Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Office of the Vice President for Academic Affairs
OPEN UNIVERSITY SYSTEM

A Study on Consumer Buying Behavior of Young Adults

Towards Coffee Brand

Group 3

Juabe, Ace York

Box, Christian

Villalon, Angelica

Hermosisima, Ireah Marie

Dela Paz, Romeo

4TH Floor, NALLRC, PUP A. Mabini Campus, Anonas Street, Sta. Mesa, Manila 1016
Direct Line: 335-1789 | Trunk Line: 335-1787 or 335-1777 local 773
Website: www.pup.edu.ph | Email: ous@pup.edu.ph

THE COUNTRY’S 1st POLYTECHNICU ISO 9001:2015 CERTIFIED

CERTIFICATE NUMBER: AJA18-0190
Introduction

The study of people and the products that help to form their atttitudes is known as consumer

behavior (Solomon, M. 2015). The primary consumers purchasing habits are referred to as

consumer buying behavor. Socal science fields of Anthropology, Psychology, Sociology and

Economics are also used to study consumer behavior. The five major factors affect a

consumers buying behavior are; cultural, social, personal and psychological factors. A customer

goes through a decision process when buying any products. This method has up to five stages:

problem identification, information gathering, alternative evaluation,purchasing decision and

post-purchase behavior.

Moreover, consumer buying behavior refers to a person’s attitudes, desires, intentions, and

decisions when buying a products or services. There are three level of decision making;

Extensive problem solving, Limited problem solving, and lastly, Routinized response behavior.

Extensive Problem Solving is the initial stage of decision-making, where the buyer has no

preference for a particular product or service. Limited Problem Solving At this level, the buyer

has inadequate or incomplete information about the product, market or the brands operating in

it. Lastly, Routinized Response Behaviour is where the buyer is entirely aware of the products

offered by different brands and the features, pros and cons of each product. Therefore, to make

a buying decision, he/she look for a comparative study of the different brands and the products

available in the market.

Through personal, social and psychological factors of consumer buying behavior. This study will

examine the factors that influence the purchasing decision of Young adults. The researchers will

use the coffee brands as a subject on this study. Nowadays, coffee is a commonly purchased

product, and the decision to buy it can be made routinely or without much thinking. The

objective of this study is to see if the personal, social and psychological factors influence the

buying behavior of Young adults. It also to know and gain knowledge about how the puchasing

decision process of the respondents being made. It is interesting to study how Young adults

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 came to choose a particular coffee brand, as well as the influence of personal, social and

psychological factors.

Theoretical Framework

Why Marketers Study the Consumer Behavior ?

According to Kotler, customer behavior is a challenge that has a significant impact on

corporations’ marketing decision-making process every year. Years ago, daily practice was

sufficient to comprehend the buyer behavior. The market has increased in size in recent years,

and businesses have lost direct touch with their customers. As a result, it is critical for

businesses to research their customers in order to comprehend their behavior. Marketers can

run various marketing campaigns dependeing on the target market’s beliefs, desires, and

characteristics. Marketers study consumers buying patters to solve where they buy, what they

buy and why they buy. However, why consumers buy a specific product is not easy to solve

because the answer is locked deep within the consumers’ mind. (Kardes et al. 2011;

Kotler&Armstrong 2010)

Input Output

External stimuli The Buyer’s Black Box The Buyer’s Buying

Decision

Marketing Environmental Buyer Buyer Decision The Choice of:

Stimuli Stimuli Characteristic Process
Product
Product Economic Cultural Recognition of the
Problem Brand
Price Social Social
The search of Dealer
Advertising Political Personal Information
Quality
Distribution Technological Psychological Evaluation
Purchasing timing
Decision

Post-purchase
Decision

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Figure 1. Buyer Behavior Model of Philip Kotler

The external stimuli are the first factor that businesses must consider in this model. The

external stimuli are classified into two categories. The first one is marketing stimuli, that

consist of: Products, Price, Advertising and Distribution. Those characteristic are the most

important for the product, which businesses can control and alter in order to gain a

significant market share. Environmental stimuli is the second group of external stimuli, this

is not connected to the company and also to the consumers. Economic, technical, political,

and cultural factors all fall into this group.

