Business Decision Making: A Comprehensive Analysis of Consumer Buying Behaviour in the Retail Industry

Business decision making

Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
Planning the survey....................................................................................................................3
a) Create a plan for collecting data from students across all campuses.....................................3
b) Present the survey methodology and sampling frame used...................................................4
Task 2.........................................................................................................................................9
Summarising and analysing the data..........................................................................................9
a) Summarise the data collected from the survey using representative values (arithmetic
mean, median and mode)...........................................................................................................9
b) Analyse the results of the survey and draw conclusions.....................................................10
c) Analyse the data using measures of dispersion (describe)...................................................10
d) Explain how you can use quartiles, percentiles and the correlation coefficient to draw
useful conclusions....................................................................................................................11
Task 3.......................................................................................................................................12
Presenting and reporting your findings....................................................................................12
a) With the aid of spreadsheets produce graphs to help draw valid conclusions on the survey
..................................................................................................................................................12
b) Create trend lines in spreadsheet graphs to show the level of impact over a minimum of 3
year period (this could be based on secondary data)................................................................19
Figure: Offline purchase decline..............................................................................................20
Online.......................................................................................................................................20
Figure: Online purchase decline..............................................................................................21
Task 4.......................................................................................................................................21
Software-generated information to make business decisions..................................................21
a) How do the following systems serve the various levels of management in a business? You
are to describe their characteristics and the roles they play in a business................................21

b) A publisher has just signed a contract for the publication of a book. What is the earliest
date that the book can be ready for distribution based on the following activities with time
estimates...................................................................................................................................22
c) Using financial tools for decision making advice a business planning on investing in a
project.......................................................................................................................................23
d) If the rate of finance at which the business can borrow is 10% calculate the NPV and
advice if it is worth considering this investment......................................................................23
e) Calculate the Internal Rate of Return (IRR) and explain the meaning of the result............24
Conclusion................................................................................................................................24
Reference list............................................................................................................................25

Introduction
In the international market, all the technological changes are drastically evolving that
organizations have to adhere in order to retail their market position as per consumer
requirements and policies of the market competitors. One of the important influences of
technology impacts on the retail industry and multichannel shopping. The demands and
trends of ecommerce have achieved immense fame among the customers owing to high level
of convenience and flexibility. This study is intend to analyze several factor by undertaking
secondary and primary research on the given topic in order to search how customers shopping
habits are changing, the fundamental factors driving, causes for change and the socio-
economic influence.
Task 1
Planning the survey
a) Create a plan for collecting data from students across all campuses.
The students are the largest segments of retail clothing industry. In order to understand the
changing buying behaviour of the consumers in this industry, it is essential to gather data
from the most potential customer segment of it. Therefore, the research would initiate a
primary data collection method for the purpose of gating information regarding how the
consumer buying behaviour is changing significantly in the retail industry and how
innovation as well as technological advancement is changing the shopping behaviour of the
customers. This would also initiate secondary research regarding the technologies and
innovations that are creating significant influence in the business performance of the
organisations. The primary research would be gathered from the university students of
UKCBC. The researcher would be collecting the data from the students after the school
timing.
The researcher may face two kind of dilemma for conducting the project. The limitation of
time and cost can hamper the progress of the project. This may also face the limitation of the
access of data for conducting the secondary research.

b) Present the survey methodology and sampling frame used
In order conduct the primary data collection, the project would use Quantitative and
Qualitative approaches. Several sampling methods are there that can be for conducting the
project. The main two types of sampling methods that are random sampling method and the
other one is the probability sealing method. In random sampling method the participants in a
population gets an equal chance for participating in the collection method. Random sampling
method is beneficial for avoiding sampling error and fetching effective, reliable results in the
most effective manner.
The quantitative data would be collected by conducting survey among 40 students of the
college, and the qualitative data would be conducted by interviewing 3 operation managers of
three stores, Zara, Amazon and a local high street shop owner. The questionnaire prepared for
collecting data includes close ended question while the qualitative data includes open ended
questions.
c) Design a questionnaire for collecting the data.
Q1 is convenience, save time and avoiding crowd the factors influence online shopping
decision?
Options Number of respondents Percentage
Strongly agree 7 17%
Agree 26 65%
Neutral 7 18%
Disagree 0 0%
Strongly disagree 0 0%
Total 40 100%
Q2. Is all time shopping such as 24/7 accessibility is one of the factors influence purchasing
decision
Option Number of Respondents Percentage
Strongly agree 5 12%
Agree 30 75%
Neural 3 8%
Disagree 2 5%

