Impact of Globalisation on Customer Behaviour in Marks & Spencer (M&S) PLC

Running head: RESEARCH PAPER
To analyse the impact of globalisation on customer behaviour within a Multi-National
Company (MNC) - “A study on Marks & Spencer (M&S) PLC.”
Name of the student
Name of the university
Author note

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Acknowledgement
First and foremost, I would like to thank my supervisors, Prof. ..., who supported me through
this research with their patience, knowledge, and understanding. I could not have wished for
better, highly qualified and approachable supervisor. He is so patient and supportive
throughout our session, particularly his one-to-one support.
I would like to thank my family. They were always supporting me and encouraging me with
their best wishes.
I would also like to thank my lecturers, non-academic staffs and my distinguished classmates
for their kind support and appreciation toward me throughout this program.

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Abstract
This report had examined the impact of globalisation on the consumer behaviour. Marks &
Spencer had been chosen as the case study in the research. The major aim of the research was
to examine the relationship between the variables and understand the key changes in the
consumer behaviour. The critical literature review had provided in depth knowledge on
globalisation and its influence on consumer behaviour. The gap in the previous literature had
been examined and the research had progressed as per the gap. The research methods has
been developed based on the objectives where mixed method analysis had been performed to
accomplish significant results. The mixed method analysis consisted of using a sequential
explanatory design which facilitated in achieving triangulation in the research. The findings
of the research has clearly shown that there has been significant impact of globalisation on
the consumer behaviour where majority of the elements has shown strong positive
correlation. The research had provided valid conclusion and recommendation based on the
findings in the research. The major limitation of the study was that the sample size used in
relatively small and further research could have been conducted to provide better results.

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Table of Contents
Chapter One...............................................................................................................................6
Introduction................................................................................................................................6
1.0 Introduction..........................................................................................................................6
1.1 Background of the study......................................................................................................6
1.2 Research problem and organizational context.....................................................................7
1.3 Research Aim and objective.................................................................................................7
1.4 Research questions...............................................................................................................7
1.5 Research hypothesis.............................................................................................................8
1.6 Rationale..............................................................................................................................8
1.7 Summary..............................................................................................................................8
Chapter Two...............................................................................................................................9
Literature Review.......................................................................................................................9
2.0 Introduction..........................................................................................................................9
2.1 Globalization........................................................................................................................9
2.2 Consumer behaviour..........................................................................................................11
2.2.1 The Marshallian economic model...............................................................................11
2.2.2 The Veblenian social-psychological model................................................................12
2.2.3 The Pavlovian learning model....................................................................................12
2.2.4 The Freudian psychoanalytical model........................................................................13
2.3 Impact of globalization on consumer behaviour................................................................13
2.4 Literature gap.....................................................................................................................14
2.5 Summary............................................................................................................................14
Chapter Three...........................................................................................................................16
Research methodology.............................................................................................................16
3.1 Introduction........................................................................................................................16
3.2 Research philosophy..........................................................................................................16

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3.3 Research Approach............................................................................................................17
3.4 Research Design.................................................................................................................17
3.5 Data collection and Analysis..............................................................................................17
3.6 Sampling............................................................................................................................18
3.7 Reliability and Validity......................................................................................................19
3.8 Ethical Consideration.........................................................................................................19
3.9 Summary............................................................................................................................19
Chapter Four.............................................................................................................................20
Findings and Analysis..............................................................................................................20
4.1 Introduction........................................................................................................................20
4.2 Reliability analysis.............................................................................................................20
4.3 Quantitative Analysis.........................................................................................................22
4.3.1 Demographic questions...............................................................................................22
4.3.2 Questions on globalization and consumer behaviour..................................................25
4.3.3 Correlation...................................................................................................................37
4.3.4 Regression Analysis....................................................................................................42
4.4 Qualitative Analysis...........................................................................................................43
4.5 Discussion..........................................................................................................................45
4.6 Summary............................................................................................................................45
Chapter five..............................................................................................................................47
Conclusion and recommendation.............................................................................................47
5.1 Introduction........................................................................................................................47
5.2 Conclusion..........................................................................................................................47
5.3 Recommendation................................................................................................................48
5.4 Research Limitation...........................................................................................................48
5.5 Future Scope.......................................................................................................................48
References................................................................................................................................50