The buyer’s black box is influenced by external stimuli. The buyer characteristics and the

buyer decision process are also included in this group. There are four buyer characteristics

such as cultural, social, personal, and psychological. Since these things are personal to each

individual, it is extremely difficult for the organization to obtain information or exert

control over them. The buyer’s decision process is another component of this black box.

This section includes all of the previously discussed considerations, including external

stimuli and buyer characteristics. Consumers will have different need, as well as different

ways and preferences in the decision-making process. Depending on those factors, it’s also

necessary to remember that this process is influenced by the product.

The buying decision is the last or final stage in the process (Pieters, R. 1993). In this section,

the buyer must determine which product best meets his or her needs. Some aspects of the

purchase, such as the product, brand, or dealaer, require the buyer to make a decision.

Researchers attempt to manipulate this final phase by studying the buyer’s black box.

Researchers will accomplish their key goal if they have accurate knowledge about their

customers’ buying behavior.

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Factors Influencing Consumers Buying Behavior

The buyers black box is the second component of the purchasing behavior model. In this

section the characteriscs and decision process of buyers are involve. Theres a major impact

those factors on the decision making process of consumer. (2001, P. Kotler)

Figure 2. Factor Influencing Consumers Buying Behavior

Cultural
Culture
Sub-culture
Social Class

Social
Preference groups
Family
Role and Situation

Psychological
Personal Motivation
Age and Life cycle state Perception
Buyers
Occupation Leaning, Beliefs and
Economic situation, etc. Attitudes

Consumer buying behavior are influenced by cultural, social, personal and psychological

factors or characteristics that can not be controlled by the marketers. (Armstrong, G., et al,

2005; Perez, S. & Martinez, B. 2008). Consumer behavior is a function of human behavior,

and advertisers or marketers may predict how customers will act in the future while

making purchase decisions by analyzing past buying behavior. (P. 160 in Kotler&Armstrong,

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2010). This study will focus on the social, personal and psychological characteristics of

consumer behavior.

Factors that influence consumers’ purchasing decisions are referred to as consumer

behaviour. These factors are divided into four categories based on their characteristics:

cultural, social, personal, and psychological factors. The research limited the scope of the

subject in order to have a manegable study. The researcher intentionally left out the

cultural aspect, because Young adults is a relatively small group and the differences in

culture are not so significant. It also the researcher will define and explain the cultural and

social factor as a one goup.

Social Factor

The opinion of leaders, reference groups, persons family, culture and social class can

influence the want, beliefs or values of consumer. Consumers behavior is strongly

influenced by the ledears opinion and reference group. Influencial people are used in

businesses to attract the buyers.

Marketers may use the occupation, education, income, resourcea, race, ethnic groups and

possessions to divide the population into different social classes, according to Beaden. The

styles, quality, and quantity of products that an individual buys or uses are all influenced by

their social class to some degree. The collection of beliefs, thoughts, and behaviors shared

by a homogeneous community of people and passed on to subsequent generations is

referred to as culture. What is appropriate in terms of product marketing is frequently

determined by culture. What people wear, eat, live in, and travel depends on their culture.

Religious groups may sometimes influence consumer behavior, mostly because they set

such standards like, certain religions prohibit the consumption of alcohol.

Individuals play a variety of roles in their daily lives. Each function consists of activities and

attitudes that an individual is required to conduct in accordance with the people around

him. (Kotler&Armstrong, p. 170, 2010). Individuals’ social status reflects their position in

social classes based on factors such as money and wealth, education, and occupation.

Status is important in many cultures, and people want to be admired by others. Being good

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in life or being born into wealth will help you gain social status. The choice of product and

brand also represents one’s social position and status. (Wright, p. 360, Wright 200.)

Personal Factor

Young people buy products for a variety of purposes that older people do not. (P. Miniard,

2002) A persons personal characteristic are unique. Some of them can be a buyers age and

life cycle state, occupation, sex or the encounters that you’ve had in your life, family

situation and they may all have an impact to the buyng decision. It’s also critical to identify

who in the family is responsible for making decisions, since often only one family member

makes decisions, while other times decisions can be made by consensus.

Psychological Factor

The four psychological factors that can influence the buying behavior of consumers are:

motivation, perception, learning and beliefs and attitudes.

