Impact Of Consumer Buying Behaviour On Organizational Performance: Case Study Of Woolworths

Background of the study

In the recent years, it can be seen that there has been changes in the work place due to the effect of economy on a global manner. This has increased the organizational development to a great extent that has resulted in developing the skills of the employees within the business. This has also resulted in increasing the level of productivity within the organization through better level of performance among the employees. The organizational management pays more attention towards the needs of the employees so that they behaviour could be studied within the work place. It has also resulted in studying the complex behaviours of the employees within the organization so that the learning techniques can be developed that will help in meeting the requirements of the organization (Perez, del Mar Garcia de los Salmones & Rodriguez del Bosque, 2013).

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The values and beliefs of the employees needs to be studied by the management so that it can help in understanding the complexity of the employee behaviour that can result in better levels of production. Organizational performance can be stated as the system that helps in achieving the objectives that are present in the organization in a proper manner. This approach is dynamic in nature that needs to be interpreted so that it can result in a positive outcome within the business (Manning, 2013).

Woolworths started its journey in 1924 at the Imperial Arcade that was present in Australia and the company prospered due to the low pricing technique that enabled them in attracting more number of customers. It became a chain of stores when the second shop was opened on 1927 in Brisbane due to the high demands among the customers to avail the services provided by the company. This resulted in the growth of the company heavily due to the opening up of many stores at different parts of Australia. The company has been performing at its best with respect to the services that are provided to the customers. This has resulted in having a better relationship with the customers and the company tries to minimize the negative feedbacks that are being provided by the customers. It has also resulted in gaining the trust of the customers to a great extent.

The major issue within the company is that the focus is mainly given on the customers and the employees are feeling neglected within the organization, which has resulted in the lack of motivation. This is due to the fact that the supervisors are facing difficulty in understanding the complex behaviour of the junior level employees. Another issue is that the management of the team is not being done in a proper manner, which has resulted in lack of productivity and meeting the objectives that are being set to them within the organization (Maiyaki, 2013). The issue with communication within the teams and the management has resulted in increasing the conflict level of team employees that is also affecting them on a personal level. The issues of the team with that of the employees has to be solved at a quicker rate so that it can help in increasing the level of production in the competitive market of Australia. It may also affect the corporate culture of the organization in a negative manner and the organizational performance may decrease to a great extent (Tingchi Liu et al., 2013).

Problem statement

Recently, the company is in a dire need to increase their level of performance so that more number of customers can be attracted towards the stores. This will also result in increasing the level of sales and the profits levels will also increase to a great extent. The effective management of the employees will result in increasing the level of sales of the organization that is being inefficiently at the present time.

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The research will be based on the following objectives:

  • To examine the concept of consumer buying behaviour
  • To understand the relationship that is present between organizational performance and consumer buying behaviour
  • To make recommendations regarding the strategies that will help in influencing the consumer buying behaviour for the organization

The research will help in addressing the following questions:

  1. What is the concept of consumer buying behaviour
  2. What is the connection between the organizational performance and the consumer buying behaviour?
  3. What are the recommendations that can be suggested to the company to influence them towards consumer buying behaviour?

The research that will be conducted will be based on the following hypothesis:

H0– There is no connection between the organizational performance and the consumer buying behaviour

H1– There is no connection between the organizational performance and the consumer buying behaviour

The research will help in finding out the outcomes that are related to the organizational performance and the consumer buying behaviour. The consumers will be attracted towards the company when the employees are motivated, which will help them in guiding the customers towards the best products that are present and provide them with efficient level of services. The research will try to establish a positive relationship between the organizational performance and the buying behaviour of the consumers with respect to the chosen organization that is Woolworths.

Conceptual Framework

Conceptual Framework

It can be defined as the products and the services that are preferred by the consumers, which are purchased by them so that their wants can be satisfied. The characteristic of the customers towards the products and services are dependable on different factors that help them in being influenced towards the goods that they want to purchase. In the initial phase, the customers will analyse the product so that the important information can be collected regarding the products and services that they want to purchase. The maximum utility goods and services will be purchased by the customers at a competitive price so that it can help them in gaining maximum satisfaction (Sharma, 2014).

