BMG575 Research Methods Assignment Sample
IMPLEMENTATION OF AI IN RETAIL INDUSTRY TO UNDER THE CUSTOMER BUYING BEHAVIOUR
Slide 1: Introduction
- In the modern era, most of the retail companies of the UK have used Artificial Intelligence (AI) which is immensely essential in identifying the purchasing behavior’s of customers
- The topic is extremely essential and relevant in the modern era as it will elaborate way which will help the retail organization of the UK to predict the behavior’s of customers effectively
- Artificial Intelligence (AI) may be considered as an important technical innovation that may help an organization in understanding and identifying the purchasing intention of consumers (Liang et al., 2020)
In this presentation, the main impact of using AI in the retail industry of the UK to anticipate the purchasing behavior’s and intention of customers will be discussed in detail. Additionally, if a retail organization will not be able to implement AI tools then the company may not be able to understand the buying behavior’s of customers which may harm the growth of the retail company. More specifically, every retail organisation of the world prefers to identify the buying behaviour of customers as the use of innovative AI tools may help a retail organisation to sell the product according to the preference of the customer base.
Slide 2: Contd…
- Amazon is one of the top retail e-commerce organisations in the world which incorporated AI in 2000 and it helps the company in enhancing its sale of the company by 35% (org. 2022)
- Additionally, if the retail sector successfully use AI the productivity of the industry will be incensed to around $15.7 trillion by 2030 (org. 2022)
- One of the biggest advantages of incorporating AI in the retail industry is that it may enhance the current revenue level of the industry by involving more customers and anticipating the purchasing behaviour
- Modern business becomes extremely data driven as the main task of AI in the retail industry is to gather several information about the buying behaviour of customers
In this digital era, most of the retail business is operated both offline and offline and during the covid-19 the retail business of the UK fully shifted into the online platform. In addition to that, if the retail organisations of the country may not be able to use AI tools then the online operation of the company may be disrupted this resulted in a financial loss of the companies. One of the main mottoes of the retail industry is to be more customer friendly as successful implementation of AI tools may create a positive impact in making the retail buns more customers friendly which ensures the success and growth of the industry.
Slide 2: Evaluating the problems and issues of the research
- Many retail organisations of the world are not able to implement AI tools due to inadequate financial budget as it is extremely costly
- Some of the retail organisations are not interested in implementing AI tools which may create a negative impact for these organisations to understand the purchasing behaviour of customers
- A modern retail organisation needs to resolve the issues and implement AI tools which is beneficial for the growth of the company as it helps the companies to forecast the demand level of customers effectively
- Most of the retail companies have used innovative AI chatbots which is immensely essential in improving customer service and establishing a two way effective communication between retail organisations and customers (Adam, 2021)
It may be argued that this section is mainly designed to identify and address the research gaps of the research process while without knowing the research gap it will be extremely difficult to conduct the research. Along with that, many retail companies are not able to execute AI tools as it is immensely difficult to operate these tools which may provide wrong information about the buying behaviour of customers.
Slide 3: Aims of the research
- One of the main aims of the research is to analyse the implications of AI tools in the retail industry which is immensely influential in identifying the purchasing behaviour of customers
- To establish a healthy relationship with the customers as an AI tool always helps a retail organisation to fulfil the satisfaction level of customers by customised service
- One of the key aims of the research is to understand the AI based innovation in the retail industry which is mainly designed to improve the shopping experience of customers (Mahmoud et al., 2020)
The presentation will mainly evaluate the main intention of the retail organisation of the UK in order to use AI tools that help the organisation in understanding the consumer behaviour, decision making process during purchasing of a product in a fruitful manner. Another aim of the research is to predict the need and demand level of customers as every retail company prefer to predict the need level of customers. AI has multiple usages in the retail industry as it is not only used to identify the customer buying behaviour, however, it is also used to understand the customer behaviour to increase the sales of the company.
Slide 4: Research Scope
The main scope of the research is to improve the retail marketing of a country which will provide better customer service
- To improve the demand forecasting capabilities of the retail organisation while without these capabilities the retail organisation may not gain a competitive advantage
- To design a customer friendly retail marketing process that will be impactful in retail a huge number of customers
- To ensure the skill development of employees and encases the employee engagement in the retail company of a country which will be useful in establishing an effective customer relationship management with the help of AI (Seranmadevi and Kumar, 2019)
Retail companies need to provide the right information about the products to customers as the successful implementation of AI may help the retail companies to provide detailed information of products which ensure the trust level of customers to the company. During the Covid-19 it was immensely difficult to forecast the demand and need level of customers and during the time the buying behaviour of customers has changed. A retail company needs to execute AI tools to understand this changing customer behaviour which may be useful for the retail companies to increase the sales of products.
Slide 5: Research limitations
- Every research of the world has some limitations and it is the duty of the researchers to mitigate the research limitations or else the research results may not be relevant
- One of the main limitations of the research is that the research may take a long period
- There is a huge requirement of funding in every research even though the research process may be disrupted by insufficient funding which may be considered as an important research limitations
- According to a reputed journal, research limitation is totally uncontrollable and it mainly indicates the weakness of the whole research procedure (Theofanidis and Fountouki, 2018).
