Dissertation: Consumer Smartphone Use Impact on UK Grocery Sales

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Thesis and Dissertation
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This dissertation investigates the influence of consumers' smartphone usage on the in-store sales performance of grocery stores in the UK. It employs a quantitative research method, utilizing surveys to gather data on consumer shopping behavior. The findings indicate that smartphones have a significant impact, acting as both a benefit and a challenge for retailers. While some retailers have leveraged digitalization to enhance sales through personalized options, others have struggled to compete with online marketplaces. The study delves into how smartphone usage affects consumer decision-making processes, purchase intentions, and overall shopping experiences within brick-and-mortar grocery stores, highlighting the necessity for retailers to adapt to mobile marketing strategies and leverage social media to attract customers and improve sales performance in the digital age. The research further explores the challenges faced by the retail industry in adapting to smartphone-driven changes and aims to provide insights into consumer behavior and the impact of smartphones on both shopkeepers and customers.
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DISSERTATION
To study the influence of consumers’ use of smartphones on the in-store sales
performance of Grocery stores of the UK
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Abstract
Purpose:
The last decade has seen a phenomenal rise in the use of smartphones by the people. 65% of the
population worldwide uses Smart phones. 95% of the US population and 84% of the Europe
population have Smart phones and the craze of smartphones can be more seen on young
generations like millennials and generation Z. People rely on their smartphones for
entertainment, knowledge, distraction, work, etc. The major activities that include are e-mails,
calls, chats, games, social media, browsing, etc. People rely on the devices to the point of
distraction from reality.
In this research, the influence of Smart phones on in-store sales performance and its impact on
the consumers’ shopping behavior in brick and mortar shopping. Many types of research have
been conducted on the elated topic but this study especially focuses on the in-store sales
performance because of the use of smartphones by consumers.
Approach:
The research is conducted using a quantitative method of data collection in which the survey
method is used. A survey was conducted of the consumers who shop in-store with the help of a
structured questionnaire. Literature is also reviewed to analyze the viewpoints of scholars and
critics related to the topic and collected data is analyzed and evaluated to address the objectives
of the research and to obtain final results.
Findings:
The research findings imply that consumers’ use of smartphones has severely impacted the sales
performance of the retail stores. Smartphones have become both boon and bane for retailers.
Many retailers have increased the sales with the use of digitalization and providing more
personalized options to the consumers while others have failed to compete with online markets
of Amazon and e-Bay and the sales performance decreased. Overall Smart phones are no longer
the disrupters and became part of the retail industry.
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INTRODUCTION
In today's digital world, mobile usage by the people of the world has reached a tipping point and
in a decade almost 100% of the population will use Smart phones. The increasing penetration of
Smart phones on the lives of the consumers has completely altered their behaviour and also the
way of living. The dependence of smartphones has become a global occurrence. Digitalization
has majorly influenced the businesses and managers and shopkeepers are planning new strategies
every day to utilize the influence of Smart phones on the sales and influence decision-making
process of the consumers (Faulds et al., 2018). With the introduction of online marketing and
every information just one click away from the consumers, it became extremely important for the
in-store owners to adapt mobile marketing and embrace the changes before it gets too late (Lee et
al., 2017).
With new trends and technology, the customer journey has changed. Millennials are more prone
to shopping from their phones and therefore, retailers need to invest more in digital marketing to
increase sales by making shopping for customers more efficient. About 84% of millennials claim
that they use phones to browse products and for comparing prices and other shopping assistance.
Retailers need to adapt to mobile and start turning their fear into opportunities for better sales
performance. Customer’s usage of Smart phones during in-store purchases is the common
occurring (Rippé et al., 2017). Many retailers claim that they fear that the use of Smart phones
decrease their sales performance as people are distracted on their phones and do not indulge in
on-the-spot purchasing. Consumers have told a different tale that while indulging in
smartphones, many items that are not needed to get purchased and useful item is left behind (Lee
et al., 2017).
The pervasive spread of mobile connectivity and the steady development of advanced and new
technology have changed both our way of interacting and communicating and have a major
influence on the decision making of the consumers. Consumers while engaging in brick-and-
mortar shopping use Smart phones as a tool for several different purposes like finding
information about the product online, asking for feedback from friends, comparing prices, etc.
Therefore, it becomes important to understand the influence of consumer’s use of Smart phones
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on the sales performance of retail stores and how Smart phones impact the buying behaviour of
the consumers during the purchasing process (Rippé et al., 2017).
With the advent of online platforms and websites for purchasing and shopping purposes, there is
a huge blow in the sales performance of the stores. But still, there are more than 65% of the
people who prefer to live shopping experiences and visit in-stores for shopping. Retailers can use
the on-going trend of digitalization in their favour by embracing mobile technology and enhance
customer's journeys (Grewal et al., 2018). Retailers should use social media for promotions and
advertisements and attract consumers by displaying a variety of options and discount online. A
large youth population is engaged in social media browsing for more than 4 hours. This gives
retailers a wide chance to display their products to a large number of customers and cater to their
needs and henceforth increase their sales performance (Faulds et al., 2018).
