Marketing Research Project: E-commerce, Consumer Behavior & Retail

This marketing research project investigates the influence of e-commerce on consumer behavior and its subsequent effects on retail companies, specifically focusing on the omnichannel transformation of Majid Al Futtaim Carrefour in the United Arab Emirates (UAE). The research addresses the limitations of previous studies by examining the key issues that significantly impact online shopping behavior. The project includes an introduction outlining the research background, aims, objectives, and significance, followed by a comprehensive literature review that clarifies key concepts and summarizes relevant findings. The methodology section details the research philosophy, approach, design, strategy, data collection methods (including sampling and data analysis), and ethical considerations. The study explores how e-commerce has transformed customer purchasing behavior and its consequences for retail chains, identifying solutions for businesses to adapt to these changes. The research employs various techniques and tools to analyze the impact of e-commerce, aiming to provide valuable insights into the evolving landscape of retail and consumer behavior in the digital age. The research also looks into the impact of the internet on consumer behavior, including convenience, technology, and consumer trust in online shopping. The project concludes by summarizing the key findings and implications of the research, offering a comprehensive understanding of the e-commerce's role in reshaping the retail industry.

Running head: MARKETING RESEARCH PROJECT
Marketing Research Project
5/8/2019

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Abstract
The intent of this research is to evaluate the e-commerce influence on the consumer
behaviour and its consequences on the Retail Company’s, specifically in the case of Omni-
channel transformation in of Majid Al Futtaim Carrefour in the United Arab Emirates
(UAE)". It has been analyzed that there is limited information regarding online consumer
behaviour as it is one of the complicated socio-technical concepts and comprises several
factors. The key objective of this research is incorporating the flaws in the preceding studies
that did not evaluate the key issues that possess a major influence on online shopping
behaviour. This objective has been attained by examining different studies presented under
the same topic by applying diverse techniques and tool of research and philosophies.

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Table of Contents
Abstract......................................................................................................................................1
1. Introduction............................................................................................................................3
1.1. Research Background......................................................................................................3
1.2. Research aim and objective.............................................................................................3
1.3. Research Question...........................................................................................................4
1.4. Research Significance.....................................................................................................4
2. Literature Review 1500..........................................................................................................5
2.1. Introduction.....................................................................................................................5
2.2. Conceptual Clarification.................................................................................................5
2.3. Summary.......................................................................................................................11
3. Research Methodology 1750................................................................................................11
3.1. Introduction...................................................................................................................11
3.2. Research Philosophy.....................................................................................................12
3.3. Research Approach.......................................................................................................13
3.4. Research Design............................................................................................................13
3.5. Research Strategy..........................................................................................................14
3.6. Data Collection Method................................................................................................15
3.6.1. Sampling method...................................................................................................16
3.6.2. Data Analysis Method............................................................................................16
3.7. Ethical Consideration....................................................................................................17
3.8. Summary.......................................................................................................................18
References................................................................................................................................19

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1. Introduction
1.1. Research Background
Under the business structure of B2C e-commerce cycle activity, customers utilize Internet for
different causes and aims like finding product features, reviews, prices, choosing services and
products by Internet, ordering, payment, etc. which is tracked by the Internet and last is sales
service via Internet (Hernández, Jiménez and Martín, 2010). In the last few years, there is
vast development on the Internet of the huge global market place for the services and goods
exchange. In different developed nations, the Internet has been accepted as the key medium,
providing a number variety of products within 24-hour accessibility and broad coverage area
(Javad, Dolatabadi and Nourbakhsh, 2012). It has been analyzed that the growth of e-
commerce has not impacted the behaviour or conduct of the consumer but also the retail
companies like Majid Al Futtaim Carrefour in the United Arab Emirates. Majid Al Futtaim is
the leading retail chain, which has now transformed its Carrefour brand with the SAP the
international company of technology. It has been analysed that company has decided this
step, due to the huge impact of the development of e-commerce on the customer buying
behaviour. Customers have started purchasing different products through the online medium
due to which a number of retail chains are enforced to convert their business structure.
1.2. Research aim and objective
The aim of this research is to highlight the impact of e-commerce on the customer purchasing
behaviour and the repercussions on the Retail Company’s Omni-channel transformation in
the specific case of Majid Al Futtaim Carrefour in United Arab Emirates (UAE)”. To meet
the aim of the study, the objectives that will be followed are:
Identifying the major influence of e-commerce on customer purchasing behaviour

