Impact of Rational Decision Making and Bounded Rationality on Consumer Behaviour in FMCG Sector

This report evaluates the impact of rational decision making and bounded rationality on customer behaviour in the FMCG sector, with a case study on Tesco PLC. It examines the concept of bounded rationality, the importance of analysing consumer behaviour for Tesco, and the influence of external environmental factors on consumer behaviour. It also explores the potential impact of Brexit on Tesco and its effect on consumer behaviour.

DISSERTATION

EXECUTIVE SUMMARY
This report is based on the evaluation of rational decision making and bounded rationality
on customer behaviour in FMCG sector. It is one of the famous and fastest growing sector that
provide variety of products to customers in market place with the aim of satisfying their needs
and wants. In this, Tesco is a famous British multinational company that operate their business in
retail sector and also provide quality services to large number of customers in order to improve
their satisfaction level. This is the main reason that research will be carried out in which clear
aim along its objectives and questions is mentioned by the investigator to find out the issues.
Along with this, literature review is also completed on the basis of views and opinion of different
authors towards the selected research topic. Different research methodologies such as data
collection, research approach, research design, philosophy and many more that help investigator
to gather relevant data and information about the specified research area. All these are important
methods which used by investigator to undertake research activities in systematic manner.
Thematic analysis is also used by researcher to interpreted or analysis collected data to take
positive outcomes. At the end, recommendation and conclusion is also take a crucial part which
includes necessary improvement that required to implement. By these, whole research can be
easily completed in successful manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Overview of Research............................................................................................................1
Background of Research.........................................................................................................1
Rationale of Research.............................................................................................................2
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................3
Research Questions................................................................................................................3
LITERATURE REVIEW................................................................................................................5
Concept of bounded rationality in context of consumer behaviour.......................................5
Importance of analysing consumer behaviour for Tesco PLC...............................................6
Significance of rational decision making for a FMCG company...........................................6
Influence of external environmental factors on consumer behaviour....................................7
Potential influence of post Brexit on Tesco PLC and its impact on consumer behaviour.....8
RESEARCH METHODOLOGY...................................................................................................10
Type of investigation............................................................................................................10
Research approach................................................................................................................11
Research philosophy.............................................................................................................11
Research design....................................................................................................................12
Data collection......................................................................................................................12
Data analysis.........................................................................................................................13
Data sampling.......................................................................................................................13
Validity and Reliability........................................................................................................13
Ethical consideration............................................................................................................13
DATA ANALYSIS........................................................................................................................15
DISCUSSION................................................................................................................................44
Concept of bounded rationality in context of consumer behaviour.....................................44
Significance of rational decision making for a FMCG company.........................................44
Importance of analysing consumer behaviour for Tesco PLC.............................................44
Influence of external environmental factors on consumer behaviour..................................45

Potential influence of post Brexit on Tesco PLC and its impact on consumer behaviour...45
CONCLUSION AND RECOMMENDATION.............................................................................46
Conclusion............................................................................................................................46
Recommendations................................................................................................................47
REFLECTION AND ALTERNATIVE METHODOLOGY.........................................................48
Reflection.............................................................................................................................48
Alternative methodology......................................................................................................48
REFERENCES..............................................................................................................................49
APPENDIX ..................................................................................................................................51
Appendix 1: Cover Sheet for Research Proposal and Final Dissertation......................................51
Appendix 2: Dissertation Marking and Descriptors .....................................................................52
Appendix 3: Dissertation Research Checklist ...............................................................................59
Appendix 4: Important Contacts ...................................................................................................61

