Beruflich Dokumente
Kultur Dokumente
Edward J Harrison
10202711
Business and Marketing BA
By Edward J Harrison
Acknowledgements
I would like to thank Professor Charles Dennis for his continued support and
professional guidance throughout the writing of this study. I would also like to
thank Peter and Claire Harrison for their love and support throughout my stay at
University. Finally, Id like to thank Alex, who has encouraged me throughout the
final year.
Abstract
Purpose
This paper explores the reasons why individuals shop online and in-store and the
implications of this for the future role of the store. This is an area which is underresearched and exploring this area will provide beneficial insights for managers tasked
with optimising either or both of online and in-store environments.
Methodology
Qualitative and quantitative research methods were used to proficiently answer the
research questions (stated in literature review) and understand the attitudes held by
individuals involved in shopping online and in-store.
Findings
The paper has found (Test 1) that the majority of people (57%) prefer to shop in-store.
Significantly, 97% of those who do prefer to shop in-store do so because they like to
see the physical product. In contrast, of those who prefer shopping online, the vast
majority (80%) do so because of its convenience. Impulse behaviours proved to occur
more in the store environment.
Research Implications
Time restraints, resource restraints and sample sizes have restricted the research
process for this study. Increasing the sample sizes for Test 1 and Test 2 would
provide a greater insight and reflect a larger proportion of societys views into why
individuals hold the opinions they do towards shopping.
Practical Implications
Using one theory in this study was impractical, as many theories would better answer
every component of this study in terms of looking at online attitudes, in-store attitudes
and assessing consumer behaviour.
Originality and Value
To the best of the authors knowledge, no paper has been published identifying the
reasons why individuals prefer to shop online or in-store. This paper holds value for
managers when assessing how to improve sales in-store or online.
4
Contents page
Acknowledgements
P3
Abstract
P4
P7
2. Introduction
P8
3. Literature Review
P10
3.1 Introduction
P10
P10
P15
P18
3.5 Conclusion
P18
4. Methodology
P19
4.1 Introduction
P19
4.2 Triangulation
P19
P20
P21
P22
P23
P24
4.8. Conclusion
P25
5. Findings
P26
P26
P26
P27
P29
P30
P32
P34
P34
P35
P36
P37
P38
5
P39
P40
P40
P41
Reference list
P42
Appendices
P45
P51
1.
P26
P26
P36
P37
2.
Introduction
Online shopping has become the norm for most individuals and organisations in
todays world. This report will look primarily at why customers prefer to shop online
or in-store. Secondly, this report will evaluate the role of the store environment and
establish how the store environment influences the customer and the implications
behaviour has when applied to theory.
The area of shopping in-store and online has been studied by many academics,
including Liu and Burns (2013). Liu and Burns investigated the attitudes of
shopping in-store and online for luxury goods. They concluded that customers are
motivated by different factors, and that these factors differed between shopping
online to in-store. The study of e-consumer behaviour is becoming increasingly
important as the amount of people shopping online is ever increasing, with over
50bn being spent online in 2012, according to Kelkoo (The Guardian. 2012).
Research by Zhou (2007) has studied the technical specifications of an online
store, whilst Zhang and Von Dran (2002) evaluated the role of interface, design
and navigation when shopping online. These factors, together with the consumer
confidence in payment security (Liao and Cheung. 2002) influence the behaviour
and salient beliefs of individuals towards shopping online. With customers
potentially seeing bad attributes of online shopping, some individuals may opt to
shop in-store.
Previous
researchers
have
examined
how
shopping
motivations
affect
consumers purchase behaviour (Tauber, 1972; Westbrook and Black, 1985) (Liu
and Burns. 2013. P886). Motivational factors play a role in the preference of
whether a customer shops online or in-store, e.g. convenience, rapport, increased
product knowledge. This study will further look at the role which the physical store
plays and to what extent the store environment influences an individuals buying
behaviour and preference.
Exploring the area of buying behaviours between in-store and online is a dynamic
subject due to the increase in digitalisation (Downes & Mui, 1998, Appendix 1).
