Newcastle University Dissertation: Online Consumer Behavior in UK
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Dissertation
AI Summary
This dissertation investigates consumer behavior and customer satisfaction in the UK's online fashion industry. It aims to identify factors influencing consumer behavior and customer satisfaction in the context of online fashion purchases. The research employs a positivism philosophy, deductive approach, and descriptive research design, utilizing primary data collected through a survey of 100 online fashion shoppers in the UK, selected via random probability sampling. The study examines the impact of psychological, cultural, social, and personal factors on consumer behavior, as well as the influence of product features, convenient shopping experiences, and after-sales services on customer satisfaction. Correlation and regression analyses reveal a significant association between these factors and online shopping behavior, supporting the hypothesis that both consumer behavior and customer satisfaction significantly impact online fashion apparel shopping in the UK. The research concludes with recommendations for businesses to improve customer satisfaction and enhance their online shopping platforms.
Running head: DISSERTATION
Investigating consumer behavior and satisfaction towards online buying - A case study of
fashion industry in the UK
Name of the Student:
Name of the University:
Author’s Note:
Investigating consumer behavior and satisfaction towards online buying - A case study of
fashion industry in the UK
Name of the Student:
Name of the University:
Author’s Note:
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1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.
2DISSERTATION
Abstract
Customers are the key resources that the business organizations en-cash for generating profit and
revenue for them. Thus, it is essential for the business organizations to launch products or
services keeping in mind the needs and demands of the customers. This allows the business
organizations to ensure customer satisfaction. The purpose of the research is to recognize the
factors the influences the behavior of the customers thereby, facilitating them to use online
platform for shopping fashion clothing. In addition to, the purpose of the research is to consider
the technological advancements and the advantages gained by the customers due to the use of the
online platform. As a result, the research work will shed light on the factors for improving
customer satisfaction and consumer behavior so that they can continue using online platform for
shopping fashion clothing.
The researcher discusses the concepts and factors of consumer behavior and customer
satisfaction and its impact on the use of the online platform for purchasing fashion clothing. The
researcher has used positivism philosophy, deductive approach and descriptive research design.
In addition to, the researcher has also used primary data collection technique for gathering the
data for the survey research strategy. The researcher for selecting 100 online users of the fashion
clothing has used random probability sampling technique. Out the different factors, it has been
seen that psychological, cultural, social and personal factors has mild association with the
consumer behavior. On the other hand, the factors such as product, convenient shopping and
after sales services has a nearly strong association with the level of customer satisfaction.
Supporting the correlation values, the values of the null hypotheses are also less than 0.05
thereby, highlighting that both consumer behavior and customer satisfaction has an impact on the
online shopping of fashion apparels in the UK.
Abstract
Customers are the key resources that the business organizations en-cash for generating profit and
revenue for them. Thus, it is essential for the business organizations to launch products or
services keeping in mind the needs and demands of the customers. This allows the business
organizations to ensure customer satisfaction. The purpose of the research is to recognize the
factors the influences the behavior of the customers thereby, facilitating them to use online
platform for shopping fashion clothing. In addition to, the purpose of the research is to consider
the technological advancements and the advantages gained by the customers due to the use of the
online platform. As a result, the research work will shed light on the factors for improving
customer satisfaction and consumer behavior so that they can continue using online platform for
shopping fashion clothing.
The researcher discusses the concepts and factors of consumer behavior and customer
satisfaction and its impact on the use of the online platform for purchasing fashion clothing. The
researcher has used positivism philosophy, deductive approach and descriptive research design.
In addition to, the researcher has also used primary data collection technique for gathering the
data for the survey research strategy. The researcher for selecting 100 online users of the fashion
clothing has used random probability sampling technique. Out the different factors, it has been
seen that psychological, cultural, social and personal factors has mild association with the
consumer behavior. On the other hand, the factors such as product, convenient shopping and
after sales services has a nearly strong association with the level of customer satisfaction.
Supporting the correlation values, the values of the null hypotheses are also less than 0.05
thereby, highlighting that both consumer behavior and customer satisfaction has an impact on the
online shopping of fashion apparels in the UK.
