Theory of Planning Behavior - Assignment Example

Data Analysis xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Theory of Planning Behaviour xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Your Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course title xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor’s Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date of submission xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Data Analysis Literature review Theory of Planned Behaviour (TPB) is a theory that depicts the robustness and plausibility of Ajzen research on this particular business field. It mainly focuses on prediction and explanation of people’s behaviour by putting into consideration their attitude, attention, subjective norms, Perceived Behavioral Control (PBC), service quality and merchandise quality. Ajzen defines attitude as an intervening variable and a hypothetical construct that cannot be directly observed but is usually inferred. It is usually influenced by people’s likes and dislikes, environment, objects and recognition. Subjective norms are those behaviors that are influenced by organizations or persons that are of great importance to the individual. PBC is composed of control beliefs based on objective situations such as money, time, and resources as well as the control power possessed by individuals over these factors (Armitage & Christian, 2004, p.25). This paper will give a detailed quantitative research and analysis on attitude, intention, subjective norms, perceived behaviour control, service quality, and merchandise quality on purchasing of consumer products from ALDI. A formative research carried out on the several predictors shows that two or more predictors are likely to change if their relative weight is put into consideration when checking on intervention. It was observed that the higher the relative weight of any factor under study, the higher the probability that the changing factors will have a positive or negative influence on one’s behavior and intentions. Attitudes, PBC, and subjective norms relative weights can be estimated by use of path coefficients or standardized regression analysis. A study carried out on measurement of belief strength shows that behavioral beliefs usually associate one’s behaviour with particular attributes and outcomes. A strong belief is associated with increased probability that a certain outcome will be observed and the more unfavorable or favorable is the expected outcome, the higher the effect of belief on one’s attitude. The outcome of belief strength is further dependent on approval from certain referent groups or individuals as well as the power to of certain factors which contribute in facilitating or inhibiting performance of a certain behavior (Armitage & Christian, 2004, p.54). An investigation carried out by Ajzen on the residual impacts on of past actions on later behaviour shows that past experiences can only be used in prediction of later behaviour if and only if the existing circumstances remain stable. Any unbearable past behaviors are likely to vanish when the intentions become stronger, when the realistic expectations have been put down and when precise strategy for implementation of intention are well developed. According to Armitage & Christian (2004, p.100) TPB tries to explain that increasing people’s knowledge do not necessarily change the behavior but can only be achieved if more emphasis is placed on perceived norms, subjective norms, attitude and PBC. Moreover, the value based management programs that mainly concentrate on management knowledge transfer are not equally successful as those that focus on convincing people to change their operational intentions and put more emphasis on controlling their attitudes, PBC and subjective norms. This research will aid in investigation of TPB in United Kingdom (UK) and Germany with regard to consumer intention and attitude on the various subjective norms, PBC, service quality and merchandise quality. The results obtained from the study TPB at ALDI will help in explaining certain behaviour by the customers, employees and the society at large which will in turn aid in planning and formulation of strategies with the entire aim of encouraging positive attitude thus increasing the customers’ intention to purchase. Data analysis Sample profile Country It was observed that majority of the respondents 51% were from United Kingdom while 49% of the respondents were from Germany Figure 1: Country Gender The researcher put into consideration gender equality in his research since the results show that 53% of the respondents were male while 47% of the respondents were female. Figure 2: Gender Age Age was another essential factor put into consideration