With this there has been an increase in businesses using online services to reach
their customers. Therefore, researching into and understanding how the consumer
feels (cognition) (Appendix 2) towards online shopping, and bridging any possible
8
gap could potentially lead to an increase in sales. Consequently, this has the
potential to provide numerous benefits to businesses (especially those
predominantly located online) which for online businesses in a necessity.
This paper explores the reasons why individuals shop online and in-store and
therefore provides insights to managers for developing sales.
3. Literature review
3.1 Introduction
This chapter will explore the previous studies conducted in the fields of online and
in-store shopping and review the findings from existing literature. Further, existing
analytical frameworks will be analysed and critiqued, leading to a theory being
promoted to compare to the results from this paper. Key research questions are
considered which will form the basis for later discussions regarding online and instore shopping behaviours.
indicated however, that the research undertook by Liu and Burns targeted
respondents over the age of 21 with a gross household income of over $100,000,
and therefore is not representative of the entire population.
Donthu and Garcias (1999) quantitative research into internet shopping used a
large scale telephone survey. 2000 households were contacted and they received
790 respondents (P57). All respondents were over the age of 16 and were active
on the internet (used it that month). As a criticism, the response rate was low
(39.5%) which questions whether this was the most efficient research method to
use. The survey started with questions about general internet usage,
demographics, in-store shopping behaviour and online shopping. There then was
a series of short questions to measure: attitudes towards online shopping, brand
and
price
consciousness,
risk
aversion,
variety
seeking
propensity,
customer reviews now being a common feature when internet shopping, this
should assist the more risk adverse in-store shopper to shop online. This could be
further motivated by those traditional in-store shoppers wishing to purchase at a
lower price. Both articles however agree on the principle that online shopping
offers a certain degree of convenience to the consumer, as some items available
online may not be available in local stores or may be only sold online. The articles
written by Liu and Burns (2013) and Donthu and Garcia are relevant to this study
in understanding why customers shop differently online or in-store.
Mohan et al. (2013) conducted a study into store atmospherics. It identified which
store environmental factors and consumer characteristics influenced impulse
buying behaviour through positive and negative affect, and the urge to buy
impulsively. Their research utilised quantitative research. 1478 people were given
questionnaires in a shopping mall in India, of which 720 people responded
(P1717).
females (48%), and married (51%) versus unmarried (49%) participants. The
average age was around 30 years and most participants (85%) had a high school
education or above, representing occupations such as students (26%),
housewives (19%), self-employed (13%), employed (39%), and retired (3%)
(P1718). Overall the sample fairly represents the target population of urban adult
Indian shoppers. The survey probed questions ranging from weighted views of the
importance of elements of the store environment to questions about impulse
buying behaviour and urges and influences to buy impulsively. The research
proposed that the store environment factors drove impulse buying through positive
affect and urge. Also, personality variables, impulse buying tendency and
shopping enjoyment tendency influenced impulse buying through positive affect
and urge. Mohan et al. (2013) further suggested that improving the store
environment would lead to an increase in the number of impulse transactions instore. Specific areas for attention included, improving staff friendliness, choice of
music, design of store layouts and lighting.
However, further recent research links impulse buying to hedonic purchase
behaviour, namely variety seeking behaviour (Sharma et al. 2010). Sharma et al.
(2010) stated that impulse buying and variety seeking attitudes are low effort and
feeling-based behaviours. The authors suggest that the relationship between the
12
two is under researched, which indicates a need for this topic area to be further
explored.
Sharma et al. (2010) administered a closed question survey with 321 respondents
(P279) during a four week period in an Indian shopping mall. The questions
focused on the evaluation of consumer impulsiveness, optimum stimulation level
and self-monitoring values of the respondent.
Sharma et al. (2010) found that a combination of consumer impulsiveness and
optimum in-store stimulation leads to an increase in impulsive and variety seeking
behaviours (P280). However, consumer impulsiveness is more strongly associated
with impulse buying and optimum stimulation level is more associated with variety
seeking. Further, Sharma et al. (2010) suggest that self-monitoring relates
negatively with impulse buying as there is an associated element of selfawareness. However, variety seeking is positively linked with self-monitoring.
Conclusively, when considering the work of Sharma et al. (2010) and Mohan et al.
