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Impact of Consumer Lifestyle Factors On Its Buying Decision-Making. Aisha Farah BM-26607
Impact of Consumer Lifestyle Factors On Its Buying Decision-Making. Aisha Farah BM-26607
BY
A thesis
Karachi, Pakistan
JUNE, 2020
1
Acknowledgement
This project would not have been possible without the cooperation and support of my teacher.
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Table of Contents
Chapter 1: Introduction.........................................................................................................................5
1.1) Background............................................................................................................................5
1.2) Objective/ Significance of the study......................................................................................5
1.3) Scope of the Study.................................................................................................................6
1.4) Problem Statement................................................................................................................6
1.5) Research Question.................................................................................................................6
1.6) Hypotheses............................................................................................................................6
Chapter 2: Literature Review.................................................................................................................8
2.1) Review of Literature...................................................................................................................8
2.2) Theoretical/ Conceptual Framework........................................................................................12
CHAPTER 3: METHODOLOGY...............................................................................................................13
3.1) Data..........................................................................................................................................13
3.2) Variables...................................................................................................................................13
3.3) Sample and Sampling Technique..............................................................................................13
3.4) Data Collection Instrument.......................................................................................................13
3.5) Inclusion Criteria.......................................................................................................................13
3.6) Statistical Technique/ Model....................................................................................................14
Chapter 4 : Results and Discussion......................................................................................................15
4.1) Demographic Profile.................................................................................................................15
4.2) Reliability Analysis....................................................................................................................16
4.3) Inferential Analysis...................................................................................................................17
4.4) Hypotheses Assessment Summary...........................................................................................19
4.5) Discussions...............................................................................................................................19
Chapter 5: Conclusion, Limitation and Recommendation...................................................................21
5.1) Conclusion................................................................................................................................21
5.3) Recommendations....................................................................................................................21
References...........................................................................................................................................23
3
Page
S.No. Tables
No.
1. Demographics Profiles of the Respondents 16
2. Reliability Statistics 17
3. 3.1) Coefficients Statistics 17
3.2) Correlations 18
3.3) ANOVA Statistics 19
3.4) Model Summary 19
4. Hypotheses Assessment 20
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Chapter 1: Introduction
1.1) Background
Life style is the way of living in which people work to manage their social,
psychometric, physical and economic space on the grounds of daily routine. Purchasing
decision and buying psychology in today’s world are not only typical to understand even
from the subconscious and unconscious point of view of the buyer but also it has become
even more complicated. Lifestyle of customer is very close to the taste of the marketer.
Customer lifestyle form a seller point of view understands that people divide themselves into
different groups on the grounds of how they like to use their leisure time activities, what let
them feel good and in the which way they want to use their disposable income. In Asia, life
style revolves around the customer or buyer’s background, education, family and the type of
work they do. In today’s market, it is very essential to learn how buyers react towards modern
marketing. Customer needs and likings have evolved over time. These changes are pools of
new opportunities for marketers who remain conscious and are harmful for the ones who fail
to change with the time.
The objective of this study is to know the factors of lifestyle that effects decision making
of a consumer. Lifestyle examination has often be used in developing countries as a method
for getting data on customer, which is not given by the investigation of socioeconomics
alone. The Lifestyle of people has dependably been of great interest to marketers. They deals
with ordinary typically arranged aspects of individuals and also their opinions, personalities,
interests and believes. A lifestyle from marketing viewpoint perceives that individuals sort
themselves into gatherings based on the things they like, where they want to pass their leisure
time and their incomes. The development of worldwide markets expects marketers to
comprehend the elements of the buyer’s behavior and the black box of how they make
decisions. The development of new markets makes a requirement for various purchasing
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approaches among various cultures. For advertisers to build up these distinctive
methodologies it is important to know market segmentation. Lifestyle has turned into an
essential variable in the advancement of policies of marketing. Every item has alternate
expected target customers and, therefore, separation through segmentation of market is
important to build up each segment’s wants and need. Lifestyle of a person usually reflects
his approach towards the product, his culture and values and his personal taste.