by the researcher. It was observed that the mean age of the respondents was 34.01 years with a standard error of 0.966, the median was 31 years, mode was 27years, and range was 63 years while the minimum and maximum age was 18 and 81 years respectively. Table 1: Age Parameter Value Mean 34.01 Std. Error of Mean .966 Median 31.00 Mode 27 Std. Deviation 11.830 Variance 139.953 Range 63 Minimum 18 Maximum 81 Sum 5101 Relationship status Due to the fact that subjective norm is one of the TPB components that is under study, it was important to put into consideration the relationship status. It was observed that 39% of the respondents were single while 61% were married or in a relationship. Figure 3: Relationship status A place one buys most of the daily consumed products in United Kingdom It was observed that in United Kingdom, majority of the respondents (34.2%) purchased their daily products at Tesco, which is followed by Sainsbury’s by 26.3%, this is followed by ASDA by 23.7%, then ALDI follows by 9.2% and the last one is LIDL by 6.6%. Figure 4: A place where one buys most of the daily consumed products in UK A place one buys most of the daily consumed products in Germany It was observed that in Germany, majority of the respondents (35.1%) purchased their daily products from LIDL, 31.1% purchased from REWE, this is followed by ALDI by 12.2%, then EDEKA and NETTO by 8.1% each and finally others by 5.4% Figure 5: A place where one buys most of the daily consumed products in Germany Frequency of buying at ALDI The results show that 28.7% of the respondents purchased goods and services from ALDI once a month, 23.3% purchased at a frequency of 2-3 times monthly, 22% purchased once per week, 16.7 purchased several times a week while 9.3% never purchased from ALDI. Figure 6: Frequency of buying at ALDI Differences in the TPB variables across Country Intention by country In his quest to determine the differences in TPB variables, intention of the respondents was investigated. It was observed that those from United Kingdom who said that it is definitely true that there is a high likelihood that they will purchase at ALDI within the next month formed a proportion of 32.9%. Those from Germany who approved that it is definitely true that they will purchase from ALDI within the next month were 62.2% giving a majority total of 47.3%. When asked if they would purchase from ALDI the next time they need a product a majority of 28.9% from United kingdom said No and 21.6% from Germany said definitely not while another 21.6% were undecided on the same. The results show that a majority total of 24% gave negative consent with regard to this query. The findings further show that a majority of 40.8% from the United Kingdom would definitely try ALDI within the next month. Those from Germany who gave a strong assurance of trying ALDI the following month were 48.6%. The two gave a strong assurance of 44.7%. Table 2: Intention by country It is very likely that I will buy at ALDI within the next month Country Definitely No No Neutral Yess Definitely Yes Total United Kingdom 9.2% 6.6% 26.3% 25.0% 32.9% 100.0% Germany 13.5% 2.7% 4.1% 7.6% 62.2% 100.0% Total 11.3% 4.7% 15.3% 1.3% 47.3% 100.0% I will purchase at ALDI the next time I need a product Definitely No No Neutral Yes Definitely Yes Total United Kingdom 14.5% 28.9% 23.7% 10.5% 22.4% 100.0% Germany 21.6% 18.9% 21.6% 20.3% 17.6% 100.0% Total 18.0% 24.0% 22.7% 15.3% 20.0% 100.0% I will try ALDI within the next month Country Definitely No No Neutral Yes Definitely Yes Total United Kingdom 5.3% 5.3% 21.1% 27.6% 40.8% 100.0% Germany 12.2% 9.5% 21.6% 8.1% 48.6% 100.0% Total 8.7% 7.3% 21.3% 18.0% 44.7% 100.0% Attitude ALDI by country In his pursuit to determine the differences in TPB variables, attitude of the respondents was investigated. It was observed that majority of the United Kingdom residents (35.5%) had a very good attitude towards ALDI. The Germany residents who had a very good attitude towards ALDI were 31.1% of the respondents. It is clear from the results that majority had a good attitude towards ALDI since 66.6% of the individuals gave a positive response. Table 3: Attitude ALDI by country Attitude ALDI - good to bad Country Very bad Bad Neutral good Very good Total United Kingdom 1.3% 5.3% 27.6% 30.3% 35.5% 100.0% Germany .0% 4.1% 28.4% 36.5% 31.1% 100.0% Total .7% 4.7% 28.0% 33.3% 33.3% 100.0% Subjective Norms People who are important to me think that I should buy at ALDI When majority of the respondents were interrogated on the perception of their friends, a majority of 32.9% in the United Kingdom strongly agreed that people who are important to them think they should buy at ALDI. Germany residents were neutral on the same by 36.5%. Nevertheless it