s as Muan Thesisas

8/12/2019 s as Muan Thesisas

http://slidepdf.com/reader/full/s-as-muan-thesisas 1/22

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR OF SASMUAN

DELICACIES

A Business Research Proposal

Presented to the Faculty of the College of Business and Accountancy

Holy Angel University

Angeles City

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Marketing Management

Absalon, Diane Paula D.

Amurao, Alexis M.

Batac, Eric Cristopher C.

Buco, Richard Mari S.

Vestil, Martin Adrian S.

March 2014



FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR OF SASMUAN DELICACIES

2

Approval Sheet

This business research proposal entitled ―Factors Influencing Consumer Buying

Behavior of SasmuanDelicacies‖, prepared and submitted by Absalon, Diane Paula; Amurao,

Alexis; Batac, Eric Cristopher; Buco, Richard Mari; Vestil Martin Adrian.In partial fulfillment of

the requirements for the degree of Bachelor of Science in Business Administration major in

Marketing Management is hereby RECOMMENDED and ACCEPTED for ORAL DEFENSE.

________________________

Ma. Antonette Guintu

Adviser

Approval

ACCEPTED and APPROVED in the partial fulfillment of the requirements for the

Degree of Bachelor of Science in Business Administration Major in Marketing Management.

Panel for Oral Examiners

Mr. Robert Quizon Mrs. Carmelita Lao Mrs. Ma. Fernabel Punsalan




3

TABLE OF CONTENTS

Title Page

Approval Sheet

Table of Contents

Introduction

Company Background

Review of Related Literature

Statement of the Problem

Conceptual Framework

Significance of the Study 17

Scope and Limitation 17

Methodology 18

Research Design 18

Respondents of the Study 18

Data Collection 19

Data Analysis 19

Appendix

References 21

Sample Survey Questionnaire to Customers 24




4

Sasmuan Delicacies started their business selling polvorons in schools and sari sari

stores. In 1991, when Pinatubo erupted businesses in Pampanga went downhill. The

government held a market fair and it paved way for Sasmuan to rise up again. Through SM,

which they became, partners with. Their first store was launched in SM Cebu. Mrs. Del Rosario

made sure that quality comes first before profit. Up to present they are one of the known

leading delicacies manufacturer in the country.

Delicacies vary from one’s personal taste to another. It is highly desirable in various

cultures often because of its special, uncommon flavors, appearances, and characteristics or

because it is rare compared to the availability of other foodstuffs. Because of this, various

forms of foodstuffs like baked items, delicacies, sweets and pastries have emerged as a new

trend in the market. Today, many innovative products and ingredients are now being

demanded by a lot of customers in different regions stimulated by changing lifestyle and eating

habits. Emerging markets now represent a good market potential for Sasmuan to venture into

the food industry.

In our globalizing world where economic crisis deepen and competition gets fiercer,

consumers are becoming more and more important. Every individual is a consumer. There are

rapid changes in demands and desires of the consumers who are considered to be center of

the modern marketing. Companies need to increase the rate of their research and

development activities in order to be able to learn these changes and improvements.

Consumer satisfaction, which is widely accepted is gaining importance day by day and can

only be achieved by perceiving the consumers and consumer behaviors (Shah,2012)




5

Consumer behavior research enables better understanding and forecasting not only of

the subject of purchases but also of purchasing motives and purchasing frequency (Schiffman

& Kanuk, 2004).

One of the present fundamental presumptions for the consumer behavior research is

the fact that, people often buy products not because of their main function but for their

subjectively perceived value. It does not mean that products’ basic function is not important,

but that the today’s role of product exceeds its service limits(Salomon, 2004). Even more often

consumers do not rate products according to their cores (it means the main utility provided) but

above all according to so-called real product (it means the particular products’ qualities) and

the extended product, which represents the set of intangible factors bringing the demanded

perceived advantage to consumer (Procházka, 2007).

Trommsdorff (2002) however warns that there are no activities more important for the

consumer behaviour research, connected with consumption, than the personal characteristics.

