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Chapter 1

THE PROBLEM AND ITS BACKGROUND

This chapter includes the introduction, background of the study, theoretical

and conceptual framework, statement of the problem, hypothesis, scope and

limitations of the study, its significance and the definition of terms.

Introduct@on

Students always tend to look for the best items that would satisfy their

needs, preferences and tastes. College students in particular have the most

crucial purchasing decisions. They are very particular most likely with the items

that they use in school. Predominantly, college level students are the ones who

directly buys and chooses what product to purchase. They do have much

aspects to consider to have the best that fit their personality and preference.

Generally, backpacks are one of the important things that students use.

Backpacks for some college students are more efficient to use most likely when

they have lots of things to bring. @arious brands of backpacks are in the market

and have lots of differences in price, !uality, designs, colors, si"es and more.

The researchers then, seek to gather and understand the buying factors of

college students in purchasing a product. Students as consumers have various

decision factors on buying. Thus, the researchers want to determine the buying

factors of college students on backpacks.

Bac!"round o# the Stud$

Buying behavior is the decision processes and acts of people involved in

buying and using products. The process by which individuals search for, select,

purchase, use, and dispose of goods and services, in satisfaction of their needs

and wants. The purchase decision is influenced by factors such as the

consumer#s profile, social and cultural environment, knowledge and their

preferences in buying products.

$u%ury goods are products which are not necessary but which tend to

make life more pleasant for the consumer. &n contrast with necessity goods,

lu%ury goods are typically more costly and are often bought by individuals that

have a higher disposable income or greater accumulated wealth than the

average.

College students are the respondents in this study and will be given a

chance to evaluate themselves in buying desired lu%ury items specifically

'ansport backpack. College students as consumers hold a huge buying power

and are very influential among other age groups and they have their whole lives

in front of them where they might get higher paying (obs and they will continue to

buy and consume. Students are an integral part of a country#s economy ) they

are avid consumers and trendsetters, and they are intelligent and very informed.

They are also highly mobile and digital, and more likely to look for deals and

offers.

Theoret@ca% &ra'e(or!

The ma(or theories of consumer behaviour can be grouped with *a+

economic theory, *b+ psychological theory *c+ psychoLanalytical theory and *d+

socio cultural theory.

The economic theory on consumer behaviour focused on how consumers

allocate their income and how this determines the demands of various goods and

services. The traditional theory of demand starts with the e%amination of the

behaviour of the consumer, since the market demand is assumed to be the

summation of the demand of individual consumers. &n the traditional theory, it is

assumed that the consumer has full knowledge about all available commodities,

their prices and income. &n order to attain the ob(ective, the consumer must be

able to compare the utility *satisfaction+ of various baskets of goods, which he

can buy with his income.

-oreover, the basic economic theory include marginal utility theory.

-arginal utility theory was developed by classical economists. Nccording to them

a consumer will continue to buy such products that will deliver him the most utility

or ma%imum satisfaction at relative prices. /conomists hold the view that man is

rational in all the activities and purchasing decisions are the result of economic

calculations. This theory brought out two laws that are said to govern consumer

buying behaviour. These include law of diminishing marginal utility and law at

e!uiLmarginal utility. Ns per the $aw of 0iminishing -arginal 1tility, a consumer

satisfies his wants in order of their urgency and that he consciously or

unconsciously weighs in his mind the price he has to pay for the utility of each

product he buys. &n the case of $aw of /!uimarginal 1tility, so as to ma%imise

satisfaction, consumer arranges his e%penditure in such a way that his marginal

utilities from different items are e!uali"ed by a process of substitution of product

or more utility for one possessing less utility.

2owever, the economists only partially accept this theory on the ground

that economic factors alone cannot e%plain variations in sales and decision of

purchase by consumers, but it is influenced by many psychological and

sociological factors. 3n account of these, economists have attempted to refine it

by providing improvements and thereby formulated indifference curve analysis

and theory of revealed preferences.

&n the indifference curve analysis, the overall consumer choice problem is

structured as a relative choice between product alternatives within constraints

related to price, income and the available budget. Similar type of refinement of

the utility theory has also been made by Samuelson in his 4evealed preference

theory and by Nrmstrong in his -arginal Preference theory. 5hile the utility

approach is micro in character, there are important macro theories also.

