Factors Affecting Buyer Behavior of Students When Purchasing Books - Coursework Example

Factors affecting buyer behavior of students when purchasing books Name: Tutor: Course: Date: Executive summary Consumers make decisions to buy certain items or products based on a range of factors that influence their behavior. These factors include; personal, psychological and cultural factors. While social factors consist of reference groups, family and roles and status, cultural factors comprise the social class, sub-culture and culture. On the other hand, personal factors include age, economic circumstance, occupation, lifestyle and personality and the lifecycle stages. Similarly, psychological factors include perception, attitudes, motivation and learning. In the current purchase environment, students make a big segment of the market involving stationery such as books. Moreover, this segment is easier to get feedback from, to reach and the fact that they are making crucial life decisions. In the new purchase environment, marketers recognize the influence of parents and find it easier to develop targeting strategies. This study helps marketers to target this group of consumers after understanding the factors that drive them to make certain purchase decisions. The study analyzes the factors that induce the University of Canberra students to make certain purchase decisions especially regarding the purchase of books. The study found that social, personal and psychological factors influence purchase behavior of books among university students. This study starts with a brief background about consumer behavior before identifies the problem to be studied in the research study. The study then adopts a qualitative research design using surveys and administers questionnaires to 50 respondents at the University of Canberra based on convenience sampling. Using SPSS 20.0, the study results are analyzed using cross-tabs which are basically descriptive statistics. The data is presented in tables, graphs and pie-charts. The study also list limitations and makes recommendations based on the objectives identified. Table of contents 1.0 Introduction 5 1.1 Problem definition 5 1.2 Methodology 6 1.3 Data analysis and results 8 1.3.1 Age of respondents 8 Figure 1: Age of respondents 8 1.3.2 Gender of respondents 8 Figure 2: Gender of respondents 8 1.3.3 Nationality of respondents 9 Figure 3: Nationality of respondents 9 1.3.4 Occupation of respondents 9 Figure 4: Occupation of respondents 9 1.3.5 Respondents have e-book readers 10 Figure 5: Respondents have e-book readers 10 1.3.6 Factors that influence purchase behavior of books 10 1.3.6.1 Social factors 10 1.3.6.2 Personal factors 11 1.3.6.3 Psychological factors 11 1.3.7 Analysis of results 12 1.4 Limitations and caveats 13 1.5 Conclusion and Recommendations 14 References 15 Appendices 17 List of figures 1.0 Introduction 5 1.1 Problem definition 5 1.2 Methodology 6 1.3 Data analysis and results 8 1.3.1 Age of respondents 8 Figure 1: Age of respondents 8 1.3.2 Gender of respondents 8 Figure 2: Gender of respondents 8 1.3.3 Nationality of respondents 9 Figure 3: Nationality of respondents 9 1.3.4 Occupation of respondents 9 Figure 4: Occupation of respondents 9 1.3.5 Respondents have e-book readers 10 Figure 5: Respondents have e-book readers 10 1.3.6 Factors that influence purchase behavior of books 10 1.3.6.1 Social factors 10 1.3.6.2 Personal factors 11 1.3.6.3 Psychological factors 11 1.3.7 Analysis of results 12 1.4 Limitations and caveats 13 1.5 Conclusion and Recommendations 14 References 15 Appendices 17 1.0 Introduction The success of a business venture depends on the understanding of consumer behavior of its buyers. The emphasis is on the relationship between marketing strategies and consumer behavior where the company’s marketing strategy is intended to fit the market demand. While consumers can be buyers, payers and users, consumer behavior research is difficult to predict (Furaiji et al., 2012). However, it extends beyond the facets of consumer behavior to consumer decision-making processes. During pre-purchase evaluations, price rather than quality primarily determines the purchase preference (Kumar et al., 2014). People purchase products owing to their perceived value and not their main function (Stavkova et al., 2008). In the process of decision-making, buyer behavior is highly influenced by psychological, personal, social and cultural factors (Kumar et al., 2014). The physical experience and satisfaction of purchase is the core ‘behavioral primary effect’ where consumers make repeat purchase of a certain brand in similar purchase environment (Woodside, 2012). Marketers of products look for key individuals who make buying decisions by understanding the types of decisions and the steps taken to make those decisions. The various in consumers’ decision making process is due to the nature of products and type of purchase decisions (Tinne, 2011; Hasslinger et al., 2007). While peers and friends may influence the purchase of household products such as television and soap, the family influences decisions relating to high-involvement products such as cars. Nowadays, consumer purchase decisions have become more complicated due to the broadened sphere for consumer choices and constant exposure to direct mailing, news sources and advertising campaigns (Muniady et al., 2014). Most of the literature indentifies personal factors such as self-concept, occupation, lifestyle and age as significant elements in understanding consumer behavior (Kotler & Armstrong, 2007). On the other hand, Zhou and Wong (2002) observe that important segments of shoppers in the consumer segments are university students. The student market is easier to get feedback from, to reach and the fact that they are making crucial life decisions. This study sought to analyze consumer purchase behavior of University of Canberra students towards purchase of books. 