LSBM300 Business Project: Covid-19 Impact on Consumer Buying Behavior

This research project investigates the impact of the COVID-19 pandemic on consumer buying behavior in the retail sector. It begins by defining consumer buying behavior and exploring the internal and external factors that influence it. The study then examines how the pandemic has led to shifts in consumer preferences, particularly the increased adoption of online channels and the challenges faced by retailers in adapting to these changes. The research employs statistical analysis of collected data to provide insights into the evolving consumer landscape and concludes with recommendations for retailers to navigate the post-pandemic market. This document is available for download on Desklib, a platform offering a wide range of academic resources and study tools for students.

Business research project

CONTENTS
CHAPTER – 1: INTRODUCTION & TERMS OF REFERENCE...........................................1
1.1 Research rationale.......................................................................................................1
1.2 Research problem........................................................................................................1
1.3 Research questions......................................................................................................2
1.4 Research aim...............................................................................................................2
1.5 Research objectives.....................................................................................................2
CHAPTER– 2: LITERATURE REVIEW.................................................................................3
2.1 Introduction of the chapter..........................................................................................3
2.2 Concept of consume buying behaviour.......................................................................3
2.3 Factors impacting consumer buying behaviour...........................................................4
2.4 Impact of covid19 global pandemic on customer buying behaviour within retail
sector 5
2.5 Challenges faced by retail sector due to covid19 pandemic........................................6
CHAPTER– 3: RESEARCH METHODOLOGY.....................................................................8
3.1 Research methodology................................................................................................8
3.2 Sampling......................................................................................................................8
3.3 Data collection methods..............................................................................................8
3.4 Data analysis methods.................................................................................................9
3.5 Ethical considerations..................................................................................................9
3.6 Research limitations....................................................................................................9
CHAPTER – 4: FINDINGS, DISCUSSION & ANALYSIS..................................................11
4.1 Statistical analysis.....................................................................................................11
CHAPTER – 5: CONCLUSION & RECOMMENDATIONS................................................23
REFERENCES.........................................................................................................................24
APPENDIX..............................................................................................................................27
Questionnaire........................................................................................................................27

CHAPTER – 1: INTRODUCTION & TERMS OF REFERENCE
1.1 Research rationale
The retail industry plays a very important role in identifying as well as evolving gross
domestic product of varied nations. As an industry, retail is being regarded as one of the most
significant source of employment. It helps in connecting the clients with their requirements
and desires. From the year 1930s, marketers are making an attempt to comprehend the
consumer buying behaviour for predicting the activities of the customers as well as their
future purchase. Nevertheless, during the past few years, there has been great development
being witnessed in the retail industry (Afifah and et.al, 2021). There were many channels
being created which has made the customers perform in a different way. In the current era,
novel options for purchasing as well as shopping instead of brick and mortar stores have been
evolved and present for the clients. This shift was mainly due to change in the rapid
technological development and transition in the online retailing sector due to covid19
pandemic.
Because of this pandemic there has been noteworthy influence on the retailing sector
as a novel pattern of behaviour was born under the impact of the epidemic. Due to the
requirement, the unexpected movement of clients in relation with online channels was
apparent. There has been generation of new preventive strategies as well as laws concerned
with the manifested augmentation in the social awareness linked with stress along with fear.
Additionally, the pandemic was the main reason behind the changing behaviour of the
customers in regards with new manners of buying which was infrequently existed earlier
(Verhoef, Kannanb and Inman, 2015). Nonetheless, the current shopping experience of the
customers will going to influence the future behaviour of the customers in regards with the
particular alteration as well as adaptation. The novel manner of behaving as well as action
which the customers have accepted throughout the crisis period impacts the old-style buying
behaviour which is left to the subsequent generation.
1.2 Research problem
Because of the pandemic of Covid-19 there has been abundant impacts on online as
well as offline channels. On the first hand, it has augmented the demand of the online
channels which correspond with the changeover of retailing and this can optimistically
influence the retail sector. However, on the other hand this pandemic has resulted in decrease
in the demand of physical channels which can impact the retailers negatively (Nguyen,
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Armoogum and Nguyen Thi, 2021). But, the choice amid the varied channels for purchasing
products and services is driven by behaviour of the customers. Since there has been
restrictions due to covid19, it is highly assumed that the purchase behaviour of the customers
has been altered. More particularly, here comes the main emphasis of the present research
paper which is targeting to analyse the impact of covid19 pandemic on the consumer buying
behaviour in retail sector.
1.3 Research questions
For the purpose of competing the research work effectively there will be requirement
of certain research questions and these are as follows:
 What is the concept of customer buying behaviour?
 Which factors impacts consumer buying behaviour?
 What is the impact of covid19 global pandemic on customer buying behaviour within
retail sector?
