ABSTRACT
The study investigated on the effect of tracking technology on consumer shopping habits in retail industries in Abia State. The objectives of this study are to ascertain the effect of tracking technology on consumers shopping habit in retail industries, identify and examine the effect of investment on tracking technology on market performance. To achieve the objective of the study, survey research design method was adopted. The research adopted primary data in getting the required information. The population of the study is made up of 5923 registered retailers in Abia State while the sample size is made up of 375 after adopting taro Yamane formula. However, a total of 375 questionnaires were administered to respondent and 260 were returned. In testing the hypotheses regression and correlation analysis was used. The finding revealed that most of these retailers are aware of these technologies but few of the retailers that use tracking technology selected just two or three of the technologies that is easy for them to use. The researcher recommends that retailers should change their view on the adoption of technology in the process of identifying and satisfactorily meeting the needs of the target market as a waste of organizational resources, it will assist in the effective and efficiency of the running of their businesses. The researcher further recommends technology as paramount in addressing security need of the people and society. Therefore, government can encourage businesses to adopt and mount critical technology such as camera to aid their security implementation to aid advert crimes and also aid investigations by the authorities.
TABLE OF CONTENTS
Title
page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table
of content vi
List
of tables ix
Abstract
CHAPTER 1:
INTRODUCTION
1.1 Background to
the Study 1
1.2 Statement of
Research Problem 4
1.3 Objectives of
the Study 4
1.4 Significance
of the Study 5
1.5 Scope/Limitation 5
CHAPTER 2:
LITERATURE REVIEW
2.1 Conceptual
Review 7
2.1.1 Retailing 7
2.1.2 Functions of
Retail Industries in National Development 9
2.1.3 Definition of
Marketing 11
2.1.4
Importance of Marketing 12
2.1.5 Factors
Affecting Marketing 12
2.1.6 Channels of
Distribution 13
2.1.7 Consumer Buyer
Behavior 14
2.1.8 Consumer
Shopping Habits 14
2.1.9 Impact of
Technology on Retail Business 15
2.1.10 Impact of
Technology on Consumer Shopping Habits in Retail Industry 15
2.1.11 Types of
Tracking Technology 16
2.1.12 Overview of
Store Tracking Technology 20
2.1.13 Methods used by retailers in tracking 22
2.1.14 Prevention of Tracking Technology 23
2.1.15
Advantages and disadvantages of tracking
technology. 24
2.2 Theoretical
Framework 25
2.2.1 Technology Acceptable Model 25
2.2.1.1 Criticisms
Technology Acceptance
Model 27
2.2.2 Diffusion of
Innovation Theory 28
2.2.2.1 Limitations
of Diffusion of Innovation Theory 30
2.3 Empirical
Review 31
CHAPTER 3: METHODOLOGY
3.1 Research
Design 34
3.2 Area
of the Study 34
3.3 Population
of the Study 35
3.4 Sample
Size 35
3.5 Sources
of Data 36
3.6 Method
of Data Analysis 36
3.6.1 Specification
of Model of Analysis 36
CHAPTER FOUR: RESULT AND
DISCUSSION
4.0
Return Rate of Questionnaire 40
4.1 Business
Characteristics of Retailers in the Study Area 40
4.2
General Awareness of Tracking
Technology among Retailers in Aba Metropolis 42
4.3
Source of Information about Tracking
Technology 43
4.4
Government Support and Mandate for
Adoption of Tracking Technology 44
4.5
Respondents Perception of Usefulness
of Tracking Technology 44
4.6
Adoption of Tracking Technology 45
4.7 Diffusion of innovation 46
4.8
Factors That Hinders the Adoption of
Tracking Technology 47
4.9 Relation
between Investments and Business Performance of Tracking
Technology
in Retail Business 48
4.11
Binary Logit Estimates of Factors
Influencing Choice of Using Tracking Technology 49
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Summary of
Findings 51
5.2 Conclusion 53
5.3 RECOMMENDATION 54 References 56
Appendix
LIST OF TABLES
4.0 Return rate of questionnaire 40
4.1 Distribution
of the Respondents according to their Business Characteristics 41
4.2 General
awareness of tracking technology 42
4.3 Source
of information about tracking technology 43
4.4 Government
support and mandate for adoption of tracking technology 44
4.5 Respondents
Perception of usefulness of tracking technology 44
4.6 Adoption
of tracking technology 45
4.7 Diffusion
of tracking technology 46
4.8 Factors
that hinders the adoption of tracking technology 47
4.9 Relationship
between investment and business performance of tracking technology in retail
business 48
4.10 Relationship
between use of technology and consumer purchase 49
4.11 Binary logit estimates of factors
influencing choice of using tracking technology 50
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In today's modern society, where market competition has
progressively grown, many firms have realized rather forcefully that unlike the
old economy, the new economy is powered by information. As a result,
information and communication technology and information systems are creating
new business intelligence, called competitive intelligence (Panian, 2007). This
will continue to redefine business strategy and serve as a competitive weapon
among firms (Kotler and Armstrong, 2010).