1.1 Problem definition In Australia, brand choice and quality are the most sought after product characteristic than the price when making purchase decisions. Consumer involvement in the purchase of stationery products could be driven by situational, product and personal factors. Much is known about the purchase decisions in established stationery markets where consumers maintain limited brand repertoires (Woodside, 2009). However, students in the new purchase environment without the influence of parents present a challenge to marketing researchers. Marketers will find it easier to develop targeting strategies when this group of consumers are understand in terms of what drives them to make certain purchase decisions (Pride & Ferrell, 2007). From a total of 18 million consumers in Australia, about 1 million of them purchase stationery such as books, pens, files and folders (Euromonitor International, 2015). Although consumer purchase behavior involves individuals making the buying decisions, the factors behind these decisions is of greater significance. Moreover, there are limited studies about student purchase behavior in the Australian context even after the emergence of new technologies such as online shopping. To understand the student purchase decisions, this study sought to; a) To examine the factors inducing the consumer buying behavior of books of University of Canberra students b) To analyze the consumer buying behavior of University of Canberra students c) To recommend suitable measures for book stores so as to design the right marketing mix for its consumers in the Canberra region This study will be significant to marketers of stationery such as books in understanding the factors that drive consumer behavior of university students. Besides, the study will inform owners of retail stores and bookshops to understand the market dynamics and changes in the marketing mix to suit this consumer segment. 1.2 Methodology This was a descriptive research study that involved description of population characteristics being studied. However, it does not respond to questions such as when, why and how the characteristics occurred but aims at finding out ‘what is’ using descriptive data. Moreover, it employed survey method where participants responded to questions administered through questionnaires or interviews. Jackson (2009) observes that a survey study is reliable and valid when questions are properly constructed, easy and clear to comprehend. Using closed-ended questions, the study became easier to be statistically analyzed. However, it limited the responses that respondents could give (Hale, 2011). In that case, the study used Likert-type scales because of ease during statistical analysis. While descriptive research describes the data collected or set of observations, it cannot draw conclusions on the data to the extent of establishing relationships. The questionnaire used in this study had 39 questions of which the first 34 questions were prepared into a Likert-scale with suitable measurements. The measurements used ranged from Strongly Disagree (SD) to Strongly Agree (SA) and the respondent was prevailed upon to tick one box based on the extent that they agreed or disagreed with the statement. Questions 35-39 were meant to provide more information about the respondent such as age, occupation, nationality, gender, and e-book readership. Most of the questions appearing in the Likert-scale concentrated on the personality, psychological, lifestyle, and the economic situation of the respondents with respect to the purchase behavior of students while buying books. The first 24 questions were specific to attitudes and attributes of buyers when buying books while the next 10 questions examined the overall purchase behavior of respondents to other products of interest to the customer segment. No major changes were made to the questionnaire except that the aspect of ‘nationality’ was added to list of questions to help understand the cultural difference that may result when purchase behavior is looked more broadly. The sample population was 500 students, and with the 10% rule of thumb, the study sample obtained was 50. Therefore, the study administered 50 questionnaires to University of Canberra students. To sample the students, convenience sampling was used. This eliminated the element of having to use emails or phone contacts to book respondents who will respond to the questionnaires. The questionnaires were administered face-to-face through the aid of two research assistance. The benefit of doing so was to have a personalized interaction with respondents and create an environment of researcher-respondent to increase trust and cooperation. The study questionnaire embarked on the questions related to the research objectives by analyzing consumer behavior of students in purchase of electronics and retail products and the factors that induce their decisions to buy books. The study used cross-tabulations and descriptive data presentation (tables, pie charts and graphs) analyzed using SPSS 20.0. Further descriptions and explanations of crosstabs, graphs, tables and pie charts were done. 1.3 Data analysis and results 1.3.1 Age of respondents Figure 1: Age of respondents As shown in the figure 1 above, most of the respondents 15(30%) were aged 24-29 years. This was closely followed by those aged 30-35 years 14(28%). 1.3.2 Gender of respondents Figure 2: Gender of respondents From the figure above, most of the respondents 32(64%) were female while the rest 18(36%) were male. 1.3.3 Nationality of respondents Figure 3: Nationality of respondents As shown in the figure above, the most dominant nationality were the Chinese 15(30%) followed by Australians 12(24%). The minority nationality were Laos, Mexican and Filipino at 2% each. 1.3.4 Occupation of respondents Figure 4: Occupation of respondents Regarding occupation, majority 23(46%) of respondents were students followed by those working on the retail sector 9(18%). The minority were those working 2(4%) on trade and industrial sector. 