Factors Influencing Online Buying Behaviour Through Digital Payment In The UK Retail Industry Essay.

Research Objectives

Title: Investigating the impact of Digital Payment usage on consumer impulsive buying behaviour – A study on the UK Retail Industry

Research aim 

The main aim of the paper is to find out the influence and impact of certain factors that are responsible for the online buying behaviour of the consumers. The study will mainly talk about the digital payment and it’s to identify the factors and understand the consumer behaviour. Several resources will be researched in order to understand the influencing factors, challenges, good and helpful practices, main role of the stakeholders and lastly the method which will be used for managing the main impact of digital payment on the consumer and their behaviour.        

Even though there are several Digital Payment services, the sales volume in the retail industry is not enhanced to a great extent. Therefore, there is a gap in digital payment services and customer impulsive buying behaviour, which will be analysed further.

The result from the research can be helpful for the retail giants of the UK such as Tesco or Sainsbury, to understand the importance of digital payment services as well as the process to manage all the buying behaviour of the customers of the UK as well.  

Research objectives

1. To identify the factors that influences the impact of Digital Payment on consumer impulsive buying behaviour.
2. To investigate the challenges in managing the impact of Digital Payment on consumer impulsive buying behaviour.
3. To examine the good practices in managing the impact of Digital Payment on consumer impulsive buying behaviour.
4. To evaluate the role of key stakeholders in managing the impact of Digital Payment on consumer impulsive buying behaviour.
5. To recommend actions to successfully manage the impact of Digital Payment on consumer impulsive buying behaviour.

What are the factors that influence the use of Digital Payment impact on consumer impulsive buying behaviour?

1. What are the challenges in managing the use of Digital Payment impact on consumer impulsive buying behaviour?
2. What are the good practices in managing the impact of Digital Payment on consumer impulsive buying behaviour?
3. What is the role of key stakeholders in managing the impact of Digital Payment on consumer impulsive buying behaviour?
4. What are the recommended actions to successfully manage the impact of Digital Payment on consumer impulsive buying behaviour?

Research problems highlighted that there is a gap in sales volume even after so many digital payment services. Therefore in this study specifically the factors that would be necessary for enhancing sales volume through using digital payment services will be analysed, where specifically impulsive buying behaviour will be taken into concern for the retail industry in the UK.

Factors

In recent times, due to the rise of emerging trends of online shopping, the customers are leaning more towards the online payment system using digital payment methods. This is not only helping them in a faster process but also helping in reducing the time and cost effectiveness as well (Jain, 2021). Although the online payment method uses digital platforms, the customers are getting affected by the impulsive buying process and often spend a lot of monetary resources for the repeated buying.     

According to the authors, Halim, Januardin and Hebrard (2020) the compulsive buying are mainly influenced by the internal factors such as age and gender and for the external factors such as type of payment method, media and social factors, trust for the retails industries.

Challenges

The high rate of growth of the impulsive buying through the digital copayment is facing certain problems. Authors Bashar, Singh and Pathak (2022) stated that consumers put a lot of trust in online shopping from the retail industries of the UK , which is still a challenge for the marketers. The population requires to be assured about the transparency of the digital payment method, the security for the shared data of the consumers, the quality of all the products and lastly the timing for the delivery. For the retail industries such as TESCO or sainsbury, it is very much challenging to satisfy the customers and cope with the impulsive buying process for the goods. Secondly, it is necessary for the companies to make an increase in physical evidence instead of non-ability to touch or feel products which can put an effect on the shopping experiences (Lim, Lee and Kim, 2017). Lastly, the unawareness of the online shopping and digital payment process in the rural area also needs to be increased at times.  

Factors Influencing Digital Payment Impact on Consumer Impulsive Buying Behaviour

Good practices

Digital wallet technology provides a very good service for the quick payment options. The net banking or e-wallet through the help of the QR code or UPI based payment. During the time of Covid-19, the contactless services have been effective by the help of E-wallet and digital payment. The concept of digital transactions is free from all kinds of physical contact between people. The retail industries of UK were able to practise contactless payment in order to help the population to have a safe environment for the shopping options (Auer, Cornelli and Frost, 2020). The current digital payment technology has been effective for the consumers to reduce the time for shopping, fast speed for transfer and the utmost ease for the online cashless payments.  