Psychological theory. The essence of this theory *learning theory+ lies in

the fact that people learn from e%perience and the results of e%perience will

modify their actions on future occasions. The importance of brand loyalty and

repeat purchase makes learning theory more relevant in the field of marketing.

This theory comes with stimulus response theories and cognitive theories.

Contributors of stimulus response theories include Purlon, Skinner

Thorindike and 6otlew. Nccording to them learning occurs as a person responds

to some stimulus and is rewarded with need satisfaction for a correct response.

They proved that most fre!uent and recent stimuli are remembered and

responded. This approach is the basis of reported advertisements. The cognitive

theory was propounded by 7estinger mainly to e%plain certain post buying

behaviour.

Nccording to it, stimulation and want are conditioned by a consumer#s

knowledge, his perception, beliefs and attitudes. The theory further states that

even after a well thought out purchase, the consumers undergo some sort of

discomfort, fear or dissonance. This post decision an%iety is caused by 8nice#

*cognitive dissonance+ arising from doubts on the decisions taken. The

consumers compare on the merits of the products bought with substitutes or start

analy"ing drawbacks of the product. Such customers re!uire some reassurances

from the seller stressing that the decision taken is wise one. Though the theory

was developed to e%plain a 8post decision# phenomenon, it is suitable for

e%plaining preLdecisions an%iety also. The advertisements and personal selling

aimed to reduce cognitive dissonance on the part of the buyer and prophets.

Gestalt theory, coined by German Psychologist Christian @on /hrenfels,

viewed personality as the result of the interaction between the person and the

total environment and the two must be considered together as a patterned event.

Consumers attempt to stabili"e their psychological field by providing meaning to

the surrounding world. Consumers, in making market decisions, strive to reduce

tension and conflict between themselves and their environmental perceptions.

PsychoLanalytic theory. This theory developed from the thoughts of

Sigmund 7reud. 2e postulates that personality has three basic dimensions, the

id, the ego and the super ego. &t follows that consumer behaviour is a function of

the interaction of these three systems. 2ere, the id urges an en(oyable act, the

ego acts as the arbitration in determining whether to proceed or not and the

super ego presents the moral issues involved.

7urther, this has led to motivational research and has proved useful in

analy"ing buyer#s behaviour. This in turn has contributed some useful insights in

the advertising and packaging field.

Socio cultural theory. The credit of formulation of this theory goes to

Thorstein veblem *9:;;+ and is known as veblenian model. 2e asserted that a

man is primarily a social animal and his wants and behaviour are largely

influenced by the group of which he is a member. 2e argued that people have a

tendency to fit in a society in spite of their personal likes and dislikes. Culture,

sub culture, social classes reference groups, family are the different factor

groups that influence buyer behaviour.

Nll the above theories give guidelines to the marketing managers how a

consumer behave in a particular situation and what are the factors which

influence their decision making process.

Conceptua% &ra'e(or!

INPUT PROCESS OUTPUT

9. Profile of the respondents

in terms of the following<

9.9 Nge
9.= Se%
9.> Customer $oyalty
9.? People 5ho
&nfluence in
Buying@Purchasing
'ansport Backpack
9.A bumber of cears Buying factors of
as Consumer of consumer when it comes
'ansport Backpack to purchasing 'ansport
backpack<
=. 2ow do the respondents The consumer#s buying
assess the level of customer 9. Survey 7orm factors in terms of
importance on purchasing =. &nterpretation of purchasing 'ansport
'ansport backpack in terms of Bagpacks, evaluated.
0ata Gathered
the following factors<
=.9 Brand >. Nnalysis
4. Presentation
=.= Price
=.> Duality
=.? Service
=.A Ndvertisement

>. 2ow do the respondents#

levels of importance compare
when they are grouped
according to their profileE

Figure 1. Research paradigm shows how the

research will take place through the I-P-O or the
Input-Process-Output system

The research paradigm shows how the research will take place through

the &LPL3 or the &nputLProcessL3utput system. The input contains the leading

variables regarding consumer buying factors decisions. &t includes the profile of

the respondents which is needed to know more about consumers, the second

part which is pertained to the importance of each buying factors *brand , price,

!uality, service and advertisement+ to consumers and lastly, the significant

difference on the consumersLrespondent on purchasing 'ansport backpack.