(2013) it is evident that their studies consider that impulse buying can result from a
good store environment (lighting, layout, presentation etc.). This is made apparent
through the value that the authors put on optimum level stimulation (Sharma et al.
2010) and through the advice that store managers should optimise in-store
presentation (Mohan et al. 2013). This view is supported by Babin and Darden
(1995), citing that elaborate store designs and in-store promotions can be
effective tools to stimulate purchase intention.
Sharma et al. (2010) and Mohan et al. (2013) also stated than an individuals
attitudes towards shopping and their impulsiveness are imperative to whether or
not a customer will purchase goods on impulse. Furthermore, Sharma et al. (2010)
identified that self-awareness will impact negatively on impulse behaviour. This
might be due to opting to adhere to the subjective norm, for example, not buying
an extra-large chocolate bar at the till, as friends may pass judgement. The
element of self-regulation which consumers carry will have an influence on what
impulse transactions they make. Sharma et al. (2010) also suggested that a
variety seeking consumer may be more prone to impulse buying, as trying a new
13
product which is on offer could potentially satisfy the needs of a consumer better
than their current good (or service) and may also be at a better price.
One limitation of both Sharma et al. (2010) and Mohan et al. (2013) is that both
studies were undertaken in a shopping mall in India. As this particular research
paper has been conducted in England, the shopping culture and consumer
attitudes might differ significantly.
(Hollensen, 2004, P206) (Appendix 3), identified that the UK and India differ in the
sense that India has a large power distance (the extent to which the less powerful
members of organisations and institutions, like family, accept that power is
distributed unequally), whereas the UK has small power distance. This could mean
that consumers in the UK and India respond differently to, for example, vicarious
learning and adherence to the subjective norm.
Further, Sherman et al. (1997) investigated the effect the store environment had
on consumer emotions and the influence the emotional variable had on overall
shopping behaviour. In order to collect data, Sherman et al. (1997) approached
shoppers exiting fashion stores in a shopping mall and asked them to participate in
a self-administered questionnaire. There were 909 respondents out of 1480
people approached (61.4%) (P367). The questionnaire probed attitudes towards:
perception of the stores atmospherics, emotional state, outcome variables and
demographics. It could be argued that in order to truly assess the emotional state
of the customer, asking the question in-store would have proved more accurate as
their emotional state would have been more apparent.
Sherman et al. (1997) concluded that although cognitive processes largely
account for the store selection and for most of the planned purchases which occur
in-store (P373), the store environment and the emotional state of the consumer
are also important determinants of purchasing behaviour. This notion is in line with
the Wheel of Consumer Analysis (Appendix 2), as consumer cognition and
affection is influenced by and influences the consumer (store) environment and the
consumers behaviour through reciprocal determinism. Considering this study was
conducted around the retail store environment, the results are relevant for in-store
shopping. The articles written by Mohan (2013), Sharma et al (2007) and Sherman
et al (1997) have explored the role the store environment plays in consumer
14
behaviour and has stated that impulse behaviour can be influenced by store
atmospherics.
Babin and Darden (1995) put forward a model which illustrates how the store
environment can lead to purchase intention (Appendix 5). Their study
hypothesised that the retail environment imposes pleasure, arousal and
domination on the customer. When the subject is exposed to such, the
individuals resource expenditure will determine whether they will make more
hedonic or utilitarian purchases. Babin and Dardens model (P56) proposes that
15
purchase intention is the sum of pleasure, arousal and domination; and what
they buy is determined by their resource expenditure. When comparing this model
with the TRA (Ajzen and Fishbein, 1975; 1980), it could be suggested that the
values of hedonic shopping and utilitarian shopping would form part of the
overall attitude towards behavioural intention.
Ajzen (1988; 1991) extended the Theory of Reasoned Action to create the Theory
of Planned Behaviour (TPB) (Appendix 6). The TPB can predict behaviours which
were not entirely under volitional control (unlike the TRA), by including measures
of perceived behaviour control. Perceived behavioural control relates to the
individuals perception of ease in which the behaviour can be performed and aids
prediction of both behaviour and intention to behave (Armitage & Conner, 1999,
P36). Both the TRA and TPB maintain that the subjective norm is an important
attribute when formulating behaviour. Subjective norms are perceptions of the
extent to which relevant others want you to engage in the behaviour weighted by
the extent to which you are motivated to comply with the injunctions of those
relevant referents (Manning, 2011, P352). Regarding the limitations for the TPB,
the model does not factor in variables which contribute towards behavioural
intention and motivation, such as fear, threat mood and past experience (Boston
University of Public Health. 2013) Also, the time frame between "intent" and
"behavioural action" is not addressed within the theory, meaning that the intention
to buy might become behavioural over a longer period.
