Impact of Covid 19 on Customer Buying Behaviour and Sales

This research study examines the impact of Covid 19 on customer buying behaviour and sales in the retail sector, with a focus on Primark. It explores the changes in customer needs and preferences, the decline in sales, and provides recommendations to reduce the impact of Covid 19 on Primark.

Research Management
Project and Career
development
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Table of Contents
BACKGROUND OF BUSINESS ISSUE.......................................................................................3
LITERATURE REVIEW................................................................................................................5
METHODOLOGY..........................................................................................................................7
FINDINGS.......................................................................................................................................8
RECEMMENDATIONS...............................................................................................................17
REFERENCES..............................................................................................................................19
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Topic – Impact of covid 19 on customer buying behaviour and sales.
BACKGROUND OF BUSINESS ISSUE
Covid 19 has highly impacted on overall global economy. It has become a great concern
for government as well as business. There has been high decline in growth and sales of business.
It is because of lock down imposed due to which shops are closed. The pandemic has impacted
adversely on all sector such as retail, tourism, automobile, etc. There is no industry left on which
the pandemic has not affected (Gillingham and et.al., 2020). Moreover, there is also change in
needs of people as well. Now, they have become more health conscious and are consuming
healthy products only. In addition, spending on other things has decrease and they are focusing
only to fulfil basic needs. There is shift in demand and supply as well. However, it is found that
there is change in consumer buying behaviour. It is because of shift in their demands and needs.
So, the overall process of buying behaviour is transformed. The decisions are taken on basis of
availability of product in market rather than on various other options.
So, in UK in retail sector there is high decline in sales and profit of companies. It has
been found that in UK there is 5.1% decline in sales since March. The fashion and clothing
sector showed 34.8% decline since last year. In addition, it has been found that in 2020 there is
rapid rise in online shopping in UK. It has been found that since April sale rise from 19% to
30.2%. Along with that, it has been found that in 2020 87% of households in UK did online
shopping. Moreover, clothing and sports products were shopped online by customers. Besides
that, price and choice are 2 main factors considered by people in doing online shopping. On
contrary it is found that in April stores sales decreased to 87.8% and in July it was -48.1% (Hall,
Prayag, and Dyason, 2020). Similarly, in high street in April there was decrease in 81.8% and in
July it was 47.5%. The government is third tier has imposed lock down again in UK due to rise
in number of covid cases. So, it has add on another hurdle for retail companies to maintain
business growth and increase sales.
Primark is a fashion retailer in UK and is operating in US and Europe. It provides
products such as clothing, house ware, cosmetics, etc. The headquarter is in Dublin Ireland. Due
to covid 19 there is lock down imposed in many countries. So, this has highly impacted on
growth of company and its operations (Gao and et.al., 2020). It is because they were not able to
deliver products to people as stores were closed. Along with that, there is change in customer
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buying behaviour as well. They now prefer to buy online and also save money as they do not
want to spend it on unnecessary items. Their prioritises have changed. There is more spending
done in fulfilling basic needs. Covid 19 has affected on many business operations such as HR,
sales, production, etc.
Research aim and objectives
Aim- To examine the impact of covid 19 on customer buying behaviour and sales. A project on
Primark.
Objectives
 To evaluate impact of covid 19 on customer buying behaviour
 To analyse affect on sales due to covid 19 on Primark.
 To recommend ways to reduce impact of covid 19 on Primark.
Research question
 What is impact of covid 19 on customer buying behaviour?
 What is affect on sales due to covid 19 on Primark?
 What are ways to reduce impact of covid 19 on Primark?
Rationale of project
The main purpose of doing this research is to find out how covid 19 has impacted on
customer buying behaviour. Also, it will enable in determining impact on sales of companies
operating in retail sector as well. Besides that, it will be examined that what are factors due to
which customer buying behaviour is changed, how they are making decision, etc.
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LITERATURE REVIEW
Impact of covid 19 on customer buying behaviour
According to Mahajan, and Tomar, (2020) with change in times there is also change in
shopping. So, as shopping is related to buying behaviour so covid 19 has impacted on customer
buying behaviour. It is due to change in their needs and preference due to which their behaviour
has changed. Now, they are focusing on buying healthy foods and products. Besides that,
expenses incurred on extra items or things are now reduced to great extent. For example – earlier
customer preferred to do shopping regularly to buy items such as clothing, electronics, furniture,
etc. Moreover, their first priority was high quality products. Hence, an in depth research was
done to gather info about product and then comparison was done on basis of certain criteria that
is quality, price, features, specification etc. But now the overall process has modified with
change in priorities and needs of customers. It is found that customer focus only on quality and
price rather than searching for various other options. Instead, they only buy products such as
food and groceries. Furthermore, all other needs that is clothing, furniture, etc. are not considered
as priority. In addition, it is evaluated that customers are not comparing prices of food and
groceries items as well. They are taking instant decision of buying products when it is available.
