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FACTORS INFLUENCE CONSUMER DECISION MAKING IN PURCHASING MOBILE PHONE IN SIBU
Tiew Sing Lui
HC 76 Corporate Master in Business Administration C6 2012 T564 2012
Pusat Khidm t M UNTVERSm ~ ra~umatAkademik
uuJlYSL SARAWAK
PKHIDMAT MAKLUMAT AKADEMIK
111111111 rrl~ii 111111111 1000246917
FACTORS INFLUENCE CONSUMER DECISION MAKING IN PURCHASING MOBILE PHONE IN SIBU
TIEW SING LUI
A dissertation submitted in partial fulfillment of the requirements for the degree of Corporate Master in Business Administration
Faculty of Economics and Business UNIVERSITI MALAYSIA SARA W AK
2012
I
A PROliL PArltE
I (~ertfy tha11 have supervised and rcad this study und lhal irt m opinion it conforms
to acceptable standards of scholady presenta1ion and is fiJi I) adequate in sc0p~ and
quality as a research paper f)r the degrt--e of Corp rnte Master in Business
Admini~tration
Professor Or Ernest Cyril De Run
Supervisor
The research paper was submitted to the Faculty of Economies and Business
UNtitAS and is accepted as partial fulfillment of the requirements for the degree of
Corporate Master in Business Administration
Professor Dr Shazali Abu )vJansor Dean Facuty of Economics and Business
UN1MAS
III
STA TE1d~NT OJ 0 GNAJT
The work described in this Research Paper entitled
FACTORS lNrLUIENCE CONSUMER D (C(SION l1AJTNG
IN PURCHASING ~10BILE lgtHONE L~ SIB(l
L to the best oLauthor $ knowledge thal of the author except
Where due reference is made
Date TJEW SING 11)]
06031409
iv
CT
AllSTl
ACTORS INFLUENCE CONSUMKR DECfSIONllAKlNG
IN PURCHASING MOBILE PHONE IN SIBU
By
flEW SLNG LUI
(flit purpose of thi~ study is to identify the factors influence consumer decision
making in purchasing mobile phone in Slim This study examines the seven main
[actors which are price product promotion social cultural place and tamiy will
I influence most to the coo)tmer dec Ision makin0 The population of this study Nas
t50 respondents in selected shopping centre located in Sibu and questionnaires vere
distrihuted 10 the respondents The tneasuremeni used in ihis study was descriptive
statistic pai red t~ tlSt and tactor anatysis The results of the finding SlOV Hut priee
is the main factor that intluerces conSiner decision in pUflhasing mobile phone in
Sibu while culture is the least Factor analysis indicated that all these variabh~s can be
seen as one ~~omponel1t factor that affect purchase decision DisclIssIon and
implication to business las provided
v
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
Pusat Khidm t M UNTVERSm ~ ra~umatAkademik
uuJlYSL SARAWAK
PKHIDMAT MAKLUMAT AKADEMIK
111111111 rrl~ii 111111111 1000246917
FACTORS INFLUENCE CONSUMER DECISION MAKING IN PURCHASING MOBILE PHONE IN SIBU
TIEW SING LUI
A dissertation submitted in partial fulfillment of the requirements for the degree of Corporate Master in Business Administration
Faculty of Economics and Business UNIVERSITI MALAYSIA SARA W AK
2012
I
A PROliL PArltE
I (~ertfy tha11 have supervised and rcad this study und lhal irt m opinion it conforms
to acceptable standards of scholady presenta1ion and is fiJi I) adequate in sc0p~ and
quality as a research paper f)r the degrt--e of Corp rnte Master in Business
Admini~tration
Professor Or Ernest Cyril De Run
Supervisor
The research paper was submitted to the Faculty of Economies and Business
UNtitAS and is accepted as partial fulfillment of the requirements for the degree of
Corporate Master in Business Administration
Professor Dr Shazali Abu )vJansor Dean Facuty of Economics and Business
UN1MAS
III
STA TE1d~NT OJ 0 GNAJT
The work described in this Research Paper entitled
FACTORS lNrLUIENCE CONSUMER D (C(SION l1AJTNG
IN PURCHASING ~10BILE lgtHONE L~ SIB(l
L to the best oLauthor $ knowledge thal of the author except
Where due reference is made
Date TJEW SING 11)]
06031409
iv
CT
AllSTl
ACTORS INFLUENCE CONSUMKR DECfSIONllAKlNG
IN PURCHASING MOBILE PHONE IN SIBU
By
flEW SLNG LUI
(flit purpose of thi~ study is to identify the factors influence consumer decision
making in purchasing mobile phone in Slim This study examines the seven main
[actors which are price product promotion social cultural place and tamiy will
I influence most to the coo)tmer dec Ision makin0 The population of this study Nas
t50 respondents in selected shopping centre located in Sibu and questionnaires vere
distrihuted 10 the respondents The tneasuremeni used in ihis study was descriptive
statistic pai red t~ tlSt and tactor anatysis The results of the finding SlOV Hut priee