Strongly disagree 0 0%
Total 40 100/%
Q3. Online shopping platforms provide sufficient information and explanation about the
product?
Options Number of Respondents Percentage
Strongly agree 4 10%
Agree 25 62%
Neutral 7 18%
Disagree 4 10%
Strongly disagree 0 0%
Total 40 100%
Q4. Is variety of globally product, promotion and advertisement the factors influence online
decision?
Options Number of Respondents Percentage
Strongly agree 6 15%
Agree 29 72%
Neutral 5 13%
Disagree 0 0%
Strongly disagree 0 0%
Total 40 100%
Q5. Internet reduce the monetary of traditional shopping to great extent (ex:parking fee travel
cost, time.....?
Options Number of Respondents Percentage
Stongly agree 11 27%
Agree 24 60%
Neutral 4 10%
Disagree 1 3%

Strongly disagree 0 0%
Total 40 100%
Q6. What is the general purpose of your visit to high street shops and malls ?
Options Number of Respondents Percentage
Window shopping 4 10%
Simply shopping 27 67%
Entertainment 2 5%
Hang out with friend and have a
quality time 7 18%
Total 40 100%
Q7.How often do you go shopping on high street shops ?
Options Number of Respondents Percentage
One a week 15 37%
Once a moth 14 35%
More than once a month 5 13%
Rarely 6 15%
It is been long when last visit to
high street 0 0%
Total 40 100%
Q8.On average , how often do you use online for shopping ?
Options Number of Respondents Percentage
Once a day 1 2%
Twice a day 4 10%
Once a week 15 37%
Once a month 17 43%
Other 3 8%
Total 40 100%

Q9. What do you personally prefer when shopping ?
Options Number of Respondents Percentage
Online shopping 16 40%
Traditional in store shopping 22 55%
From agent’s 2 5%
Teleshopping 0 0%
Other 0 0%
Total 40 100%
Q.10 what your gender ?
Gender Number of Respondents Percentage
Male 16 40%
Female 24 60%
Total 40 100%
Q.11 In which age group de you belong to ?
Age range Number of Respondents Percentage
18-24 3 7%
25-34 16 40%
35-44 13 33%
45-54 6 15%
55Over 2 5%
Total 40 100%
Interview questions:
Q1. Do you think that the gradual intrusion and growing significance of technologies
and innovations are impacting job employment? Please state your perception regarding
this.
Manager 1: This manager states that, the intrusion of technologies is gradually replacing the
need for managing the workforce. This is one of the major eye witnessing socio economic

impact of Technological innovation. Due to technological tools, organisations are replacing
man power with machines, thus it has created significant social economic impact.
Manager 2: This manager has stated that technological improvement and innovation are
paving the way for more employment. It is observed that, due to innovation and technological
advancement, new organisations and star ups are being created. This is creating more
opportunities for making new job roles and employment. Therefore innovation and
technology have more positive socio economic impact.
Manager 3: According to this manager, innovation and technology have both positive and
negative impacts. On one hand it creates new job opportunities and help workers accomplish
tasks in a more effect and effective manner.
Q2. How do you think that technology and innovations are influencing consumer
behaviour?
Manager 1: According to the first manager, technology and innovations play one of the key
roles in influencing consumer behaviour in more than one way. Virtual platforms are the
main sources that provide effective information regarding products and services.
Manager 2: Ecommerce has bought an eye witnessing changes in consumer behaviour.
Customers have now become more choose and frequently shifting from one company to
another as the virtual platforms they can easily compare and contrast among the products.
Manager 3: This has enhanced the frequency of purchasing products, due to the easy access
of products and services. The availability of information have made it easier for people to
change company preferences. They are also taking effective participation in product and
service amendment with their suggestions and feedbacks.

Task 2
Summarising and analysing the data
a) Summarise the data collected from the survey using representative values (arithmetic
mean, median and mode)
Q1 is convenience, save time and avoiding crowd the factors influence online shopping
decision?
Options Number of respondents Percentage
Strongly agree 7 17%
Agree 26 65%
Neutral 7 18%
Disagree 0 0%
Strongly disagree 0 0%
Total 40 100%
Mean Median Model SD correlation
coefficient
4.025 5 6 2.037465539 0.9910528
Q2. Is all time shopping such as 24/7 accessibility is one of the factors influence
purchasing decision
Option Number of Respondents Percentage
Strongly agree 5 12%
Agree 30 75%
Neural 3 8%
Disagree 2 5%
Strongly disagree 0 0%
Total 40 100/%
Mean Median Model SD correlation
coefficient
4 4.5 6 2.06173 0.9910528

