Research on Declining sales of Argos

I.              MARKETING RESEARCH QUESTIONS, OBJECTIVE, COMPONENTS OF THE RESEARCH

Global economic crisis had major impact on many organizations. Argos has also seen a decline in its profits due to weakening of pound on the foreign currency markets. The Home Retail Group Finance Director, Richard Ashton stated that the current intricate economic environment has clear manifestation on overall spending by Argos customers. However, there are some other problems too that have adverse effect on Argos’ sales trends. According to verdict research analyst, Matt Piner, Argos has been unsuccessful to incite its customer’s perception towards its offerings where its competitors have been offering eye-catching deals. According to Terry Duddy, HRG’s chief executive, the sales at Argos had plunged due to one of its competitors Woolworths’ fire sale before Christmas. With the development of technology in recent years and the increasing use of internet for online selling, Argos had to adapt to multi-channel sales for its product offering in order to compete with its competitors and offer a right combination of choice, value and convenience to its customers. The multi-channel sales at Argos grew tremendously with 32% represented by internet i.e. through its website.

Research Aim:-

The aim of the study is to investigate the perception of customers towards the service offerings at Argos stores and the success of multi-channel offering that Argos offers to its customers.

Research Objectives and sub-questions:-

1. To determine the reason for the declining sales of Argos by critically evaluating the perceptions of customers towards Argos.

To understand the perception of customers towards Argos following questions were asked to them.

-       Does Argos Treats all customers in a convenient way?

-       Do Argos customer service assistants exhibit a thorough knowledge about the product and services?

-       Do Argos customer service assistants respond in a timely manner to customers query?

-       Are you aware about the feedback system that Argos has?

-       Overall are you satisfied with the service available at Argos?

-       Do you think the products purchased from Argos are value for money?

2. To investigate the success of multi-channel distribution system at Argos.

-       Which is the most preferable way to shop from Argos?

-       Is shopping from Argos website convenient (User friendly)?

-       Is shopping from Argos website more convenient than in-store shopping?

-       Does Argos website provide enough information about the product?

-       Do Argos website offers right combination of Choice, Value and Convenience?