Professional Documents
Culture Documents
1. Introduction
Consumer behaviour theorists generally believe that consumer behaviour
theories can be applied globally but consumer preferences and tastes are
influenced by their cultural background (Schutte and Ciarlante, 1998). Therefore,
marketers and business practitioners have to recognize that consumers‟ attitudes
and beliefs, preferences, needs and tastes towards certain products or services
are greatly influenced by their culture and the society they belong to. For
instance, consumers in other parts of the globe may consider price as the most
important determinant in their decision to buy food items, whereas, in others, they
may consider quality as the most important factor that may affect their choices.
Other factors that may surface could also be the influence of significant others,
____________________________________
* Lecturer of University Technology MARA, Malaysia, oriah@sarawak.uitm.edu.my
** Professor of University Malaya, Malaysia, mohdnor@um.edu.my
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2. Literature Review
This section reviews past studies on various factors, such as price, quality, brand,
product information, demographic variables and interpersonal influence that
might influence consumers‟ purchase decision and how these factors in turn
affect their repurchase intention.
2.1 Introduction
Understanding consumer behaviour is paramount for both marketers and
business alike. Two factors critical to understanding consumer behaviour are:
firstly, the degree of differentiation that a consumer perceives in the product or
service; and secondly, the fundamental determinant of consumer behaviour is
their degree of involvement in the purchase (Blackwell, Miniard, and Engel, 2001;
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Kotler, 1998; Lamb, Hair, and McDaniel, 2000; Business World, 2001).
Conceptually, all consumer buying decisions generally fall along the continuum of
three broad categories: routine response behaviour or habitual decision making;
limited-decision making; and extensive decision-making (Lamb, Hair, and
McDaniel, 2001, Kotler, 2003). The common notion is, consumer tends to be
highly involved when they purchase expensive items, and less involved when
they purchase low involvement products that they purchase frequently and the
price is less expensive (Blackwell, Miniard, and Engel, 2001, Business World,
2001).
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quality variability in the market then they should be more willing to engage in
search activities for price and quality information (Avery, 1996).
Consumers purchase/repurchase intention or purchase decision for a product
and/or service is driven by various reasons, which can be triggered by rational or
emotional arousal (Schffmann and Kanuk, 2004). For example, consumers use
brands to communicate their self-image or status, and the brand images chosen
must be congruent to their own and match to groups they aspire to establish an
association with (Burnkrant and Cousineau, 1975; Bearden, Netemeyer, and
Teele, 1989; Encalas and Bettmann, 2003; O‟ Cass and Frost, 2002). Similarly,
consumers will seek for others who are significant to them for information or wish
to associate or bond with, that is, the group social norms with whom consumers
aspire to establish a psychological association or bonding, such as friends,
neighbours, and the like (Bunkrant and Consineau, 1975; Park and Lessig, 1977;
Bearden, Netemeyer, and Teele, 1989; Mourali, Laroche, and Pons, 2005; Kropp,
Lavack, and Holden, 2005; Kropp, Lavack and Silvera, 2005). Besides, other
factors, such as price, income, education, and other attributes also contribute to
purchase decision/repurchase intention (Andaleeb and Conway, 2006; Al-Hawari
and Ward, 2006; Jamal and Naser, 2002).
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Attributes Importance
Consumer‟s Purchase
Quality Behaviour
Price
Brand Name Repurchase Intention
Product Information [Low and High
Interpersonal Influence Involvement Products]
Normative Influence
Informational Influence
Demographic Variables
No. of Children
Household Income Figure 1: The Research Framework
Based on the above argument and discussions in the literature, the following
general hypotheses and specific hypotheses were developed:
General hypotheses:
Specific hypotheses:
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3. Research Methodology
This section briefly describes the research design, population and sample size,
data collection procedure as well as data analysis procedure.
