A STUDY OF COMSUMER PREFERENCE AND THEIR BUYING CHOICE TO-

WARD SMALL SIZE OF BUSINESS

By:
Mary Cris M. Magpantay
Ejay Y. Martinez
Eidlyn Anne Martinez
Juliana S. Suarez

A RESEARCH PAPER
PRESENTED TO THE
FACULTY OF SAINT ANNE ACADEMY
BINUBUSAN, LIAN, BATANGAS

ACCOUNTANCY, BUSINESS AND MANAGEMENT

SAINT ANNE ACADEMY
BINUBUSAN, LIAN, BATANGAS

2023
 CHAPTER II

CONCEPTUAL LITERATURE
Consumer’s Preferences. consumers‟ preferences shifted from only emotional to
both emotional and rational while buying their preferred product or service. They are
looking for more benefits than they are getting versus the cost it is to them. In this, we
can see the young consumers‟ buying decision making which does not depend on one or
two attributes or one or two brands. It may have combinations. There is a wide scope to
the young consumers when companies are offering a competitive edge within the ex-
pected price range of young consumers. There are several studies conducted in developed
countries. No study was carried out to denote exclusively young consumers‟ mindset to-
wards automobiles, attributes that are influencing buying decisions. Many studies proved
that young consumers‟ buying preferences are more on branded clothing, automobiles,
and cell phones. Hence this study has taken up to study the young consumers‟ buying
preferences in an automobile (midrange car) attribute. There is a paucity of specific liter-
ature also. The main purpose of this paper is to identify the most influencing attributes of
a product on young consumers‟ who are in the age group of 21 to 35. The present study
was done just a month before the pandemic across India through an online survey. The
conjoint analysis is administered to identify the most preferable attributes rank wise. This
study found the fact that young consumers have a higher preference for a brand in a car
purchase. At the same time, the preference is going for low priced cars. It is a fact from
this study that there is the least priority for Safety in a car by young consumers (Sirigup-
pi.et.al., 2020).
Market provides a key to gain actual success only to those brands which match
best to the current environment " imperative" which can be delivered what are the people
needs and they are ready to buy at the right time without any delay. It is perfectly true but
this also depends on availability of good quality products and excellent taste and services
which further attract and add a golden opportunity for huge sales. This also depends on
the good planning approach and provide ample opportunity plus sufficient number of
products for sales in the coming next financial year. This study involves study of con-
sumer's preferences for soft drinks. After going through a detail analysis of market be-
havior and future prospect, it may also provide an opportunity to soft drinks Company to
frame a good future plan to satisfy maximum needs of the customers and established its
guiding role in the market of Northern Province and throughout the country as a whole.
The study report will also provide an opportunity to delineate its market potential busi-
ness areas, products & services are to be offered by the company to the customers. This
study report also provides the various factors affecting the services. Marketing Division
of Soft Drinks Company has to keep in mind various factors specially while preparing a
plan for marketing its product or services. Detail description along with analysis of sur-
veyed data is being presented in this report (Journalofbusiness.org, 2015)
 This study offers and validated a comprehensive approach to explain and predict
the beliefs influencing consumer needs and the motivations behind their purchase deci-
sions. The study aims at understanding the consumers purchase intentions on the basis of
responses given by the respondent. In order to attain these objectives, a sample of 500 re-
spondents belonging to three cities of Punjab: Jalandhar, Amritsar and Ludhiana; and
Union territory of Chandigarh was drawn. Non-probability convenient sampling was
adopted for selecting the respondents. It was however found that reasons such as 'a big
pack is difficult to store' and 'difficult to handle' primarily lead them to prefer a micro-
pack. "Advertisement on print and electronic media' was the most preferred source of in-
formation and 'past performance' of a micro-pack was the most significant attribute while
making a purchase decision. 'Wide assortment of a single brand' emerged as the most per-
suasive effort undertaken by retailers for building customers perceptions towards a brand.
A store that was the most "Neat and tidy' was the most favored one. Respondents ex-
pressed that in case of an unfortunate purchase, they preferred to 'forget about it' and
switched to another brand when they were 'impressed by the advertisement of a new
brand' (Mehra & Singh, 2016).
Buying Choice. We will now bring together the tastes and preferences of the con-
sumer (given by his or her indifference map) and the income and price constraints faced
by the consumer (given by his or her budget line) to examine how the consumer deter-
mines which goods to purchase and in what quantities to maximize utility or satisfaction.
As we will see in the next chapter, utility maximization is essential for the derivation of
the consumer’s demand curve for a commodity which is a major objective of this part of
the text (Global.oup.com., 2008).
In this study, we explore how the entrance of new international brands affects
market dynamics in a market where national, international and private brands are present.
The entire focus of the present research is to understand the phenomena of consumer
choice and preference in the backdrop of such a market. We model consumer choice in
the context of these different categories of brands by using a multinomial discrete choice
model. The estimated model provides us with several diagnostic findings of managerial
interest especially with respect to what kinds of product attributes differentially affect
choice probabilities of different categories of brands – the international, the national and
the private (Ghose & Lowengart., 2013).
