The Influence of Globalization on Brand Value: A Lidl Case Study

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Name: Beatrix Erika Misurak
Unit Tittle: Research Project
Student Number: 16004891
Date: 17 May 2019
Batch/Group: HNDB B-WH-D35
Campus: Wentworth House
Lecturers name: Mr Imoh Itieimoh
Intake: September 2017 cohort
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Table of contents:
1. Introduction………………………………………………3
Research objectives………………………………………….3
Rationale……………………………………………………..3
2. Literature review…………………………………………4
3. Methodology………………………………………………5
Qualitative
Quantitative
Data collection tools………………………………………….6
Data treatment and analysis…………………………………..6
Limitation and ethical consideration…………………………6
4. Research schedule and timeframes……………………...7
Gantt chart – Research proposal………………………………7
Gantt chart – Research project………………………………..7
Conclusion…………………………………………………….7
5. References…………………………………………………9
Part 2
1. Executive Summary……………………………………….11
2. Methodology………………………………………………..11
3. Results, Findings…………………………………………...11
4. Discussion, Research findings, Data Analysis……….…...19
5. Conclusion, Recommendation………………………………21
6. Reflection…………………………………………………….21
7. Appendices……………………………………………………24
8. References…………………………………………………….35
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Part1
Research Proposal
THE INFLUENCE OF GLOBALIZATION ON THE BRAND VALUE OF
LIDL
1. Introduction:
This research is going to be directed to show, to explain and to analyse the effects of
globalisation on customer behaviour and brand loyalty at a German origin company called
Lidl. The research will be showing how the company Lidl is able to handle competitiveness
and why consumers feel loyal to the company and why they would not choose other
companies to go to purchase.
Globalization is a historical development, where innovative man ideas and technical
progression happens. It is the movement of service, good, and money from one country to
another or from one continent to the other. This can also be movement of labour and the
knowledge of people between nations (IMF, 2018).
Globalisation is a multifaceted and challenged perception. The latest technology, satellite,
fibre optic cable produced international media, financial exchange a lot easier, allowing huge
increases in traffic capacities (Gonzalez, 2016).
Globalisation is a large weight on businesses and also on consumers sometimes too. The
highlight for consumers is that they are able to go for the best options, which covers less price
for more value and better quality. Customer service must be better and better in order to keep
the most appreciated consumers.
Some questions are going to be answered in the following research, which are:
How globalization influence consumer behaviour towards brand loyalty of LIDL?
The ultimate aim of the research is to identify the impact of globalization on the brand image
of the LIDL and how it influences customer behaviour. The aim of this work is to provide
information on Customer behaviour and loyalty and how it can be managed well. The project
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is going to show what the essential qualities are needed in order to win wide range of
Customers even when globalisation is present.
The loyalty of consumers helps businesses to build a good brand image. Satisfied consumers
share their experiences with others that is going to retain new consumers and brand loyalty
would be won ( Techone, 2019). Many times, a loyal consumer uses a company or their
products a lot more than it would be desired. It is to support the company and to show
devotion.
Competitive advantage can be utilised by any organisation who has loyal consumers. It
benefits both party and works ‘hand in hand’ (Carpenter, 2017). A loyal customer can do
more than only enjoying products of a company. They can go out and promote products or
services and companies because they only have good experiences and they start to feel
emotionally connected too (Carpenter, 2017).
Research objectives:
1. To analyse the effects of Globalization on the Behaviour of Consumers.
2. To analyse the link between Brand Loyalty, Globalization and Consumer Choice.
3. To identify the contribution of brand image on the satisfaction level of customers.
Rationale:
The writer is signifying that globalization effects the local culture of consumers and also the
behaviour and purchasing habits at different companies. The homogenisation of costumer
culture in place of diversity is one of the main influences of the globalization process. That is
becoming more universal due to the development of information technology (Landy, 2009).
Costumers’ ability to have higher disposable income would rise demand for more improved
products and services. This gives the possibility to consumers to buy what they wish to buy
not only what they need. They as well have the choice to favour and to be loyal to certain
companies and brands as the market is huge (Taylor, 2016).
