Describe about the Statistics and Business Research for Socio Economic Products.
This research study has highlighted the impact of socio economic differences for the purchasing of products in the Australian market. As per the statement of Pechey et al. (2013), socio economic differences within an organization arise due to the misunderstanding or miscommunication between the consumers and the employees or between the inter employees of the organization. In this purpose, the researcher has considered the socio economic differences as the independent variable and the purchasing of products is the dependent variable (Dinsa et al. 2012). On the other hand, it can be mentioned that different theories and reliable models will be discussed in this study. These models and theories will effectively increase the knowledge of the study of the research. The models and the theories will be beneficial to estimate the impact of the socio economic differences on the purchasing of products.
Socio economic factors:
As per the statement of Chitnis et al. (2014), attitudes are the undesirable or the desirable estimation that reflect the behaviour of the consumers. In this connection, it can be stated that attitudes affect the intentions. In addition, it can be stated that attitudes reflect the intentions, higher the desirable attitude, greater will be the intention, which is required to carry out. Howe et al. (2012) opined that attitude is the key factor, which has a greater impact on the buying decision.
On the other hand, it can be mentioned that the attitudes are connected with the people and the surroundings. According to Blum (2013), it can be stated that positive attitudes of the people will positively reflect to the surrounding people. In addition, impact of the socio economic differences on the purchasing of goods is also depending upon the connection between the subjective norms and the attitudes of the consumers (Handbury, Rahkovsky and Schnell 2015).
In order to make a business successful, socio economic difference between the employees and the consumers will mitigate. It will be reduced by the development of the trust and the rapport with the consumers. As a result, it can be mentioned that greater communication skill between the organizational authority and the consumers can reduce the socio economic differences. In this purpose, Galama and Van Kippersluis (2015) added that the consumers are willing to purchase the products from that organization. The productivity of the company will be effectively increased. Socio economic disparities can be prevented when communication style and the behavior of the employees is required to improve.
Global socio economic disparity:
Figure : Global socio economic disparity
(Source: Pickett and Wilkinson 2015)
The above figure depicted the influential factors, which reflects the socio economic differences. By identifying these factors, an organization can mitigate this disparity. These factors can be discussed briefly in the following:
Higher production rate and the cheaper labor markets:
According to Blum (2013), cheap labor market highlights to increase the rate of production. Nevertheless, due to the precarious employment, there is a weaker purchasing power and the manufacturing goods and services will be hampered. The smaller groups of the domestic customers provide these goods and the services. This particular economic scenario will attract the foreign investors. As per the statement of Vijayanand (2012), due to the lower rate of the domestic labors, the foreign will be attracted. As a result, it can be mentioned that the socio economic disparity will increase.
Higher consumption rate and the over market consumption:
According to Howe et al. (2012), it can be stated that a larger proportion of manufacturing goods and the services in the cheaper labor countries will be exported to the excessive consumption nations. As a result, this will generate a vicious circle, with which the international consumption will be concentrated within a fewer markets. This purchasing behavior of wages within the consumer nations will continue to increase. On the other hand, the purchasing power of the wages in the cheaper labor nations will constantly fall or remain unchanged.
Lower rate of consumption and the under consumption markets:
In the words of Handbury, Rahkovsky and Schnell (2015), under consumption is directly related with the economic policies, which aimed to encourage the cheaper labor market. This situation may arise due to the inadequate consumer demand. In addition, it can be mentioned that sometimes the workers are paid lower wages compared to the production. As a result, their willingness towards the productivity will reduce. Hence, the productivity of the organization will be deceased. This will in turn reflect the consumption pattern of the consumers.
Global socio economic disparity and the global consumption disparity:
This section has tried to highlight that there is a disparity in the income level and the level of consumption. On the other hand, Galama and Van Kippersluis (2015), added that the smaller portion of the overall population would consume a larger percentage of the world’s resources. Therefore, the greater percentage of the overall population is belonging under the minimum consumption level.
Therefore, this research study has demonstrated the concept of over consumption and the under consumption in order to identify the impact of the socio economic differences. Due to the limited resources in the global market, the organization will not be able to produce higher productivity. According to the statement of Pickett and Wilkinson (2015), it is required to reduce he socio economic gap between the employees and the consumers. In this connection, the employees require to communicate with the customers, so that the employees will be able to understand the requirement of them. With the help of the satisfactory relationship, the performance of a business can be improved. The productivity of the organization will also be increased. In addition, Blum (2013), opined that consumers would maintain a long-term relationship with the organization. As a result, it can be inferred that the consumer loyalty towards the company will be maintained. Nonetheless, misunderstanding between the consumers and the employees will reflect to distrust as well as poor morale. Therefore, it can be concluded that socio economic gap is not good for a company.
Gantt chart using the three milestones
Literature Review is due on Week 6.
Data Collection and Analysis Report are due on Week 10.
Final Business Research (Capstone) Thesis is due on week 14.
Figure: Gantt Chart using three milestones
(Source: created by author)
Data collection and analysis method
The aim of the research is to find an impact of socio –economic differences on the consumer’s choice of purchasing the products or consuming the services in an Australian Market. The researcher has chosen Virgin Airlines to evaluate and find the issues that the organizations face due to the socio-economic differences. Data collection is a method through which data is collection upon which a finding is based. The researcher has used descriptive approach to analyze the data. The research is not based on case study but the research uses a descriptive approach. Two types of data collection process are qualitative and quantitative procedure (Creswell 2013). For this particular, research the researcher uses quantitative process for collecting the data. Quantitative data is collected for the numerical analysis of the observation. The researcher uses quantitative data collection as the research is observational and descriptive in nature. Quantitative data is used to test the hypothesis that is derived from the theory. The data collection procedure depends on the research questions. The quantitative data can be collected using various methods such as experiments, observations, interview, questionnaires and surveys. Since the research is descriptive in nature, the author uses the methods of questionnaires and surveys to collect the data (Bryman 2015).
