Impact of Digitalization practices on customer buying behavior
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This research project analyzes the impact of digitalization practices on customer buying behavior with a focus on Morrison. The report includes literature review, research methodology, findings, and recommendations.
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TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION..............................................................................................1 CHAPTER TWO: LITERATURE REVIEW..................................................................................3 CHAPTER THREE: RESEARCH METHODOLOGY..................................................................7 CHAPTER FOUR: FINDINGS (DATA ANALYSIS AND PRESENTATION).........................10 CHAPTER FIVE: DISCUSSION (DATA INTERPRETATION)................................................16 CHAPTERSIXCONCLUSION,RECOMMENDATIONSANDIMPLICATIONSFOR FURTHER RESEARCH...............................................................................................................18 REFERENCES..............................................................................................................................20 APPENDIX....................................................................................................................................22
CHAPTER ONE: INTRODUCTION Title: Impact of Digitalization practices on customer buying behavior. Background of the study In the present business environment, scope of digitalization has increased as compared to previous which is basically boosting performance of organization.Digital practices are highly contributing to enhance performance of organization by inclining efficiency and productivity to increase profitability of organization. Trends in retail sector is changing which require firm to focus on gaining significant information in turn higher ability to coordinate with changing requirements can become possible. There is rapid change in technological utilization which has increased needs of firm to concentrate on applying such course of action that can contribute in meeting requirements of customer. There are several platforms which are used by firm for connecting with customers so that accomplishing objectives of organization in effective manner can become possible. The current report is based on Morrison which operates in retail sector and holds the position as one of significant participant. The recent study will involve impact of Digitalization practices on customer buying behavior. Research aims and objectives Aim: To determine the impact of digitization practices on the customer buying behavior: A study on Morrison Objectives: To determine the concept of digitalization practices and customer buying behavior in business To examine digitalization practices adopted by Morrison To analyze the impact of capitalization practices on customer buying behavior in Morrison To recommend strategies for improving digitalization practices to impact customer buying behavior Research question What is the concept of digitalization practices and customer buying behavior in business? How to examinedigitalization practices adopted by Morrison? How to analyze the impact of capitalization practices on customer buying behavior in Morrison? 1
Whicharerecommendstrategiesforimprovingdigitalizationpracticestoimpact customer buying behavior? Rationale of the study The main reason behind conducting particular research is to analyze the impact of digitalizationon buying behavior of customers. It is important for the organization to give emphasis on having significant application of digitalization activities in turn higher profitability can be derived. This is considered to be one of the significant issue which is required to be ascertained for having relevant information regarding significance, impact and strategies to improve prevailing performance. It is helpful in gaining depth details so that appropriate approach to improve prevailing situation become possible. Significance of study The particular research based on assessing the impact ofdigitalization practices on customerbuyingbehaviorwillbehelpfultomakeappropriatedecisioninturnhigher profitability and sustainability can be derived. Morrison as being one of the successful operator in the retail sector require focusing on having relevant processing by identifyingcrucialfactors that influences purchasing decision. The recent study is useful for similar organization which are participating in same sector as details of relevant insights regarding factors affecting, etc affecting purchasing decision. Learners who are conducting research on particular research topic can get information in order to conduct effective study. 2