Brand loyalty sometimes mistaken with brand laziness. Laziness means a habitual response
that lacks motivation or reasons. Brand loyalty reflects commitment to a brand that offers
value for consumers not only on material level but on an emotional level too. Globalisation
made it possible for consumers to exhibit loyalty to the best and most suitable brand for
themselves (Acuna et al., 2007, p66-67). Globalization causes the world more interconnected
which gives organisations growth opportunities and also to consumers more options.
Customers have the luxury to change their purchasing styles and choices. The reason why the
writer chose the topic is that globalisation and consumer choices are an ever-rising object in
this fast-paced environment which effects the economics in every country worldwide.
2. Literature Review
Consumer Behaviour means a lot more than only purchasing products. Customer Behaviour
involves things like products, activities, services and ideas and it is also a very dynamic
process. Consumers’ engagement changes prior, during and after the purchase as they go
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through different stages. Their behaviour involves the emotional, mental and behavioural
response that occur during the activities. The customers buy, use and dispose and they make
their decisions whether to be loyal to companies depending on their experiences with their
activities, products and their emotional attachment, if any (Acuna et al., 2007, p10).
Consumer Loyalty is another aspect that determines a company’s success and profitability.
Loyalty means in this contest that consumers go back to the same organisation to purchase. It
can be said that loyal consumers are won by well-designed marketing strategy and
outstanding customer service and of course good quality products (Business dictionary,
2019).
Customers have extremely huge options to choose not only from too many brands to purchase
but the way they carry out their purchases as well. This is all the effects of Globalization that
has changed the world and the economy in the UK and in many other countries. Consumers
have a lot more freedom and the right and luxury to search for the most beneficial products
for their needs (Metcalf, 2018).
There are some disadvantages of globalization that has an impact on the manufacturing
industry. Due to the cheap cost of labour and manufacturing in Third World countries
relevant number of jobs have been lost in the UK. The other concern is that the safety and
conditions of the environment is not satisfactory in Asia, China or Vietnam, only to mention
a few (Metcalf,2018).
Customers accept foreign products and foreign companies in the UK more and more as they
realised that being opened to ‘unknown’ products and brands is not necessarily a bad thing.
Not to mention that the variety of nations, residents from different countries in the UK with
different backgrounds, religious believes and social norms have never been so colourful than
in the past 15 years. Companies had to adopt all the changes and to come up with strategies
that would satisfy people with different ethnicity and lifestyle but also to keep their core
products that would reflect the origin of the company (Metcalf,2018).
Lidl is a German company which allocated stores all over the world. Due to Globalization
that made it possible for companies to work their businesses in most countries all over the
world must introduce and implement strategies that would win consumers over. The
competition has never been so intense than recently, which means that consumers and their
loyalty, behaviour must be more respected than ever. Lidl promotes active lifestyle, safe and
affordable food and also healthy food for competitive value. Lidl also concentrates on caring
for the environment, minimising waste and they have their sources from local businesses.
Many consumers are affected by these facts in a positive way. That means that among other
retail companies they would choose Lidl as a source of food and other purchasing supply for
their everyday life (Lidl.co.uk, 2019).
Lidl is one of the fastest growing store chains in the UK in 2017. According to Fraser Mc
Kevitt, who is the head of consumer insight at Kantar Worldpanel (2017) says: ‘Lidl
collectively added an additional £390m is sales this quarter, which accounts for half of the
entire market’s overall growth this period’ (Independent, 2017). The information proves that
the organisation operates very well, which again shows why consumers have the loyalty
towards Lidl and also why Lidl can be so successful.
3. Methodology
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The researcher is going to apply and to use primary and secondary data. Primary data is
going to be collected from several participants by completing a survey, questionnaire with
closed questions. Questions are going to be kept short and clear to understand. Two questions
in one are going to be avoided.
Secondary data is going to be done, which interprets the primary data as told to somebody.