is the main factor that intluerces conSiner decision in pUflhasing mobile phone in
Sibu while culture is the least Factor analysis indicated that all these variabh~s can be
seen as one ~~omponel1t factor that affect purchase decision DisclIssIon and
implication to business las provided
v
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
I
A PROliL PArltE
I (~ertfy tha11 have supervised and rcad this study und lhal irt m opinion it conforms
to acceptable standards of scholady presenta1ion and is fiJi I) adequate in sc0p~ and
quality as a research paper f)r the degrt--e of Corp rnte Master in Business
Admini~tration
Professor Or Ernest Cyril De Run
Supervisor
The research paper was submitted to the Faculty of Economies and Business
UNtitAS and is accepted as partial fulfillment of the requirements for the degree of
Corporate Master in Business Administration
Professor Dr Shazali Abu )vJansor Dean Facuty of Economics and Business
UN1MAS
III
STA TE1d~NT OJ 0 GNAJT
The work described in this Research Paper entitled
FACTORS lNrLUIENCE CONSUMER D (C(SION l1AJTNG
IN PURCHASING ~10BILE lgtHONE L~ SIB(l
L to the best oLauthor $ knowledge thal of the author except
Where due reference is made
Date TJEW SING 11)]
06031409
iv
CT
AllSTl
ACTORS INFLUENCE CONSUMKR DECfSIONllAKlNG
IN PURCHASING MOBILE PHONE IN SIBU
By
flEW SLNG LUI
(flit purpose of thi~ study is to identify the factors influence consumer decision
making in purchasing mobile phone in Slim This study examines the seven main
[actors which are price product promotion social cultural place and tamiy will
I influence most to the coo)tmer dec Ision makin0 The population of this study Nas
t50 respondents in selected shopping centre located in Sibu and questionnaires vere
distrihuted 10 the respondents The tneasuremeni used in ihis study was descriptive
statistic pai red t~ tlSt and tactor anatysis The results of the finding SlOV Hut priee
is the main factor that intluerces conSiner decision in pUflhasing mobile phone in
Sibu while culture is the least Factor analysis indicated that all these variabh~s can be
seen as one ~~omponel1t factor that affect purchase decision DisclIssIon and
implication to business las provided
v
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
STA TE1d~NT OJ 0 GNAJT
The work described in this Research Paper entitled
FACTORS lNrLUIENCE CONSUMER D (C(SION l1AJTNG
IN PURCHASING ~10BILE lgtHONE L~ SIB(l
L to the best oLauthor $ knowledge thal of the author except
Where due reference is made
Date TJEW SING 11)]
06031409
iv
CT
AllSTl
ACTORS INFLUENCE CONSUMKR DECfSIONllAKlNG
IN PURCHASING MOBILE PHONE IN SIBU
By
flEW SLNG LUI
(flit purpose of thi~ study is to identify the factors influence consumer decision
making in purchasing mobile phone in Slim This study examines the seven main
[actors which are price product promotion social cultural place and tamiy will
I influence most to the coo)tmer dec Ision makin0 The population of this study Nas
t50 respondents in selected shopping centre located in Sibu and questionnaires vere
distrihuted 10 the respondents The tneasuremeni used in ihis study was descriptive
statistic pai red t~ tlSt and tactor anatysis The results of the finding SlOV Hut priee
is the main factor that intluerces conSiner decision in pUflhasing mobile phone in
Sibu while culture is the least Factor analysis indicated that all these variabh~s can be
seen as one ~~omponel1t factor that affect purchase decision DisclIssIon and
implication to business las provided
v
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
CT
AllSTl
ACTORS INFLUENCE CONSUMKR DECfSIONllAKlNG
IN PURCHASING MOBILE PHONE IN SIBU
By
flEW SLNG LUI
(flit purpose of thi~ study is to identify the factors influence consumer decision
making in purchasing mobile phone in Slim This study examines the seven main
[actors which are price product promotion social cultural place and tamiy will
I influence most to the coo)tmer dec Ision makin0 The population of this study Nas
t50 respondents in selected shopping centre located in Sibu and questionnaires vere
distrihuted 10 the respondents The tneasuremeni used in ihis study was descriptive
statistic pai red t~ tlSt and tactor anatysis The results of the finding SlOV Hut priee
is the main factor that intluerces conSiner decision in pUflhasing mobile phone in
Sibu while culture is the least Factor analysis indicated that all these variabh~s can be
seen as one ~~omponel1t factor that affect purchase decision DisclIssIon and
implication to business las provided
v
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
