Business Research Assignment: Customer Buying Behaviour in Online Shopping

Question

Task: Write a critical thinking assignment reviewing ten articles related to critical thinking. Write a report on business research assignment illustrating the relationship between compulsive buying, motives, perceived risks of customers and their behavior intention in the context of online shopping.

Answer

Executive Summary
The research study prepared in this business research assignment aimed at investigating the association or relationship between compulsive buying behaviour and their intentions. In order to understand the buying behaviour of a consumer and what attributes play a role in compulsive buying has been discussed with the help of secondary resources. Since the option of buying products has increased significantly post e-commerce emergence, companies have been using the right strategies to attract and retain consumers. To gain a significant knowledge on the context, the researcher has discussed all the possible areas to understand the aspect thoroughly.

1.0 Aims of the Research Study
The research study aims to investigate and analyse the relationship between compulsive buying behaviour, motives, perceived risks of consumers, and their behaviour intention, in case of online shopping, in the face of the recent pandemic, Covid 19.

2.0 Contribution to the Knowledge and Statement of Significance
The compulsive buying behaviour of customers is an important problem it increases addiction to the unnecessary purchase. The issue has been identified from the 20th century but in the modern digital business world, the intensity of online shopping has been increased. As the attraction towards the new products has been increased, the buying intention of consumer has been developed. Under these circumstances, it can be stated that relationship between compulsive buying motives, perceived risks of customers, and their behaviour intention is needed to be identified for evaluating the effect of compulsive purchase attitudes. Hence, the analysis of consumer buying behaviour is significant to identify whether online shopping is developed as a result of compulsive attitude of customers or not. However, the COVID 19 effect has deteriorated the increasing trend of online shopping remarkably. 

3.0 Literature Review

3.1 Compulsive Buying Behaviour, Motives and Behaviour Intention
As mentioned by Jiaet al., (2018), the compulsive buying behaviour of people is increasing day by day all over the world as a result demonstration effect. It has increased the demand of online shopping of large organisations including Amazon, Rakuten, and so on. Continuing along the same line, Maccarrone?Eaglen and Schofield, (2017) have stated that compulsive buying attitude of customers is increased because of developing attractive products. In this context, Chen and Wang, (2016), have said that the compulsive buying behaviour and motive has been developing day by day for gaining social recognition. This type of buying attitude has been found in recent times among the teenage population. The reason is they want social recognition; they are influenced by demonstration effect and sometimes to cope with stress online shopping has been done by the teenage people. Based on the view of Spearset al., (2016), among various factors, the demonstration effect and social recognition are key elements responsible for the compulsive buying behaviour of consumers. Hence, the overall analysis of consumer buying attitude helps to identify actual motives. The behaviour intention of consumers is to develop the satisfaction level and hence, it can be stated that there is a positive relationship between compulsive buying behaviour and behaviour intention of customers.

3.2 Effect of COVID 19 on Online Shopping
The COVID 19 effect has directly impacted the compulsive purchase of customers throughout the globe and it has deteriorated the profit margin of online shopping organisations. Hence, it is clear that after the corona virus effect, the bulk buying policy of customers has been deteriorated. The COVID effect has damaged the economic development and now the people have reduced the purchase of products (Business Review, 2020). Hence, in this case, it is found that the intention to purchase has been decreased and it has changed the compulsive purchasing attitude of customers. According to the view of Saxena, (2020), buying behaviour intention has not been changed in case of emergency and daily usage products including hand wash, grocery, and so on, after the corona pandemic. However, the sale of fashion products has been decreased after the pandemic and it has decreased the profit performance of online entities. In this context, it can be said that the compulsive buying behaviour of people has been deteriorated to some extent for short term period and in the long run it would be increased.

3.3 Compulsive behaviour and motive of Men and Women Customers
As mentioned by Pastoreet al., (2017), compulsive behaviour has been generally identified in the case of women consumers more than men. This is because they use various fashionable products in daily life. However, Hawset al., (2016), have argued that the compulsive buying attitude is the same in the case of men and women. The difference has been identified in terms of purchasing expensive products. Women have a general tendency to focus more on expensive products as a result of the demonstration effect. However, average male customers’ focuses on the purchase of reasonable products. Hence, it is clear from the overall analysis that men and women both customers have compulsive buying attitudes to develop their social recognition. In this context, Michael, (2019), has stated that the compulsive buying behaviour of women reduces at the time of the menstrual period. Hence, it can be stated that there is a difference in the trend of buying behaviours of men and women. Online shopping performance has been developed due to increase in fashionable products and it has developed the attraction of people to the online shopping. According to the government report in Australia, near about 80% people focus on the online shopping system in Australia and during the year 2021 it would be reached to 85% (Batat, 2019). Hence, it can be stated that the compulsive buying behaviour of people is completely uncontrollable in future and it has positive effect on the development of online shopping. 

