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METHOD
PROJECT REPORT
GROUP MEMBERS
MR. MUHAMMAD HARIS - 1325115
MR. ZAIN-UL-ABIDEN - 1325142
MR. EMAD SHEIKH - 1325106
MR. IMRAN SAEED - 1325120
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TABLE OF CONTENTS:
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DESCRIPTIONS
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Letter of transmittal
Letter of Acknowledgement
Executive summary
Abstract
Introduction
Literature review
Problems statement
Research objectives
Research hypothesis
Target population
Research methodology
Data collection method
Sample size
Data analysis method
Timeline
Cost estimates
Questionnaires
Conceptual framework
Statistical Analysis
Article
Conclusion
Limitations
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4
5
6
6
6
8
8
8
9
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11
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LETTER OF TRANSMITTAL:
Sir,
I am very pleased to submit you our project report on effect of
children on family buying decision according to MBA 1st Semester
Curriculum. This report includes problem statement and a literature
survey. As the major work entails the marketing domain, it is a great
opportunity for us to show our skills and abilities and I am thankful to
you for providing us a chance to work on challenging project and
explore my skills.
I am grateful for your guidance and supervision without which this
project could not have been completed.
Regards,
EMAD SHAIKH
For on Behalf of
All Group Members
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ACKNOWLEDGMENT:
I am deeply grateful to Almighty Allah for enabling us to accomplish this
research project.
Our gratitude to supervisor Mr. Naveed Ur Rehman without his help and
guidance this study would not have been possible.
Further, the respondents are also equally thankful for their support in
carrying out this research. I am also thankful to those who guide me during
this project.
I would render great thanks to my family and others who had directly and
indirectly cooperated with me throughout my research.
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EXECUTIVE SUMMARY:
Children comprise a significant target market segment and merit attention
from a marketing perception. The role that children play in making decisions
about the entire family unit has encouraged researchers to direct attention to
the study of influence of children.
The amount of influence exerted by children varies by product category and
stage of the decision making process. For some products, they are active
initiators, information seekers, and buyers; whereas for other product
categories, they influence purchases made by the parents.
The purchasing act is governed by how they have been socialized to act as
consumers. Older children influence more than younger children, but gender
does not contribute significantly to parents perception of their childrens
influence. Thus, marketers should clearly acknowledge childrens role in the
family buying decision making.
Analysis of the data showed that children up to the age group of 16 years
have more influence on family buying decision. Moreover this influence
increases when parents are professionally more involved than otherwise. This
study will help in understanding the purchase behavior of children and it can
also serve as guideline for marketers in targeting a particular children
segment.
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EFFECT OF
DECISON
CHILDREN
ON
FAMILY
BUYING
ABSTRACT:
This study has confessed that children have influence over family buying
decisions for a wide range of products. This study was conducted to examine
the impact of children on family buying decision regarding children and
family related products. A sample of parents along with their children aged
up to 16 years was studied in this project research.
INTRODUCTION:
The children have established an important place for market positioning in
our society than their parents that ever had. They are not only consumer but
have an emotional involvement on their parents buying decisions. The
distressing effect which they exhibit over their parents is increasing day by
day with the increase in small family system in which child remain the centre
of importance Cultural background also has an important role to play on
childs participation. This study is undertaken to evaluate all the factors that
have influence on family buying decision.
LITERATUTRE REVIEW:
Research on family decision making has been largely restricted to children,
who have been considered as the relevant decision making unit in a family.
However, the role of children influences on decision making strategies and
negotiations is essential to taking a broader view of the relevant unit of
analysis. Traditionally, women were seen to be the purchasing agents for the
family. But today increasing participation of women in the workforce has
driven a change in this role as children as buyers. Even in families where
women do not work, children are observed to share this role with their
Effect of Children on Family Buying Decision
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Certain products are simply childrens products for which they are the
primary users/buyers. They sometimes either purchase a product themselves
or select the product before it is purchased by the parents. For other
products, such as ones which are used by the entire family unit, they may
influence purchases made by the parents. There are some products where
children exert direct influence. This passive dictation of choice is prevalent
for a wide variety of daily consumed product items as well as products for
household consumption. Also, decision making in households is seen to
change with the mere presence of children. The amount of influence exerted
by children varies by product category and stage of the decision making
process. For certain products they are active in initiating a purchase, while
for others, they make the final selections themselves. The purchasing act is
governed by how they have been socialized to act as consumers. The
structure of Pakistani families has been previously characterized as joint
families (that is, the husband predominated in all family affairs). The
Pakistani families have become more modern such that the decision making
has become more unrestricted. Such a shift in family composition and
structure has a bearing on the strength in the role that children are expected
to play as buyers in the family.
Today children are not only passive observers but they have taken a
considerable place in the families and have a significant influence on
parental buying decisions.
