Preview

Tesco Malaysia Observation

Good Essays
Open Document
Open Document
1230 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tesco Malaysia Observation
On Thursday May 6, 2010. I went to the Tesco supermarket at Puchong. At first I came to Malaysia, I don’t know about Tesco, because they not open a branch in my country, Indonesia. I only know the supermarket like Giant and Carrefour. First of all, I think Tesco is a local company, but several times later I know that Tesco is originally from UK. I like to come in weekdays so it’s not crowded as on weekends.
One day, I heard about supermarket psychology was when someone explained to me that the most appealing products were always shown at eye level. When the product is placed at eye level, you are easier to pick it up and subsequently buying it. That’s only the beginning. Long time before I never care about how the supermarket layout could manipulate my behavior to spend more. But when, I investigate more, I feel quite surprise that all retail store are designed to persuade the customer spend more than their expectation. It is also one of their strategies to maximize profit.
Customers come to the store to fulfill a need. Don’t come to supermarket when you are hungry, if you hungry you will probably make irrational decisions about what you buy and may buy more food than you need. And the supermarket use tactics of the smell of freshly baked bread coming from the in-store bakery during the after-work rush. Tesco also have food stall at the back of the store, they display some valuable food (e.g. sushi, roasted chicken, etc) it might tempt you even though you’re not hungry.
Many costumers expect the cheapest price; Tesco put irrational pricing for most of their products. The reason offered for not instead rounding RM 5.99 to RM 6.00 is based on memory processing time. Rounding upward involves an additional decision compared with storing the first digits. The first impression on the first digits is quite stronger. The colours also used in supermarkets, to invoke our emotions into spending more money. Red is used because it stands out above all other colours. They

You May Also Find These Documents Helpful

  • Powerful Essays

    TESCO respond to this need by making sure to they sell the right products for their store because if they don't they could lose a valuable customer, customers are the one putting their money into the revenue of the company.…

    • 851 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    There are many other factors that contribute to this consumer manipulation, including sizing of items, stimulation of the five senses, music choices of the supermarket, free samples that are offered, and the distractions they provide for children. Supermarkets want their consumer to make decisions based on impulse and stray from their original shopping list. Ultimately, the supermarkets are benefitting greatly, while shoppers are being manipulated in ways that do not benefit…

    • 554 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The business i will be talking about is Tesco, the background they have dates back to 1919 when the company was first found by the name of Jack Cohen, a few market stools is what lead Tesco were they are today. The multinational super store headquarters is based in London, Hertfordshire, Cheshunt. Having this location is really good because its surrounded by the general public also its ideal to open stores around that area to boost Cheshunts community! As we know, Tesco is a worldwide supermarket but in 1929, the first store was opened in burnt oak, Middlesex… Ten years later Tesco was growing rapidly, 100 stores scattered across England. Tesco don’t just cover England anymore they are an international business, providing services and selling products to everyone, with 6000 stores worldwide covering 14 countries including Asia, Europe and North America! Tesco provide the public with home delivery, banking, insurance, mobile phone contracts, petrol, food, clothing, electrical devices and finical services. Tesco provide goods and services, goods to give the public there everyday requirements also they provide us with services to give us more trust in Tesco also so they have more customers and earn more money to invest in improving the businesses.…

    • 1779 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Tesco Coursework

    • 11594 Words
    • 47 Pages

    As part of my Applied Business GCSE, Unit 1 Controlled Assessment I have chosen to study Tesco’s. Tesco Plc is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand.…

    • 11594 Words
    • 47 Pages
    Better Essays
  • Satisfactory Essays

    Because on tight budget, customers are searching for more of cheaper goods than supermarket’s services. Tesco decided to spend their budget on refine services by recruit more staff and renovates outlets. While Tesco competitors focused only on lowering goods value, ASDA and Sainsbury succeeded at gaining more market share by offering lower price in essentials goods and giving vouchers. While Tesco improving and offer less of price reduction.…

    • 323 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Diversification – Tesco’s have set up a few stores abroad in places such as china. They first tried selling their average products but soon learned that they would have to diverse into selling different product that the Chinese would be more inclined to…

