Reasons for Customer Preference for Duane Read - Essay Example

Research Plan Determining the reasons for preference for Duane Read Duane Read is a chain of drug and convenience stores located in densely populated areas in New York, well known for its high volume of sales. Duane Read is a pharmacy, however this is generally located at the back of the stores which consist of four different sections – one is the pharmacy section that markets drugs the second is for cosmetic products, another for seasonal goods such as cards and the last section for household and grocery items.(Mount, 2005). CVS Stores is also a chain of stores that sells drugs and convenience products , but this chain comprises about 310 stores located in nine states across the United States. The CVS chain has recently been unfavourably in the public eye because it was found to be selling drug products that were expired and thereby violating health codes. The goal of this research study is to derive an answer to the research question: “Why do people go buy their goods in Duane Reade rather than CVS?” It appears likely that the negative publicity that CVS has gathered about selling expired products could be one of the salient reasons why customers are preferring Duane; however it is also likely that other factors such as store layouts, their convenient locations to arrangement of goods within the store, prices, customer service or quality of goods could be the factors motivating customers instead. The objective of this study will be to determine why customers appear to be preferring Duane; whether there is more than one reason for such a choice and if so, what are the factors that are leading to such a preference? In order to arrive at an understanding of the factors that could be propelling customers to make such a choice, it would first be necessary to carry out an exhaustive review of the literature that is available on customer service, product quality, marketing, good business practices, ethics in business, the importance of complying with Government regulations and similar aspects that would provide background information which would be valuable in arriving at an answer to the research question. This comprehensive study of the literature would not only help to identify salient factors that may affect customer shopping preferences, it may also help identify additional factors which are peculiar to the New York region, such as targeting ethnic groups who form a sizable portion of the population, more so than those present in the states where CVS markets its goods – although these states are also primarily in the north-eastern part of the United States. Once the background information is available, it would be possible to contact customers directly in order to solicit their views. In order for the study to have some validity, it is necessary to have a large enough sample but to actually interview so many participants would be far too time consuming and expensive. In order to carry out this study, it is therefore proposed to carry out a research survey using a questionnaire administered to a random sample of shoppers of Duane Reade. Every effort will be made to include both male and female shoppers within the participant sample, as well as individuals from different minority groups and different age ranges. This would ensure that a cross section of Duane shoppers is participating in the study, so that their views can be solicited. The questionnaire has been found to be an easy and cheap method of collecting information, because it is easy to administer and the responses can be collected quickly from a large group of participants. (Wilkinson and Birmingham, 2003). Carrying out the survey face to face with shoppers at actual store locations would also ensure that the responses elicited are valid because they come from actual consumers rather than the risk that arises from email surveys, of invalid responses from individuals who may not actually be Duane shoppers. The participants can also be informed of the purpose and objective of the study and their right to choose not to participate if they prefer not to. This would also ensure that participants in the study are doing so on a voluntary basis and are fully aware of their rights to confidentiality and assured that no personal details or information is required from them. The questionnaire would pose questions with responses ranked on a scale of 1 to 5, with different aspects of Duane service being tested. For example, some of the elements that will be tested through the questionnaire would include (a) availability of products (b) quality of products (c) safety of products (d) ease of access of store locations (e) safety and durability of products (f) price ranges of products available in the stores (g) customer service (h) returns policy and similar aspects. This would be supplemented with direct questions that would ask participants to respond on the same elements as comparative factors at CVS. The responses derived from the questionnaires will then be used as the basis to arrive at conclusions about what participants prefer about Diane Reade that has motivated them to prefer Duane over CVS. Schedule: The research study is proposed to be carried out over a period of five week. The first week will be devoted to carrying out research using secondary sources on marketing, customer service, quality and safety of products in order to formulate the Likert style questionnaire. The next two weeks will be devoted to actually carrying out the survey at various Duane stores across New York and soliciting participation in the study from customers visiting the store. The last two weeks will be devoted to analyzing the responses derived from the research. Deliverables: The project will be divided into three phases according to the time framework specified above: Planning, Surveying and Reporting. The Planning stage will involve the design of the questionnaire, the Survey stage will administer the survey and the Reporting stage will consist of the analysis of the data received. The deliverable during the Planning Stage is the questionnaire. The Likert style questionnaire will contain questions ranked on a scale of 1 to 5 to assess levels of customer satisfaction with a particular aspect of store function. 1 will be the ranking most unfavourable while 5 will be the most favourable ranking and the participants will be asked to tick the response they agree with the most. Each question will assess a particular variable. The deliverable during the survey stage is the completed questionnaires. Any questionnaires that are incomplete will need to be rejected. The participants will be contacted while they are in the store and requested to take a few moments to fill up a questionnaire. Since they merely have to tick the ranking they favour most, it is unlikely to take upo much time and participants are likely to agree to participate in the survey. The deliverable during the Reporting stage is the final written report, which will contain the results of the data analysis and the conclusions that have been derived from such analysis. Costs: This project is centred primarily around the New York area since most Duane stores are in the New York area. The costs involved in the project would include printing and copying expenses for the questionnaires, as well as travel costs for the surveyors to be present at the Duane stores. It may also include postage for distribution of surveys among shoppers who may prefer to take it home with them and fill it up at their convenience and return it. References: CVS’ pattern of selling expired goods, violating health code persists according to New Report by CtW, Reuters, May 21, 2009. Retrieved October 12, 2009 from: http://www.reuters.com/article/pressRelease/idUS147305+21-May-2009+BW20090521 Mount, Ian, 2005. “The Mystery of Duane Reade”, Retrieved October 12, 2009 from: http://nymag.com/nymetro/shopping/features/11908/ Wilkinson, D. and Birmingham, P., 2003. Using research instruments: A Guide for researchers, Routledge Read More