According to Ramli and Hamzah, (2021) the good practices of e-wallet or digital wallet techniques for the shopping has been beneficial to seek the attention of the customers. For example, the rewards or gift vouchers for the purchase in retail industries using the digital payment platforms or e-wallets if the retails outlets. On the other hand the authors have also stated how the rewards process is affecting the habit of the online purchase by using the digital payment methods and spoil the behaviour for the impulsive purchase from the online retails.

Stakeholders

For the entire process of the digital payment, impulsive buying behaviour of the consumers it can be understood that the retail industries and the consumers are the main stakeholders. They are the reason behind the impulsive buying and cashless payments option (Xiang et al., 2017). The retail industries of UK, Tesco or Sainsbury or similar to these retail companies are responsible for the digital technology and digital payment process which however spoiled the consumer behaviour for the impulsive buying. Authors Ramli and Hamzah, (2021) determined the other stakeholder such as government, financial institutions which are related to the process as they also gain the economic profit from the impulsive buying and huge payments.   

All the consumers who are into the impulsive buying are somewhat influenced by the fellow consumers who are responsible by posting updates about the offers or the services in the retail industry (Hou, Hsueh and Zhang, 2021). Above all the advantages of digital payment is also increasing the rate of impulsive buying as it is much more convenient than visiting the store physically in order to shop for the essentials. However, to manage all these it can be recommended to keep a track on the spent money and use a cash system as much as possible to avoid spending a lot on the unessential (Hou and Elliott, 2021). In this way the bad consequences about the financial statement can be mitigated.      

Research design

To conduct the research, it is necessary to determine the right kind of research design which will be helpful in proceeding with the research. For this particular research the Experimental research design will be chosen which will be beneficial in understanding the impact of digital payment on consumer habits and impulsive buying.

Influence of E-wallets and Digital Payment on Consumer Behaviour

Research philosophies

To obtain this certain kind of research based on the impact of digital payment on the consumer behaviour and impulsive buying in the UK retail industry, the Positivism research philosophy will be better for the researchers (Park, Konge and Artino, 2020). This research will be obtained by the help of qualitative research, so the limited data collection and statistical approach for the interpretation of the research will be helpful in concluding the entire research topic.   

Research approaches

For this particular paper on the research, the deductive approach will be obtained for the betterment in the result (Pandey, 2019). In this approach, the researchers will be able to conduct statistical scientific investigation which will be helpful in gaining the insight about the research objectives and the hypothesis which shall emerge from the theories. Deductive approaches will be beneficial for the researchers to test the existing theories that are underlying the research topic to understand the impact of digital payment in modern times on impulsive buying (Marais-Potgieter and Thatcher, 2021).      

The research will be following the survey research strategies in order to collect all the data from the selected respondents (Leijten, Weisz and Gardner, 2021). The survey strategy always includes all kinds of methods related to the participants, collection of data and various scientific approaches such as statistics in order to obtain the result from raw data.   

To conduct the research, only one method will be followed to gain the expected result or to understand the topic for the deep research. The mono method comprises the concept of using only one method in the research in order to obtain the desired result for the better understanding about the topic and find out the relevance for the future scopes (Harrison, Reilly and Creswell, 2020). Here for this particular research the quantitative process will be used so the research will follow the mono method.  

Time horizons

Every single researcher requires a particular set of time span in order to conduct and complete the research. There are two particular time horizons present in the research fields, one is longitudinal and the other one is cross sectional. For this researchers will be obtaining the longitudinal time horizon as it will take months to analyse and solve the data. A gantt chart will be followed to complete each of the steps.   

The data sampling is one of the most necessary processes for quantitative research which helps in gaining the statistical review of the entire research question in order to make a conclusion and obtain the research from it (researchgate.net. 2022). A set of questionnaires with 15 questions will be set for the respondents in order to receive their responses about digital payment, impulsive buying and the other factors related to it to understand the impact of the same along with the factors, challenges, good practices and others which are already mentioned in the literature review section.  

For this particular paper, 100-120 respondents will be chosen from different retail outlets in the UK. The main aim will be to get a minimum number of 80 responses for the better understanding about the research and its result.

Challenges Faced in Managing Digital Payment and Impulsive Buying in the Retail Industry

As for the categories of the data sampling a demographic pattern will be followed. Respondents will be chosen from both the urban and rural areas in the UK with the age group 18-40 years. These respondents will be divided based on freelancers, students from both part time and full time courses and the employees in the UK.      

At the end of this chapter, it can be concluded that the research will be following certain approaches or time horizon or data sampling process which will be beneficial for the researchers to process the data and work on it for the desired outcome to understand the impact of digital payment on the consumer behaviour for the impulsive buying.