The scope of this study focuses on the effects of the lifestyle of the consumer on
decision-making process of the consumer. There are number of factors that drives or
influence the purchasing behavior and decision of the consumer but this research only aims to
study the effects that are caused by the lifestyle of the consumer.
Consumer wants to buy best of the product that is available in the market but their
lifestyle not let them reach at such level where they can satisfy their need with the best
product therefore, in order to satisfy the need, consumer buy the product which is aligned
with his lifestyle.
1.6) Hypotheses
The changes are lifestyles will road to variations in the behaviors and thinking
patterns of individuals. For this reason, opposing lifestyles will create unique behaviors and
preference while making a buying decision. By Considering the abovementioned theory and
facts the hypothesis we developed for this study is given as under. The main purpose for
these tests is to identify whether to accept the formulated hypotheses. The tests will be run at
the 95% significance level; therefore, if the probability of the observed data is smaller than
the level of significance then the data suggests the hypothesis should be accepted.
H1: There is no impact of the activity of the consumer on his buying decision.
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H2: There is no impact of the interest of the consumer on his buying decision.
H3: There is no impact of the opinion of the consumer on his buying decision.
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Chapter 2: Literature Review
Krishnan (2011) studied the relationship between the consumers' consumption and
their lifestyle. For identifying the dimensions of the consumers' lifestyle, he used AIO. The
results proved that there is a significant relationship between the products used by the
consumers and their lifestyle. He concluded that consumers choose the product based on their
connection with a specific lifestyle; therefore, marketers should have in-depth knowledge of
changing lifestyles so that they can segment and position their products efficiently. Bashir,
Zeeshan, Sabbar, Hussain and Sarki (2013) studied the impact of lifestyle and cultural values
on the Pakistani consumers purchasing decisions. They used T-test in their research, which
gave them the result that gender is the only variable in lifestyle and cultural values where the
difference exists in the purchasing decision of males and females. Correlation test gave them
the result that all the variables of lifestyle and cultural values have a significant relationship.
Lifestyle has experienced many changes and now it is measured as a personal variable
that affects decision-making. For examining the effects of lifestyle on the preference of the
consumer, multiple linear regression by OLS estimation was applied. The results showed that
there is a significant association between consumers’ lifestyle and his process of making a
decision. This can be helpful for marketers in retaining existing customers and in attracting
potential customers. (Anitha, 2016). Warayuanti and Suyanto (2015) studied that how much
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lifestyle and attitudes of the consumer influence their online buying behavior in Indonesia.
They used Structural Equation Modeling (SEM) analysis in their study. The results showed
that 20.7% of the online buying behavior is affected by the lifestyle and attitudes of the
consumer whereas remaining 79.3% is affected by the other variables.
Lin and Shih (2012) have studied the association of university students' lifestyle,
personal values and money attitudes in their buying behavior. They found that there is a
relationship between buying behavior and lifestyle, achievements are also positively
associated with buying behavior and personal values have positive moderating influence in
the judgment of buying choice. Al-Dmour, Hammdan, Al-Dmour, Alrowwad, and Khwaldeh
(2017) studied the influence of Jordanian passengers' lifestyle on their purchasing behavior of
online e-tickets. The examination of results showed that every dimension of the lifestyle that
our activities, interests and opinions are positively associated with buying behavior of the
consumers for e-ticket service.
Recent social argues that lifestyle plays a vital role in consumption, but in the modern
era, it is tough to predict about consumer buying decision, people take decision of
consumption of product very consciously because of their identities & lifestyle. A new survey
suggest that all consumers are not considering their lifestyle but some economic factors do
effect their buying behavior; like low budget, income, gender & age. (Wilska, 2002).
Hungarian university and college students conducted surveys and realistic study. They came
to the result that every group differs from other group, and consumers take decisions before
buying product based on the factors that more attractive which includes feature of the product
and not the lifestyle of consumer. (Szerenyi, Zsoka1, & Szechy, 2009)
Lifestyle of the consumer can also be identified by studying that how much they are
socially active, like in working activities, friends gathering, professionally meeting,
lunch/dinner, interest in family relations, update in fashions these factors in a person's
lifestyle differ him from other person’s lifestyle who can be a housewife who is not interested
in gatherings or parties. So socially active person's lifestyle effects his buying decisions also.