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3.4 Instrument
Before the full scale research was carried out, pre-testing was performed to
ensure there were no design errors in the questionnaire. Therefore any mistakes
and changes could be corrected and improved. The pre-test was administered
using 30 consumers as respondents who characterized the intended consumers
for the main research. They consisted of part-time students who enrolled for the
Bachelor in Business Administration (Honours) (Marketing) (BBA) (M) and
Executive Master in Business (EMBA) programmes at one of the public
universities located at one of the cities of an East Malaysian state. These
respondents were selected at the researcher‟s convenience and they were
similar in makeup to the sample of the main research (Zikmund, 2000; Malhotra,
2004). Feedback from the pre-test study indicated that the respondents were
comfortable with the questions asked. However, based on the pre-test feedback,
a few changes were made to ensure the final respondents in the actual survey
understand the questions. At this pre-testing stage, the respondents were also
asked to rank order which of the products category given to them that they
considered as high involvement products and low involvement products of the six
categories chosen, namely: personal computer, fashion clothing, instant noodle,
instant coffee and detergent.
products category that they ranked as the most important in their decision making
process. Section B which included questions on attributes importance and
interpersonal influence consists of 39 items using a 7-point Likert Like Scale
anchored with “1” as strongly disagree and “7” as strongly agree. These items
included price (7 items), quality (7 items), brand (7 items), product information (6
items) and interpersonal influence (12 items). The items used in section B were
adapted from various authors related to the research such as Aliman‟s (2005)
product information scales, Lichtenstein, Ridgway and Netemeyer„s (1993) price -
quality scales, Sproles and Kendall‟s (1986) consumer decision making styles
scales, Bearden, Netemeyer and Teele‟s (1989) 12-items Consumer
Susceptibility to Interpersonal Influence scales (CSI), and Blair and Innis‟s (2002)
brand dependence scales. Section C captured the questions on the consumer‟s
repurchase intention consisting of eight items adapted from Levesque and
McDougall„s (1996) repurchase intention scales using a 7-point Likert Like Scale
anchored with “1” as strongly disagree and “7” as strongly agree. Please refer to
Appendix 1 for the detailed items used in the research.
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Essentially, the majority of the respondents, that is, 246 (49.2%) were single, 167
(33.4%) of them were married with children, 80 (16%) of them were married
without children, and seven (1.4%) of them were divorced/widowed or single-
parents. The majority of the respondents were Christians (248 or 49.6%), 168
(33.6%) of them were Muslims, 67 (13.4%) were Buddhist/Taoist, 11 (2.2%) of
them were Hindu and six (0.2%) of them were from other beliefs. Most of the
respondents had 3 to 4 children in their household (223 or 44.6%), 145 (29%)
had 5 to 6 children, 82 (16.4%) of them had between 1 to 2 children, and 50
(10%) of them had 7 or more children. On average most of the respondents were
religious people, that is, 411 (82.2%) of them stating that their strength of
religious orientation were between average and strong. While the other 63
(12.6%) of them and another 26 (5.2%) of them stated that their strength of
religious orientation were between very strong and very weak, respectively.
Please refer to Appendix 2 for the detailed breakdown of the respondents‟
characteristics.
1979). Buying personal computer (Rank 2, mean - 1.88) was also considered as
an important decision. This could be due to its expensive price which requires the
consumers to search for information and opinion from others. The next important
purchase decision is buying branded perfume (rank 3, mean - 2.43), but its usage
is invisible to the public as compared to fashion clothing. However, in general,
buying low involvement products such as instant noodle, instant coffee and
detergent were not considered as an important decision by consumers because
these products are bought frequently and do not require considerable effort for
information search in the consumer‟s decision making process.
In conclusion, the results of the findings were consistently in line with the notion
that consumers tend to be more involved when they decide to purchase
expensive items and the products that they purchase display social visibility in
comparison to purchasing inexpensive, frequently purchased items and if the
usage of the product is not publicly visible (Lamb, Hair, and McDaniel, 2001,
Kotler, 2003; Blackwell, Miniard, and Engel, 2001; Business World, 2001; Asseal,
1987; Clarke and Belk, 1979). Examples of such products include instant noodle,
instant coffee and detergent, which are considered as low involvement products
and perfume which is used by consumers but not publicly visible. In relation to
brand preference, a majority of the respondents mentioned Acer as the most
preferred brand for personal computer/laptop, followed by Dell and Compact.
