Customer Buying Decisions Report

This report details a research project investigating factors influencing customer buying decisions regarding own-brand food products at UK retail organizations (Tesco, Marks & Spencer, Sainsbury's, and ASDA). A deductive research approach was employed, utilizing a quantitative methodology with a random number sample of 151 participants. Data collection involved both primary (online questionnaires) and secondary (literature review, retailer websites) methods. Statistical analysis (correlation, regression, ANOVA) using SPSS software was conducted. The findings revealed that disposable income did not significantly influence purchasing decisions, nor did family/social factors. However, positive brand awareness strongly correlated with purchase decisions and positive recommendations. The study concludes that retailers should focus on product quality and price, and strong brand image, rather than demographic factors.

Methodology and Discussion

TABLE OF CONTENTS
Methodology...................................................................................................................................1
Research approach.......................................................................................................................1
Study population and sampling...................................................................................................2
Data collection.............................................................................................................................2
Data analysis................................................................................................................................3
Variability and reliability.............................................................................................................3
Discussion........................................................................................................................................4
references.........................................................................................................................................8

METHODOLOGY
Research methodology can be defined as a process which includes number of methods
for collecting appropriate data. The current research project is based on determining different
factors that may influence customer buying decisions towards own food products of retail
organizations of UK (Gay, Mills and Airasian, 2011). For conducting investigation author has
used number of methods such as research approach, data collection tool, analytical methods and
validity and reliability tools, etc. Author has chosen particular methods as per the types of the
research and provided appropriate justification behind the selection. Therefore, this chapter has
introduced an overall methodological approach for investigating the current research problem.
Selected methods and their importance for the current investigation are describing in the
following paragraphs of the report.
Research approach
There are two types of research approach which can be used by researcher for
understanding research problem such as inductive and deductive approach. In which inductive
approach draws conclusion from the existing evidence and theories which have already
published by other researchers on similar subject. Including this, it follows the pattern of
research from specific to general manner (Daniel and Sam, 2011). But on the other hand,
deductive approach focuses on finding evidence to approve and disprove conclusions of past
researchers on similar subjects. Regarding this, author uses hypothesis testing. Along with this, it
moves from general to specific manner. The current investigation is based on determining
different factors which may influence buying behaviours of retail customers towards the food
products. Regarding this, author has been chosen deductive approach of the research because it
helps in conducting quantitative research using hypothesis testing (Inductive and Deductive
Instruction, 2016). Along with this, author has chosen this approach because it helps in
conducting investigation from general to specific it means firstly author has determined the
factors which can influence the customer’s buying decisions and then author has been tested
these factors with context to selected retail organizations of UK (Tesco, Marks and Spencer,
Sainsbury and ASDA). Overall, implementing deductive approach researcher has been tested
general theory on different factors that can influence the customer’s buying decisions and
verified the same result with retail industry (Fiegen, 2010).
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Study population and sampling
As per the requirement of the current investigation author has been decided to collect data
from primary data collection methods also. Customers of retail organizations of UK such as
Tesco, Marks and Spencer, Sainsbury and ASDA have been considered as research population.
Because these universe has helped in collecting appropriate information about the consumer
buying behaviour and different attributes which are considered by them at the time of making
purchase decisions about the different products and services of retailers (Sunil and et.al, 2014).
Sampling techniques help in selecting sample for conducting whole investigation on
current subject. There are two types of research sampling methods probability and non-
probability sampling techniques. For the current investigation author has been chosen random
number sampling method which is an important part of the probability sampling technique. It
selects sample units using random number table. Along with this, provides an equal chance to all
individuals of research universe to be a part of research sample. Along with this, it also helps in
reducing sampling error. Due to all these reasons researcher has decided to select sample by
using random number sampling technique. Along with this, investigator has decided to collect
data from 151 participants. So, sample size for the current dissertation is 151 and it is sufficient
to represent the characteristics of whole research universe (McMillan and Schumacher, 2014).
Data collection
The current research subject is based on determining different factors which can
influence the customer purchase decisions with respect to the products and services of retail
organizations of UK. Regarding this, author has been decided to collect data from both primary
and secondary data collection methods (Garner and Scott, 2013). In which primary data
collection methods helps in obtaining new and fresh information about the current research
subject. Regarding this, author has been applied online questionnaire survey method and it has
been decided to conduct on customers of retailers of UK. For conducting primary research author
has formulated a structured questionnaire which comprises open and close ended questions about
customer’s behaviour. This survey has been helped in collecting and recording information about
the present subject. This primary data helped in resolving the current research problem in more
effective manner. Along with this, author has also decided to collect data using secondary data
collection methods. This method focuses on the past research information which have been
disclosed by the past research scholars on similar subject (Kim, Kim and Park, 2010). Therefore,
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it helps in getting insights to develop new hypothesis for the current research subject. For
collecting secondary data author has been used different sources such as literature review,
websites of the retailers of UK, research papers, journals, articles and blogs, etc. These sources
has helped in getting past information for understanding research subject and problem in
effective manner. Overall, primary and secondary data collection methods have been provided
assistance in getting suitable information for the current subject which helped researcher in
making final conclusion in effective manner (Karkkainen, Jussila and Janhonen, 2011).
