Chapter 1

Problem and its Background

Introduction
The economy of the nation depends in the income and supply of their consumers
and businesses. The process of producing enough supply for the people is one of the
basic factor on creating the right demand and price for a product. The buying demands
will always depend on the prices and supply of product and services. That is why people
create some buying preferences where they can have the standard basis on what to
buy and why to buy a product or services, and that is also a factor that affects the
buying process. A buying process is the series of steps that a consumer will take to
make a purchasing decision. A standard model of consumer purchase decision-making
includes recognition of needs and wants, information search, evaluation of choices,
purchase, and post-purchase evaluation. (Grimly, 2013).
In the business industry there are different factors that can affect the way of the
consumers thinking on what they will buy and why they won’t buy something. According
to Iresearch service, there are five common factors that can affect and influence the
consumer’s behavior. Namely the marketing campaigns, economic condition, personal
preferences, group influences and purchasing power. The marketing campaigns of the
business can attract different consumers through using different advertisement and
commercials that can catch different consumer’s eyes. The economic condition can also
be one of the factors because economic situations of a place will vary the confidence
and willingness of the consumer to buy. While personal preferences will lead the
consumer perceptual thinking within what they always want and like to buy.
Furthermore, the group or networks of a consumer including his or her family, peers,
community and other personal group will be a big influencer to the behavior of
consumers because it is in nature of the people to depend on those he or she can trust.
Lastly and more importantly, the purchasing power of a consumer is a big factor
because the capacity of a person to buy will vary to his or her financial capacity and
everyone know that money is important in this society.
The people are usually depending on different factors that is why it has
differences to each other. They often budget their money and also consider as their
decision making. Parents are the most common part of the buying process because
they are more likely elders that have the decision making in their households. That is
why parents hold the managerial works in planning what to buy for their family and their
household will let them hold the budget planning. The variables that the researcher will
focus on this study are the three buying preferences and how it will have significant
relationship to the buying process of parents.
Background of the Study

Everyone can have different basis on buying something or their buying decision,
and also there some factors that can affect their decisions. Those factors are the main
reason on conducting this study. These factors that can give either market or personal
benefits for the consumer. The decisions of a person to buy something will always have
reason or an influencer that needs to be known for its advantages and disadvantages.
Some influencers of buying decisions can be good to a consumer or not, there are times
that inappropriate or unnecessary information will give customers problem handling their
own buying decisions and behavior.
The respondents of this study are the parents of ABM 401 students. This section
are composed of 33 students that more likely pursuing accountancy and business
management courses in college. The parents of this strand will be the respondents
because their children are literate in business and how it works. The subjects in the
ABM will give the students the tools they will need on their journey to success in the
corporate world. Expect that they will be studying financial and management accounting
alongside the legal, business, and organizational contexts that they will be encountering
as enterprise. In taking this strand, they will be able to analyze assets, interpret
profitability, understand financial positions, and prepare audit accounts. These ideas
conclude the importance of these respondents to the study. The researchers conduct
this study in order to know how these factors can affect a buying decision of a person
because the researchers are also consumers that are willing to learn more.
Conceptual Framework:
The chart is essential to this study because it will show how the process is going
to work in the study. This will show how the study will find the factors affecting the
decision making of the parents of ABM 401.

Perceived Buying
Parents
Factors Decison
Statement of the Problem:
The problem addressed by this research is to know the factors that affect the
buying decision of the parents of ABM 401 students.
These are the research question include in this study:
 What are the factors affect the buying decision making?
 Do these factors have positive benefits and advantages for the consumer?
 How do these factors affect the buying decision?
Scope and Limitations:
This study is limited to the parents of ABM or Accountancy and Business
Management students of STI College Sta. Maria. They are the best respondents for this
study because their children are knowledgeable about business processes and that will
be easier for them to respond to our study. Also, the scope of this study will be the STI
College Sta. Maria because the location is relevant to the researchers and respondents.
Significance of the Study:
This study is significant because it will help these following people to know the
significant factors that affect the buying decision of the parents of ABM students. These
people are the parents or consumers, businessmen or business owners and future
researchers.
For the Parents/Consumer:
The parents will become the greatest beneficiaries of this study because their
buying process is the going to be tackle within the study. They will gain the knowledge
on how to handle their buying decisions through knowing the factors that can affect it.
They will gain different benefits in terms of knowing those factors, by being careful on
their buying decisions.
For the Businessmen or Business Owners:
The findings of this study will be useful to business owners because they can be
more careful on giving business offers that can be either an advantage or disadvantage
to the factors, and also so they can adjust these factors to make consumer benefits.
And also, they will now know the basis of buying process of the customers they have.
For the Future Researchers:
It will give them a study that might help them in a research that is related to our
study that will be useful for them. Also, if they will create research about business
process and buying process our study can be relevant.

Definition of Terms
These terminologies will be defined to know how their conceptual meaning will be
used to this research
Buying Decision
The buying decision process is the decision-making process used by consumers
regarding market transactions before, during, and after the purchase of a good or
service.
Factors
A factor is an element that influences something. It indicates something that can be
considered as something to cause one thing to another.