Before people buy, or choose, or decide, they engage in more or less elaborate, conscious information processing. Information processing according to Chaiken (1980) and Petty, Cacioppo and Schuman (1983) cited by Ap Dijksterhuis & Pamela K. Smith (2005) may lead to certain attitudes and these attitudes in turn may or may not affect decision. The amount of information that is processed is dependent on various moderators, such as involvement.
The sort of information that is finally influences your attitude can differ too and attitude can be based more on cognitive belief such as when one finds a product very useful, or more on affect, such as when a product has important symbolic meanings (Venkatraman & Mac-Innes, 1985) cited by Ap Dijksterhuis & Pamela K. Smith (2005). Recent ideas or insight on influence tactics and persuasion have emphasized that we often react rather “mindlessly” to stimuli that trigger certain automated responses.
As been said by Cialdini (2001), in a highly influential overview of such automatic influence tactics describe these phenomena as “click – zoom” reactions. Certain stimuli directly affect our decision and buying behavior. For instance, based on the research made by Cialdini (2001) consumer will mostly get trigger when they sees the word “today only” and thereby they will activated their mind set as it is a scarcity product and “what is scarce is good”.
These unconsciously made shopping choices are highly habitualized and based on attitudes that are automatically activated on the perception of a product (Fazio, Sanbonmatsu, Powell & Kardes, 1986) cited by Ap Dijksterhuis & Pamela K. Smith (2005). Attitudes do not always guide behavior and we truly buy things on impulse which portrays that attitudes are bypassed completely. Cialdini (2001) concluded that these impulse choices usually strongly affected by subtle cues in the environment such as when product is scarce. However sometimes cues are hardly related at all.
A nice example is the work of North and colleagues (North, Hargreaves & McKendrick, 1997) had showed that French music played in a store led to an increase in sales of French wine, whereas German music led customer to buy more German wine. To understand more on the behavior of unconsciously buying is by taking account the unconscious influence our environment exerts ( Bargh, 2002 ). This is through the study of the behavior of “perception behavior link”. This study showed the mere perception of the social environment leads people to engage in certain behavior (Djikster Huis & Bargh, 2001).
This implies that behaviors are imitative and can be contagious. Automatic goal pursuit is also one of the unconscious buying behaviors. Aarts & Djiksterhuis (2001), Moskowitz Li & Kirk (2004) stated that goal directed area is often unconsciously guided by the environment. Consumer browsing is also a major activity in the retail environment, and it may have a considerable effect on store sales and unintentional purchase. Bloch et al. (1989) citd by Lan Xia (2010) defined browsing as ongoing information search activity that is not associated with an immediate purchase task.
Jarboe and McDaniel (1987) also pointed out that browsing basically is a shopping behavior that is not directly motivated by a purchasing intent but it could automatically trigger the desire of the consumer. Browsing can be simply recreational window-shopping or a way of gathering information to be used later. Titus and Everett (1995) developed a consumer retail search process consisting of a functional strategy and a hedonic strategy; these strategies correspond to the two identified shopping motives.
A functional strategy is characterized by walking fast in a linear path, making few stops, spending little time looking at shelves, quickly handling the searched products, and leaving the store. A hedonic strategy is characterized by walking slowly, make many long stops and examining numerous products, and taking a complex path that covers the entire store. Drawing from research on consumer shopping, Titus and Everet (1995) propose that browsing can help consumers achieve functional needs such as locating a target product, obtaining a specific piece of information, or getting familiar with the layout of a store.
In functional browsing, browsing is a means to an end. Many times it serves the function of information acquisition, and browsing is dynamically intertwined with searching. When consumers window-shop, they get attracted to some products that they are interested in although not intending to buy, or flip through a catalog just to keep themselves informed of the latest fashion trends, browsing becomes a recreational activity. 1. 2 STATEMENT OF PROBLEM Consumer buying behavior can be influenced by few factors that must be understood by the marketers.
These factors are likely to be valuable to any marketers with the intention to understand their consumer purchasing behavior. By understanding the importance of these factors can help to identify the reason why consumer intentionally makes unconscious decision in buying or purchasing of groceries goods. Buying decisions of consumers are often on products or services. The consumer makes decision not only through their rational thought process, but also the forces that are beyond the rational thought process.