(Kwan, Yeung, & Au, 2005). A consumer can differ from others in their value of
consumption because every consumer seeks different benefits from products and brands. In
segmentation of market, some factors play an important role, which can be value of money,
social, positive, negative and emotional benefits. Some consumers are attracted through
market segments, promotions, brand marketing or product benefits and as a result, they adopt
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the product in their routine. (Orth, Shellhammer, & Lopetcharat, 2004). Comprehensive
changes in the products is the result of increasing personalization in the society and the
consumers’ behavior patterns, these factors affect the tourism. If the businessperson has great
knowledge related to customer needs, wants, and have the skill to influence the customer,
then he can easily target tourist to sell his product, because tourist likes to buy different
variety of products. (Gozalez, Spain, & Bello, 2000)
Pandey and Pandey (2013) studied changes in buyer’s lifestyle because of income,
age or social class etc. Moreover, they found out that these elements play an important part in
changing the behavior of the person. The main elements that molds the consumers’ lifestyle
is promotion, price, place and the feature of the product. Mohiuddin (2018) studied the
influence of lifestyle on the purchasing behavior of the female consumers. She opted
convenient sampling approach and found that females of Karachi are more interested in
buying foreign products compare to the domestic products. Moreover, if any new brand is
launched in the market than instead in instantly buying that brand, females chooses to first
review it from all aspects. Therefore, there is a suggestion for the domestic producers to raise
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their standards of quality. Aydin and Unal (2015) studied the influence of the lifestyle of the
consumer on their consumption pattern. The individual’s buying decision is based on the
style of the life that he is spending. The result of the survey that was conducted in
Erzurum/Turkey concluded that lifestyle of the consumer influences their consumption
pattern. The creative and visionary consumers are more informed about problems of the
environment and their approaches are positive to these problems, which their consumption
more sustainable.
The buying decision of the consumer and the lifestyle of the consumer has a unique
association. However, this relationship is neither strong and nor positive. Because the lack in
the consumption of buyer explains the lifestyle as sufficient as its existence, which means
nothing. (Cosmas, 2016). Consumers following different lifestyle have also different pattern
of shopping. Their loyalty to an existing brand and their opinion on trying a new brand also
differs. This difference is because of the word of mouth that plays a vital role in trying a new
brand and maintaining the loyalty to the existing brand. (Verma & Hanspal, 2000). The
elements of the life style that influence the consumption pattern are management and brand
awareness, purchasing technique, price awareness and information that is received through
salesman. (Khan & Nasr, 2011).
The pattern of consumption among the family and their lifestyle are link with buying
of casual clothing and sports shoes of young adults. The result reveled that on an average
after every 8.68 months and after every 50 days’ young adults buy sports shoes and casual
clothing, respectively. Moreover, young adults prefer to do shopping from specialty stores
and registered outlets also followed by the departmental stores. (Hsu & Chang, 2006).
Kucukemiroglu (1997) studied the segments of the market through the patterns of
ethnocentrism and lifestyle. The results showed that some of the dimensions of the lifestyle
are same among the Turkish consumers, which effects their ethnocentric tendencies. The
Turkish consumers who are more ethnocentric buy less of the imported products compare to
the consumers who are less ethnocentric. Atchariyachanvanich and Okada (2007) studied that
lifestyle of the consumers and buying pattern via online. The consumers for whom the price
is a less important factor they would do more of online shopping. Similarly, the consumers
who are more net-oriented they will also consider less risk buying online.
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2.2) Theoretical/ Conceptual Framework
As indicated in Figure 1, the theoretical framework of this research was adopted from John E.
Spillan, Manmohan D. Chaubey, Bindu J. Vyas, Christopher Ziemnowicz, & Nitish Singh
(2007), “The effects of life-style dimensions and ethnocentrism on indian consumers’ buying
decisions: an exploratory study”. It was generated keeping in the view the scope of the
research and the review of the literature, also taking into account the opinion of above-
mentioned researches.
