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Consumers Shopping Behaviour Pattern on Selected Consumer Goods: Empirical Evidence on Malaysian Consumers
Oriah Akir* and Md. Nor Othman**
In the consumer behaviour literature, several perspectives on consumer decision making have been considered, including consumer degree of involvement, degree of information search, the number of alternatives available/attributes importance, demographic variables and interpersonal influence that affect consumer buying decision and shopping pattern on certain consumer goods, both high and low involvement products. A cross-sectional survey was conducted and 1000 consumers were interviewed through mall intercept of which only 500 were useable for the analysis of the findings. In this paper, a framework which integrates several dimensions affecting consumer decision making (demographic variables, attributes importance, interpersonal influence) and repurchase intention as well as the possible relationship among variables is developed. The framework is tested by the use of standardized multiple regression analysis to determine the linear relationship among all these variables. The results of this research support the complexity of consumer buying behaviour. Consumers preference differs on which attributes they emphasize more as compared to the others, and the issue of how significantly others influence their buying decisions. The findings revealed that purchasing high involvement products was regarded as a very important decision in comparison to purchasing low involvement products. Second, quality, brand name, informational influence and product information had significant direct relationship on repurchase intention for high involvement products. While for low involvement products, price and brand name significantly predict consumers repurchase intention. Finally, the influence of significant others/interpersonal influence (spouses, siblings, family members, friends, and the like) did not significantly affect repurchase intention regardless of whether the products are low involvement products or high involvement products. In conclusion, the implications of this research: 1) contributes to the body of knowledge and exploratory model building on consumer purchase behaviour; and 2) the research model will provide an important input to the marketing decision-making process and management decision, such as marketers, product managers and/or brand managers to streamline their marketing plan and strategies. Field of Research: consumer behaviour and marketing
1.
Introduction
Consumer behaviour theorists generally believe that consumer behaviour theories can be applied globally but consumer preferences and tastes are influenced by their cultural background (Schutte and Ciarlante, 1998). Therefore, marketers and business practitioners have to recognize that consumers attitudes and beliefs, preferences, needs and tastes towards certain products or services are greatly influenced by their culture and the society they belong to. For instance, consumers in other parts of the globe may consider price as the most important determinant in their decision to buy food items, whereas, in others, they may consider quality as the most important factor that may affect their choices. Other factors that may surface could also be the influence of significant others, ____________________________________
* Lecturer of University Technology MARA, Malaysia, oriah@sarawak.uitm.edu.my ** Professor of University Malaya, Malaysia, mohdnor@um.edu.my
b)
Specific objectives of the research: a) To determine consumers general shopping behaviour patterns when they decide to buy selected consumer goods (high and low involvement products). To examine the relationship between product attributes importance, selected consumers demographic variables, interpersonal influence and repurchase intention.
b)
2.
Literature Review
This section reviews past studies on various factors, such as price, quality, brand, product information, demographic variables and interpersonal influence that might influence consumers purchase decision and how these factors in turn affect their repurchase intention.