b) Analyse the results of the survey and draw conclusions
From the above survey, it could be understood that with the development in the technology,
series of individuals developed with the increase in the scope for the online shopping
activities. The introduction of latest technology opens up all the scope for addiction and
engagement to the internet transactions as well as online shopping activities. The concept of
visiting to the market and influence of consumers by travelling to distance has been
decreased.
c) Analyse the data using measures of dispersion (describe)
Q1 is convenience, save time and avoiding crowd the factors influence online shopping
decision?
Options Number of respondents Percentage
Strongly agree 7 17%
Agree 26 65%
Neutral 7 18%
Disagree 0 0%
Strongly disagree 0 0%
Total 40 100%
Mean Median Mode SD correlation
coefficient
2 2 2 0.599145 0.9910528
Analysis
From the above analysis it has been pointed out that the mean value is 2, median and mode
value are 2 and SD percentage is 0.599145. From the above analysis it is sensed that online
shopping trends are increasing day by day.
2. Is all time shopping such as 24/7 accessibility is one of the factors influence
purchasing decision
Option Number of Respondents Percentage
Strongly agree 5 12%
Agree 30 75%

Neural 3 8%
Disagree 2 5%
Strongly disagree 0 0%
Total 40 100/%
Mean Median Mode SD correlation
coefficient
2.05 2 2 0.638508 0.9910528
Analysis
Form the above analysis it has been realized that mean value is 2.05, median and mode values
are respectively 2. The SD value is 0.638508. This analysis also showing the fact that online
buying behaviour of customers is increasing daily.
d) Explain how you can use quartiles, percentiles and the correlation coefficient to draw
useful conclusions
A quartile refers to a type of quantile. There are different types of quartile that represents
different values. Doffer values are represented by quartiles. Quartile refers to the cut points
that divide a range of probability distributions among such contiguous intervals that have
equal probability. The upper quartile calculation formula is Q3 = ¾(n + 1)th. The method for
calculating quartile is Description (Result). Result. =QUARTILE(A2:A9,1). Where A2 and
A9 are the row numbers which include the data set.
The percentile is an arithmetic tool for measuring value. This refers to the value under which
the percentage of responses or observations among a set of observations or responses falls.
The formula for calculating this is R = P / 100 (N + 1).

Task 3
Presenting and reporting your findings
a) With the aid of spreadsheets produce graphs to help draw valid conclusions on the
survey
Q1 . is convenience ,save time and avoiding crowd the factors influence online shopping
decision?
Strongly agree
18%
Agree
65%
Neutral
18%
Conveniece save time influence purchaise decision
The data shows that the 65 percent of the customers that is the highest number of respondents
show that the customers mainly prefers the online shopping channels due to the three major
factors that are convince, time and crown. Due to these three major factors, customers prefer
the online platforms more than others. The high percentage of the number respondents
agreeing that the online platforms are more convenient shows that, customers are gradually
tending towards shifting their preferences from online platforms to virtual shopping
platforms.
Q2. Is all time shopping such as 24/7 accessibility is one of the factors influence purchasing
decision

Strongly agree
13%
Agree
75%
Neural
8%
Disagree
5%
24/7 accessibility influence online shopping
The data shows that the respondents believe that online platforms provide more accessibility
to products. For example, they can surf the products whenever they wants. Most of the
respondents that are 75 percent of the respondents agree that accessibility is one of the core
factors that influences purchase decision making of customers. In an online platform, a
customer gets the opportunity for ordering and viewing the products whenever they want.
Therefore, from this data it can be concluded that the 24/7 accessibility of online platforms
are one of the major reasons for why customers prefer online platforms.
Q3. Online shopping platforms provide sufficient information and explanation about the
product?

Strongly agree
10%
Agree
63%
Neutral
18%
Disagree
10%
Oline provide more information about the product
The data shows that the respondents believe that the online platforms provide more
information regarding the products and services. The majority of the respondents that is 62
percent of them have stated that virtual platforms provide more information. In formation
search is one of the main parts of stages of consumer behaviour. Therefore, it can be
concluded that the availability of data is one of the basic reasons why the customers are
getting more inclined towards the online platforms.
Q4. Is variety of globally product, promotion and advertisement the factors influence online
decision?
Strongly agree
15%
Agree
73%
Neutral
13%
variety of globally product, promotion and advertisement the
factors influence online decision

Most of respobednts agree that the Marketing activities have a core influence in the decision
making process of organisations. Most of the respondents that is 72 percent of them stated
that marketing promotions and some other similar activities have a core influence in the
decision making process of the organisations.
Q5. Internet reduces the monetary of traditional shopping to great extent (ex: parking fee
travel cost, time...?
Stongly agree
28%
Agree
60%
Neutral
10%
Disagree
3%
Internet less cost compaire to traditional shopping
According to the analysis, 27% of the respondents strongly agree with the fact that Internet
reduces the monetary of traditional shopping to great extent. While majority of the
respondents, which is 60% just agrees with the proposed fact. 10% of the respondents have
neutral reaction and 3% disagrees with the given fact.
Q6. What is the general purpose of your visit to high street shops and malls?

