Prices have a lot of influences in the daily life about consumer decisions as where to shop.
Suggests in recent research literatures says that consumers makes decisions based on two price cues: Observed week-to-week basket prices and overall store price images (van Heerde et al. 2008, Magi and Julander 2005).
Marketers and retailers in the Netherlands need to know the level of attraction to store price image, the price sensitivity and where consumers buy there grocery products. For this needs of understanding shopping behavior, related to these question points, the marketing research company formed the following question for this research report:
How (if at all) do consumer characteristics and shopping attitudes relate to consumer sensitivity to stores’ overall price levels and price images?
The first aim of this report will be explaining the research approach and design. After that we will prepare the dataset for the analysis, by analyzing the errors and missing values in the dataset and explain how to deal with them. After this the representativeness of the sample will be assessed. Furthermore, we need to confirm that the randomization process of assigning respondents to experimental conditions has been successful. When all the analysis of the sample are done, the actual data analysis can start. With this analysis we want to investigate the relationship between price sensitivity and the respondents characteristics. Based on these results we can conclude our advices to the researcher in the final section of this report.
1. Research approach & Research design
Conducting a survey-based study and the use of internal secondary data can have advantages as well as disadvantages. In this chapter the two main advantages and two main disadvantages will be discussed.
A first advantage of using a survey-based study is that it is relatively inexpensive, especially when surveys are self-administered. Self-administrating the surveys...