The data is collected by preparing a questionnaire that is then surveyed online and through interview process by the researcher. The questionnaire is prepared for the managers of Virgin Airlines, its employees and customers. The questionnaire is based on the semi-structured pattern that was based on clustered samples. The questionnaire contains both an open-ended questions and close ended questions. The close-ended questions are for the employees and managers of the organization that is answered in descriptive format. It contains five questions that are surveyed from employees and managers of the Virgin Airlines. The questionnaire is surveyed using interview method and the researcher himself conducts the interview. The total number of employees that are surveyed accounts to 10. Open-ended questions are prepared for the consumers of Virgin airlines. The questionnaire depends on demography such as age, sex, religion and questions based on consumer choice and factors affecting their buying behavior. The total numbers of consumers that are surveyed are 50 (Weber 2015). The questionnaire prepared is published online and survey via internet. It is done analyze the socio economic problems and the impact of the socio economic differences on the purchasing decision of consumers. The questionnaire is prepared to analyze the psychological view of the customers. It is done to analyze the methods used by the managers and employees to solve the socio economic issues and problems. The inquiry made was tested on a sample of clustered sampling from the business organization and after that following a convenience sampling so that any person can answer the questionnaires (Saaty and Vargas 2013).
Hence, the researcher uses quantitative method to collect the data for this particular research. Quantitative method of data collection is more cost effective than the qualitative researcher it is also less time consuming and hence the researcher uses quantitative data collection method. The two types of data are primary data and secondary data. The researcher relies on primary sources of data for its research that is collected by preparing questionnaires from the primary sources. Here, the primary sources include the managers, employees and consumers. Primary data is the data that is collected by the researcher on its own from the valid sources. It is essential for the researcher to ensure that the data is collected from valid sources where the researcher can rely on the data (Mertens 2014).
The next step after data collection is the data analysis method. The data that is collected is analyzed using statistical tools to obtain a result on the socio economic problems and its impact on the purchasing decision of consumers in Australian organization. The researcher uses Virgin Airlines to analyze and the issue. Testing the hypothesis is essential that is tested using the statistical tool. The data that is collected is plotted on an excel file to obtain the histograms and bar graphs through which the data is analyzed. In this case, the researcher uses p-test and z-test to conclude as to accept the hypothesis or to reject it. The researcher uses the simple random sampling and probability method to analyze the data (Soy 2015). The aim of the researcher is to get an unbiased result through the analysis. The researcher also uses SPSS software to analyze the result. The response of the consumers, employees and managers are analyzed through SPSS tool (Pickard 2012). The response of the respondents is categorized under different sections and heads such as age, culture, consumer choice, socio economic differences. The data is then analyzes on three components or parameters that is good, satisfactory and poor. The response and result obtained is the plotted in bar graphs, histograms and pie charts upon which a conclusion is drawn. Hence the data is analyzed in a descriptive approach.
It is recommended that the researcher should use both the qualitative and quantitative methods for the data collection and data analysis. Qualitative data is used to support the quantitative data collection method. The researcher should also use the secondary sources of data for its research. It is essential for the researcher to have knowledge of the organization, which can be evaluated by referring to the website of the company. The socio economic differences can be solved and there are mainly to main factors to solve the differences. One is the education of children. Right education by the parents has an influential impact on the society. The second component that influences the society greatly is the media (Batra et al. 2014). Media has a very great impact on the society. It can create either a positive impact or a negative impact on society. The Virgin Airline should initially analyze the socio economic problems and issues that the organization face. It is also essential to analyze the impact of socio economic differences on the purchase decisions and then formulate strategies accordingly to solve the problem (Hirst 2013).
Analyzing the background of the customers is essential to know their social background. It is also essential to know the reason for the differences in the socio economic background. Hence, the two main factors that can solve are the right education and right use of media. The managers should properly formulate the strategies so that the problems can be tackled easily (Godey et al. 2012).
Hence, the researcher should expand its sample size in order to get a valid result and should use both the quantitative and qualitative data collection procedure for the analysis.
Hence, from the above analysis and research it can be concluded that the researcher will accept the null hypothesis and reject the alternate hypothesis. The researcher uses quantitative approach to collect the data and the research is described in a descriptive approach. The data is collected through questionnaires from the managers, employees and consumers of Virgin Airlines through interview method and online survey. Various social factors and economic factors affect the purchase decision of consumers. The various social factors that affect the purchasing decision of consumers for Virgin airline are income of the family, social status, lifestyle, consumer preferences, consumer attitude and education. The economic factors that affect the purchasing decision of consumers are price of the product, income of the consumers, purchasing power, interest rates and other economic factors. The differences in the socio economic factors have a negative impact on the purchasing decisions and it greatly affects the consumer choice. The differences lead to a fall in the sale of services that should be handled effectively the managers of the organization. Hence, it is essential to keep the workplace free from socio economic differences in order for success of the business. A socio-economic difference leads to religious riots which is harmful for the organization.
Hence, the researcher uses quantitative approach for data collection method because it is less time consuming and more cost effective as compared to the qualitative data collection method.
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