While fashion clothing (designer label) most preferred was Levi‟s followed by
Nike, Adidas and Nicole. Calvin Klein was considered as the most preferred
brand for branded perfume, followed by Avon, Silky, and Body Shop. Next,
Breeze was the most preferred brand for detergent, followed by Daia and Fab.
For instant noodle, Maggie was the most preferred brand, followed by Indomee,
and Mee Sedap. While for instant coffee, Nescafe was the most preferred brand,
followed by Kapal Api and Indocafe.
Note: Most important given rank “1” and least important rank “6”
In terms of place, a majority of the respondents stated that they purchased their
personal computer at departmental stores, followed by specialty stores, malls,
small retail shops and other shops in that order. Most respondents went to
departmental stores and malls to purchase their fashion clothing and only a few
preferred to go to small retail shops. Similarly, most of the respondents preferred
to shop at departmental stores, supermarkets and malls to buy their branded
perfume, and only a few of them went to small retailers and other shops.
However, for low involvement products such as detergent, instant noodle and
instant coffee, most of the respondents stated that they preferred to go to
supermarkets to purchase them.
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For most high involvement products such as personal computer, fashion clothing,
and branded perfume, a majority of the respondents preferred to purchase them
during special occasion, for example, during sales or promotion periods
throughout the year. For low involvement products such as detergent, instant
noodle and instant coffee, the respondents preferred to buy them either weekly or
monthly. The majority of the respondents, who purchased high involvement
products such as personal computer/laptop, fashion clothing, and branded
perfume, stated that they preferred foreign brand manufactured in foreign
countries. In contrast, for low involvement products such as instant noodle,
instant coffee and detergent, a majority of the respondents mentioned that they
preferred to buy local brands manufactured domestically. The reason for buying
foreign brands for high involvement products like personal computer, fashion
clothing and branded perfume is mainly because they believed that foreign
brands were of high quality as compared to local brands. In addition these
products carry established brand names and are reasonably priced. In contrast,
for low involvement products like instant noodle, instant coffee and detergent,
most of the respondents stated that they preferred local brands because the price
was cheap as compared to foreign brands. On average most of the respondents
spent between RM1000 to RM3000 to purchase a personal computer/laptop. This
explains the popularity of Acer brand among the respondents because the market
price for most Acer brand is around RM2000 to RM3000. For fashion clothing and
branded perfume, the majority of the respondents stated that they spent between
RM100 to RM200 to buy them. In contrast, for low involvement products such as
instant noodle, instant coffee and detergent, most of the respondents spent on
average between RM10 to RM21 to purchase them. For high involvement
products such as personal computer/laptop and branded perfume, most of the
respondents stated that they purchased them only once in the past 12 months.
However, for fashion clothing, they purchased them between one to six times in
the past 12 months. In contrast, most of the respondents buy instant noodle,
instant coffee and detergent more than six times in the past 12 months.
The majority of the respondents stated that they bought both category of products
(high and low involvement products) mainly for their own use, and only a few of
them mentioned that they bought the products as „gift giving‟ and for other
purposes. Most of the respondents mentioned that they frequently saw
advertisements on personal computer/laptop, fashion clothing, and branded
perfume in magazines, brochures/catalogs, TV ads, and newspapers. While
advertisements for detergent, instant noodle, and instant coffee were frequently
advertised on TV, radio, newspapers, and a few in magazines. The respondents‟
decisions to purchase or not to purchase a personal computer/laptop were
influenced by ads found in brochures/catalogs, magazines and newspapers as
compared to other medium of advertisements. For fashion clothing and branded
perfume, most of the respondents stated that their decisions were influenced by
ads found in magazines and brochures/catalogs, and also influenced by TV ads,
such as Silky brand for perfume. For most low involvement products, such as
instant noodle, instant coffee, and detergent, their decisions were influenced by
TV ads as compared to other medium of advertisements. The opinion of
significant others (such as family members, friends, spouses, siblings, children,
salespersons and the like) that influenced on the decisions of the respondents to
purchase or not to purchase a personal computer/laptop were influenced by
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explained by the model. This R-squared is multiplied by 100 and will yield the
percentage of the variance.