2.1
Introduction
Understanding consumer behaviour is paramount for both marketers and business alike. Two factors critical to understanding consumer behaviour are: firstly, the degree of differentiation that a consumer perceives in the product or service; and secondly, the fundamental determinant of consumer behaviour is their degree of involvement in the purchase (Blackwell, Miniard, and Engel, 2001; 124
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2.2
As previously discussed, past and recent studies provide empirical evidence, that suggest the existence of a relationship between demographic variables, product attributes and purchase or repurchase intention. Nonetheless, within the domain of service marketing studies pertaining to the determinants that influence consumers repurchase intention and satisfaction were widely investigated and researched in comparison to tangible products. These determinants include service quality determinants such as reliability, access, courtesy, competence, responsiveness, tangibles, credibility, communication, customization, understanding customers needs, and security. Other determinants mentioned in past studies also included past experience, prior knowledge or familiarity, culture, demographic variables such as income, education, household size, children and so forth. Likewise, the studies on consumer susceptibility to interpersonal influence were also well researched but the study directly investigating the relationship between interpersonal influence and customers repurchase intention is still fuzzy. Furthermore, in the literature, past studies that integrated and directly linked product attributes importance, demographic variables and interpersonal influence in explaining repurchase intention was also unclear. Therefore, in view of this argument and to fill in the gap in the literature and add to the body of knowledge in consumer behaviour model and conception, this research attempts to explore specifically amongst others, the relationship among all these variables (product attributes importance, demographic variables, interpersonal influence and repurchase intention) pertaining to consumers decisions to purchase or repurchase selected tangible consumer goods (high and low involvement products). For the purpose of this research the following conceptual framework was developed as depicted in Figure 1 below. The framework of this research was developed based on stochastic models of brand choice and purchase incidence as modified by Jones and Zufryden (1980). Jones and Zufrydens model used demographic variables (household income and 126
Based on the above argument and discussions in the literature, the following general hypotheses and specific hypotheses were developed: General hypotheses: H1: There is a relationship between products attributes importance, demographic variables, interpersonal influence and a consumers repurchase intention. Specific hypotheses: H1a: There is a relationship between quality attribute importance and a consumers repurchase intention. 127
3.
Research Methodology
This section briefly describes the research design, population and sample size, data collection procedure as well as data analysis procedure.
3.1
A cross-sectional survey was conducted. A non-probability sampling approach was employed and a quota sampling technique was applied to draw the sample. This approach was employed because the sample frame was not easily available and difficult to draw from and the target population cannot be reached and identified effectively and efficiently by other means of sampling (Clarke, 2006). Kinnear and Taylor (1996) reported that about 86 percent of businesses used quota sampling in business research practice. Further, Kress (1988) contended that samples, if properly selected, are sufficiently accurate in most cases and even when the data has considerable heterogeneity, large samples provide data of sufficient precision to make most decisions (Zikmund, 2000). The target sample for this study was 1000 consumers residing in one of the cities in one of the states in Malaysia.
3.2
The target population for the research comprised consumers residing in one of the city in East Malaysia. The total population of the city is 422,240, consisting 210,034 male and 212, 205 female (Department of Statistics, Malaysia, 2004, p. 34). Approximately 1000 consumers were targeted and divided proportionately by gender, that is, about 50 percent male and 50 percent female. This composition closely exhibited the population parameter of the chosen city based on statistical report drawn from Department of Statistics, Malaysia (2004). The sample size was considered as adequate, since the minimum sample to determine sample size from a given population is 384 (Krejcie and Morgan, 1970) for every one million population.
128
A total of 1000 questionnaires were distributed using mall intercept at six selected retail outlets located at one of the cities in East Malaysia. The retail outlets included supermarkets, small retail stores, departmental stores, specialty stores, hypermarkets, and malls. The selected units of analysis were interviewed personally. If the sample units were unable to complete the questionnaires, they were requested to send them by mail using a paid stamped-self-address envelop provided by the researcher or to return them personally the following day to the interviewers stationed at the selected retail outlets. The interviews were conducted daily from 10.30 a.m to 9.30 p.m for three months from September 2008 to November 2008. The personal interviews took place within these three months and only ended when the minimum targeted size of 500 respondents who fully completed the questionnaires were achieved with at least 50 percent male and 50 percent female composition as had been determined by the researcher in order to meet the quota targeted. The data collected must meet the desired characteristics that had been determined by the researcher.