TOPIC - To evaluate the impact of rational decision making and bounded rationality over
the consumer behaviour in terms of FMCG sector in light of Brexit. A case study on Tesco PLC.
INTRODUCTION
Overview of Research
Rational decision making includes several steps to make choice among available
alternatives. It provides orderly path to solutions that results in optimal outcome which maximise
utility. On contrary, bounded rationality provides an idea to make decisions from the conceived
information which provide satisfaction to consumers by solving complex problems. Rational
decision making provides decision making techniques to address all desires by providing
information or factual data (Alós-Ferrer and Strack, 2014). Bounded rationality limits existence
of rational decision making as decisions based on rationality are depending on time constraints.
The rationale decision making is method for choosing among the possible choices which are
based on the facts and also reason. But bounded rationality limits the achievement of required
information or consumers get unreliable information regarding alternatives along with
consequences which reduces capabilities to evaluate information in order to make rational
decisions. The decision making under bounded rationality based on limited amount of efforts or
time consume to make the final decision.
Background of Research
Rational decision making is considered as a multi- step process for making better
decision between alternatives. This is based on the facts, logic, objectivity and analysis through
which individual can make a better decision towards the specified activity and aspect. Mainly, it
is a method for systematically selecting the possible choices taken by the people based on the
facts and valid reason. It directly impacts on the customer behaviour because while taking
decision consumers get various option to select the better one. It helps in maximizing benefits
and at the same time also minimize costs. For example, people want to buy useful and
satisfactory products at lower cost (Baldwin, 2014). This is the reason that they will judge the
benefits of certain objectives compared to similar object. In this, they will compare cost and
make decision accordingly. Rational decision making assumes that customers need full and
perfect information regarding products which they want to buy. They also measure the criteria to
collect and analysed the data in effective manner (Berndt, 2015). On the other hand, bounded
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rationality also play a significant role in providing ideas to make a decision by including the
conceived information which help in providing satisfaction to customers by making better
judgement through solving complex problem and situation as well. It also include limits
existence that is related with the rational decision making which is based on the rationality that is
depend on time constraints.
Mainly, rational decision making is related with time constraints and also works on the
assumption in which decision maker get proper information towards the alternative options and
cognitive ability or resources that may aid in maximising the benefits. Whereas, bounded
rationality include limits that contribute in attaining required information regarding the
alternative option in FMCG sector. As consumers has wider scope to select the better option by
making rational decision. In this context, decision making under bounded rational is related with
the limited efforts or time in which consumers have to take final decision to select the best one.
Both aspects are crucial for business organisation and customers because it largely affect their
decision and also support them to improve the chances of increasing profitability level of the
company at market place.
This research is based on Tesco plc, which is a British multinational groceries company
founded in 1919 by Jack Cohen with the aim of establishing its competitive brand image. After
Brexit, it has been evaluated that Tesco negatively impacted as increased overall cost of its
products and services which was difficult for customers to pay. This will negatively impact on
profitability level of the company at market place (Brounen, Kok and Quigley, 2013). In context
of FMCG sector, rational decision making and bounded rationality play a crucial role in making
better decision in which customers has certain option in products and services. This is the reason
that customers get largely affected towards both aspects. Thus, it is important for the company to
set their product range as per customer’s needs and wants so that they can easily satisfy their
requirements.
Rationale of Research
Current research is based on the evaluation the impact of rational decision making and
bounded rationality on the customer’s behaviour in regards to FMCG sector in light of Brexit.
This topic plays a crucial role in evaluating the actual behaviour of consumers in which they
make best decision from alternative options. With the help of this, they can easily improve the
chances of attaining certain benefits by reducing the cost (Caplin and Dean, 2015). As both
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factors play a significant role in develop the better solution or decision to select best option. This
is because individual get limited time, sources and capability to make positive judgement from
certain alternatives. In this regards, the main reason behind selecting this topic is to enhance
skills and knowledge of researcher in order to attain positive and reliable outcomes at the end of
the research. This type of research provide brief knowledge about the particular topic and area in
which research is carried out. With the help of this, researcher can easily enhance their
knowledge and also can attain success in future project activities by exploring their ideas and
opinions.
Research Aim
Research aim is one of the important and crucial part of research activities as it provides a
statement in which research issues are mentioned. Mainly, it provides a better direction to the
investigator to undertake research in better manner (Coimbra Carvalho and Afonso Mazzon,
2013). This will improve the chances of attaining valid and accurate information to resolve the
issues present in the research. In this context, the aim of this research report is “To evaluate the
impact of rational decision making and bounded rationality over the consumer behaviour
in terms of FMCG sector in light of Brexit”. A case study on Tesco PLC.
Research Objectives
 To examine the concept of bounded rationality in context of consumer behaviour.
 To ascertain the importance of analysing consumer behaviour for Tesco PLC.
 To identify the significance of rational decision making for a FMCG company.
 To identify the influence of external environmental factors on consumer behaviour
 To evaluate the potential influence of post Brexit on Tesco PLC and its impact on
consumer behaviour.
Research Questions
 Understand the concept of bounded rationality in context of consumer behaviour?
 What is the importance of analysing consumer behaviour for Tesco PLC?
 What could be considered as the significance of rational decision making for a FMCG
company?
 Explain how external environmental factors affects consumer behaviour?
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 What influence has been there of post Brexit on Tesco PLC and its impact upon
consumer behaviour?
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LITERATURE REVIEW
It is a narrative review of an article that provides the detailed information about some
specific area. This is completed as well as ongoing investigation that has been conducted to
determine current methodologies and the knowledge that may be appropriate. It helps in
providing the theoretical description regarding particular area. This part of research is based on
the secondary method of data collection. With the help of using books, journals, articles and
internet sources, researcher can gather the information and data in significant manner.
Concept of bounded rationality in context of consumer behaviour
On the basis of opinions of Cooper and Kovacic, (2012), it has been stated that Bound
rationality is defined to the idea associated with individual rationality and decision making is
limited as per the information perceived by them. It is considered as an alternative for
mathematical decision making modelling. At the time of making purchase decisions, consumers
emphasis on maximising utility which leads to make irrational decisions. Numerous consumers
do not have adequate information or data to take decisions that influences their behaviours for
various products. In general, consumers are overloaded with various alternatives at different
departmental stores and does not prefer to gather information due to less available time and they
make judgemental decisions. Bound rationality helps consumers to behave in rational manner
and taking rational consumer decisions. It helps in making choices after considering all relevant
alternatives that are available at departmental stores or market place. It influences decision
making process that leads towards gaining optimum beneficiary utility for consumers. They have
various options and their choices are based on preferences at the time choosing alternatives
which influences their behaviour at a great level. It is a concept that helps consumers to take
rational decisions in real world.
According to Ren and Huang, (2018), it has been observed that humans adopts rational
behaviour in solving complex problems to make decisions by mapping shortcuts in order to
enhance effectiveness of decision making. With the help of such rationality, consumers gain
information about alternative products and further, they evaluate each alternative as to make final
decision which can satisfy their needs. The choices are consistent with the requirements of self-
interest and makes reasonable decisions as per the conceived information. The consumer
behaviour stipulated in relevance to complex social phenomenon which drives behaviour of
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consumers. In this diverse world, bound rationality provide various procedures that helps in
selecting a suitable alternative among diverse available alternatives which mirrors consumer
behaviour.
Importance of analysing consumer behaviour for Tesco PLC
As per opinion of Gabaix, (2014), Consumer behaviour is a study of person, group of
company which is related with purchase, use and also disposal of products and services. It is a
branch that deal with different stages that a customer goes by before buying services or products
for their use. Under this, study about the consumer behaviour is related with all the aspects of
purchasing behaviour from their pre purchase activities to post purchase consumption,
examination and also disposal activities. Under this, study of the consumer behaviour assumes
that customers are the actors at market place. In addition to this, consumer behaviour is
observational activity that conducted for studying about behaviour of customers at marketplace
from time they are enter in market and take initiate about purchase till make thefinal purchase
decision. Understanding the consumer behaviour impacts in the marketing as well as public
relation decisions. It is a kind of decision process and the physical activity in which the people
are engage in examining, using and disposing of services and products in an effective manner.
Tesco is a large scale company that deals in retail sector. This company analyse
behaviour of consumers, in addition to make effective strategic marketing decisions. It will help
in determining the demands and needs of consumers and also provide them products accordingly.
Through determining consumer behaviour, before and at the time of purchase aids in
manufacturing, designing, costing, segmentation and the promotional activities. On the other
hand, through analysing the customer behaviour; Tesco company can provide value as well as
satisfaction to its consumers. It will help in attract large number of consumers and the reputation
of firm will be enhanced in an effective manner. In addition to this, firm can make improvement
in it's existing services or products by innovation. On the other hand, through analysing customer
behaviour, Tesco can gain the competitive benefit. If firm will provide high quality services to
customers according to their needs then it will develop its positive reputation of firm in front of
customers.
Significance of rational decision making for a FMCG company
On the basis of view point of Garcia, (2013), it has been stated that rational decision
making is a multi- step process for making the choices among different alternatives. It is a
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method for choosing systematically between possible choices based on the facts. Choice to
decide rationally can make possible in order to support decision maker through making
knowledge. In this, consumer have the full knowledge regarding alternatives as they have proper
time, resources and cognitive ability to examine choice against others. In this, people will make
the choices that will enhance advantages for themselves as well as reduce cost. In this, rationale
approach to the decisions depends on the obtained data scientifically that permit informed
decision making, minimizing chances of errors, assumptions, subjectivity etc. It is a traditional
approach to understand the decision making process. In addition to this, rationale decision
making is sequential and structures approach to the decision making and aimed at seeking the
better solutions of issues. In this, decision maker derives required information through statistical
analysis, modelling, observation and also make systematic analysis.
As per view point of Rabin (2013), The main importance of rationale decision making to
FMCG company is that it infuses process of decision making with consistency, logic and
discipline. It is a step- by- step approach that needs explain issues, determine weigh and the
decision criteria. In addition to this, rational decision making can assist decision makers to deal
with the complex issues in difficult environment. In order to resolve the issue, there will be need
to follow the steps which includes in the rational decision making. It is helpful in providing the
positive impact on development as well as productivity of FMCG organisation in significant
manner. On the other hand, it aids in taking the consensual and purposive decisions which are
based on the sound reasoning included all stakeholder which are included in consensual process,
purposive, sound reasoning etc.
Influence of external environmental factors on consumer behaviour
As per view point of Goldfarb and et. al., (2012), External environment is composed of
all outside factors which impact on business operations. Business should act to keep its
operations flow. It is complex for the manager to manage and control all the external factors and
develop positive impact on productivity of business. In addition to this, external factors impact
on the consumer behaviour in negative and positive manner. The influence of this environmental
factors identified as the social impact. It consists social norms, family roles, groups, subcultures
etc. which impact on the buying decision of consumers. Impact of external environmental factors
on consumer behaviour are mention below:
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Political factor- It is the most necessary external factor that impact on functioning of
business organisation. In this, Brexit factor is included as most necessary component that impact
on the buying behaviour of consumes towards services or products of an organisation.
Economic factor- It is one of most identifying factor that contribute towards success of
business even though it is external factor. It consists different factors such as economic crisis,
fluctuation in the interest rate and many others which directly impact on consumers purchasing
and economy of country. Since, UK was facing issues related with fluctuations within economic
development because of Brexit. It impacted on the behaviour of customers towards services and
products of Tesco Plc.
Cultural factor- Values, opinions, beliefs and attitude of a person is shaped with culture.
It turns attitude of people towards buying particular services or products, the culture of person
gratifies many emotional requirements and try to protect the beliefs as well as values. In addition
to this, culture protection is to be reflected in consumer behaviour.
Technological factor- Smart internet searches, artificial intelligence and some of other
high technology has been forefront business from many years. Rapid change in technology
enhance cost of company. On the other hand, due to the technologies, companies have been
changed the way of conduct business operations in short period of time.
Potential influence of post Brexit on Tesco PLC and its impact on consumer behaviour
On the basis of Gyamfi, Krumdieck and Urmee, (2013), it has been stated that Brexit is
withdrawal of UK from EU. Result of vote defied the expectations as well as roiled global