Research ethics are the most important part for a particular research which helps in providing all kinds of rules and guidelines that shall be followed or have been followed during the research work, by the researchers (eric.ed.gov. 2022). On the other hand the research ethics helps in educating and monitoring all the scientists and researchers for the higher ethical standards. The followings are the research ethics that will be helpful for the research to maintain all the ethics to enrich the study for all the entities that are related to it:

1. Honesty: from the collected data to the analysed one, each one of the data will be presented with utmost honesty and transparency. No single unit will be falsified during the test which might cause harm to the research.
2. Carefulness: all kinds of carelessness about handling data and critical analysis of the same will be avoided during the research (researchgate.net. 2022). This will help with keeping good records for the research activities.
3. Openness: all the data, ideas, resources and the used theories will be opened to the audiences with utmost transparency in order to help them with the criticism about the work as well as come up with the new ideas for the same.       

Conclusion

The research proposal is about the impact of digital payment processes in the retail industry of the UK in order to understand the consumer behaviour and the impulsive buying of the consumers. The advantages such as data security, convenient to carry around the e-wallets, maintaining the physical distancing various kinds and range of discounts about the purchases and lastly the seamless transactions makes the life of the customers a lot better and convenient in this modern era. However, the impulsive buying behaviour is affecting the customers both financially and socially which is resulting in trouble in monetary resources as well. After the entire discussion, it can be concluded that the research will be helpful for the researchers to have a deep analysis about the factors and other components that are responsible for the impulsive and digital payment process. The research will be following all the mentioned strategies and methods in order to obtain the right kind of result. The researchers will be maintaining all the ethics as well to follow transparency of the research.        

Reference lists 

Jain, T., 2021. Factor Affecting Impulse Buying Behavior. International Journal of Computer Science & Management Studies, 42(1), pp.4-6.

Bashar, A., Singh, S. and Pathak, V.K., 2022. A bibliometric review of online impulse buying behaviour. Int. J. Electronic Business, 17(2).

Lim, S.H., Lee, S. and Kim, D.J., 2017. Is online consumers’ impulsive buying beneficial for e-commerce companies? An empirical investigation of online consumers’ past impulsive buying behaviors. Information Systems Management, 34(1), pp.85-100.

Auer, R., Cornelli, G. and Frost, J., 2020. Covid-19, cash, and the future of payments (No. 3). Bank for International Settlements.

Ramli, F.A.A. and Hamzah, M.I., 2021. Mobile payment and e-wallet adoption in emerging economies: A systematic literature review. Journal of Emerging Economies and Islamic Research, 9(2), pp.1-39.

Xiang, L., Zheng, X., Lee, M.K. and Zhao, D., 2017. Exploring consumers’ impulse buying behavior on social commerce platform: The role of parasocial interaction. International journal of information management, 36(3), pp.333-347.

Hou, L., Hsueh, S.C. and Zhang, S., 2021. Digital payments and households’ consumption: A mental accounting interpretation. Emerging Markets Finance and Trade, 57(7), pp.2079-2093

Hou, J. and Elliott, K., 2021. Mobile shopping intensity: Consumer demographics and motivations. Journal of Retailing and Consumer Services, 63, p.102741.

Xu, H., Zhang, K.Z. and Zhao, S.J., 2020. A dual systems model of online impulse buying. Industrial Management & Data Systems.

Park, Y.S., Konge, L. and Artino, A.R., 2020. The positivism paradigm of research. Academic Medicine, 95(5), pp.690-694.

Pandey, J., 2019. Deductive approach to content analysis. In Qualitative techniques for workplace data analysis (pp. 145-169). IGI Global.

Marais-Potgieter, A. and Thatcher, A., 2021. Using a Deductive Approach to Develop a Picture Elicitation Technique to Explore the Human-Nature Nexus. International Journal of Qualitative Methods, 20, p.16094069211037492.

Leijten, P., Weisz, J.R. and Gardner, F., 2021. Research strategies to discern active psychological therapy components: A scoping review. Clinical Psychological Science, 9(3), pp.307-322.

Harrison, R.L., Reilly, T.M. and Creswell, J.W., 2020. Methodological rigor in mixed methods: An application in management studies. Journal of Mixed Methods Research, 14(4), pp.473-495.

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Halim, E., Januardin, R. and Hebrard, M., 2020, August. The impacts of e-payment system and impulsive buying to purchase intention in e-commerce. In 2020 International Conference on Information Management and Technology (ICIMTech) (pp. 847-852). IEEE.