ABSTRACT
This study investigates the effect of buying behavior on the
purchase decisions of consumers regarding convenience goods in Enugu
metropolis. The primary objectives are to evaluate the impact of income, price,
and strong habits on consumer choices and to identify the key factors
influencing the purchase of convenience goods from retail stores.
A descriptive survey method was employed for the research
design. The population comprised all consumers in Enugu metropolis who purchase
goods from various supermarkets and open markets. A stratified random sampling
technique was used to select a sample size of 210 consumers, ensuring
representation across 13 strata within Enugu metropolis. Data were collected
through surveys and observations, with responses from consumers in Asata
analyzed using tables, frequency distribution, percentages, and chi-square
tests.
The study's findings revealed income level of consumers
significantly influences their purchase decisions regarding convenience goods.
Higher income levels correlate with a higher likelihood of purchasing convenience
goods from retail stores. Contrary to the hypothesis, the low cost of
convenience goods does not significantly influence consumer patronage. Many
consumers prioritize other factors over price when making purchasing decisions.
Strong habits do not significantly stimulate demand for convenience goods. Most
respondents indicated that their purchasing habits do not compel them to buy
convenience goods from retail stores. Several factors influence consumers to
purchase convenience goods from retail stores instead of other classes of
consumer goods. These factors include the location of stores, time constraints,
personal factors, and psychological factors.
Based on these findings, the study concludes that consumer
income plays a critical role in the purchase of convenience goods. However,
consumer habits are not a significant determinant in the purchasing decision
process. Various factors, including store location, convenience, and personal
preferences, are more influential in driving consumer behavior.
The study recommends that marketers and retail store
managers focus on understanding the income demographics of their target market
to tailor their offerings accordingly. Additionally, efforts should be made to
enhance the convenience and accessibility of stores, as these factors
significantly impact consumer decisions. The study also suggests that consumer
behavior should be continually assessed to understand the evolving factors
influencing the purchase of convenience goods, beyond just price and habit.
TABLE
OF CONTENTS
CHAPTER
ONE
INTRODUCTION
1.1
Background of the Study
1.2
Statement of the Problem
1.3
Objectives of the Study
1.4
Research Questions
1.5
Research Hypotheses
1.6
Significance of the Study
1.7
Scope and Limitations of the
Study
1.8
Definition of Terms
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Consumer
Behaviour
2.2 Classification
Of Consumer Goods
2.3 factors
influencing consumer
2.3.1 Situational factors
2.3.2 Personal Factors
2.3.3 Psychological Factors
2.3.4 Culture
2.3.5 Social Class
2.3.6 Reference Groups and
Opinion Leaders
2.4 Price
2.5 Summary of literature
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research
Design
3.2 Area
of the Study
3.3 Sources
of Data
3.4 Population
3.5 Sample
Size Determination
3.6 Instrument
for Data Collection
3.7 Method
of Data Analysis
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1
Analysis of respondents’
demographic variables
4.2
Test of stated hypotheses
4.2.1 Hypothesis One
4.2.2 Hypothesis two
4.2.3 Hypothesis three
4.2.4 Hypothesis four
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Summary
Of findings
5.2
Conclusion
5.3
Recommendation
References
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
In economics, any commodity which is produced and
subsequently consumed by the consumers, to satisfy its current needs, is known
as a consumer good. Consumer goods that are ultimately consumed, rather than
being processed further into other goods.
Consumers are individuals and households who buy goods and
services to serve their personal use. Consumer goods are those goods which
individuals purchase in such form that do not require further processing.
Examples of such goods are television, pressing iron, wrist watch, shoes, cigarettes,
chewing-gum, video tapes, etc. Consumer products are grouped according to the
consumer’s buying habits. They are convenience goods, shopping goods and
specialty goods.
Convenience good is a consumer product which consumer buys
as a routine, purchased often, appeals to a large market and the consumer
purchases them with little planning. Generally, convenience goods come in the
category of non-durable goods such as fast food, cigarettes, tobacco, biscuits,
etc in order for these producers to reach their target market, they have to have widespread availability. Convenience
goods are not associated with a large price, so companies must sell a large
volume in order to make a profit.
Think of how many places you can buy a pack of gum, places
like drug store, supermarkets,
convenience stores, warehouses, etc. most of the time these products do not
require much thought and are almost reflex reactions for the consumer to buy.
Convenience products also do not require complicated information based on
advertising. Instead, the promotion is all about reminding the consumer that
the product is available.
Shopping goods are those which take lot of time and proper
planning before making purchase decision. In this case, consumers do a lot of
selection and comparison based on various parameters such as cost, brand, and
style, comfort, etc, before buying the item. Shopping goods are costlier than
produce shopping goods usually try to set up their shops and show rooms at
active shopping area to attract customer
attention. Their main focus is to do lots of advertising and promotion,
so as to attract customer. Homogenous and heterogeneous are the two specific
types of shopping goods. Homogeneous products are perceived by consumers as
very similar in nature and the final purchase in determined on the lowest
price.
Heterogeneous products are viewed very differently and
consumer’s comparison based on, not just for the lowest price, but for the
brand that works better than the other.
Brands play an important role in heterogeneous goods, as the
features, image and quality of the product is considered.
In fact, shopping products usually have a social pressure to
the purchase in a heterogeneous type of product, so consumers are willing to
put in the time to receive a psychological benefit.
Distribution of shopping goods does not need to be as
widespread as convenience goods because there is a smaller target market for
the products.