was observed that majority of the individuals were neutral by 30%. Table 4: People who are important to me think that I should buy at ALDI People who are important to me think that I should buy at ALDI Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 13.2% 7.9% 23.7% 22.4% 32.9% 100.0% Germany 29.7% 8.1% 36.5% 20.3% 5.4% 100.0% Total 21.3% 8.0% 30.0% 21.3% 19.3% 100.0% People who influence my decisions think that I should buy at ALDI When the respondents were asked on the perceptions of the people who influence their decisions with regard to buying at ALDI, it was found out that a majority of 30.3% from the UK strongly agreed to the query. It was also found that a majority of 36.5% from Germany were neutral about the same. Nevertheless, many of the individuals from the two countries were neutral by 27.3%. Table 5: People who influence my decisions think that I should buy at ALDI People who influence my decisions think that I should buy at ALDI Country Strongly disagree Disagree Neutral Agree Strongly agree TTotal United Kingdom 15.8% 17.1% 18.4% 18.4% 30.3% 100.0% Germany 29.7% 10.8% 36.5% 12.2% 10.8% 100.0% Total 22.7% 14.0% 27.3% 15.3% 20.7% 100.0% People who are important to me buy at ALDI When the respondents were asked if people who are important to them buy at ALDI, it was found out that 38.2%from UK strongly agreed, 33.8% from Germany were neutral. The overall results show that majority of the individuals who are important to the respondents usually purchase their consumer goods at ALDI by 28.7%. Table 6: People who are important to me buy at ALDI People who are important to me buy at ALDI Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 2.6% 10.5% 23.7% 25.0% 38.2% 100.0% Germany 17.6% 12.2% 33.8% 17.6% 18.9% 100.0% Total 10.0% 11.3% 28.7% 21.3% 28.7% 100.0% People who are important to me do approve of me buying at ALDI In the quest to know whether the people who are important to the respondents usually approve their buying of consumer goods at ALDI, 50% of UK residents strongly agreed to this while 37.8% of the Germany residents were neutral. It is clear that majority of the individuals who were important to the respondents approved their purchasing at ALDI due to the strong agreement by 35.3%. Table 7: People who are important to me buy at ALDI People who are important to me do approve of me buying at ALDI Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 7.9% 11.8% 14.5% 15.8% 50.0% 100.0% Germany 24.3% 5.4% 37.8% 12.2% 20.3% 100.0% Total 16.0% 8.7% 26.0% 14.0% 35.3% 100.0% Perceived Behavioral Control by Country When asked if the respondents make an independent decision of purchasing at ALDI, it was observed that 55.3% of respondents from UK agreed to this statement, a majority of 74.3% from Germany strongly agreed while a total of 36% from both countries agreed to the statement. The findings also show that a majority of 47.4% from UK and 79.7% from Germany strongly agreed to the fact that it is fully under their own control to decide whether to buy at ALDI or not. It is also clear that majority of the interrogated respondents’ have the capability of buying at ALDI by 55.3% from UK and 81.1% from Germany strongly agreeing to this statement. Table 8: Perceived Behavioral Control by Country It does fully depend on me whether I buy at ALDI or not Country strongly disagree disagree Neutral Agree Strongly agree Total United Kingdom 1.3% 3.9% 10.5% 55.3% 28.9% 100.0% Germany .0% 2.7% 6.8% 16.2% 74.3% 100.0% Total .7% 3.3% 8.7% 36.0% 51.3% 100.0% It is fully under my control whether I buy at ALDI or not Country Strongly disagree disagree Neutral Agree Strongly agree Total United Kingdom 1.3% 5.3% .0% 46.1% 47.4% 100.0% Germany .0% .0% 2.7% 17.6% 79.7% 100.0% Total .7% 2.7% 1.3% 32.0% 63.3% 100.0% I have the capability to buy at ALDI strongly disagree disagree Neutral Agree Strongly agree Total United Kingdom 1.3% 0% 11.8% 31.6% 55.3% 100.0% Germany 1.4% 2.7% .0% 14.9% 81.1% 100.0% Total 1.3% 1.3% 6.0% 23.3% 68.0% 100.0% Service Quality ALDI by country Customer could expect to be treated well In his pursuit to discover if the customer could expect to be treated well at ALDI it was observed that a majority of 39.5% from UK were neutral while 44.6% from Germany agreed to this. Generally, majority of the respondents (31.3%) were positive about the way customers are treated at ALDI. Table 9: Customer could expect be treated well Customer could expect be treated well Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 3.9% 7.9% 39.5% 18.4% 30.3% 100.0% Germany 9.5% 12.2% 17.6% 44.6% 16.2% 100.0% Total 6.7% 10.0% 28.7% 31.3% 23.3% 100.0% Employees could be expected to give customers personal attention When asked if employees could be expected to give customers personal attention, it