3.4
Instrument
Before the full scale research was carried out, pre-testing was performed to ensure there were no design errors in the questionnaire. Therefore any mistakes and changes could be corrected and improved. The pre-test was administered using 30 consumers as respondents who characterized the intended consumers for the main research. They consisted of part-time students who enrolled for the Bachelor in Business Administration (Honours) (Marketing) (BBA) (M) and Executive Master in Business (EMBA) programmes at one of the public universities located at one of the cities of an East Malaysian state. These respondents were selected at the researchers convenience and they were similar in makeup to the sample of the main research (Zikmund, 2000; Malhotra, 2004). Feedback from the pre-test study indicated that the respondents were comfortable with the questions asked. However, based on the pre-test feedback, a few changes were made to ensure the final respondents in the actual survey understand the questions. At this pre-testing stage, the respondents were also asked to rank order which of the products category given to them that they considered as high involvement products and low involvement products of the six categories chosen, namely: personal computer, fashion clothing, instant noodle, instant coffee and detergent. In order to address the research questions and objectives, a set of structured questionnaire was prepared consisting of four sections, namely section A, B, C and D. Section A captured the consumers general shopping behaviour pattern which addressed questions related to the products category that the consumers bought, why did the consumers buy the products, what were the preferred brand names bought by the consumers, did they prefer foreign brand or local brand, what were the reasons for choosing foreign and local brand, when did they usually buy the products, where did they usually buy the products, how much they spent and how many times they bought the products for the last 12 months, how did they know about the products, which advertisements medium influenced them the most, who influenced their purchasing decisions and what were the 129
3.5
Analysis Procedure
The data was analyzed using Statistical Package for Social Sciences (SPSS) version 12.0. Descriptive statistics such as mean and standard deviation were generated to provide an overview of the data. Frequency distribution was used to describe the characteristics of the consumers general shopping behavio ur pattern as well as to profile the respondents personal information. The standardized multiple-regression analysis was used to examine the linear relationship between the explanatory/dependent variables (quality, price, brand name, product information, normative influence, informational influence, household income, number of children) and the criterion/dependent variable (repurchase intention). Correlation coefficient test and significant levels were conducted to check the strength of the linear relationships between pairs of variables. The determinant of correlation matrix was generated to provide the information on the multicollinearity. Kaisers criterion (KMO) and Barletts Test of Sphericity was performed as a check to substantiate the appropriateness of conducting a factor analysis and also to examine the sampling adequacy. Cronbachs alpha coefficient was conducted to determine the items reliability and internal consistency (Nunally, 1978; Malhotra, 2004).
130
Out of 1000 respondents interviewed through mall intercept, only 500 sets of the questionnaires were fully completed and useable in the analysis which yielded a response rate of 50 percent. The research findings revealed that 259 (51.8%) of the respondents were female and 241 (48.1%) were male. The research also indicated that 172 (34.4%) of the respondents were aged between 25 to 29 years old, followed by 107 (21.4%) aged between 20 to 24 years old, 87 (17.4%) of the respondents were within the age range of 30 to 34 years old, 51 (10.2%) of them were aged between 35 to 39 years old, 34 (6.8%) were aged between 40 to 44 years old, 22 (4.4%) of them aged below 20 years old, while 13 (2.6%) of them were aged between 45 to 49 years and the other 14 (2.6%) of them were 50 years old and above. In terms of household income, the research indicated that the household monthly income of the respondents were mostly within the range of RM2000 to RM4999 (197 or 39.4%), followed by 129 (24%) between RM5000 to RM6999, 81 (16.2%) below RM1000, 52 (10.4%) between RM7000 to RM8999, 24 (4.8%) between RM9000 to RM9999, and only 26 (5.2%) earned above RM10 000. Most of the respondents, that is, 169 (33.8%) of them had college diploma level of education, followed by a university degree, that is, 143 (28.6%) of them, 108 (21.6%) of them had secondary level of education, five (1%) of them had primary level education, and 18 (3.6%) had other educational level. Essentially, the majority of the respondents, that is, 246 (49.2%) were single, 167 (33.4%) of them were married with children, 80 (16%) of them were married without children, and seven (1.4%) of them were divorced/widowed or singleparents. The majority of the respondents were Christians (248 or 49.6%), 168 (33.6%) of them were Muslims, 67 (13.4%) were Buddhist/Taoist, 11 (2.2%) of them were Hindu and six (0.2%) of them were from other beliefs. Most of the respondents had 3 to 4 children in their household (223 or 44.6%), 145 (29%) had 5 to 6 children, 82 (16.4%) of them had between 1 to 2 children, and 50 (10%) of them had 7 or more children. On average most of the respondents were religious people, that is, 411 (82.2%) of them stating that their strength of religious orientation were between average and strong. While the other 63 (12.6%) of them and another 26 (5.2%) of them stated that their strength of religious orientation were between very strong and very weak, respectively. Please refer to Appendix 2 for the detailed breakdown of the respondents characteristics.
