking in store they didn’t have information to hand” (1B)

Comments:

The respondents tended to agree for both organisations that it was easy to learn

more about the company and their policies on the website as there were specific

sections on the sites however employees were not as well versed in the information.

When prompting the question further within the interview it was evident that the

respondents felt like this in general about the majority of organisations. This is more

likely a direct result that websites can hold specific sections on whatever area the

customers are looking for information on, whereas employees may find it difficult to

remember such in-depth information.

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Sample Online Store1A + -1B + -2A + -2B + -

17. Would a good returns policy make you buy from the organisation again?

“Yes would like to know what the policy is before buying and whether it was good or not” (2B)

“No if I like the product I will buy regardless of the returns policy” (2A)

Comments:

The sample responses were varied however the majority ended up leaning towards

confirming that the returns service was important depending upon whether they

would shop there again. However when conducting the interview there was some

debate over how much it would affect their choices since if there was a product they

desperately wanted within a store with a bad returns policy they may be swayed into

using the store. Therefore although the service answer was yes there is room for

movement.

Sample Yes/No1A Yes1B Yes2A Yes2B No

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18. Have you returned an item before? If so how do you feel that experience

was? (Compensation ESERVQUAL)

“Yes experience was fine; courier was easy to use when returning” (1A)

“Yes have returned both online and in store the experience was fine no hassle both options were easy” (1B)

Comments:

Both organisations came out well in the sample responses therefore there is no one

winner when it comes to this area.

Summary

Sample 1A 1B 2A 2B

Tendency + + + +

19. When buying online would you like the option to talk to a live service agent

or would you prefer a phone call? (Contact ESERVQUAL)

“Prefer the chat system” (1B)

“Chat system too complicated to get answer prefer phoning and speaking to someone” (2A)

Comments:

The sample answers where split directly down the middle with the two internet

users preferring the chat system and the two store users preferring telephone

communication. This directly links to the fact that online users generally prefer to

use the internet for all aspects of their life however store users particularly like the

human contact, which is evident from the above answers.

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20. Overall could you describe the organisation and the service to conclude the

interview?

“Professional service and generally a good organisation with quality products” (2A)

“Easy and comfortable online service to use with high quality products” (1A)

Comments

Overall both organisations have come out relatively well through the interview

questions; however some key discrepancies have appeared between the two

companies. It is evident that Next customers are generally happier with the service

they receive and the products they are supplied with. So in turn it is M&S which has

some areas to work upon in relation to their service.

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5.2 Areas of theory applied to research The following areas shall investigate the research data collected and related back to

the appropriate theory detailed in the literature review.

5.2.1 Service Quality

Questions – 3, 4, 5 and 16

Service Quality Next M&S

Tangible N/A N/A

Reliability Positive Positive

Assurance N/A N/A

Responsiveness Positive Online

Negative Offline

Positive Online

Negative Offline

Empathy Positive Positive

5.2.2 Characteristics of a Service

Question 2

Characteristics of Service Next M&S

Intangibility N/A N/A

Heterogeneity Positive Online

Negative Offline

Positive Online

Negative Offline

Inseparability N/A N/A

Perishability N/A N/A

5.2.3 Extended Marketing Mix

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Questions – 8,9,11 and 13

Extended Marketing Mix Next M&S

Product Could be improved -

Online

No changes - Offline

Could be improved –

Online

No changes - Offline

Price Negative – Online Negative – Online

Place N/A N/A

Promotion N/A N/A

People N/A N/A

Process Positive – Online Positive – Online

Physical Evidence Positive – Online

Positive – Offline

Positive – Online

Negative – Offline

5.2.4 Gap Model

Questions – 6 and 7

Gap Model Next M&S

Knowledge N/A N/A

Delivery N/A N/A

Internal Communications N/A N/A

Perceptions Positive – Online / Offline Positive – Online / Offline

Interpretation Positive – Online / Offline Positive – Online / Offline

Service N/A N/A

5.2.5 E-SERVQUAL

Questions – 11,14,15,18 and 19

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E-SERVQUAL Next M&S

Efficiency Positive Positive

Fulfilment Positive Negative

Reliability N/A N/A

Privacy Positive Positive

Responsiveness N/A N/A

Compensation Positive Positive

Contact Negative – Online

Positive - Offline

Negative – Online

Positive – Offline

When assessing the above five tables it is evident that Next has flourished in all

categories examined apart from some small negative areas such as product and price

however these were areas that the respondents exclaimed negative views on in

relation to many organisations.

