CHAPTER 1

Introduction

Consumer behavior is a broad topic to discuss with. Integral understanding of it is

unattainable for it is closely related to human mind. Even so, predicting how a human opt in

purchasing situation can be estimated through past buying decisions. Everyone makes decision in

a day to day basis transaction in terms of buying but most of the people do not have an idea on

what pushes them to make that decision. Buying coffee is part of everyone’s lives and it is a usual

routine that anyone will purchase a certain brand of coffee. There are factors that trigger everyone

in buying decisions, it could be cultural, social, personal and psychological. Every factor consists

of attributes that can be used in marketing. Coffee sellers knew these factors and use it to gain

customers attention so subtle that consumers might not even recognize it. Consumer purchase a

specific brand because they think that availing it is a common practice but unknowingly, there are

factors behind every buying decisions (Lautiainen, 2015).

This research study will focus on how different factors such as social, personal and

psychological may or may not affect the consumer behavior in terms of decision making during

the coffee brand selection. The researchers have chosen specific coffee brands as a subject on the

paper. Coffee is a daily good that large quantity of people avails and the buying decision can be

made simultaneously without prior awareness. It is intriguing to study how an individual made

decision in selecting a brand of coffee and how social, personal and psychological consumer

behavior factors impact their buying decisions.

 Conceptual Framework

Variables influencing
decision process Decision-making Process Consumer decision

Need Recognition
SOCIAL

Information
search
CONSUMER
DECISION
PERSONAL
Evaluation of TOWARDS
alternatives COFFEE
BRAND

Purchase
PSYCHOLOGICAL

Post-purchase
evaluation

Figure 1. Factors that affecting consumer buying decision

Consumers are influenced by different factors prior to purchase. Cultural, social, personal

and psychological characteristics make up these factors, and more often than not, marketers have

no control over them but it is important to understand it (Baquillas, 2017). Due to the limitation of

the study the researchers will only examine the three factors namely; social, personal and

psychological it is because the involved respondents of the study are composed of a small group

which is not accepted to the characteristics of cultural factors. The conceptual framework of the

study includes the factors that may affect the consumer decision-making process in which

purchaser’s choice-making process includes five stages that the customer is going thru before the

actual purchase. At some point of those ranges, an individual recognizes the need, gathers
information, evaluates alternatives and makes the acquisition selection. After the actual purchase,

consumer evaluates the gained pleasure or satisfaction. Consumer decision in selecting coffee

brand is the product of the decision process that everyone needs to step on to measures the

satisfaction level of a certain coffee brand.

Statement of the Problem

This study aims to examine how social, personal and psychological factors influence

consumer buying decision in selecting coffee brand. Particularly, the study looks forward to

unleash the following objectives:

(1) What are the factors that affect the consumer buying decision in selection of coffee

brand in terms of?

 Social

 Personal

 Psychological

(2) Which factor has the most effect on the consumer decision-making process?

(3) Is there significant relationship between social, personal and psychological factors and

the decision-making process in coffee brand selection?

Hypothesis

H1: There is no significant relationship between social, personal and psychological factors

and the decision-making process in coffee brand selection.

SIGNIFICANCE OF THE STUDY

To students,

This study will help the Grade 12 ABM students to have a better understanding about how

consumer behavior factors influence their buying decisions.

To respondents,

This study is significant to the respondents for it will raise their awareness on how

consumer behavior factors impacts to their buying decisions. It will be beneficial for them because

they will be able to know which among those factors impacts their buying decisions the most.

To teachers,

This study is significant to teachers for they are known as individuals dealing with heavy

workloads, paper works to be specific. Due to that fact, coffee becomes their basic commodity.

They will be aware of what triggers their buying decisions particularly in selecting coffee brands

as an influence of consumer behavior factors.

To researchers,

This study will help the researchers grow and further develop their skills in exploring

something new as well as quenching their curiosity.

To future researchers,

This study will serve us their guide in conducting related study about the topic. These will

give them ideas and opportunity to continue what the previous researchers failed to do in their

study.
To marketers,

This helps marketers to investigate and understand the way in which consumers behave so

that they can position their products to specific group of people or targeted individuals.

To Society,

This study is important for the society to understand and predict buying behavior of

consumers in the marketplace. This is also beneficial to create and keep customers because

customers are created and maintained through consumer behavior factors. These factors are used

to gain customers attention so subtle that consumers might not even recognize it.