The use of digital technology to research, browse and
purchase has gone from segment-specific or sporadic to mainstream (Ali, 2011).
Although, the power and impact of technology in business generally and
marketing cannot be over emphasized, its impact on retail industry has resulted
in an undeniable and nonreversible shift in the industry. As proactive brands
provide innovations to enhance the shopping experience, customer expectations
also change - they expect more from all retailers. As a result, the dynamics of
the retail experience is evolving, and investing in digital technology is
becoming an important strategic imperative for many retail brands today
(Panian, 2007), to harness the benefits of loyal customers and cream their life
time value.
Previously, brick-and-mortar businesses used loyalty programs
or purchase receipt data to get to know their customers and preferences better
(Lorenzo, 2012). However, this can often not be compared to other relevant
parameters such as key performance indicators (KPI). Hence, customer footfall
measurement and customer behavior analysis are increasingly elevated to a digital
level. To improve data collection and get closer to customers and prospects,
firms are investing on tracking technologies.
Evidences have shown that data management is important in
ensuring customer experience. Therefore, tracking technologies is seen as a cog
in the gearbox of delivering and meeting customer requirement. The tracking
technologies measure demand, service, and customer engagement in location and
time-based metrics. They optimize demand forecasts, location marketing,
scheduling, queues, and sales operations. And they empower the retailers to be
more productive and profitable. The system requires that a node or tag be
placed on the object, animal or person being tracked. For example, the GPS
receiver in a cell phone or a tracking technology tag on a DVD can be used to
track those devices with a detection system such as GPS satellites or tracking
technology receivers (Clark, 1991).
The implementation of tracking technology in the retail
supply chain reduces the out-of-stock situations, theft and improves management
policies, and allows quicker passage through the cash register as well as
improved productivity (Devi, 2007). To meet the increasing demands of the
market and to be competitive at global market, retailers in Nigeria should turn
to new technologies that already exist for many years in foreign markets
(Kilcourse 2006) and that have shown positive effects, such as tracking
technology.
Mobile share in e-commerce reaches 29% in countries like
Germany, United States, and Japan has been growing fast but there is still room
for growth, with desktops still representing the majority of devices used for
online shopping. In terms of market trends, specific consumer behavior such as
over-connectivity and the pursuit of healthier lifestyles are expected to shape
the market in coming years (Rio, 2007).
Some retailers have created an avenue to accommodate the
advancement in technology by imputing it into their operations. Fifteen years
ago, the average consumer was shopping from local small stores in communities
but now because of the advancement in technology, some of this retail stores
began to lose out of the competition (Arthur, 2002).
The desirability of tracking technology according to
Kurtz, 2001 is undeniably increasing because it provides a firm with two key
performance indicators - conversion and capture rate. They provide clues and
information about choice and assessment of retail store locations, control over
sales and operations planning as well as marketing events, and they support
planning and sales forecasts. In the course of tracking, dwell time and the
total number of visitors are also relevant. As a result, it becomes very easy
to assess the performance of stores, individual department, sales areas,
shelves or product lines.