Ajzen (1985) suggested that ones ability to execute a behaviour is dependent on
ones control over factors such as requisite information, skills and abilities,
willpower, time and opportunity (P36). This idea can be applied to an
individuals ability to shop online.
In underpinning what attributes or attitudes influence an individuals ability or
choice to shop online, the Technology Acceptance Model (Davis 1989) (Appendix
7) is widely regarded as one of the most central models to consider. The
Technology Acceptance Model (TAM) evaluates how a systems ease and
usefulness will lead at actual system use. The TAM states that the perceived
usefulness of a system (U) and the perceived ease of use of a system (E) will form
16
attitudes (A) towards the system, leading to behavioural intention to use the
system (BI) and ultimately, actual system use (B). The TAM compliments the
above comments by Ajzen (1985), as having the information, skill, ability,
willpower, time and opportunity (P36) to determine whether a system is actually
used.
The TAM model is widely considered an extension from Ajzen and Fishbeins TRA
(1975; 1980). The TAM replaces many of TRAs attitude variables (Subjective
norm and attitude towards behaviour or action) with the two technology
acceptance measures: ease of use (E) and usefulness (U). Both models however
are credited with strong behavioural elements. Similarly to the TRA, there are
limitations with the TAM. The model does not consider a persons inability to
perform the behaviour, for example, poor internet speed might impede the
completion of an online order.
Dennis (2009) et al created a model (Appendix 8) which illustrated the econsumer behaviour of an individual when shopping online. Dennis et al. (2009)
considered consumer-orientated research when considering the behaviour of the
e-consumer. This examined the psychological characteristics: demographics,
perceptions of risk and benefit, shopping motivation and shopping orientation of an
individual (P4). Having considered the consumers attitudes and behaviour
towards shopping, Dennis et al. explored the technology approach, examining the
technical specifications of the online store, including: interface, design, navigation,
payment, information, intention to use and ease of use. Through looking at the
psychological characteristics and considering the technological approach, the two
study areas of the proposition provide a framework which integrates the TRA
(Ajzen and Fishbein, 1975; 1980) with considerations of the TAM (Davis, 1989).
The model also proposed, considers situational factors which may impede ones
ability to perform a specific behaviour. Situational factor consideration is a
limitation which is present in both the TRA and the TAM.
Both the TAM (Davis, 1980) and Dennis et al. (2009) have provided a framework
into understanding into why consumers shop online and the factors (situational
and attitudinal) that influence their actions.
17
This study will consider Fishbein and Ajzens TRA (1975; 1980) as a central model
when looking at the consumers preference to show in-store or online, why they
choose to do so and provide a good basis to comment upon evolving behaviour.
This model has been chosen as it has been proven to be a model which is very
applicable in analysing behaviours. Further, the model has been extended and
adapted to create numerous models (examined above) which can be applied to
the findings of this study.
3.5 Conclusion
From this chapter, relevant studies have been examined and their findings
analysed. From the previous studies, gaps in the research have become apparent,
which have formed the basis for the research questions nominated. After selecting
the Theory of Reasoned Action (Ajzen and Fishbein, 1975; 1980) as the central
model to this study, the techniques used to answer the research questions will be
examined in the next chapter.
18
4.
Methodology
4.1 Introduction
To answer the research questions in the most proficient way, a range of methods
in conducting the primary research were considered. This study is concerned with
the attitudes individuals hold when considering shopping both online and in-store,
and therefore validates the reason to use quantitative and qualitative research.