Specialty goods are unique in nature; these are unusual and luxurious
items available in the market. Specialty goods are mostly purchased by the
upper class of the society, because of their expensiveness in nature. It is
quite difficult to be afforded by middle or lower class people of the societ Companies
advertise their goods targeting the upper class. These goods do not fall under
the category of necessity; rather they are purchased on the basis personal
desire or preference.
Brand name, uniqueness and special features of the item are
major attributes which attract consumers and make them buy such products.
Examples of such goods are Jewelries, wedding dresses, car, etc.
Consumers’ behavior on the commonly used products which are
identified as frequently purchased products and those that are necessary and
may not be avoided in the consumer’s daily activities. Consumer may have
different preference, taste and behavior patterns while is making a purchases
decision. Consumer behavior which is complex and involves interplay of
individual and social cultural processes may studied with the knowledge of
behavior exhibited by people in purchasing and using economic goods or
services. In consideration of convenience goods which are frequently purchased,
it is important to know the preference and taste of consumers. These factors
that forces an individual consumer during the purchase process is needful to
detect.
It is imperative for the retailers to understand the
behaviors consumers which are highly dynamic in nature. Review of literature
has revealed that purchase behavior of consumer is different in various countries
and societies. The reason behind the variation in behavior of consumers is as a
result of diverse cultures and the changing economics of those societies. So
this study intends to know how these factors have created an impact on the
consumer choice of convenience goods in Enugu metropolis.
1.2
STATEMENT OF THE PROBLEM
Consumers have a choice to make in determining what they buy
and how they make the purchase, but most of the time, the choice of what to buy
then, is dependent on the income, job, strong habit, family structure, etc, of
the individual consumer.
Firstly, limited resources at the consumer’s disposal affect
his or her patronage of convenience goods. That is to say that the good income
level of the consumer usually determines the response to purchasing of goods
when the need arises.
Furthermore, strong habits can lure consumer into unprepared
buying anywhere, unfortunately, when it is a bad strong habit like smoking, it
becomes a big problem.
Also, need recognition can trigger a demand for sudden
purchase of goods by consumers. They are routine needs, planning need and
emergency need. Finally, these convenience goods are known to be less
expensive, does it show quality production of them? These and many other
problems are the reasons the researcher seeks to analyze the obvious factors
that can easily influence the consumer’s choice of purchase of convenience goods.
1.3
OBJECTIVES OF THE STUDY
1. To examine the effect of income in the choice of consumers
purchase of convenience goods in retail stores
2. To examine the effect of price on consumers’ choice of
buying convenience goods from retail stores.
3. To examine the impact of strong habits and consumers
purchase choice.
4. To examine the factors that influences consumers to buy convenience
goods from retail stores.
1.4
RESEARCH QUESTIONS
1. Does income have any impact on the purchase behavior of
consumers?
2. Do strong habits of consumers affect their choice of
purchase of convenience goods?
3. Does need recognition of convenience goods affects
consumer’s choice of their purchase?
4. Does low pricing strategy of convenience goods affect
consumer’s choice of their purchase?
1.5
RESEARCH HYPOTHESES
Ho1: Income level of
consumer does not influence their choice of convenience goods to a large extent.
Ho2: Low cost of
convenience goods does not influence their patronage to a large extent..
Ho3: Strong habits do
not stimulate demand for purchase of goods.
1.6
SIGNIFICANCE OF THE
STUDY
The following people will benefit from the finding of this
study
1. Consumers: consumers who come across this study will have an in-depth
knowledge of the factors that consciously or unconsciously influence the
purchase choice of buying different goods. Such knowledge will equip them
against any factor that makes them make wrong purchase decisions.
2. Marketers: this study will provide marketers with information on the
techniques that induce consumers at the point of purchase. In other words, it
will provide information that will be useful in influencing consumer’s buying
choice.
3. Students: this study will also be useful to students in marketing
departments as it will add to the stock of literature on the subject matter.
Besides, it will serve as a reference material to those who carry out related
studies in future.
1.7
SCOPE AND LIMITATIONS OF THE STUDY
The scope of the study covers the areas of buying behavior
and variable factors that leads to purchase decision of consumers on
convenience goods in Enugu metropolis.
An exercise of this nature is not free without some
difficulties of various kinds and as such, the study has some interested
difficulties include the following.
5
Un-co-operative
attitude of some consumers who were approached for information during
questionnaire administration. Their refusal to complete the questionnaire or to
be interviewed adversely affected the volume of information for the study.
6
Inadequate
fund: the researcher could not make use of assistants to administer the
questionnaire because of lack of fund. This made the exercise very difficult.
7
The
respondents tend to be brazed in answering questions hence, hide important
information.
8
Finally,
the materials need for the completion of this research work was not always at
one’s back and call.
1.8 DEFINITION OF TERMS
Consumer: Consumer is defined by Kotler (2009) as individuals and
household buying for personal use.
Consumer
Products: Kotler (2008) sees consumer products as the
goods that are purchase by household or individual for person consumption and
not for sale.
Consumer
Behavior: This is the study of how
individuals, groups and organizations select, buy, use and dispose of goods,
services, ideas or experiences to satisfy their needs and wants.
Decision
Making: this involves the stages
in buying, using and consuming product that satisfy needs and wants (Nnabuko,
1998).
Influence: this means the effect that something or somebody
has on the way a person thinks of behaves or on the way that something works or
d ebelp (Brassington and Pettit, 2005: 114).
Products: products are anything capable of satisfying human
needs and w ants. (Onah and Thomas, 1993:67).
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