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CHAPTER TWO: LITERATURE REVIEW Theme 1 : According toHendriarto, (2021)the digitalization practices the use of digital technology is called digitalization. Digitalization has been found to be very effective towards changing the business operations. It can be said that with the help of the business model and revenue stream the business opportunities. Digital transformation is considered to be very useful for the business in order to bridge the digital strategy towards transformation.Imgrund and et.al., (2018)added to that by saying that some businesses are more active in utilization of digitalization which helps them in transformation of their enterprise towards a wider phenomenon. This transformation of the business activities. Processes. Competencies and models has the power of leveraging the changes and opportunities of digital technology. This across society in a strategic and prioritized way. This allows the business in the creation of innovation and inventions to their business operations. As per the view ofIlcus, (2018)consumer buying behaviour refers the those actions which are taken by the consumers for buying a product and service. In this process the consultation of search engines, towards engaging with social media posts for the variety of the other actions. Businesses try to influence the consumer behaviour through different ways which may or may not include the digitalization process. It is the process of successfully influencing the consumers for impacting the process of the business.Kraus and Kraus, (2021)support through the analysation of experience which the customers have while walking in the store is also something which influences their decision for behaving. There are many digital practices which are done by the business for providing efficiency in the organizational practices. The consumer behaviour decision also depends on of the factors which include the culture, social, personal and also the psychological. Theme 2 : From the analysation ofCagle, Yılmaz and Doğru, (2020)it was understood digital practices is imperative for all the business. Application of the digital practice needs to be on the problem statement which would provide the clear opportunity for the aspiration goal. Generally the business use digitalization for improving the customers experience, increasing productivity and elevating profitability. Business utilizing technology is able to attract more customer and talent.Laudien, Bouncken and Pesch, (2018)support this by saying that businesses are able to 3
automate its operations which would help their operations for helping with the topics and data analytics, technologies and software. The customer view for products and services is considered to be very cool for leadership and culture which can help in the developing an understanding of the organization. Businesses take digital transformation for the many reasons it allows the business to survive in the organization. Analysation ofRachinger and et.al., (2019)can be understood with the help of the consumer behaviour is said to be the analysation of the first visited for producing the online practices which help in reading the customers review for assessing the prices delivery and similar products of the organization. The business of the organization are required to produce the content and the produce the creative extensive and products for description for the aspects that focus on the organic and social media for the customer journey for staying relevant in the competitive markets.Urbach and Röglinger, (2019)understood that the artificial intelligence can undoubtedlyshouldunderstandthesignificanceunderstandingandimpactsofconsumer behaviour. There are many organizations which promote the products and services that are more effective and is considered to very influential in the convenience of choosing the products and services. It can be said as the efficiency. Theme 3 : Hofacker and et.al., (2020)said that the impacts of the digitalization practices for the consumer's buyer limited for the buying behaviours has been seen in the adaptation of the digital marketing approach and strategy. The information which is needed in the work for consumer behaviour is considered to be desire to improve their shopping experience and as a result of forcing businesses adapt their digital marketing approach and strategy. It can be said as the consumer behaviour which allows the organization in the gaining a better understanding of market expectations.Gobble, (2018)argue on that by saying that understanding the consumer behaviour practice helps in the analysation of the individual, groups for organization and activities for associated purchase which is the disposal of the goods and services for the consumers emotions attitude and preferences for affecting the shopping experience which is seen in the sales figure. Social media is known to be one of the most effective use of digitalization for enhancing the user experiences. Cijan and et.al., (2019)analysed that the impacts of the digitalization is very clear on the consumer decision-making. It can be said that the demand of products and services for the social 4
media can provide the consumers of bigger voice and new channels for the communication of the brandswhichhelpsthe organizationin acceleratingthetrendsin theconsumer for acceleration of the company's evolution. Digitalization helps the business to get more and more connected of consumers for the analysation of the organization.Moşteanu, Faccia and Cavaliere, (2020)explained that the consumers are able to connect through the means of social media and are able to develop good relations with organization. Customers are considered to have higher expectation when they are directly or indirectly influenced by the technology of the business. It allows them to expect more responsive, relevant and targeted communication of the products and services which help the company to influence them directly or indirectly. Theme 4 : Legner and et.al., (2017)said that digital technologies are said to change dramatically the organization through reshaping which is considered to be the effective in the industry. It can be said that with the help of digital survey the organization is able to get the required feedbacks such that they can successfully improve the performance of the equipment which provides the