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Appendices...............................................................................................................................54
Appendix..................................................................................................................................54

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CHAPTER ONE
INTRODUCTION
1.0 INTRODUCTION
Globalization has changed the ways companies operate in the global market due to the
increase in free trade and technological advancement. The perception of the consumers have
changed dramatically over the past centuries. The living standards of the consumers have
improved in global context which makes the people strive for the best product that meets
their specific needs. This has increased the level of competition in the global market and
companies are facing difficulty in keeping up with the change in nature of consumer
behaviour. This research has utilized Marks & Spencer (M&S) PLC as a case study to
examine the ways the company is being affected due to the change in behaviour of the
consumers. The retail industry in the United Kingdom is highly competitive and saturated
which poses added issues for the business entity.
1.1 BACKGROUND OF THE STUDY
Marks & Spencer (M&S) PLC is one of the major retailers in Britain. The company
has it’s headquarter in Westminster, London. The organization sells luxury food products,
clothes and home products. The company has almost 1000 stores all across United Kingdom
out of which more than 600 stores only sells food products (Marksandspencer.com 2019).
The company has been facing issues in the past decade where there has been significant
decrease in the sales of their clothing. On the contrary, they have seen increase in the sale in
the food department. The company has been planning to make a radical change which is
expected to close more than 100 stores all over United Kingdom (Brinded 2018).
The global marketplace has been equipped with global communication which has
made the market open and competitive. Contemporary trends in the global market suggests
that majority of the companies are integrating strategies that are customer centric due to the
increase in market competition. Globalization has provided the small scale companies with
the opportunity to have a wider reach by using digital market (Fedorenko 2018). However, it
has provided opportunities to the retail companies to explore new markets but it is essential to
be aware of the culture and preferences of the consumers for success. Consumer preferences

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have been changing quite rapidly where companies have to be flexible and adaptive to be at
par with the fast changing nature goods and services (Hardley 2018).
1.2 RESEARCH PROBLEM AND ORGANIZATIONAL CONTEXT
Marks & Spencer (M&S) Plc has been going significant decline in the past decade
where consumers are disappointed and criticised them for their clothing ranges and
overpriced food products. Marks & Spencer (M&S) Plc has announced that would be closing
100 of their stores all over United Kingdom by the end of 2022 (Gilliland 2018). The retail
sales of the company have decreased to 1.9% form 4.7% in the year of 2017 (Gilliland 2018).
It has been quite difficult for Marks & Spencer (M&S) to compete with global clothing
brands and food retail brands due to their convenience and price. Lack of digital innovation is
another critical issue where the ecommerce offerings are not descent when compared to the
other major retailers in the market. The usability and design is quite average which shows
that the company has been quite slow in coping with the change in market trends and
globalization (Gilliland 2018). Moreover, the company is just doing enough to hold on their
business but drastic changes are required so that the company can compete with other
companies like Tesco and GAP. This research has addressed these issues which reflect that
Marks & Spencer (M&S) has not been able to keep up with the global changes and the
research would examine the impact of these factors on the operations of the company.
1.3 RESEARCH AIM AND OBJECTIVE
The major aim of the research to evaluate the impact of globalization on the behaviour
of the consumers in Marks & Spencer (M&S) PLC. The research has identified the different
elements of globalisation that is critical for the retail industry. The impact of these factors on
the behaviour of the consumers has been examined to recommend suitable strategies. These
strategies can be used by the organization to cope up with the changes in consumer
preferences.
 To evaluate the different element of consumer behaviour
 To analyse the impact of globalisation on the consumer behaviour in Marks &
Spencer (M&S) PLC
 To recommend suitable strategies to cope up with the change