The behaviour of the consumers help in understanding the various motives that they have with respect to the goods and services that they want to purchase. It is also based on the principle that the goods that deliver the maximum level of satisfaction towards the individual will influence the consumers towards the purchase of the goods and services. The knowledge regarding the products and services among the consumers will help them in purchasing the product.  This will result in achieving the maximum level of satisfaction with respect to the products that they are purchasing from the market (Khare, 2015).

Research objectives

Psychological factors

The factor of motivation helps the consumers in taking a positive decision with respect to the products or services that they are willing to purchase so that it can help in satisfying their needs and demands. The motivational factor also helps the consumers in achieving the target so that it can help them in achieving their personal needs. It is an internal factor that helps in purchasing the goods and services from the organization (Oliver, 2014).

Social factors

The social factors also act as an influence for the consumers in the society where they are staying. The status and the presence in the society also influence the buying behaviour of the customers to a great extent. The family also influences with respect to the attitudes and the personality that is present among the consumers, which also reflects on their buying pattern.

The reference groups that are present in the society also provides information regarding the products that they have purchased to the potential customers so that they get influenced and purchase it. This also helps in meeting the level of satisfaction and demands of the customers, as their behaviour and attitudes can be influenced in an indirect or direct manner (Raheem, Vishnu & Ahmed, 2014).

The status and role of the consumers in the society also affects their decision regarding the products or services that they are willing to purchase from the market. The higher section in the society will purchase the products that are highly priced, as they can afford to spend the amount on the products whereas the lower section may not afford the same product and may look for an alternatives at a cheaper cost (Sharma, 2014).

Cultural factors

The behaviour of the customers are also affected duet to the beliefs and the set of values that they have regarding their particular culture. These buying patterns are a result of the factor of socialization that the consumers have in their family as well as within the society where they are residing. The nationality and the religious sects to which the consumers belong also affect their decision in purchasing the products and services that are available in the market. The company has to understand the different cultures where they are operating so that it can help in satisfying the needs and demands of the consumers (Maiyaki, 2013).

The society where the consumers are residing also affect their decisions with respect to the products or the services that they want to purchase from the market. This can be judged through the income levels, occupation of the consumers and the lifestyle in which they are living. The buying behaviour of the consumers change in this respect, as it gets divided in to the higher, middle and lower section of people. The purchasing pattern changes in relation to the consumers who belong to different classes in the society (Tingchi Liu et al., 2013).

Research questions

Economic factors

The amount that is earned by the consumers have a great role in influencing their decision in purchasing the product or the services. The income level of the consumers result in motivating the consumers in purchasing the products from the market. The high level of disposable income results in increasing the expenditure level as well. It also allows the consumers in dividing the amount between the luxurious and the durable goods. Another factor that needs to be considered is the family income as well, as the aggregate income helps in understanding the purchase pattern of the consumers (Manning, 2013).

The performance of the organization is deeply affected through the nature of the leadership that is being followed. The leadership style also helps in assessing whether the objectives that have been set in the organization has been followed or not. The leaders play an important role in communicating with the employees so that they can understand the level of skill that is needs to work within the business. This helps the company to run in an organized manner. The leaders need to delegate the responsibilities of the employees so that they can understand the position for which they have been hired (Ramsay, Wagner & Kelly, 2013).

There are external factors as well such as the labour unions that are associated with the organization. They affect in a positive or in a negative manner with respect to the functioning of the organization. This is due to the fact that when their demands and wants are not met, they agitate in the organization, which leads to a chaotic situation. The taxes that the company needs to pay also affect their level of performance in the market along with the other policies and procedures that are laid down by the government (Rani, 2014).

This research will be done using the different tools that are present so that it can help in providing a positive outcome. The research will be based on the positivism philosophy, which will enable the researcher in collecting the relevant information according to the research topic. This will help in aligning the study with the topic of the research. The approach of the research will be deductive in nature so that the information can be deduced with respect to the topic of the research. It will also help the research to be completed within the stipulated time (Mackey & Gass, 2015). The mixed method will be selected that will help in collecting the information from the secondary sources with respect to organizational performance and the primary sources will help in determining the buying behaviour of the consumers. The secondary sources will enable the research in conducting the review of literature as well in a proper manner. The exploratory type of research design will be taken up for the study so that it can help in analysing the variables that has been taken up and proper information can be provided with respect to the research questions (Taylor, Bogdan & DeVault, 2015).

