The Influence of TRA Variables Consumers' Intent to Purchase - Essay Example

? The Influence of TRA Variables, Service Quality, and Merchandise Quality on Aldi Consumers’ Intent to Purchase Review of Related Literature The Theory of Reasoned Action The theory of reasoned action originally proposed by Fishbein and Ajzen (1975) is comprised of three variables- attitudes, subjective norms, and behavioural intentions. Attitudes refer to the set of beliefs regarding a certain behaviour that can be weighted by evaluating such beliefs whereas the subjective norms refer to the influence of individuals within the social environment and its impact on the person’s behavioural intentions. The personal beliefs of the person, balanced by the significance that he or she attributes to the influence of others, help determine behavioural intentions. Finally, behavioural intentions are the integration of one’s attitudes toward certain behaviour along with the subjective norms associated with such behaviour; behavioural intentions have also been shown to influence actual behaviour (Miller, 2005). The theory of reasoned action has been frequently used for determining the purchase intentions of consumers. For example, the study of Korzaan (2003) applied the theory on examining college student’s online purchasing intentions. Findings showed that attitudes toward online purchasing had a significant influence on behavioural intentions to become involved in conducting purchases online. The study of Kim and Cheung (2011) also showed how personal values and beliefs strongly influenced consumer attitudes toward purchasing a particular product; moreover, previous experiences also helped predict purchase intentions while perceived behavioural control acted as a mediator in the relationship between attitudes and purchase intentions. Buttle and Bok (1996) also found out that attitudes towards a particular behaviour as well as subjective norms can influence the intentions of tourists in selecting and returning to a certain hotel, although attitudes toward the behaviour played as more important role in determining tourists’ intentions. Furthermore, according to the study conducted by Ibrahim and Vignali (2005), attitudes and subjective norms can strongly influence the intentions of customers in selecting their preferred restaurant. Service Quality It has been asserted by Zeithaml, Parasuraman and Berry (1993) that the quality of services can be measured by examining the gap that exists between customers’ expectations and the actual services delivered by employees. Their SERVQUAL model was developed in order to measure such gap, thereby allowing organisations and researchers alike to determine possible service areas that can be further enhanced. Service quality can be evaluated through the perceptions of customers regarding a specific service and its level of quality, hence the following dimensions: reliability to identify whether employees were able to provide an accurate and dependable delivery of services; assurance which is characterized by the ability of employees to create a sense of trust and favourable expectations among customers; responsiveness which refers to the ability of employees in attending to their customers in a prompt manner; empathy that is demonstrated through care and concern for customers’ specific needs; and tangibles that are evident through physical appearances and materials. Service quality has been constantly linked to a number of concepts such as customer satisfaction and loyalty. According to Kondou (1999), customer satisfaction is a positive affective response that is brought about by the person’s evaluation of a certain situation. The theory and practice of service marketing heavily relies on the satisfaction of customer needs due as this can ultimately result to increased profitability. Companies that deliver services which customers often perceive as satisfying can not only increase satisfaction but also increase positive behavioural intentions through customer loyalty. Kang, Okamoto, and Donovan (2004) showed that tangibles showed that tangibles were the most important factor in keeping customers satisfied while empathy also had a positive impact on the emotional responses of the hotel guests. Shaikh (2009) also pointed out that responsiveness has greater significance than tangibles among local restaurants in Pakistan. Thus, due to the overemphasis of restaurants on their physical environment and facilities, it has also been suggested that their employees improve their responsiveness towards employees, ensuring the satisfaction of customers with regards to the quality of service delivery. 