Furthermore, customers are pre ordering food items that is out of stock. So, when it is in stock
they get first order of it.
As stated by Harris, and et.al., (2020), customer perception regarding their daily needs has
changed as well. This is due to lock down and covid 19. Hence, with change in daily needs
buying behaviour is impacted. In addition, it has been found that the method of payment is
changed as well. Now, people are preferring to pay online rather than cash on delivery.
Furthermore, brand is not associated with buying behaviour as people are shopping on basis of
their budget. Thus, they are not looking for brand. Besides that, quality is considered only when
product is available in stock. So, many times customer are buying low quality goods as well
when they need it. Alongside, with decline in personal income buying behaviour has changed.
Now, no additional shopping is done. People are trying to save income for future.
Affect on sales due to covid 19
As said by Acee-Eke, and et.al., (2020), the pandemic has resulted in impacting adversely
on overall global economy. It has led to moving towards recession period. Due to it, many
people have lost their jobs. Also, major impact is on business which are operating in physical
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model. The lockdown imposed by government has forced business to remain shut down for long
time. Apart from that, lock down has stopped operations of business as they are not able to
manufacture products. In addition, new guidelines and norms imposed by government has
restricted fully operations of firms. In every country all types of companies operating in various
sector like steel, hospitality, aviation, etc. are adversely impacted. So, there is affect on their
sales and growth. It is because people are not able to go out and do shopping. But it is found that
retail sector growth is hampered to great extent. So, with decline in sales there is also decrease in
revenue as well of organisations. Due to that they are not able to grow and expand in other
market. Alongside, market share of firms is affected as well. However, it has been found that in
UK there is decline in sales of clothing stores by 35% due to covid 19.
As elucidated by Wu, and Olson, (2020), with thee is already stiff competition in retail
sector. So, it become difficult for companies to operate and increase sales. So, covid 19 is has put
burden on them as with competition there is decline in sales as well.
Ways to reduce impact of covid 19
In the view of Karpman, and et.al., (2020), it is necessary for firms to take necessary
measures and actions in order to minimise impact of covid 19 on sales. This must be done so that
they are able to survive in market for long term. Moreover, it will hell them in stable growth and
to compete with others. Besides that, the use of ways depends on nature, type and size of
business. Thus, the ways are defined as below
Tracking expenses against revenue- It is way in which business can do assessment of their
expense and income. In that they can find out areas where expenses can be reduced. Therefore,
doing this will give clear insight on how they can control their expenses and move forward in
future. Also, it will be useful in analysing their current status in the market. Moreover, on basis
of it strategies can be developed. It will lead to gradual growth of firm in market. Thus, by
controlling expenses business can reduce impact on covid 19.
Feasibility of business model – This is also a way by which impact of covid 19 can be
minimised. Here, firm can evaluate feasibility of business model and find out whether it is
resulting in generating adequate revenue or not. Thus, on basis of that prediction can be made
regarding what are income and expenses will occur. Along with that, it will give insight on cash
flow and financial metrics of model. They can analyse impact on new sales, credit cycle, bad
debts, etc. Thus, on basis of that strategy can be developed to change model in future.
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Planning for 3 months- In this firm can make plans for 3 months in which data and info
regarding market, customer needs, etc. is gathered and analysed. Thus, all strategies such as
sales, finance, marketing, etc. can be revised (Marchant-Forde and Boyle, 2020). Other than
this, short term goals are set and in step by step way business growth can be improved. The
business must focus on short term planning rather than long term.
Apart from it, there are many other options as well which can be applied. In this company
can communicate transparently with customers. It will allow in retaining them and giving
explanation about significance of their product or service. In this way customer perception can
be changed and they are attracted. Furthermore, it will enable in maintaining healthy relationship
with them for long time. Also, supplier and contractors can be given payment without any delay
so that strong relationship is maintained with them (Kraenzlin, Meyer, and Nellen, 2020).
METHODOLOGY
It is essential to select methods in order to conduct study. This is because it provides a
framework to researcher that what methods is to be used and doing study in systematic way.