sustainability in the changes in the long term. Taking feedbacks from the customers can help the business in understand the changes they need to make in their practice for influencing the customers decision-making process.Moşteanu, Faccia and Cavaliere, (2020)added to that by saying that the importance of the factor for the success of the organization through the digital changes. Digital technologies allow the organization to improve the employee productivity. Digitalization of the organization has helped the business with calculation risk taking, increased collaboration and customers centric and the previous research for showing the effects of the organization performances. From the evaluation ofLaudien and Pesch, (2019)it can be understood that digital tools which are used for the digitalization of the process which can support the success. Digitalization is considered to provide the business with way in which it can improve the existing practices through upgrades of the digital platforms. Digitalization can help the business in the modi- faction of the different operations which would provide the technologies for development of interactive tools.Luz Martín‐Peña, Díaz‐Garrido and Sánchez‐López, (2018)added to that by saying that the traditional and digital methods are seen to follow the practices which are considered to be successful for the transformation of more than three times. It can be said that 5
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key for the senior leaders for fostering a sense of urgency is towards making changes in the practices which is helpful for good communication of the central practices. 6
CHAPTER THREE: RESEARCH METHODOLOGY Research type: There are two types of research which can be used by research for conducting particular research. It involves qualitative and quantitative research which is already taken into utilization foraccomplishinghighlightedobjectives.Qualitativeresearchisrelatedwithobtaining information from the theoretical point view. In addition to this, it pays attention on having the experience, knowledge and view of particular segment in turn better decision can be formed. Quantitative research is based on achieving numerical and fact based information.For recent study qualitative research has been used for ascertaining views, experience and studying theoretical concept. The main reason behind applying this type of research as studying impact of digitalization activities on purchasing decision. Research Approach Inductive and deductive are two types of research which can be taken into consideration by scholar. It is basically related with particular plan and procedure that consist information regarding steps which will be followed by firm for carrying forward research. Inductive is concerned with gathering data, looking for the pattern and developing pattern. Deductive is e related with having theory, analyzing data and then developing theories. For the recent study of analyzing the impact of digitalization practices on customer purchasing decision inductive approach is suitable. In this data will be collected and then analyzed and applying theory so that appropriate outcome to meet objective of examining such activities, etc. Research Philosophy It is associated with the pattern of collecting data, analyzing and utilization phenomenon for having relevant insights to attain the objectives. There are two tow kinds of philosophy such as interpretivism and positivism(Bouwman, Nikou and de Reuver, 2019). Interpretivism is based on the principle which states detail explanation of collected data. Positivism is concerned with factual knowledge gained through observation so that particular aspect can be interpreted. Current report is based on ascertaining influence of digitalization activities on customers buying decision. Data collection : Research tools has two forms of collecting data which is helpful in gaining significant information so that purpose of conducting research become possible. Research tools play 7
significant role in helping organization to have proper level of information so that meeting objectives can become possible it comprises primary and secondary method for gaining details regarding impact of such activities on customer buying behavior. The primary method is basically gathering data from particularly for the specific issue which has not been used bu others. Secondary research is related with gaining details from the journals, articles, books, etc for supporting the collected data. The primary method uses tools like spreading questionnaire, interview checklist, etc. In addition to this, the current research comprises utilization books, journals, etc. In the primary method questionnaire has been sent to customers for understanding their views, etc. Sampling: Selecting an appropriate form of segment of total populations o that significant data can be obtained from them to fulfill purpose of recent study. There are different kinds of sampling strategy which can be used by scholar for completing objectives of the current study involves random, convenience, systematic, stratified, cluster, quota, snowball, etc. The current research has utilized random sampling technique for gaining information for gaining opinions, views, experience from the customer. 