1 would like to e prss my appreciation anltl t 1nnks to my SHpervi-sor Professor Dr
Ernest Cyril Dc Run on his timc and cffOli in rcvkwing this res arch to makt it a
success
1 would like to thanks all my colleagucs and friends for aU their assistanccs and
motivation
I 1 would like to express my sincere thanks to all my friends in ass isting me to distribute
the questionnaires and all tht anon ~mOlS consumers who have spent th~ir va1Jabl~ time
to answer my questionnaires
Thanks for alL
VI
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
Pusat Khidmat MaJdumat Akademik ~IVfJsm MALAYSIA SARAWAJ(
TABLE 0 1( CONTENT
UST (if TABLES x
USTOF flGURES xi
C]l~lpter 1 lNTRODlJCflON
1D Introduction
11 BackgTound of R~search 2
12 Problen1 Statement 2
121 Research Question 3
13 Objective of Research 3
I A Significance of the Research 3
15 Organization of Research 4
6 Conclusion 4
ell ter~ LITERATURE REVIEVS
20 introduction 6
21 Consumer Behavior 6
22 Decision Making 7
231 Persona and Environmentai Facmrs
Cultural Factor 8
VIl
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
I
9
Pcrson~i factor
Psychological Factor
232 Stages of the Consumer Buying Process
Probem Recognition 13
lIli-ormation Seeking 14
Evaluation of Altematives J4
PUichasc Decision 15
Postpurchasc Evatuation 15
233 Marketing Factor
Product 15
Pricing 16
l-Tomotion 16
Place 16
24 Conclusion 17
Chrlpter 3 METIlOl))lOGY
30 Introduction 18
31 Conceptual Framework 18
32 Research Design 19
321 Sampling 2)
322 Data Collection IV1cthod 20
VlIl
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
_23 ata Anays- 10 r
)1 --
34 Conclusion 2J
Citltlptetmiddot 4 E5 EARCH FINIH NGS
40 Intwduction
41 Frequency Distribution
42 Respondent Profile 22
4 Factor influence Consumer Decision Making
(Descriptive Statistics) 23
44 Paired Sample Test 24
45 Factor AnalysIs 25
46 Conclusion 26
Chapter 5 IHSCUSSlON AND CONCLUSIONS
50 lntroduction 27
51 Discussions 28
52 Contribution of Resetich 29
53 Limitations 29
54 Concluslon 30
BIBLiOGRAPHY 32
APPENf)lX
Research Questionnaire 381
IX
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
-~
LE~
Page
-fABLE 1 23
TABLE 2 24
TABLE 3 Paired ~ampk Test 25
lctOi Analysis 25
I
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
Page
FreUR E 1 Conccptn I f rameWLrk The facto hat wDuld inlluence consumer decision making jn purchasjng mobil phone in SbtJ area 9
XI
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
Chaptn One
InhoouctioH
10 tntmiddot~ uctiou
Everyday IKoP e win based on their consumer decision before their purcba9d in a
particular day such as hw much budget of money they willing to spend on their
holiday and how much money should be spend In the particular meals or groceries
and etc The process of decision making is the consumer to identify the needs and
gathered the related information before making the buying G(6slon There ar~ many
factors h~t vmdd ilJnlK~nCC custOncr decision making
Mobile phone IS also known as ccHuIar phontt or hand phon and eeH phone MoMIe
phone is a portable WIDuIUllkation dtvice that eaI1 makt call and receivccalL
Mobile phone canconnect people by using cellular network make people from
ditTerent geographical stH can contact eah other By the improvement ofteehfllJlogy
mobile phone bas been improved theis tmction not orily caU and receive caB only bu
also with functions of camera radio games internet alarm clock text messaging and
many others Mobile phone is a very important device in our Ufe In this research 1
focus on the factor that influence consumer decision making in pUJchasing mobile
phone in Sibu area
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
1
Mobik phone has become lt part -of humltln sociatdev1ces especially the evolution of
mobiJe phone corne out more convenieoce features such as onlin~ JUusic~ gaming
taking photo md recording video and etc It has ~tl e a common device -that
ev-ryone Quld like to hRve one hvo or more in f1ovaaays
Mobile vhcme is a big market for g~obatjzation As a re~sut manufacturers such as
Sony Samsllng HTC and Microsoft and so on arc wiIHng to invest large amount
capital to involve in ihe mobile phone market In order to attract conswner buying
desire it need to find out the factors that will inilucnce consumers decision making
when choosing brand mobile phone It is because different consumer will have a
different point of vlev or perception lIuiue under JitfeTcnt cuiture social living
standard level t~lmily influence and etc Besides marketers competitive strat~ies
such as price promotion place and piOduct packaging vilt also influence the