According to him the term ―consumer‖ is being used instead of a more accurate one ―target

customer‖, and also the term ―consumer behaviour‖. This conception causes problems

afterwards because it must comprehend more personal roles – decision maker, buyer and

consumer.

In a study by Esteban (2009) according to him, Filipinos were able to overcome the

crisis. ―It’s not that bad actually a Pinoys seem to be coping forever‖, Esteban said. He even

said during crisis periods there were changes in consumer behavior and attitudes that need to

look upon in the development in their campaign plans and mixes.

Therefore, understanding the consumer attitudes and behavior is one of the key factors

for an organization to successfully tap business opportunities in the Philippines. This aspect is






7

factors: cultural, social, personal, and psychological. (Yakup & Jablonsk, 2012). We can say

that following factors can influence a Consumer’s buying behavior :

Literature and the explanation of these factors is given below:

Fig. 1 Factors Influencing the Consumer Purchase Behavior

Source: Buying Customer Factors,http://iitmaverick.wordpress.com/2012/11/14/consumer-buying-behavior-3/

Psychological factors include motivation, perception, skills and knowledge,

positions, personality, style of life (Brown 2006).In addition, he further stated that Perception

means the adaption of reality. It is the process of selection, processing and interpretation of

input data from the environment to make them purposeful. This is supported in a study by

Purwanto (2013) stating that a person’s buying behavior choices are further influenced by four

major psychological factors: Motivation, Perception, Learning, and Beliefs. Motivation is when

a person has many needs at a given time. A motive or a drive is a need that is sufficiently

pressing to direct the person to seek satisfaction of need. Freud’s theory suggest that a person




8

buying decisions are influenced by subconscious motives that even the buyer may not fully

understand. A person tries to satisfy the most important need first. When that need is satisfied,

it will stop being a motivator and the person will then try to satisfy the next most important

need. Perception is when people can form different perceptions of the same stimulus because

of three perceptual process; selective attention, selective distortion, and selective retention.

Each person fits incoming information into an existing mind-set. Selective distortion describes

the tendency of people to interpret information in a way that will support what they already

believe. Selective distortions means that marketers must try to understand the mind sets of

consumers and how these will influence interpretations of advertising and sales information.

Furthermore, selective retention describes that consumers are likely to remember good points

made about brand they favor and to forget good points made about competing brands.

Learning , a drive is a strong internal stimulus that calls for action. A drive becomes a motive

when it is directed toward a particular stimulus effect. When consumers tend to decide which

product they shall buy, they might respond to cues, cues are minor stimuli that determine

when, where, and how the person responds. Beliefs and Attitudes is through doing and

learning that people acquire beliefs and attitudes. Beliefs are a descriptive taught that a person

has about something. Beliefs may be based on real knowledge, opinion, or faith and may or

may not carry an emotional change. Attitude describes a person’s relatively consistent

evaluations, feelings and tendencies toward an object or idea. Attitudes put people into a

frame of mind of liking or disliking things or moving toward or away from them. Attitudes are

difficult to change, a person’s attitudes fit into a pattern and change one attitude may require

difficult adjustments in many others. The forces of beliefs and attitudes push a company to fit

its products into existing attitudes rather than attempt to change attitudes.




9

Personal factors, are the ones unique for each consumer. Above all data like

age, sex, place of domicile, occupational and economic conditions, personality and self –

consciousness can be found here (Horská & Sparke, 2007). In Purwanto’s study it was stated

that consumer’s decisions also are influenced by personal characteristics as the buyer’s age

and life cycle stage, occupation, economic situation, lifestyle, and personality and self-concept.

Age and life-cycle stage,tastes in food, clothes, furniture, and recreation are often age related.

Buying is also shaped by the stage of the family life cycle - the stages through which families

might pass as they mature over time. Traditional family life cycle stage includes young singles

and married couples with children. A person’s occupation affects the goods and services

bought. Marketers try to identify the occupational groups that have an above-average interest

in their products and services. A company can even specialize in making products needed by

a given occupational group ("Consumer Markets: Influences on Consumer Behavior," 2012).