Qualitative research is going to be completed, supported by valuable sources. It can either be
a similar project in the past, a case study or educational books on an academic level. Only to
mention a few. Secondary data is accessible for public by exploring the internet, books or
newspapers, magazines. The danger is that the information searched on the subject can be out
of date (Thomas,2019). The researcher is going to make sure that secondary data is accurate
and relating to the effects of Globalization on customer behaviour at Lidl.
The researcher is going to apply Quantitative research Methodology in researching on
Customer Loyalty and Behaviour in Lidl and how globalization affects them.
Quantitative method in research is to measure and analyse relatively big amount of data.
Some researchers implement quantitative method for testing a hypothesis in an experiment,
for carrying out statistical analysis. Researchers are using this sort of method for special cases
where they look for answers for questions when they desire frequency and numbers. Attitude
and behaviour patterns can be studied by giving out surveys with well-designed questions.
The main quantitative method is surveys, as it was mentioned above with questionnaires
(reference.com.uk, 20019).
Advantages of questionnaires are: Questionnaires are not expensive to collect information.
There is the choice of designing open ended questions or multiple choices. The answers
might give an accurate information on subjects, depending on questions asked. The
anonymity of participants can be respected avoiding embarrassment (Debois, 2019).
Disadvantages: some participants can be misleading, and dishonest. Some questions can be
left out without an answer. The designed questions can be not accurate. Time delay due to
waiting for responses (Debois, 2019).
Data Collection tool
Questionnaire:
The main tool is going to be a self-complete questionnaire in the research. It is going to
contain Quantitative questions. The researcher will be able to bring together answers that are
important for the subject of the research.
Participant Delivery method Area covered
Ten regular Consumers of
LIDL
Self-complete
questionnaires given out in
person, printed on
paper(leaflet).
UK-Nottingham-Beeston
Data Analysis
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A software of Microsoft Excel is going to be used to analyse the available results of data.
Basic descriptive statistics can be used as the number of participants are not particularly high
in this research. For summarising the data percentage (%) is going to be applied, the quantity
of participants who provide answers.
Presenting Data
The results of the collected data are going to be presented through pie chart, which gives a
full %100. The %100 is going to be divided, depending on the given answers from
participants and the number of participants (Kirklees.gov.uk, 2019).
Limitation and ethical consideration
The analysation of data can be influenced by some limitations. The researcher is aware that
these limitations need to be kept under consideration.
- Some people can experience pressure with question where certain views are accepted
by society.
- The law number of participants.
- Some participants are in friendship with the researcher.
Participant are going to be accurately informed about the aims of the research and the
components of the research. Participants will be given the choice to take part in the research
and will be assured that they only have to answer questions which they want to answer and
are comfortable with them. Confidentiality and anonymity is going to be guaranteed for the
participants. The participants will be informed about the results if they whish to be informed
via e-mail or text message.
4. Timeline of research activities
The research would start on the 6th of March and would be completed on the 7th of August
2019.It takes twenty weeks to complete the project. The activities and activity dates are going
to be organised in a Gantt chart.
Gantt chart
Proposa
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Chose a
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title
Write
research
objectiv
es and
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Write
literatur
e review
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method
ology
Researc
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Limitati
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Create
Gantt
chart
Check
plagiari
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Upload
Proposa
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Write
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naire
Handle
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question
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Waiting
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Analyse
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results
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research
data
Analyse
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with
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Assignm
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Table 1: Gant Chart (Done by Author)
Conclusion
The research proposal is supposed to give some valuable directions and methods that would
be used to provide answers and explanations to the following: The effects of Globalisation
on Consumer behaviour and Brand Loyalty at Lidl. The upsides and downsides of
globalisation effecting consumer behaviour was mentioned when it comes to purchasing at a
certain store. Methodology and the methods of future project was described and is going to be
applied in the main project work.