M&S have struggled in a number of different areas such as responsiveness offline,

heterogeneity offline, E-SERVQUAL fulfilment and Contact, all of which M&S should

examine and improve upon in the future. Recommendations below will cover the

specific areas.

5.3 Research Objectives Answered Review the current market situation for online clothing retailing and the

service they provide.

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A general overview of the market was provided and it was established that the retail

industry is changing due to a number of different factors such as the economic

climate and advancements in technology. Both of these factors have resulted in

customers requiring more for their money and so emphasis has been placed upon

the extra services that are offered with the product. There is movement within the

retail industry between who is currently leading and who previously was and specific

example of Next and M&S have been used to collect the data for the current

research project.

Critically examine the theoretical area of service quality online and the

relevant models.

The main aspects of theory in relation to service and online has been examined, the

following seven models where used

- Characteristics of services

- Service Marketing

- Service quality

- Marketing mix/extended

- Gap model

- SERVQUAL

- E-SERVQUAL

All which are defined within the theory section and limitations explained and

investigated. In addition the theory has provided the basis for the topic guide

created for in-depth interviews.

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Apply the theoretical area of Service Quality to the market area of clothing

retailing specifically Next and M&S

Mentioned above the topic guide was created and involved all of the theory relevant

and also applied to both Next and M&S. In addition the researcher sourced

interviewee respondents who were regular users of both organisations on and

offline.

Analysis of the above research

Analysis of the in-depth interviews has been depicted above, the question along with

direct quotes where provided to gage an idea of how the interview went. Along with

an analysis of the respondent’s answers to provide a summary, a section has also

been provided to relate the findings to the theory and has been represented with

tables displaying the tendency of the respondent’s feelings.

Make strategic recommendations for improvements in their area of business

Recommendations for both organisations and the general retail industry have been

developed below and also related to the extended marketing mix for the theoretical

backing.

5.4 Strategic Recommendations for Next, M&S and Retail Market Throughout the research a number of key points have been established for both

organisations that would be extremely helpful for future improvements. Therefore a

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number of recommendations will be made by the author in the following section to

conclude what the primary research has shown from the sample. The

recommendations will be in a general format for the retail industry and also specific

for each organisation. All recommendations will be priorities by numbering starting

from the most important (one) to least important (seven), in order to provide a

strategic approach to improvement.

5.4.1 General for all organisations

General for all Organisations – Priority five

Questions two and three highlighted a need for consistency through the services the

organisations provide. The majority of the respondents felt each time they received a

service they expected the same and would be put off if returning again, which could

in turn result in a loss of business. When relating this recommendation to relevant

theories, it is critical to examine the people element of the 7 Ps. Discussed above,

people is the essential element of service, and by training and recruiting the correct

staff allows for consistency within the service provided. Therefore overall the

recommendations for the general retail industry would be to ensure investment is

made into staff and the training provided so that consistency is achieved within their

organisations.

General for all Organisations – Priority seven

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When assessing if the customer expects anything additional to the service they are

receiving the answer was very simple: this was to receive pleasant and friendly

service from staff. This was still held as important by the online customers as they

expected the same friendly and pleasant service over chat boxes or phones.

Therefore the recommendation for organisations in both the offline and online

retailing business would be too focus on the way in which the retail assistants

provide the service to the customers, i.e. in an upbeat and friendly manner, as this is

where customers put a lot of focus on when using a service.

A specific approach to the above recommendation would be as follows:

Specific – Focus on customer service by implementing training courses through the

HR department.

Measureable – Providing scenarios of difficult customer service situations to the staff

before and after they have received their training to measure the improvements

made by the employees.

Action – Sending staff on outside training courses; firstly staff who volunteer for the

training as they feel they need it and then sending the staff who feel they are

competent within this area but need a refresher.

