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Volume 2, Issue 9 (September-2012)

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PEER GROUP FACTORS AND THE PURCHASE DECISIONS OF MOBILE TELEPHONE SETS AMONG YOUTHS IN NIGERIA
Solomon Agada A. Department of Economics and Business Studies Redeemers University, (RUN) Mowe, Ogun State, Nigeria.

ABSTRACT
Buying decisions are critical to both the individual and institutional consumers and as a result certain groups tend to influence buying decisions by individual consumer and the institutional consumer like peer groups and decision making units (DMUs) respectively. The present study examines group factors and how they affect purchase decisions of mobile phone sets by youths in Nigeria. The study was carried out in Lagos State cosmopolitan city with a sample of 500 youths selected randomly and administered questionnaire designed by the researcher. The study analyzed purchase factors inducing purchase of mobile phone sets by youths such peer group dynamics, functional and hedonic factors. This was carried out with use of Statistical Package for Social Sciences (SPSS Version, 17.0). In view of a paucity of relevant literature about Nigeria specifics, the study reveals vital marketing and socio-economic benefits for all policy makers. Peer groups have a significant influence on psychological and social adjustments for group members describe instances where an individual feels indirectly pressured or induced into adjusting their behaviour to suit that of their peers. Youth tendency to take up acts and indulgences due to peer pressure are well documented and such pressures cannot be isolated from buying behaviours.

Keywords: Youth, Purchases, Decision, Telephone, Nigeria.

INTRODUCTION Consumers purchases involve enormous decision synthesis and information dynamics. These include information cues from both the internal and external environment. Messages received as a result of the consumers exposure to information overload (Herbert, 1971) poses a lot of International Journal of Research in IT, Management and Engineering www.gjmr.org 1

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decision making challenges for the consumer. As a result some purchase decisions are made under pressure or what Beatty and Ferrell (1998) regard as impulsive buying under economic or social group pressures.

During the decision-making process, consumers tend to be rational in thinking. However, there can be factors, such as time and the pressure by peers that cause consumers to rationalize the decision-making process to make purchase decisions and therefore exhibit irrational consumption behavior, called "impulse buying" (Mowen & Minor, 1998). This behavior is more prevalent when consumers are traveling. When tourists visit some attractions, they not only appreciate the local culture and experience the traditions, but also are drawn to the merchandise that is representative and characteristic of the local culture. The decision-making is snappy under the influence of being in a foreign place and the encouragement of companions or peer group members during the trip. Without planning, tourists often make unneeded purchases or ones exceeding their budgets culminating in both budget and psychological rationalization (WuChung Wu & Tzung-Cheng Huan, 2010) Consumer make purchases for several reasons including hedonistic and functional goals (O'Curry& Strahilevitz 2001). Hedonic consumption refers to situations in which the product or service is experienced for fun, pleasure, arousal, or excitement (Hirschman & Holbrook 1982). Functional products or services provide utilitarian benefits whereas some products or services may possess both functional and hedonic value simultaneously for most people and in different circumstances. The functional or hedonic nature of a given product or service may differ based on; (a) individual consumption preferences and purposes, (b) situations, and (c) the role of buyer/user. (Hirschman & Holbrook 1982). Encarta.msn.com (2010) defines a peer group as a social group consisting of humans and are an informal primary group of people who share a similar or equal status and who are usually of roughly the same age, tended to travel around and interact within the social aggregate. Members of a particular peer group often have similar interests and backgrounds, bonded by the premise of sameness (Wolf Sun, 2008). Generally, an earlier definition of a group in literature by Krech and Crutchfield (1948) see a group as two or more people who bear an explicit psychological relationship to each other Krech et al(1962) cited in Benneth and Kassarjian (1993),