was observed that a majority of 32.9% from UK were neutral, a majority of 33.8% from Germany agreed while a total of 30% agreed to the statement. Table 10: Employees could be expected to give customers personal attention Employees could be expected to give customers personal attention Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 5.3% 8.4% 32.9% 26.3% 17.1% 100.0% Germany 9.5% 25.7% 20.3% 33.8% 10.8% 100.0% Total 7.3% 22.0% 26.7% 30.0% 14.0% 100.0% Employees would be willing to help customers When interrogated on the willingness of employees at ALDI in helping customers, a majority of 32.4% of respondents from UK was neutral, a majority of 32.4% from Germany was neutral and the same proportion agreed to the statement. It is evident that few employees are usually willing to help since the two countries are neutral about the statement by 32.7%. Table 11: Employees would be willing to help customers Employees would be willing to help customers Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 7.9% 11.8% 32.9% 21.1% 26.3% 100.0% Germany 2.7% 10.8% 32.4% 32.4% 21.6% 100.0% Total 5.3% 11.3% 32.7% 26.7% 24.0% 100.0% ALDI would offer high-quality service It is clear from the results that the quality of services offered at ALDI is medium since a majority of 30.7% of the respondents from both countries was neutral about the statement that ALDI would offer high-quality services. Table 12: ALDI would offer high-quality service ALDI would offer high-quality service Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 6.6% 13.2% 25.0% 26.3% 28.9% 100.0% Germany 10.8% 12.2% 36.5% 29.7% 10.8% 100.0% Total 8.7% 12.7% 30.7% 28.0% 20.0% 100.0% Employees would respond to customers´ requests promptly In the quest to know if ALDI’s employees would respond to customers’ requests promptly, it was found that 36.8% of the respondents from UK strongly agreed, 36.5% of customers from Germany agreed while total majorities of 31.3% of the respondents were neutral. Table 13: Employees would respond to customers´ requests promptly Employees would respond to customers´ requests promptly Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 5.3% 14.5% 31.6% 11.8% 36.8% 100.0% Germany 4.1% 14.9% 31.1% 36.5% 13.5% 100.0% Total 4.7% 14.7% 31.3% 24.0% 25.3% 100.0% Merchandise Quality ALDI by country The results give the evidence that the products purchased from ALDI are of high quality since a majority of 32.9% from UK agreed, a majority of 47.3% of respondents from Germany also agreed which eventually attributes to a total of 40% of the respondents agreeing to the statement. Moreover, it is vivid that products purchased from ALDI have an acceptable standard of quality by a total of 45.3% strongly agreeing to the statement. Table 14: Merchandise Quality ALDI by country Products purchased from ALDI would be high in quality Country Strongly disagree Disagree Neutral Agree Strongly agree Total United Kingdom 2.6% 5.3% 27.6% 32.9% 31.6% 100.0% Germany 1.4% 6.8% 23.0% 47.3% 21.6% 100.0% Total 2.0% 6.0% 25.3% 40.0% 26.7% 100.0% Products purchased from ALDI have an acceptable standard of quality United Kingdom 2.6% 5.3% 19.7% 34.2% 38.2% 100.0% Germany 1.4% 1.4% 4.1% 40.5% 52.7% 100.0% Total 2.0% 3.3% 12.0% 37.3% 45.3% 100.0% Application of TPB using averaged variables In the quest to determine the relationship between averaged intention with subjective norms and PBC average it was observed that there is a significant relationship between the subjective norms average and averaged intention. Table 15: Application of TPB using averaged variables Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) -.615 .942 -.652 .515 Subjective norms average .294 .077 .299 3.792 .000 PBC average .249 .158 .109 1.580 .116 a. Dependent Variable: intention average Significance at 0.05 probability level Application of TPB using likelihood of buying at ALDI within the next month In pursuit of the relationship between the likelihood of buying at ALDI within the next month with subjective norms and PBC average, it was observed that there is a significant relationship between the likelihood of buying at ALDI within the next month and attitude, people who are important to the respondent buy at ALDI, it does fully depend on the respondent whether he/she buys at ALDI or not and it is fully under one’s control whether to buy at ALDI or not. Table 16: Application of TPB using likelihood of buying at ALDI within the next month Estimate Std. Error Wald df Sig. 95% Confidence Interval Lower Bound Upper Bound Threshold [INT1 = 1] 6.470 1.852 12.200 1 .000 2.840 10.101 [INT1 = 2] 7.014 1.863 14.174 1 .000 3.362 10.665 [INT1 = 3] 8.399 1.905 19.433 1 .000 4.665 12.133 [INT1 = 4] 9.837 1.954 25.337 1 .000 6.007 13.667 Location attitude .417 .212 3.867 1 .049 .001 .833 SN1 .043 .267 .026 1 .871 -.480 .567 SN2 .234 .257 .828 1 .363 -.270 .738 SN3 .491 .213 5.322 1 .021 .074 .909 SN4 -.239 .187 1.639 1 .201 -.604 .127 PBC1 .691 .266 6.741 1 .009 .169 1.212 PBC2 -.538 .302 3.182 1 .074 -1.129 .053 PBC3 .060 .254 .055 1 .814 -.438 .557 Link function: Logit. Significance at 0.05 probability level Application of TPB using the intention of purchasing at ALDI the next time one requires a product In the quest to determine the intention of purchasing at ALDI the next time one requires a product, the findings show that there is a relationship between attitude, people who are important to the respondent buy at ALDI and people who are of importance to someone approve of them purchasing at ALDI. Table 17: Application of TPB using the intention of purchasing at ALDI the next time one requires a product Estimate Std. Error Wald df Sig. 95% Confidence Interval Lower Bound Upper Bound Threshold [INT2 = 1] 3.962 1.596 6.165 1 .013 .835 7.089 [INT2 = 2] 5.646 1.630 11.994 1 .001 2.451 8.841 [INT2 = 3] 6.924 1.662 17.360 1 .000 3.667 10.181 [INT2 = 4] 7.988 1.686 22.451 1 .000 4.684 11.293 Location attitude .367 .195 3.550 1 .060 -.015 .750 SN1 .341 .250 1.852 1 .174 -.150 .832 SN2 .199 .239 .689 1 .406 -.270 .668 SN3 .346 .192 3.260 1 .071 -.030 .722 SN4 -.472 .177 7.143 1 .008 -.819 -.126 PBC1 -.250 .249 1.007 1 .316 -.739 .239 PBC2 -.099 .269 .136 1 .712 -.627 .428 PBC3 .283 .250 1.286 1 .257 -.206 .773 Link function: Logit. Significance at 0.05 probability level Application of TPB using the intention of trying ALDI within the next month In an attempt to determine the relationship between the intentions of trying ALDI within the next month, it was observed that there is a positive relationship between the intentions of trying ALDI within the next month and people who influence the respondent’s decisions think that he/she should buy at ALDI, people who are important to the respondent buy at ALDI and having the capability to buy at ALDI. Table 18: Application of TPB using the intention of trying ALDI within the next month Estimate Std. Error Wald df Sig. 95% Confidence Interval Lower Bound Upper Bound Threshold [INT3 = 1] 3.702 1.622 5.210 1 .022 .523 6.880 [INT3 = 2] 4.470 1.629 7.533 1 .006 1.278 7.663 [INT3 = 3] 5.918 1.661 12.687 1 .000 2.661 9.174 [INT3 = 4] 6.951 1.687 16.978 1 .000 3.645 10.257 Location attitude .056 .200 .078 1 .780 -.337 .449 SN1 -.141 .271 .271 1 .602 -.671 .390 SN2 .042 .264 .026 1 .020 -.474 .559 SN3 .700 .205 11.593 1 .001 .297 1.102 SN4 -.019 .175 .011 1 .915 -.362 .325 PBC1 .157 .256 .375 1 .540 -.345 .659 PBC2 .116 .276 .177 1 .674 -.425 .657 PBC3 .073 .251 .085 1 .041 -.418 .564 Link function: Logit. Significance at 0.05 probability level Additional contribution of Service Quality and Merchandise Quality to the TPB model Additional contribution of attitude average to TPB model A regression analysis was conducted with the aim of determining the contribution of service quality and merchandise quality to the TPB model. The findings show that there is significant relationship between averaged intention with service quality average and merchandise quality. Table 19: Additional contribution of attitude average to TPB model Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) .790 .445 1.777 .078 service_quality avg .243 .105 .203 2.313 .022 merchandise_quality avg .499 .127 .344 3.927 .000 a. Dependent Variable: intention average Significance at 0.05 probability level Additional contribution of attitude to TPB model In his quest to determine the relationship between attitude with service quality and merchandise quality, the findings show that there is a relationship between attitude and ALDI would offer high quality service, employees would respond to customers’ requests promptly, products purchased from ALDI supplies quality products which positively influence the attitudes of the respondents. Table 20: Additional contribution of attitude to TPB model Estimate Std. Error Wald df Sig. 95% Confidence Interval Lower Bound Upper Bound Threshold [attitude = 1] -1.495 1.183 1.597 1 .206 -3.813 .824 [attitude = 2] .707 .786 .809 1 .368 -.833 2.246 [attitude = 3] 3.165 .805 15.480 1 .000 1.589 4.742 [attitude = 4] 4.780 .854 31.306 1 .000 3.105 6.454 Location SQ1 -.016 .251 .004 1 .949 -.507 .475 SQ2 -.035 .249 .020 1 .887 -.523 .452 SQ3 .064 .248 .068 1 .795 -.421 .550 SQ4 -.598 .268 4.971 1 .026 -1.124 -.072 SQ5 .561 .266 4.440 1 .035 .039 1.083 MQ1 .652 .243 7.197 1 .007 .176 1.129 MQ2 .342 .246 1.937 1 .064 -.140 .823 Link function: Logit. Significance at 0.05 probability level References Armitage, C, & Christian, J, 2004, Planned behavior: The relationship between human thought and action, New York: Transaction Publishers. Read More