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CHAPTER 3: METHODOLOGY
We have conducted this quantitative research. In this research, we have used the
questionnaire approach in order to collect the required data from our relevant respondents.
3.1) Data
The data that we have collected to conduct this research is first hand data, i.e. Primary
Data. It was collected from the individuals. No part of the data includes any unobtrusive
sources or bits of information.
3.2) Variables
Independent Variable – Lifestyle; It refers to the interests, the activities, the
opinions, behavioral alignments of a specific individual, a culture, a group or an entire
community. The factors lifestyle considered in this report include the activities, interest and
opinions of a consumer.
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3.5) Inclusion Criteria
The objective of this research is to analyze the influence of lifestyle of a general
consumer on his buying decision therefore, the inclusion criteria of this study is to take that
individuals from those who try to manage their buying decision according to the life they
spend. The inclusion criteria of this study is aligned with the scientific objective of this
research.
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Chapter 4: Results and Discussion
4.1) Demographic Profile
21 to 30 130 65.0
31 to 40 7 3.5
41 to 50 1 0.5
50 above 1 0.5
Educational Qualification matriculation 41 20.5
intermediate 29 14.5
graduate 81 40.5
masters 49 24.5
Monthly Income less than 98 49.0
20000
21000 to 41 20.5
30000
31000 to 21 10.5
40000
41000 to 15 7.5
50000
Above 50000 25 12.5
A total number of 200 respondents provided the data for this research study. The
respondents included male and female from both different household and lifestyles with a
diverse buying behavior. The demographic profile of the respondents included females that
constituted 107 out of 200 (which is 53.5%) and the males constituted 93 out of 200 (which is
46.5). A total of 30.5% of the respondents were 20 and below years old, 65.0% of the
respondents are between the age of 21 and 30, 3.5 % of the respondents were between the age
15
of 31 and 40, 0.5% of the respondents were between the age of 41 and 50, and only 0.0% of
the respondents were 50 and above. About 49.0% of the respondents had an income of less
than R.s 20,000, 20.5% of the respondents had an income of Rs. 21000 to 30000, 10.5% of
the respondents had an income of 31000 to 40000 7.5% of the respondents had an income of
41000 to 50000 and about 12.5% of the respondents had an income of above 50000. About
20.5% of the respondents had done matriculation, 14.5% of the respondents had done
intermediate, 40.5% of the respondents had done graduate and about 24.5% had done
masters.
Reliability of the data was tested by Cronbach’s alpha and the result of Activity is
0.707, and the result of Interest is 0.722, and the result of Opinion is 0.707 and the result of
Buying Decision is 0.75, all are higher than the required minimum of 0.7.
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4.3) Inferential Analysis
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Each variable has an imp act but the correlation value shows the level of impact each variable
has on there is a moderate positive relationship among variables.
Significance level 0.000 is < 0.05, which means the model, is fit.
The ANOVA table determines that the model fitness of a research and by the
evaluation done by the ANOVA table, the sig value 0.05 indicates that the model
of this research is fit.
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4.4) Hypotheses Assessment Summary
S.NO RETAINED
HYPOTHESES CRITERIA
. / REJECT
There is no impact of the activity of the consumer on his
1 Reject 0.45<0.05
buying decision.
There is no impact of the interest of the consumer on his Reject 0.00<0.05
2
buying decision.
There is no impact of the opinion of the consumer on his Reject 0.47<0.05
3
buying decision.
As per the tests run on the hypothesis made, this research summarizes that there is a
substantial impact of activity of the consumer on his buying decision. The null hypothesis was
rejected by the results of the regression model that produced a significance of 0.45. Another
hypothesis which says that there is no impact of the interest of the consumer on his buying
decision was also rejected by the regression analysis because of the sig value that is 0.00 and
this indicates that there is an impact and ‘dependency’ between the dependent and
independent variables. The last hypothesis, which says that there is no impact of the opinion
of the consumer on his buying decision, this null hypothesis was also rejected because of the
sig value that is 0.47 and it has been proved that there exists an impact of opinion of the
consumer on his buying decision.