The purpose of this study is to explore the influence of consumers’ choice deferral
behavior on their intertemporal choice preference. The empirical study shows that con-
sumers’ choice deferral behavior can significantly affect their intertemporal decision
preference through the level of hopefulness. Compared with non-choice deferral behav-
ior, choice deferral behavior can improve the level of consumers’ sense of hopefulness,
which then makes them prefer larger-longer interests in intertemporal decision-making.
The effect of consumers’ sense of hopefulness on their intertemporal choice preference is
moderated by their perceived information integrity. When the perceived information in-
tegrity is low, the effect of hopefulness on intertemporal decision preference will be en-
hanced, but when the perceived information integrity is high, the effect of hopefulness on
intertemporal decision preference will not be affected. In addition, the theoretical and
practical significance of this study and the prospect of future research are also discussed
(Wei. et.al., 2021).
Small size business. Small businesses are the engine of growth and development
of any economy, generating jobs and income, stimulating competition, sources of innova-
tion, creating possibilities for business ventures and etc. (de Kok et al., 2011). The world
economic crisis, which caused series of unexpected events, further demonstrated the vul-
nerability of large companies and the consequences, and even more revealed the impor-
tance of small business for economic recovery in the post-crisis period. The huge pres-
ence of small businesses in any economy provides a basis for reviewing various aspects
related to their operations. In terms of increasing the importance of small business for the
recovery and growth of world economy, growth of small businesses imposes itself as a
relevant and important research area. Additionally, the high failure rate, i.e. mortality of
small businesses, increases the interest towards overcoming issues related to growth of
small business (Iliev & Debaliev., 2015).
Over the years researchers and academics have used several terminologies to elu-
cidate small business growth. However, underlining events which each entity undergo
still remains more or less the same. The purpose of this quantitative study was to investi-
gate the impact of selected variables on the growth of small businesses in the eThekwini
Region of KwaZulu Natal in South Africa. From a total population of 220 small busi-
nesses with more than ten years of active business operations within the research settings,
a sample of 119 owners-managers were randomly selected to provide empirical data.
Data collection was based on primary data, by using closed ended questionnaire as the
main research instrument. The bivariate correlation analysis is employed to ascertain the
set study objective. The final outcomes revealed that business growth might not be posi-
tively linked to educational achievement of owner-managers. The researchers recommend
that entrepreneurial education should be introduced and be prioritised to every grade 12
learners across the educational settings in the research settings. Further collaboration is
required between educators and trainers of potential industry-based entrepreneurs across
the eThekwini Region to enable all the role players utilise the rich experiences of mem-
bers. The level of collaboration could be of utmost benefits to educators in all the learn-
ing institutions throughout the region in designing entrepreneurial training programmes
and education curriculum in all the schools (Mahohoma & Agbenyega., 2022).
Small businesses are important for many reasons – job creation, exports, innova-
tion – but perhaps their biggest impact is on their local communities. Leslie Hassler, a
small business scaling strategist, explained how successful small businesses leverage
their resources within their communities. “As small businesses continue to scale, their
impact on the economy strengthens as they hire more people and build more connections
with other small businesses and nonprofits, which knits an ecosystem of personal connec-
tions,” Hassler told Business News Daily. “Today’s small business owner is not only
concerned with their personal success, but the success of their team and their communi-
ties.” In fact, the AMEX 2018 Small Business Economic Impact Study found that ap-
proximately 67% of every dollar spent at a small business stays in the local community.
This cycle stimulates the economy (Schooley S., 2023).
RESEARCH LITERATURE
According to Ramachandran & Basariya, (2020), aims that today's consumers are
too smart to buy their needs through various means. But before buying their needs, they
go through various online sites and social media review about product performances and
price. While surfing this information they can able to evaluate its real value and price ad-
vantages, since online establishment need not spend cost for showroom with staff. Con-
sumers need not roam here and there to various shops to evaluate the product perfor-
mance and its cost. Moving from one place to other is tedious journey and time-consum-
ing part. It is also difficult to ensure their required models are available or not. Moreover,
consumers can view forthcoming new models in the manufacture's site whereas these de-
tails may not be shared in showrooms. Earlier accessing internet is complicated and needs
a system to view. Now this can be accessed through smart phone. The prices of smart
phone were also drastically lowered. After the entry of Jio network, the cost of one GB
data were brought down to Rs 15/to Rs 20/-from Rs 250/-. This could be an affordable
price for the common people. With the above improvements, the smart phone usage in
the country was increased and every smart phone user are in a habit of surfing the internet
or interacting in the social media now and then. While so, everybody can able to see the
various products in the online markets and its review. This will provoke the user to buy
the products through online. In America ToySaras and BabySaras retail showrooms of
baby products were forced to close during 2018, since most of Americans preferred to