3.4 Impact of Compulsive buying behaviour on Online Shopping
Based on the view of Spearset al., (2016), in the current society, basic requirements are not important to the people. The development of social status is an important matter to the people and this is why the compulsive buying behaviour has been developed. In this context, it can be stated that it has deteriorated the quality of lifestyle of people and the sales of online shopping organisations have been increased. However, this has become a trend to society and in the modern competitive world, consumers want to develop their quality of lifestyle based on expensive products. The development of online e-commerce sites has increased the demand of different types of products among people. The digital lifestyle is gradually increasing day by day and currently, online shopping technique is convenient for the people rather than physical shopping. As mentioned by Jiaet al., (2018), compulsive purchasing behaviour is a serious issue in the 21 st century, and isolation of people from the family is the key issue in the case of increasing compulsive buying behaviour of consumers. Continuing in the same vein Michael, (2019), has stated that compulsive buying behaviour has been increased from the competitive attitude of the people. In the future, this attitude would be increased more as the advertisement has become the key platform for developing the attraction of new products among the people.

3.5. Risk in Compulsive buying behaviour
As mentioned by Michael, (2019), addiction and depression are potential risks in the case of compulsive consumer buying behaviour. The reason is under any adverse situation or negative thinking; the compulsive buying attitude is increased. The intensity of this type of risk is gradually increasing and hence, it can be said that there is a positive relationship between perceived risks related to compulsive purchase and behaviour intention. The purchase intention increases risks of addiction and it is harmful to the normal life of consumers.

4.0 Conceptual Framework and Hypotheses Development

Figure 1: Conceptual Framework

(Source: Developed by Author)

Two research hypotheses are considered in the entire study including a null and alternative hypothesis

H0: (Null): There is no significant relationship between compulsive buying behaviour, motives, perceived risks of consumers, and their behaviour intention, in case of online shopping, in the face of the recent pandemic, Covid 19.

H1: (Alternative): There is a significant relationship between compulsive buying behaviour, motives, perceived risks of customers and their behaviour intention, in case of online shopping, in the face of the recent pandemic, Covid 19.

The above hypothesis analysis would be made based on the regression analysis.

5.0 Methodology

5.1 Research Design and Philosophy
According to the opinion of Bairagi and Mousami, (2019), research design can be considered as a set of techniques that have been used in the case of collecting, analysing, and measuring variables mentioned in the research. Research design can be broadly classified into three categories including exploratory research, explanatory design, and descriptive research design. In the current research study, the researcher would consider the exploratory design of research as a hypothesis has been framed for the purpose of analysis. The potential relationship between compulsive buying motives, perceived risks of customers and their behaviour intention would be discussed in the study. 

The research philosophy has been considered as a belief regarding the phenomenon for collecting data and analysing the same accurately. The research philosophy can be classified into three categories including Positivism philosophy, Interpretivism philosophy, and Pragmatism(Pruzan, 2016). In the current study, the researcher would consider the positivism research philosophy as here the social facts would be analysed based on evidence. In the case of positivism study, the role of the researcher is limited to the collection of data and interpretation of the same in an objective way. In the current study, also the researcher would collect data and the same would be analysed based on a hypothesis. Hence, the consideration of positivism research philosophy is justified in this case. 

5.2 Research Approach and Methods
As mentioned by Black, (2018), the research approach is an important part of research activity based on which the objectives of the study can be successfully achieved. The research approach can be classified into two parts including inductive and deductive approach. Furthermore, another approach i.e. abductive approach is also considered in the research study but that is very rare. In the current study, the researcher would follow the deductive approach of research new theory would not be developed in the research. The researcher would conduct the analysis based on previous study of research. 

As depicted by Ros, (2018), the research method can be divided into two types including qualitative and Quantitative research method. Sometimes, qualitative and quantitative both types of research methods are considered to develop the quality of the research. In the current study of research, the researcher would on the mixed research method as qualitative and quantitative both methods would be used in the entire study. The qualitative method would be used for identifying past experience of respondents and a quantitative approach would help identify the actual view of customers regarding compulsive buying behaviour. In the current research, the researcher would consider primary qualitative and quantitative research method. In the case of the quantitative method, the survey process would be considered and questionnaire would be sent to the respondents through online. On the other hand, in the case of qualitative method, the researcher would focus on the interview process.