4.2
In terms of buying decision, the research indicated that a majority of the respondents ranked buying fashion clothing as their most important purchase decision, followed by personal computer, branded perfume, instant noodle, instant coffee, and stated buying detergent as the least important purchase decision. This finding seems to be consistent with past studies that contended any purchase which is used publicly such as fashion clothing (rank 1, mean 1.72) is considered as an important decision by consumers (Clerk and Belk, 131
In terms of place, a majority of the respondents stated that they purchased their personal computer at departmental stores, followed by specialty stores, malls, small retail shops and other shops in that order. Most respondents went to departmental stores and malls to purchase their fashion clothing and only a few preferred to go to small retail shops. Similarly, most of the respondents preferred to shop at departmental stores, supermarkets and malls to buy their branded perfume, and only a few of them went to small retailers and other shops. However, for low involvement products such as detergent, instant noodle and instant coffee, most of the respondents stated that they preferred to go to supermarkets to purchase them. 132
4.3
Correlation
Coefficients
and
A number of statistical tests were conducted to determine the basic information on mean, standard deviation, and N, which are useful to identify the presence of outliers and the adequacy of sample size. The univariate descriptive statistic was conducted and the results revealed that there was non-existence of outliers with standard deviation for all the sets of variables lay within +3 and -3 range (Zikmund, 2000; Malhotra, 2004). The correlation coefficients and significance level were tested to determine the strength of linear relationships between the pairs of variables. The results showed that all the sets of variables correlated well and the results yielded correlation coefficient between 0.30 and below 0.70 among variables (Pallant, 2007), and had positive significant relationship at 0.01 level (sig.- 1-tailed). This information is important to determine whether variables that are not correlated should be excluded for factor analysis. The determinant of the correlation matrix provided the information on multicollinearity. The presence of highly correlated variables will lead to a problem of multicollinearity. However, a check on Tolerance (TOL) indicates a value of more than 0.10 and the Variance Inflation Factor (VIF) is less than 10 for all the independent variables, which confirms that the possibility of multicollinearity is not detected (Pallant, 2007) - see Table 2 and Table 3 below.
4.4
Standardized Multiple Regression Analysis Testing the Relationship between Explanatory/Dependent Variables and Criterion/Dependent variable
To determine which of the explanatory/dependent variables (quality, price, brand name, product information, household income, number of children and interpersonal influence) included in the model contributed to the prediction of the criterion/dependent variable (repurchase intention), a standardized multiple regression analysis using enter method was conducted for the different products categories used in the research. The detailed results of the tested model are explained and provided in Table 2 and Table 3. Column (i) depicts the product category used in the research and column (ii) shows the sets of explanatory variables/independent variables. Column (iii) shows the beta value which indicates the importance of each explanatory variable in terms of the contribution of each variable in predicting the criterion variable, when the variance explained by all other variables in the model is controlled for. Column (v) shows the significant value of the relationship between the explanatory variables and the criterion variable. This column shows whether or not each of the explanatory variable, is making a statistically significant unique contribution to the equation. Column R-squared shows how much of the variance in the dependent variable is 134
137
Products Category
Collinearity Statistics Tolerance 0.569 0.561 0.423 0.463 0.635 0.629 0.974 0.981 VIF 1.758 1.784 2.364 2.160 1.574 1.591 1.027 1.019
Products Category
Collinearity Statistics t Sig. p-value Tolerance 0.812 0.710 0.462 0.531 0.552 0.678 0.968 0.958 VIF 1.231 1.483 2.166 1.885 1.812 1.474 1.033 1.043
Branded Perfume