markets, causing British Pound to fall lower level against dollar. In this, Brexit will impact
directly on the consumer behaviour of Tesco company. It impacts on the attitudes, purchasing
capability and behaviour of consumers. In addition to this, consumers might feel that after Brexit
they will not get all of the desired product in UK as the country is going to be parted from EU. In
medium term, Tesco has been forced to make the inevitable changes in its supply chain after
United Kingdom leaved European Union. 50% of cheese and butter has been consumed in
United Kingdom and milk imported from European Union that was shifted sourcing efforts of
Tesco to the local manufactures. Increased inflation will incentivize retailers of UK to source
consolidate and locally when possible.
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Tesco company deals in retail sector and it provides the home products, food items,
internet services in United Kingdom. This occupancy has engaged in large number of activities
that initiate offset that Brexit induced problems to sustain market share.
After Brexit, products and services of Tesco is quite expensive that are not affordable by
the economic customers. It develops negative impact on their behaviour as well as reputation of
company. In this manner, sales of Tesco has been reduced and the customers was get unsatisfied
from Tesco services and products.
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RESEARCH METHODOLOGY
It is crucial and foremost section of research investigation as it provides support to
investigator in providing proper direction to draw a valid and reliable conclusion at the end of the
research. In this regards, research methodology is considered as an important procedure used by
researcher to gather relevant data and information towards the specified research topic and area.
Mainly, process of research methodology provides a right direction to the investigator for
executing entire work activities of research (Harstad and Selten, 2013). By using this section,
investigator can evaluate effective way to gather information, analyse and interpretation. Along
with this, it also helps investigator to select appropriate and suitable methods to carry out
research for making a reliable and authentic results that support in developing a successful
research project. For attaining the same, researcher needs to select best and proper techniques in
order to direct the research in valuable manner. In this regards, scope of this section is wide as it
includes various methods and techniques that help researcher to gather accurate information
about research aim and objectives as well. Thus, it is important for researcher to apply or
implement best method so that they can easily gather reliable information support in attaining
positive results. This section includes the right way to analyse as well as evaluate methods which
undertake the research activities in appropriate manner. With the help of this, researcher create
the comprehension of various strategies in research methodology. Furthermore, it also include
some ways and rules that help in completing the investigation in an systematic manner through
which valid results can be easily achieved and measured as well. One of the main feature of this
section is that it is based on the various applications that help investigator in providing the clear
vision with the aim of creating valid and potential outcomes within the research activities. All of
these methodologies can be understood by following descriptions:
Type of investigation
For undertaking research activities, investigator requires to evaluate the nature of
research activities in order to select appropriate method. By this, they improve the chances of
gathering relevant and valid data towards the selected research topic and area as well (Hayakawa
and Venieris, 2016). Qualitative and quantitative are two different kinds of reserch methods. In
this regards, qualitative research is related with the exploratory research which help in
understanding the reasons, opinion and motivation of individual about the research activities and
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area. On the other side, quantitative research methods is carried out on the basis of objectives
which help in determine the problem by numeric data and information that can be converted into
statistical way (Huang, Allon and Bassamboo, 2013). With the use of this method, research
quantifies the behaviour, opinions, attitude and many more to find out the better information
within the research. For undertaking this research, investigator will use quantitative research
which help in gathering information in structured manner. With the assistance of this, accurate
and reliable results can be easily gathered.
Research approach
This section is related with appropriate plan and procedures that used by investigator to
collect, analyse and interpret information. It is categorised on the basis of two parts like
inductive and deductive research approach. In this context, inductive research approach is start
with observations and at the same time end with hypothesis. Mainly, it is based on the existing
facts and figures which helps in creating the appropriate pattern to carry out the study (Huang
and Kuo, 2012). Furthermore, deductive research is an effective approach that helps in
developing hypothesis which is related with the existing theory which may aid in designing a
research strategy to test the reliability and accuracy of selected hypothesis. In this research,
inductive research is one of the effective and useful approach through which investigator can
easily attain useful and reliable outcomes at the end of the research. By using this, existing
pattern can be easily measured so that researcher can make positive results.
Research philosophy
Under the dissertation, research philosophy is related to the belief which is followed by
the investigator to carry out the research activities in systematic manner. This is the main reason
that, researcher is responsible for selecting effective and appropriate philosophy so that research
can be systematic undertaken. This is categorised on the basis of two philosophies such as
interpretivism and positivism philosophy. Both are appropriate to undertake the research
activities as it support in gathering in-depth information towards the selected research topic and
area as well. In this regards, interpretivism philosophy is related with the qualitative means
which aid in calculating as well as analysing collected data and information (Kaufmann and et.
al., 2012). On the other side, positivism philosophy is based on the scientific and mathematical
models in which collected data can be analysed and measured. Present research is based on the
qualitative method which is based in the perception of respondents about the research topic. With
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the assistance of this, they can easily take right and valuable decision at the end of the research
activities. For this, researcher will use interpretivism philosophy that will help in gather data
which measurable in nature and attain accurate results towards the selected topic.
Research design
It is also an effective part of research methodology that is based on set of methods and
procedures that are used in study with the aim of collecting as well as analysing data to present
the issues within the research project (Kehr and et. al., 2015). This is classified on the basis of
descriptive, exploratory and meta-analytic. All of these aids in successful undertaking of
research. The descriptive design focus on determining detailed information about the research
topic. Whereas, exploratory research design explores new model and concept on the basis of
research topic for gather valid information. Along with this, experimental design is based on the
scientific analysis to develop as well as explained theory. Under this research, investigator will
use exploratory research design which will help investigator to effectively understand the
problem related with the research activities. It directly contributes in attaining reliable results at
the end of the study.
Data collection
Data collection is also considered as one of the important section through which
researcher gather data and information to drawing a valid and authentic conclusion. It is based on
the two types such as primary and secondary methods. In this, primary method is used by
investigator when they gather new and fresh information about research topic. As it includes
various sources such as questionnaire, survey, interview and many more. By this instigator
collect authentic information. On the other side, secondary method is related with second hand
information which is already in published different sources such as books, journals, articles, case
study and many more. All these sources are helpful in gathering in-depth information to
improving chances of attaining valid and reliable results (Keith and et. al., 2013). For this
research, investigator will use both methods for gathering data to take valid decision. Primary
method help researcher to prepare questionnaire which includes close-ended questions whereas
secondary method help in conducting literature review about the research aims and objectives to
understand views and opinion of different authors.
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Data analysis
In research, it is crucial for investigator to effectively analyse as well as evaluate
collected data and information in order to make entire work more effective and systematic. In
this, both qualitative and quantitative method of data analysis is used to draw an accurate and
reliable conclusion (Kull, Oke and Dooley, 2014). This research has been based on the
qualitative nature in which analysis of data done by the use of thematic analysis. With the help of
this method, investigator will easily analyse their information and attain a positive results.
Data sampling
Sampling method refers to group, items and objectives which are selected through a large
number of population. By this, investigator will gather relevant data and information towards the
selected topic and area as well. In addition to this, data sampling is related with statistical
analysis tool through which investigator select, evaluate and manipulate subset of information
that may aid in determining the pattern in larger data which is being examined. In addition to
this, sampling tool is related with selecting the sample which replicates from the original
population (Lopes, Antunes and Martins, 2012). It is based on the two methods like probabilistic
and non-probabilistic sampling. In this research, investigator will use probabilistic method to
select 60 sample size by random sampling method. The chosen respondents are the customers of
the company. By this, investigator can easily gather relevant data and information about the
research topic and area as well.
Validity and Reliability
It is consider as an important part of research in which investigator needs to implement
the research activities in proper way so that positive and reliable outcomes can be easily
achieved. By using this, researcher may evaluate the solid and substantial results that support in
developing a successful study (Köksalan, Wallenius and Zionts, 2013). Validity and reliability
are important aspects that support investigator to take right decision by minimizing the issues or
conflicts within the research. By implementing both aspects, research easily attain positive and
accurate information support in making research more successful.
Ethical consideration
Research ethics is an important aspect that includes norms, values, principles etc. It is
necessary for researcher to follow all the ethical considerations while executing research
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activities in an appropriate manner. In this regards, investigator is responsible for ensuring about
interest of individual or society as well (Lehner, Mont and Heiskanen, 2016). Thus, the main
responsibility of researcher is to keep information confidential, so that reliable and valid results
can be easily attained. These type of ethical norms and policies are helpful in undertaking
research in a systematic manner.
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DATA ANALYSIS
It is one of the most important part of research that analyse collected data by using the
different techniques and tools. The data is collecting through using the primary method and
analysing with the help of graphs and interpretation (Lodge and Wegrich, 2016). In addition to
this, information about specific area is collected through questionnaire and interviews. In
questionnaire, different questions has been developed related to specific subject. On the other
hand, interview questionnaire has been asked from the consumers.
QUESTIONNAIRE
Name:
Age:
Gender:
Contact no.:
Address:
Q1) Do you have knowledge about the bonded rationality concept?
a) Yes
b) No
Q2) What are the benefits of rationale decision making to consumers?
a) Informed decision making
b) Minimizing chance of errors
c) Distortions
d) Assumptions
Q3) In what manner, rationale decision making impact on your purchasing?
a) Positive manner
b) Negative manner
Q4) Does rationale decision making helps company to attract large number of consumers?
a) Agree
b) Disagree
c) Neutral
Q5) In your opinion, does bonded rationality develops positive impact on the consumer
behaviour?
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a) Yes
b) No
Q6) As per your opinion, what issues customers face related to the bonded rationality?
a) Limited Resources
b) Less time
c) Issue in decision making
Q7) According to your viewpoint, does analyse consumer behaviour beneficial for better
satisfaction?
a) Yes
b) No
Q8) According to your point of view, does rationale decision making influence on
consumer behaviour?
a) Yes
b) No
Q9) What is significance of rational decision making for a FMCG company?
a) Attract more consumers
b) Enhancing sales
c) Build positive reputation
Q10) What is the impact of Brexit on businesses of FMCG organisations?
a) Labor Issues
b) Declining Ad Spend
c) Demand expectations
Q11) What are the different factors which influence consumer behaviour?
a) Economic factors
b) Personal factors
c) Social factors
d) Cultural factors
Q12) What is potential influence of post Brexit on Tesco PLC?
a) Enhance customer purchasing power
b) Increase creativity
c) Maximise sales
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d) Strong customer base
Q13) According to your opinion, which component of product Tesco need to be improve to
satisfy your needs?
a) Quality
b) Cost
c) Product design
Q14) Recommend some ways through which Tesco can improve their customer’s
behaviour.
Interview Questions
Q1) State the advantages which customers get from rational decision making?
Q2) State the different factors which influence consumer purchasing?
Q3) In your opinion, does bonded rationality enhance sales of businesses?
Q4) As per your opinion, in what manner the rationale decision making impact on Tesco
productivity?
Q5) As per your point of view, does Brexit provide positive influence to FMCG
organisation?
DATA SHEET
Q1) Do you have knowledge about the bonded rationality concept? Frequency
a) Yes 48
b) No 12
Q2) What are the benefits of rationale decision making to consumers? Frequency
a) Informed decision making 12
b) Minimizing chance of errors 18
c) Distortions 13
d) Assumptions 17
Q3) In what manner, rationale decision making impact on your
purchasing?
Frequency
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a) Positive manner 50
b) Negative manner 10
Q4) Does rationale decision making helps company to attract large
number of consumers?
Frequency
a) Agree 32
b) Disagree 18
c) Neutral 10
Q5) In your opinion, does bonded rationality develops positive impact on
the consumer behaviour?
Frequency
a) Yes 40
b) No 20
Q6) As per your opinion, what issues customers face related to the bonded
rationality?
Frequency
a) Limited Resources 16
b) Less time 24
c) Issue in decision making 20
Q7) According to your viewpoint, does analyse consumer behaviour
beneficial for better satisfaction?
Frequency
a) Yes 35
b) No 25
Q8) According to your point of view, does rationale decision making
influence on consumer behaviour?
Frequency
a) Yes 32
b) No 28
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Q9) What is significance of rational decision making for a FMCG
company?
Frequency
a) Attract more consumers 30
b) Enhancing sales 12
c) Build positive reputation 18
Q10) What is the impact of Brexit on businesses of FMCG organisations? Frequency
a) Labor Issues 20
b) Declining Ad Spend 12
c) Demand expectations 28
Q11) What are the different factors which influence consumer behaviour? Frequency
a) Economic factors 25
b) Personal factors 10
c) Social factors 16
d) Cultural factors 9
Q12) What is potential influence of post Brexit on Tesco PLC? Frequency
a) Enhance customer purchasing power 12
b) Increase creativity 18
c) Maximise sales 15
d) Strong customer base 15
Q13) According to your opinion, which component of product Tesco nee to
be improve in satisfy your needs?
Frequency
a) Quality 32
b) Cost 15
c) Product design 13
19