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corroborated the definition and elaborated the definition of a group as persons who are interdependent upon each other such that each members behaviour potentially influences the behaviour of each of the other and include the sharing of an ideology: a set of beliefs, values, and norms which regulate their mutual conduct. Peer pressure emanates from peer groups and refers to the influences exerted by a peer group in encouraging a person to change his or her attitudes, values, or behavior in order to conform to group norms. Such groups include social groups like membership groups, when the individual is "formally" a member of a political party, trade union or a social clique. A person affected by peer pressure may or may not want to belong to these groups.(wikkipedia) In young people, peer pressure is prevalent. Youth peer pressure is considered as one of the most common forms of peer pressure. It is particularly common because most youth spend large amounts of time in static groups like schools and subgroups within them regardless of their opinion of those groups. In addition to this, they may lack the maturity to handle pressure from 'friends'. Also, young people are more willing to behave negatively towards those who are not members of their own peer groups whom they consider as the dissociative group.(wikkipedia) The present study intends to examine peer group factors and the impact on consumers purchase decision of mobile telephone sets among youths in Nigeria. Substantial literature reveals the preponderance of peer group factors such peer pressure on purchase decisions in certain countries with few emphasizing on specific product study. Scanty information is available about the concept in Nigeria. The author is also motivated by the rate of use of mobile telephone sets (GSM sets) and the passion youths put into buying behaviour of various models and brands which deserve a study of this phenomenon.

STATEMENT OF THE PROBLEM Peer group factors pose a significant concern for marketers. Peer groups issues such as reference groups, peer pressure, informal groups and groups dynamics, family, and role model-leadership predictors of influence on members decisions especially purchases cannot be underestimated. International Journal of Research in IT, Management and Engineering www.gjmr.org

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Deep involvement in group dynamics can lead to impulse buying. Welles (1986) finds that 90 percent of consumers admit to impulse buying. Bearden and Etzel (1982) from the consumer behaviour perspective indicate that products and brands purchased by consumers are influence by their reference groups. In addition, Bearden, Netemeyer, and Teel (1989), observed that the ubiquitous and prevalent use of spokespeople in product and service endorsements is an indication that individuals who are admired, whom people aspire to become like, and that belong to special groups admired and aspiring by people can influence the purchase behaviour of consumers. Since peer group pressure result in unplanned buying (Stern, 1962) the formal decision making process of the consumer is vitiated and may pose a problem to managing market demand. In the opinion of Wood (1998), cited in Wu-Chung Wu and Tzung-Cheng Huan (2010), regard impulse buying as unplanned, lacks thought and is accompanied by intense emotional drive. Wood also identifies two types of impulse buying: an akratic impulse, in which consumers do not have enough will power, and compulsive impulse buying. Iyer (1989) finds that both the shopping environment and time pressure affect consumers impulse buying. Impulse buying often results from external stimuli which arouse consumers new or perceived potential needs and form a strong and sudden urge. Borrowing a cue from a foremost quote by Robert Shiller (1995)People who interact with each other regularly tend to think and behave similarly. The marketer would not be defiant in taking facts like this as an opportunity to sharpen marketing strategies.

OBJECTIVES OF THE STUDY The aim of this study is to examine the impact of peer group factors in purchase decision by youths of mobile telephone sets in Nigeria. The study adopts the following specific objectives accordingly. i. To identify how group factors and dynamics affect youth purchase decisions of mobile telephone sets in Nigeria; ii. To examine the elements of group pressure that serve as predictors of purchase decisions especially among youths in Nigeria;

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iii. To identify brands and products purchase purposes that influence the buying behaviour of youth peer groups in Nigeria; iv. To make recommendations to marketers of mobile telephone sets in Nigeria about effective marketing strategies owing from the fact that the youth population constitutes a large market segment for the sale of mobile telephone sets in Nigeria.

METHODOLOGY A sample of 500 youths were randomly administered questionnaire in Lagos State, Nigeria by mere sighting by the researcher of who may fall within the defined age bracket and/or exhibit youthful tendency through dressing style, location of relaxation and meetings, institution of occupation or type of mobile phone set in possession. Lagos state was selected for the study because of its universality as a cosmopolitan city in Nigeria having a good representation of Nigerians from all over the country particularly the active workforce (youths), who reside in the city for secular jobs, employment search, and prospects for business and trading opportunities. Lagos is equally known for its slogan Eko for Show (Lagos for Show), where consumers compete under social pressures to buy and possess the latest fashionable (hedonic) or effective (functional) products to reflect the states national slogan, Centre of Excellence. The research instrument measured independent dimensions of group dynamics and peer group conformity variables that affect the consumer purchase decisions in respect of the use of mobile phone (GSM) sets in Nigeria. Analysis of relevant data was done with the use of Statistical Package for Social Sciences (SPSS, Version 17.0). The descriptive analysis showed the consumer demographics and an analysis of functional and hedonic demand features/factors that informs consumer purchase of mobile phone set. Correlation and regression analyses were carried out to show the relationship of peer group dynamics and how they predict the buying behaviour of youths in the purchase of mobile phone sets in Nigeria respectively.