Likewise, for present study as well methodology is defined as below :
Research philosophy- It gives an overview about overall researcher is been done. It becomes
easy for researcher to proceed further after selecting philosophy. There are several types of
researcher philosophies which can be used that are pragmatism, positivism, realism or
interpretivism. It mainly deals with development of knowledge, nature and with its source. So,
here, scholar will use interpretivism philosophy as it will enable in finding out impact of covid
19 on sales and customer buying behaviour (Ricotta, and Walsh, 2020).
Research strategy - It refers to procedure followed in collecting data. Generally, there are two
common research strategies used. These are quantitative and qualitative. In quantitative focus is
on facts and figures rather than theory and model. But in qualitative only theoretical data and
info is obtained. This enables in gathering of more data and knowledge for topic. Thus, in
present study scholar will use qualitative strategy in which focus is on customer buying
behaviour and impact on sales due to covid 19.
Research approach – The scholar defines how he or she will collect data and analyse it. This will
help in conducting the research in a smooth way. Generally, there are three approaches which
can be used. It includes deductive, inductive and abductive approaches. For present study,
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scholar will use inductive approach. It will make it easy to relate impact of covid on customer
buying behaviour. Also, new theories will be evolved as well in it (Bhatti, and et.al., 2020).
Research design- It is a plan to conduct study in step by step manner. It enables researcher to
produce quality results by gathering specific data. Basically, there are two common research
strategies available which are exploratory and conclusive. In exploratory more knowledge is
obtained about subject. But in conclusive conclusion is made of topic. Therefore, current study
will use exploratory to gain knowledge about covid impact on buying behavior and sales.
Data collection- The scholar must interpret and analyse data in effective way to obtain relevant
outcomes. Thus, it is process of interpreting raw data into useful info. There are two methods
available in it that is primary and secondary. Primary means to collect fresh data through
questionnaire, survey, interview, etc. and secondary is to gather from journals, articles, etc.
However, in this study both primary and secondary methods will be used. In primary
questionnaire will be used to gather data. For secondary data journals, articles, etc. will be used
in it (Dunn, Hood and Driessen, 2020).
Sampling – It is necessary to select target people from population so that relevant data is
gathered from them. Sampling ins process of dividing population on various criteria and then
selecting sample from them. There are two types in it that is probability and non probability.
Hence, in present study random sampling method will be used. The sample size will be 30
employees of Primark.
Data analysis - It is a process of interpreting and analysing data to obtain the precise information.
The researcher must be able to analyse data in an effective way so that aim and objectives will be
effectually attained. Moreover, to get the desired outcomes, proper analysis technique must be
used. In order to interpret data, there will be various tools and techniques as well as methods
available. Here, thematic data analysis technique will be used in it.
FINDINGS
Secondary research – As said by Leone and et.al., (2020) with change in times there is also
change in shopping. So, shopping is related to buying behaviour thus covid 19 has impacted on
customer buying behaviour. It has changed their daily needs. Also, it has been found that the
method of payment is changed as well. Now, people are preferring to pay online rather than cash
on delivery. Furthermore, brand is not associated with buying behaviour as people are shopping
on basis of their budget. Thus, they are not looking for brand. People are preferring to do safe
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shopping rather than going to store and buy it. In addition, technology has played vital role in
improving the customer experience. The use of advance technology that is virtual and augmented
reality has provided a new in store experience. Besides that, robots and AI systems are used to
support people in shopping. Moreover, they have become more health conscious and are
consuming healthy products only. In addition, spending on other things has decrease and they are
focusing only to fulfil basic needs. Also, there is shift in e commerce industry as most people are
shopping online.
Primary research
Theme 1 Customer spending money only on essential items
Q-1 Are customer spending money only on essential items? Frequency
Yes 25
No 5
Total 30
Interpretation - In order to answer research questions, study was conducted in Primark. The
question was to find put impact of covid 19 on customer buying behavior and sales. In that 30
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employees data was gathered through questionnaire. From data it can be found that 25 said yes
customer are spending money on essential items. Where 5 said no. it is stated that due to covid
there is decrease in personal income of people. So, they are trying to save income and spend less
on other items. Also, they are reducing expenses as well. Thus, it has led to buying only essential
items.
Theme 2 quality and price priority of customers in buying behaviour
Q-2 Is quality and price still priority of customers in buying
behaviour?
Frequency
Yes 12
No 18
Total 30
Interpretation- Here, a study was conducted in Primark to examine impact of corona virus on
buying behaviour and sales. Thus, primary data was collected of 30 samples. By analysing data it
is evaluated that 12 said quality and prices are still priority of customers in buying products.
however, 18 said no to it. therefore, customers are focusing on availability of products rather
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than its quality and price. It is because their needs are changed. Also, they need only essential
goods. But some are considering both criteria in buying of products in Primark.