Relevant - By improving the customer service throughout the business will improve

the customer’s image of the business and also start to build up a loyal customer

base.

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Time-Base – The training course should be spread out over a month for all the

employees and tests held a minimum of a week after the training course to confirm

what information was held.

5.4.2 M&S Recommendations

Physical Evidence – Priority four

Through the interview respondents were asked about both organisations’ brand

image (question 13). While Next had all positive views on the stores and their image,

M&S did not receive the same response. M&S did receive some positive feedback on

their image as a brand however negative comments were recorded based around

their overall store image. The results have provided a non-cohesive view of the

brand and the image they are attempting to portray. In turn it would be

recommended that M&S attempts to make changes within their brand image by

ensuring their store and website provide the same image of a luxury high street

brand to retain consistency for their customers. They could incorporate more of their

signature green on the website, which is evident within their stores however its

presence is not as much online. Physical evidence is a large part of any business as it

distinguishes them from their competitors i.e. Next therefore M&S should use the

signatures to improve the physical side.

Specific – Re-branding of their clothing department should be implemented to

provide a more luxury and trendy feel to the store. In order to do so the price tags

and labels on the clothes should be changed to have a more modern feel. This

ultimately would be a step to test the water for the organisation before pouring

revenue into the rebranding. The green that is synonymous with M&S should be the

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main colour along with black writing. This would provide something different and

also provide the customers with the trendy feeling they currently desire.

Measureable – Further research should be carried out after the re-branding of the

labels to gauge what response it has had from the customers and also to ensure

where further rebranding on a larger scale is needed.

Action – Tags and labels should be changed and blatantly displayed to customers to

ensure that M&S is moving with the times. The action would be carried out through

the merchandising team for M&S which could work through a few starting examples

and go from there.

Relevant – By creating a new brand for the store moves the organisations further

into the 21st century and allows them to be consistent with their past image but

ready for the future of M&S. It also provides the store with a new customer base to

capitalise upon.

Time-Bound – Discussed above, ultimately this re-branding should be taken in stages

to ensure that it is successful with the customers. The development stages should

take up to six months and then reaction to the new tags and labels measured any

time between three and five months after to ensure all customers have had a chance

to shop with the new tags and also to measure how many new customers are

attracted.

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Product / Fulfilment – Priority three

Question fourteen highlighted a negative difference between the two organisations;

the interviewees were asked to state whether they have previously had a negative

experience with the organisation in relation to sizing. Next customers had never

experienced such problems as if their sizes were not available the staff would also

check the warehouse or find an alternative, however M&S customers did not feel

they received such service. The M&S interviewees generally found they often did not

have the size they wanted and no additional service was offered to help find the size

or an alternative. Therefore the recommendation for M&S would be to add such a

service to the employees’ duties when a customer cannot find what they want. By

implementing such an idea would allow customers to feel satisfied even if they

cannot get the product they want and also increase guaranteed sales for M&S. It is a

key aspect of the E-SERVQUAL model that customers feel fulfilled with their

experiences, this recommendation is necessary to fulfil customer’s expectations. The

recommendation for such service is directly correlated to the process aspect of the 7

Ps, as it would give the employees an extra step in their service process which would

improve customer views on the organisation.

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5.4.3 Both Organisations On and Offline

Process – Priority six

Question six and seven were both specifically based around Next and M&S, both

organisations received a positive result generally, customers felt they had a good

experience with the organisations and therefore the recommendation in relation to

the current customer service would be to continue on the path they are currently on.

The customers currently perceive that both organisations provide a very high quality

of customer service therefore the training and recruiting process functions positively

for the organisations. However it would be recommended to continue to review

these processes to ensure they remain up to date and fulfil the needs of the business

and their customers.