Much has to do with how the brand or the product engages with the consumer five senses and how their brain responds to those stimuli and also how some environment factors such as psychology, personal, social, cultural and environment can affect their buying or purchasing behavior. Therefore,the aim of this study is to identify the unconscious consumer through understanding the environment factors affecting consumer buying behavior on groceries goods. 1. 3 RESEARCH QUESTION Based on the purpose of this study, it is to seek and identify answer for the following research questions.
Q1: is there any relationship between environment factors and consumer buying behavior? Q2: how these environment factors can influence the consumer to make purchasing decision? Q3: how these factors can lead consumer to unconsciously make a transaction? 1. 4 RESEARCH OBJECTIVE The main objective for this study is to identify the environment factors influencing consumer buying behavior on groceries goods in Malacca. However the specific objectives for this study are: 1) To identify the relationship of environment factors and consumer buying behavior. 2) 3) 1. 5 HYPOTHESIS
H1: Psychological factors H1a: Perceptions have a positive relationship on consumer buying behavior H2b: Learning has a relationship on consumer buying behavior H3c: Belief has a relationship on consumer buying behavior H4d: Attitude has a relationship on consumer buying behavior H2: Personal factors H2a: Age has a positive influence on consumer buying behavior H2b: Lifestyle has a positive influence on consumer buying behavior H2c: Occupation has a positive influence on consumer buying behavior H2d: Personalities has a positive influence on consumer buying behavior
H3: Social factors H3a: Reference group has a positive influence on consumer buying behavior H3b: Family has a positive influence on consumer buying behavior H3c: Role model has a positive influence on consumer buying behavior H3d: Status has a positive influence on consumer buying behavior H4: Cultural factors H4a: Culture has a positive influence on consumer buying behavior H4b: Subculture has a positive influence on consumer buying behavior H4c: Social class has a positive influence on consumer buying behavior H5: environment factors
H5a: Economics have a positive relationship on consumer behavior H5b: Technology have a positive relationship on consumer behavior 1. 6 SIGNIFICANCE OF THIS STUDY Based on this study, this issue can be handy to few parties. The results of this research can help the related parties such as the marketers, producer, retailer as well as the marketing expert to identify the important key factors that influence consumer buying decision on groceries goods. The factors that can influence consumer on making transactions are such as psychological, personal, social, cultural and environment.
By understanding these environment factors that positively influence consumer may help the management or the related parties to make a decision as well as to increase revenues. The result of this research may serve as their reference to how consumer reacts or act when they are searching for goods. Therefore the management can plan for few ways to better enhance their marketing effort. 1. 7 LIMITATION OF THIS STUDY The limitation that our group had to face is a time constraint.
There are too many tasks need to be done and handed in a very short time frame. There are problems that we had in terms of financial problem while conducting this research. We need to gather as many information as we can in order to come out with a perfect research proposal and for us to gather this information, we need to cash out some money in sense of transportation, broadband and also for the materials used. Last but not least, we as one group are having a limitation in the sense of experience. Not all of us are familiar with doing research proposal.
However we managed to overcome it by having a positive support and guide by our lecturers and friends. THEORETICAL FRAMEWORK ENVIRONMENT FACTORS H1 PSYCHOLOGICAL – perception, learning, belief & attitude CONSUMER BUYING BEHAVIOR H2 PERSONAL – age, lifestyle & personality H3 SOCIAL – reference group, family, role model & status H4 CULTURAL – culture, subculture & social class H5 ENVIRONEMNTAL – economics and technological 2. 0 LITERATURE REVIEW Psychological Factor The first element in psychological factor is consumer perception.
Perception examines the social elements or cues that are often found in store environment and their effect on consumer thinking and intention to make certain transaction. Based on the said of Carls McPearson (2002) the perception of the consumer is the main reason the transaction is taken into action. The effects of store attributes on consumers store image formation, according to several researcher, Baker et al (1994) Darden and Babin (1994) Lindquist (1975) Manolis et al (1994) Marks (1976) Martineau (1958) Mazursky and Jacoby (1986).
These store attributes include physical cues that do not involve the “people factor” (merchandise quality, store atmosphere and so forth) as well as cues with social implications, such as customer service. Research has shown that color play an important element in human’s psychology and perception. According to Mityoko (2003) color does affect consumer’s mood and tend to manifest itself in consumer choices. With the use of colors, shape and context may trigger consumers mind and with the combination of these three elements may lead to consumer motivation to take action. Next is learning and attitude.