2A. Sample Profile Table 1. Mean and standard deviation: Age. N Minimum Maximum Mean Std. Deviation Age 150 18 81 34.17 12.297 Valid N (listwise) 150 The age profile of the combined sample of UK and German respondents yielded a mean of 34.17 years (sd=12.30 years). Table 2. Gender percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid Female 71 47.3 47.3 47.3 Male 79 52.7 52.7 100.0 Total 150 100.0 100.0 In terms of gender, the sample is composed of 53% males and 47% females. Table 3. Relationship status percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid single 59 39.3 39.3 39.3 married or in a relationship 91 60.7 60.7 100.0 Total 150 100.0 100.0 In terms of the relationship status of the consumers, those who are either married or in a relationship make up 61% of the sample. On the other hand, 39% are single. Table 4. Weekly spend percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid 0-39 ?/€/week 49 32.7 32.7 32.7 40-79 ?/€/week 69 46.0 46.0 78.7 80-119 ?/€/week 27 18.0 18.0 96.7 120+ ?/€/week 5 3.3 3.3 100.0 Total 150 100.0 100.0 Spend per week figures show that 46% spend from 40-79 ?/€, and 33% spend between 0-39 ?/€ weekly. 18% have mean spend falling within the 80-119 ?/€ bracket, and 3% spending 120 ?/€ or greater per week. Table 5. Annual income percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid 0-14??/€ 45 30.0 33.8 33.8 15-24??/€ 35 23.3 26.3 60.2 25-39??/€ 32 21.3 24.1 84.2 40+??/€ 21 14.0 15.8 100.0 Total 133 88.7 100.0 Missing System 17 11.3 Total 150 100.0 On the average yearly income in thousands ?/€, 30% belong to the 0-14 ?/€ category. In addition, 23% fall within the 15-24 ?/€ income bracket. 24% have annual incomes falling in the 25-39 ?/€ group, and 14% belonging to the 40+ ?/€ bracket. 11% did not answer the profile item. Table 6. Where they buy most of their daily consumed products - UK Sample: Percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid Tesco 25 16.7 31.6 31.6 ASDA 19 12.7 24.1 55.7 Sainsbury?s 20 13.3 25.3 81.0 ALDI 10 6.7 12.7 93.7 LIDL 4 2.7 5.1 98.7 Other 1 .7 1.3 100.0 Total 79 52.7 100.0 Missing System 71 47.3 Total 150 100.0 Among UK consumers, when asked where they buy most of their daily consumed products, 47% did not answer. 17% said Tesco; 13% answered Sainsbury?s; 13% expressed ASDA. 7% has ALDI as answer. In addition, 3% responded with LIDL; and 1% expressed Other. Table 7. Where they buy most of their daily consumed products - Germany Sample: Frequency and percentage breakdown. Frequency Percent Valid Percent Cumulative Percent Valid LIDL 23 15.3 32.4 32.4 EDEKA 6 4.0 8.5 40.8 REWE 18 12.0 25.4 66.2 ALDI 11 7.3 15.5 81.7 NETTO 6 4.0 8.5 90.1 OTHER 7 4.7 9.9 100.0 Total 71 47.3 100.0 Missing System 79 52.7 Total 150 100.0 The sample of German consumers suggest that they buy most of their daily consumed products from LIDL (15%). 12% answered REWE; 7% replied ALDI; while 5% has Others as answer. 4% each responded with either Edeka or Netto. 53% did not respond to the item. 2B. Differences in the TPB variables (Intention, Attitude, Subjective Norm and Perceived Behavioural Control) and in Service Quality and Merchandise Quality across Country Table 8. T-values for intention to purchase Aldi products. t df Sig. (2-tailed) Intention - I will purchase at ALDI the next time I need a product 1.367 148 .174 Intention - I will try ALDI within the next month .579 148 .563 int_avg -.072 148 .943 There are no significant t-values generated for the two countries on individual items of Intent to purchase from Aldi and its overall mean. Table 9 T-values on attitudes towards Aldi. T df Sig. (2-tailed) Attitude ALDI - good to bad -.160 148 .873 In addition, there are no significant differences between the two countries on attitudes towards Aldi. Table 10. T-values on subjective norms towards Aldi. t df