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3DISSERTATION
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Background of the research.................................................................................................11
1.2 Background of UK fashion industry....................................................................................12
1.3 Research rationale................................................................................................................12
1.4 Research aim........................................................................................................................13
1.5 Research hypothesis.............................................................................................................13
1.6 Research objectives.............................................................................................................14
1.7 Research questions...............................................................................................................14
1.8 Structure of the research......................................................................................................15
1.9 Purpose of the research........................................................................................................15
1.10 Summary............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of consumer behavior............................................................................................18
2.3 Factors affecting consumer behavior...................................................................................19
2.4 Theories of consumer behavior...........................................................................................20
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Background of the research.................................................................................................11
1.2 Background of UK fashion industry....................................................................................12
1.3 Research rationale................................................................................................................12
1.4 Research aim........................................................................................................................13
1.5 Research hypothesis.............................................................................................................13
1.6 Research objectives.............................................................................................................14
1.7 Research questions...............................................................................................................14
1.8 Structure of the research......................................................................................................15
1.9 Purpose of the research........................................................................................................15
1.10 Summary............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of consumer behavior............................................................................................18
2.3 Factors affecting consumer behavior...................................................................................19
2.4 Theories of consumer behavior...........................................................................................20
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4DISSERTATION
2.4.1 Marginal utility theory..................................................................................................20
2.4.2 Ordinal and cardinal approach......................................................................................21
2.4.3 Engel-Blackwell-Miniard model..................................................................................22
2.4.4 Nicosia model of consumer behavior...........................................................................22
2.5 Concept of customer satisfaction.........................................................................................23
2.6 Factors affecting customer satisfaction...............................................................................24
2.7 Model of customer satisfaction............................................................................................25
2.7.1 SERVQUAL model of customer satisfaction...............................................................25
2.8 Background of the fashion industry.....................................................................................27
2.9 Concept of online shopping.................................................................................................28
2.10 Factors influencing consumer behavior towards online shopping....................................29
2.11 Factors influencing customer satisfaction towards online shopping.................................29
2.12 Challenges of online shopping affecting consumer behavior and customer satisfaction. .30
2.13 Summary............................................................................................................................31
Chapter 3: Research methodology.................................................................................................32
3.0 Introduction..........................................................................................................................32
3.1 Research outline...................................................................................................................32
3.2 Research philosophy............................................................................................................33
3.2.1 Rationalizing the application of positivism philosophy...............................................33
3.3 Research approach...............................................................................................................34
2.4.1 Marginal utility theory..................................................................................................20
2.4.2 Ordinal and cardinal approach......................................................................................21
2.4.3 Engel-Blackwell-Miniard model..................................................................................22
2.4.4 Nicosia model of consumer behavior...........................................................................22
2.5 Concept of customer satisfaction.........................................................................................23
2.6 Factors affecting customer satisfaction...............................................................................24
2.7 Model of customer satisfaction............................................................................................25
2.7.1 SERVQUAL model of customer satisfaction...............................................................25
2.8 Background of the fashion industry.....................................................................................27
2.9 Concept of online shopping.................................................................................................28
2.10 Factors influencing consumer behavior towards online shopping....................................29
2.11 Factors influencing customer satisfaction towards online shopping.................................29
2.12 Challenges of online shopping affecting consumer behavior and customer satisfaction. .30
2.13 Summary............................................................................................................................31
Chapter 3: Research methodology.................................................................................................32
3.0 Introduction..........................................................................................................................32
3.1 Research outline...................................................................................................................32
3.2 Research philosophy............................................................................................................33
3.2.1 Rationalizing the application of positivism philosophy...............................................33
3.3 Research approach...............................................................................................................34
5DISSERTATION
3.3.1 Rationalizing the application of deductive approach....................................................34
3.4 Research design...................................................................................................................35
3.4.1 Rationalizing the application of descriptive design......................................................35
3.5 Research strategy.................................................................................................................36
3.5.1 Rationalizing the application of survey research strategy............................................37
3.6 Sampling technique and sampling size................................................................................37
3.6.1 Rationalizing the application of random probability sampling technique....................38
3.7 Data collection technique....................................................................................................38
3.7.1 Rationalizing the application of primary data collection technique.............................39
3.8 Data analysis technique.......................................................................................................39
3.8.1 Rationalizing the application of quantitative data analysis technique..........................40
3.9 Ethical considerations..........................................................................................................40
3.10 Research limitations...........................................................................................................41
3.11 Summary............................................................................................................................41
Chapter 4: Data Analysis...............................................................................................................43
4.0 Introduction..........................................................................................................................43
4.1 Descriptive analysis.............................................................................................................43
4.2 Inferential analysis...............................................................................................................51
4.2.1 Correlation analysis......................................................................................................51
4.2.2 Regression analysis.......................................................................................................55
3.3.1 Rationalizing the application of deductive approach....................................................34
3.4 Research design...................................................................................................................35
3.4.1 Rationalizing the application of descriptive design......................................................35