It was extremely difficult to acquire relevant and authentic academic resources and for that reason, very few resources were used in this research. The scope and aims of the research are too broad which is not able to evaluate the main topic of the research in a professional manner and it needs to be more specific
Slide 6: Research rationale
- The research is mainly conducted in elaborating and finding the positive impact and several aspects of using AI tools to understand the customer buying behaviour
- The retail companies of a country always prefer to target the customer by using marketing segmentation an AI tool always helps the company is to that a specific group of customers
- The main feature of AI tools is that it is extremely cost-effective and it is also impactful in understanding and interpreting the attitude, belief and purchasing behaviour of customers which denote that AI always plays a central role in improving marketing (Vlačić et al., 2021).
A retail company may have multiple customers and it is one of the biggest duties of a retail company to gather data and analyse the data with the help of an AI tool to influence consumer purchasing behaviour in an effective way
Slide 7: Research Question
- An investigation into the advantage and benefits experienced by the retail industry of the UK will be immense essential in anticipating the purchasing behaviour of consumers
- The retail organizations of the UK need to understand the several aspects of marketing segmentation such as demographic, geographic, social factors and many more and after then the implementation of AI may be helpful in influencing the consumer purchasing behaviour
- One of the main aims of using AI is that it is tremendously helpful in increasing the interaction of customers with the brand and AI is also influential in order to provide a supreme shopping experience to the customer (Ameen et al., 2021)
The main intention of the research question is to analyse the impact of AI in anticipating the customer behaviour in the retail industry while working implementation of AI may be harmful and will not provide proper data about the buying behaviour of consumers.
Slide 9: Research Objectives
- What was the situation of the retail industry before the emergence of AI?- Before the implementation of AI all the works within the retail industry used to be conducted physically
- Did the activities within the retail industry take more time before the implementation of AI?- The activities, such as calculation, demand management, forecasting, managing the supply of goods took more time
- How are the consumers adopting to the change?- Consumers are experiencing more ease while shopping for any particular products
- Does AI help to develop a resilient supply chain?- A supply chain enabled by AI develops significant resilience in the given network of the same (Modgil et al., 2021)
The implementation of AI has brought innumerable changes within the retail industry as the operations that are undertaken within the given sector has become easier and free of error to a large extent. It may be taken as an example that before the implementation of AI large factories or companies used to manage their inventory with the help of physical labour and as a result there were more chances of errors. AI is such a technology that is able to detect the number of items required to be distributed within a given value chain and that in return makes the jobs of individuals quite easy. Apart from that, in many stores in today’s age there are no employees and everything is driven by AI and consumers are preferring such advancements and especially amidst the ongoing pandemic, when social distancing has become the new norm.
Slide 10: Contd..
- It needs to be mentioned that in order to make the experience of consumers more efficient more organizations need to consider implementing the technology
- Before the implementation of AI individuals working within the retail industry need to learn the proper way to handle a specific business aspect with AI
- However, AI also comes with a significant amount of risks that the retailers also need to consider before implementing it to impact consumer behaviour
- Research has stated that AI has the possibilities of being biased in case it is trained with the help of insignificant and illicit data (Kumar et al., 2019)
From the above mentioned discussion, it has become evident that despite the vast amount of benefits that AI provides, there are certain implications that retailers need to keep in mind before implementing it in the retail industry. In addition to that, handling business activities with the help of AI requires individuals to have certain knowledge about the same and without that implications may arise in the business activities that will lead the retailers to experience loss in the business as well. It may be stated that the future of retail is driven by AI as it has effective potential in helping retailers to make better market decisions and that will have a positive impact on the behaviour of the consumers. However, despite all its positive sides, at the end AI is a technology and if not handled with caution it has the potential to manipulate human behaviour as well.
References
Ameen, N., Tarhini, A., Reppel, A. and Anand, A., 2021. Customer experiences in the age of artificial intelligence. Computers in Human Behavior, 114, p.106548.
Kumar, G., Singh, G., Bhatanagar, V. and Jyoti, K., 2019. Scary dark side of artificial intelligence: a perilous contrivance to mankind. Humanities & Social Sciences Reviews, 7(5), pp.1097-1103.
Liang, Y., Lee, S.H. and Workman, J.E., 2020. Implementation of artificial intelligence in fashion: Are consumers ready?. Clothing and Textiles Research Journal, 38(1), pp.3-18.
Mahmoud, A.B., Tehseen, S. and Fuxman, L., 2020. The dark side of artificial intelligence in retail innovation. In Retail Futures. Emerald Publishing Limited.
Modgil, S., Gupta, S., Stekelorum, R. and Laguir, I., 2021. AI technologies and their impact on supply chain resilience during COVID-19. International Journal of Physical Distribution & Logistics Management.
Rubygarage.org. 2022. 11 Superb Ways AI Can Revamp the Retail Industry. [online] Available at: <https://rubygarage.org/blog/11-use-cases-of-ai-in-retail> [Accessed 28 February 2022].
Seranmadevi, R. and Kumar, A., 2019. Experiencing the AI emergence in Indian retail–Early adopters approach. Management Science Letters, 9(1), pp.33-42.
Theofanidis, D. and Fountouki, A., 2018. Limitations and delimitations in the research process. Perioperative Nursing-Quarterly scientific, online official journal of GORNA, 7(3 September-December 2018), pp.155-163.
Vlačić, B., Corbo, L., e Silva, S.C. and Dabić, M., 2021. The evolving role of artificial intelligence in marketing: A review and research agenda. Journal of Business Research, 128, pp.187-203.
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