shop through online and few others are in the same stage. The above situation may also
arise to Indian Market in the near future. The study vouched the same scenario in near fu-
ture.
The paper is concerned with the measurement of emotions and the study of the
role of emotions in consumer choice. Contemporary neurological findings suggest that
emotions may play a role in its own right, quite different from the way in which they
have been considered in traditional consumer choice behaviour theory. A large-scale
study including 800 respondents, covering 64 brands, provide findings on emotional re-
sponse tendencies for the brands, and relate these to involvement, type of need gratifica-
tion, purchasing behaviour, etc.
According to F. Hansen. et.al, (2004) Aims that in the following, we shall discuss
the neglected role of emotions in the study of consumer behaviour. Students of consumer
behaviour have predominantly been concerned with cognitive theories of choice and in-
formation processing. Recent neurological and physiological research has pointed at the
importance of emotions in understanding human behaviour. They have particularly em-
phasized that emotional processes are unconscious brain processes resulting in observable
bodily changes such as freezing behaviour, rising blood pressure, increasing stress hor-
mones and startling reflexes. It is discussed how emotions may play a particular role in
consumer behaviour. Since most such behaviour occurs at a low level of involvement,
even though all kinds of specific emotional responses may be generated in the study of
consumer behaviour, it may be useful to postulate a relatively simple positive-negative
response potential to be associated with all items of consumer choice, brands, categories,
public services etc. Departing in a clarification of the most important categories of con-
sumer behaviour situations, the emotional processes associated herewith are discussed. In
this context, the important viewpoint is emphasised that feelings depend upon emotions
and both influence consumer choices, although they do so in different ways. Here it is
proposed that feelings are conscious or unconscious counterparts of the underlying more
elementary emotional processes governing behaviour. It is also proposed that systemati-
cally studying feelings may allow us to infer about the underlying emotional processes.
Thus an important distinction between feelings and emotions is emphasised. In a large-
scale project involving 800 respondents, 24 words representing feelings are related to a
total of 64 brands distributed in 16 product categories. The feeling words comprise a
standard list developed departing in qualitative research and conferring with existing re-
search on feelings and emotions. For each brand and for each product category, it is mea-
sured what feeling words people find have meaning and for those that do describe mean-
ing, they are asked to grade the degree to which the feeling is associated with the brand or
category. This resulted in 64 brand and 16 product category data sets covering associa-
tions between feeling words and the particular brand/brand category. By studying these
data systematically, it is proposed that underlying any of these can be identified two basic
dimensions, one explaining positive behavioural tendencies and one expressing negative
behavioural tendencies. It is shown, how different emotional response tendencies are
aroused by brands with which consumers involve differently. Similarly, it is important for
the amount of emotional response potential being generated whether they are faced with
products that simply solve problems for consumers (motivation being problem avoid-
ance), or whether need gratification is dominant (with approach generating emotions at
stake). These emotional behavioural tendencies may associate with different feeling
words for different brands and categories and thus depend upon different information
about the brand or the categories. Also, it is shown how increasing positive and decreas-
ing negative response potential tends to associate with brand loyalty and brand connect-
edness. It is concluded that this way of dealing with emotions provides new ways of
tracking the effect of marketing communication, identify the particular messages that
may be more likely to increase the positive emotional response potential (or decrease the
negative vice versa) and to compare the standing of brands in different product categories
and in some instances across product categories also. In a sense, the net emotional re-
sponse strength (NERS) may be seen as an estimate of the brand equity. This NERS play
a different role, depending upon how the consumer decision process is. With rutinized
choices it may be the only determinant of the outcome and with more complex consumer
4 choices it may become one among several factors (price, perceived attributes of the
brand, availability, etc.) influencing the choices.
According to Madalina B. (2012), aims that the consumers' freedom of choice is
an aspect major importance in a consumer society, and it is important to analyze the vari-
ous implications of this concept on the actual choice. The paper aims to highlight some
main ideas in favor and against whether the theory of rational choice is well founded in
practice, with the objective to identify some important research areas insufficiently dis-
covered related to consumer choice. In order to achieve this, the paper will present the
basic theory of rational choice and the critics' opinion on three main elements of the the-
ory, resulted from insufficiently tested assumptions. Then it will provide an analysis of
the implications of all these perspectives on the consumer choice in practice and every-
day life. The results consist the identification of some important aspects of consumer
choice that need to be further researched, concerning the impact of experience on the de-
velopment of the choice ability of each individual, as well as the learning needed and
methods best conceived to tackle the purpose of increasing the consumers capacity to
choose, more or less rationally, but certainly to their best interest.