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References:
Web:
https://techonestop.com/importance-of-customer-loyalty 20:15, 26.04.2019
https://www.business.com/articles/what-makes-customer-loyalty-so-important/ 20:27, 26.04.2019
https://www.slideshare.net/mandalina/globalization-and-consumer 12:05, 01.05.2019
https://studymoose.com/how-does-globalization-impact-consumers-essay 12:30, 01.05.2019
https://yourbusiness.azcentral.com/globalization-affect-customers-16345.html 22:32,
13.05.2019
https://www.lidl.co.uk/en/What-sustainability-means-for-Lidl-11118.htm 12:13, 15.05.2019
https://www.reference.com/math/advantages-disadvantages-quantitative-methods-
15899de8bc898ded 15:43, 15.05.2019
https://surveyanyplace.com/questionnaire-pros-and-cons/ 16:24, 15.05.2019
https://www.reference.com/education/primary-secondary-data-5e4a8333252bf73b 12:02,
16.05.2019
https://www.kirklees.gov.uk/involve/document/AnalysingQuantitativeData.pdf 13:00,
16.05.2019
Book:
Joanne Dauksewicz, 2007, Consumer Behaviour, 4th edition, George T. Hoffman, Boston
Melissa Acuna, 2008, Consumer Behaviour Science and Practice, S4Carlisle Publishing
Services,USA
Gonzalez, B. 2016 Globalization: Economic, Political and Social Issues. Hauppauge, N.Y.
Nova Science Publishers, NC (Economic Issues, Problems and Perspectives).
Journal:
Featherstone, E. (2017) Lidl remains UK’s fastest growing supermarket as sector enjoys 17
months of sales growth, Independent
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Part 2
Research & Report
1. Executive Summary
Projects of any kind must be well established, the controlling, organising and coordinating of
the work have to be simple and clearly understandable. The research proposal is the initial
work that has to be concentrated on and also it gives some guidelines of the work that must
be completed following the proposal.
Research topic, finding and choosing the right topic that interests the writer and he/she is
capable of completing is the most important first step. All the findings that can come from
previous researches, case studies or from valuable sources should link with academic theories
too (Saunders et al., 2016).
This research was to find out the Effects of Globalisation on Consumer Behaviour and Brand
Loyalty at Lidl. It can be stated that the research paper was a success answering the question
about Globalization and its effects on the above mentioned object. The aims were reached
which were finding the link between brand loyalty, globalization and consumer choice in
present day and also to find out how consumers feel about globalization when it comes to
supermarket shopping, and the company Lidl itself.
2. Introduction
Globalization refers to the international business transaction of goods, services, human
resource etc. in current world, globalization is the very important activity for the business
organization to increase business sales, profit as well as gain competitive advantage over
business rivals. The research conducts in order to find out the influence of globalization on
the brand image of the LIFD and identify the influence of business brand image on the
customer decision-making for their shopping experience.
3. Methodology
The Researcher person mainly applied rational methods while directing the research activity.
Mixed method styles were applied when planning and executing the research, which were
qualitative and quantitative.
A survey, a ten questions containing questionnaire were used to gather valuable information
from consumers at one particular supermarket (Lidl) in Nottingham. Ten consumers
completed the questionnaire and returned it back to the researcher person. The questions were
sent out by email and the questions were designed by the help of SurveyMonkey website.
Secondary data was used which was qualitative data, information was gathered by qualitative
research which was more time consuming. The researcher collected information from case
studies, books and journals and also from the internet. All the gathered information was
connected with the main objectives of the research.
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The sample size of the questionnaire survey is 10 which are the loyal customers of the LIDL
business organization that given their responses. The participants of the questionnaire survey
are chosen on the random basis to maintain the accuracy of the research. The reason behind
choosing the customers of the business as participants of the research is because they can able
to give accurate and reliable answer which can help research to derive accurate outcome.
4. Results/Findings
Total of 10 participants were asked every question.
1. Do you shop at Lidl?
Yes 10
No 0
100%
Pie Chart of Given Answers
Yes
No
All ten participants shop at Lidl.
2. How many times do you shop at Lidl in a week?
One 0
Twice 6
More than twice 4
None 0
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