According to J. Gregon-Paxton. , & Deborah Roedder John, A. (2000). consumer learning; a model of internal knowledge, consumer learning is the understanding of how consumers endure the interest in the marketing literature. Consumer learning is the knowledge of the consumer and it can be from advertising, word – of – mouth communication and product experience itself. For example, in the successful of a product is believes to be the degree of how much the consumer acknowledge the product (Aaker & keller 1998, Boush & Loken 2000). However attitudes are widely used in marketing today.
Many marketers and consumer behaviorist has have given more attention to the consumer attitudes in sense of consumer buying behavior (Shu Ing-Wu, 2003). A person’s buying choices are further influenced by four major factors which is perception, learning, belief and attitudes (Armstrong & Kotler, 2000). This is the central elements to a buyer’s purchase behavior process. These are the tools people use to recognize their feelings and gather all information and analyze it later then they formulate action which is their attitudes (Wells & Prensky, 1996) cited by Shu Ing-Wu.
Meaning that when motivation, perception, attitude and belief were formed consumer tend to make decision. Attitudes serve as a person relatively consistent evaluations, feelings and tendencies towards an object or idea (Armstong & Kotler, 2000). Consumer belief also falls under psychological factor. Consumer belief is an individual values and attitudes that is somewhat often referred to as a belief system which represent the total universe image of a person’s beliefs about the physical world, social world and self (Rokeach, 1968) cited by Hawkins, Best and Coney, (2004).
Attitudes are formed by three main components which is cognitive component that is related to the consumer’s beliefs about a product, which can be generally evaluated. Next is affective component, related to the feelings or emotional reactions to an object and lastly behavior component that is the tendency to respond in a certain manner toward an object or activity. Personal Factor Kotler. (1994). Retrieved from http://superprofesseur. com/19. htmlPersonal.
Factors include such variables as age and lifecycle stage, lifestyle (activities, interests, opinions and demographics), personality and self concept. These may explain why our preferences often change as our situation changes. Hitesh Bhasin (2010) Possibly the most challenging concept in marketing deals with understanding why buyers do what they do(or don’t do). But such knowledge is critical for marketers since having a strong understanding of buying behavior will help shed light on what is important to customer and also suggest the important influences on customer decision making.
Therefore, Lisa Meneely,Amy Burns & Chris Strugnell (2008), had stated in order to meet consumer needs retailer must be aware of their buying behavior and the factors that impinge upon it and shape their decision’s range of factors are known to be influence consumer buying behavior (age, lifestyle and personality). These factors are known to influence consumer decision making and numerous model have been developed to explain behavior (Khan, Randall & Booth , 1988) cited by Lisa M. , Amy B. and Chris S. (2008).
For example khan (1988) model of consumer choice in food had document the influence of biological factors of what people purchase and consume and age is identified as one of the contributing aspect of consumer choice of purchase. One research by Cox et. Al. (2005) had examine the pleasure of store shopping and revealed that age has an impact on consumers enjoyment of shopping and that the elderly customer values personal service more highly than other age group. It is also said that elderly consumers values more grocery shopping compared to the younger age (Bawa * Gosh, 1999) cited by Lisa M. Amy B. and Chris S. (2008). Our life styles are reflected in our personalities and self-concepts, same is the case with any consumer. We need to know what a life-style is made of. It is a person’s mode of living as identified by his or her activities, interest and opinions. There is a method of measuring a consumer’s lifestyle. This method is called as the psychographics. Which is the analysis technique used to measure consumer lifestyles, peoples activities, interests and opinions. Then based upon the combinations of these dimensions, consumers are classified.
Unlike personality typologies, which are difficult to describe measure lifestyle analysis has proven valuable in segmenting and targeting consumers according to their lifestyle classification. Cited by Ulrich R. , Mina McDaniel, Tom Shellhammer & Kannapon L. (2004) from Sheth, (1991) It is commonly acknowledge that effective’s communication must recognize the relationship between a product and the consumption values or benefits that consumer seek. The choice of corresponding benefit to communicate and emphasize would be especially important according to consumer’s lifestyle (Vazquez et. l, 2002). Personality is the sum total of an individual’s enduring internal psychological traits that make him or her unique. Self-confidence, dominance, autonomy, sociability, defensiveness, adaptability, and emotional stability are selected personality traits (Hitesh Bhasin, 2010) retrieved from http://www. marketing91. com. Social Factor Reference groups are groups that consumers compare themselves to or associate with. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior.