 What challenges are being faced by retail sector at the time of global pandemic?
1.4 Research aim
The main aim of the current research work is “to determine the impact of covid19
global pandemic on the customer buying behaviour in retail sector”.
1.5 Research objectives
In order to fulfil the above mentioned research aim effectively, the researcher is
required to have some small objectives and these are being defined underneath:
 To determine the concept of customer buying behaviour.
 To analyse the factors impacting consumer buying behaviour
 To identify the impact of covid19 global pandemic on customer buying behaviour
within retail sector
 To examine the challenges being faced by retail sector at the time of global pandemic.
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CHAPTER– 2: LITERATURE REVIEW
2.1 Introduction of the chapter
Talking in connection with this segment, it assumes a vital part in the general
examination project because of the way that it gives total engraving of the past work being
led by various specialists in respects with the current branch of knowledge. What's more, the
writing review part of the undertaking isn't just confined towards assessing the previous work
performed by the agent rather it involves performing examination, affiliation and refreshing
current realities of the work which should be considered in the current exploration work by
the analyst. Moreover, it likewise incorporates data from differed diaries, magazines, articles
and online distributed investigations connected with the current subject under study. Relating
to this, it stands firm on critical foothold in the exploration work.
2.2 Concept of consume buying behaviour
As stated by Priest (2016), the purchasing conduct of the client significantly
accentuate on the buying exercises of the clients before and in the current that covers the
entire methodology right from picking the item and buying something similar. According to
Blachman (2018), the buying system fluctuates from one client to another and can be just
purchasing or shopping. Together these terms are different as purchasing happens when the
consumer have earlier information on the necessary product, aim it and buy that product
straightforwardly. Be that as it may, shopping is characterized to the longing as well as
delight being passed through simple noticing an item which the consumer doesn't need.
Regardless, every single client changes in their mentalities, standards, faith as well as
characters. Online and physical stores provides different involvement to the people and
hence, the upcoming conduct of the consumer modifies and change according to their present
insight of shopping.
As per Nguyen, Armoogum, and Nguyen Thi (2021), purchasing conduct of the
customer is the moves that is made by them prior purchasing any of the items and
administrations from any kind of outlet. It is the interaction which incorporates counselling
web crawlers, drawing in with the media and utilizing of web-based media sites and so forth.
It is generally significant for the business as it supports them in designing their showcasing
techniques effectively and drives to the promoting endeavours that is having effectively
impacted the clients to purchase their past products and services. On the off chance that
customers are supporting in making their business beneficial, this may bringing about
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enchaining customer and making their advantage more agreeable. Additional, this subsequent
in making valid and solid data about a shopper purchasing conduct (Sardjono and et.al,
2021). For upgrading of the brand picture of the company before clients, then it might be
done through making video crusades, print promotions and online media crusades which
benefits in gaining more amount of organizational benefits as well as incomes.
2.3 Factors impacting consumer buying behaviour
As stated by Wadera & Sharma (2018), there are different factors through which the
customers purchase behaviour can be influenced and they are being categorised into two
groups that is internal as well as external factors. Talking in relation with the internal
influences, according to Hoyer & Krohmer (2020), they majorly depends upon person to
person. Furthermore, these influences are being caused due to varied kinds of dimensions
such as personal factors, cultural factors and loyalty. All these factors critically influence the
procedure of buying of the customers over the period of time in three phases such as pre,
during as well as post buying process. Further, Nayeem (2019) has also demarcated that
factors related to culture influence the actions along with the behaviour of the people and
similarly also impacts their character and decisions. It can be noticed that two people from a
particular or same culture are more likely to share common thoughts, values as well as
opinions. In addition to this, there are numerous researches being undertaken on personal
factors and have stated that age, personalities along with the economic situation of the people
also influences their decisions regarding buying of a particular thing. In the same manner,
customer loyalty is also being regarded as an important conclusive element which highly
affects the behaviour concerning the repetitive purchase events.
Moving further, there are different external influences that are relied on the aspects
which cannot be controlled by the customers. All these influences are being developed from
the factors which are external in nature. First and foremost is motivational influences. As per
Ling & Yazdanifard (2015), showcasing techniques, value limits, deals offers and
advancement impact the clients mentally. Also, area of the physical stores is one more outer
variable that assumes a vital part in convincing the conduct of the clients in regards with
buying products and services for satisfying their requirements as well as needs. In addition to
this, perhaps the main outside factors that impact the purchasing conduct of the client is
emergency. Centering in connection with emergency, it has its set of experiences of crucially
affecting the networks and people because of shortage of food, cover, principal prerequisite
of life plus water. As a result of these effects the way wherein individuals carry on with their
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life is modified. The latest model in regards to this is Covid19 pandemic. Because of this,
individuals have transformed their purchasing conduct and begun buying by means of online
stages because of dread of getting contaminated (Vinod and Sharma, 2021). Due to this there
has been occurrence of another period of buying which have not been happened earlier.