    • 1188 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Despite having been in Malaysia for a relatively short time, and having few stores, Tesco's presence has been controversial and a catalyst for the implementation of stricter trading laws. As of January 2004, there is a five-year freeze on the building of any new hypermarkets in Malysia's three major cities Kuala Lumpur, Penang and Johor Bahru.…

    • 988 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Supermarket’s spatial design is the most important strategy to affect consumers’ behavior. When I walked in the local Safeway I immediately saw design strategies that Gladwell described in his essay. The strategies included the sale signs, bursting with vibrant colors and keeping products out of the decompression zone. Another design pertaining to the overall store that caught my attention was how each main grocery department was located on opposite ends of the store. In order to get to the produce from the bakery I was tempted by all of the bargain sale signs, located on the end of each aisle. There are two entrances on opposite sides of the store. At the right side entrance, a Starbucks is…

    • 1088 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    In Tesco it is very important that they meet the needs of their customers as they want their customers to fell they are being cared for and looked after. If customers do not feel this way they will be more inclined to shop elsewhere as it is very important that a customer feels cared for. As Tesco is in competition with other supermarkets, such as Asda, Sainsbury’s and Morrison they have to meet the customers’ needs as if they don’t they may lose the customer to another competitor.…

    • 279 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Tesco uses verbal information through the customer assistants persuading customers to buy products. Also if the manager has asked for a clean-up on an aisle, a customer assistant would be told through a speaker that they need to clean up. In this case, the shop will be kept tidy for customers because customers would not want to come to an untidy, unorganised store so it makes the store more appealing.…

    • 751 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Corporate Strategy of Tesco

    • 4104 Words
    • 17 Pages

    The company that our group has chosen to analyse is Tesco. Tesco was founded in 1919 by Jack Cohen who began his new venture by selling surplus groceries from a stall in the east end of London; One his first day he made £1 profit and £4 of sales (Tescoplc.com [history]). Tesco has come a long way since then and is now one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. However, this report shall have a focus of the food sector in the United Kingdom.…

    • 4104 Words
    • 17 Pages
    Best Essays
  • Satisfactory Essays

    In the article “What Your Supermarket Knows About You” Martin Lindstrom details his experience after visiting a laboratory in Chicago of one of the largest consumer goods manufacturers. He describes the different marketing techniques retailers use to get customers to stay longer and buy more. Lindstrom explains how they monitor their shoppers to see how they respond to different tactics used; such as employing speed-bumps in certain sections of the store so they stay in one section longer and increase the average amount they would spend. Simple psychological tactics such as removing the dollar sign in front of a price also offered major increase. These types of strategies are nothing unique and are employed by all big manufacturers. The clothing…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Tesco Business Environment

    • 3406 Words
    • 14 Pages

    Tesco Plc is the 3th company of the global sales of grocery sector than the field is increasing: clothes, insurance, petrol stations and financial services. Tesco Plc is the largest company in Great Britain sales with stores in 14 countries (across Asia, Europa and North America). Tesco Plc is a public Limited Company how was made it by Jack Cohen in 1919 in United Kingdom and in the present has got more than 6,351 stores(national and international) with revenue than £64.539 billion and more than 519.671 employees.(www.tesco.com)…

    • 3406 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Abortion Persuasive Essay

    • 686 Words
    • 3 Pages

    Whoever assists in the act of abortion must be sentenced. Do not let the thought of mercy corrupt your minds, for if an abortionist were granted acquittal, his detestable work will be encouraged instead of outlawed. ( Consequence ) The abortionist does not only harm one, but instead causes suffering and loss to many, even the judges who consider his case; for the judge's own grandchildren could fall to the same fate others have if the abortionist is not found guilty. ( Aequipollentia ) ( Expediency )…

    • 686 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    In this assignment I will be explaining how retail outlets use psychology in their visual merchandising and display techniques and how this encourages customers to purchase goods. Then I will be comparing how three different retail businesses use space and psychology to influence customers to purchase goods.…

    • 321 Words
    • 2 Pages
    Satisfactory Essays