consumer decision making as weil As a result it is important to ddt-TIlllne that
factors inBuenee the consumers decision making in choosing brand mobile phone
12 Problem Statement
It is difficult to determine w1at is the decision making and consumer beha-vior while
choosing mobile phone The researcher needs to find out the elements consist of
consumers decision are the key drivers that enable marketer to allocate the resources
and support actions to gain more market share and company groy1h (Gurley et a)
2005)
2
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
What are the factors that intluence consumers decis ion mal_jng IV len choosing
brand mobile phone
13 Objecti-e of Research
The o~iective of this research is to detennine the factor that wiD inf1uence the
consumer decision making when enoasing or bUYlllg the mobile phc)Jle On tile other
part it also can detennine the significant and realistic of the research_
14 Significance of the Rese-drcb
11lt n-tarch is important and need tu be carry uut is because the marketer can get
well know of what the end users really need and wants The marketers can come out
more suitable and competitlve products or services 10 fuHHI the consumer
satisfactions base on their tiedbuck and opinion wwards the PI (hlcts or service Th
research wiU be useful Hot only in mobHe phone industry and aJso ob1er related
marketing areas The marketers can refer to the research result and catty out more
competitive marketing strategy to gain more market share and profit
3
l
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
15 Orga izsti~u or Re~rd
The research lin be impkmc11t the research introduction in h beginning anow by
the litenltule review third fe)r the research methodology and come up with findings
and Jtih wiH be the research conclusion step by step The res arch will determil1e he
factors int1ucnccs the consumer d((isiDn making on cho0sing mobile phone
16 Conclusioq
in this chapter it showing that mobile phone is a very important communication
device Jorconsumer Consumer is willing to spend money in a mohH~ phone which
suits to them Besides ttw~ ~c many factors that win influence consumer decision
making on choosing a mobile phone
Consumei decision making is complicated and invorYc a number of constructs Low
involved consumers may llSt imp1t decision rults in arriving ai attiludinaljudgmeots
For instance the behavior of high involved consumers may be analyzed and described
on the basis ofthe infbrmation processing perspective (Hansen 2000)
in this chapter we want to find out what is the factors that will influence moot the
consumer decision making The tilctors are family social Glll t ttraJ product pricing
promotion and place
l h f 1 l d 1 bull _1 I phD e actors t13t m~ urncc cmiddotonSllmer eClSlOn mmong on consummg mtgtl e ne
will be determine in the literature review Folto by elaborate the hypotheses in the
4
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
third chap r research nl thodcogy Yhc findu g - th S5 will be elabc rate in the
chapter four to find out the re a ansli vcen each factor that intluence consumer
dedsion making In the fifth chapter analyzed and cxp]ining the outcomes from the
finding At last determine and fmlJize what is the reason of the finding and make
the conciusi(m for the nsearch
5
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
ChApter TWo
Litenlture Review
291raquotToduction
This chapter discussed the studies done by other reseMcne rs whkh is relevant to the
~tudy of factors that influence consumer decision making there are peJSonat and
environmental factors (family sodal cultural) and marketing factors (price plate
promotion and product)
21 Consumer Bebavior
Consumer behavior is a study of how consumers buy products Consumer behavior
rctkct consumcrs decision with respect to the acquisition consumption and
disposition of goods services activities experience people and ideas by decision
t laking units (Hoyer and Macinnis 2008)
According to the study done by Hoyer and Macinnis (2008) consumer behavior
means not only that a person buys a tangible product but also inciudeconsumers use
of services activities experience and ideas
Consumer behavior is not ouly the study of how the tonsumer purchased but a1so
involved in how they use and dispose the product Product lise is a great interest for
the marketer because it can let the lParketer know how to position the product in
(
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
oldcr to iuclasc the I uIchase 0 tile product (Pcrner 2 11)