LITERATURE REVIEW. Groups and Decision Making Processes

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Group dynamics exist in any form of organization whether formal or informal. A group is a collection of people who interact with each other on a regular basis over a period of time and perceived themselves to be mutually dependent with respect to the attainment of common goal(s) (Balogun & Obasan, 1999). According to them a groups can be termed as formal or informal depending on the formation and legal authority structure backing its existence within an organization. A formal group is characterized by formal procedures, legitimate existence, formal leadership structure as depicted in the organizational chart, and policy back-up through the organization charter or managerial decree (Balogun & Obasan, 1999). However, informal groups emerge from non officially prescribed policy or plan of the organization and are usually small in size compared to the formal group, having membership existence in very close proximity or interactions and portend an autonomous subculture within the larger organization. Although, in large formal groups there are likely to be several small informal cliques comprising of personalities with similar careers or interests (Burns, 1955). The family is regarded as an involuntary group that an individual such as a consumer of a particular product or service exhibits certain tastes and style in conformity with family norms. Just like any group, the family supplies benefits to family members such as biological maintenance, socialization, security, and a feeling of belongingness among members. The family is perhaps the single most influential group in the determining the consumption behaviour of individual (Benneth & Kassarjian, 1993). Youth Peer Groups and Pressure Dynamics Peer pressure describe instances where an individual feels indirectly pressured or induced into adjusting their behavior to suit that of their peers. Youth tendency to take up smoking act and indulgence in underage drinking are two of the best known examples of peer pressures. Although, peer pressure is often accompanied with negative connotations, peer pressure can be used in most cases positively especially where active participation by a person among his peers help to create consciousness about career development among ambitious young people. Nigerian ambitious youths tend to stay away from youths considered as no future ambitions (NFAs) and aspire to belong and to be counted among youths who they term as having a future. Youths define their class of friends and are bonded by their own codes which they adopt and use in communicating with non members. International Journal of Research in IT, Management and Engineering www.gjmr.org

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Youth is an alternative word to the scientifically-oriented adolescent and the common terms of teen and teenager. Another common title for youth is young person or young people (Konopka, 1973). Peer groups have a significant influence on psychological and social adjustments for group individuals (Erikson, 1968). Peer groups provide perspective outside of individuals viewpoints. Members inside peer groups also learn to develop relationships with other in the social system. Peers, particularly group members, become important social referents for individuals (Newman, & Newman, 1976) in teaching members customs, gender roles, social norms, and different ideologies (Youniss & Smollar, 1985). Reference Groups and Consumer Purchase Decisions Individuals would not feel comfortable on their own except they carry out an evaluation of their lifestyles and principles with others. Festinger (1954) claims that in the organic nature of man, man would try to evaluate his opinions and abilities and in the absence of any objective measurement means or criteria, people evaluate their opinions and abilities by comparison with the opinions and abilities of others. These people constitute the individuals point of reference or reference group which he uses in determining his own judgments, preferences, beliefs and behaviours. A reference group in a limiting case can be a single individual or a large aggregate of persons which the person refers to in whole or partly to moderate his behaviour by putting up either positive or negative reference attitude (Shibutani T., 1955) cited in Benneth and Kassarjian (1993). Purchase Decision Making Criteria and Brand Purchase Factors Generally speaking, a consumer goes through five stages in the decision-making process, including motivation, needs or problem recognition, information search, alternative evaluations, and final purchase (Engel et al.,1993). The decision to buy a particular product may be based on individual consumption objectives such hedonic consumption which refers to situations in which the product or service is experienced for fun, pleasure, arousal, or excitement (Hirschman and Holbrook 1982) or functional which refers to products or services that provide utilitarian benefits. Although some products or services may hold functional or hedonic value in the same way for most people (e.g., auto repair vs, amusement parks), the functional/ hedonic nature of a given product or service may differ based on (a) individual consumption preferences and purposes, (b) situations, and (c) the role of buyer/user.