Motivation is the internal emotion that drives people to purchase a commodity in order to

meet a need. This has a link to Maslow’s hierarchy of needs.

Morality,
Creativity,
Spontaneity,
Problem solving,
Lack of prejudice,
Self-actualization Acceptance of facts

Self-esteem,
Confidence, achievement
Esteem
Respect of others, respect by others

Love/Belonging Friendship, Family, Sexual Intimacy

Security of body of employment of resources

Safety
Of morality of the family of health of property

Physiological Breathing, food, water, sex, sleep, homeostasis, excretion

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Figure 3. Maslow’s hierarchy of needs

The most well-known psychologist who has looked at these human needs is Abraham

Maslow. He wanted to know why people are motivated by different needs at different

times. (P. 173 in Kotler&Armstrong, 2010). Maslow’s hierarchy of needs is depicted in Figure

3, with the most pressing needs at the bottom and the least pressing needs at the top. The

basic rule is to take care of the most basic needs first, then work your way up the ladder.

When the need is met, it no longer serves as a motivator, and the individual shifts his or

her attention to the next most critical need. Maslow’s needs are as follows:

1. Physiological: basic need such as sleep, food or water.

2. Safety: need to feel secured and protected.

3. Belongingness: need to feel loved and be accepted by others.

4. Ego needs: to accomplish something and have status among others.

5. Self-actualization: to have enriching experiences and feel self-fulfillment. (Solomon

2004, p. 122.)

Perception is related to various concepts such as taste, smell, and touch. When people try a

centain product, they have an impression based on their previous experiences with the

product as well as their knowledge. Armstrong, G. (2001).

The business will affect people’s ability and knowledge, as well as their opinions about a

product. Marketers can manipulate the picture of a product by providing new knowledge

or a free sample. They will do this when introducing a new product to the market, as well as

when changing the logo or idea of an existing product.

People may have either a positive or negative attitude toward a product based on their

attitudes and feelings. This feeling can arise as a result of their personal experiences or as

a result of their interactions with others. For example, if you try a hamburger and have a

positive experience (good taste, good price), you will most likely buy the same hamburger

the next time. ( Saunders, J. 2001)

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Personality and lifestyle, in deciding whether or not to use a certain product, personality

has a large influence. It is critical for businesses to understand their target market’s

mindset in order to influence them. It is also important to understand their preferred way

of life; people who prefer a natural and healthy lifestyle are not the same as those who

prefer fast food and city life.

Lastly, it is critical for marketers to understand all of the factors that influence consumer

behavior, like, when making forecasts on how the market will respond to certain new

products or evaluating the positioning or perception of existing products on the market.

(Bearden, 1992)

Decision Making Process

Before making a purchase, a buyer goes through five phases of his or her decision-making

process. The customer recognizes the need, collects information, considers alternatives,

and makes a buying decision during these stages. Regarding the actual purchase, the

consumer engages in post-purchase conduct, in which he or she assesses the degree of

satisfaction obtained. Kotler and Armstrong (2010), p. 177. According to Kotler and

Armstrong (2010), the consumer can skip a few stages during a routine purchase.

Furthermore, post-purchase behavior is only briefly described in this theory section of the

study because it is part of the buying process, but it is left out of the empirical section of

the study. This restriction was imposed because the emphasis is purely on the purchasing

process, rather than on the actions taken after the purchase.

Needs Recognition and

Problem Awareness

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InforInformation Search
 Evaluation Alternative

Purchase

Potst-Purchase
Evaluation

Figure 4. Consumers decision-making process (Riley 2012)

Need recognition occurs when a consumer exactly determines their needs. Consumers

may feel like they are missing out something and needs to address this issue so as to fill in

the gap. When businesses are able to determine when their target market starts

developing these needs or wants, they can avail the ideal opportunity to advertise their

brands. Marketers are trying to create demand where consumers are encouraged to use a

product regardless of the brand they choose. Marketers will try to convince consumers to

choose their brand instead of others. (Solomon 2004, p. 297.) Another classification type of

need recognition includes

1. Functional need: the need is related to a functional problem. The consumer purchases a

washing machine to avoid doing laundry by hands.