3.5 Research strategy.................................................................................................................36
3.5.1 Rationalizing the application of survey research strategy............................................37
3.6 Sampling technique and sampling size................................................................................37
3.6.1 Rationalizing the application of random probability sampling technique....................38
3.7 Data collection technique....................................................................................................38
3.7.1 Rationalizing the application of primary data collection technique.............................39
3.8 Data analysis technique.......................................................................................................39
3.8.1 Rationalizing the application of quantitative data analysis technique..........................40
3.9 Ethical considerations..........................................................................................................40
3.10 Research limitations...........................................................................................................41
3.11 Summary............................................................................................................................41
Chapter 4: Data Analysis...............................................................................................................43
4.0 Introduction..........................................................................................................................43
4.1 Descriptive analysis.............................................................................................................43
4.2 Inferential analysis...............................................................................................................51
4.2.1 Correlation analysis......................................................................................................51
4.2.2 Regression analysis.......................................................................................................55
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6DISSERTATION
4.3 Summary..............................................................................................................................58
Chapter 5: Conclusion and recommendations...............................................................................59
5.0 Conclusion...........................................................................................................................59
5.1 Linking with objectives.......................................................................................................60
5.2 Recommendations................................................................................................................63
5.3 Future scope of the study.....................................................................................................64
References......................................................................................................................................65
Appendices....................................................................................................................................72
Appendix 1.................................................................................................................................72
Survey questionnaire.............................................................................................................72
Appendix 2.................................................................................................................................78
Frequency tables of Demographic questions.........................................................................78
Appendix 3.................................................................................................................................82
Correlation analysis of factors of consumer behavior...........................................................82
Appendix 4.................................................................................................................................83
Correlation analysis of factors of customer satisfaction........................................................83
Appendix 5.................................................................................................................................84
Correlation analysis of consumer behavior and customer satisfaction on online shopping. .84
Appendix 6.................................................................................................................................85
Regression statistics output....................................................................................................85
4.3 Summary..............................................................................................................................58
Chapter 5: Conclusion and recommendations...............................................................................59
5.0 Conclusion...........................................................................................................................59
5.1 Linking with objectives.......................................................................................................60
5.2 Recommendations................................................................................................................63
5.3 Future scope of the study.....................................................................................................64
References......................................................................................................................................65
Appendices....................................................................................................................................72
Appendix 1.................................................................................................................................72
Survey questionnaire.............................................................................................................72
Appendix 2.................................................................................................................................78
Frequency tables of Demographic questions.........................................................................78
Appendix 3.................................................................................................................................82
Correlation analysis of factors of consumer behavior...........................................................82
Appendix 4.................................................................................................................................83
Correlation analysis of factors of customer satisfaction........................................................83
Appendix 5.................................................................................................................................84
Correlation analysis of consumer behavior and customer satisfaction on online shopping. .84
Appendix 6.................................................................................................................................85
Regression statistics output....................................................................................................85
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7DISSERTATION
Appendix 7.................................................................................................................................87
Regression statistics output....................................................................................................87
Appendix 8.................................................................................................................................89
Regression statistics output....................................................................................................89
Appendix 7.................................................................................................................................87
Regression statistics output....................................................................................................87
Appendix 8.................................................................................................................................89
Regression statistics output....................................................................................................89
8DISSERTATION
List of Figures
Figure 1: Conceptual framework...................................................................................................18
Figure 2: SERVQUAL model of customer satisfaction................................................................26
Figure 3: Demographic analysis....................................................................................................45
List of Figures
Figure 1: Conceptual framework...................................................................................................18
Figure 2: SERVQUAL model of customer satisfaction................................................................26
Figure 3: Demographic analysis....................................................................................................45
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9DISSERTATION
List of Tables
Table 1: Correlation values between the factors of consumer behavior and online shopping......52
Table 2: Correlation values between the factors of customers satisfaction and online shopping. 53
Table 3: Correlation values consumer behavior and customers satisfaction on online shopping. 54
Table 4: Testing null hypotheses...................................................................................................56
List of Tables
Table 1: Correlation values between the factors of consumer behavior and online shopping......52
Table 2: Correlation values between the factors of customers satisfaction and online shopping. 53
Table 3: Correlation values consumer behavior and customers satisfaction on online shopping. 54
Table 4: Testing null hypotheses...................................................................................................56
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10DISSERTATION
Chapter 1: Introduction
1.0 Overview
Customers are the key resources that the business organizations en-cash for generating profit
and revenue for them. Thus, it is essential for the business organizations to launch products or
services keeping in mind the needs and demands of the customers. This allows the business
organizations to ensure customer satisfaction. As commented by Hill and Alexander (2017),
satisfied customers influences consumer buying decision, as they tend to shop or purchase from
the same organization or sector regardless of the available alternatives in the market. However,
keeping in mind the recent technological advancements that has gripped the shopping trends, it is
necessary for the business organizations to use and apply technology for the shopping
experiences of the target customers (Hill and Brierley 2017).