Economic Situation will influence product choice, marketers of income-sensitive goods watch

trends in personal income, savings, and interest rates. It is obvious that an economic level of a

consumer will determine their choice of buying as they adjust their purchase power with the

goods and services. Lifestyle was also defined by him as a person’s pattern of living as

expressed in this or her psychographics. This involves measuring of consumers interest which

leads to buying behavior. Lifestyle profiles a person’s whole pattern of acting and

interchanging consumer values and how they influence buying behavior. Personality and Self-

Concept refers to the unique psychological characteristic that leads to relatively consistent and

lasting responses to one’s own environment. Personality is usually described in terms of trait

such as self-confidence, dominance, etc. An idea that brands also have personalities and that




10

consumers are likely to choose brands with personalities that match their own. A brand

personality is the specific mix o human traits that may be attributed to a particular brand.

A consumer’s buying behavior is also influenced by social factors , such as the

(i) Groups (ii) Family (iii) Roles and Status (Yakup & Jablonsk 2013). Reference Groups have

potential in forming a person attitude or behavior. The impact of reference groups varies

across products and brands. For example if the product is visible such as dress, shoes, car etc

then the influence of reference groups will be high. (Shah, 2012). A Family is two or more

people living together who are related by blood or marriage. It is a part of a household which

consists of individuals living singly or together with others in a residential unit. Consumer

behavior is influenced not only by consumer personalities and motivations, but also by the

relationships within families. In a family, members must satisfy their individual and shared

needs by drawing on a common and shared, relatively fixed supply of sources. The individual

family is a strong, most immediate and most pervasive influence on decision-making. The

husband, wife and children influence each other and are influenced by others (Yakup and

Sevil, 2011).A person belongs to many groups—family, clubs, organizations. The person's

position in each group can be defined in terms of both role and status. Furthermore, A role

consists of the activities people are expected to perform according to the person around them.

Each role carries status reflecting the general esteem given to it by society. People usually

choose products appropriate to their roles and status (Purwanto, 2013).

In a study conducted by Yakup & Jablonsk (2012),researchers stated that

cultural factors have a significant impact on customer behavior. They stated that Culture is

the complex of beliefs of human societies, their roles, their behavior, their values, traditions,

customs and traditions. Culture represents the behavior, beliefsand, in many cases, the way




11

we act learned by interacting or observing other members of society. In this way much of what

we do is shared behavior,passed along from one member of society to another.

On Sub-culture, each culture contains ―sub-cultures‖ – groups of people with

share values. Sub-cultures can include nationalities, religions, racial groups, or groups of

people sharing the same geographical location. Sometimes a sub-culture will create a

substantial and distinctive market segment of its own. For example, the ―youth culture‖ or ―club

culture‖ has quite distinct values and buying characteristics from the much older ―gray

generation‖(Yakup & Jablonsk, 2012).

On social class, it is stated that every society possesses some form of

socialclass which is important to the marketers because thebuying behavior of people in a

given social class issimilar. In this way marketing activities could be tailoredaccording to

different social classes. Here we shouldnote that social class is not only determined by

incomebut there are various other factors as well such as:wealth, education, occupation etc.

(Shah, 2012).

Today because of the presence of many new and innovative retail shops offering

wide and variety of products, even this new market competition where price is important and

product awareness and communication so fast, the researchers are interested to know how a

firm like Sasmuan Delicacies has made it into this tight and intensive rivalry among its existing

competitors. The group is also interestedin knowing deeper the possible strategies of surviving

and developing the strategy of promoting the product which leads a customer to purchase

products because of the factors that will greatly influence a customer to buy Sasmuan

Delicacies.




12

How will you identify the factors influencing consumer buying behavior of Sasmuan

Delicacies?

Specifically; it aims to answer the following question:

1. How may the characteristics of the respondents be described in terms of:

1.1 Age

1.2 Gender

1.3 Income

1.4 Family Size

2. How may the following factors influencing consumer buying behavior be

assessed by the respondents? The factors are:

2.1 Psychological

2.2 Personal

2.3 Social

2.4 Cultural

3. Is there a significant relationship between factors influencing consumer-buying

behavior that are: (Psychological, Personal, Social, Cultural) and buying

behavior?