20 customers of Morrison has been selected by using the random sampling technique for gaining information regarding the factors affecting decision-making process. Data analysis This is the process which is considered to be systematic towards its application of the statistical and logical techniques and description for the illustration and evaluation of data (Lee, Falahat and Sia, 2019). The analysation of the responses which are collected from the surveys that are considered to be essential in the implementation of the thematic perception technique. The reason for the section of this analytical and qualitative data is effectual. This provides the understanding of the importance of the qualitative data in the analysis in the research and its techniques. For such a consideration of the analytical qualitative data is essential for the different themes which are prepared for their preferences and analysation. Reliability and validity It can be said that ensuring the validity aspects the research papers can help in the articulation of the published which effects the organization considered. This research also considered the research topic articles for selection of the reasons that show validation towards 8
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the research. Further, in addition to this it can be said that taking into an account of the copyright helps the protection of the sources which is the secondary data that can provide reliability in the presentation aspects. Research limitations There were many limitations to the research such as the time, money and unavailability of sources which are recognized as the main limitations. This can be said due to the fact that the having limited time frame for the preparation of this research or the money quantitative tool like the SPSS has been said as the main reason for the limitation to this study. However, for avoiding the risk of these limitations the thematic analysis has been chosen. As the current issues is related to the qualitative aspects this technique is considered to be very suitable for developing success which is suitable in the organization. Ethical considerations In the recent study the researcher has given focus on having appropriator consent forms from the customers. It is helpful in showing willingly participation of customers in the particular survey so that correct details regrading their views and opinions can be derived. 9
CHAPTER FOUR: FINDINGS (DATA ANALYSIS AND PRESENTATION) Theme 1: Gender ParticularsRespondentsResponses in % Female1575.00% Male525.00% Total20100.00% Theme 2: full time currently employment status of customers ParticularsRespondentsResponses in % Full-time employment1050.00% Part-time employment525.00% Self-employed210.00% Unemployed315.00% Total20100.00% 10
Theme 3:Monthly income range is £100-200 ParticularsRespondentsResponses in % £100-200945.00% £200-300735.00% £300-400210.00% £400-50015.00% Above £50015.00% Total20100.00% 11
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Theme 4: £50-100 is spent on purchasing for monthly ParticularsRespondentsResponses in % £50-100840.00% £100-150210.00% £150-200630.00% Above £200420.00% Total20100.00% Theme 5: Online method of purchasing is mostly preferable ParticularsRespondentsResponses in % Online1575.00% Offline525.00% Total20100.00% 12
Theme6:customersagreedigitalmarketingpracticesHelpfulingainingsufficient information for purchasing decision ParticularsRespondentsResponses in % Agree1050.00% strongly agree315.00% Neutral210.00% Disagree15.00% Strongly disagree420.00% Total20100.00% Theme 7:Social media marketing digital practice is most suitable for you ParticularsRespondentsResponses in % Chatbot525.00% Email marketing315.00% Social media marketing735.00% Social commerce and stoppable posts 210.00% Strongly disagree315.00% 13
Total20100.00% Theme 8: Effective communication feature of adopted digital practices is highly beneficial for you ParticularsRespondentsResponses in % Less time-consuming15.00% Multiple location15.00% Effective communication1575.00% Varied level of discover ability210.00% Strongly disagree15.00% Total20100.00% 14
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Theme 9: Customers are satisfied with digital practices adopted by Morrison ParticularsRespondentsResponses in % Very satisfied525.00% Satisfied1260.00% Neutral15.00% Dissatisfied15.00% Very dissatisfied15.00% Total20100.00% 15
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CHAPTER FIVE: DISCUSSION (DATA INTERPRETATION) From the presented data it can be interpreted that in the particular survey there are higher female who respondents. In addition to this, it can be interpreted that there current employment status is full time as out of 20 respondents 10 have voted this. On the other side, 5,2 and 3 customers respectively have employment status of part-time, self-employed and unemployment. It can be justified with the opinion ofLegner and et.al., (2017)there are different kinds of employment opportunities which are available and occupied by persons has higher impact on purchasing decision. Full employment status possessing employees tend to buy goods from highly branded companies. This can be justified that employees' status has higher impact on processing of company. The above presented data for the monthly income of customers indicate that £100-200 is mostly possessed by 9 customers. On the other side, most of the customers spend £50-100 on monthly purchasing from specified organization. On the basis of this, it can be specified by referring opinion ofBloomberg (2018)there are several factors which has influence on purchasing decision of customers. The one of the significant factor which has influence on processing of buyersinvolves income earned by them. Customers spending power is largely dependent on the level of income earned by them. There are various elements of digital marketing