Reference groups are considered a social influence in consumer purchasing. They are often groups that consumers will look to in order to make purchasing decisions. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. On the other hand, if a group disapproves of a product, those that associate with that group will probably not purchase the product (retrieved from Anon, www. boundless. com/marketing/consumer-marketing/social-influences-on-consumer-purchasing/reference-groups ).
Large bookstore chains such as Barnes and Noble or Borders have implemented strategies to turn themselves into social gathering places for locals (Lisanti, 1996). Experiential value, for instance, includes the dimensions of playfulness and aesthetic appeal (Mathwick et al. , 2001). Furthermore, shopping is a socially visible behavior, frequently done while accompanied by friends or family members; that is to say, consumers seek to satisfy social needs when shopping (Evans et al. , 1996; Jones, 1993).
For example, when consumers feel lonely, social contacts made casually in retail stores have been shown to fill a social void (Rubenstein and Shaver, 1980). It is also known that consumers shop not only for personal reasons, but also for social motives. These social shopping motives include the social experience outside home, communication with others, peer group attraction and status and authority. Rubenstein and Shaver (1980) also have quoted that with lack of social attraction may lead the consumer to have an uneasy feelings and no transaction will take place on that day.
Social cues in environment is believe can influence by socially constructed reality composed of both physical and social elements and that the perception of the store can be based on both physical and social cues represented schematically in consumers mind. A research suggested that social cues in the store environment can include demographic and lifestyle characteristic of the clientele, patterns of exhibited and expected social interactions among actors such as customers or hostesses (Akhter et al, 1987) Cultural Factor
According to Marieke de Mooij and Geert Hofstede (2011), most aspects of consumer behavior are culture-bound and it reflects the cultural relationship with self, personality and attitude which are the basis of consumer behavior models and branding and advertising strategies. The concept of self and personality as developed in the individualistic Western World include the person as an autonomous entity with a distinctive set of attributes, qualities or processes and the configuration of these internal attributes and processes causes behavior (De Mooij and Hosftede, 2011).
Individual behavior is situational; it varies from one situation to another and from one time to another as cited by De Mooij from Markus and Kitayama (1991). Tardiff et al. (2008) expressed that for collectivistic cultures self esteem is not linked to the individual but to the relationship with others. Environmental Factor Consumer buying behavior Purchase behavior is the consumer act of purchasing some specific product or service (Soonthonsmai, 2001).
In this study the purchase behaviour is related to the act of order delivery-food. “There is a lot of controversy on how a positive attitude towards a company or a brand can influence behaviour” (Pride and Ferrel, 1991). These two authors believe that consumer attitude towards a company and its products greatly influences the success or failure of the firm’s marketing strategy and Solomon (2004) says that there is no evidence that such a relationship can be established or not.
Whether an individual’s attitude will affect his/her behaviour or not depends on several factors such as: level of involvement or elaboration, knowledge and experience, accessibility of attitudes, situational factors and also personality variables. (Hoyer and MacInnis, 2001). Models in attitude measurement to predict and understand buyer 3. 0 RESARCH METHODOLOGY The process that are use to collect information and data for the purpose of making business decision or other decision related to the study. The methodology may include interviews, surveys or qualitative and quantitative research. 3. RESEARCH DESIGN This study is a qualitative research design. It is a detailed description of specific situation using interviews, observations and document review and to investigate the relationships between two or more variables. Qualitative research seeks out the ‘why’, not the ‘how’ of its topic through the analysis of unstructured information – things like interview transcripts, open ended survey responses, email, notes feedback, forms and visuals. Qualitative research is used to gain insight into people’s attitudes, behaviors, value systems, concerns, motivations, aspirations, culture or lifestyles.
It’s used to inform business decisions, policy formation, communication and research. Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many formal approaches that are used, but qualitative research also involves the analysis of any unstructured material, including customer feedback forms, reports or clips. 3. 2 MEASUREMENT AND INSTRUMENT For the knowledge acquisition phase, the literature in connection with the study to be carried out is reviewed through journals, books, conference papers, magazines, and websites.
