ABSTRACT
This study examined the determinants of consumer purchase decision making for selected pharmaceutical products in Umuahia, Abia State. However, the specific objectives are; to: examine the extent to which social factors affect consumer purchase decision, examine the extent to which personal factors affect consumer purchase decision and determine the extent to which psychological factors affect consumer purchase decision. To achieve the objectives of the study survey research design was adopted. The study adopted primary data through the use of structured questionnaire. The population of the study is made up of 100 staff and sample is 80 after adopting Taro Yamane formula. The test the hypotheses, multiple regression analysis was used. The findings revealed that Social factors has a significant effect on consumer purchase decision. The findings revealed that Personal factors has a significant effect on consumer purchase decision. The study recommends that Pharmaceutical firms should consider the social factors of consumers such as status, family and reference group when marketing their products since social factors affect consumer purchase decision. The study further recommends that customer relationship marketing contributes greatly to the organizational profitability. Hence, small scale enterprise should designed a feasible customer relationship strategy that can identify the most profitable customers to enabled tailoring services to their needs.
TABLE
OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of
Content
CHAPTER ONE: INTRODUCTION
1.1
Background to the Study 1
1.2
Statement of the problem 3
1.3
Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 5
1.6 Significance of the
Study 5
1.7 Scope of the Study 6
1.8 Limitation
of the Study 6
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual
Framework 8
2.1.1 Concept of
Consumer Purchase Decision 8
2.2 The Concept
of Purchase Decision 10
2.1.2 Factors
affecting consumers’ purchasing decision 11
2.1.2.1
Social factors 11
2.1.2.2 Personal factors 12
2.1.2.3
Psychological factors 14
2.1.3
Decision-making process 17
2.1.4
Different types of decision-making 20
2.1.5
Brands 22
2.2
Theoretical Framework 24
2.2.1
Theory of Planned Behavior 24
2.2.2
Theory of consumer buying behaviour (A-B-C-D model) 24
2.3
Empirical Review 25
CHAPTER THREE:
METHODOLOGY
3.1
Research Design 27
3.2
Area of the study 27
3.3
Data Collection 27
3.4
Population of the study 28
3.5
Sample Size determination 28
3.6
Sampling Technique 29
3.7
Description of the Instruments 29
3.8
Validity of the Instrument 29
3.9
Reliability of the Instrument 29
3.10
Data Analysis Techniques 30
3.9
Model Specification 30
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF RESULTS
4.1
Data presentation 31
4.2.
Data Analysis 36
4.3 Test of hypothesis 38
4.3 Discussion of Findings 39
CHAPTER FIVE: SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary of Findings 41
5.2
Conclusion 41
5.3
Recommendations 42
REFERENCES
APPENDIX
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In this era of
competition every organization wants to increase or at least maintain their
products sale in the market. Every organization wants to know how the purchase
decision of Customers can be evaluated. Purchase decision can be defined as
individual’s decision to buy a specific brand; or individuals who want to buy a
specific brand which they have chosen for themselves after certain evaluation.
There are variables by which one can measure purchase decisions. For instance
considering the brand that influence the purchasing and the future purchases
(Laroche et. al, 1996; Laroche and Sadokierski, 1994; MacKenzie et. al., 1986).
Purchase decision for a specific brand requires assessment of all brands
available in market (Teng, Laroche and Huihuang, 2007).
It is shown that
approaches toward a specific brand have great effect on brand purchase decision
(Brown and Stayman, 1992; Homer, 1990; MacKenzie, 1986), and brand attitude has
positive relation with purchase decision. It is also found that a consumer’s
decision is settled by attitude toward the same and other brands which are
present in his consideration set (Laroche and Sadokierski, 1994; Laroche et.
al. 1996).
Purchase decision
is composed of consumer’s feelings, thoughts, experience and external factors
that he considered before making any purchase. Purchase decision of the
consumers depicts and expresses their behavior and the way they making
decisions about their buying process (Fishbein & Ajzen, 1975).