Quality 0.120 2.879 0.004* Price 0.153 3.439 0.001* Brand Name 0.301 5.443 0.000* Product Information 0.119 2.222 0.027* Normative Influence 0.059 1.135 0257 Informative Influence 0.056 1.110 0.268 Household Income 0.059 1.289 0.198 Number of Children 0.043 1.119 0.264 R-squared = 0.553 (55.3%) F-value=27.097 *Dependent variable - repurchase intention; ** Significant at <0.01; * Significant at <0.05
138
Instant Noodle
Products Category
Quality Price Brand Name Product Information Normative Influence Informative Influence Household Income Number of Children R-squared = 0.565 (56.5%) Variables
Collinearity Statistics t 1.168 3.321 4.334 0.732 -1.462 1.232 1.074 1.304 Sig. p-value 0.243 0.001** 0.000** 0.465 0.145 0.218 0.283 0.193 Tolerance 0.458 0.325 0.368 0.487 0.316 0.329 0.981 0.988 VIF 2.183 3.076 2.720 2.054 3.168 3.041 1.019 1.013
Instant Coffee
Products Category
Collinearity Statistics t Sig. p-value Tolerance 0.804 0.730 0.552 0.638 0.517 0.465 0.969 0.967 VIF 1.243 1.371 1.810 1.567 1.934 2.151 1.031 1.034
Detergent
Quality 0.076 1.751 0.081 Price 0.172 3.749 0.000** Brand Name 0.340 6.461 0.000** Product Information 0.019 0.390 0.697 Normative Influence -0.084 -1.541 0.24 Informative Influence -0.010 -1.176 0.860 Household Income 0.008 0.194 0.846 Number of Children 0.012 0.300 0.765 R-squared = 0.499 (49.9%) F-value=20.383 *Dependent variable - repurchase intention; ** Significant at <0.01; * Significant at <0.05
In conclusion, since F-values are well above 1 and at least one of the independent variables is significantly related to dependent variables, hence the model can be considered as valid (Hair, Anderson, Tatham, and Black, 1995; Hair, Black, Babin, Anderson and Tatham, 2006; Pallant, 2007). In addition, interitem consistency reliability test (Cronbachs alpha coefficient) was performed to identify the consistency of the respondents answers to all the research items. The result reveals high reliability scores among all factors with Cronbachs alpha coefficient well above the recommended threshold of 0.70 and 0.80 (Nunally, 1978; Malhotra, 2004) - Please refer to Appendix 4. Principal component factor analysis was conducted and the overall measure of sampling adequacy for the set variables included in the analysis for each product category met the Kaisers criterion (KMO) and all the sets of variables exceeded the minimum requirement of 0.50 and significant Barletts Test of Sphericity was revealed (see Appendix 5).
5.
Essentially, the research indicated that the majority of the consumers who patronize the departmental stores, supermarkets, malls and hypermarkets were young executives, single people with an income between RM2000 to RM4999. 139
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References
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Appendix
Appendix 1: Items used in the Research Quality Dimension 7 items 1. Getting very good quality is very important to me. 2. In general, I usually try to buy the best overall quality. 3. I make special effort to choose the very best quality products. 4. My standards and expectations for the products I buy are very high. 5. I shop quickly, buying the first product or brand I find that seems good enough. 6. A product doesnt have to be perfect, or the best, to satisfy me.* 7. I really dont give my purchases much thought or care.* Price Dimension 7 items 1. 2. 3. 4. If other important factors remain the same, price is an important criterion for me. Price is the most important factor on my decision to purchase or not to purchase. The money saved by finding low prices is usually not worth the time and effort. * I look carefully to find the best value for the money when selecting for a product/ brand. 5. The time it takes to find low prices is usually not worth the effort. * 6. It is important that I buy at sales prices. 7. The lower priced products/brands are usually my choice. Brand Name Dimension 7 items 1. 2. 3. 4. 5. 6. 7. When it comes to buying a product, I rely on brand names to help me choose among the alternative products/brands. I would be more likely to purchase a product that had a well-known brand name. The brand name would play a significant role in my decision to purchase or not to purchase. When faced with deciding among two or more brands of product, I will depend on the brand name of each product to help me make a choice. If faced with choosing between two brands with similar features, I would select the better known brand name. The brand of a product is important to me when deciding which product/brand to purchase. Regardless of what features competing stores/shops may offer, I would buy the brand of that I trust most.