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REFERENCES Bearden, W O. & Michael, J. E (1982). Reference Group Influence on Product and Brand Purchase Decisions. Journal of Consumer Research. 9(September). 183-194 Beatty, S E, Ferrell E M, (1998). Impulse Buying Modeling its Precursors. Journal of Retailing, 74(2): 169-191. Bennett, P. D. & Kassarjian, H H. (1993). Consumer Behaviour: Foundation of Marketing Series. New Delhi. Prentice-Hall. Burns, T. (1955). The Reference of Conduct in Small Group Cliques and Cabals in Occupational Milieu. Human Relations, 9, 467-487. Encarta.msn.com (2010). http://encarta.msn.com/dictionary_1861724592/peer_group.html. Retrieved 25 November 2010. Engel J F., Blackwell, R D., Miniard, P W. (1993). Consumer Behavior 7th ed. Fort Worth: Dryden Press. Erikson, E. H. (1968). Identity: Youth and crisis. New York: Norton. Hirschman, E, & Holhrook, M. (1982), "Hedonic Consumption: Emerging Concepts. Methods and Propositions." Journal of Marketing. 46 (October), 92-101.Hopkins Press. Iyer, E S. (1989). Unplanned purchasing: Knowledge of Shopping Environment and Time Pressure. J. Retailing, 65: 40-57. Konopka, G. (1973) Requirements for Healthy Development of Adolescent Youth. Adolescence.VIII (31), p. 24. Krech, D., Ballachey, E. & Crutchfield R. (1962). Individual in Society. New York: McGraw-Hill. Bourne, Francis S.(1957). Group Influence in Marketing and Public Relations, in Some Applications of Behavioural Research. ed. R. Likert and S. P Hayes: Basel: UNESCO Leon, F. (1954). A Theory of Social Comparison Processes. Human Relations, 7(May, 1954), 117-140. Mowen J C, Minor M. (1998). Consumer Behavior 5th ed.. New Jersey: Prentice-Hall. Netemeyer, R G. & Teel, J E. (1989). Measurement of Consumer Susceptibility to Interpersonal Influence. Journal of Consumer Research, 15(March), 473 481. Newman, B. M., & Newman, P. R. (1976). Early adolescence and its conflict: Group Identity versus Alienation. Adolescence, 11, 261274. O'Cuny, S. & Strahilevit M. (2001). Probabiliiy and Mode of Acquisition Effect.s on Choices between Hedonic and Utilitarian Options. Marketing Letters, 12 (February), 3749 Shibutani, T. (1955). Reference Groups as Perspectives. American Journal of Sociology. 60(May, 1955). pp. 562-569. International Journal of Research in IT, Management and Engineering www.gjmr.org

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Shiller, R. J. (1995) Conversation, Information and Herd Behavior, American Economic Review 85, 181-185 Simon, Herbert (1971), Computers, Communication, and the Public Interest: The JohnsHopkins Press. Welles G (1986). We're in the habit of impulsive buying. USA Today, May 21. Wikipedia visited on 3rd December, 2011. Wolf, Sun. (2008). Peer groups: expanding our study of small group communication. Thousand Oaks, CA: Sage publications, Inc. Wood M. (1998). Socio-economic Status, Delay of Gratification, and Impulse Buying. J. Econ. Psychol., 19: 295-320. Wu-Chung Wu & Tzung-Cheng Huan (2010). The Effect of Purchasing Situation and Conformity Behavior on Young Students Impulse Buying. African Journal of Business Management 4(16), pp. 3530-3540 Youniss, J., & Smollar, J. (1985). Adolescent Relations with Mothers, Fathers, and Friends. Chicago: University Of Chicago Press.

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