Window shopping
10%
Simply shopping
68%
Entertainment
5%
Hang out with
friend and have a
quality time
18%
the purpose for visiting high street mall &shops
From the analysis, 18% of the respondents hang out with their friend and spent quality time
in the high street shops and malls. While majority of the respondents, which is 67% simply
goes for shopping in the malls. 10% of the respondents have the purpose for window-
shopping and 5% goes to these malls for watching movies and shows. This concludes that
majority of the respondents goes for shopping. There is wide difference between purpose of
shopping and entertainment purposes.
Q7.How often do you go shopping on high street shops?
One a week
38%
Once a moth
35%
More than once a
month
13%
Rarely
15%
how often people shop from high street
From the above analyzes, the respondents mostly visits the malls only once in a week and
that is equal to 37%. The respondent who visits the malls once in a month is equal to 35%.

Most of the respondents choose to visit malls and a high street shop fluctuates between once
in a month and once in week. While there are some respondents who prefer to spent time in
the shops, more than once in a month and that is equal to 13%. The rest 15% rarely visit the
shops and like to spent time in other recreational places.
Q8.On average, how often do you use online for shopping?
Once a day
3%
Twice a day
10%
Once a week
38%
Once a month
43%
Other
8%
Customer shopping habits
The analysis shows the consumer shopping habits during online sales. Majority of the
respondents shops from the online marketing sites once in a month that is equal to 43%. The
difference between the respondents shopping once in a month and once in a week is 6%.
While 10% of the respondents are crazy towards the online shopping sites and prefer to shop
twice a day. Rest of the respondents comes in the category of purchasing products once in a
day.
Q9. What do you personally prefer when shopping?

Online shopping
40%
Traditional in store
shopping
55%
From agent’s
5%
online shopping VS traditional shopping
This analysis comprises the comparison between traditional shopping versus online shopping.
According to the report, 55% of the respondents prefer traditional shopping and opts to shop
from the shopping malls. They are keen to roam around the shops, compare among the
products and price range and then prefer to purchase the products. While the rest of the
respondent goes with online shopping and shopping from the agents. The difference between
them is equal to 45%.
Q10. What is your gender?
Male
40%
Female
60%
Chart Title
The respondents who prefer shopping from the online stores either offline shops or shopping
from the agents are actually 60% female and 40% males. Females are more attracted towards
shopping whether it is from the online stores or from the shopping malls and complexes. The

male shows less interest than compared to that of females and actually prefers other social
activities rather going to the shops.
Q11. In which age group do you belong?
18-24
8%
25-34
40%
35-44
33%
45-54
15%
55Over
5%
Chart Title
There are mainly five age groups that show interest towards shopping, whether it is from the
online stores or from the shopping malls and complexes. Majority of the respondents falls
under 25-34 age group while there are least number of respondents over 55 years. The 18-24
age group is comparatively equal to the 55 year age group. Therefore, the respondents who
prefer shopping belongs to adolescent age group and the old aged people and the teenagers
seem to rarely visit the shopping malls and shows interest in other recreational activities.
b) Create trend lines in spreadsheet graphs to show the level of impact over a minimum
of 3 year period (this could be based on secondary data).
Offline
2016 92
2017 87
2018 85
2019 65
2020 55
2021 42

2015 2016 2017 2018 2019 2020 2021 2022
0
10
20
30
40
50
60
70
80
90
100
f(x) = − 10.4571428571429 x + 21178.7428571429
R² = 0.944549428853476
Series2
Linear (Series2)
Figure: Offline purchase decline
Online
2016 23
2017 38
2018 45
2019 50
2020 56
2021 60
2015 2016 2017 2018 2019 2020 2021 2022
0
10
20
30
40
50
60
70 f(x) = 6.97142857142857 x − 14026.4952380952
R² = 0.94152872957302
Series2
Linear (Series2)