Process – Priority two

When investigating what additional services an organisation could add to gain the

custom again, there was a clear divide between on and off line. Online put a lot more

emphasis for extra services as they expressed ideas such as free delivery and specific

delivery times. This may be due to the nature of their shopping however it would be

a critical recommendation for both organisations to add, for example a bonus

scheme, where every so often a delivery would be free, and also to consider

arranging smaller windows for delivery, for example instead of the delivery slot being

8am to 1pm changed to 8am to 10am which will allow for easier delivery

arrangements for customers. By following either of these recommendations, both

Next and M&S would encourage a lot more return custom to their websites resulting

in online customers becoming brand loyal. In turn this would improve their service

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process which is a necessary aspect in service according to the extended marketing

mix. In order to develop either one of the above recommendations the following

plan would be necessary:

Specific – Reward customers by implementing a reward delivery scheme.

Measureable – The reward scheme could be implemented in the next six months

and advertising run in the next four months in order to create hype around the new

scheme.

Action – The reward scheme would be available for customers who shop regularly

online and therefore pay a lot in delivery charges, for example with every five orders

the sixth delivery would be free. There would be a marker upon the individual’s

shopping account that would inform them of the free delivery available that month.

Relevant – By doing so the results have shown that online sales for both

organisations would increase as the customers would feel a lot more valued by the

organisation and therefore be encouraged to spend more of their clothing

allowances within Next and M&S.

Time-Bound - Stated above the reward scheme should be rolled out throughout the

existing customers over a six month period with the aim of increasing the number of

customers using the site. A review of the plan’s success should be conducted six

months from the start date and then a further six months after to evaluate the

progress.

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Process / Contact – Priority one

When assessing what approach customers of both organisations prefer when

contacting an organisation, the offline users preferred to phone which Next and M&S

provide for customers. However the online customers generally preferred a chat box

system so they can enquire about any issues through their chosen medium of

shopping; neither Next nor M&S have such a system for their customers to do so.

The E-SERVQUAL model examined as a main theory for the research includes the

aspect of contact which is specifically about talking to live service agents online,

therefore in order to ensure online customers are experiencing all contact they

require this recommendation is vital to retain/gain a positive online presence.

Therefore the main recommendation for both organisations is to develop a chat box

for their customers to use in relation to customer and general enquires.

Specific – Develop a chat box system within both organisations to fulfil the gap that

the online customers are missing in their shopping experience. Conduct further

research into the specific area of chat box systems to develop what customers would

want specifically from the system.

Measure – There are many recommendations above for both organisations

therefore the recommended time frame to implement the chat system would be 12

to 24 months, to allow for the organisations to carry out the further research and

also develop the systems with their IT teams.

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Action – Once the research has been carried out the IT teams for each organisation

should be contacted and a plan set for the development process and how the chat

boxes will run should be set out.

Relevant – Through the research for this dissertation a key gap in both organisations’

websites has been highlighted as all online users interviewed stated that a chat box

system would be preferred when enquiring. Therefore it is highly relevant to Next

and M&S to improve this aspect as they may lose out on customers if their questions

cannot be answered in a method the respondents feel comfortable using.

Time-Bound – The system may be complicated to implement therefore a period of

12 months should be allotted.

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5.4.4 The research project

Further Quantitative Research

For the purpose of this research a small sample was collected to respond to the

interview portion of the primary research. Therefore it would be a key

recommendation for both organisations to further their research into quantitative

research i.e. questionnaires which will reach a larger amount of the sample.

Extending the research will provide the findings with extra validity and also ensure

that the sample chosen by the author was directly representative of the population.

In addition it would be recommended within the future research that more emphasis

is based more upon what Next is currently doing correctly in relation to other areas

of the business and this allow the organisation to currently overtake M&S. This also

examining further what M&S could improve on to become the market leader again.

Specific – Further research into the topic area, using the quantitative approach to

provide a wider scope of results produced and also the benefit of more results for

analysis.

Measurable – Once both organisations have read through the results for the current

research paper, each should deduce what the main areas of interest are for their

organisations and carry out the quantitative research as soon as possible.

Action – Gather a large number of customers for their organisation, varying

throughout the sample above and even extending to males to gauge a wider range

for the results.

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Relevant – Throughout the current dissertation some influential results have been

highlighted for both organisations and therefore further research would be

beneficial for the organisations as they can gain a further perspective upon the

customers’ views of the company.