THEME 1: Knowledge about the bonded rationality concept
Q1) Do you have knowledge about the bonded rationality concept? Frequency
a) Yes 48
b) No 12
Anova: Single Factor
SUMMARY
Groups Count
Su
m
Averag
e
Varianc
e
Q1) Do you have knowledge about the bonded rationality
concept? 2 3 1.5 0.5
Frequency 2 60 30 648
ANOVA
Source of Variation SS df MS F
Between Groups 812.25 1 812.25 2.505012
Within Groups 648.5 2 324.25
Total 1460.75 3
20

Interpretation: Bounded rationality is an idea in decision making and the rationality of
people is limited through information that they have. It portraits the limitations of the rational
thinking in decision making process as it explains boundaries that experienced through people.
48 respondents said that they are aware about the knowledge of bonded rationality. It is helpful
in developing the positive impact on decision making. There are 12 other respondents and
according to them they do not have knowledge regarding bonded rationality.
THEME 2: Benefits of rationale decision making to consumers
Q2) What are the benefits of rationale decision making to consumers? Frequency
a) Informed decision making 12
b) Minimizing chance of errors 18
c) Distortions 13
21
a) Yes b) No
0
5
10
15
20
25
30
35
40
45
50
48
12
Column B

Q2) What are the benefits of rationale decision making to consumers? Frequency
d) Assumptions 17
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q2) What are
the benefits of
rationale
decision
making to
consumers? 4 10 2.5 1.666667
Frequency 4 60 15 8.666667
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 312.5 1 312.5 60.48387 0.000238 5.987378
Within
Groups 31 6 5.166667
Total 343.5 7
Interpretation: Rationale decision making is multi- step procedure for making the
choices among alternatives. It is an effective method for choosing between possible choices that
based on facts and reasons. 12 respondents said that benefit of rationale decision on consumer is
that they are informed about decision making. Through this, they can make the decision to
purchase. 18 respondents said that rationale decision making helps in reduce the chance of errors
22
a) Informed decision making
b) Minimizing chance of errors
c) Distortions
d) Assumptions
0
2
4
6
8
10
12
14
16
18
12
18
13
17
Column B

because people make the final purchasing decision by select better products among various
alterations. 13 respondents said that distortion is one of the main advantage. There are 17
respondents which agree with the assumptions option.
THEME 3: Rationale decision making impact on your purchasing
Q3) In what manner, rationale decision making impact on your
purchasing?
Frequency
a) Positive manner 50
b) Negative manner 10
23

Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q3) In what
manner,
rationale
decision
making impact
on your
purchasing? 2 3 1.5 0.5
Frequency 2 60 30 800
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 812.25 1 812.25 2.029357 0.290322 18.51282
Within
Groups 800.5 2 400.25
Total 1612.75 3
Interpretation: Rationale decision making is method for choosing systematically
between the possible choices that depends on facts and reason. In this, manager will employ
series of the analytical steps in order to review the relevant facts, possible outcomes and
24
a) Positive manner b) Negative manner
0
5
10
15
20
25
30
35
40
45
50
50
10
Column B

observations. It develops the negative as well as positive impact on the purchasing of consumers.
In addition to this, there are 50 respondents out of 60 and according to them rationale decision
making develops positive impact on the purchasing of consumers. It helps in providing various
options to select better one to consumers. On the other hand, there are 10 remaining respondents
which said that it develops the negative impact on the consumer buying.
THEME 4: Rationale decision making helps company to attract large number of
consumers?
Q4) Does rationale decision making helps company in attract large
number of consumers?
Frequency
a) Agree 32
b) Disagree 18
c) Neutral 10
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
25
a) Agree b) Disagree c) Neutral
0
5
10
15
20
25
30
35 32
18
10
Column B

Q4) Does
rationale
decision
making helps
company in
attract large
number of
consumers? 3 6 2 1
Frequency 3 60 20 124
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 486 1 486 7.776 0.049385 7.708647
Within
Groups 250 4 62.5
Total 736 5
Interpretation: Rationale decision making is one of the effective way to attract more
number of consumers. As per opinion of 32 respondents that rationale decision making helps in
attract large number of customers towards company. On the other hand, 18 respondents are not
agree with given statement. There are 10 respondents which do not have any opinion about this
given statement.
THEME 5: Bonded rationality develops positive impact on the consumer behaviour
Q5) In your opinion, does bonded rationality develops positive impact on
the consumer behaviour?
Frequency
a) Yes 40
b) No 20
26

Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q5) In your
opinion, does
bonded
rationality
develops
positive
impact on the
consumer
behaviour? 2 3 1.5 0.5
Frequency 2 60 30 200
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 812.25 1 812.25 8.102244 0.104442 18.51282
Within
Groups 200.5 2 100.25
Total 1012.75 3
27

Interpretation: Bonded rationality helps the consumers in decision making about
purchasing of products, price etc. It is an idea that rationality is limited when the people make
decisions through tractability of decision related issues cognitive limitations of mind and
availability of time to make effective decisions. As per opinion of 40 respondents that bonded
rationality is helpful in developing the positive affect on behaviour of consumers through
providing them various options to select from the alternatives. On the other hand, there are 20
respondents which said that the bonded rationality develops negative impact because consumers
have the limited time to make the buying decision.
THEME 6: Issues customers face related to the bonded rationality
Q6) As per your opinion, what issues customers face related to the bonded
rationality?
Frequency
a) Limited Resources 16
b) Less time 24
c) Issue in decision making 20
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q6) As per
your opinion,
what issues
customers
face related to
the bonded
rationality? 3 6 2 1
28

Frequency 3 60 20 16
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 486 1 486 57.17647 0.001639 7.708647
Within
Groups 34 4 8.5
Total 520 5
Interpretation: In Bounded Rationality, consumers face the various issues concerned
with the bounded rationality. There are some disadvantages of the bounded rationality.16
respondents said that the limited resources available on bonded rationality is main disadvantage.
The limited resources impact on the decision making of consumers. There are 15 respondents
which said that consumers have the less time period to make the decisions related to purchase of
specific products which can satisfy their needs and demands. As per opinion of 10 respondents
that consumers faced the problem related to the decision making, they have large number of
products but they face complexity to select one that satisfy their needs.
THEME 7: Analysing consumer behaviour beneficial for better satisfaction
Q7) According to your viewpoint, does analyse consumer behaviour
beneficial for better satisfaction?
Frequency
a) Yes 35
b) No 25
Anova:
Single
Factor
29

SUMMARY
Groups Count Sum Average Variance
Q7)
According
to your
viewpoint,
does
analyse
consumer
behaviour
beneficial
for better
satisfaction? 2 3 1.5 0.5
Frequency 2 60 30 50
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 812.25 1 812.25 32.16832 0.029708 18.51282
Within
Groups 50.5 2 25.25
Total 862.75 3
Interpretation: Consumer behaviour is explained as a study of the groups, people and
companies which are related with buy, use and also disposal of services and products. It is
necessary for the Tesco to provide high quality of services to consumers with the help of
determining their needs and wants. As per opinion of 25 respondents that through analysing the
consumer behaviour, organisation can able to provide high quality of unique product that can
fulfil customer’s needs and demands in better manner. There are 30 respondents said that
company can provide the better products at reasonable cost to consumers to satisfy their needs.
THEME 8: Rationale decision making influence on consumer behaviour
Q8) According to your point of view, does rationale decision making
influence on consumer behaviour?
Frequency
a) Yes 32
b) No 28
30

Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q8) According
to your point
of view, does
rationale
decision
making
influence on
consumer
behaviour? 2 3 1.5 0.5
Frequency 2 60 30 8
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 812.25 1 812.25 191.1176 0.005192 18.51282
Within
Groups 8.5 2 4.25
Total 820.75 3
Interpretation: Rational behaviour is explained as the process of decision making that is
mainly based on making the choices which result in providing advantages to person. Under this,
31
a) Yes b) No
26
27
28
29
30
31
32
32
28
Column B

assumption of the rationale behaviour implies that the people will get benefit or worse off. On
the basis of opinion of 32 respondents, rationale decision making impacts on the behaviour of
consumers in a better manner. It is helpful in providing the choices to consumers about different
products. On the other hand, there are 28 respondents which said that the rationale decision
making develop negative impact on the consumer behaviour because it is more time taking.
THEME 9: Significance of rational decision making for a FMCG company
Q9) What is significance of rational decision making for a FMCG
company?
Frequency
a) Attract more consumers 30
b) Enhancing sales 12
c) Build positive reputation 18
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q9) What is
significance of
rational
decision
making for a
FMCG
company? 3 6 2 1
Frequency 3 60 20 84
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 486 1 486 11.43529 0.027744 7.708647
Within
Groups 170 4 42.5
Total 656 5
32

Interpretation: Rationale decision making is helpful in providing the choice to
consumers so that they can select the better product or service which can satisfy their demands
and needs in an effective way. As per opinion of 30 respondents, rational decision making aids
for FMCG products to attract the large number of consumers. Through this, sales of company
will be enhanced. On the other hand, 12 respondents said that rational decision making is helpful
in increasing sales of company. On the basis of 18 respondents that the rationale decision making
is helpful in developing the positive reputation of company by providing them high quality of
products on the basis of their requirements.
THEME 10: Impact of Brexit on business of FMCG organisations
Q10) What is the impact of Brexit on businesses of FMCG organisations? Frequency
a) Labor Issues 20
b) Declining Ad Spend 12
c) Demand expectations 28
33
a) Attract more consumers
b) Enhancing sales
c) Build positive reputation
0
5
10
15
20
25
30
30
12
18
Column B

Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q10) What is the
impact of Brexit
on businesses of
FMCG
organisations? 3 6 2 1
Frequency 3 60 20 64
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 486 1 486 14.95385 0.018039 7.708647
Within
Groups 130 4 32.5
Total 616 5
34
a) Labor Issues
b) Declining Ad Spend
c) Demand expectations
0
5
10
15
20
25
30
20
12
28
Column B

Interpretation: Brexit arise when the European union separated from the United
Kingdom. It develops the negative impact on FMCG companies. On the basis of 20 respondents
that labour issue is one of the main problem that companies face. In addition to this, digital and
creative marketers are watching all the developments. As per opinion of 12 respondents, the
main impact of Brexit on business of FMCG organisations is to Declining Ad Spend. In the food
industry, slashing ad spend only because of Brexit and also maximising inflation in region. 28
respondents said that through Brexit, company face the issues related with fulfilling expectations
of consumers. It develops the negative impact on sales as well as reputation of firm in significant
manner.
THEME 11: Different factors which influence on the consumer behaviour
Q11) What are the different factors which influence consumer behaviour? Frequency
a) Economic factors 25
b) Personal factors 10
c) Social factors 16
d) Cultural factors 9
35

Interpretation: From the above mention graph, it has been interpreted that there are
different factors which impact on behaviour of consumers. There are 25 respondents which said
that economic is one of the main factor that impact on consumer behaviour. It is foundation of
the buying decision. Requirement of product does not play a necessary role but affordability is
necessary thing. There are 10 respondents and according to them personal factors impact on
purchasing decisions such as age, lifestyle, occupation. Economic and social status of consumers.
16 respondents are agreed with the social factor because people in society can influence the
mindset of other persons. 9 respondents are agreed with the cultural factor.
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q11) What
are the
different
factors which
influence
consumer
behaviour? 4 10 2.5 1.666667
Frequency 4 60 15 54
ANOVA
Source of SS df MS F P-value F crit
36
a) Economic factors
b) Personal factors
c) Social factors
d) Cultural factors
0
5
10
15
20
25
25
10
16
9 Column B

Variation
Between
Groups 312.5 1 312.5 11.22754 0.015405 5.987378
Within
Groups 167 6 27.83333
Total 479.5 7
THEME 12: Potential influence of post Brexit on Tesco PLC
Q12) What is potential influence of post Brexit on Tesco PLC? Frequency
a) Enhance customer purchasing power 12
b) Increase creativity 18
c) Maximise sales 15
d) Strong customer base 15
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q12) What is
potential
influence of
post Brexit on
Tesco PLC? 4 10 2.5 1.666667
Frequency 4 60 15 6
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 312.5 1 312.5 81.52174 0.000103 5.987378
Within
Groups 23 6 3.833333
Total 335.5 7
37

Interpretation: In UK, Brexit has been positively impact on the business organisation as
it improved the performance level of the company by providing them opportunities to
establishing their positive image at market place. According to 12 out of 60 respondents give
their views about enhance customers purchasing power that may improve competitive
performance of the company at market place. Along with this, 18 participants think that Brexit
also may increase the creativity in market that help business organization to develop its
competitive image at market. Apart from this, 15 respondents said that it supports in maximizing
the overall sales at market. On the other side, 15 out of 60 people give their views that Brexit
also contribute in making strong customers base which may positively impact on the overall
performance of the company.
THEME 13: Component of product Tesco should improve in satisfy your needs
Q13) According to your opinion, which component of product Tesco
should improve in satisfy your needs?
Frequency
a) Quality 32
b) Cost 15
c) Product design 13
38
a) Enhance customer purchasing power
b) Increase creativity
c) Maximise sales
d) Strong customer base
0
2
4
6
8
10
12
14
16
18
12
18
15 15
Column B

Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Q13)
According to
your opinion,
which
component of
product Tesco
should
improve in
satisfy your
needs? 3 6 2 1
Frequency 3 60 20 109
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 486 1 486 8.836364 0.041038 7.708647
39
a) Quality b) Cost c) Product design
0
5
10
15
20
25
30
35 32
15
13 Column B

Within
Groups 220 4 55
Total 706 5
Interpretation: As per above mentioned graph it has been concluded that Tecso provide
quality products and services to its customers as per their needs and wants. There are 32
respondents and according to them quality is one of the main factor that need to improve through
Tesco organisation. On the other hand, 15 respondents said that firm should develop effective
pricing strategies which helps in providing cost advantage. Along with this,13 respondents are
agree with this theme as they think that products design should be attractive so that large number
of customers can be attracted towards it. Through this, sales of firm will be enhanced effectively.
Interview Questions
Q1) State the advantages which customers get from rational decision making?
Answer: According to me, rational decision making is more effective as it includes multiple step
process for determining better choice between different alternative options. It is based on logic,
objectivity and analysis over subjectivity and insight as well. Mainly, it includes characteristics,
limitation and benefits as well. It is also beneficial for customers to take decision towards the
company and its services as well. Rational decision making includes reasonable judgement by
which customers easily take right and accurate decision. It makes it possible to support the
customers by including the specific as well as open decision. The main benefit of rational
decision making is determining complex decision as it effectively characterizing the decision
issues and goals in order to ensure to determine all the needs and desire. It also define that it
being support by structured techniques that may contribute improving customers behaviour.
Furthermore, it is ongoing improvement that may develop process, program and procedures that
help consumers to make their better decision towards the company and its services as well. This
will contribute in making strong customers base within the organization. Minimizing chance of
errors is also a major benefit associated with rational decision making through which individual
can sure about their decisions that may aid in acquiring valuable decision.
Q2) State the different factors which influence consumer purchasing?
Answer: As per my point of view, various factors are there that influence customers and
decision making as well. As there are various factors such as psychological, social, cultural,
personal and economic. All these are the important factors that may directly influence customer’s
40