Sig. (2-tailed) Subjective Norms - People who are important to me think that I should buy at ALDI 4.243 148 .000 Subjective Norms - People who influence my decisions think that I should buy at ALDI 2.991 148 .003 Subjective Norms - People who are important to me buy at ALDI 3.982 148 .000 Subjective Norms - People who are important to me do approve of me buying at ALDI 4.663 148 .000 sn_avg 4.512 148 .000 All of the statements in the Subjective Norms variable received significant differences. Looking at the means of the two countries, UK consumers received higher scores on all the statement of the variable and its overall average. Table 11. T-values of perceived behavioural control towards Aldi. t Df Sig. (2-tailed) Perceived Behavioural Control - It does fully depend on me whether I buy at ALDI or not -6.408 148 .000 Perceived Behavioural Control - It is fully under my control whether I buy at ALDI or not -3.939 148 .000 Perceived Behavioural Control - I have the capability to buy at ALDI -2.402 148 .018 pbc_avg -5.429 148 .000 Perceived Behavioural Control variable also received higher scores on all statements of the variable, including its overall mean. The averages of UK and Germany indicate that German consumers gave higher ratings on all statements and the overall mean of the variable (Table A4 Appendix A). Table 12. T-values on service quality of Aldi. t df Sig. (2-tailed) Service Quality ALDI - customer could expect be treated well 1.739 148 .084 Service Quality ALDI - employees could be expected to give customers personal attention 2.494 148 .014 Service Quality ALDI - employees would be willing to help customers .052 148 .959 Service Quality ALDI - ALDI would offer high-quality service 2.788 148 .006 Service Quality ALDI - employees would respond to customers? requests promptly 1.365 148 .174 service_quality_avg 1.909 148 .058 For the independent variable Service Quality, two items garnered significant outcomes. These statements are the following: Employees could be expected to give customers personal attention (t=2.49, p=.014); and ALDI would offer high-quality service (t=2.79, p=.006) (Table A5, Appendix A). Table 13. T-values on merchandise quality of Aldi. t df Sig. (2-tailed) Merchandise Quality ALDI - Products purchased from ALDI would be high in quality .689 148 .492 Merchandise Quality ALDI - Products purchased from ALDI have an acceptable standard of quality -2.146 148 .034 merchandise_quality_avg -.729 148 .467 Merchandise Quality yielded significant outcomes only for one statement: Products purchased from ALDI have an acceptable standard of quality (t=-2.146, p=.034), with German consumers granting higher scores to the statement (Table A6, Appendix A). 2C) Regression of Intention on Attitude, Subjective Norm and Perceived Behavioural Control Table 14. R2: TRA variables. Model R R Square Adjusted R Square Std. Error of the Estimate 1 .572(a) .327 .313 1.21219 a Predictors: (Constant), pbc_avg, sn_avg, Attitude ALDI - good to bad 31% of the variation in the dependent variable, intent to purchase Aldi, is explained by the independent variables of the TRA model, as shown by the adjusted R2 in the foregoing table. Table 15. One-way ANOVA: TRA variables. Model Sum of Squares df Mean Square F Sig. 1 Regression 104.142 3 34.714 23.625 .000(a) Residual 214.531 146 1.469 Total 318.673 149 a Predictors: (Constant), pbc_avg, sn_avg, Attitude ALDI - good to bad b Dependent Variable: int_avg The one-way ANOVA table indicates that there are independent variables in Model 1 that significantly predict Intent to Purchase (F=23.62, p=.00). Table 16. Beta coefficients: TRA variables. Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) .413 .969 .426 .670 Attitude ALDI - good to bad .420 .103 .292 4.098 .000 sn_avg .419 .071 .421 5.931 .000 pbc_avg .035 .165 .015 .210 .834 a Dependent Variable: int_avg The three independent variables of the TRA are not all significant predictors of intent to purchase. Only Attitudes towards Aldi (B=.292, p=.00) and subjective norms (B=.421, p=.00) are significantly and positively correlated with intent to purchase from Aldi. These are supported by their positive Beta coefficients. 