Time-Bound – The quantitative research is part of the expansion of the research

therefore a lot more respondents will be contacted which ultimately will increase the

amount of time it takes to carry them out. Therefore the time scale for the research

to be collected and analysed should be over an eight to ten month period.

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6.1 Conclusion In conclusion, research has carried out a comparison based on two organisations,

Next and M&S, while assessing the current service quality of the retail industry. The

current research topic was chosen as it is relevant to the current environment within

the retail industry. Highlighted in the background to market the retail industry has

recently been experiencing some large changes in the way in which customer shop

and also what they now expect for their money. Customers now expect extras for

the price they pay, for example additional services; the expectations have increased,

organisations now have to improve and add to their existing procedures to retain

custom. However shopping trends are now changing, where stores once were the

main shopping experience, online shopping has taken over in a large way; some of

the main reasons are convenience, technology and variety. Retailers now have to

improve the online shopping experience while providing services that are cohesive.

The research conducted for the purpose of this paper has provided detailed

information about a number of different topics related to the research question. This

ranges from the current size of the market to the main players within the retail

sector, as well as who is thriving in this changing sector and what organisations need

to improve to cope with the future changes. The expectations of customers are

growing, as stated above, therefore the primary research examined into what

customers of both Next and M&S expect from services in general and from both of

these organisations directly. This concludes with extracting some key

recommendations based on the findings of the interviews. The recommendations

can be found in chapter five however the main area of recommendation is in relation

to online chat boxes being available on both organisations sites, neither provide such

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service and it has resulted from the research as a main form of contact that online

users wish to have, as online shopping is increasing this is a necessary aspect.

Overall the research has highlighted some interesting and useful areas for the world

of online retailing in relation to the service quality and also formed a comparison

between the two organisations, Next and Marks and Spencer. The outcome of the

comparison has resulted in a clear market leader. From the interviews conducted it

would seem evident that the organisation which has the best result is Next and there

are a number of factors within the questions which have provided this result. The

outcome from the interviews has provided justification for the background to market

which states that Next is currently overtaking M&S and the findings from the

research fall in line with this statement.

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Appendix 1 – Additional Market retailersPrimark

Primark has succeeded in a way that no one previously thought was possible. They

have opened up the world to cheap high trend clothing that consumers cannot get

enough of while also continuing to grow in this tough economic climate. Primark is

growing rapidly; in 2013/2014 alone they opened up 281 stores which have a total of

1.5 million square feet of retail space and 58,000 employees. This growth proves this

company has something special and they have no plans to slow down as they plan to

open further stores in the U.S. (Stack, S 2014) Not only have they created a new

market area, they have also attracted a wide range of customers who buy from their

stores. (Stack, S 2014) Currently Primark’s target market is 16-24 year olds however

other age groups are also using Primark, such as the 25-35s and a rise in 35-54 age

bracket. Therefore the company’s wide range of customers is creating an innovative

and popular brand that currently no one can see falling behind. (Mintel, 2014) All of

the previously mentioned factors contribute to the company’s success however the

factor that many see as most important is the fact that they combine not only low

cost clothing but also the latest fashion which is an area their target market value

greatly. (Stack, S 2014)

The only issue that Primark as a clothing company is currently facing is the challenge

of online retailing. Their basket size currently is far too low for online retailing to

make economic sense for the company therefore they have had to stick to the old

fashion retailing ways i.e. the right products at the right place. (Bubb, N 2013)

Although this may not currently be an issue for the business, it could arise in the

future as more and more consumers are looking online for products. (Bubb, N 2013)

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George at Asda

George at Asda has been the best performers of all supermarket clothing lines with

almost a third of the market consumers buying from this company. (Mintel, 2014)

Just behind Primark, it is the brand with the most momentum; over the past 2 or 3

years Asda has been continually trying to be innovative and improve many aspects of

their clothing range in order to pull in more and more customers and so far it seems

to have been working, with a third of consumers buying from George. Asda has

implemented many new tactics such as improving their website to encourage more

consumers to use the website and introducing a click and collect service nationally

for convenience to the consumer, which is of priority in this day and age. (Mintel