1.3.5 Respondents have e-book readers Figure 5: Respondents have e-book readers Concerning e-book readership, 34(68%) of the respondents said that they had an e-book reader of some type such as Samsung pad, Nook, Kobo or Kindle. 1.3.6 Factors that influence purchase behavior of books 1.3.6.1 Social factors Social factors include reference groups, family, and roles and status. From the table below, a considerable number of respondents 14(28%) of those who buy best seller books agreed 19(38%) that they get suggestions from friends on the types of books to buy. On the same note, 14/50 of the respondents who get suggestions from friends on what books to buy also strongly agreed that they buy best seller books as shown in the table (Appendix I). Similarly, of those of buy best seller books 14(28%), 17(34%) agreed that they have bought and read a new book. As shown in table (Appendix II), a considerable number 12(24%) of those who were not sure that had e bought and read a new book strongly agreed that they had bought a best seller book. As shown in the table below, 14/50 of the respondents who were not sure that they borrow books from friends or family were also not sure 20/50 that they buy books based on cover. Again, 13/50 of the respondents who strongly disagreed that they borrow books from friends or family agreed that they have once bought books 15/50 based on cover. This prediction was valid for p=0.05 as shown in the chi-square tests shown in the table (Appendix III). Those who have certain roles or status in the purchase of items can be experts in shopping. As shown in the table (Appendix IV), 21/50 of those who were not sure that they check out on different products were also not sure 20/50 that they were expert in shopping for books. On the other hand, around 50% of the respondents who were not sure that they were experts in shopping agreed that (14/50) that they check out on different products. As shown in the table (Appendix V), a sizeable number of respondents 19/50 of those who were not sure that they have ever had suggestions from favorite writers had 42% of them not sure that they have bought books online from overseas. Similarly, 18/50 of those who disagreed that they get book suggestions from favorite writers had 29% of them not sure of whether they had bought books online from overseas or not. The Pearson chi-square shows that the data was valid for p=0.01. 1.3.6.2 Personal factors These include age, occupation, lifestyle and personality. The results from the table (Appendix VI) show that 24/50 of those who were not sure that they had bought books online from overseas had a considerable number of them 50%(12/23) being students. As indicated in the table (Appendix VII), majority of the respondents were students who were also not sure of whether they had book books online or not. However, the data was not valid for p=0.01; p=0.05 and p=0.1. Regarding age, 15/50 of the respondents aged 24-29 years had 63% of strongly disagreed that they have bought e-book reader (See Appendix VII). Similarly, 14/50 of the age group (30-35 years) had 50% of the respondents who disagreed that they buy e-book readers. As well, 17/50 of the respondents who were not sure having bought books from the local books stores had 66.7% of them aged 24-29 years. From the table (Appendix VIII), the data was valid for p=0.01. Another sizeable group of respondents 13/50 who agreed that they have bought books from the local bookstores had 50% of them aged 18-23 years. 1.3.6.3 Psychological factors These include motivation, learning, perception and attitudes. From the table (Appendix IX) regarding perception, 14/50 of the respondents who strongly agreed that they buy best seller books had 42% of them disagreeing that they tend to read much. Another 21 percent of the respondents were not sure that they tend to read much despite strongly agreeing that they buy best seller books. On attitude, 26/50 of the respondents who disagreed that they were the first person to try new things had 11/16 of them agreeing that buying uncommented books is a waste of time (See Appendix X). Also, 10/50 of the respondents who were not sure of being the first person to try new things had 7/14(50%) of them strongly disagreeing that buying uncommented books is a waste of time. On the other hand, 16/50 of the respondents who agreed that buying uncommented books are a waste of time had 5/7 of them strongly agreeing that new products are gimmicks. On the converse, 33.3% of them strongly disagreed that the new products were gimmicks. Regarding motivation, 17/50 of the respondents who agreed that they have interest in buying new technology items had 16.7% of them also agreeing that they buy books online from overseas. From the chi-square table, it shows that the results were valid for p=0.05 as shown in the table (Appendix XI) below. 1.3.7 Analysis of results The study results showed that the factors that influence purchase behavior are social factors, personal factors and psychological factors. This was consistent with the findings of Muniady et al (2014) that reference groups, family, and roles and status as well as age and lifestyle influence buyer behavior. The study showed that most of the students who buy best seller books also obtain information or suggestions from friends on the types of books to buy. This also agrees with the authors that students get suggestions from friends on what books to buy so that they buy best seller books. Most of the students who buy best seller books had also bought and read a new book. This is in agreement with Raju and Xardel (2013) buy products that they are acquainted with and for curiosity purposes. The study also showed that students who were not sure that they borrow books from friends or family were also not sure that they buy books based on cover. On the contrary, those who strongly disagreed that they borrow books from friends or family agreed that they have once bought books based on cover. Friends and family and their roles are important social groups that influence purchase behavior as observed