Scope and Limitation

The study aims to examine how social, personal and psychological factors influence

consumer buying decision in selecting coffee brand. The nature of the study are the FAITH-Fidelis

Grade 12 ABM students.

Consumer buying behavior is influenced by cultural, social, personal and psychological

factors. This study focuses on social, personal and psychological factors except the cultural. The

researchers will conduct the study in a small group of students and cultural differences are not so

significant. This limitation has been made because the focus is only on the actual buying process

and not on the after-purchase actions.

Definition of Terms

Brand is a name given to a product or service.

Consumer behavior is the study of individuals, groups, or organizations and all the activities

associated with the purchase, use and disposal of goods and services, including the consumer's

emotional, mental and behavioral responses that precede or follow these activities.

Decision-making is the cognitive process of reaching a decision.

Factors is a circumstance, fact, or influence that contributes to a result.

Personal is a belonging to or affecting a person rather than anyone else.

Psychological is related to the mental and emotional state of a person.

Social is relating to society or its organization.

 CHAPTER 2

Review of Related Literature

Factors affecting consumers’ buying decision

Purchaser conduct studies in individuals and corporations after they pick, purchase, use

and dispose merchandise, ideas, offerings or experiences. There's a big style of consumers from a

small baby asking mum to shop for a brand-new game to global business enterprise government

creating a big funding deal. Customers seek gadgets to fulfill their simple needs and dreams.

Customer behavior is tons more than reading what purchasers purchase. It attempts to recognize

how the choice-making system goes and how it influences customers’ shopping for conduct.

(Solomon 2004, pp. 6-8.). Marketers observe consumers buying patterns to remedy where they

purchase, what they purchase and why they purchase. But, why customers buy a selected product

is not clear to resolve due to the fact the solution is locked deep within the consumers’ thoughts.

(Kardes et al. 2011, p. 8; Kotler&Armstrong 2010, p. 160.). Normally customers may be

categorized as character and organizational purchasers. Consumers try to satisfy their own want

and desires via purchasing for themselves or fulfill the need of others with the aid of buying for

them. Those individual consumers can come from distinctive backgrounds, ages and lifestyles

tiers. (Kardes et al. 2011, p. 8.). A consumer buying behavior for conduct is influence by cultural,

social, personal and psychological factors. Customer decision is a part of human behavior and by

way of reading preceding buying behavior, marketers can estimate how consumers may behave in

the future when making purchasing decisions. (Kotler&Armstrong 2010, p. 160.) The following

chapters focus on the social, personal and psychological characteristics of consumer behavior.
Social Factor

Social factors affect consumer behavior significantly. Every individual has someone

around that may influence their buying decisions. The important social factors are: reference

groups, family, role and status (Perreau, 2014.). Every patron is a person, but nevertheless belong

to a set. The organization to which a client belongs is called a club group. This is an instantaneous

and easy classification. The second one group kind is a reference institution. The reference

organization impacts the self-photograph of consumers and consumers’ behavior. The reference

organization offers a few points of contrast to clients about their conduct, way of life or behavior.

Typically, there are many smaller reference groups, which are fashioned by way of own family,

close friends, neighbors, work group or different people that customers companion with. The

corporations to which a client does now not belong but can also influence. These aspiration groups

are groups where a consumer aspires to belong and desires to be part in the future

(Kotler&Armstrong 2010, p. 164; Khan 2006, p. 58.). Family can influence man or woman

purchasers’ buying behavior. A circle of relatives forms the surroundings for a person to gather

values, expand and form personality. These surroundings give the possibility to broaden attitudes

and reviews toward numerous subjects which include social members of the family, society and

politics. A family creates first perceptions approximately brands or products and client habits

(Kotler&Armstrong 2010, p. 169; Khan 2006, p. 68.). Individuals play many distinct roles in their

lives. Each position includes activities and attitudes that are anticipated from a person to carry out

in step with the people around him (Kotler&Armstrong 2010, p. 170.). Social status displays the

location that people have in social organizations based on such things as money and wealth,

training or occupation. Societies reputation is essential and those admiration of others. Social status
can be obtained by means of having a wealthy lifestyle. Product and brand choice regularly

displays the social position and standing (Wright 200, p. 360.).

Personal Factor

Consumer choices are encouraged by means of personal elements including a purchaser’s

age and existence cycle country, career, economic situation, life-style, and personality and self-

idea.