behaviour and at the same time also change their mind set as well. Thus, it is crucial for company
to measure entire factors before providing them services. With the assistance of this, organisation
can easily improve their performance and also capture larger market share by satisfying their
needs and wants. When company analyse all these factors that they keep customers loyal towards
the company and its services. It may contribute in improving profitability level of company at
market place.
Q3) In your opinion, does bonded rationality enhance sales of businesses?
Answer: Yes, bonded rationality enhance the overall sale of the company because it is related
with ideas that includes limited rationality when customers make any kind of decision. But at the
same time it also reduces the sales of the company. Mainly, it tones down lot of assumption that
is related with unique taste and preferences of the customers that change with the time passes.
Consumers mind has only limited capacity to evaluate the information that is available. But at
the same time, it may negatively impact on the company because some time customers are fail in
taking right decision towards the company products and change their perception to consume
company services. This will negatively impact on the overall performance of the company at
market place and also reduce its profitability as well. Thus, it is crucial for customers to make
their decision positive and unbounded so that they can easily purchase company products and
increase its overall sales as well.
Q4) As per your opinion, in what manner the rationale decision making impact on Tesco
productivity?
Answer: Rational decision making play a crucial role in business organisation as it put positive
impact on Tesco productivity. The main reason behind this is that it includes structured and
reasonable thought process to make a valid decision. One of the main advantage of this is
information that is gather for analysing the decision making process through which company
provide alternative ways to customers so that they can easily make their best decision and also
improve company performance as well. Mainly, it is related with structured process that promote
the broad and deep analysis towards the decision that may aid in providing the best solution. It
put positive impact on Tesco productivity as it makes customer base strong and valuable that
accomplish the positive image at market place and also influence customers to consume its
products by making positive decision. In context of Tesco, it also provides support to customers
to deal with the major issues in a complex environment. As it is a well defined or step by step
41

approach that help in determining issues and also identifying the decision criteria, alternatives
and many more that may assist customers to take a final decision. By this company may easily
improve the chances of attaining better success at market place.
Q5) As per your point of view, does Brexit provide positive influence to FMCG
organisation?
Answer: According to me, after Brexit UK get various opportunities and positive impact in
context of business. Along with this, it also provide different way and opportunities in which
company can easily operate their business and improve their performance as well. In this regards,
Brexit is expected to have significant impact on the FMCG organisation. In UK supply chains
includes food and drinks manufacturers, consumer good companies which grow day by day. As
it help in improving overall performance of business organisation by increasing its sales and
profitability level as well.
42

DISCUSSION
It is one of most necessary part of research. This is based on literature review part by
gathering information and data from secondary sources.
Concept of bounded rationality in context of consumer behaviour
On the basis of above discussion that Rationale behaviour is decision making process that
is based on making effective choices that result in optimal level of utility or advantages for a
person. It is related with comparing benefits and costs of different options to identify which are
rational or not. Assumptions of the rational behaviour implies that the people would rather be
worse off and better off. It provides the choice to customers from alternatives and reduce the
chances of errors. It is helpful in providing the better opportunities to consumers by providing
them alternatives so that they can make better choices and also satisfy their needs and demands
in significant way. It is an act of selecting among two or more than two action courses. The
main benefit is growing capability is to measure and access information that can make
improvement in guidance. On the other hand, rational decision making is time consuming and it
cannot be taken without knowing all information and facts.
Significance of rational decision making for a FMCG company
Rational decision making is consider as a effective process that help customers in making
choice among various alternative options. By using this method, consumers can easily make a
final decision towards the company products and services. Mainly, it decide the rationally that
aid in taking appropriate decision by evaluating the knowledge and choice towards the specified
products offered by the company. As customers has knowledge towards the alternatives like
proper time, resources and cognitive capacity to examine the better choice towards others. It may
aid in maximizing the benefits and at the same time also reduce the cost of the products. It is also
beneficial for the company to increase its sales and profitability level at market place.
Importance of analysing consumer behaviour for Tesco PLC
As per the given discussion, it is necessary for an organisation to analyse the behaviour of
consumers and provide them products as well as services accordingly. The main property of
Tesco is to identify customers demands and give them satisfactory services. It captures all aspect
of purchase, utility and also disposal of services and products. It is influenced through own
personality traits of a person. So, Tesco make changes in its existing services as well as products
43

so that large number of customers can be attracted towards it in significant manner. Through this,
sales of firm will be enhanced and it can get the competitive advantages at market place.
Influence of external environmental factors on consumer behaviour
External factors are those which impact on operations and decision making process of an
organisation. It is complex for organisation to manage and control all these factors to reduce
impact from the business functions as well as operations. Political, economic, technological and
cultural are the main factors which has been considered as the external factors. All these factors
are directly influence consumer behaviour in both negative and the positive manner. It is
necessary for manager to determine the related issues and work to overcome from them.
Potential influence of post Brexit on Tesco PLC and its impact on consumer behaviour
Customers behaviour is one of the important factor for business organisation to improve
its performance level. Thus, it is important for organization to effectively analysis the customer’s
behaviour and taste before providing them quality services. This may aid in establishing
competitive brand image by improving its strong customers base. After Brexit, products of
company is expensive which is not affordable by the customers. This will negatively impact on
their buying behaviour in a market place. It directly impact on the overall sales and profitability
level of the company in negative manner. Thus, it is crucial for company to analysis customer’s
behaviour before offering them quality services. This may aid in improving the performance
level of the company at market place.
44

CONCLUSION AND RECOMMENDATION
Conclusion
From the above conducted research, it has been concluded that rational decision making
and bounded rationality is important for evaluating customers behaviour. As it helps consumers
to make final decision from alternatives. This will improve the chances of attaining benefits and
at the same time also may aid in minimizing the overall cost. In context of FMCG sector,
company provide variety of products to satisfy customer’s needs and wants. In this, consumers
has wider option to buy products so that it is important for them to take right decision by
analysing all the alternative ways and aspects. With the assistance of this, they can easily satisfy
their needs and wants. In addition of this, it is also concluded that by analysing customers buying
behaviour company may improve their performance by building strong customer base. This is
possible by retaining customers and make them loyal towards company’s offerings. Along with
this, rationale decision making is also beneficial for customers in informed decision making,
reducing the chances of arising errors, distortions and assumption as well. With the help of all
these aspects, customers easily improve their decision towards the company and its services as
well. On the other side,, some drawbacks of bounded rationality is also faced by organisation
such as limited resources, time, limited capacity and expertise problems that may negatively
impact on the customers behaviour within the company. By analysing this, organisation can
improve their working activities and also develop their positive brand image at market place. The
political landscape of the country has changed dramatically in the wake of the Brexit
referendum. According to the above research, it find in an unpredictable and volatile
environment. This shows that the British people evaluate a no-deal scenario even more firmly,
and that public view, even among Leave citizen, is shifting to a ‘softer’ Brexit. Tesco has
engaged in a certain number of near-term initiatives to get-go its Brexit induced problems in an
effort to retain large number of market share, as the large grocery store chains risk losing out to
discount retailers such as Aldi and Lidl. Along with this, Consumer purchasing habits or
behaviour will unavoidably modify due to the reduced buying power of the GBP. In this
company reacts to this trend will be a telling fact of their long-term resiliency as well as ability to
moved in the midst of the strong headwinds imposed by Brexit. Along with this, Brexit has more
impact on an organisation and consumer buying behaviour in a direct manner.
45

Recommendations
As per discussion of above mentioned research, it has been recommended that it is
important for business organisation and its customers to make better decision from certain
alternatives. This will improve the productivity level of the company and at the same time also
build the strong customers base. In this regards, company needs to determine the importance of
analysing customer’s behaviour like it enhance revenue, product portfolio and brand equity
which make the brand image of the company more competitive and famous as well. For attaining
the same, firm needs be improve product quality, cost and product design so that customers get
attracted towards its services and at the same time also influence them to buy the same. This will
improve the customer base and profitability level as well. As Tesco operate their operational
activities in FMCG sector so they need to provide quality and variety product option of its large
number of customers. By this, customers make the best decision while buying the same from the
firm. This may help business organisation to established brand image by which firm can easily
invite more and more customers over there. Furthermore, Tesco should determine the impact of
bounded rationality on consumer’s behaviour by collecting information about the customers,
influence them and also provide them alternatives. By this company easily provide them
accordingly and improve their decision towards its offerings. It may aid in maximizing the
benefits within the company by reducing the cost. In order to overcome impact of Brexit, there
are some recommendation to the Tesco which are determine as under:
 TESCO must keep calm and hold steady, remember the UK labour market is strong,
protect the UK employer brand, overcome the great divide etc. All these are consider
more effective and essential ways for overcoming impact on Brexit.
 To estimate the effect of Brexit an investigator analyzed the variation in investment as
well as employment for organisations more and less exposed to Brexit through both
uncertainty and expected sales impacts. Company must provide job opportunities to the
citizen which will helps them in its success and growth.
46

REFLECTION AND ALTERNATIVE METHODOLOGY
Reflection
Current research is based on evaluating the impact of rational decision making and
bounded rationality on customer’s behaviours in context of FMCG sector. This topic helpful in
determining the specified issues by accumulating valid and reliable information. In this, as a
researcher I used various research methodology that helped me in gathering as well as collecting
data or information that contribute in take the valid decision. For data collection, I used both
primary and secondary methods which assisted me in undertaking research activities in
systematic manner. Along with this, I also faced issues related with the cost and time which may
negatively impact on the overall activities of the research activities. It help me in reducing the
chances of arising issues related with time and cost and at the same time also gather reliable and
authentic information towards the selected topic and area.
Alternative methodology
There are various alternative methods which play a significant role in carry out the
research activities in an appropriate manner. By using this, investigator can easily gather
accurate and more reliable information which directly contribute in drawing a valid conclusion.
Under this research, investigator has been used questionnaire and interview method of collecting
data towards the impact of rational decision making and bounded rationality on customer’s
behaviour in FMCG sector. On the other side, focused group is can be used as an alternative
method to gather authentic and reliable information. Mainly it is related with the qualitative
research wherein questions are asked about their attitude, belief and ideas that support in taking
positive results and valid conclusion. With the assistance of this, investigator can easily
undertake research activities in successful manner and at the same time also attain positive and
reliable outcomes.
47