Theme 3 customer preferring to make online payment rather than COD
Q-3 Are customer preferring to make online payment rather than
COD?
Frequency
Yes 28
No 2
Total 30
Interpretation- the scholar did a research to analyse impact on buying behvoiour and sales due
to covid 19 I Primark. for that questionnaire was used and data of 30 staff was collected. In that
it was analysed that there out of 30, 28 said that they prefer to make online payment rather than
cash on delivery. But only 2 said no to it. This shows that there is high impact of corona virus on
buying behaviour. Customers are concerned about health issues so they are making online
payment. They do not want to interact with salesperson and touch any other thing. Moreover, it
has saved their time as well.
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Theme 4 brand preference still associated with buying behaviour
Q-4 Is brand preference still associated with buying behaviour? Frequency
Yes 10
No 20
Total 30
Interpretation – for answering research question of impact of covid 19 on customer buying
behavior and sales. In that 30 employees data was gathered through questionnaire. From table it
is found that 10 said brand preference is still associated with buying behaviour and 20 said no for
it. So, it is analysed that brand is not being preferred by customer in buying products. But rather
focus is on availability. This is because due to lock down there is shortage of essential items.
Hence, customers are not getting it on time. Thus, they are not sticked on one particular brand
but searching for other brands as well.
Theme 5 Primark need to focus on online business model
Q-5 Do you think that Primark need to focus on online business
model?
Frequency
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Yes 26
No 4
Total 30
Interpretation- An investigation was done by researcher in Primark. for that questionnaire
method was used and primary data was collected of 30 sample. In that it is found that 26
employees said yes company need to focus on online business model. But 4 said no. therefore, it
is evaluated that due to lock down all stores are closed. Besides that, post covid way of doing
business has changed. All retail companies are focusing on online business. It has ease customer
to do shopping from anywhere, anytime. Apart from it, Primark are easily able to reach large
people with online model. It will highly help in increasing sales and generating revenue.
Theme 6 social media help in effective promotion and increasing sales
Q- 6 Can social media help in effective promotion and increasing
sales?
Frequency
Yes 22
No 8
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Total 30
Interpretation- Here, a study was conducted in Primark to examine impact of corona virus on
buying behavour and sales. Thus, primary data was collected of 30 samples. So, it can be stated
that 22 respondents said yes social media can be useful in increasing sales but 8 said no. hence,
social media helps in reaching large number of people. Also, it is useful in effective promotion
and advertisement. Primark can use it to create awareness about their products by giving ads on
various social sites such as facebook, Instagram, etc. With that more leads can be generated.
Theme 7 ways to retain customers for long time
Q-7 What can be done in order to retain customers for long time? Frequency
Offering discounts and reward 10
Maintaining strong relation 10
Continuous communication 10
Total 30
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Interpretation – by analysing table it is evaluated that out of 30 respondents, 10 said that
Primark can offer discounts and rewards to retain customers, 10 said that they need to maintain
strong relation and 10 said for continuous communication. Therefore, with help of all these
tactics company can retain customers. By offering discounts customer can be given benefits,
also, strong relation will be useful in making them aware about new products and with
communication their feedback is taken and all other issues are resolved. Thus, with that it
becomes easy to find out needs of customers as well and provide products accordingly.
Theme 8 Primark growth and sales affected with change in buying behaviour of customers
Q-8 Has Primark growth and sales affected due to change in buying
behaviour of customers?
Frequency
Yes 23
No 7
Total 30
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Interpretation- from above table it is found that 23 staff said that yes Primark growth and sales
is affected with change in buying behaviour. But on other hand 7 said no for it. therefore, it is
analysed that customer are buying only essential goods such as food, groceries, etc. they are only
buying clothes during festival or events. It is because of decrease in personal income. Besides
many people jobs are lost so they are not having money to buy clothes. Hence, it has directly
impacted on sales of Primark and profits.
RECEMMENDATIONS
In order to reduce the impact of covid 19 on customer buying behaviour and sales it is
necessary to take certain measures and action. This is because it will enable in taking effective
decisions and developing strategies in order to ensure that Primark is able to sustain in market for
long term. However, by taking some decision it will allow in increasing sales and retaining
customers. hence, the recommendations taken are as follows :
 Primark should focus on their online business model and try to attract customers from it.
In this they can use social sites such as Facebook, Instagram, twitter, etc, and promote
products through it. With that it will enable in attracting a lot of customers easily. It will
also result in reducing other expenses that is incurred on physical business.