4.5) Discussions
After evaluating the literature, collecting data and running tests on the data, we have
found that our study aligns with the research done by Krishnan (2011) who studied the
relationship between the consumers' consumption and their lifestyle. The results proved that
there is a significant impact on the products used by the consumers and their lifestyle.
Similarly, this study also aligns with the research done by Warayuanti and Suyanto (2015)
who studied that how much lifestyle and attitudes of the consumer influence their online
buying behavior. Moreover, the results showed that 20.7% of the online buying behavior is
affected by the lifestyle and attitudes of the consumer whereas remaining 79.3% is affected
by the other variables. The results of this study is also identical to the research done by Lin
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and Shih (2012) who studied the association of university students' lifestyle, personal values
and money attitudes in their buying behavior. In addition, they found that there is a
relationship between buying behavior and lifestyle, achievements are also positively
associated with buying behavior and personal values have positive moderating influence in
the judgment of buying choice. Similarly, if we talk about the study done by Al-Dmour,
Hammdan, Al-Dmour, Alrowwad, and Khwaldeh (2017) which says that there is influence of
Jordanian passengers' lifestyle on their purchasing behavior of online e-tickets. The
examination of results showed that every dimension of the lifestyle that our activities,
interests and opinions are positively associated with buying behavior of the consumers for e-
ticket service, which is similar to the results of this research.
However, this study does not second the research that was done by Szerenyi, Zsoka1,
& Szechy (2009) in which Hungarian university and college students conducted surveys and
realistic study. They came to the result that every group differs from other group, and
consumers take decisions before buying product based on the factors that more attractive
which includes feature of the product and not the lifestyle of consumer.
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Chapter 5: Conclusion, Limitation and Recommendation
5.1) Conclusion
From the study, it can be concluded that Lifestyle characteristics have a great impact
on the purchase behavior of the groups. In a consumption environment, a person chooses a
product or brand, which seems to possess a maximum possibility of the definition or
elaboration of his lifestyle identity. Alternatively, a person makes a choice in a consumption
environment in order to define or actualize his lifestyle, identify it through the products or
brands chosen. It can be assumed that the individual’s consumption behavior can be predicted
from an understanding of how he represents his world to himself, if the details of his lifestyle
system are known products and services are selected, purchased and consumed by the
individuals, in order for them to define, actualize or extend their life style identity.
Consequently, this notion supports the proposition that there is a causal effect of the
individual’s life style on his consumption behavior.
5.2) Limitations
There are some limitations to this study. First, the study was descriptive and focused
specifically on the consumer behavior of consumers. Secondly, while the data set used in the
study was sizable, it was a convenience sample. A larger sample is needed for study that is
more conclusive. Nevertheless, with these limitations the researcher has tried to identify a
new behavioral segments among consumers, thereby a new insight into the consumption
behavior of these segments. As the study examined the influence of lifestyle on brand choice
behavior exhibited by the segments,
5.3) Recommendations
Regarding the limitations of the data collected and analyses conducted, the following
suggestions have been proposed for those researchers interested in exploring related topics in
the future: (1) Distributing and retrieving questionnaires personally: if researchers in the
future can personally distribute and retrieve the questionnaires, then the deviation
phenomenon in the sample data can be reduced. (2) Expanding the subjects of the research:
researchers in the future can extend their surveys to other subjects, such as graduated school
and high school students, increasing the generalized value of their researches. (3) Continuing
the inquiry into the issue of this study: researchers in the future can add marketing stimuli as
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another moderator in the research. (4) It could be further extended to study the influence of
the same on the product choice, store choice behaviors exhibited by the consumers
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References
Al-Dmour, R., Hammdan, F., Al-Dmour, H., & Khwaldeh, S. M. (2017). The Effect
of Lifestyle on Online Purchasing Decision for Electronic Services: The Jordanian Flying E-
Tickets Case. Asian Social Science, 13(11), 157.
Aydın, H., & Ünal, S. (2016). A study on the effects of the consumer lifestyles on
sustainable consumption. Inquiry, 1(2).
Khan, S., & Nasr, M. (2011). Impact of lifestyle of Pakistani women on their buying
behavior. International Review of Business Research Papers, 7(2), 292-309.