Through reviewing current literature on the topic area surrounding consumer/econsumer behaviour, it has become apparent that quantitative and qualitative
approaches to research are consistently used. When considering whether to use
qualitative and quantitative research, there are two stances which are commonly
considered: the epistemological view and the technical view. The epistemological
view cites that quantitative and qualitative research methods are separate
paradigms (Bryman and Bell, 2007, P644), meaning that both types of methods
are incompatible, voiding the principle of mixed research. In contrast, the technical
view gives greater importance to the strengths of data collection and analysis with
which quantitative and qualitative research are provide and sees these as capable
of being combined. This is a view held by many academics.
Through reading the methodology, it will become apparent that the use of
qualitative and quantitative research can provide a basis to collect a more detailed
sample of results. This will provide further tools for analysis and answer the
research questions in a more proficient way.
4.2 Triangulation
This study will use triangulation, which is when a study uses a combination of both
qualitative and quantitative research methods (Bekhet, 2012, P40). This is where
one research strategy is cross-checked against the results of using another
research method (Bryman & Bell, 2007, P646). Triangulation is often considered
as a continuation of the discussion Webb et al. (1966), where quantitative
19
(P372). (Bryman and Bell, 2007, P680. Schmidt & Hollensen, 2006, P140-144).
Online surveys can be created very quickly, have the ability to reach a large
number of people and can be designed to be visually appealing, however they are
not representative of the entire population (Schillewaert & Meulermeester, 2005,
P177). Further, as this study is investigating the buying behaviours of individuals
in-store and online, using an online method may be perceived as bias as the
survey is directed towards the online population. Individuals may have anonymity
concerns about their data too. In terms of the limitations of intercept surveys, there
are often distractions and pressures such as time, friends, emotional state and so
on which may impede ones ability to respond most proficiently (Schmidt &
Hollensen, 2006, P140). Online surveys were selected as the data is easy to
collect, cheap to perform and the quality of responses will be high as the
respondent will answer the survey at a time most convenient for them. In terms of
minimising the limitations, an ethical statement was attached to the form ensuring
the respondent that all data collected will be kept secure and not passed on to any
other party and data will be destroyed upon completion of the study.
21
(Schmidt & Hollensen, 2006, P63 & 89). With in-depth interviews, there is no peer
pressure placed upon respondents as the interview is conducted in a one-on-one,
non-competitive environment (P91). Further, lots of stimulus can be used
(photographs, videos) and an interview is easy to assemble. However, there could
be issues in terms of interviewer fatigue, as this method of data collection is very
time consuming and replicated (P91). When considering focus groups (P63), the
group can debate amongst themselves, offering a range of viewpoints (Saunders
et al, 2012, P403) and generate a range of ideas (Schmidt & Hollensen, 2006,
P74) and collectively make sense of a phenomenon (Bryman & Bell, 2007, P512).
However, data collected may not be representative of entire population (Schmidt &
Hollensen, 2006, P75), difficult to organise and hard to use stimulus with. Further,
digression could occur (Saunders et al, 2012, P402). Conclusively, focus groups
were selected as it is the most appropriate method when considering the research
questions and offers a depth of dialogue not often found in individual interviews
(Smithson, 2000, P116).
23
In order to keep the research applicable to the TRA (1975; 1980), the group was
asked if they had an opinion of a product (the example Galaxy v Cadburys was
used) and would they go against their preference to secure the non-preferential
product at a cheaper price. This question considered the Theory of Reasoned
Action (1975; 1980) in terms of the component: attitude towards a behaviour.
The group was then asked whether the product they might buy would affect where
they shopped. In order to keep the focus group objective, images of various
products (Toothbrush, computer/technology, furniture, personal items, chocolate)
were passed around and individuals were to state where they would buy the
product and why they would buy the product through a certain medium.
Finally, the group was asked whether they would be more likely to purchase a
product if their friends bought a certain product. This question was posed in a
scenario setting. The group were to be asked whether they would buy a new
chocolate bar if two of their friends were buying one. This question addressed
whether the vicarious learning had an influence on impulse behaviour and the
desire to adhere to the subjective norm influenced an individuals behaviour. This
question was selected as it targeted a component (subjective norm) of the Theory
of Reasoned Action (1975; 1980). In addition, Sharma et al. (2010) found the
consumers were more likely to seek variety and shop impulsively if there was
correct stimulation, and the influence of vicarious learning and ones desire to
conform to the subjective norm may lead to in individual purchasing a product they
otherwise would not have considered.