Figure: Online purchase decline
Task 4
Software-generated information to make business decisions
a) How do the following systems serve the various levels of management in a business?
You are to describe their characteristics and the roles they play in a business
I. Transaction processing systems (TPS)
TPS is a technical process, which captures, stores, enters, processes and retrieves all the
related details of a business event and generate the data along with important documents
required for successful running of an organization. According to Silberschatz et al. (2014),
this is a subset of different operational subsystem of a company, recording the work done.
Important data collected and stored by the Transaction processing systems serves two
different purposes. Firstly, to aid daily routine functions by being created accessible to those
portions of the company in which they are required. Secondly, in order to provide the
management reporting system as well as produce reports regarding the significance and
efficiency of the operations. As per the observations of Appelbaum et al. (2017), the value of
transaction information goes beyond mere functions because large volumes of full data could
be applied as a historical reference for forecasting, recognizing demands and trends,
evaluating performance. On the other hand, acknowledging a Transaction processing system
could be accomplished as well as two various dimensions such as “externally versus
internally, and logically (what it does) versus physically (the technology based on which it
works)”. Although et al. (2017) have said that this system is primarily concerned with daily
operations, it does act as a crucial strategic responsibility in the company, for it is along with
the functional level of a company, which consumers and suppliers interact and if the
Transaction processing system is not operating satisfactory, then those exterior relations
tends to suffer.
II. Management information systems (MIS)
This type of system that combines of many entities and parts, which works together to
achieve specific functions so that the organization could reach to target customers and could
attain business objectives. MIS or the management information system is generally a

computer based technology that helps to provide information for the core organizational
decision-making process (Kroenke and Boyle, 2015). All the components that this system
involves are hardware components including output and input procedure that help in the
storage of information. Basically, this system is applied by organizations for processing of
data.
III. Decision support systems (DSS)
The “DSS” (Decision support system) is a kind of “computerized information system”
applied to support al the decision-making process within a company. The Decision support
system lets service users shift through and evaluate massive collection of data and compile
data, which could be applied to measure and solve problems an ensure effective decisions.
This is a users support system that helps manages and leaders of a company to track and
gather information. According to Reason (2016), the system aids to solve and spot challenges
faced by organizations and offers total operational management of a company to take
supportive and relevant decisions that would help company’s operations to attain the aims.
b) A publisher has just signed a contract for the publication of a book. What is the
earliest date that the book can be ready for distribution based on the following activities
with time estimates
Figure 11: Activities with time estimate
(Source: Created by the learner)

c) Using financial tools for decision making advice a business planning on investing in a
project.
The projected cash flows over 4 years are shown below.
Year 0 1 2 3 4
Cashflows (15,000) 8,000 10,000 5,000 5,000
Table 1: projected cash flows over 4 years
(Source: Created by the Learner)
Figure 12: Business planning on investing in a project
(Source: Created by the Learner)
d) If the rate of finance at which the business can borrow is 10% calculate the NPV and
advice if it is worth considering this investment.
Year Cash Flow Discounting
Factor at 10%
Discounted cash flow
0 -15000 1 -15000
1 8000 0.909091 7272.727
2 10000 0.826446 8264.463
3 5000 0.751315 3756.574
4 5000 0.683013 3415.067
7708.831
NPV 7708.831

IRR 35%
Table 2: The NPV
(Source: Created by the learner)
e) Calculate the Internal Rate of Return (IRR) and explain the meaning of the result.
Any company, mainly the online retail has developed the IRR and it is superior to the cost of
organizational capital. The “Internal Rate of Return” is greater than the cost of capital than
the assignment inflow that would be clearly greater than the project outflow. The outflow and
inflow are main parts of a market share.
Conclusion
With the development in the technological processes, online shopping has occupied a large
majority in the market share. Consumers slowly but steadily are adopting new processes of
online shopping due to the expediency in the information collection and market share. On the
other hand, the concept of not visiting to the market has developed the scope for online
transactions of several companies. The buying factors have become effective with the use of
latest methods of payment. This study has been outlined regarding different future scopes
possibilities of online shopping. At the end, online shopping has developed with the influx in
the services and products from the online markets. Challenges risks factors have reduced with
the development of the online shopping. From the above analysis it has been extracted that
online shopping trends are gradually developing due to various reasons. Customers currently
inclined to the online shopping trends because they have no such time to visit physical stores.
Organizations should grab this opportunity and expand their operations into online selling. In
this way organizations could achieve more customer attention.

Reference list
Silberschatz, A., Galvin, P.B. and Gagne, G., 2014. Operating system concepts essentials.
John Wiley & Sons, Inc..
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. International Journal of
Accounting Information Systems. International Journal of Accounting Information
Systems, 25, pp.29-44.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Kroenke, D.M. and Boyle, R.J., 2015. Using Mis. Prentice Hall Press.
Reason, J., 2016. Managing the risks of organizational accidents. Routledge.