2.4 Impact of covid19 global pandemic on customer buying behaviour within retail sector
Covid19 has been regarded as the global catastrophe of the year 2020 which came
along with unexpected effects on the health as well as economy across the world. Due to the
influence of this pandemic numerous people have altered their behaviour which they had
before in relation with working, studying, entertaining as well as purchasing. Because of this
epidemic there has been occurrence of global panic along with traumatic condition for all the
consumers throughout the globe (Korkmaz and Seyhan, 2020). It can be dais that there has
been a birth of unusual behaviour of the consumers which were recognized by the retail
sectors majorly. According to Laato et.al, (2020), at the commencement of covid19, when the
world has faced important storing of the consumer related merchandise such as food, it was a
signal of the influence of pandemic on altering behaviour of the people in relation with the
novel stage of buying which was not existent earlier. However, as per Alaimo (2020), the
later phases, the consumer behaviour begin embracing online channels digitally for majority
of their requirements as well as desires particularly in the nations which have faced
lockdowns and restrictions. As stated by Zhao & Bacao (2021), utilization of varied kinds of
technologies have augmented from the appearance of the covid19 pandemic. Furthermore,
individuals have also supposed advantages from the present available technology such as
online retailing in fulfilling their varied requirements.
Moving further, because of this epidemic along with the augmentation in the
requirement for online channels, most of the retailers have started considering the strategy of
making more investment in their online channels. New evolvement projects were being
carried out by the business organizations involved in the retail sectors for increasing
accessibility as well as flexibility such as mobile applications for the people who are
searching more level of contentment for their wants and requirements. According to Zhao &
Bacao (2021), the projects being developed by the business organizations and the retailers
was being regarded as a motivational factor for the consumers for feeling secure and for
perceiving more amount of faith from the online buying method owing to the requirement.
Thus, it can be attributed that the overall consumption along with usual behaviour of the
customers were totally altered during the pandemic. Moreover, more and more individuals
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have begun utilizing online channels for accomplishing their wants (Vukasović, 2021).
Nevertheless, this epidemic has resulted in change in the attitude of people all across the
globe and the manners of behaving pertaining to novel regulations which depicted an
important modification in the trust of people, social awareness and the manners of
integration.
As per Erokhin & Gao (2020), as coronavirus significantly affected each area of the
world, retail exchange advancement is additionally impacted. Coronavirus has owed to the
item inside the retail area. This is with regards to the development of the structure of the
business. It is distinguished the way in which this pandemic has assisted retailers with being
imaginative. Considering the example of Tesco, it has really tried to give its all to work and
satisfy the fulfilment of the customers during the pandemic time frame. Dave Lewis, Tesco
CEO said that "Their benevolent endeavours, combined with our intrinsic upper hands in
stores and on the web, assist with affirming that everybody can get the food they need in a
protected climate". In just five weeks, representatives of the company have multiplied their
web-based ability to help their clients as well as change their stores by friendly separating
measures with a view to make their client shop more securely (Gani and et.al, 2021).
By means of the rise of covid-19, countless organizations together with Tesco have
started to work through internet business. As per the diary of the Organization for Economic
Co-activity and Development, the interest has moved from physical retail to internet business.
As the severe limitations social removing to keep away from disease, customary actual retail
organizations practically put off and they started to work through online business. As per
Rigby (2021), the online business of Tesco was growing up practically twenty two percent
after the extension of the lockdown with expanded conveyance limit during the previous
spring's first lockdown (Bandyopadhyaya and Bandyopadhyaya, 2021). Furthermore, Tesco
is one more retailer that has been compensated by adjusting to web based shopping
inclinations of the customers throughout the pandemic. The organization has expanded its
internet based conveyance ability to 1.5 million spaces each week and before the completion
of August 2020, online deals had expanded by almost seventy percent year-on-year.