5.3 Sample Size and Data Collection
The sample size in the current study would be considered 50 and the 50 respondents would be collected from Victoria University area. Teaching and Non-teaching both staff would be considered in the entire study. The researcher would try to consider male and female respondents equally. After collecting the data from the respondents, it would be recorded in the word file and analysis would be made through MS Excel. Graphs, charts, tables and measures of central tendency would be used for analysing the data and interpreting the results. On the other hand, the interview would be conducted to 5 teachers of Victoria University regarding their online shopping behaviour. Respondents have the full right to submit a blank questionnaire if they do not feel easy in case of answering questions. In terms of data collection, it can be said that the researcher would consider only the primary data collection method to conduct the study successfully.

5.4 Research Ethics
The researcher would consider research ethics in the study for ensuring the quality of the research. The Data protection act 1998 would be considered by the researcher in the entire study and reliability would be ensured in the analysis (Ros, 2018). It can be clearly stated that the researcher would collect data from valid sources to conduct the research appropriately. According to the view of Bairagi and Mousami, (2019), ensuring the validity and reliability of research data is an important matter to prove that research has been done in an unbiased way.

5.5 Research Limitations
The entire research study would be made by the researcher based on budget constraints and considering a short time span. This is because the large project would be done by the researcher and this why a moderate level sample size has been considered by the researcher. Furthermore, budget is the key factor in the research and the researcher would try completing the project with a small budget in the best possible way. 

Conclusion
The study discusses about the concept of compulsive buying behaviour and what factors play towards the same. To gain a prospective knowledge, the researcher has planned to investigate the nature through data collection and analysis. To utilise resources wisely, the researcher has asked for voluntary participation of from the university. Due to financial limitations, the researcher believed that it would be efficient.

References
Bairagi, V and Mousami, V. 2019. Research Methodology : A Practical and Scientific Approach. Milton: CRC Press LLC

Batat, W., 2019. Experiential Marketing: Consumer Behavior, Customer Experience and The 7Es. Routledge.

Black, K., 2018. Business Analytics and Statistics, 1st Edition. Melbourne: Wiley

Business Review, C. 2020. Coronavirus and Business: The Insights You Need from Harvard Business Review ^ 10440, HBR Store. Available at: https://store.hbr.org/product/coronavirus-and-business-the-insights-you-need-from-harvard-business-review/10440 (Accessed: 18 June 2020).

Chen, Y.F. and Wang, R.Y., 2016. Are humans rational? Exploring factors influencing impulse buying intention and continuous impulse buying intention. Journal of Consumer Behaviour, 15(2), pp.186-197.

Haws, K., Davis, S. and Dholakia, U., 2016. Salad= success and fries= failure? Conceptualizing and assessing self?control outcome measures in food decision?making research. Business research assignment Journal of Consumer Behaviour, 15(2), pp.99-116.

Jia, H., Zhou, S. and Allaway, A.W., 2018. Understanding the evolution of consumer psychology research: A bibliometric and network analysis. Journal of Consumer Behaviour, 17(5), pp.491-502.

Maccarrone?Eaglen, A. and Schofield, P., 2017. Compulsive buying behavior: Re?evaluating its dimensions and screening. Journal of Consumer Behaviour, 16(5), pp.463-473.

Michael, R.S., 2019. Consumer behavior: Buying, Having, and Being Plus Pearson Mylab Marketing with Pearson Etext,... Global Edition. Pearson education limited.

Pastore, C.M.D.A., Francisco?Maffezzolli, E.C., da Silva, W.V. and Baptista, P.D.P., 2017. Pre?menstrual period: Do women really consume more?. Journal of Consumer Behaviour, 16(1), pp.42-50.

Pruzan, P., 2016. Research methodology : the aims, practices and ethics of science. Cham: Springer

Ros, F., 2018. Sampling techniques for supervised or unsupervised tasks. Cham, Switzerland: Springer

Saxena, S.K. ed., 2020. Coronavirus Disease 2019 (COVID-19): Epidemiology, Pathogenesis, Diagnosis, and Therapeutics. Springer Nature.

Spears, N., Amos, C. and Yazdanparast, A., 2016. Seeking consistency between planning orientation and situational purchase mindset. Journal of Consumer Behaviour, 15(1), pp.28-37.