by Kotler and Armstrong (2006). Their observations are in agreement with the study that certain roles or status in the purchase of items can be experts in shopping. Similarly, students who were not sure that they were experts in shopping agreed that that they check out on different products. Writers and commentaries are an important reference group that influences buying behavior. In the study, most of the respondents who were not sure that they have ever had suggestions from favorite writers had most of them not sure that they have bought books online from overseas. Some of the personal factors include age, occupation, lifestyle and personality. The results from the study showed that of those who were not sure that they had bought books online from overseas had a considerable number of them being students. This is consistent with the findings of Muniady et al (2014) that the behavior of students as a consumer segment is yet to be understood. The study showed that most of the respondents were students aged between 24 and 35 years. This segment is not sure of having bought books from the local books stores. Yet, they agreed that buying online from overseas is better that sourcing from a local store. Psychological factors include motivation, learning, perception and attitudes. The study strongly agreed that respondents who buy best seller books had most of them disagreeing that they tend to read much. Conversely, those who tend to read much strongly agreed that they buy best seller books. The study showed that the first person to try new things could not agree into buying uncommented books is a waste of time. This disagrees with the findings of Tinne (2011) that promotional and pricing strategies of marketers work under impulse buying among buyers work well under perception and attitude. This shows that students trying new books may buy uncommented books and is not a waste of time. The motivation to buy new technology items such as e-books can tempt student buyers to buy books online from overseas. 1.4 Limitations and caveats To start with, this study was limited by the study sample. The small sample size could not allow the findings to be generalized to a larger population of subjects. Being a qualitative study, it lacked sufficient strength to have higher confidence levels. Besides, descriptive statistics was mainly used which means that other methods such as correlations were not put into use despite their applicability in establishing relationships. However, the data used convenience sampling which made it possible to have a 100 percent return rate. The study also used cross-tabulation in analyzing data which helped to understand the ratio of one variable in another variable. 1.5 Conclusion and Recommendations The aim of the study was to analyze the factors that influence buyer behavior of books. Using SPSS version 20.0, the study found that social, personal and psychological factors influence purchase behavior of books among university students. A considerable number of respondents who buy best seller books said that they get suggestions from friends on the types of books to buy. Respondents who were not sure that they borrow books from friends or family were also not sure that they buy books based on cover. A considerable number of respondents with their occupation as students buy books online from overseas. Respondents who were not sure having bought books from the local books stores were mostly aged 24-29 years. Moreover, respondents who agreed that buying uncommented books are a waste of time strongly agreed that new products are gimmicks. Most of the respondents who agreed that they have interest in buying new technology items also agreed that they buy books online from overseas. The study made the following recommendations; Mobile phone companies should develop marketing apps to reach the young customer segment that shop and buy products online. Book buyers should check for reviews as it is necessary for first time buyers to make purchase decisions Marketers should use social media and web technology tools to reach the student population for e-books Buyers of stationery such as books should consider going online to obtain broad range of books Book stores should also have online stores to deliver books order by international students and book buyers. References Euromonitor International (2015). Australia country profile. http://www.euromonitor.com/australia Furaiji, F., Latuszynska, M. & Wawrzyniak, A. (2012). An empirical study of the factors influencing consumer behavior in the electric appliances market. Contemporary Economics, 6(3): 76-86. Hale, J. (2011). The three basic types of descriptive research methods. World of Psychology. http://psychcentral.com/blog/archives/2011/09/27/the-3-basic-types-of-descriptive-research-methods/ Hasslinger, A., Hodzic, S. & Obazo, C. (2007). 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International Journal of Current Research Academic Review, 2(9): 52-61. Stavkova, J., Stejskal, L. & Toufarova, Z. (2008). Factors influencing consumer behavior. Agricultural Economics, 54(6): 276-284. Tinne, W.S. (2011). Factors affecting impulse buying behavior of consumers at superstores in Bangladesh. ASA University Review, 5(1): 210-209. Woodside, A.G. (2012). Market-driven thinking. Routledge. Zhou, L. & Wong, A. (2003). Consumer Impulse Buying and In-Store Stimuli in Chinese Supermarkets, Journal of International Consumer Marketing, 16(2):37-53. Appendices Appendix I: Table 1-Suggestions from friends Appendix II: Table 2-Purchase of quality books Appendix III: Table 3-Borrow books from family and friends Appendix IV: Table 4-Expert in shopping Appendix V: Table 5-Online purchase of books Appendix VI: Table 6-Occupation factor Appendix VII: Table 7(a): Age factor when buying e-books Appendix VIII: Table 7(b): Age factor when buying from local book stores Appendix IX: Table 8-Perception of purchase Appendix X: Table 9-Attitude towards purchase Appendix XI: Table 11-Motivation to buy Read More