The use of technology is highly favored by the population, as this eases the issues the
customers face while shopping physically. Recently, the majority of the population lives a fast-
paced life (Cantallops and Salvi 2014). Thus, the use of technology for shopping has provided an
opportunity for the customers the option of convenient shopping 24/7. The use of technology for
shopping fashion apparels is a major kick-start for the industry. This is because the customers are
able to access wide range of products without being physically present in the shop thereby,
saving them time and the additional hassles. Thus, the opportunity to shop conveniently for
fashion apparels results influences the behavior of the consumers thereby, affecting customer
satisfaction (Oliver 2014).
Chapter 1: Introduction
1.0 Overview
Customers are the key resources that the business organizations en-cash for generating profit
and revenue for them. Thus, it is essential for the business organizations to launch products or
services keeping in mind the needs and demands of the customers. This allows the business
organizations to ensure customer satisfaction. As commented by Hill and Alexander (2017),
satisfied customers influences consumer buying decision, as they tend to shop or purchase from
the same organization or sector regardless of the available alternatives in the market. However,
keeping in mind the recent technological advancements that has gripped the shopping trends, it is
necessary for the business organizations to use and apply technology for the shopping
experiences of the target customers (Hill and Brierley 2017).
The use of technology is highly favored by the population, as this eases the issues the
customers face while shopping physically. Recently, the majority of the population lives a fast-
paced life (Cantallops and Salvi 2014). Thus, the use of technology for shopping has provided an
opportunity for the customers the option of convenient shopping 24/7. The use of technology for
shopping fashion apparels is a major kick-start for the industry. This is because the customers are
able to access wide range of products without being physically present in the shop thereby,
saving them time and the additional hassles. Thus, the opportunity to shop conveniently for
fashion apparels results influences the behavior of the consumers thereby, affecting customer
satisfaction (Oliver 2014).
11DISSERTATION
1.1 Background of the research
Online shopping has taken a huge leap since the trend has begun in the UK. Reports
suggest that an estimated 87% of the UK residents have purchased at least one item by using
online shopping in the past 1 year. In addition to, it has also been seen that online shopping of
fashion clothing jumped to 31% by the second half of 2017 whereas it was just 21.3% in 2016
(Ons.gov.uk 2018). This suggests the increased demand and preference of using online platform
for shopping for fashion clothing in the UK. The ease and convenience provided by technology
influences the people to use it to fulfill all their work, especially, shopping. As commented by
Dai, Forsythe and Kwon (2014), the ability to shop according to the convenience of the
customers makes online shopping more preferable. In addition to, other benefits of online
shopping includes the ability of accessing huge range of products without being present
physically, avoiding crowds and free shipping thereby, facilitating customer satisfaction while
using online platform for shopping.
In the UK, as the majority of the population prefers to be trendy, fashion industry is highly
followed and demanded. Over the years, the use of online shopping in the UK has increased due
to the convenience it offers to the customers. Purchasing and wearing fashionable clothing is
highly demanded among the UK population, as they prefer to be trendy and follow the global
fashion trend (Liu, Burns and Hou 2013). The opportunity of shopping fashion clothing online
allows the customers to shop from global brands. Thus, the population in the UK can shop from
eminent fashion brands that are present within and outside the UK. In addition to, considering
the fast-pace life of the population, the opportunity to online for fashion clothing influences the
consumer buying behavior positively. As a result, the customers are highly satisfied as they are
1.1 Background of the research
Online shopping has taken a huge leap since the trend has begun in the UK. Reports
suggest that an estimated 87% of the UK residents have purchased at least one item by using
online shopping in the past 1 year. In addition to, it has also been seen that online shopping of
fashion clothing jumped to 31% by the second half of 2017 whereas it was just 21.3% in 2016
(Ons.gov.uk 2018). This suggests the increased demand and preference of using online platform
for shopping for fashion clothing in the UK. The ease and convenience provided by technology
influences the people to use it to fulfill all their work, especially, shopping. As commented by
Dai, Forsythe and Kwon (2014), the ability to shop according to the convenience of the
customers makes online shopping more preferable. In addition to, other benefits of online
shopping includes the ability of accessing huge range of products without being present
physically, avoiding crowds and free shipping thereby, facilitating customer satisfaction while
using online platform for shopping.
In the UK, as the majority of the population prefers to be trendy, fashion industry is highly
followed and demanded. Over the years, the use of online shopping in the UK has increased due
to the convenience it offers to the customers. Purchasing and wearing fashionable clothing is
highly demanded among the UK population, as they prefer to be trendy and follow the global
fashion trend (Liu, Burns and Hou 2013). The opportunity of shopping fashion clothing online
allows the customers to shop from global brands. Thus, the population in the UK can shop from
eminent fashion brands that are present within and outside the UK. In addition to, considering
the fast-pace life of the population, the opportunity to online for fashion clothing influences the
consumer buying behavior positively. As a result, the customers are highly satisfied as they are
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