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Importance Of Consumer Behaviour Analysis In International Establishment Of The Tesco Clubcard In Nigeria. A Comparative Case Study of Effectiveness of Tesco Clubcard in the UK and Nigeria
The digital age has brought significant changes to the economy. It has provided a new platform for buying and selling products/services online. Today, many people decide to buy from an online store because the online store offers various benefits over traditional marketing. Buying in an online store saves time and is convenient for buyers. According to Sari et al. (2020), it is becoming increasingly difficult for consumers to go to physical stores and malls due to lack of time and constant lifestyle changes. Online market presence solved this problem because shoppers can shop from the comfort and convenience of their home. In addition, the online store allows shoppers to track the purchase process using internet instrumentations. Buyers can quickly get reviews and tips that are often not available in online stores.
Millennial embraces creativity applies it regardless of any sector – shows Generation Y creating freedom of speech, creating innovation, and embracing it. Inactive practices were abandoned, and unrelated traditions were rejected. This view has been disappointing for millennial, but it does not mean that they are pessimistic (Ogamba, 2019). On the contrary, because of the self-confidence that comes with technological independence, millennials are optimistic about their ability to bring about positive change in society, whether they are an institution or not. If they are part of an organisation, they will remain the case if it meets modern requirements, transparency, and openness (Sari et al., 2020).
Millennials expect and demand immediate access to all the information they need or want, making them impatient consumers. This is an explicit recognition of transparency, whether work-related or purchasing (Hall et al., 2017). The instant flow of information of every detail of operation is required to gain Millennial loyalty that might be lost if transparency is not sufficiently given. Also, Millennial thrive on realising the direct point of where they are in any relationship (Ogamba, 2019).
The marketer must ensure that the customer buys and sells the product reasonably and efficiently and is disadvantaged. To persuade customers to buy a product or service, advertisers try to research, communicate, and analyse the sales behaviour of the product or service. Millennial customer marketing psychology results from analysing customers’ opinions, observations, perceptions, interests and responses about the products or services being sold (Hall et al., 2017).
An essential contribution to understanding the values and behaviour of a generation, including the millennial generation, which is a crucial factor influencing procurement decisions, is what history has revealed in one generation: the political and economic climate, social and educational conditions, multiculturalism, environmental conditions and significant historical events and movements in a specific time and region (Dada et al., 2021). Therefore, a theoretical framework is introduced to define the scope of the theological theory, narrow the study’s focus, and adequately explain complex problems (GODWIN et al., 2019).
Although to target the international market, buying behaviour is still a major challenge for business. Acquiring it can have a more significant impact on the business and benefit more from creating more different moments in the market. These factors are essential for the success of new companies in the market they want to operate in (Dada et al., 2021). When opening a repository or growing a business, it is essential first to understand the customer profile. Some customers show difficulty with certain types of products while others. For example, some customers in Nigeria and the UK consider essential essentials, while others consider them expendable. Customers have different choices from everyone else because everyone chooses what they see (GODWIN et al., 2019). Thus, to decide the place that will guarantee the consumer better access to its products and services; decide the optimal price for your product or service; find the most efficient method of promotion to attract consumers; understand the main motivations and factors behind your consumer’s purchase decision. Due to the lack of market awareness, brands, products, and services that do not meet consumers’ needs and desires can be rejected because of social networks’ influence.
The millennials’ behaviour in the purchase decision is a metaphysical issue to design a marketing strategy for a particular product. It is imperative to be successful, but it is not easy to define correctly. There are many factors and variables to take into account. Also, due to the uncertain nature, millennials are unpredictable when faced with a novelty; they can react with rejection or distrust. While expanding business from the UK to Nigeria, the retail sector must evaluate how millennials customers are influenced. They can help with many external and internal factors that affect them when deciding to buy a product. External factors which suround us everyyyday are culture, social class, references, family and lifestyle (Oumlil et al., 2019). These factors influence the tastes and the type of non-generic needs that the people perceive. In addition, it has been found that millennial, especially in the consumer sector, expect bonuses and benefits such as promotional materials, including free samples, discounts, additional costs, free courses, and other free activities offered to them as customers. When brands have met social and economic needs for thousands of years, a loyal bond emerges. Therefore, by evaluating the needs and preferences of Millennials in this study, the strategies will be recommended to Tesco management to expand their club card packages and services (Oumlil et al., 2019).
Aims and Objectives.
The proposed research aims to study the behaviour of millennials consumers of Nigeria and the UK by evaluating needs and preferences regarding the services offered by Tesco in Clubcard.
The following are objectives that need to be achieved:
- To analyse the behaviour of the millennial consumers and compare their perspective and pattern that define their needs and preferences in Nigeria and the UK.
- To examine the internal factors (attitude, personality, motivation, and learning) and external factors (culture, social class, references, family and lifestyle) that shape the behaviour of the millennial consumers in Nigeria and the UK.
- To recommend the strategies to the management of Tesco willing to expand their club card packages and services to the millennial in Nigeria.
The following are the research questions that need to be answered:
- What are the patterns that define the needs and preferences of the millennial customers in Nigeria and the UK, particularly considering the satisfaction and retention strategies?
- How internal factors (attitude, personality, motivation, and learning) and external factors (culture, social class, references, family and lifestyle) shape the behaviour patterns of millennial consumers in Nigeria and the UK?
- How can Clubcard related strategies influence the millennial consumers in Nigeria?