In practise, a focus groups conversation can deviate from the intended structure
and this proved true in this study. This is expanded upon further in the Analysis.
considering the focus group, no recording was done, answers were written in note
form to keep opinions, names and views anonymous.
4.8 Conclusion
From reading the methodology, the rationale for each method of data collection
has been highlighted. Further, the reasons for using triangulation have been made
apparent. The limitations for using focus groups and online surveys have been
highlighted and the writer has conducted the methods in the most proficient way to
ensure the findings are applicable in answering the research questions. Ethical
issues have been deliberated (Oliver, 2010, P84) resulting in the research
processes being conducted in the most respectful, considerate and professional
manner.
25
5.
Findings
This chapter considers the findings from the research methods discussed in the
Methodology. The results are presented through answering the research
questions.
responses, 1.66% were aged between 0-16; 65% were aged between 65%; 23.3%
were aged between 21-30; 6.6% were aged between 31-50 and 3.3% were aged
over 51.
27
When assessing the groups opinion towards furniture, the response was generally
mixed. One individual stated that they like to see the build quality and see how it
physically looks. Similarly, another individual cited that seeing the product will
give them a feel as to whether it would suit the room it is going into. In contrast,
those who opted to get the product online mutually agreed that is it easier for
delivery and could often be cheaper and if not there are always alternatives
available online.
When considering the image of a new computer, the group was split between
those who would want to shop online, in-store and both. One individual stated that
I would shop online to compare the product to another. Another individual opted
to shop online as It is cheaper usually and there are a lot more products on
there. Further, one participant added I would prefer to go online and read the
reviews. Then I would look between online and in-store prices. In contrast, one
individual stated they would go in-store to get advice from a sales advisor.
Another added I would go with my Dad to have a look at it. Interestingly, one
individual would do both I would look online, read the reviews and see if it was the
best one to go for. Then I would go into store and try and barter with the store to
get the best price. From all the answers it is clear that when buying technology,
individuals are focused on both making sure that the product is a decent product,
validated through reviews and opinions. Also, price is a key component in the
decision making process and ensuring that the consumer gets the best price
possible is crucial. This is supported by data from Test 1. It was found that 83.3%
of the sample would go against their preference of shopping online or in-store to
buy the product for cheaper.
Finally, when the sample was shown an image of a chocolate bar the majority of
the participants stated that they would buy in-store. Only one individual stated they
would buy online, stating If the price was amazing I would. In contrast, the
majority agreed that the in-store method was the most popular, citing it is for
immediate consumption. One individual stated When I buy chocolate it is always
when am in-store. I just pick one up randomly. This response suggested that
buying chocolate is an impulse buy and is more appealing in-store as it is intended
for immediate consumption. When further exploring impulse behaviour, 68.3% (41)
of respondents from Test 1 sometimes buy products on impulse. Of the 41
28
respondents, 90% (54) of the sample justified their behaviour by stating it was
because they see something in front of them that is appealing. This product type
fits the category of being an impulse purchase.
Another determinate between individuals behaviour to shop online or in-store can
be through their attitude towards acquiring product knowledge. 40% (24) of the
sample liked to research the product online; 8.3% (5) of respondents liked to
research the product in-store; 46.7% (28) of individuals opted to research the
product online then see the physical product in-store. 5% (3) respondents cited
that they had other preferences towards product knowledge. One stated I dont
research the product; one individual cited I enjoy when people recommend
products because I like the advice of someone I trust. Finally, one individual said
I like to gather information by consulting friends, family, people who their opinion I
value. From these alternative answers it is clear that two of them like to get
product knowledge from someone they trust (3.3%), and one, interestingly, does
not do any prior research at all (1.6%).
