1.

Management Problem

Why are customers dissatisfied with The Entertainer’s online retail services?

2. Marketing Research Problem

To collect information about customer’s perception of The Entertainer as an online toy

retailer.

3. Research Questions and Hypotheses

i. What is the consumer buying behaviour in the toy industry? What factors drive

purchase intent?

H1: Household income effects toy purchasing behaviour.

H2: Demographics of children effects parent’s intent to buy toys.

H3: Ambience of store effects purchase intent.

H4: Perceived product price effects toy purchase behaviour.

ii. How do customers perceive online purchases? What factors build trust and

convenience in e-commerce?

H1: Internet usage and frequency effects acceptance of e-commerce.

H2: Perceived ease of use effects acceptance of e-commerce.

H3: Perceived security risk effects acceptance of e-commerce.

H4: Facilitation through website design and features build trust in e-commerce.

H5: Perceived security control effects trustworthiness in e-commerce.

H6: Perceived integrity of brand effects trustworthiness in e-commerce.

iii. Do customers trust The Entertainer as a reliable online toy retailer?

H1: Perceived product quality effects online toy purchase.

 H2: Perceived product price effects online toy purchase.

H3: Service quality of the brand effects online toy purchase.

H4: Product reliability of the brand effects online toy purchase.

H5: Perceived website quality effects online toy purchase.

H6: Responsiveness of the brand effects online toy purchase.

Exploratory Research:

Our research design began with an exploratory research which was aimed to understand the

problem first. This was followed by a conclusive research with a focus on descriptive

research in order to have conclusive findings of our research.

Firs of all the group started with secondary research by examining the social media presence

of the brand. The brand’s official Facebook and Instagram page were used to gauge consumer

perception about the brand. The reviews left on the Facebook page and comments on the

Instagram posts reflected on the consumer’s perception. The two most common complaints

were about high prices and delays in online deliveries.

Secondly, the group visited three stores in Lahore, simultaneously, to conduct observational

research. The stores visited were located at M.M Alam, Emporium Mall and H-Block, DHA.

Informal discussions with the store employees gave us the following insights:

 The high prices are justified by the premium quality of products as they are imported

from the United Kingdom.

 The company has not yet increased prices and is taking the price hit directly from the

increased taxation and import duties levied recently.

 The employees take pride in personally ensuring quality and packaging of products

that are ordered via website.

 Further, a detailed interview with a senior manager of the Entertainer was done to have

insights from the management regarding customer feedback that the company has

gathered through questionnaires at store in the past.

Responsiveness
Perceived Perceived
Product Price Integrity

Perceived Perceived Ease

Product Quality of Use

Perceived
Product Website Design
Reliability

Perceived
Perception
Website
Service as Online Facilitation
Reliability
Retailer