Consumer’s use of Smart phones is not limited to browsing information and comparing prices
but also for payment purposes. Smart phones have become an inseparable accessory for people
that can assist an individual in all sorts of activity related to purchasing from browsing
information to buying products until the very end of payment and feedbacks. Retailers are using
Smart phones as a mediator to market their products not just by applications but by sending
messages of discounts and new arrivals and sales in lieu to get customer’s attention (Rippé et al.,
2017). This study focuses on the influence of consumer's use of smartphones on the sales
performance of the stores. The study will also point out the influence of smartphones on
consumer decision making and how it can impact sales of the stores. The importance of the study
is its detailed information about the impacts on the retail industry after the digitalization (Lee et
al., 2017).
RESEARCH PROBLEM AND CONTRIBUTION
Several research problems are noticed while researching the impact of Smart phones on in-store
sales. There are many challenges faced by the retail industry and in-stores after digitalization and
smart-phone obsession. The process of adapting to change is not simple and requires many
efforts. There are several problems that shopkeepers face while deciding whether the use of
smartphones by consumers while shopping is good for their business or not. It also becomes
difficult for many in-store owners to adapt to mobile marketing and to present a more
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customized range of their products to the customers (Grewal et al., 2018). Millennials are
obsessed with smartphones and to tend to these customers, it becomes important for the in-store
owners to understand the behavior of customers and their decision-making process. This research
is aimed to understand the impact these smartphones have on the sales of in-stores and also the
study will help in understanding the consumer behaviour while shopping and also assist in
understanding the influence of smartphones on shopkeepers and customers and the sales of the
products and services (Wang et al., 2018).
AIM AND OBJECTIVES OF THE RESEARCH
This research aims to understand the influence of consumer’s use of smartphones on the sales of
in-store products and services and how smartphones influence the purchase intention of the
customers and impact the sales of an in-store product. The objectives of the research are:
To understand the influence of smartphones on in-store grocery sales.
To understand the impact on the purchase intention of the consumers because of
smartphones.
To evaluate the change in consumer behaviour due to smartphone usage on the sales of
in-store products and services (Faulds et al., 2018).
RESEARCH QUESTIONS
Some of the research questions are developed by the research scholar to address the objectives of
the research and to successfully get the desired research outcomes. These research questions are:
What is the influence of smartphones on grocery stores?
What are the impact of smartphones on purchase intention of customers and their
shopping stimulation?
What is the influence of smartphones on consumer decision making and consumer
behaviour that impacts sales of grocery stores (Faulds et al., 2018)?
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RESEARCH SCOPE
This research only includes the influence of smartphones on the sales of grocery stores. Through
this research, the scholar aims to understand how the usage of smartphones impacts the
behaviour of consumers and their decision-making process that impact the sales of grocery
products. This research also includes the impact of smartphone usage on the purchase intention
and unplanned purchases and sales of products and services of the grocery stores. After this
research, the scholar will understand the impact the usage of smartphones has on the sales of the
products and services of grocery stores in the UK (Grewal et al., 2018).
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REFERENCES
Faulds, D.J., Mangold, W.G., Raju, P.S. and Valsalan, S., 2018. The mobile shopping revolution:
Redefining the consumer decision process. Business Horizons, 61(2), pp.323-338.
Grewal, D., Ahlbom, C.P., Beitelspacher, L., Noble, S.M. and Nordfält, J., 2018. In-store mobile
phone use and customer shopping behavior: evidence from the field. Journal of Marketing.
Lee, C.R., Tam, K.Y., Lim, J.Y., Seow, P.Y., Lee, V.P.S., Faris, N.A.M. and Haris, H.M., 2017.
Consumer Intention to Use Smartphone for Mobile Shopping. In Handbook of Research on
Leveraging Consumer Psychology for Effective Customer Engagement (pp. 221-233). IGI
Global.
Rippé, C.B., WeisfeldSpolter, S., Yurova, Y., Dubinsky, A.J. and Hale, D., 2017. Under the
sway of a mobile device during an instore shopping experience. Psychology & marketing, 34(7),
pp.733-752.
Wang, J.P.C. and Gutierrez, A., 2018, October. An In-Store Mobile App for Customer
Engagement: Discovering Hedonic and Utilitarian Motivations in UK Grocery Retail. In
European, Mediterranean, and Middle Eastern Conference on Information Systems (pp. 225-
243). Springer, Cham.
Zimmermann, R., Auinger, A. and Riedl, R., 2019, July. Smartphones as an Opportunity to
Increase Sales in Brick-and-Mortar Stores: Identifying Sales Influencers Based on a Literature
Review. In International Conference on Human-Computer Interaction (pp. 82-98). Springer,
Cham.
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