practices which positively affect the buying decision of buyers but the amount earned by them and budget for spending highly matters for the organization.Its crucial for the person to make budget for having significant purchasing according to the income for maintaining good lifestyle. On the basis of this, it can be specified that income is one of the factor which has influence purchasing decision-making. Thepresented data collected from the survey is indicating that online purchasing method is highlyreferredbythecustomers.Respondentshavehighlygivenimportancetoonline purchasing as 10 customers has selected this category. On the other side, offline method is not preferable for the customers. It can be valid by looking at the opinion ofRachinger and et.al., (2019)in the current era, there are several methods of purchasing has emerged that is providing number of benefits to customers. The one of the significant method that is currently adopted by buyers in the recent time is having connection with digital practices as enable to have relevant processing. The benefits involve higher efficiency, varied options, effective communication 17
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method, etc. On the basis of this it can be specified that online method is considered by the customers for having number of specified benefits. From the provided gathered data it can be interpreted that there are several requirements of factors while making purchasing decision. 10 customers out of the 20 respondents have chosen the agree option from the survey. It indicates that customer found digital marketing practices being beneficial in having significant information which i crucial for decision-making. In contrast to this, it can be mentioned that there are other options as well which involve strongly agree, n neutral, disagree and strongly disagree which 3,2,1 and 4 respectively. It can be justified byCagle, Yılmaz and Doğru, (2020)statement that in the present working environment there is requirement to pay attention on having relevant, reliable, timeliness, etc information which can contribute in making sound decision. The present digital practices are leading to several frauds, errors, etc which might impact the customers adversely in both financial and non financial aspects. On the basis of this, it can be specified that in digital functioning there are several ways in which collecting information and permit making strategic purchasing decision. The presented table reflects that effective communication which involves respondents of 15 customers. In addition to this, the other features are less time-consuming, multiple location, varied level of discover ability, etc. the main feature that has been identified from the evaluation is that effective communication method contribute in achieving significant knowledge regarding offers, discounts, etc. It is helpful for the organization to get higher productiveness and effectiveness in turn making sound business decision can become possible. There are several kinds of features which are provided by digital practices but one of the significant nature of it is that it allows conducting proper communication in turn higher desirable outcome can be derived. From the ascertainment of customer satisfaction which indicate that buyers are highly satisfied as h12 respondents has given focus on this. In purchasing decision there are number of factors which are required to be taken into consideration as affects the processing of customers. The one of the significant component which is needed to be involved is their satisfaction with the digital service provided by firm. On the basis of this, it can be specified that customers are satisfied with these. 18
CHAPTERSIXCONCLUSION,RECOMMENDATIONSAND IMPLICATIONS FOR FURTHER RESEARCH Conclusion From the above report it can be concluded that there is higher impact of digital marketing practices on customers buying decision. The current research report has comprised involvedobjectivesand aimwhichhasbeenaccomplishedthrough followingprovided structure. Recent study has given emphasis on answering research questions so that accurate details can be provided to understand depth of cBouwman, H., Nikou, S. and de Reuver, M., 2019ustomer decision. In addition to this, present research report has involved literature review which has been made by following the articulated themes. It has involved research methodology by involving type, approach, philosophy, data collection, sampling technique, etc so that reliable formulation of report can be seen. Questionnaire has been sent to selected sampling size. The data obtained has been presented in findings anddiscussion conducted to obtain deeper information. Recommendations It is recommended to Morrison to adopt effective application of digital marketing practices for providing positive impact on customers. The main reason for the success in thecurrentenvironmentistofocusonhavingappropriateapplicationofdigital marketing. The main reason behind applying the particular approach is to get ability to connect with customers. It comprises display, email, social media marketing, etc. In addition, this, having appropriate ability to make customers aware about products so that higher positive impact on customers can be derived. This is suggested to the organization to focus on having market analysis so that information regarding current prevailing trends can become possible. In addition to this, Morrison can get depths details regarding prevailing circumstances so that suitable digitalactioncanbeimplemented.Themainreasonbehindapplyingthisisto coordinate with changing situations. It is advised to Morrison to focus on having utilization of business and artificial intelligence to achieve significant ability to use data in decision-making process of business. The fact underlying behind applying this is to gain higher efficiency & 19