4. What are the possible recommendations?

Ho : There is no influence by the factors like psychological, personal, social and cultural

factors on the Sasmuan’s consumer behavior on their willingness to buy.

The framework of this study offers rationale and fundamental basis how the

entire research will go about. As a basis, it represents the interrelationship of theories,






14

Figure 2. Conceptual Framework

I n p u tFactors

Influencing

Consumer

BuyingBehavior

Psychological

Personal

Social

Cultural

P r o c e s s

SimpleFrequency

Mean rating

Correlation

O u t p u t

BuyingBehavior




15

This study may benefit the following sectors:

The owner of Sasmuan will have an idea about factors that influence consumer

buying behavior. This will give them an alternative on how to please their consumers by

possibly providing identified needs on their product offerings. They could now introduce

new and better products that will make Sasmuan stay competitively in the market. By

identifying strategies, they will help increase their market and venture into related

products.

The Food Industry may venture into awareness of providing more environmental

and healthy ingredients and products making customers more delighted with the

offering of innovative products in a growing and competitive market.

Future Researchers may venture in a different area not covered in this study like

focusing on factors of purchase decisions on brand selection or specifically on

advertising factor.

The coverage of the study entails the perception of the customers of Sasmuan

who are currently buyers of Sasmuan which may have different outlets/kiosks in malls

or supermarkets. The participants will be taken out from the total population with the use

of sampling.

However, limitations may be seen from this study since some respondents may

be hesitant or may not have the time to participate in filling up the survey form. They

may also not properly answer the questionnaire which may cause the questionnaire to

be invalid or void. However, the researchers will assist in the answering of some queries

from the respondents should there be a necessity for it. More so, very few studies on

consumer behavior have been identified when gathering secondary data as additional




16

information. Many of the studies were lifted from foreign sources since there were very

few studies conducted locally.

Method

Research Design

The study uses the descriptive research design. Descriptive research answers the

questions who, what, where, when and how. It is used to obtain information concerning the

current status of the phenomena to describe "what exists" with respect to variables or

conditions in a situation. In this case the factors on consumer buying behavior shall be

described. Correlation Research Design will be used for this research.

Respondents of the Study

The respondents of the study shall be the customers at Sasmuan Delicacies, which are

located at different malls, and also customers from supermarkets and grocery stores. Since the

total population is unknown, the Group will just take about 80 customers using convenience

sampling method. We used the sample size table in determining the required sample size with

confidence level of 95% and 5.0% margin of error.

Sources of Data

For primary data collection a questionnaire shall be administered to customers of

Sasmuan Delicacies in SM City Clark. Data shall be given to customers and may need to

conduct personal and interviews to assist customers in coming up with fast and reliable and

accurate answers. Our survey questionnaire is adapted from another study entitled, ―Factors

Affecting Impulse Buying Behavior of Consumers at Superstores in Bangladesh‖.




17

The researchers will collect secondary data from the different books and related studies.

The books and studies that the researchers will use are those that are related to consumer

buying behavior.

Data Analysis & Procedure

The researchers will use the Mean rating and Correlation as statistical tools in

determining which factors among consumer behavior will influence consumers to buy

Sasmuan products.

To further analyze results, the study will use both qualitative and quantitative methods.

For qualitative we will be using the mean rating and for quantitative method we will be using

correlation.

Table

1 2 3 4

Discount Offer

Various Scheme

Promotional Activities

Superstore Offer

Popularity of Product

Reference Group

Income Level

Festival Season




18

REFERENCES

Bennett, A.(2010). Big Book of Marketing, Lessons and Best Practices From The

World’s Greatest Companies, MC Graw Hill, 112p.

Brown, A. (2006). Chapter 6 Class Notes

Retrieved from

http://www.udel.edu/alex/chapt6.html [quoted 2006-07-05].