2014) One area that George realised they need to improve if they were going to

succeed is their brand image, the supermarket clothing lines are not particularly

viewed as high fashion, which as stated previously is a big aspect in terms of the

consumer. Therefore George at Asda sponsored Graduate Fashion Week which

brought their name into the fashion world in a better light than was previously the

case. (Mintel, 2014)

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Appendix 2 - Manufacturing Manufacturing has changed many aspects of how the clothing retail industry works;

currently it is undergoing a transformation process and having to become resilient

within the process by assessing how they can compete. Manufacturing for many

clothing retailers is now being moved overseas, and so faces the problem of

globalisation on a larger scale than many other industries. Clothing organisations are

now moving overseas due to the nature of the business which they are in, fashion is

an ever changing business and so the product has to remain at its lowest cost

possible (Tyler, 2003).

Originally the manufacturing of clothes was a single skilled operation and all skills

they had within manufacturing were closely related to their sub-section in which

they were employed, however with globalisation occurring the labour is largely

taking place within low labour cost countries. (Tyler, 2003) Stated by Tyler, 2003 this

new approach to manufacturing clothes has in turn demised the belief that it has to

be seen as a highly skilled profession

“Overseas sourcing, involving large volumes of subcontracted work, greatly reduces the meaningfulness of a typology” (Tyler, 2003 pp3)

This change in belief of how manufacturing of clothes has to be approached has now

resulted in globalisation as stated above.

In order to tackle such problems a number of strategies have been devised, one

strategy which has been used is to satisfy the consumer by “promoting flexibility and

responsiveness in the supply chain” (Tyler, 2003). This has been named the quick

response strategy aimed at developing new technologies to improve the process

used to manufacture clothes and so making the whole manufacturing faster and

more responsive to the industry in which it is based. (Tyler, D 2003). Overall it is still

undecided whether this strategy can significantly improve the competitive pressures

that are occurring. Competitive pressures are driving heavily on clothing retailers as

it is important to understand what fundamentally drives the clothing supply process.

Tyler, 2003 states that

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“The core business is the supply of product to satisfy customer requirements. The dominant service issues are design and product development, sourcing (price,

quality, batch size, timescale) and supply chain business relationships” (Tyler, 2003 pp3)

Therefore it is necessary for any clothing retailer to take into account all of these

aspects when considering how to manufacture and produce their products. The

decision on such aspects is highly dependent on the size and type of clothing retailer

in question therefore they have been broken down into 3 categories.

Niche manufacturer’s service clothing companies requesting small batch

sizes of products, many of these are still based within the UK and are

currently using the quick response time strategy discussed above.

Balanced companies also require small batch sizes however these come from

overseas but they choose to still retain a UK manufacturing base to create the

product samples.

Larger companies which require much larger batches and therefore have a

low sensitivity on time (quick response strategy is not useful to them) and so

source their products from low labour cost countries (Tyler, D 2003).

Through recent research by the University of Manchester it has been established

that it has now become difficult to provide any distinction between manufacturing

and suppliers as many of the overseas suppliers have been referred to as both

manufacturers and suppliers (Tyler, D 2003). This takeover of suppliers by

manufacturers can be described as backwards integration as they are now taking

control of suppliers, which can reduce dependency. On the opposite side it is

possible that the operations area of any company could be regarded as clothing

suppliers therefore it is seen that the supplier/manufacturer distinction is down to

the organisation’s own choice and both are very much now part of the clothing

industry today.

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Manufacturing Challenges

Although the distinction between supplier and manufacturer is now somewhat

blurred due to the new processes there are also new challenges for clothing retailers

to face. One area in which clothing retailers have struggled due to globalisation is in

relation to sample making. This has always been part of the manufacturing service,

with the cost being recovered when a bulk order was placed. This arrangement can

still stay in place when manufacturing is moved overseas; however the issue occurs

when trying to communicate creatively as the process of product development can

be hindered when not on a face to face basis (Tyler, D 2003). Therefore in order to

continually and successfully use the overseas method clothing retailers would need

to create a new process for product development.