REFERENCES
Books & Journals
Alós-Ferrer, C. and Strack, F., 2014. From dual processes to multiple selves: Implications for
economic behavior. Journal of Economic Psychology. 41. pp.1-11.
Baldwin, R., 2014. From regulation to behaviour change: Giving nudge the third degree. The
Modern Law Review. 77(6). pp.831-857.
Berndt, C., 2015. Behavioural economics, experimentalism and the marketization of
development. Economy and Society. 44(4). pp.567-591.
Brounen, D., Kok, N. and Quigley, J. M., 2013. Energy literacy, awareness, and conservation
behavior of residential households. Energy Economics. 38. pp.42-50.
Caplin, A. and Dean, M., 2015. Revealed preference, rational inattention, and costly information
acquisition. American Economic Review. 105(7). pp.2183-2203.
Coimbra Carvalho, H. and Afonso Mazzon, J., 2013. Homo economicus and social marketing:
questioning traditional models of behavior. Journal of Social Marketing. 3(2). pp.162-
175.
Cooper, J. C. and Kovacic, W. E., 2012. Behavioral economics: implications for regulatory
behavior. Journal of Regulatory Economics. 41(1). pp.41-58.
Gabaix, X., 2014. A sparsity-based model of bounded rationality. The Quarterly Journal of
Economics. 129(4). pp.1661-1710.
Garcia, M. J. R., 2013. Financial education and behavioral finance: new insights into the role of
information in financial decisions. Journal of Economic Surveys. 27(2). pp.297-315.
Goldfarb, A. and et. al., 2012. Behavioral models of managerial decision-making. Marketing
Letters. 23(2). pp.405-421.
Gyamfi, S., Krumdieck, S. and Urmee, T., 2013. Residential peak electricity demand response—
Highlights of some behavioural issues. Renewable and Sustainable Energy Reviews. 25.
pp.71-77.
Harstad, R. M. and Selten, R., 2013. Bounded-rationality models: tasks to become intellectually
competitive. Journal of Economic Literature. 51(2). pp.496-511.
Hayakawa, H. and Venieris, Y., 2016. Consumer interdependence via reference groups. In
Behavioral Interactions, Markets, and Economic Dynamics. pp. 81-99. Springer,
Tokyo.
Huang, T., Allon, G. and Bassamboo, A., 2013. Bounded rationality in service systems.
Manufacturing & Service Operations Management. 15(2). pp.263-279.
Huang, Y. F. and Kuo, F. Y., 2012. How impulsivity affects consumer decision-making in e-
commerce. Electronic Commerce Research and Applications. 11(6). pp.582-590.
Kaufmann, L. and et. al., 2012. Rationality in supplier selection decisions: The effect of the
buyer's national task environment. Journal of Purchasing and Supply Management.
18(2). pp.76-91.
Kehr, F. and et. al., 2015. Blissfully ignorant: the effects of general privacy concerns, general
institutional trust, and affect in the privacy calculus. information Systems Journal.
25(6). pp.607-635.
Keith, M. J. and et. al., 2013. Information disclosure on mobile devices: Re-examining privacy
calculus with actual user behavior. International journal of human-computer studies.
71(12). pp.1163-1173.
48

Köksalan, M., Wallenius, J. and Zionts, S., 2013. An early history of multiple criteria decision
making. Journal of Multi‐Criteria Decision Analysis. 20(1-2). pp.87-94.
Kull, T. J., Oke, A. and Dooley, K. J., 2014. Supplier selection behavior under uncertainty:
contextual and cognitive effects on risk perception and choice. Decision Sciences.
45(3). pp.467-505.
Lehner, M., Mont, O. and Heiskanen, E., 2016. Nudging–A promising tool for sustainable
consumption behaviour?. Journal of Cleaner Production. 134. pp.166-177.
Lodge, M. and Wegrich, K., 2016. The rationality paradox of nudge: Rational tools of
government in a world of bounded rationality. Law & policy. 38(3). pp.250-267.
Lopes, M. A. R., Antunes, C. H. and Martins, N., 2012. Energy behaviours as promoters of
energy efficiency: A 21st century review. Renewable and Sustainable Energy Reviews.
16(6). pp.4095-4104.
Masini, A. and Menichetti, E., 2012. The impact of behavioural factors in the renewable energy
investment decision making process: Conceptual framework and empirical findings.
Energy Policy. 40. pp.28-38.
Miravete, E. J. and Palacios-Huerta, I., 2014. Consumer inertia, choice dependence, and learning
from experience in a repeated decision problem. Review of Economics and Statistics.
96(3). pp.524-537.
Moritz, B. B., and et. al., 2013. Individual differences in the newsvendor problem: Behavior and
cognitive reflection. Journal of Operations Management. 31(1-2). pp.72-85.
Rabin, M., 2013. Incorporating limited rationality into economics. Journal of Economic
Literature. 51(2). pp.528-43.
Ren, H. and Huang, T., 2018. Modeling customer bounded rationality in operations management:
A review and research opportunities. Computers & Operations Research. 91. pp.48-58.
Riedl, D. F. and et. al., 2013. Reducing uncertainty in supplier selection decisions: Antecedents
and outcomes of procedural rationality. Journal of Operations Management. 31(1-2).
pp.24-36.
Robb, C. A., and et. al., 2015. Bounded rationality and use of alternative financial services.
Journal of Consumer Affairs. 49(2). pp.407-435.
Sexton, S., 2015. Automatic bill payment and salience effects: Evidence from electricity
consumption. Review of Economics and Statistics. 97(2). pp.229-241.
Song, A. V., Brown, P. and Glantz, S. A., 2014. When health policy and empirical evidence
collide: the case of cigarette package warning labels and economic consumer surplus.
American journal of public health. 104(2). pp.e42-e51.
Spiegler, R., 2015. On the equilibrium effects of nudging. The Journal of Legal Studies. 44(2).
pp.389-416.
Wilson, D. and Valacich, J. S., 2012. Unpacking the privacy paradox: Irrational decision-making
within the privacy calculus.
49

APPENDIX
Appendix 1: Cover Sheet for Research Proposal and Final Dissertation
Students MUST complete this cover sheet to accompany each piece of coursework
submitted.
Student Name:
Student Number:
Programme Title:
Dissertation Title:- To evaluate the impact of rational decision making and bounded rationality
over the consumer behaviour in terms of FMCG sector in light of Brexit. A case study on Tesco
PLC.
Word Count:11500
Academic Supervisor:
Dissertation route: Standard research / Organisation-based research (if
organisation-based: Project or Internship-orientated?)
Declaration By making this submission I confirm that the attached coursework is my own work
and that anything taken from or based upon the work of others – or previous work of mine – has
its source clearly and explicitly cited; I understand that failure to do so may constitute
Academic Misconduct.
I have read the ‘Coursework Code of Practice’, the ‘Marking Descriptors’ and the ‘Plagiarism
as Academic Misconduct’ section of the Dissertation and Programme Handbook as well as the
learning outcomes for the Dissertation and the programme, as available on Learn and set out in
the Dissertation and Programme Handbook. The copyright in this dissertation is owned by me,
the author. Any quotation from the dissertation or use of any of the information contained in it
must acknowledge this dissertation as the source. I hereby give Loughborough University the
right to use such copyright for any administrative, promotional, educational and/or teaching
purposes. Copies of this dissertation, either in full or in extracts, may be made only in
accordance with Loughborough University regulations. This page must form part of any such
50

copies made. Tick this box if you do not wish Loughborough University to use your dissertation
for administrative, promotional, educational and/or teaching purposes.
Signature:
Date:
Appendix 2: Dissertation Marking and Descriptors
Descriptor
s Criterion
Assessme
nt
Relevance
Distinctio
n 100 85%
Distinctio
n 75%
Merit 68
65 62%
Pass 58 55
52%
Fail 48 45
42%
Clear Fail
35 25 15%
Coherence
Is the
work
logically
structured
with a
coherent
argument?
Research
proposal;
(Weightin
g:
30%)
Dissertatio
n.
(Weightin
g:
15%)
Exemplary
,
rigorous
and
concise
argumenta
tion,
performed
in
an original
and
highly
persuasive
manner
There is a
clear and
consistent
line of
argument
with a
coherent
and
effective
underlying
structure.
Demonstra
tes an
ability to
deal with
complex
issues
coherently
,
systematic
Work is
wellstruct
ured
showing
competent
response.
Work
demonstra
tes
continuity
and
coherence
of
argument
that is
logical and
straightfor
ward
Provides
adequate
response
but
lacks
consistent
argument.
Work
somewhat
deficient
in
integration
and
coherence
and/or
showing
some
lack of
intellectua
Work is
poorly
organised
and
lacks
logical
structure.
Lack of
integration
and
coherence
of
issues with
unclear
argument.
Disorganis
ed and
no
understand
ing
of the
issue,
problem or
task.
Argument
is
poorly
constructe
d and
confused
51

