Moreover, an interesting finding revealed during the conducted interviews was that some of the interviewees feel depressed by the various crisis outcomes and specifically by the feeling of uncertainty. However, the low prices which some hard discounters provide are still not the only requirements for growth in market share and profitability.
Consumers are feeling economic stress right now, and this anxiety is heightened by a sense of danger rooted in 21st century worries about terrorism, environmental guilt, genetically modified foods, oil shortages, political uncertainty, currency fluctuations and AIDS, to name some.
The use of multiple source data provides the researcher with the opportunity to develop a balanced and analytical dissertation. There are several explanations for the occurrence of the crisis, which can be recognised in the literature but are not discussed in the present dissertation as the research question is more interested in the outcomes of the crisis than the factors that caused it.
Contrary, perceived risk is often influenced by situational variables and outcomes, which the consumer fails to recognise. The researcher grouped these purchasing patterns in two categories of buying behaviour, which clearly encompass their distinctive characteristics — planned and unplanned buying behaviour.
The following chart represents a comparison of the different purchasing values for the interviewed consumers.
However, the list of references is not an exclusive one and there are many other sources, in terms of scientific domain and area, which could be used.
Buying behaviour is seen to be shifting to products with comparatively good quality and low price Hawkins, In this context, situational determinants of these types can be recognised to be the transactional costs, which are associated with every purchase consumers make.
In other words, the level of complexity of a particular transaction, it is suggested, is determined by the opportunity cost of the alternative channels that exist and transaction costs, such as time, money and effort.
When their budgets are squeezed, and they start to believe that their economic circumstances are likely to get worse, how they choose to spend their money dramatically changes. The direct factors can be recognised as the decreasing disposable income, job insecurity and credit financing hurdles Office for National Statistics, This shows that the process of planning has become an essential characteristic of consumers and is therefore a buying trend, that can be clearly recognised and outlined from the conducted interviews.
They also revealed that they are likely to discuss their purchases and shopping lists with their families or close friends in order to achieve greater buying efficiency in terms of buying the best quality for the amount of financial value they sacrifice.
The present dissertation achieves research reliability and results validity through the application of several approaches. This is another factor explained by the consumers that causes them to be more cautious during buying decision-making. However, as the literature suggests, the most influential factor is recognised to be the external economic instability that UK retail consumers experience.
This can be achieved only through the identification of a set of research variables, to be explored, tested and synthesised in a logical flow Saunders et al.
The interviewer used a blue pen and a sheet of white paper to record the responses. This is why, it can be concluded, the marketing concentration on pricing is an adequate commercial direction as consumers are observed to be cutting on premium products but still insufficient in terms of attracting long-term interest.
The academic literature is used for outlining the academic context of consumers' buying behaviour, whereas the commercial sources are used for identification of the current conditions, which are likely to challenge the academic constructs. Moreover, food retailing, on which the present research question is focused, is seen to be the most stable part of the retailing industry and it is predicted to be gaining market share by the production of efficient marketing strategies.
In other words, if a consumer is unable to clearly identify the possible outcome of a particular buying transaction, the consumer would be less inclined to purchase.
Marketing is the discipline focused on extracting knowledge on consumers' characteristics to enable companies to respond to customers' expectations and facilitate organisations in providing high quality customer service Groucutt et al.
Programmed behaviour, also known as habitual buying behaviour, is the buying pattern which can be characterised as the routine purchasing of low cost items, such as: In this context, business organisations are challenged to develop online platforms, which would relieve the pressure of the purchasing uncertainty consumers often experience.
As the present project aims to analyse the financial crisis effects on consumer behaviour it can be suggested that the in depth scrutiny which the current examination would establish could transform into a valuable source of marketing direction.
Moreover, food retailing, on which the present research question is focused, is seen to be the most stable part of the retailing industry and it is predicted to be gaining market share by the production of efficient marketing strategies.
They become more inclined to delay purchases, trade down, and buy less often. This strategy is chosen as the researcher believes that both methods are significantly dependable on each other in the present research context, and that secondary data provides solid theoretical foundation, whereas primary data contributes to the researcher's ability to address the most important issues in the present context Robson, Finally the researcher achieves reliability and credibility by conducting a number of discussions with academic and commercial specialists in the researched context.
This shift of buying behaviour can be considered to promote the use of online buying channels through which consumers can compare prices and gather information for their purchasing decisions but at the same time are likely to face buying risk which is usually associated with online purchases.
Moreover, those interviewees who described themselves as impulsive buyers, shared that they do not feel like spending impulsively any more, as their disposable income has shrunk significantly.
There are a number of in-store marketing mix components, which are recognised to construct an essential buying predisposition.A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. To compare spending and purchasing power of consumer before and during the crisis, for the purpose of identifying the magnitude of impact that the crisis has on consumer spending To compare the behaviour and attitudes of consumers before and after the economic crisis.
Despite consumers’ more prudent buying behaviour, the popularity of shopping as a leisure activity was confirmed by the survey results.
The shopping mall format originated in the US in the mids, and spread worldwide. The financial crisis is having a major effect on economic and social aspects of the UK, the dissertation focuses on the consumer buying behaviour.
THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON CONSUMER BEHAVIOUR By Helen E Perriman, Dr Rooma Roshnee Ramsaran-Fowdar and Dr Priya Baguant. The study was designed to find out the effect of global financial crisis on consumption behaviour of households in Kogi State.
Three research hypotheses guided the study.Download