29
advertising (5). From the findings, it could be suggested that online advertising is
not really effective in the cyber store
Another way to assess the role of the cyber store is through the use of the Likert
scale, investigating the individuals (from Test 1) attitudes when considering
whether: online shopping has peaked; better value can be found online and online
shopping is so popular because of the convenience. When considering whether
online shopping has peaked: 26.7% (16) strongly agreed with the statement;
28.8% (17) agreed with the statement; 16.7% (10) were neutral to the statement;
18.3% (11) disagreed with the statement and 10% (6) of the sample strongly
disagreed with the statement. When assessing the samples attitude towards better
value being found online: 26.7% (16) strongly agreed with the statement; 48.3%
(29) agreed with the statement; 13.3% (8) were neutral to the statement; 10%%
(6) disagreed with the statement and 1.6% (1) of the sample strongly disagreed
with the statement. When assessing whether the respondents thought online
shopping was popular because of the convenience: 50% (30) strongly agreed with
the statement; 40% (24) agreed with the statement; 1.6% (1) were neutral to the
statement; 8.3% (5) disagreed with the statement and none of the sample strongly
disagreed with the statement. In terms of analysing the data, applying the
weighted averages of the responses has provided an overall opinion towards the
queried statements. When assessing whether online shopping has peaked, the
sample generally agreed with the statement (3.43/5). When evaluating whether
better value can be found online, the respondents generally agreed with that
statement too (3.88/5). When assessing whether online shopping is popular
because it is convenient, the sample generally strongly agreed with that
statement (4.32/5). Overall, the weighted average of responses across the three
questions was 3.88/5, meaning that the sample generally agreed with the three
statements.
product in front of them; 23% (8) stated that they liked the personal contact with instore shopping (rapport); 23% (8) did so because they enjoy the social element of
shopping; 40% (14) found value in the fact that the customer can return to the
store if they have a problem; 37% of the sample (13) stated that they find that they
receive a better service in-store as opposed to online.
One way to assess the role of the store environment is to see how the
presentation of the store affects whether or not they will shop in-store. 40% of the
sample (24) stated Yes if a store is presented well I will be more likely to make
a purchase; 31.7% (19) of the sample responded Yes If a store is presented
badly I will be less likely to make a purchase; 28.3% of the sample (17) declared
No if a store supplied what I want I will buy it regardless of the environment.
From this question, 71.7% of the sample was influenced by the store environment,
highlighting how influential a well presented environment is.
When investigating how effective in-store marketing is on the sample, 16.7% of the
sample responded that they were Yes Often influenced by in-store advertising
(10); 43% of the sample stated that Yes If the offer is good (26); 30% of the
sample stated that Sometimes (Impulse) (18 respondents) and 10% of the
sample stated that in-store advertising had no impact on them whatsoever (6).
From this piece of research it is evident that in-store marketing is very effective
and therefore plays an important role in the retail environment.
In order to further assess the role of the store environment, the topic of vicarious
learning was investigated to further explore consumer behaviour. This topic was
put to the group through a scenario-based question. If your friends bought a new
chocolate bar on sale in the shop, would you do the same? The results were
generally No. Only one individual said they would If it was recommended by a
friend. These results suggest that the sample is not overly inclined to adhere to
the subjective norm. As a limitation, this question would possibly have had more
varied results if the question was asked individually as nobody really wants to
openly confess be perceived as copying their friends.
As this last response touched on impulse purchasing, this topic area was
prompted further. This was put to the group through a scenario. The following
question was proposed If you walked into the supermarket with no intention of
31
buying chocolate, why would you leave the shop having just purchased one?
There was a range of results and justifications for the proposed impulse purchase.
One individual stated When I see big red and yellow signs in the shop it draws me
in and most of the time Ill buy whats on offer. Another respondent stated that if
the price was good they would buy the bar on offer. The responses here suggest
that individuals do not buy the chocolate bar because they need to. They buy the
product because it is on offer and is eye catching in terms of price and display.
This is consistent with Mahon et al. (2013) in suggesting that with good
presentation in-store, consumers are more likely to impulse buy.
will undertake. This indicates that in the decision making process, there is a higher
level of involvement when a product is more valuable, as supported by Lastovicka
(1978, P87).
When exploring how often an individual purchases a product on impulse, only
3.3% (2) of the sample claimed that then never buy impulsively. Further, 68.3%
(41) admitted to sometimes buying a product on impulse and 28% (17) of the
respondents confessed to frequently buying products impulsively.
To examine why the sample would shop impulsively, 90% (54) of the sample
justified their behaviour by stating it was because they see something in front of
them that is appealing. 7.2% (4) of the sample stated that they do buy impulsively
but it is not necessarily because the product they see is particularly appealing.