Meanwhile for personal computer, as shown in Table 2, beta values revealed that
quality contributed – 0.235, brand name contributed – 0.239, product information
contributed – 0.238 and informational influence contributed – 0.239 in explaining
repurchase intention and the relationship was significant (quality p-value = 0.000,
brand name p-value = 0.000, product information p-value = 0.000 and
informational p-value = 0.000), indicating that quality, brand name, product
information and informational influence made a unique, and statistically
significant contribution to the prediction of repurchase intention. The other
variables such as price, normative influence, household income, and number of
children made less contribution and did not contribute significantly in explaining
repurchase intention. The R-squared shows that 64.1% of the variance is
explained by the model. On the other hand, as depicted in Table 2, for branded
perfume, beta values showed that brand name contributed 0.301, price
contributed 0.153, quality contributed 0.120, and product information contributed
0.119 in explaining repurchase intention. The result also revealed that there was
a significant relationship between the independent variables and dependent
variable (brand name p-value = 0.000, price p-value = 0.001, quality p-value =
0.004 and product information p-value = 0.027), indicating that these variables
made a unique, statistically significant contribution to the prediction of repurchase
intention. The other variables such as informational influence, household income
and number of children made less contribution and did not statistically have a
significant contribution in explaining repurchase intention. The R-squared shows
that 55.3% of the variance in the dependent variable is explained by the model.
Hence, for high involvement products, the hypotheses H1a, H1b, H1c, H1d, H1f
and H1g below were supported for the types of product category as specified in
the brackets.
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However, it was also indicated that the relationship between normative influence,
number of children in a household, informational influence, household income
and repurchase intention was not significant, indicating that the hypotheses
below were not supported for the types of product category being investigated in
the research as specified in the brackets.
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(instant coffee) and 49.9% (detergent) of the variance were explained by the
model. In contrast, for low involvement products, the following hypotheses were
supported particularly for instant coffee and detergent except for instant noodle
which showed hypotheses H1a and H1h were also supported. The other
hypotheses (H1a, H1d, H1e, H1f, H1g and H1h) were not supported (instant
coffee and detergent).
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In conclusion, since F-values are well above 1 and at least one of the
independent variables is significantly related to dependent variables, hence the
model can be considered as valid (Hair, Anderson, Tatham, and Black, 1995;
Hair, Black, Babin, Anderson and Tatham, 2006; Pallant, 2007). In addition, inter-
item consistency reliability test (Cronbach‟s alpha coefficient) was performed to
identify the consistency of the respondents‟ answers to all the research items.
The result reveals high reliability scores among all factors with Cronbach‟s alpha
coefficient well above the recommended threshold of 0.70 and 0.80 (Nunally,
1978; Malhotra, 2004) - Please refer to Appendix 4. Principal component factor
analysis was conducted and the overall measure of sampling adequacy for the
set variables included in the analysis for each product category met the Kaiser‟s
criterion (KMO) and all the sets of variables exceeded the minimum requirement
of 0.50 and significant Barlett‟s Test of Sphericity was revealed (see Appendix 5).
The findings of the research also suggested that consumers were consistently
brand conscious and preferred to buy established brands especially for
expensive products, for example, personal computer and branded perfume and
also if the product that they bought was highly visible and displayed status
connotation such as fashion clothing (Asseal, 1987; Sheth and Mittal, 2004).
Similarly, besides price, consumers also considered brand name as one of the
driving forces in their decision to purchase or repurchase a product even if the
products that they purchased were inexpensive items such as instant noodle,
instant coffee and detergent. Interestingly, when the consumers decided to
repurchase certain products, regardless of whether those products were
categorized as low or high involvement products, normative and informational
influence did not greatly influence their repurchase decision except for personal
computer in which informational influence strongly influenced the consumers
repurchase decision. This scenario could be due to the consumer‟s prior product
knowledge or past experiences with the products and these two factors were not
considered in the objective of this research.