2D) The additional contribution of Service Quality and Merchandise Quality to the TPB model Table 17. R2: Models 1 and 2. Model R R Square Adjusted R Square Std. Error of the Estimate 1 .572(a) .327 .313 1.21219 2 .611(b) .373 .352 1.17754 a Predictors: (Constant), pbc_avg, sn_avg, Attitude ALDI - good to bad b Predictors: (Constant), pbc_avg, sn_avg, Attitude ALDI - good to bad, service_quality_avg, merchandise_quality_avg The table above suggests that the TRA variables of attitudes, subjective norms, and perceived behavioural control account for 31.3% in the variation of Intent to Purchase from Aldi. When Service Quality and Merchandise Quality are added onto the model, Model 2 now explains 35.2% of the variance in Intent to Purchase. With this, the additional two variables contribute only 3.9% explanatory power in accounting for the variance of Intent to Purchase. This is determined as the difference between the two coefficients of determination of Models 1 and 2. Table 18. Betas: Models 1 and 2. Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) .413 .969 .426 .670 Attitude ALDI - good to bad .420 .103 .292 4.098 .000 sn_avg .419 .071 .421 5.931 .000 pbc_avg .035 .165 .015 .210 .834 2 (Constant) -.227 .962 -.236 .814 Attitude ALDI - good to bad .310 .106 .215 2.923 .004 sn_avg .315 .076 .316 4.153 .000 pbc_avg .001 .162 .001 .009 .993 service_quality_avg .147 .099 .119 1.478 .142 merchandise_quality_avg .268 .133 .176 2.007 .047 a Dependent Variable: int_avg 3) Discussion The outcomes of the statistical analyses from SPSS indicate that there are no significant differences from the intent to purchase Aldi from consumers of the UK and Germany. The averages show neutral ratings on intent to purchase. Attitudes of consumers towards Aldi indicate similar outcomes. In addition, subjective norms suggest that UK consumers are affected by these considerations more than German consumers. In comparison, perceived behavioural control is stronger among German consumers, as proven by the higher scores of German consumers on all items of this variable. Personal attention and expectation of high quality service were higher among UK respondents. Merchandise quality , specifically products from ALDI having an acceptable standard of quality was stronger/higher for German respondents. In general, the TRA variables make for 31.3% of the variation in intent to purchase Aldi products. Attitudes towards Aldi and subjective norms turned out to be significant predictors of intent to purchase Aldi products. Service quality and merchandise quality made up for a small percentage of the variability in the dependent variable, explaining only 4% in the coefficient of determination of Model 2. According to the theory of reasoned action, individuals use their common sense in order to enable them to think and act in a rational and reasonable manner. They are also driven to behave in a way that is socially acceptable for others. Consequently, these sensible actions and behaviours can result to them attaining their desired outcomes whereas their cooperation and involvement with the society allow these human beings to address the possible expectations that others have (Fishbein and Ajzen, 1975). An individual’s behaviour can be influenced by his/her intention in actually carrying out the behaviour with which this intention is affected by his/her attitude towards this certain behaviour along with subjective norms. Behaviour is best determined by intention as the latter refers to the willingness of the individual to carry out a specific behaviour and has been often considered as the direct precursor of behaviour. It has been generally considered that a more positive attitude and subjective norm can lead to a stronger intention for performing a specific behaviour (Miller, 2005).In the context of the present study, only attitudes and subjective norms figured as significant predictors of Intent to Purchase Aldi products. Korzaan’s (2003) study made use of the theory of reasoned action on examining college student’s intentions in conducting their purchases online. Attitudes were significantly shown to have a positive impact on their behavioural intentions, which are consistent with the findings of the present study. Thus, staff members who are responsible for e-commerce are suggested