According to Lee et al (2019), due to modifications of the digital age, there are many economic alterations. The digital age has brought significant changes to the economy. This modification had provided a new platform for customers to purchase and sell their products through online search engines and online sources. Many individuals in this era are determined to purchase their services and products from online sources as there are various benefits to online marketing (Lee et al. (, 2019). Because due to online purchase and sell opportunities, the time of the individuals is saved and is, although appropriate for the customers who have busy schedules. Currently, millennials customers have transformed their relativity to the products, brands, services and other objects they utilise due to the reason that they are existing in an era where there is a worth and value of creativity, innovation, gathering a lot of information and desires to associate and link with numerous novel companies, organisations and their products. For these reasons, marketing sectors such as the Tesco Industry are looking forward to expanding and extending their commercial industry from the UK to Nigeria. However, in this country, they are not aware and acquainted with the customers’ behaviours, demands, and preferences regarding the products and services (Kanakaratne et al., 2020).
Even they are not informed about the engagement of customers towards their products. For customers’ engagement in the products, more excellent dexterity must inform the millennial customers, their behaviours, and their preferences due to societal network evolution (Grag et al., 2020). Furthermore, the preferences, requirements and demands of the UK customers may not be identical to the requirements of the customers of Nigeria. Following these points, this research is proposed to focus on the preferences and behaviours of the customers of Nigeria concerning the products of the Tesco industry. The research would also highlight the internal and external factors that play a significant role in determining customer’s behaviour. For the literature review and data analysis, data would be collected through secondary resources such as previous articles, journals, and papers. The information will be assessed and evaluated based on the retail sector of the UK and Nigeria. These papers and articles will support the proposed research to understand millennials’ behavioural patterns in the UK and Nigeria (Grag et al., 2020).
Materials and Methodologies
The following research is based on the customers and consumers’ behaviours and the preferences that shape their behaviour in club card services offered by the Tesco industry in the UK (Alam, S. and Raut-Roy, 2019). This research will utilise Saunders research Onion method, where Saunders Research onion illustrated the stages involved in developing a research work and was developed by Saunders et al., (2007). In other words, the onion layers give a more detailed description of the stages of a research process. It provides an effective progression through which a research methodology can be designed. Its usefulness lies in its adaptability for almost any type of research methodology and can be used in various contexts (Alam and Raut-Roy, 2019).
The reason for incorporating this approach is that the research is based on the behaviour of the customers and consumers according to their demands and their preferences and the external and internal factors that shape their behaviour. Therefore, for this study, a qualitative approach is suitable (Ramanathan et al, 2019). Moreover, the research method used for the proposed research is interpretivism, in which the research interprets the elements of the investigation. The rationale for utilising interpretivism is due to its association with the qualitative research approach. The other research method that will be incorporated for the collection of data would be inductive. The rationale for selecting the inductive method in this study is that this methodology is used when researchers have to work on present and existing literature and theories. Our data collection is secondary, so for this, an inductive methodology would be used. Subsequently, the interpretation of the inductive research approach will provide more compact and thorough results (Ramanathan et al., 2019).
For the conduction of research and searching of literature, some keywords are required that will exactly find out the desired results. So, for this research, the keywords such as “behaviour of the millennials customers in the UK and Nigeria”, “patterns describe the requirements and predilections of the millennials customers”, and “internal and external factors that form behaviour of the millennial consumers” will be examined on the records and search engine tools such as like Google Scholar, EBSCO, Emerald, and Academia. These databases will be used to provide detailed and academically sound research papers (Toklu, 2017). After collecting data from different sources, its analysis is performed to approach and conclude the results. The content analysis technique will be used (Karunaratna and Kumara, 2018). The investigators use this technique to determine the meanings, relations, and concepts of the collected qualitative data. This technique will allow the proposed research to be in a position where the designed research questions can be answered accordingly (Karunaratna and Kumara, 2018).
Overview of Dissertation
Tesco is a British multinational grocery and general merchandise retailer headquartered in the United Kingdom. Measured by its profits, Tesco is the third largest retailer in the world. Measured by its revenues, Tesco is the second-largest retailer in the world. In addition, it has a lot of stores across Asia and Europe (Bilińska-Reformat and Reformat, 2017). The leader of the grocery market is in the the United Kingdom. Today the demands of consumers and customers have modified due to the transformation of the digital age. Based on these points, this dissertation would comprise five chapters. Chapter one would be comprised of a brief introduction and background of the study about the Tesco industry and the demands of millennials during the digital age. As the Tesco industry is expanding its business from the UK to Nigeria, the introduction will briefly account for the challenges (Bilińska-Reformat and Reformat, 2017).
Then after this, the aims, objectives, research questions and rationale of the research would be described. The study would be conducted to observe the customers of Nigeria and the UK and their preferences according to the services provided by the Tesco Industry in Clubcard. The external and internal factors that define the customers’ behaviour in Nigeria and the UK and the strategies that Tesco Industry requires to extend its club card service in Nigeria (Walsh and McHugh, 2020). The second chapter would comprise a Literature review in which different researchers performed by the scholars in this area would be described in detail. In chapter three, methodologies and materials would be described that secondary data collection from other research would be used in this perspective. The fourth chapter would be comprised of discussion about the research findings of the Tesco industry regarding the behaviours of customers and millennials in club card services. The last fifth chapter would describe the conclusion of the investigation in which the overall performed research would be summarised (Walsh and McHugh, 2020).[/vc_column_text][/vc_column][/vc_row]