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The findings of this research implied that, regardless of whether the products
that the consumers purchase are low involvement products or high involvement
products, prior concerns of the businesses and managers or marketers are: (1)
consumers‟ involvement in the purchase process; (2) the importance that they
place on certain product attributes; and (3) how significantly others influence their
decision making process prior to the purchase, after the purchase is completed
and the post-purchase behaviour. Hence, this research is beneficial to managers
and marketers to streamline their marketing plans and strategies, in order to
capture the mind and heart of the consumers at large. As such, it is imperative for
marketers and managers to understand consumer behaviour beyond the
marketing stimuli but at the same time should also consider the consumers‟
cultural diversity, customs and norms. Nonetheless, there is an indication that this
research supports the general conception that consumers pay less attention to
price if: (1) other alternatives such as brand names, quality and other more
influential attributes are available (Dodds and Monroe, 1989; Dodds, Monroe, and
Grewal, 1991); and (2) they consider the importance of seeking others‟ opinion in
their choice decision.
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Appendix
Appendix 1: Items used in the Research
1. If other important factors remain the same, price is an important criterion for me.
2. Price is the most important factor on my decision to purchase or not to purchase.
3. The money saved by finding low prices is usually not worth the time and effort. *
4. I look carefully to find the best value for the money when selecting for a product/
brand.
5. The time it takes to find low prices is usually not worth the effort. *
6. It is important that I buy at sales prices.
7. The lower priced products/brands are usually my choice.
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1. I will use the information provided by the shops when selecting for a product that I
want to purchase.
2. I am not willing to purchase without knowing the detailed information related to the
product that I buy.
3. The information regarding the products/brands that I buy usually helps me to make
decision on which products/brands to choose.
4. I think the availability of information provided by the shops is important to me when
purchasing a product/brand.
5. I often look at information about the products/brands that I buy before I purchase a
product/brand.
6. I will not purchase a product/brand if the shops fail to show me the information about
the product/brand.
1. To make sure I buy the right product or brand, I often observe what others are
buying and using.
2. If I have a little experience with a product or brand, I often ask my friends about the
product/brand.
3. I often consult other people to help me choose the best alternative available from a
product class.
4. I frequently gather information from friends or family about a product before I buy.
Note: Measured using a 7-point Likert Like scales were used anchored with 1 =
strongly disagree and 7 = strongly agree - adapted from Sproll and Kendall (1986),
Lichtenstein, Ridgway, and Netemeyer (1993), Bristow, Schneider, and Schuler
(2002), Aliman (2005), Bearden, Netemeyer, and Teele (1989), Kropp, Lavack, and
Silvera (2005)
Note: Measured using a 7-point Likert Like scales with 1 = strongly disagree,
and 7 = strongly agree - adapted from Levesque and McDougall (1996).
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10. Religion
Muslim 168 33.60
Hindu 11 2.20
Budhist / Taoist 67 13.40
Christian 248 49.60
Others 6 1.20
500 100.00
11. Number of Children in a
Household 82 16.40
1 to 2 children 223 44.60
3 to 4 children 145 29.00
5 to 6 children 50 10.00
7 children and above 500 100.00
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Personal Acer Department Special Foreign Quality RM1000 Own use Brochures Friends
Computer Dell al occasion made Brand to and few Catalogs Family
Compact stores sales name RM3000 for “gifts‟ Magazines members
Specialty promotion Price giving Newspaper Salesperson
stores
Malls
Fashion Levi Departmental Special Foreign Quality RM100 Own use Magazines Friends
Clothing Nike stores occasion made Brand to and few Brochures Spouse
Adidas Malls sales name RM200 for „gifts‟ Catalogs Family
Nicole promotion Price giving TV ads members
salesperson
Branded Calvin Departmental Special Foreign Quality RM100 Own use Magazines Friends
Perfume Klein stores occasion made Brand to and few Brochures Spouse
Silky Malls sales name RM200 for „gifts‟ Catalogs Family
Avon promotion Price giving TV ads members
Body shop salesperson
Detergent Breeze Supermarkets Weekly Local Price RM10 Own use TV ads Spouse
Daia monthly made to RM21 Family
Fab members
Friends
Instant Maggie Supermarkets Weekly Local Price RM10 Own use TV ads Spouse
Noodle Indomee monthly made to Family
Mee RM21 members
Sedap Friends
Instant Nescafe Supermarkets Weekly Local Price RM10 Own use TV ads Spouse
Coffee Kapal Api monthly made to RM21 Family
Indocafe members
Friends
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