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The consequences of changing consumer buying behaviour due to e-commerce in retail
chains
Identifying the best solutions for business to manage the changing behaviour of the customers
due to e-commerce
1.3. Research Question
What are the impacts of e-commerce on changing customer buying behaviour and its
consequence on retail chains?
1.4. Research Significance
The behavior of the customer during online shopping is considered as the procedure of
buying products or services through the Internet. The procedure is comprised of five key
steps in comparison to traditional shopping behavior. In the characteristic procedure of online
shopping when latent customers identify the necessity for a few of the merchandise or
service, they reach to the Internet and get the information related to the need. However, in
place of searching keenly, at times potential customers are enticed by data about the service
or product linked with the identified need. They then identify and assess the available
substitutes and select the best available option and fit the criteria for fulfilling the need.
Finally, the online transaction is conducted and post-sales are offered. The attitude of online
shopping is the psychological state of the customer in relations to purchasing products on the
Internet (Liang and Turban, 2011).
E-commerce has a major influence on retail businesses in a number of ways. Retailers have to
accept new technological demands from the operators in order to enable them to participate in
the world of business. It has upraised the direction through which companies, irrespective of
size do business (Hennig-Thurau, Malthouse and Skiera, 2010). The inference was that the
industry of retail was experiencing huge losses due to e-commerce. All the traditional retail

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businesses now operate their business through web and number of e-commerce businesses
like Bonobos, Warby Parker, and Amazon, are expanding through brick and mortar shops. As
with the fast development in the technological industry, there is high demand for the retailers
to search for new ways to fulfill the necessity of their patrons. With advanced technologies
and advanced mobile products, consumers are opting online shopping and are making use of
technology on a regular basis. For the industry of retailing, E-commerce has progressively
become a basic constituent of the strategy of the business and a strong substance for
economic development (Gounaris, Dimitriadis and Stathakopoulos, 2010). For example, with
the increasing use of the internet and negative impact of e-commerce on retail chains, Majid
Al Futtaim the retail chain of UAE is converting its Carrefour brand with the SAP. In the year
2018, Majid Al Futtaim introduced the digital platform of the Carrefour brand, which is being
operated on the SAP Hybris solution, which is now also known as SAP Commerce Cloud.
With the introduction of its digital platform, the company is planning to expand its services in
more markets where it offers its Carrefour brand (Zawya, 2019).
2. Literature Review
2.1. Introduction
A literature review is a key element or part of the research. This chapter of the study helps the
investigator in identifying and framing different theoretical understanding about the topic of
research in an orderly manner.
2.2. Conceptual Clarification
Kim and Peterson (2017) have stated that Electronic commerce is the emerging model in
recent time that merchandise as well as sells the tool where buyers also able to participate in
each phase. It helps in selling the products electronically rather than selling through phone or
physical store. In the words of Chaffey (2015) E-Commerce is the procedure of vending and

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purchasing the product through electronic modes such as internet and mobile application. It is
also known as online retailing. It has gained popularity in recent time that is replacing the
traditional modes or stores. Through E-Commerce, customers get the ability to search for
information regarding products properly. Using this, they can select the item that they want to
purchase and make the payment electronically. The best example of E-Commerce in recent
time is Amazon, eBay, and Flipkart. Oliveira, Alhinho, Rita and Dhillon, (2017) also
highlighted that; E-Commerce helps the seller in getting the global reach of their product. In
this way, it helps in removing the barrier related to the place. Without getting the hindrance
related to location, the buyer, as well as seller, can meet in the computer-generated world.
Similarly, it proves to be the cost saving process for the seller, as it does not require paying
the rent and hiring the staff for presenting itself physically at the time of sale.
Internet Impact on Consumer Behaviour
The impact on the behavior of the customer is mostly made between the internal and external
factors. External forces arise from the situations present or take place in the environment and
internal forces arise from the mind of the consumer. Several forces are present that can
influence the behavior of the consumer. As per the Burman and Aggrawal (2015), the
external impact can be divided into five sections that are socio-economies, public policy,
demographics, and technology; reference groups, marketing, and culture and subculture. An
internal impact is a number of the psychological procedure, which comprises learning, self-
image, attitudes, motivation, and semiotics. Besides this, according to Akar and Nasir (2015),
the customers have two motives while shopping that is non-functional and functional. The
functional objects are major regarding time, the need for customer and place of shopping. The
non-functional motives of customers are united with social values like the brand name of the
store. On the other side, traditional shopping is just regarding the consumer to buy their