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Normative Influence dimension 8 items 1. 2. 3. 4. 5. 6. 7. 8. I rarely purchase the latest products/fashion styles until I am sure my friends approve of them. It is important that others like the products I buy. When buying products/brands, I generally purchase those brands that I think others will approve of. If other people can see me using a product, I often purchase the brand they expect me to buy. I like to know what brands make good impressions on others. I achieve a sense of belonging by purchasing the same brands that others purchase. If I want to be like someone, I often try to buy the same brands that they buy. I often identify with other people by purchasing the same brands they purchase.
Informational Influence 4 items 1. To make sure I buy the right product or brand, I often observe what others are buying and using. 2. If I have a little experience with a product or brand, I often ask my friends about the product/brand. 3. I often consult other people to help me choose the best alternative available from a product class. 4. I frequently gather information from friends or family about a product before I buy. Note: Measured using a 7-point Likert Like scales were used anchored with 1 = strongly disagree and 7 = strongly agree - adapted from Sproll and Kendall (1986), Lichtenstein, Ridgway, and Netemeyer (1993), Bristow, Schneider, and Schuler (2002), Aliman (2005), Bearden, Netemeyer, and Teele (1989), Kropp, Lavack, and Silvera (2005) Repurchase intention 8 items 1. 2. 3. 4. 5. 6. 7. 8. I feel a commitment to continue buying this product/brand. I feel loyalty to this product/brand. I intend to buy this product again. I plan to buy this product/brand in future. This product/brand pleases me. This product/brand satisfies me. I am happy with this product/brand. Buying this product/brand in the future would be a wise choice. Note: Measured using a 7-point Likert Like scales with 1 = strongly disagree, and 7 = strongly agree - adapted from Levesque and McDougall (1996).
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2.
3.
4.
5.
6.
7.
8.
153
10.
33.60 2.20 13.40 49.60 1.20 100.00 16.40 44.60 29.00 10.00 100.00
11.
12.
154
Personal Computer
Fashion Clothing
Levi Nike Adidas Nicole Calvin Klein Silky Avon Body shop Breeze Daia Fab Maggie Indomee Mee Sedap Nescafe Kapal Api Indocafe
Foreign made
RM1000 to RM3000
Special occasion sales promotion Special occasion sales promotion Weekly monthly
Foreign made
RM100 to RM200
Own use and few for gifts giving Own use and few for gifts giving Own use
Friends Spouse Family members salesperson Friends Spouse Family members salesperson Spouse Family members Friends Spouse Family members Friends Spouse Family members Friends
Branded Perfume
Foreign made
RM100 to RM200
Detergent
Supermarkets
Local made
RM10 to RM21
Instant Noodle
Supermarkets
Weekly monthly
Local made
Price
Own use
TV ads
Instant Coffee
Supermarkets
Weekly monthly
Local made
Price
Own use
TV ads
155
Personal Computer
Fashion Clothing
Branded Perfume
Detergent
Instant Noodle
Instant Coffee
Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension Price Quality Brand Product information. Normative influence Informative influence Total Repurchase intension
7 7 7 6 8 4 39 8 7 7 7 6 8 4 39 8 7 7 7 6 8 4 39 8 7 7 7 6 8 4 39 8 7 7 7 6 8 4 39 8 7 7 7 6 8 4 39 8
156
Personal Computer
Fashion Clothing
Branded Perfume
Detergent
Instant Noodle
Instant Coffee
Quality Price Brand name Product information Normative Influence Informative influence Quality Price Brand name Product information Normative Influence Informative influence Quality Price Brand name Product information Normative Influence Informative influence Quality Price Brand name Product information Normative Influence Informative influence Quality Price Brand name Product information Normative Influence Informative influence Quality Price Brand name Product information Normative Influence Informative influence
Sig. 0.000
0.877
Sig. 0.000
0.887
Sig. 0.000
0.903
Sig. 0.000
0.929
Sig. 0.00
0.939
Sig. 0.000
157