Data analysis
As per the above discussion author has decided to conduct quantitative research for
analysing the behaviour of customers of retailers in UK. So, author has decided to collect
information using survey methodology, so author has collected numerical information for
making final results and conclusion. So, for analysing collected data author has decided to
analyse the data using statistical analysis methods (Kumar, 2014). It helps in examining
information using different statistical methods such as correlation, regression, hypothesis testing
and descriptive analysis, etc. in which correlation and regression analysis helps in getting
relations between different factors and buying behaviour of customers of UK retailers. On the
other hand author has selected deductive approach so, researcher has been used different test for
testing formulated hypothesis in effective manner. For conducting statistical analysis author has
been used SPSS which is statistical software which helps in analysing, summarizing and
recording collected facts and figures on customer’s behaviour. Overall, quantitative research
analysis methods have helped in getting answers of every research question in effective manner
which have helped in making meaningful conclusion for the study (McMillan and Schumacher,
2014).
Variability and reliability
Validity and reliability test of the collected data is important because it helps in
improving efficiency of the collected data. Validity can be defined as a degree in which applied
test and other measuring device is truly measuring what researcher wants to intended it to
measure. It means all the collected facts and figures must be valid and relevant to the current
research subject. For the current research author has been focused on the content validity and
regarding this, researcher has included appropriate questions in questionnaire survey which have
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helped in getting valid information (Daniel and Sam, 2011). Along with this, at the time of
secondary data collection author has chosen contemporary research papers and articles which
have helped in obtaining current information for the whole investigation. Along with this, for
maintaining validity author has assured about that questionnaire is valid and it is measuring what
it intended to measures and it can represent the content in effective manner. Further, formulated
questionnaire is appropriate for customers of retailers of UK. Therefore, author has maintained
validity of the data in effective manner which have helped in making meaningful conclusion for
the research.
On the other hand reliability can be defined as overall consistency of a measure and a
measure which can be said that highly reliable if it produces the similar results in consistent
conditions (Fiegen, 2010). Overall, there are different types of tests which can be applied by
researcher for testing consistency of a test, survey and other measuring device. Author has been
applied a pilot test for checking the reliability of the structured questionnaire. Reliability test
helped in determining the random errors in measurement and provides information about the
accuracy of the measuring instrument. Pilot test has reflected that collected data is reliable for
completing the investigation about the current research subject. It can help in conducting
investigation on determining the different factors which can influence the buying behaviour of
customers of retailers at the time of buying food products and services of these organizations.
Overall, researcher has been used most reliable and valid data for making final conclusion for the
current investigation (Gay, Mills and Airasian, 2011).
DISCUSSION
As per the results and findings of the current investigation researcher has applied
statistical tests for disclosing appropriate findings for the current research. For the current
investigation author has used literature review also which helped in getting insights to
understand the research problem and making appropriate hypothesis for resolving this problem in
effective manner. findings of literature has reflected that customer’s disposable income is one of
the major factor which have direct influence on customer’s purchase decisions making process.
Using this insights author has included the relevant questions in survey and got appropriate
results. On the basis of these insights author has developed hypothesis that whether Consumers
disposable income has a major influence on their buying decision or not. Regarding this author
has used descriptive statistics and Anova test. Analysis of the Anova test has reflected that
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researcher needs to reject the null hypothesis and accept the alternative one. Author has found
that customer’s disposable income does not affect the choice of retailers of UK. As per the
findings most of the customers consider price and taste, quality and taste and quality and price at
the time of making purchase of food products from retailers of UK.
Author has obtained information about that family and social class have direct influence
on customer’s decision making purchase. On the basis of this insights author has developed a
hypothesis and author has used regression analysis for analysing facts and figures in effective
manner. Author has found that there is not specific relationship between family, friends and
social class in purchase decisions of customers of retailers at the time of buying food products
and services. Regression coefficient is very low which have reflected a poor relationship between
numbers of variables. Overall, hypothesis testing has reflected that Family and social group do
not have any influence on consumer buying decision. Therefore, findings of the data analysis
have reflected that there is not specific relationship between literature review and statistical
analysis in aspect of the customer decisions and different factors such as family, social class and
friends.