According to Kot1cr (2004) consumer beh~vior can be defined at the process and
aclivities that the conumer engage in when searching for selecting purchasing using
ev~uat1ng and disp)sing of products and services so as to satisfy their ocgtfds and
wants Consumer bchavior influence consumers decision making of ~p-ending their
money Therefore many products and services DIms are always emphasizing on
understanding well of cons-umers behavior in ordt-T to mu e their strategic decision
for attracting managing their firm and customers (Ettenson amp Turner 1997)
Analyzing and understanding well of consumer behavior enable 10 lead to an
understanding of I1mv the purchase related variables internet and influence each other
thus building a deepe- umkrsiandl1g of COL1)pieX consumer behavior in order to g~lin
more market share and compete the competitors marketer should try to understand
and knowing well of each consumers behavior and attitudes their thinking so that to
come out a strategies that meti the market needs and vants based OJ] the diHcrenGts
(Nisei 200 I)
22 Decision Making
Decision making is a study of identifYing and choosing the product or services based
on the preference and value of the decision maker For making a decision there
should be more than one choices of the decision maker to choose In this (ase the
decismiddotjon maker is not only to -identitY as many of these alternative as possible to
choose the one that is most suitable to the decision ITiaker (Robert Harris 2009)
7
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
The process of selecting from scycr6l choices products brands or ideas is co ider~-d
as decision rnaking The decision process may involve compl cognitive or mental
activity simple learned rcspon~ or un uninvolved and uJiinJormed choice that iniY
ven appear to be stochastic or probabilistilt (American Marketing Ass lC1ation 20(7)
231PergtJlw J ami EndromnentalJacJor
C~ltnral Jiactor
Culture is the lllost basic cause of the persons wants and behavior People learn the
basic valucs and perccption from their family group (KOt2f 1999) Each culture
Cl)1sisls of various sllb-cuLtmal Suo-cultural is a group of j ndividua~ with simiiar
characteristic values and behavior pattern (Pride Ferrell 202)
It can bt unuerstoou as system~ of symbob and meamngs Lhai even lheir creators
contest that lack fixed boundaries that are constantly in flux and that interact and
compete with one another It refers to the set of values ideas and attrtudes that are
aCtepttd by a homogenous group of plople alld translnitted to the next generatioll
An individual easily get influence by the culture and it does change Hsperccption
values and decision towards choosing home appliances (Findley 2(06)
Social Classes
A social ciass is a group ofpeope with a similar rank Social classes reflect not only
8
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
thJ~ people lith similar income but -1J0 include similar evel of occuplrtiol1 cdo on
and area of residence l)eope in the same social class deve inp md assume simi lor
behavior tXlttcrn so they rna) also hove similar values attitude languogc pattern nd
possessions (Pride Ferre It 20 il)
bull ReJ~rencpound Group
Reference group is a group of people thlt individual will look to as a self-appraisal
and as a source to develop personal standard such as family friend and co-worker
Reference group can also be the group of people who have dkcct or indirect influence
to the person attitude and behavior (KotteT 1999)
Reference groups usually act as a frame and consumer always refer to evaluate theil
achievement the role performance aspirations and ambitions (Thompson amp Hic~ey
2005) The consumer wHl be influenced or Ibt information will be obtaind from
other group as rderence and they vill observe and obtaining ~ame knowledge
behavior aHitude minds as rererence (AssrJeJ 1992) The reference group that wiH
int1lHmcc individual COJSJlller behavior can be famity fdellds ~lture and sociaL
bull Family
Family is the most influential primary reference group so family is the most
imJXlrtanl consumer buying organization in the society and tamily members (Kolter
1999) ~lajority of the family decision making is relying on the husband vife dyad
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
Igl10nng any effect that children ay have ill li prcce - j ohn llal ltvlk e h w
Melissa Johson P~ter Oppenhclm 19fS)
Role and Statllses
Role and status is the persons position in each group role is the activities that people