From that information, a set of questionnaire form develop, which is one of the methods that we are using. The respondents are _________________________________ the questionnaire was designed to analyse _________________________________________(objective) 3. 3 POPULATION OF STUDY The populations of the respondents for this research consist of consumer who in Malacca making decision to spend their available resources (time, money, effort) on consumption – related items. In this study, 50 respondents will be chosen from population based on age and town district. . 4 SAMPLING The sample was selected using a stratified random sample of consumers by quotas based on age and town district in order to draw conclusions about populations from samples, we use inferential statistics which enables us to determine a population`s characteristics by directly observing only a portion (or sample) of the population. In this research a randomly 50 respondents be chosen at shopping mall because it is the one that we had been observed and conscious to learn a behavior of consumers toward purchasing groceries.
As the size of the sample is small as compared to the population, the time and cost involved on sample study are much less than the complete counts. A small sample can be studied in a limited time and total cost of sample study is very small. 3. 5 DATA COLLECTION PROCEDURE The method that we are using is personal interview. To conduct interviews, the researcher may communicate with individuals in person by going door-to-door intercepting them in shopping malls. Traditionally, researchers have recorded interview results using paper and pencil, but computers are increasingly supporting survey research.
In this section, we examine the general characteristics of face-to-face personal interviews conducted in shopping malls. Gathering information through face-to-face contact with individuals goes back many years. In other word we are asking the respondents on how ________________________________-(objective). The questionnaire was designed to analyse __________________________________(objective). Then, respondents were asked on ___________________________________(part of questionnaire). Finally, several questions on consumer’s attitudes toward groceries good were ncluded. The questionnaire also contained questions on socio-demographic characteristics (i. e sex, family size and composition, age, education, level, income) and lifestyles. 3. 6 DATA ANALYSIS PROCEDURES 1) Descriptive statistic According to Leary (2001), descriptive statistics is a powerful tool to describe and understand the data so that they can be easily comprehended by others. The descriptive statistics employed in this study were as followed: (1) To measures of central tendency; (2) To measures of variability; and (3) frequency distribution.
These statistics were used to extract and summarize quantitative information from the sample. Measures of central tendency helped to find a single index that could represent the whole set of measure. This study utilized the mean or average to describe the data in terms of average values. Mean was chosen because the variables investigated in this study such as the dependent variable (work motivation, organizational commitment and corporate culture) and the independent variable (job satisfaction) were all interval data.
This study also employed the most commonly used measure of variability and standard deviation to find out the dispersion or variability of the data set. Since it is also an interval statistic as the mean, it could be used to describe the degree of dispersion of all the interval variables (dependent and the independent variables). Frequency distribution was used to extract important features of the quantitative data of the study. The original data collected were group and presented in a summarized form by constructing appropriate tables and charts. ) Correlation statistic According to Ary, et al. (1996), correlation statistic is a statistical technique used to measure the strength of the association or co-variation that exists between two quantitative variables. The strength of the relationship between two variables is measured by the coefficient of correlation, r, whose values may range from -1 to +1. If the direction of the relationship between two variables is positive, it means that high scores of one variable are associated with high scores of another variable nd vice versa. When there is a relationship, correlation coefficient can also determine the strength of the relationship whether the variables have a strong relationship or a weak relationship. The closeness of the correlation coefficient to one implies a strong relationship between the two variables. When the correlation coefficient is zero, there is no correlation between the two variables. In this study, Elifson, Runyon, and Haber (1998) rule of the thumb was used to interpret the strength of the relationship (Table 1).
Table 1: Criteria for Interpreting Strength of Relationship between Two Variables r value| Strength of Relationship| 0. 01 – 0. 30| Weak; Almost negligible relationship| 0. 31 – 0. 70| Moderate; substantial relationship| 0. 71 – 0. 99| Strong; marked relationship| 1. 00| Perfect relationship| 0| No relationship| Source: Elifson, Runyon & Haber, 1998 This study used Pearson Product Moment Coefficient of correlation (Pearson r) developed by Karl Pearson as the correlation index.
This index was chosen because this index can only be used when the scale of measurement for the variables is interval or ratio (Runyon, Haber, Pittenger, and Coleman 2000). Furthermore, Pearson Correlation Coefficient is also an appropriate measure of relationship between two variables when the quantitative variables are normally distributed. It can also provide a meaningful index for indicating relationship, with the sign of the coefficient indicating the direction of the relationship, and the differences between the coefficient and zero indicating the degree of the relationship