 The company can offer various discounts and rewards to customers in order to attract
them. Besides that, firm can provide coupons and membership system as well to
customers so that when they shop they get discount on products. In this way it will
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enable in retaining them and also increasing sales as new customer will be attracted as
well through it.
 Primark must regularly communicate with customers in order to maintain strong relation
with them. By that customer perception regarding product can be changed. However, it
will be useful in retaining for long term. Along with that, they can be made aware about
new product easily. Other than this, they will be able to understand their buying
behaviour and how decision are taken in it.
 Here, organisation need to find out areas where more expenses are incurred. With that
they can reduce expenses on things such as advertising, operations, SCM, etc. It is
possible when they emphasis on online business model. Hence, it will be led to rise in
sales and revenue.
 The company can acquire some other small firms who are offering retail products to
customers. So, it will result in working in collaboration with them and maintaining
demand of their product as well in market.
 Primark can use new tools designed to give a more personalized in store experience, like
AR and VR. It will help company to transform store formats. Technology powered stores
like the Amazon Go outlets shows a less touch, safe retail outlet model that could work
same for organization and support the customer journey.
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REFERENCES
Books and journals
Acee-Eke, B.C., and et.al., 2020. COVID-19 effects on consumer buying behaviour of
departmental stores in Rivers State, Nigeria. International Journal of Scientific &
Engineering Research, 11(6), pp.272-285.
Bhatti, A., and et.al., 2020. E-commerce trends during COVID-19 Pandemic. International
Journal of Future Generation Communication and Networking, 13(2), pp.1449-1452.
Chernick, H., Copeland, D. and Reschovsky, A., 2020. The Fiscal Effects of the COVID-19
Pandemic on Cities: An Initial Assessment. National Tax Journal, 73(3), pp.699-732.
Dunn, A., Hood, K. and Driessen, A., 2020. Measuring the effects of the COVID-19 pandemic
on consumer spending using card transaction data. US Bureau of Economic Analysis
Working Paper WP2020-5.
Gillingham, K.T., and et.al., 2020. The Short-run and Long-run Effects of Covid-19 on Energy
and the Environment. Joule, 4(7), pp.1337-1341.
Hall, M.C., Prayag, G. and Dyason, D., 2020. Beyond panic buying: consumption displacement
and COVID-19. Journal of Service Management.
Harris, J., and et.al., 2020. Food system disruption: initial livelihood and dietary effects of
COVID-19 on vegetable producers in India. Food Security, 12(4), pp.841-851.
Karpman, M., and et.al., 2020. The COVID-19 Pandemic Is Straining Families’ Abilities to
Afford Basic Needs.
Kraenzlin, S., Meyer, C. and Nellen, T., 2020. COVID-19 and regional shifts in Swiss retail
payments. Swiss Journal of Economics and Statistics, 156(1), pp.1-20.
Leone, L.A., and et.al., 2020. Healthy food retail during the COVID-19 pandemic: Challenges
and future directions. International journal of environmental research and public
health, 17(20), p.7397.
Mahajan, K. and Tomar, S., 2020. COVID‐19 and Supply Chain Disruption: Evidence from
Food Markets in India. American journal of agricultural economics.
Marchant-Forde, J.N. and Boyle, L.A., 2020. COVID-19 effects on livestock production: A One
Welfare issue. Frontiers in veterinary science, 7, p.734.
Ricotta, P.J. and Walsh, K.R., 2020. Mothballing Motions from Retail Debtors to Avoid Rent
Payments Due to COVID-19 Pandemic. American Bankruptcy Institute Journal, 39(8),
pp.12-53.
Wu, D.D. and Olson, D.L., 2020. The effect of COVID-19 on the banking sector. In Pandemic
Risk Management in Operations and Finance (pp. 89-99). Springer, Cham.
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APPENDIX
Questionnaire
Q-1 Are customer spending money only on essential items?
Yes
No
Q- 2 Is quality and price still priority of customers in buying behaviour?
Yes
No
Q-3 Are customer preferring to make online payment rather than COD?
Yes
No
Q-4 Is brand preference still associated with buying behaviour?
Yes
No
Q-5 Do you think that Primark need to focus on online business model?
Yes
No
Q- 6 Can social media help in effective promotion and increasing sales?
Yes
No
Q- 7 What can be done in order to retain customers for long time?
Offering discounts and reward
Maintaining strong relation
Continuous communication
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Q- 8 Has Primark growth and sales affected due to change in buying behaviour of customers?
Yes
No
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