Purchase decisions
describe and determine the consumer response to purchase the offering. The
higher the decision leads to elevated purchase of that offering. Consumers
purchase decision can be determine through their responses, feedback and their
involvement. Highly involved consumers shows high rate of purchase (Dodds,
Monroe and Grewal, 1991; Schiffman and Kanuk, 2000).
Consumer behavior
studies individuals and groups when they select, purchase, use and dispose
products, ideas, services or experiences. There is a huge variety of consumers
from a small child asking mum to buy a new game to an international corporation
executive making a huge investment deal. Consumers seek items to satisfy their
basic needs and desires. Consumer behavior is much more than studying what
consumers buy. It attempts to understand how the decision-making process goes
and how it affects consumers’ buying behavior (Solomon 2004). Marketers study
consumers buying patters to solve where they buy, what they buy and why they
buy. However, why consumers buy a specific product is not easy to solve because
the answer is locked deep within the consumers’ mind. (Kardes et al. 2011;
Kotler&Armstrong 2010) Generally consumers can be categorized to individual
and organizational consumers. Individual consumers try to satisfy their own needs
and wants by purchasing for themselves or satisfy the need of others by buying
for them. These individual consumers can come from different backgrounds, ages
and life stages. (Kardes et al. 2010)
A consumer’s buying behavior is influenced by cultural, social,
personal and psychological factors. Consumer behavior is a part of human
behavior and by studying previous buying behavior, marketers can estimate how
consumers might behave in the future when making purchasing decisions.
Growing consumer
consciousness has made consumers choose to purchase their familiar and
favorable brand. Therefore, if businesses want to defeat their competitors,
they have to make consumers love to buy their products and brands. Macdonald
and Sharp (2000) mention that even though consumers familiarize and are willing
to purchase a product, brand awareness is still an important factor to
influence purchase decision. When consumers want to buy a product, and a brand
name can come to their minds at once, it reflects that product has higher brand
awareness.
Consumers’ purchase decision can be influenced if a
product has higher brand awareness (Dodds, Monroe, and Grewal, 1991; Grewal,
Monroe and Krishnan, 1998). This explains why a product with higher brand
awareness will have higher market share and better quality evaluation. In
addition, while consumers select a product, they care about perceived quality
and brand awareness. Perceived quality can help consumers to have a subjective
judgment on overall product quality that make a product hold a salient
differentiation and become a selective brand in consumers‟ minds (Aaker, 1991).
Besides, businesses have to build up brand loyalty. Some studies suggest that
the cost to attract a new customer is more than five times of maintaining a loyalty
customer (Reichheld and Sasser, 1990; Barsky, 1994). That is, the higher the
brand loyalty, the less cost businesses to pay.
Again, now, brands
are known for their corporate social responsibility and not merely on the basis
of product only. Researchers have noted that it is imperative to take a closer
look at how consumers develop relationship or interaction with brands and be
able to form communities of brand in their own personal lives (Esch, Langner,
Schmitt and Geus, 2006). For the purchase decisions a consumer may consider
environmental issues. So the question arises how to achieve acceptance of the
consumer on brand through environmental issues? Follows and Jobber (2000) has
addressed this issue of environmental impact upon brand in context of public
and corporate policy.
1.2 Statement of the problem
There are limited
scientific views on what influence the decisions of consumers to purchase
products in Nigeria. Recently, the growth of the value share of some of
manufacturing firms declined. Most companies have liquidated while some
operates in minimal or no profit as a result of customer decline. This draws
attention to the factors that influence the decision of the consumers of the
products of these leading companies to buy or not to buy. Further probing shows
that the companies have limited view as to what influence the decisions of
consumers to purchase their products.