SYNTHESIS
This paper aims to identify the most influencing attributes of a product on young
consumers in the age group of 21 to 35. It was conducted just a month before the pan-
demic across India through an online survey and found that young consumers have a
higher preference for a brand in a car purchase, while going for low priced cars. It also
found that there is a least priority for Safety in a car by young consumers. This paper
aims to identify the most influencing attributes of a product on young consumers in the
age group of 21 to 35. It was conducted just a month before the pandemic across India
through an online survey and found that young consumers have a higher preference for a
brand in a car purchase, while going for low priced cars. It also found that there is a least
priority for Safety in a car by young consumers. This study examines how the entrance of
new international brands affects market dynamics in a market where national, interna-
tional and private brands are present. It uses a multinomial discrete choice model to
model consumer choice in the context of these different categories of brands. The empiri-
cal study shows that consumers' choice deferral behavior can significantly affect their in-
tertemporal decision preference through the level of hopefulness. The effect of con-
sumers' sense of hopefulness is moderated by their perceived information integrity. The
theoretical and practical significance of this study and the prospect of future research are
discussed. Small businesses are the engine of growth and development of any economy,
generating jobs and income, stimulating competition, and creating possibilities for busi-
ness ventures. The world eco-nomic crisis revealed the vulnerability of large companies
and the importance of small business for economic recovery. This quantitative study
aimed to investigate the impact of selected variables on the growth of small businesses in
the eThekwini Region of KwaZulu Natal in South Africa. A sample of 119 owners-man-
agers were randomly selected to provide empirical data. Data collection and bivariate
correlation analysis revealed that business growth is not positively linked to educational
achievement of owner-managers. Entrepreneurial education should be prioritised and fur-
ther collaboration between educators and trainers of potential industry-based en-
trepreneurs across the eThekwini Region is needed. Small businesses are important for
many reasons, but their biggest impact is on their local communities. The AMEX 2018
Small Business Economic Impact Study found that 67% of every dollar spent at a small
business stays in the local community, stimulating the economy. Ramachandran &
Basariya, (2020) argues that today's consumers are too smart to buy their needs through
various means, so they go through online sites and social media reviews to evaluate prod-
uct performances and price. This has led to the entry of Jio network, which has brought
down the cost of one GB data to Rs 15/to Rs 20/-from Rs 250/-. This has increased the
smart phone usage in the country, leading to the purchase of products through online
markets. A large-scale study in-cluding 800 respondents, covering 64 brands, provides
findings on emotional response tendencies for the brands, and relate these to involve-
ment, type of need gratification, purchasing behaviour, etc. Contemporary neurological
findings suggest that emotions may play a role in consumer choice.Studies of consumer
behaviour have largely focused on cognitive theories of choice and in-formation process-
ing, but recent neurological and physiological research has highlighted the importance of
emotions in understanding human behaviour. Emotions may play a particular role in con-
sumer behaviour, and a simple positive-negative response potential may be associated
with all items of consumer choice.