Purchasers’ change their lifestyles and buying of products relying on age and degree of

lifestyles. Age related elements are which includes flavor in meals, apparel, undertaking and

furnishings. Moreover, surroundings, values, way of life, pastimes and client conduct evolve

lifetime. Family lifestyles levels change purchasing behavior and brand selection. Historically a

circle of relative’s lifestyles cycle protected handiest young singles and married couples with kids.

In recent times entrepreneurs are that specialize in alternative, nontraditional ranges inclusive of

unmarried couples, childless couples, same sex couples, single mother and father and singles

marrying later in existence (Kotler&Armstrong 2010, p. 170). It can be assumed that customers’

preferences can trade at some point of lifetime and has effect on coffee brand selection in exclusive

ranges of lifestyles.

A purchaser’s occupation and buying power impact shopping choices and buying behavior.

The income degree impacts what purchasers can come up with the money for and the views toward

cash. People, who percentage similar occupations, tend to have similar choices in song, clothing

and leisure sports. They usually socialize with every other, and proportion the same type of values

and ideas. Income level can affect what consumer can come with the money for and perspective

about money (Solomon 2004, p. 12). Individuals from lower earnings businesses are probably
extra inquisitive about shopping for products which might be important for survival than spending

on luxurious brands or designed clothes.

Consumers’ life fashion tells how the individual lives and spends money. It's far mixed

from earlier stories, present day scenario and congenital characteristics. The product choices that

purchasers make are associated with their lifestyle. An individual life-styles are composed of

different life fashion dimensions (Khan 2006, p. 18.). These dimensions are:

1. Activities describe how consumers spends their time e.g. work, hobbies or vacations.

2. Interests are consumers’ preferences and priorities e.g. family, home or food.

3. Perceptions tell how consumers experience approximately distinctive problems, e.g.

Themselves, politics or products (Plummer 1974, p. 34.).

These life style dimensions show the lifestyle of an individual. Way of life will have an

impact on purchasers’ buying behavior and decisions (Kotler&Armstrong 2010, p. 170.).

Personality distinguishes one man or woman from every other by way of individual

characteristics. These personal traits can be self-confidence, adaptability, sociability and

dominance (Kotler&Armstrong 2010, p. 172). Personality determines how one selves and the

things that surrounds them as well as how different people see each one. Attitudes, values and

others that influence the personality. Persona alters while existence whilst a person grows up and

adjustments in their environment (Wright 2006, p. 296.). Self-concept is a multi-dimensional and

complex term. Kardes et al. (2011) describes the self-concept as follows, “Self-idea is frequently

described as the totality of a person’s mind and emotions concerning him/herself as an item.” In

some other phrases, it's far the image that humans keep approximately their selves fashioned by

using attitudes and ideals. Many manufacturers have developed a photo and personality that
correspond with clients’ values and tendencies. It permits customers to explicit themselves thru

brand selections.

Psychological Factor

A consumer’s choices are also influenced by four psychological factors, i.e. motivation,

perception, learning, and beliefs and attitudes.

A consumer is a man or woman who has distinctive form of needs. Those needs may be

basic like thirst or psychological that comes from the need of self-expression or belonging. A need

can be aroused to an enough degree of intensity when it alters a motive. A motive is essentially a

need that drives someone to seek pleasure. Abraham Maslow is a well-known psychologist who

has examined those human needs. He sought to explain why human beings are pushed by means

of person’s desires at specific instances (Kotler&Armstrong 2010, p. 173.). Maslow’s hierarchy of

needs from the lower level needs up to the highest need of an inidividual. The primary rule is to

satisfy first the fundamental needs first than intending up the ladder. While that need has been

fulfilled, it stops being a motivator and someone makes a specialty of the subsequent most

important want. Maslow’s needs are:

1. Physiological: basic need such as sleep, food or water.

2. Safety: need to feel secured and protected.

3. Belongingness: need to feel loved and be accepted by others.

4. Esteem/ Ego needs: to accomplish something and have status among others.

5. Self-actualization: to have enriching experiences and feel self-fulfillment. (Solomon

2004, p. 122.
Consumer buying behavior

A consumer engages in buying activities several instances in step within a day. The buying

itself is the only visible evidence of an intricate manner that a consumer is going thru for every

decision she or he makes. However, each buy decision is unique and requires distinct amount of

effort and time.