Research hypothesis

The primary data that will be collected for the research will be done by distributing survey questionnaire among 100 customers who goes to Woolworths for purchasing the products and services and have a proper knowledge regarding the services that are provided by the organization (Glesne, 2015). The responses will be collected by the researcher through the random sampling method so that it can provide opportunity to all the customers to take part in the survey in an equal manner. The collection of the data will be done in two ways where the quantitative data will be done through the surveys and the qualitative data will be gathered through the secondary sources such as journals articles and magazines. This will help in conducting the literature review in a proper manner and provide better insights regarding the topic of the research (Brinkmann, 2014).

The responses that will be gathered through the survey will be evaluated through the SPSS tool so that the data can be presented in a statistical manner. The data will then be evaluated through the Chi-Square Test of Pearson that will help in establishing whether there is a relationship between the dependent and the independent variables. This will allow the analysis of the research to be done in a statistical manner so that the last chapter can be based on the findings and linking it with the objectives that has been taken up for the research (Mackey & Gass, 2015). The researcher will also follow the rules and regulations that are present in the Data Protection Act breaching which may result in the researcher being penalized. The respondents will be not be given any external force that may result in changing the nature of the survey according to the wish of the researcher. This can influence the study and may result in a pre-determined analysis. This may also affect the quality of the research in an overall manner (Flick, 2015).

The study will be divided in to 5 chapters where chapter 1 will be the introduction to the topic along with the objectives and questions taken up for the research. Chapter 2 will consist of the literature review where secondary sources such as journal articles, magazines and websites will be considered. Chapter 3 will consist of the methodology part where proper justification will be provided for the methods that have been chosen to carry out the business research. Chapter 4 will contain the data analysis section that will be conducted through the survey followed by chapter 5 where the conclusion part will be given. The analysis will be linked with the objectives so that it can help in finding out the outcomes of the research.

Particulars

Amount ($)

Travel

200

Materials

250

Printing

175

Total

625

Activity

Months

1st Week

2nd Week

3rd Week

4th Week

5th Week

6th Week

7th Week

Finalizing the topic

ü 

Collecting data from  secondary sources

ü 

ü 

Forming a layout of the research work

ü 

Conducting  Literature review

ü 

ü 

ü 

Forming the research plan

ü 

ü 

Selecting  appropriate research methodologies

ü 

ü 

Concluding the Study

ü 

Designing a  rough draft

ü 

ü 

Submitting the Final Work

ü 

ü

 

References

Brinkmann, S. (2014). Interview. In Encyclopedia of Critical Psychology (pp. 1008-1010). Springer New York.

Flick, U. (2015). Introducing research methodology: A beginner’s guide to doing a research project. Sage.

Glesne, C. (2015). Becoming qualitative researchers: An introduction. Pearson.

Khare, A. (2015). Antecedents to green buying behaviour: a study on consumers in an emerging economy. Marketing Intelligence & Planning, 33(3), 309-329.

Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design. Routledge.

Maiyaki, A. A. (2013). Moderating effect of individualism/collectivism on the association between service quality, corporate reputation, perceived value and consumer behavioural intention. Journal of Marketing & Management, 4(1).

Manning, L. (2013). Corporate and consumer social responsibility in the food supply chain. British Food Journal, 115(1), 9-29.

Oliver, R. L. (2014). Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral Perspective on the Consumer. Routledge.

Pérez, A., del Mar García de los Salmones, M., & Rodríguez del Bosque, I. (2013). The effect of corporate associations on consumer behaviour. European Journal of Marketing, 47(1/2), 218-238.

Raheem, A. R., Vishnu, P., & Ahmed, A. M. (2014). Impact of product packaging on consumer’s buying behavior. European journal of scientific research, 122(2), 125-134.

Ramsay, J., Wagner, B., & Kelly, S. (2013). Purchase offering quality: The effects of buyer behaviour on organizational supplying behaviour. International Journal of Operations & Production Management, 33(10), 1260-1282.

Rani, P. (2014). Factors influencing consumer behaviour. International journal of current research and academic review, 2(9), 52-61.

Sharma, M. K. (2014). The impact on consumer buying behaviour: Cognitive dissonance. Global Journal of Finance and Management, 6(9), 833-840.

Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Tingchi Liu, M., Brock, J. L., Cheng Shi, G., Chu, R., & Tseng, T. H. (2013). Perceived benefits, perceived risk, and trust: Influences on consumers’ group buying behaviour. Asia Pacific Journal of Marketing and Logistics, 25(2), 225-248.

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