to be efficient in implementing and following high standards of online service quality in order to positively influence consumers’ attitudes toward online purchase transactions. While service quality was not a significant predictor of intention to purchase, it may affect attitudes of consumers, which is a significant predictor of the latter. Kim and Cheung (2011) also indicated how the theory of reasoned action can help determine the impact of previous experiences and consumer values on the purchase intentions of consumers. Surveys showed how personal values and beliefs can have a significant impact on consumer attitudes with regards to purchasing a certain product. Previous experiences can also influence customers’ intentions of purchasing whereas behavioural control was shown to mediate the gap between customers’ attitudes and behavioural intentions for purchasing. Parasuraman et al (1988) suggested five dimensions that can influence service quality which they perceive as the gap between customer expectations and the actual performance of employees in performing the expected services. First is reliability that characterizes the ability of service providers in carrying out the services that are expected from them by demonstrating a responsible and trustworthy behaviour. Next is assurance which refers to the courtesy and politeness shown by employees to customers, thereby encouraging the establishment of positive beliefs and expectations among such customers towards the service experience. Responsiveness refers to the enthusiasm of service workers in helping and being of assistance to their customers whereas empathy is characterized by the capability of service providers in attending to each of their customers’ needs by treating them individually and adapting to their specific requirements. Meanwhile, tangibles are exhibited through physical appearances of both the employees involved in the service delivery as well as of the facilities, equipment, and materials used in the process. While service quality explained little in terms of the variability in intent to purchase, it may influence attitudes, which is a significant predictor of intent to buy. This makes it worthwhile to still work on optimising quality of service and product at Aldi. Recommendations Organisations are increasingly realising how customers at present demand that the former’s product and service quality be constantly improved. Due to the availability of numerous alternatives, customers may be readily to switch providers when dissatisfied with a company’s service and product. Thus, there is a great need to create satisfaction and other positive emotional responses among customers to ensure that they continue their relations with the service provider (Kondou, 1999). Recommendations Thus, it has been suggested that effective marketing strategies be implemented to help increase the intentions of consumers in purchasing certain products. Attitudes and subjective norms are of particular relevance to Aldi; however, the constraints of the present study in terms of sample size, internal and external validity have to be considered in deriving insights from the conclusions. It was found out that TRA variables have a strong impact on consumers’ behavioural intentions of purchasing Aldi products. Other factors should be taken into consideration when determining customers’ intention to purchase, such as their demographics; ratings in comparison with competitors, and the like. References Buttle, F., and Bok, B. (1996). Hotel marketing strategy and the theory of reasoned action. International Journal of Contemporary Hospitality Management, 8(3), 5 – 10. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behaviour: An introduction to theory and research. Reading, MA: Addison-Wesley Ibrahim, Y., and Vignali, C. (2005). Predicting consumer patronage behaviour in the Egyptian fast food business. Innovative Marketing, 1(2). Kang, S., Okamoto, N., and Donovan, H.A. (2004). Service quality and its effect on customer satisfaction and customer behavioural intentions: hotel and ryokan guests in Japan. Asia Pacific Journal of Tourism Research, 9(2), 189-202. Kheng, L.L., Mahamad, O., Ramayah, T., and Mosahab, R. (2010). The impact of service quality on customer loyalty: a study of banks in Penang, Malaysia. International Journal of Marketing Studies, 1(2), 57-66. Kim, H.Y., and Chung, J. (2011). Consumer purchase intention for organic personal care products. Journal of Consumer Marketing, 28 (1), 40 – 47. Kondou, T. (1999). Service marketing. Tokyo: Syakaikeizaiseisannseihobu (Society economic Pub.). Korzaan, M. (2003). Going with the flow: predicting online purchase intentions. The Journal of Computer Information Systems, 43(4), 25-31. Miller, K. (2005). Communications theories: perspectives, processes, and contexts. New York: McGraw-Hill. Parasuraman, A., Zeithamal, V.A. and Berry, L.L. (1988) SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality, Journal of Retailing, 64(1), 12-40. Shaikh, U. (2009). Impact of service quality on customer satisfaction: evidence from the restaurant industry in Pakistan, The Business Review, 13 (2). Appendix A – Descriptive Statistics from SPSS Table A1. Descriptive statistics: Intention. Country N Mean Std. Deviation Std. Error Mean Intention - I will purchase at ALDI the next time I need a product United Kingdom 79 3.04 1.531 .172 Germany 71 2.69 1.582 .188 Intention - I will try ALDI within the next month United Kingdom 79 4.08 1.421 .160 Germany 71 3.92 1.955 .232 int_avg United Kingdom 79 3.6118 1.30791 .14715 Germany 71 3.6291 1.62671 .19306 Table A2. Descriptive statistics: Attitudes. Country N Mean Std. Deviation Std. Error Mean Attitude ALDI - good to bad United Kingdom 79 3.99 1.080 .122 Germany 71 4.01 .949 .113 Table A3 Descriptive statistics: Subjective norms. Country N Mean Std. Deviation Std. Error Mean Subjective Norms - People who are important to me think that I should buy at ALDI United Kingdom 79 3.48 1.526 .172 Germany 71 2.38 1.651 .196 Subjective Norms - People who influence my decisions think that I should buy at ALDI United Kingdom 79 3.28 1.601 .180 Germany 71 2.48 1.672 .198 Subjective Norms - People who are important to me buy at ALDI United Kingdom 79 3.87 1.234 .139 Germany 71 2.92 1.697 .201 Subjective Norms - People who are important to me do approve of me buying at ALDI United Kingdom 79 4.04 1.523 .171 Germany 71 2.82 1.684 .200 sn_avg United Kingdom 79 3.6677 1.19944 .13495 Germany 71 2.6479 1.56101 .18526 Table A4 Descriptive statistics: Perceived behavioural control. Country N Mean Std. Deviation Std. Error Mean Perceived Behavioural Control - It does fully depend on me whether I buy at ALDI or not United Kingdom 79 5.00 .906 .102 Germany 71 5.79 .532 .063 Perceived Behavioural Control - It is fully under my control whether I buy at ALDI or not United Kingdom 79 5.39 .791 .089 Germany 71 5.80 .401 .048 Perceived Behavioural Control - I have the capability to buy at ALDI United Kingdom 79 5.41 .777 .087 Germany 71 5.70 .744 .088 pbc_avg United Kingdom 79 5.2658 .66320 .07462 Germany 71 5.7653 .42312 .05021 Table A5 Descriptive statistics: Service quality. Country N Mean Std. Deviation Std. Error Mean Service Quality ALDI - customer could expect be treated well United Kingdom 79 3.73 1.337 .150 Germany 71 3.37 1.245 .148 Service Quality ALDI - employees could be expected to give customers personal attention United Kingdom 79 3.47 1.289 .145 Germany 71 2.93 1.356 .161 Service Quality ALDI - employees would be willing to help customers United Kingdom 79 3.53 1.348 .152 Germany 71 3.52 1.119 .133 Service Quality ALDI - ALDI would offer high-quality service United Kingdom 79 3.77 1.467 .165 Germany 71 3.15 1.215 .144 Service Quality ALDI - employees would respond to customers? requests promptly United Kingdom 79 3.59 1.455 .164 Germany 71 3.30 1.200 .142 service_quality_avg United Kingdom 79 3.6203 1.26109 .14188 Germany 71 3.2535 1.07062 .12706 Table A6 Descriptive statistics: Merchandise quality. Country N Mean Std. Deviation Std. Error Mean Merchandise Quality ALDI - Products purchased from ALDI would be high in quality United Kingdom 79 3.94 1.202 .135 Germany 71 3.82 .883 .105 Merchandise Quality ALDI - Products purchased from ALDI have an acceptable standard of quality United Kingdom 79 4.10 1.150 .129 Germany 71 4.45 .789 .094 merchandise_quality_avg United Kingdom 79 4.0190 1.12502 .12657 Germany 71 4.1338 .74142 .08799 Read More