2. Social need: the need comes when a consumer wants social recognition or desire

belongingness. The consumer can purchase luxury items to look good in front of others.

3. Need for change: the consumer feels need to change. This can result in the purchase of

new clothes or furniture to change current appearance. (Perreau, 2014.)

The information search is the second stage in the buyer decision process tends to change

continually as consumers require obtaining more and more information about products

which can satisfy their needs. Information can also be obtained through recommendations

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from people having previous experiences with products. Consumers may gather

information from a variety of outlets, including communication with family and friends,

reading magazines, conducting an internet search, and handling the product. The amount

of searching you do will be largely determined by your motivation, knowledge obtained

and satisfaction gained from the search. When making a final brand selection, consumers

can us this information to eliminate some brands. (Kotle&Armstrong, 2010)

After gathering infoormation, the consumer will be able to weigh the various potions. The

evaluation of alternatives will differ depending on the custoner and purchase. (Wright,

2006) Customers in some cases make little or no evaluation and buy on impulse and

intuition. A habitual decision process can be responsible for cases where little or no

evaluation of alternatives is used. Consumers’ evoked collection refers to the alternatives

that are actively considered during the selection process. This evoked collection includes

products or brands that the customer is already familiar with, as well as those that are

prominent in the retail setting. Even if a customer considers a large range of options, the

evoked collection normally only contains a few of them. There are a few features that these

alternatives have in common. (Solomon, p. 305, 2004.)

At the fourth stage, the customer has now determined what to buy and where to buy it

based on the information they have collected. At this point, a consumer has either weighed

all the evidence and reached a rational conclusion, made a decision based on emotional

connections/experiences, or fallen prey to advertising/marketing strategies, or a mixture of

all three. There are a variety of variables that can influence a consumer’s purchasing

decision, such as other people’s opinions or marketing-created brand values.

(Kotler&Armstrong, 2010.) Consumers can make mental shortcuts to ease buying decisions,

which can lead to rash decisions. Particularly when only a small amount of problem solving

is done prior to making a decision. Shortcuts can range from generalized ideas like “higher

priced goods are higher quality” or “buy the same brand as last time” to more concrete

ideas like “buy the same brand that my mother used to buy.” These shortcuts can end up

being detrimental to the user. (Solomon, 2004.)

Post-purchase behavior is the final stage of the buying process. The consumer will evaluate

his or her level of satisfaction after purchasing the product. If a customer is dissatisfied

with a product, this indicates that their expectations were not met. Khan (2006) (p. 168.) If

the product meets expectations, the customer will be pleased and willing to spend more
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money in the future on this particular brand. Moreover, high levels of customer satisfaction

can lead to brand loyalty. This normally occurs when a customer’s expectations are met. (P.

91 in Kardes et al., 2011).

Level of Consumer decision making

The researchers will use the Sheth-Howard’s Theory of Buyer Behavior as a basis for the

analysis of the buying behavior of respondents in terms of buying a Coffee Brand. Sheth and

Howard’s Theory of Buyer Behavior states that a buying behavior is more or less repetitive, and

the buyer establishes purchase cycles for various products which determine how often he will

buy (Howard&Sheth, 1969).

Howard J.A and Sheth J. developed the three level of decision-making those are: (1) Extensive

problem solving, (2) Limited problem solving, and lastly, (3) Routinized response behavior. This

study will use the third level of decision-making of the theory due to the fact that the

respondents are still buying a product without much thinking or routinely.

In 1969, Howard and Sheth said that the routinized choice behavior or routinized response

behavior occurs after sufficient number of ‘trials’ or purchases of a particular brand. With each

subsequent purchase, the routinized decision behavior becomes repetitive, and the decision to

purchase the product again needs little or no decision making. Routinized choice behavior is a

characteristic of being loyal to a brand as well (Howard&Sheth, 1969). The study will try to see

the level of loyalty and satisfaction of the respondents in terms of buying a Coffee Brand.

Conceptual Framework

In order to have a direction in the study. The researchers provided a conceptual framework.

Factors Influencing
Comsumer Buying
Behavior

Survey Questionnaires Young Adults Purchasing

Decision Making Decision
Process Statistical Tool for data
treatment Recommendations

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Existing Practices

A study done by

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