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needs. This customer behavior is prejudiced by the marketing and advertisement of the seller
which entice consumers to purchase products.
Internet shopping
According to Akter and Wamba (2016) internet as well as traditional shopping shares various
similarities but at the same place, there are also various differences between them. The
biggest difference according to him is that it helps in providing the interactive services and
convenience services to the buyers. As compared to this, traditional shopping also provides a
good quality product and more comfort zone to the customers ensuring face-to-face meeting.
Both these services are also trying their best to improve the services. For example- traditional
shopping malls are providing easy convenience to its customers in terms of parking space,
and more counters. However, Chen, Yen, Pornpriphet, and Widjaja (2015) said that internet
shopping malls are adopting 3D techniques and virtual reality in order to improve their
presentation.
Convenience
According to Mittal (2013), the internet offers a huge convenience to the shopper which is the
main reason for increasing online shopping by the customers. Because of the development of
the Internet, customers are able to do online shopping anywhere and anytime. It highlights
that consumer could easily browse and purchase products online due to the availability of
online shopping platforms 24-hours in a day, which works in enticing time-starved
customers. In addition to this, the Internet also provides some effective ways for money and
time saving. For instance, customers do not have to visit the physical outlet and which results
in eliminating the transportation cost for the customer. In comparison with the traditional
shopping methods, the customers do not get any waiting line on online shopping on the
Internet, and in fact many customers have reported that they feel increasing pressure due to

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availability of the sales personnel, but Internet provides more enjoyable environment while
shopping online (Zhang, Fang and Chen, 2011).
Technology
Technology performs a significant part in the development of e-commerce. It has been
realized that new technology tends to put a greater impact on the internet shopping. It has
also been stated that there are various other technologies such as 3D techniques and virtual
reality for gaining a competitive advantage. In contrast to this, Travis (2017) viewed that
information technology is also being used in the form of the internet for improving the
quality of information related to the product. This also helps the shopper in their decision-
making. It is also one of the facts that internet users mostly prefer making an online payment
at the time of shopping due to the security of payment. As the online payment have the proof
to show in case of any mishappening. If the buyer has made the payment, the seller cannot
deny that he or she has not done the payment. It is one such reason that online payment will
become the most influencing factor to ensure internet shopping.
Trust of consumers in internet shopping
Al-Debei, Akroush, and Ashouri (2015) have stated that trust is the willingness of any part to
accept the action of any other party. It is also said to be an expectation that a person keeps on
the other party. Yoon & Occeña (2015) has said that this is the reason behind the trust that a
person keeps in purchasing any products or availing any of the services. Therefore, trust is an
important element for building a strong and positive relationship with customers. It also
believed that if the e-commerce services can help to provide the information regarding the
location of the office, customer service, or the contact number, it could easily gain the trust of
customers. Nisar and Prabhakar (2017) found that the trust of e-commerce also depends on
the security that can be provided by it. If the e-commerce companies will use the security and