Children influence on parents buying decision making varies by product type,
child, parent and family characteristics etc. Most of the studies have shown
that children yield more influence in purchase decisions for children related
products like toys (Burns & Harrison 1985, as cited by Kaur & Singh 2006);
cereals (Belch etal. 1985, as cited by Kaur & Singh 2006 ); snacks (Ahuja &
Stinson 1993 ) and childrens wear (Foxman ).
European Journal of Business and Management www.iiste.orgISSN 2222-1905
Effect of Children on Family Buying Decision
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PROBLEMS STATEMENT:
To study various aspects of children influence on family buying decisions, role
of demographic factors/variables like gender and age of children and
parental profession on children in family buying decisions.
RESEARCH OBJECTIVES:
The main objectives of this research are:
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RESEARCH HYPOTHESIS:
The influence of parents and child for different type of product are the
same.
TARGET POPUALTION:
The target audience for my research was not gender specific; it includes
males and females of the business group and households. The age of
selected population ranges from 40-50 with the income level of 30,000 and
above .The target audience are more likely to be sociable. Geographical
location should be limited to Karachi because of mobility issue.
RESEARCH METHODOLOGY:
This research has considered various areas, where different conclusions have
drawn, for conducting this research various questions have been framed. The
research questions for this study include:
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PRIMARY DATA
Primary data collection is used if the data is unavailable or in appropriate due
to lack of importance or accuracy. This study employs in-depth interviews.
The main propose of interviewing is to understand and explore people views.
Interviews were used as a method of data collection because it facilitated
face-to-face interaction with the respondent. It also obtains good amount of
contextual and elaborative data Interviewing also helps in exploring
indistinct interconnection in social relationships.
SECONDARY DATA
The main sources of secondary data are internet and books on the topics
that centered on the theme related to effects of children on family buying
decision.
SAMPLING METHOD:
The sampling methods used for the research haphazard sampling.
Effect of Children on Family Buying Decision
Page 11
SAMPLE SIZE:
Sampling is one of the main elements in a research design. Sample size is
the number of the elements to be included in a study. Deciding on a sample
size is a complex process, which takes various quantitative and qualitative
aspects into consideration. Since qualitative approach is exploratory and
amorphous in nature, the sample size generally tends to be small.
Since this research has adopted a qualitative approach, so the parents have
a children up to the sixteen years of age group were interviewed during this
study. They were selected randomly, depending on whether they wished to
be interviewed. Interviews were conducted in various areas of Karachi with
respondents of various castes.
The sample size taken in this research is n= 50.
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After your data is entered into SPSS your cases are all defined by values
stored in the variables you can run an analysis. You have already finished the
hard part. Running an analysis on the data is much easier than entering the
data. To run an analysis, you select the one you want to run from the menu,
select appropriate variables, and click the OK button. SPSS reads through all
your cases, performs the analysis, and presents you with the output.
You can instruct SPSS to draw graphs and charts the same way you instruct it
to do an analysis. You select the desired graph from the menu, assign
variables to it, and click OK.
Not only does SPSS require that you select a sufficient number of variables to
produce output, it also requires that you choose the right kinds of variables.
If a categorical variable is required for a certain slot, SPSS will not allow you
to choose any other kind. Whether the output makes sense is up to you and
your data, but SPSS makes certain that the choices you make can be used to
produce some kind of result.
TIME LINE:
Questionnaire Development= November 18, 2013
Sampling Plan= November 11, 2013
Data Collection= November 13, 2013
Data Analysis= November 22, 2013
Final Project Report= November 28, 2013
Presentation= November 30, 2013
COST ESTIMATES:
Transportation
Rs. 5,000/=
Page 13
Paper Cost
Rs. 1,500/=
Opportunity Cost
Rs. 1,000/=
Misc Cost
Rs. 3,000/=
Total
Rs. 10,500/=
QUESTIONNAIRES:
Name:
Age:
Profession:
Income:
Experience:
AGRE
E
NEUTRAL
DISAGREE
STRONGLY
DISAGREE
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Page 15
independent
in
CONCEPTUAL FRAMEWORK:
Current changes in social environment and demographic structures are
increasing the childrens influence on their parents decisions and their
concern in family decision making.
The children have established an important place for market positioning in
our society than their parents that ever had. They are not only consumer but
also have an emotional involvement on their parents buying decisions. The
distressing effect, which they exhibit over their parents, is increasing day by
day with the increase of the socializations, which are highly effect on the
mind of the children.
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Page 17
Reliability analysis
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's
Standardized
Alpha
Items
.959
N of Items
.960
15
Page 18
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's
Standardized
Alpha
Items
.948
N of Items
.944
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's
Standardized
Alpha
Items
.924
N of Items
.926
Reliability Analysis if its is more then .7o and our reliability is .948 , so it is
reliable its according to the Sickran 2005, sunder 2002 and bins and buns
2007.The reliability test for the variable family communication pattern,
product type and ages are relatively high and there is no missing value, all
the items are related.