Some studies conducted in other countries concluded that price was the
major factor that influences the decision of consumers to purchase (Ajzen and
Driver, 1992; Pierre et al., 2005; Schlosser et al., 2006). Other studies also
concluded that the ability of the consumer to purchase is the main factor that
determines the decision to purchase (Schlosser et al., 2006). In some previous
studies undertaken by (Kuang Chi, et al, 2009; Fatima and Sherazi, 2012;
Rizwan et al,
2014), they were of the view that the interaction among buyers‟ behavioral
variables on brand determine purchase decision. In the following studies
(Grewal, Krishnan, Baker and Borin 1998; Monore, 1990; Dodds, Monroe and
Grewal, 1991; Wall, Liefeld and Heslop, 1991; Lo, 2002; Lin, 2006; Kuang Chi,
et al 2009; and Oliver 1999), they concluded that brand awareness, perceived
quality and brand loyalty have a significant relationship with consumer
purchase decisions. In a separate study by Fatima and Sherazi (2012), they were
of the view that the impact of brand image, brand attitude and brand attachment
determines consumer purchase decisions. This result was consistent with
(Shwu-lng and ChenLien, 2009). In a subsequent study conducted by Rizwan et al
(2014), the outcome of the study indicated that low price, past experience;
brand attachment, product awareness and brand trust have a positive effective
on their purchase decision.
There are a number
of a variable that have been established in earlier studies that have
significant impact on consumer purchase decision in other countries, but as to
whether these same variables will have significant impact on the purchase
decisions of consumers in Nigeria is uncertain. It is against this backdrop
that this study intends to examine the determinants of consumer purchase
decision making.
1.3
Objectives of the Study
The main objective of the study is to examine the
determinants of consumer purchase decision making for selected pharmaceutical
products in Umuahia, Abia State. However, the specific objectives are; to:
(i)
examine the extent to
which social factors affect consumer purchase decision.
(ii)
examine the extent to
which personal factors affect consumer purchase decision.
(iii)
determine the extent to
which psychological factors affect consumer purchase decision.
1.4 Research Questions
The following
questions guided the study
(i)
To what extent does
social factors affect consumer purchase decision?
(ii)
To what extent does
personal factors affect consumer purchase decision?
(iii)
To what extent does
psychological factors affect consumer purchase decision?
1.5 Research Hypotheses
The following hypotheses is stated
in null form
H01: Social factors has no
significant effect on consumer purchase decision.
H02: Personal factors has no significant effect on consumer purchase decision.
H03: Psychological factors has no significant effect on
consumer purchase decision.
1.6 Significance of the Study
The study will be
quite significant to the following group of people; consumers, marketers,
producers and scholars.
The study will
enable marketers to understand the determinants the consumer purchase decision.
The study will help mobile phone dealers to adopt those strategies that
determines consumer purchase decision. The study will help customer to know the
factors that affects their purchase decision on a product or service. In other
words, the study will help customers in decision making. Finally, scholars; the
study will educated students of this noble institution and other institutions
on the determinants of consumer purchase decision. The study will also serve as
a reference material to both students and researchers in their future research.
1.7 Scope of the Study
The study centered on the determinants of consumer
purchase decision making for selected pharmaceutical products in Umuahia, Abia
State. The study will be carried out in Umuahia abia state using Blessed
medical Ltd and Family Chemist for data generation. The study focused more on
the extent to which social factors affect consumer purchase decision, the
extent to which personal factors affect consumer purchase decision and the
extent to which psychological factors affect consumer purchase decision.
1.9 Limitation of the Study
Perceived limitations to
this study include:
Respondent’s behaviour: Most management
prohibits its employee from giving out
information about the company to outsiders without adequate permission from the
management and even when this permission was obtained at the long run, many
vital information were not revealed because they were regarded as the privacy
of the company.
Non-availability of records: This is expected
to be one of the most important limiting factors in the course of the study.
This includes the problems of easily getting the appropriate data due to
bureaucracy which hinders the information flow in the country.
Time: Since this study
is one of the many courses offered by the researcher, the researcher will be
constrained by time to carry out an indent research on the study.
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