is expected to pericgtIJn and each role carries a stlius The people wiH choose the
products and services which is match with their role and stttus in the society (Kolter
1999) A person role in the life for example a director and the slatus that comes vJth
the position determine sorn e of the purchase choices (Steve Jonathan 2011)
Personal Flctors
The age andlhe lift cyc1ehavt a significant impact to the consumer behavior as
consumer will buy diHerent goods and services during different litetime Different
family tife cycle also infl1cnce consumer buying behavior those tamiJy Hfe cycle
iudude J1larried household single hOllsehold gay household young married with
children middle age married without children For instance young married with
children will spend more money in consume babys products SlKh as diapers milk
powder Those manied with middle age children wiTI spend mOfein educatiOJl food
and beverages (Lamb flair McDaniel 2007)
10
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
- ------------ ------ -
Oaupaiiofl muJ Ecomnrac CirClImsllmCfS
person s occupation will have a strong impact to the purchase of goods and services
Blue-collar will buy more work clothes white-coUar will buy more business suits
The markcers try to identity the same occupational of groups that have abovcshy
average interest in their goods and services (Kolter 1999)
bull Lifestyle
Liiestyle is the pattern of living of a person even people with the similar ocupation
social clas~ and sub-culture their lifestyJe may be different A person lifestyle can be
identified by a persons activities opinions and interest Psychographicsis the
technique io cX1l311ine consumer lifestyle and to categorize consumer in order to let
marketer have better understanding to the consumer (Lamb Hair McDaniel 20(9)
bull Personality and self-concept
Per~onality is a set of distinguishing human psychologi cal traits and behaviors that
lYlake a person to rel)tively consistent and enduring responses to ettvimnmental
stimuli (Kolter 1999) Some of the marketer believes the type of the brands of
product purchase as the brands also have the fX-fSOllQtities and the consumer wjJl
likely to choose the brand which is better match to their ovn personality (Lamb Hair
McDaniel 20 J I)
II
(
------------------~--
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
ScIt~concepl is a pcrcepti n or view for himself or self A person self-image - the
way and il1dividuai view himsdf or herself Look-ing glass self is the way tY1t
individual think abcttlt hat other peoplewiH think abol himself or herself (Boone
Kurtz Mackenzie Snow 2009)
People iry to purchase the product that can match their se lf-concept so that they can
step closer to their jdeal image or reflect ibeir aciUai seif-concept (Cathy H C Hsu
Tom Powers 200 l)
PsycnolugiC4 Factors
bull ~lotivalion
Motive is the driving forces that cause a consumer to make an action morder to
satisfy their need Consumer purchase normally is to ful fi ll some kind of need these
netu has lum inlo a moliv~ in order to Jel Lhe wnsumer Lo make the adlon to purchase
(Lamb Hair McDaniel 20 Il)
bull Perception
Perception is the process which we select organize and interpret this stimulus into
meaningful picture Perception is how we see the world and we recognize that we
need some help making a purchasing dec ision (Lamb I-lair McDallie~ 2011)
12
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
bull UanriiiJ
Learning refers to irnmediatmiddot or expected changes in consun cr -c-hovior as a result of
expenence Learning process induck drives stimuli cues responses and
reinforcement t drive is any stimulus that impact actkm Cues a re minor stimuli that
of drive and cues is considered as response Reinr)rcemeut is a reduciion of drive
that results in the respons~ (Boone Kurtz Mackenzie Snow 2009)
bull Beliefs andAttilmles
Attitude is a overaH preference of an object that may be a preduct Attitude is learned
the attitude wia be change and develop by past c~pericnccs Consumers attitude win
influence the behavior intention which is the predictor of the actual behavior (Cathy
H C Hsu Tom Powers 2001) An organized pattern of k owkuge that individual
holds as true aboul his or her owns world is call belitf Consumers bdid about a
product will services will inHuence consumer buying decision (Lamb Hair McDaniel
2007)
232 Stages cfthe Omsmtter Buyin-g ProcesJ
Problem Recognition
The consumer buying process wiH begins when the consumer realize there is a
problem and need For example while feel hW1gry you need to eat food so you need