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privacy services, the customer will think that the site is more reliable. Due to the availability
of confidential information, people also think that online retailer really exists. In recent time
also, people started trusting more on e-commerce due to less time consumption and the
availability of a variety of products.
Impact of E-commerce on Retail Chain th4e Case study of Omni-channel
transformation in of Majid Al Futtaim Carrefour in the United Arab Emirates
Majid Al Futtaim is the holding company of Emirati based in Dubai, which is known in
operating retail, leisure, and malls in North Africa and the Middle East. The company has
main operations in around 13 nations. In 1992, the entire group was launched in Dubai. Majid
Al Futtaim handles three key subsidiaries that are Majid Al Futtaim Ventures, Majid Al
Futtaim Retail, and Majid Al Futtaim Properties (Zawya, 2019).
It has been analyzed that Majid Al Futtaim was dealing with huge competition from the
increasing development of e-commerce and changing customer behavior towards online
shopping. The businesses experienced losses in its retail chain. Therefore, Majid Al Futtaim
planned to transform its Carrefour brand with the SAP. Carrefour brand of retail chain
possesses one digital platform which incorporates around 100,000 products on its online
website, through tablets and mobile application. The parent company is investing in changing
the 750,000 daily customers and also trying to simplify the supply chain. The retail sector of
the Middle East region is experiencing a sea-change. According to Alpen Capital, with the
increasing number of malls, the retail sector of GCC will also develop by 25% that is $313
billion by the year 2021. The revenue through online shopping is also augmented. The
projects of Deloitte in the e-commerce market of the Middle East are expected to get three
times to around $49 billion by the year 2021 (Zawya, 2019).

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According to Marco Antonio Urios, the senior vice president in the Omnichannel Solutions
and Supply Chain at Majid Al Futtaim Retail, the retail sector of Middle East is experiencing
seismic changes that are considered to be the key opportunity for improving the experience of
the customer with real-time visions. According to their vision of building high moments by
providing stirring experiences, their digital transformation with SAP allows their consumers
to place their orders online or by using mobile applications and offering delivery to the
customer's doorstep.
According to the analysis, at the global level, around 81% of the retailers consider it as
significant to alter the experience of the customers and equip store contacts with real-time
insights. Accenture highlights that around 91% of the customers like to purchase from brands
who remember and recognize them and offer pertinent offers (Zawya, 2019).
In the year 2018, Majid Al Futtaim Company introduced the digital platform of the Carrefour
brand, which is presently operated on the Hybris solution of SAP, which is now known as
SAP Commerce Cloud. In 2018, the company planned to expand its services in different
markets where it offers Carrefour services (Zawya, 2019).
The business introduced a one-hour delivery service known as express online. This service
allows patrons to scan and pack their own goods as they shop the passages for unified in-store
shopping; amongst numerous other available digital Omnichannel solutions for online and in-
store shopping.
According to Abdullah Saqqa, “Majid Al Futtaim validates how the brand that is developed
at its home nation can contest on the global as well as regional level. For this, all credits go to
the digital transformation power and innovation at e-commerce. As the Intelligent Enterprise,
the company is changing the experiences of its customers to enable consumers to buy

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services and products that they desire from anywhere, any time and through any device
(Zawya, 2019).
2.3. Summary
From the above analysis, it could be concluded that with the development of e-commerce that
is a huge impact on the customer buying behaviour, because e-commerce has allowed
customers a single and easy going platform from where they can purchase their products and
services easily. With the development of e-commerce, the customers get on door service fast
and simplified manner. The impact on the behaviour of the customer is mostly made between
the internal and external factors. External factors arise from environmental situations, and
internal factors are from the mind of the customer. The Internet offers a huge convenience to
the shopper which is the main reason for increasing online shopping by the customers.
Because of the development of the Internet, customers are able to do online shopping
anywhere and anytime. In addition to this, advanced technology eases the procedure and
reduces the efforts of the customer. E-Commerce not just has impacted the customer buying
behaviour but it has impacted majorly different retail chains. The successful retail chains are
also dealing with th4e huge competition from the online shopping habits of the customers.
One of the known retail chains of the United Arab Emirates that is Majid Al Futtaim
Company has changed one of its brand that is Carrefour into a digital platform, which is now
offering online as well as in-store services to its customers due to the huge impact of e-
commerce on the buying behaviour of the customers. From the above analysis, it has been
analyzed that the Majid Al Futtaim Company is developed at its home nation can contest on
the global as well as regional level. For this, all credits go to the digital transformation power
and innovation at e-commerce. As the Intelligent Enterprise, the company is changing the
experiences of its customers to enable consumers to buy services and products that they
desire from anywhere, any time and through any device.