Retailers in Nigeria are developing interest on how
tracking technology can help get reliable data from their active and
prospective customers. In light of the differences between developing countries
and other developed countries, adoption strategy seemingly could be quite
different for retailers in Nigeria. While tracking technology solutions and
applications are still at the early stage of deployment in developing countries
like Nigeria (Tan. and Ni, 2007), the potential for tracking technology to
improve tracking operational efficiency is evident in retail industries.
Research has also shown that there exist gaps among values
perceived from different parties in the adoption, e.g. technology provider,
technology user, etc. Value compatibility has become one of the important
issues for investigating adoption, diffusion and success among different
parties in adoption. Group values and practical compatibility were found to be
a facilitator of successful adoption of tracking technologies (Harrington and
Ruppel, 1999).
1.2 STATEMENT OF RESEARCH PROBLEM
Globally,
the advent of technology and its rapid innovativeness have changed the
dimension and scope of business (Wangwe, 2013). This has made it quite easier
for retailers to reach their target audience with the marketing messages
irrespective of their geographical location. For firms, advances in technology
have considerably enhanced the institutionalization and utilization of the
market orientation approach by providing the technological infrastructure to
capture, analyze, and maintain large quantities of consumer information (Winer
2001). For consumers, though, the collection and analysis of their personal information
has led to an increase in privacy concerns (Foxman and Kilcoyne 1993; Phelps,
Nowak, and Ferrell 2000). While most consumers welcome the increased
convenience and personalization that these various marketing orientation
approaches provide, many are concerned about the collection, use, and
protection of their personal information (Phelps et al. 2000; Rust, Kannan, and
Peng 2002).
A
greater number of the populace do not comprehend fully well how to manipulate
the features of internet facilities, as such they displayed a lukewarm attitude
when they are encouraged by marketing organizations or retailing institutions
to visits their corporate website to buy or place order for essential goods and
services. More so, most retail firms view the adoption of technology in the
process of identifying and satisfactorily meeting the needs of the target
market as a waste of organization resources, limiting the extent at which
retail organizations reach target audience with their messages. Moreover, there
have been a lack of research on the areas of tracking technology due to lack of
interest in these areas, thereby causing unavailability of research materials
for researchers who have interest in this area. Therefore, this study is positioned to
ascertain the effect of tracking
technology on consumers shopping habit in retail industries.
1.3 OBJECTIVES OF THE STUDY
The broad objective of the study is to ascertain the effect of tracking technology on consumers shopping habit
in retail industries. However, the following specific objectives will be
pursued, which are to:
i). identify various tracking technology adopted by various
retail industry.
ii). ascertain factors that influence adoption of tracking
technology among retailers.
iii). ascertain the effect of investment on tracking
technology on market performance.
iv). examine the influence of tracking technology adoption on
consumer frequency of purchase
v). determine the level of diffusion of technology in Abia
state.
1.4 Significance of the Study
This research
study will be significant
because
it dealt with issues retailers
are facing in the use of tracking technology on consumers shopping habit.
In the present scenario,
tracking technology on consumers shopping habit in retail industries will be of
benefit to the following:
i. Consumers: This
study enlightens the consumer of the various tacking strategies that can be
employed to facilitate purchase as quickly as possible - in order to achieve
this, application of radio frequency technology in retail is essential which
would enable the acceleration of purchase and provide greater awareness of
products.
ii. Retailers: The
retailers are prior to benefit from this study because the study gives shows
the various ways and technology that can be used to track their customers for
better sales and security.
1.5 SCOPE/LIMITATION
This Study will be focusing on the effective of tracking
technology on consumers shopping habit in retail industries, hence covering all
the retail industry in Nigeria. The study will be focusing on retail shops in
Abia state as means of assessing the effect of tracking technology on retail
industries. It is hoped that this will help to achieve the stated objective of
the study. In the process of carrying out this research work some problems were
encountered. The problems includes the following:
i.
Time Constraints: The limited time involved for carrying out
the research and meeting up with the approved academic calendar for the
completion of the program will not be enough, but however the research will
take a drastic strategy of time management in order to carry out this work in
the most efficient manner.
ii.
Financial Constraints: Due to limited resources at the disposal of
the researcher, financial constraints will militate against possible access to
all the required information for the study. However the research will also
adopt various financial source technique in order to carry out this research
work in the most proficient manner.
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