ally and
creatively.
to follow. l
engageme
nt with
the
material.
Insight
and
Analysis
Does the
work
critically
address a
range of
views? Is
it self-
reflective
and
analytical?
Research
proposal;
(Weightin
g: 30%)
Dissertatio
n.
(Weightin
g: 25%)
Brings
together
and
critically
discusses
internation
ally
leading,
current
academic
insights,
and reflect
on these
appropriat
ely.
Shows
critical
awareness
and
insightful
understand
ing of the
issue to be
addressed,
problem to
be
analysed
or task
to be
executed.
Demonstra
tes
Informed
reflection
integrated
into
practice.
Shows
strong
grasp of
the
issue,
problem
or task,
supported
by
clear
understand
ing of
relevant
fields of
academic
knowledge
.
Evidence
of
reflection
in
most areas
Adequate
awareness
of
issue,
problem or
task.
Analysis
not
entirely
thorough
or
complete.
Some
evidence
of
reflection
but
lacks
insight
into
impact on
practice.
Shows
inadequate
grasp of
issue,
problem or
task;
analysis
thin with
insufficien
t
knowledge
of critical
and
analytical
questions;
links to
own
practice
are
descriptive
with little
evidence
of
reflection.
Shows
misinterpr
etation of
critical
ideas and
concepts.
No
evidence
of
reflection
in relation
to own
practice.
52

Originality
Does the
work
include
original
illustration
s/
examples?
Is there a
distinctive
synthesis
of material
and
relevance
to
practice?
Research
Proposal;
(Weightin
g: 30%)
Dissertatio
n.
(Weightin
g: 15%)
Generatin
g
novel
insights,
effectively
communic
ated
, cognisant
of
the limits
of the
research
project.
Marked
evidence
of
independe
nce
of mind,
originality
in the
applicatio
n of
knowledge
, and
imaginativ
e use
of
evidence
and
concepts;
evidence
of
challengin
g and
changing
practice.
Confident
and
appropriat
e use
of
concepts,
methods,
and
forms of
analysis.
Reasonabl
e
attempt to
apply
knowledge
and
theory to
own
practice.
Shows
insecure
handling
of
analytical/
methodolo
gical
issues;
insufficien
t
originality
of view;
narrow in
scope
and
limited.
Lacks
originality
;
shows
inability to
apply
ideas to
practice.
No
originality
is
evident.
No
attempt to
demonstra
te
impact on
practice.
53

Descriptor
s Criterion
Assessme
nt
Relevance
Distinctio
n 100 85%
Distinctio
n 75%
Merit 68
65 62%
Pass 58 55
52%
Fail 48 45
42%
Clear Fail
35 25 15%
Use of
Evidence
Is the
evidence
related to
practice
used
accurately,
critically
and
effectively
?
Dissertatio
n.
(Weightin
g: 25%)
Complete,
appropriat
e and
extensive
collection,
analysis
and
presentatio
n of
evidence
Appropriat
e wide-
ranging
evidence
is
discussed
and used
accurately,
critically
and
effectively
throughout
; including
reference
to relevant
profession
al
framework
s.
Demonstra
tes
independe
nce of
mind and
originality
in the
applicatio
Appropriat
e evidence
is
gathered,
including
reference
to relevant
profession
al
framework
s, but
work lacks
breadth
and depth
in relation
to own
practice or
that of
others.
Shows
limited
intellectua
l and
critical
engageme
nt with
own
practice or
that of
others.
Lacks
appropriat
e evidence
and no
critical
engageme
nt with
own
practice or
that of
others.
Draws on
minimal
and/or
inappropri
ate
evidence
with
serious
factual
errors
and/or
misinterpr
etation.
54

n of
knowledge
and
understand
ing linked
to own
practice
and that of
others.
Use of
Resources
and
Referencin
g Is a
range of
reading
and other
resources
used
appropriat
ely? Are
sources
fully and
accurately
cited using
an
appropriat
e style,
Dissertatio
n.
(Weightin
g: 10%)
Clear
definition
of the
scope of
the
research
project,
and within
these
boundaries
, extensive
discussion
of the
Internation
ally
current
debate, in
the
relevant
Demonstra
tes wide
range of
reading
and
resources
consulted
with
imaginativ
e use of
evidence
and
concepts.
Evidence
of a
thorough
grasp of
relevant
academic
Evidence
of some
useful
self-
directed
reading
with
awareness
and use of
relevant
academic
literature,
both
generic
and
subject-
specific.
Reference
made to
other
Confined
to standard
generic
literature
and lacks
critical
engageme
nt. Some
use of
other
resources.
Some
inconsiste
ncies in
citations
and
references
which
detracts
from the
Limited or
inappropri
ate use of
relevant
academic
literature.
Little or
no use of
other
resources.
Lacks
citations
and
demonstra
tes poor
referencin
g style.
No
apparent
use of
academic
literature
or other
resources.
Minimal
or absent
citations
and
references.
55

e.g.
Harvard?
domains literature
and
scholarshi
p in the
field, and
of wide,
selfdirecte
d reading
properly
integrated
in the
assignmen
t. Work is
fully
supported
by
appropriat
ely cited
references
applied in
a
consistentl
y accurate
format.
resources.
Use of
references
and
citations
relatively
consistentl
y applied.
Reading.
Presentati
on /
Communi
cation Is
the work
Research
proposal;
(Weightin
g: 10%)
Dissertatio
Outstandin
g problem
solving,
convincin
gly and
Exemplary
presentatio
n with
clarity of
message
Well
presented,
with good
prose
style;
Satisfactor
y
presentatio
n with
limited
Unsatisfac
tory
presentatio
n with
textual
Unsatisfac
tory
presentatio
n that is
hard to
56

legible,
grammatic
al and
fluent?
Are data
presented
accurately
and
appropriat
ely?
n.
(Weightin
g: 10%)
creatively
presented
in a
manner
that
profession
al scholars
would
recognise
about
peers.
and
informatio
n. Fluent
prose style
with
accurate
spelling
and
grammar.
clear,
logical and
generally
errorfree.
errors;
straightfor
ward to
read.
errors;
poor
clarity of
expression
and
inappropri
ate writing
style.
read and
navigate.
Absence
of clarity.
Additional
comment
Dissertatio
n.
Potential
for
publicatio
n /
exhibition,
or to
undertake
further
research at
internation
al level.
Potential
for
publicatio
n /
exhibition,
or to
undertake
further
research at
national
level, and
to prove
societal
relevance
of
research.
Provides
relevant,
valuable
insights
for an
organisati
on in a
particular
context.
Provides
some
guidance
for an
organisati
on in a
particular
context.
Not to be
fully
followed
as
guidance
by an
organisati
on in a
particular
context.
Ignored as
possible
guidance
by an
organisati
on in a
particular
context
57

Appendix 3: Dissertation Research Checklist
Dissertation route, topic and supervisor
ITEM COMPLETED (Yes/No)
Completed the online form on Learn (Section 6
of the module handbook)
The following MUST be considered and completed BEFORE conducting primary research.
SUBMIT THESE FORMS AT THE SAME TIME AS YOUR PROPOSAL VIA LEARN –
otherwise the research proposal will be marked ZERO, and also ultimately ZERO marking for
the final dissertation
ITEM COMPLETED (Yes/No)
Ethical Approval (ethics checklist signed off
by supervisor/committee) (information can be
found in Section 13 of the module handbook)
Risk Assessment (to be read and signed)
(information can be found in Section 13 of the
module handbook)
The following MUST also be completed in cases of primary data collection such as via
interviews or questionnaires. INCLUDE THESE FORMS IN THE APPENDIX OF YOUR
FINAL DISSERTATION.
ITEM COMPLETED (Yes/No/Not Applicable)
Project Summary (information can be found in
Section 13 of the module handbook)
Participant Information Sheet (information can
be found in Section 13 of the module
handbook)
Informed Consent Form (information can be
58

found in Section 13 of the module handbook)
The following MUST also be completed in cases of internships. INCLUDE THIS FORM IN
THE APPENDIX OF YOUR FINAL DISSERTATION.
ITEM COMPLETED (Yes/No)
Student Risk Assessment and Declaration
Form (to be read and signed) (information can
be found in Section 13 of the module
handbook)
All of these forms can be found on Learn.
The following MUST also be INCLUDED IN THE APPENDICES OF YOUR FINAL
DISSERTATION (if these are relevant for your dissertation)
ITEM COMPLETED (Yes/No)
The questionnaire YES
The interview questions
The software designed
Any other tool used to collect the data
The following MUST also be UPLOADED TO LEARN
ITEM COMPLETED (Yes/No)
The proposal Yes
The final dissertation Yes
59

Your data
60

Appendix 4: Important Contacts
61