Furthermore the issue of inventory management has also occurred through the

globalisation process. When ordering overseas many companies order in bulk,

therefore in order to transport the bulk delivery it necessary that containers are

used, however this can put strain on the batch size and timescale so making it

difficult to predict exact delivery dates (Tyler, D 2003). Delivery dates are crucial in

relation to the clothing industry as fashions can come and go within a matter of

weeks and months so causing issues with stock outs and excess stock. This problem

is fundamental if the process of overseas sourcing for clothing retailers is to continue

and so making the issue an area that is in desperate of being addressed.

Overall the manufacturing industry is now in a great period of transition,

manufacturing is certainly not completely in decline as there are still many successful

organisations within the British manufacturing area, however if the manufacturing is

based upon price be going out of the British economy. The clothing industry is still

capable of contributing vastly to the British economy in terms of wealth creation and

providing employment however the industry is changing and without companies

thinking and working tactically and creating new strategic plans they will not

succeed.

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Appendix 3 - WEDQUAL 1. Information quality- the concern that information provided is accurate,

updated, and appropriate.

2. Functional fit to task- the extent to which users believe that the website

meets their needs.

3. Tailored communications- communications can be tailored to meet the user’s

needs.

4. Trust- secure communication and observance of information privacy.

5. Response time- time to get a response after a request or an interaction with a

website.

6. Ease of understanding- easy to read and understand.

7. Intuitive operations-easy to operate and navigate.

8. Visual appeal- the aesthetics of the sites.

9. Innovativeness- the creativity and uniqueness of the website.

10. Emotional appeal- the emotional affect of using the website and intensity of

involvement.

11. Consistent image- the website does not create dissonance for the user by an

image incompatible with that projected by the firm through other media.

12. Online completeness- allowing all or most necessary transactions to be

completed on-line. (for example, purchasing over the website)

13. Relative advantage- equivalent to or better than other means of interacting

with the company.

14. Customer service- the response to customer inquiries, comments and

feedback when such response requires more than one interaction

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Appendix 4 - Topic Guide 1. What would you define a service as? (Service marketing)

2. Is it important to you the service you receive each time is the same? If so

why? (Heterogeneity)

3. Do you enter a service with a pre-conceived idea of what you will receive? If

so is this because of previous experiences? give examples. (Service quality)

4. If you do not receive what was promised from a service would you use them

again and why? (Reliability and Service gap)

5. What do you expect most from the company supplying the service (Outwith

the actual service)? (Responsiveness and service gap)

6. If you were to purchase from (M&S – Next) what is you perception of the

service you will receive? (Responsiveness and empathy)

7. When using (M&S – Next) have you ever seen an advert promoting product

or service that they offer and what you actually received is different?

(Interpretation gap and internal communications gap)

8. When buying a product from (M&S – Next) is there any additional services

they could add to ensure you buy from them again? (Product)

9. Do you feel the price of delivery service is a fair price or could they do

something to improve this?

10. When shopping in store do you feel happy with the people service? Or when

shopping online do you feel it is missing the people service aspect or do you

feel it is still interactive with employees if need be? (People 7Ps)

11. Could you please go on the website and find this product? Then evaluate for

me how you felt using the online service was? Easy or hard etc.? (Process 7Ps

and efficiency E-SERVQUAL)

12. When you have bought from the company before has the delivery service

been easy to use? (Process 7 Ps and efficiency E-SERVQUAL)

13. Upon looking at the site and the company’s store would you say it is

presented well? Explain what you regard their image as? Or brand? (Physical

evidence 7 Ps)

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14. Through the number of times you have shopped within the store or website,

would you say they always had the item you were looking for? So were you

fulfilled with the product range? (Fulfilment, E-SERVQUAL)

15. Do you trust the company with your details i.e. do you feel they are a credible

company to buy from? (Privacy, E-SERVQUAL)

16. Upon buying from the company do you view there being enough support

information for customers either in store or on their website?

(Responsiveness)

17. Would a good returns policy or shipping and handling policy make you buy

from an organisation again?

18. Have you returned an item before? If so how do you feel that experience

was? (Compensation, E-SERVQUAL)

19. When buying online would you like the option to talk to a live service agent

online or would you prefer phone? (Contact, E-SERVQUAL)

20. Overall could you describe the organisation and their service to conclude the

interview?

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