Frequency analysis
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Page 20
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T-test
Group Statistics
gender
MD
Mean
male
25
.1600
.23805
.04761
female
25
.4667
.19245
.03849
Page 22
F
MD
Sig.
1.481
t
.230
df
-5.009
48
-5.009
45.982
assumed
Sig. (2-tailed)
MD
Mean
Std. Error
Difference
Difference
.000
-.30667
.06122
.000
-.30667
.06122
assumed
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Upper
-.42976
-.18357
-.42990
-.18343
assumed
Page 24
Correlation:
fcpS
fcpS
Pearson Correlation
AgesS
1
.971**
.894**
.000
.000
50
50
50
.971**
.927**
Sig. (2-tailed)
N
AgesS
Pearson Correlation
Sig. (2-tailed)
N
PtS
Pearson Correlation
Sig. (2-tailed)
N
PtS
.000
.000
50
50
50
.894**
.927**
.000
.000
50
50
50
Our correlations are more then .3 so it means that our correlations are high
correlation By Pearson correlation value we can conclude that there is the
strong linear relationship between variables. If age will increase then family
communication pattern will increase. If age will increase then the product
line will increase and if product line will increase then the family
communication will increase. Hypothesis here is true, children have >30 %
influence on family decision making & there is a linear relationship between
effect and family characteristics or communication pattern. But the influence
of parent and children for different type of product are not the same.
Page 25
Regression:
Page 26
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 27
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 28
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 29
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 30
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 31
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 32
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 33
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 34
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
ptS, agesa
Method
. Enter
Model
.972a
Adjusted R
Square
Estimate
R Square
.944
.942
2.94612
Squares
Regression
Residual
Total
df
Mean Square
6866.477
3433.238
407.943
47
8.680
7274.420
49
F
395.551
Sig.
.000a
Coefficients
Page 35
Charts
Page 36
For regression independent variable are product type and ages and
dependent variable is family communication pattern. There is a positive
correlation among variable, as if there is a change in product type and ages
there is a change in family communication pattern. Our mostly data are on
45% so they are normal.
Page 37
ARTICLE:
Children plays very important role in the purchasing pattern with their
parents. Their effect on their parents will be increases with the passage of
time in which a family has limited and families only focus on them. Our
environmental and cultural background plays very important role in that
perspective to educate regarding the market and through this education they
are effecting on their parents. We are taken that study in order to know that
which factor are effect mostly on that and what the causes are. In Childrens
case they have the exciting attachment involved on the parent buying
decisions.
To analysis these situation we are taken three variables that is Family
communication pattern, Product type and ages according to this we made
our question on first variable we made fifteen questions on it on second we
made seven question on it and on third variable we made eight
questionnaires on it and ask from the people regarding it. We added
demographics in our questions i.e. Gender male and female (we are
selecting 25 males and 25 females for our sampling) divided them according
to their income range i.e. (30000-70000), in which mostly people from whom
we are collecting the sampling are lying in the range of 30000-50000
income, ages are between the 40-50 years for our sampling. We are giving
sample papers 25 to male and 25 females and they have to fill. Most of the
people are agree on that point that children have influence over the parents
buying behaviors and also parents allow them to done shopping for
themselves very few of the traditional people will not allow them to purchase
themselves. After sampling we analysis our data on SPSS and results are as
follows. Reliability Analysis if it is more then .7o and our reliability is 948, so
it is reliable its according to the Sickran 2005, sunder 2002 and bins and
buns 2007. Distributions of the frequency graph are abnormal. As it is not in
the center the entire bar so we can say it as the abnormal histogram it is.
Our correlations are more than .3 so it means that our correlations are high
correlation. In regression our mostly data are on 45% so they are normal. TTest result sample is less than .005 so it is significant. It is according to the
Morgan KREJCE 1970, yamne1967
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CONCLUSION:
Results indicate that children exercise relatively strong influence on family
decision making processes in connection with purchases, particularly in the
case of products relevant to them (like, juice, soft drinks, and mobile
phones). An analysis of children as consumers helps in the formulation of
marketing strategies by identifying the motivations, interests, and attitudes
of children who show the greatest involvement in making purchases in a
specific product category.
The gender of the children does not contribute significantly to parents
perception of their childrens influence. According to parents perception,
increased child influence is positively correlated with childrens age; older
children have significantly more influence on family decision making than
younger children.
All in all, our study shows that children influence the family decision making
process, and therefore it is important that childrens role in family decision
making is explicitly acknowledged.
Page 39
LIMITATIONS:
Although the study utilized a wide range of perception but there are several
limitations.
Language problem was also faced during conducting the interview with
women (housewife). They were not comfortable using the English
language, hence their interview were conducted in Urdu language,
therefore while translating the interviews questions, the true essence
of the words might be lost. These language differences may have
affected the results or research findings.
The findings of qualitative research are altered when they are regarded
as conclusive and are used to make generalizations to the population
of interest.
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