Esteban, R. (2009). Storm clouds over us: Understanding the Filipino consumer in times

of Crisis. Retrieved from

http://outspinning.blogspot.com/2009/03/consumer-behaviorduring- crisis-

tall.html

Gajjar, N. (2012). Factors Affecting Consumer Behavior,

Vol. 1, Issue:2, April 2013. Retrieved from:

http://raijmr.com/wp-content/uploads/2013/03/2_10-15-Dr.-Nilesh- B.-Gajjar.pdf

Horská E., & Sparke K., (2007): Marketing attitudes towards the functional food and

implications for market segmentation. Agricultural Economics – Czech, 53 (7):

349 –353.

Kotler, P. & Amstrong, G. (2008). Principle of Marketing, 12th

edition. New Jersey:

Prentice Hall.

Krishnan (2012) Consumer Behavior in the Philippines, Retrieved from

http://www.studymode.com/essays/Consumer-Behavior-In-The- Philippines-

Krishnan-1100472.html




19

Procházka, F. (2007). Buying behaviour of households in the Czech Republic.

Agricultural Economics – Czech, 53 (7): p.318 –324.

Purwanto, G. (2013). Analysis of Consumer Behavior Affecting Consumer Willingness

to Buy in 7-Eleven Convenience Store. Retrieved from

http://www.hrpub.org/download/201310/ujm.2013.010205.pdf

Schiffman G., & Kanuk L. (2004). Nákupníchování(Purchasing behaviour).

Computer Press, Brno.

Shah A., (2012). Factors Affecting Consumer Behavior.

Retrieved from

http://ezinearticles.com/?Factors-Affecting-Consumer- Behavior&id=4602848,

16.01.2012.

Solomon, M. (2004). Consumer Behavior. Buying, Having, and Being.Pearson

Prenctice Hall. Saddle River.

Stávková, J., Stejskal, L., & Toufarová, Z., (2008). Factors influencing consumer

behaviour. Retrieved from

http://www.agriculturejournals.cz/publicFiles/01585.pdf

Trommsdorff, V. (2002): Konsumentenverhalten.Kohlhammer, Stuttgart, 4th edition;

Yakup, D., & Jablonsk, S. (2012). Integrated Approach to Factors

Affecting Consumers Purchase Behavior in Poland and an

Empirical Study. Retrieved from

http://www.zainbooks.com/books/marketing/principles-of-

marketing_15_consumer-buying-behavior.html, 16.01.2012.




20

Yakup D., & Sevil Z., (2011). An Impirical Study on the Effect of Family Factor on

Consumer Buying Behaviors, Retrieved from

http://ccsenet.org/journal/index.php/ass/article/view/12453,16.01.20 12.




21

Consumer Buying Behavior Survey Questionnaire for Sasmuan Delicacies

Dear Sir/Madam,

We are 3rdYear Marketing Management students of Holy Angel University under theCollege of Business and Accountancy Program and currently doing a research onConsumer Buying Behavior. Our group is conducting a survey on what influencesconsumers to buy at Sasmuan Delicacies. May we request you to kindly spare a fewminutes and help us in the survey. Your co-operation will be highly appreciated. Pleaseput a tick (/) on the corresponding statements.

Name (Optional):

Age: 1. (18 - 25) 2. (26 - 35) 3. (36 - 45) 4. (45 - Above)

Gender : 1. Male 2. Female

Occupation: 1. Business 2. Service 3. OthersToday’s Spending Shopping Hours: 1. Long 2. Medium 3. Short

In the following scale, SA defines Strongly Agree, A defines Agree, D defines Disagree and SD defines Strongly Disagree. Please put one markfor each statement.

SA A D SD

5 4 3 21. Discount price of product affects unplanned

buying behavior.

2. Various schemes (like buy 1 get 1 free) affect

your buying behavior positively.

3. Various promotional activities motivate you to buy

products.

4. Any offer organized by superstores affects your

buying behavior.5. Display of product in store attracts your attention.

6. Behavior of sales person affects your buying

behavior.

7. Popularity of products increases recall value and

help in unplanned buying.




22

8. Comments of reference group influence your

buying behavior.

9. Your income status affects unplanned buying

behavior.10. Requirements of product in festival seasons

prompt you to buy.

Write down the products name which you bought today as unplannedpurchase (if any):

Documents

s as Muan Thesisas