Kim, D. J., Cho, B., & Rao, H. R. (2000, December). Effects of consumer lifestyles
on purchasing behavior on the internet: a conceptual framework and empirical validation.
In Proceedings of the twenty first international conference on Information systems (pp. 688-
695).
23
Krishnan, J. (2011). Lifestyle-A tool for understanding buyer behavior. International
Journal of Economics and Management, 5(1), 283-298.
Kwan, C. Y., Yeung, K. W., & Au, K. F. (2008). Relationships between consumer
decision-making styles and lifestyle characteristics: Young fashion consumers in
China. Journal of the Textile Institute, 99(3), 193-209.
Lin, L. Y., & Shih, H. Y. (2012). The relationship of university student’s lifestyle,
money attitude, personal value and their purchase decision. International journal of Research
in Management, 1(2), 19-37.
Lu Hsu, J., & Chang, K. M. (2008). Purchase of clothing and its linkage to family
communication and lifestyles among young adults. Journal of Fashion Marketing and
Management: An International Journal, 12(2), 147-163.
Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to
be socially responsible? The impact of corporate social responsibility on buying
behavior. Journal of Consumer affairs, 35(1), 45-72.
Newton, P., & Meyer, D. (2013). Exploring the attitudes-action gap in household
resource consumption: Does “environmental lifestyle” segmentation align with consumer
behaviour? Sustainability, 5(3), 1211-1233.
Orth, U. R., McDaniel, M., Shellhammer, T., & Lopetcharat, K. (2004). Promoting
brand benefits: the role of consumer psychographics and lifestyle. Journal of Consumer
Marketing, 21(2), 97-108.
Petrovici, D. A., & Ritson, C. (2006). Factors influencing consumer dietary health
preventative behaviours. BMC Public Health, 6(1), 222.
24
Qing, P., Lobo, A., & Chongguang, L. (2012). The impact of lifestyle and
ethnocentrism on consumers' purchase intentions of fresh fruit in China. Journal of Consumer
Marketing, 29(1), 43-51.
Spillan, J. E., Chaubey, M. D., Ziemnowicz, C., Singh, N., & Vyas, B. J. (2007).
EFFECTS OF LIFE-STYLE DIMENSIONS AND ETHNOCENTRISM ON INDIAN
CONSUMERS‟ BUYING DECISIONS: AN EXPLORATORY STUDY. Journal of
International Business Research and Practice, 1, 5-17.
Szerényi, Z., Ágnes, Z., & Anna, S. (2011). Consumer behaviour and lifestyle
patterns of Hungarian students with regard to environmental awareness. Society and
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Appendix
Questionnaire
Demographic Characteristics:
Please check mark ( ) on any one option from the following:
1) Gender:
(a) Male
(b) Female
2) Age (years):
(a) Less than 20
(b) 21-30
(c) 31-40
(d) 41-50
(e) 50 Above
3) Educational Qualification:
(a) Matriculation
(b) Intermediate
(c) Graduate
(d) Masters
(e) PhD
4) Occupation:
(a) Employed
(b) Unemployed
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Specify your level of agreement. 1 is LEAST AGREED and 5 is HIGHEST AGREED.
Please check mark ( ) on any one of the following:
LIFE STYLE
ACTIVITY 1 2 3 4 5
After doing shopping I feel relaxed.
When doing exercise I feel relaxed.
During the warm weather, I drink low calories soft drink
several times a week.
I feel relaxed when I wake up in the morning.
When I eat sweets, I feel relaxed.
INTEREST
An important part of my life is to dress smartly.
I usually have one or more outfits of latest fashion.
I choose latest trend over comfort.
I usually like to wear formals.
OPINION
I think I like to do volunteer work for hospital or service
organization on a regular basis.
I think I have more self-confidence than most people do.
I think I am more independent than most people are.
I think I have many personal abilities.
I think have more information about brands than other
people do.
BUYING DECISION
I go through lots of variety before buying.
I like to buy things that I can use every day.
Shopping is a pleasant activity for me.
I follow the trends and fashions during shopping.
I take time to shop to get the quality product.
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