Decision Making-process

A consumer’s selection-making process includes 5 degrees that the customer goes through

before the actual buy. During these stages the client recognizes the need, gathers information,

evaluates options and makes the purchase selection. After the actual purchase comes by consumer

buying behavior wherein the customer evaluates the gained satisfaction (Kotler&Armstrong 2010,

p. 177.). Kotler and Armstrong (2010) said that the consumer can pass some tiers at some point of

buying process. But, while a purchaser faces a new and complex purchase scenario. The five stages

in decision making-process are as follows:

Figure 2. A buyer’s decision making-process (Riley 2012)

 A decision-making process starts with the recognition of need. In this stage consumer

usually sees a significant difference between real condition and covet condition. The want

recognition technique can occur naturally but regularly, entrepreneurs can set it in movement.

Entrepreneurs are looking to create demand in which clients are recommended to apply a product

no matter the logo they pick. Marketers will try to persuade clients to pick their brand in preference

to others (Solomon 2004, p. 297.). At the second stage of the decision-making process, the

purchaser engages with data search. Sometimes clients can pick out merchandise with none

statistics and other instances records want to be searched cautiously for figuring out all options

(Solomon 2004, p. 299.). The consumer can get information from multiple resources via talking

with friends or circle of relatives, reading magazines or the usage of the internet search or handling

the product. The amount of the searching will overall rely on the pressure, obtaining of the data

and delight got from the quest. These days customers get a big quantity of records from business

resources that are controlled through entrepreneurs. Nevertheless, the best resources tend to be

non-public which includes own family or friends. Clients can acquire information and satisfaction

in brand selection. This record enables clients to drop some brands whilst making the final

selection of the brand (Kotler&Armstrong 2010, p. 178.) . After getting the necessary data, the

customer will be capable in evaluating the distinctive alternatives. The evaluation of options will

range among customers and purchases (Wright 2006, p. 28.). In other circumstances, clients didn’t

give full attention or no appraisal and make their buying decision based totally on desire and

instinct. In instances where little or no assessment of alternatives is used may be originated by an

ordinary decision manner. However, the customers who are aware in solving process technique

can also carefully compare amongst several manufacturers. The options which might be actively

considered throughout the choice system are called consumers’ evoked set. This evoked set
consists of products or manufacturers which can be already inside the client’s memory plus crucial

ones in retail surroundings. Although a consumer ponders amongst many alternatives, the evoked

set typically consists of small quantity of alternatives. These alternatives share some related

functions with every different (Solomon 2004, p. 305.).

On the fourth stage, since the consumer has already assessed different alternatives

therefore, they are prepared to proceed to the actual purchase itself. Commonly, the client’s

purchase choice is to buy the most preferred brand. There are factors that can affect the client’s

buying decision which include the attitudes of others or ideals about the brand created by

entrepreneurs (Kotler&Armstrong 2010, p. 179.).

The decision-making process does not end after the actual purchase has been done. The

last stage of the buying process is post purchase behavior. When the consumer has already bought

a certain product, the consumer will re-evaluate the product and measures if it will satisfy the needs

or wants of a customer. There are instances that consumer might feel different emotions and

reaction towards the product if it meets the expectation or not (Khan 2006, p. 168). If the expected

satisfaction meets the consumer preferences it will leads to re-business or the repetition of purchase

in the future. Moreover, the satisfaction level of the consumer can be associated to the brand

loyalty. This happens when the desired output or brand satisfy exceptionally the consumer standard

(Kardes et al. 2011, p. 91.).

Brands in the Philippines

A brand is a product, service, or idea that is publicly distinguished from other

merchandise, offerings, or ideas in order that it is able to be easily communicated and commonly

advertised. A logo name is the name of the one of a kind product, provider, or concept. Branding
is the process of making and disseminating the brand name. Branding may be applied to the

entire corporate identity as well as to character product and service names (Rouse, 2016).
Reference

Journal and Books

Kardes, F. Cline, T. Cronley, M. 2011. Consumer behavior: Science and Practice. South-Western

Cengage Learning.

Khan, M. 2006. Consumer Behavior and Advertising Management. New Age International

Kotler, P. & Armstrong, G. 2009. Principles of Marketing. Pearson Education. Thirteenth

Edition. New Jersey.

Websites
Rouse, M. (2016, January). What is brand? - Definition from WhatIs.com. Retrieved from

http://whatis.techtarget.com/definition/brand