2.5 Challenges faced by retail sector due to covid19 pandemic
As per the viewpoint of Prasad and Srivastava (2021), there are different kinds of
challenges which are being faced by the retail sector because of the current covid19
pandemic. There were many people who were reluctant to make purchase and due to this
sales of numerous retails stores declined. Many firms have shut down due to restriction of
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movement of people. However, due to the emergence of this pandemic there has been
development of new online channels in the retail sector which has changed the customer
buying behaviour. Although it has put different challenges in front of the retail sectors, but it
has led to the development of this sector as well. Taking the example of Tesco, the business
of this retail store have completely changed in the couple of months following the outbreak as
compared to whole of the past decade (Chae, 2021). The pressure of this change was being
felt throughout the teams of the firm. The financial department of the company faced
different challenges and also played an important role in the immediate response of the
company to the crisis. They worked with colleagues for supporting the fast execution of wide
operational modifications. The business has been doubled for the online grocery shopping
and due to the peak in the crisis there has been recruitment of around 50000 new temporary
employees for supporting their already existing workforce on the shop floor. Corresponding
many other nations, one significant alteration that the finance team has made at the beginning
of the crisis was movement towards remote working. Because of the supportive culture of the
firm this process went quite smoothly. The finance department of Tesco has adopted an open
strategy towards flexible working for promoting enhanced work life balance. Thus, it can be
said that the whole UK gas faced unexpected economic down turn yet people are required to
eat for living (Arribas-Ibar, Nylund and Brem, 2021). The finance department played an
important role in offering correct insights on the ways people are buying and this has
supported in informing the decision being made by the business.
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CHAPTER– 3: RESEARCH METHODOLOGY
3.1 Research methodology
Research methodologies plays a very crucial role for effective completion of the
overall research work. There are different research methods which can be selected by the
researcher for accomplishing the objectives such as qualitative and quantitative research
methods. Focusing in relation with the quantitative methods, it offers numerical information
and incudes mathematical calculations (Andrew, Pedersen and McEvoy, 2018). The results
being obtained from these methods are valid and authentic. On the other hand, qualitative
research methods involves subjective presentation of the information. In the present research
work, quantitative analysis is being utilized by the investigator. This is selected as it will
going to obtain information which will be reliable, accurate as well as trustworthy.
3.2 Sampling
Speaking in relation with sampling, it is being referred as the approaches of choosing
some of the samples from large population. Further, sampling from the population is most of
time regards as practical and helps in collecting the information quickly. There are different
methods of sampling that is probabilistic and non-probabilistic sampling method. Probability
sampling is defined as the method wherein each and every individual have an equal chance of
getting selected. On the other hand, non-probabilistic sampling is defined as that method
which involves non-random selection of participants based on certain criteria. In the present
research study, simple random sampling method is being adopted by the investigator. A
sample of 40 customers have been selected randomly (Denscombe, 2017). This method will
going to support in offering equal opportunities to each and every member to be selected as
the sample under the current study.
3.3 Data collection methods
There are majorly two types of data collection methods which can be adopted by any
investigator for effectively completing the research study. These two important methods are
primary as well as secondary data collection methods. Focusing in relation with primary data
collection, it involves collecting the information for the first time for the purpose of the
research work. Such information has not been obtained by any other in any form of research
work. Primary data is more reliable and accurate and can be collected by conducting
interviews, surveys etc. (Creswell, 2019). On the other side, secondary data collection
method signifies the information which are already existing in relation with the concerned
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topic. In reference with the present research project, the researcher is making use of both
primary as well as secondary data collection method. Primary data is gathered by carrying out
survey of 40 employees by seeking help from questionnaire which includes close ended
questions. Furthermore, secondary data is being collected by exploring varied kinds of books,
journals, article and online published resources related to the current topic. The secondary
data is being presented in the form of literature review.
3.4 Data analysis methods
Data analysis plays a very crucial role in the whole research work as it involves
inspecting, transforming as well as modelling the collected information with the soul aim to
discover useful outcomes and conclusion. There are basically two types of methods through
which data can be analysed that is qualitative analysis and quantitative analysis technique. As
far as the qualitative methods are concerned, they analyse verbal, subjective and behavioural
information (Graziano and Raulin, 2016). On the other hand, quantitative data analysis
method involves evaluation of information using numerical and mathematical tools. In the
current research work, investigator has utilized frequency distribution method which will
support in accumulating information which are numerical. Furthermore, different graphs and
charts is being utilized for analysing the data and presenting it in an effective manner.
3.5 Ethical considerations
Ethical consideration is being regarded as the heart of the research project and thus, it
is important on the part of the research to consider all the components of guarding the
collected information from the respondents and secondary sources significantly. Some of the
ethical consideration being taken into account in the current research are as follows:
 Each and every data accumulated in the present research work is confidential and
respected effectively
 Prior permission of participants were being taken and no one has been forced to be a
part of the research (Brink, 2015)
 Information being gathered from the secondary sources were obtained from reliable
sources and from the public forums which are available freely on the internet
3.6 Research limitations
Each and every research have some or the other limitations. The very first limitation
of the current research work was related to non-availability of finance. Primary research
involves high amount of cost and that is the reason secondary research have also been
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undertaken by the researcher. Secondly, due to lack of time it was not possible for the
researcher to carry out extensive research. Other than this, responses being received from the
participants might be biased and thus, the results of the study might have been impacted.
However, problems related to time management was effectively managed by the researcher
through development of Gantt chart. It has helped in making schedule of the specified
activities that needs to be performed in the current work.
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