effectiveness sin organizational process to get higher customer satisfaction which can lead to make decision in favor of firm. Implications for further research It can be done by conducting quantitative research through broadening the topic. This can be helpful in having relevant availability of information that is useful in appropriate decision. Conducting quantitative research with SPSS can be helpful in gaining numerical and fact based data that can highly incline benefits of company. 20
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REFERENCES Books and Journals Bloomberg, J., 2018. Digitization, digitalization, and digital transformation: confuse them at your peril. Forbes. Retrieved on August. 28. p.2019. Bouwman, H., Nikou, S. and de Reuver, M., 2019. Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?. Telecommunications Policy. 43(9). p.101828. Cagle, M.N., Yılmaz, K. and Doğru, H., 2020. Digitalization of business functions under Industry 4.0. In Digital Business Strategies in Blockchain Ecosystems (pp. 105-132). Springer, Cham. Cagle, M.N., Yılmaz, K. and Doğru, H., 2020. Digitalization of business functions under Industry 4.0. In Digital Business Strategies in Blockchain Ecosystems (pp. 105-132). Springer, Cham. Cijan, A., and et.al., 2019. How digitalization changes the workplace. Dynamic relationships management journal. 8(1). pp.3-12. Gobble,M.M.,2018.Digitalization,digitization,andinnovation.Research-Technology Management. 61(4). pp.56-59. Hendriarto, P., 2021. Understandingof the roleof digitalizationto businessmodel and innovation: economics and business review studies. Linguistics and Culture Review. 5(S1). pp.160-173. Hofacker, C., and et.al., 2020. Digital marketing and business-to-business relationships: a close look at the interface and a roadmap for the future. European Journal of Marketing. Ilcus, A.M., 2018. Impact of digitalization in business world. Revista de Management Comparat Internațional. 19(4). pp.350-358. Imgrund, F., and et.al., 2018. Approaching digitalization with business process management. Proceedings of the MKWI, pp.1725-1736. Kraus, N. and Kraus, K., 2021. Digitalization of business processes of enterprises of the ecosystem of Industry 4.0: virtual-real aspect of economic growth reserves. WSEAS Transactions on Business and Economics. 18. pp.569-580. Laudien, S.M. and Pesch, R., 2019. Understanding the influence of digitalization on service firm business model design: a qualitative-empirical analysis. Review of Managerial Science. 13(3). pp.575-587. Laudien,S.M.,Bouncken,R.andPesch,R.,2018.Understandingtheacceptanceof digitalization-based business models: A qualitative-empirical analysis. Academy of Management global proceedings. (2018). p.104. Lee,Y.Y.,Falahat,M.andSia,B.K.,2019.ImpactofDigitalizationontheSpeedof Internationalization. International Business Research. 12(4). pp.1-11. Legner, C. and et.al., 2017. Digitalization: opportunity and challenge for the business and informationsystemsengineeringcommunity.Business&informationsystems engineering. 59(4). pp.301-308. Legner, C., and et.al., 2017. Digitalization: opportunity and challenge for the business and informationsystemsengineeringcommunity.Business&informationsystems engineering. 59(4). pp.301-308. 21
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and servitization of manufacturing: A review on digital business models. Strategic Change. 27(2). pp.91-99. Moşteanu, N.R., Faccia, A. and Cavaliere, L.P.L., 2020, August. Digitalization and green economy-changes of business perspectives. In Proceedings of the 2020 4th International Conference on Cloud and Big Data Computing (pp. 108-112). Moşteanu,N.R.,Faccia,A.andCavaliere,L.P.L.,2020,August.DisasterManagement, Digitalization and Financial Resources: key factors to keep the organization ongoing. In Proceedingsofthe20204thInternationalConferenceonCloudandBigData Computing (pp. 118-122). Rachinger, M. and et.al., 2019. Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management. Rachinger, M., and et.al., 2019. Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management. Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations rethink their business for the digital age. In Digitalization Cases (pp. 1-12). Springer, Cham. 22
APPENDIX Questionnaire 1. Gender: Female Male 2. What is currently employment status? Full-time employment Part-time employment Self-employed Unemployed 3. What is monthly income range? £100-200 £200-300 £300-400 £400-500 Above£500 4. How much you spend on purchasing for monthly? £50-100 £100-150 £150-200 Above £200 5. Which method of purchasing is mostly preferable? Online Offline 6. Are digital marketing practices Helpful in gaining sufficient information for purchasing decision? Agree strongly agree Neutral Disagree Strongly disagree 23
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7. Which digital practice is most suitable for you? Chatbot Email marketing Social media marketing Social commerce and shoppable posts 8. What feature of adopted digital practices is highly beneficial for you? Less time-consuming Multiple location Effective communication Varied level of discoverability 9. Are you statised with digital practices adopted by Morrison? Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied Any recommendations …........ 24