Finally, 3.3% (2) of the sample selected N/A as they do not buy impulsively.
When considering the effect of marketing in-store and online, it is clear that instore marketing has a greater impact on the sample. Further, 28.3% of Test 1
were less respondent to online advertising compared to in-store marketing. These
findings were consistent with Test 1 slightly preferring shopping in-store (58.3%).
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6.
After reviewing the findings, analysis will be presented, answering the research
questions through the use of SPSS data (where appropriate), focus group and
survey results. Through further analysis, the extent to which the TRA (Ajzen &
Fishbein, 1975; 1980) supports the finding of this research is discussed.
shopping offers more products and that they can be purchased at a cheaper price
too. But if the product is cheaper in-store they will shop there instead.
One major factor in determining whether a customer would shop online or in-store
is the product type they are buying. Utilitarian products such as toothbrushes were
universally termed an in-store purchase as the product is used instantaneously.
When considering different product types, for example a bar of chocolate,
generally speaking this product is one which again would be purchased in-store.
Despite it being a product which is not particularly needed, it fills an instant
urge/desire and therefore was deemed an in-store purchase. Products which
perhaps are more embarrassing, for example, personal items, split the group as to
whether they would be purchased online or in-store. This is determined by how
comfortable an individual is with certain hedonic behaviours. When a customer is
purchasing a product which is more expensive, the majority from Test 1 stated that
they would do more research into the product. With the consumer having higher
involvement with the product, more research would be undertaken. When gaining
product knowledge, 40% of respondents stated that they research the product
online first, citing that attributes such as customer reviews and viewing
comparable products can form their opinion. In comparison, only 8.3% of the
sample stated that they like to research a product in-store. As a breakdown of
results, 86% of the sample used the internet during the product research stage,
and this increased to 100% of over 31 year olds. This suggests that population
trust online reviews and feedback to gain an overall appreciation for the product.
Easier (Online)
.773**
.794**
The data also showed that there is a strong correlation between those who prefer
to shop online and those that find online shopping more convenient. This
correlation is significant at the .794 level. This shows that a lot of people who do
shop online do so because of the apparent ease in which an individual can shop
online.
From the data collected, online shopping is seen to offer goods at cheaper prices
than in-store. From personal experience, customers who shop online have an idea
as to what they want to purchase beforehand and therefore are not as influenced
by advertising. AIDA (attention, interest, desire and action) is a marketing term
used to break down how advertising works, and by the data collected, only 8.3% of
the sample from Test 1 often purchase products as a result of online advertising.
The other 91.7% of participants block out the noise, which suggests it is an
inefficient method of advertising.
Pearson Correlation
From the primary data collected it is evident that in-store advertising is much more
effective than online. According to qualitative Test 2, this is because the customer
is drawn to the big promotions in-store. With more successful advertising occurring
in-store it could be suggested that more impulse purchases occur as a result.
58/60 participants from Test 1 claim to buy things impulsively whilst shopping.
Moreover, 54/60 participants from Test 1 do buy products as a direct result of instore promotions. Meaning, 93.1% of those who do buy impulsively are also
affected by in-store marketing. In contrast, only 37/60 of respondents are
influenced by online advertising, meaning that only 63.7% of those who shop
impulsively are affected by online marketing. This suggests that in-store promotion
is much more effective than on-line advertising on those consumers who do shop
on impulse.
situational factors e.g. discounts (proved in Test 2) and that especially with higher
involvement products, a positive brand experience will mean an individual is more
likely to be loyal to the brand (as proved in Test 2).
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39
Test 2 has shown that individuals are prepared to negotiate in-store for the best
price and are aware that the best price may in fact be online. Having free delivery
and a wide range of products available have been found attractive for customers
and could increase online sales, along with having a website which is easy to use.
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Appendices
Appendix 1: The New Forces. Downes & Mui. 1998. P7
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46
Appendix 5: Self-regulation in the retail environment. Babin & Darden. 1995. P59.
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Appendix 9: Advantages and disadvantages of surveys. Schmidt, M. & Hollensen, S. 2006. P145.
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