Secondary data collection method has reflected that current lifestyle of UK is very
modern and most of the customers are in a relationship and living together and being to young
age group. According to the historical research most of the person believe that their current life
style influence their purchase decision. On the basis of the regression analysis value of
coefficient is very low which has reflected that current life cycle position such as family
members, ratio of adults and children, employment status and relationship status do not have any
influence on customer’s purchase decisions. Therefore, findings of literature review and primary
research are similar for the current research.
Review of literature has reflected that brand image and awareness has direct impact on
consumer buying decisions. It helps in increasing awareness of the customers about the products
and services of the organization which helps in attracting them to buy a right product as per their
needs and requirements. On the basis of this insight author has developed a hypothesis which has
stated that whether Positive brand awareness will affect consumers buying decision positively or
not. Primary data analysis has reflected that most of the customers are aware about all the
popular brands such as Tesco, Asda, Sainsbury and Marks and Spencer and they buy food
products from these retailers also. Their satisfaction level is also high and they recommend other
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customers to buy products and services from these brands. For making the final conclusion and
analyzing these facts researcher has used correlation method. Author has applied this test for
determining relationship between purchase and final recommend to other people to buy
particular product. Correlation coefficient has reflected that these variables have strong and
positive relationship with each other. It means most of the customers purchase food products
from the selected brands of retailers as well as they recommend other people also to buy that
particular products. It helps in increasing the future sales of the organization. Overall, study has
disclosed that positive brand awareness will affect consumers buying decision positively.
Findings of the data analysis and literature review are similar and have positive relationship.
Along with this, findings of the secondary data has also reflected that most of the
consumers believe that retailers charges high price for those products which have high quality.
Similarly, most of the researchers have disclosed that low quality products associated with the
low price. On the basis of these findings researcher has formulated a hypothesis which have
stated that consumer associate low cost product with low quality. For testing the truth author has
applied the correlation coefficient between two different questions of survey. As per the findings
of the data analysis author has found that most of the customers that retailer’s own food products
is associated with the high quality and low price. So, it increases the total sales and number of
customers for these organization. Along with this, customers believe that low cost products are
not associated with the low quality products. It means quality and price do not have any
relationship each other.
Overall, findings of the data analysis and literature review has strong relations with each
other which have helped researcher in making final conclusion for the current study. Form the
findings of the current research author has disclosed that customer’s disposable income does not
have direct influence on purchase decision of customers. Similarly, consumers of retailers do not
buy food products with reference to the family, friends and social class so, these factors cannot
influence their purchase decision. So, Tesco, Marks and Spencer, Asda and Sainsbury should
focus on needs and requirements of customers rather than their family and other factors. Along
with this, there are different other factors also which can affect the life cycle position of
customer but do not have any influence on their purchase decision making process and these
factors are age, family members, ratio of adults and children, employment and relationship
status, etc. According to the current research most of the customer prefer to buy that food
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products which are associated with the Tesco, M&S, Asda and Sainsbury because they have
appropriate information about these brands. Along with this, most of the customers are highly
satisfied with the products and services of these brands so, they recommend other customers to
buy products and services of these companies. Including this, research has concluded that price
and quality of product. Overall, research has disclosed number of factors which may influence
the customer’s purchase decision making process so, retailers of UK need to focus on these
factors in effective manner.
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REFERENCES
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Fiegen, M. A., 2010. Systematic review of research methods: the case of business instruction.
Reference Services Review. 38(3). pp.385–397.
Garner, R. and Scott, G. M., 2013. Doing qualitative research: designs, methods, and
techniques. Pearson Education.
Gay, L. R., Mills, G. E. and Airasian, P. W., 2011. Educational research: Competencies for
analysis and applications. Pearson Higher Ed.
Karkkainen, H., Jussila, J. and Janhonen, J., 2011. Managing customer information and
knowledge with social media in business-to-business companies. In Proceedings of the
11th International Conference on Knowledge Management and Knowledge Technologies.
Pp. 17. ACM.
Kim, J. U., Kim, W. J. and Park, S. C., 2010. Consumer perceptions on web advertisements and
motivation factors to purchase in the online shopping. Computers in human
behavior. 26(5). Pp.1208-1222.
Kumar, R., 2014. Research Methodology: A Step-by-Step Guide for Beginners. SAGE.
McMillan, J. H. and Schumacher, S., 2014. Research in education: Evidence-based inquiry.
Pearson Higher Ed.
Sunil, N. and et.al, 2014. Research Article Phenotypic Diversity and Genetic Variation within a
Collection of Onion (Allium cepa L.) Germplasm from Peninsular India. Electronic
Journal of Plant Breeding. 5(4). pp.743-751.
Online
Inductive and Deductive Instruction. 2016. [Online]. Available through:
<http://www.educ.ualberta.ca/staff/olenka.bilash/best%20of%20bilash/
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