The second frame contains the methods and procedures to be used in

analy"ing those variables by using formulated !uestionnaires, and use of

statistical tools to produce relevant data which will be interpreted, analy"ed and

presented to formulate solutions and answer the research problems presented

The output presents the outcome of the research.

The arrows include the workflow of information in the research process.

The feedback was connected to the output and input as well. &t made the

research system flow continuously.

State'ent o# the Pro)%e'

The purpose of this study is to determine the importance of the factors

considered in buying 'ansport backpack.

&n evaluating the statement, this study will specifically answer the following

!uestions<

9. 5hat is the demographic profile of the respondents in terms of the followingE

9.9 Nge
9.= Se%
9.> Customer $oyalty
9.? People 5ho &nfluence in Buying@Purchasing 'ansport Backpack
9.A bumber of cears as Consumer of 'ansport backpack
=. 2ow do the respondents assess the level of customer importance on

purchasing 'ansport backpack in terms of the following factorsE

=.9 Brand
=.= Price
=.> Duality
=.? Service
=.A Ndvertisement
>. 2ow do the respondents# levels of importance compare when they are

grouped according to their profileE

H$pothe*@*

The following hypothesis will be tested at F.FA margin error.

The null hypothesis tested is<

There is no significant relationship between the profile of the respondents

and their buying factors in purchasing a product.

Scope and L@'@tat@on* o# the Stud$

This study will focus on the factors influencing the buying behavior on

purchasing 'ansport backpack. The researchers will try to determine which

among the factors *brand, price, !uality, service and advertisement+ has a great

impact on the respondents in consideration of their motives to buy. This research

will cover 9=F respondents, including male and female that are currently studying

at the Polytechnic 1niversity of the Philippines *Sta. -esa, -anila+ taking up

Bachelor of Science in Business Ndministration -a(or in -arketing -anagement

on the third year, and with are any source of income.

10

S@"n@#@cance o# the Stud$

This study aimed to determine the factors affecting the buying behavior and

its relevance to >rd cear -arketing students at Polytechnic 1niversity of the

Philippines. Therefore, this study may be significant to the following<

Mar!eter*+ They will have more idea on where among the factors to focus on

creating sales.

Mana"e'ent+ They will gain more understanding to the motives of the

consumers on purchasing a bag.

Bu*@ne**'en+ &t will serve as a basis on how to properly communicate on

the market by using consumersg preference on buying.

Con*u'er*+ They may be given the opportunity to tell their insights and help

the companies to where they can put more effort to be able to gain sales and

patroni"ation.

Other re*earcher*+ &t will inspire them to work on this same type of study,

which shows concern on both the organi"ation and the consumers.

De#@n@t@on o# Ter'*

7or clearer understanding of the terms used in this study, below are their

meanings<

A""re**@,e+ The state of being ready at all times.

Beha,@our. The way a person acts or behaves on something.

11

Con*u'er+ N person who buys goods and services.

Con*u'er Beha,@or+ This refers to the psychological study of consumers

in making a decision for purchasing products.

I'pact. To have a strong effect toward something.

L@n"er+ To stay somewhere beyond the usual or e%pected time.

Chapter -

RE.IE/ O& RELATED LITERATURES AND STUDIES

This chapter presents the literature and studies, foreign and local which are

found relevant and may be able to assist in the present study.

&ore@"n L@terature

What Factors Influence the Consumers @uying @eha!ior"

12

N consumer buys goods or services for his or her personal use.

*Nrmstrong H 6otler+ 5hat factors influences the consumers buying behaviorE

These are cultural factors, personal factors, social factors, psychological factors,

various academic sources have been used and reviewed below.

Today, the world markets change to global market, it has brought many

opportunities and challenges, and the markets are facing more challenges even

than before, especially the rapid technological advancements like shopping

online and this fast developing economy has completely changed peoplegs

lifestyle.

5ith the development of consumer society, the concept of corporate

management more concerned about the consumer changes. IFs from the =Fth

century, the concept of corporate management from production orientation,

market orientation of the development of marketing orientation. JN good market

researcher will study the thought process undergone by consumers, compare it

with their demographic data, and use the resulting information to market their

products.J*Nrmstrong et al, =FF; +

Consumers around the world is different in gender, age, income,

education level, living habits, and tastes, when they purchase the product they

show an incredible difference, those consumer purchase behaviors could be

influenced by many factors, such as cultural, personal, social and psychological.

*Nrmstrong H 6otler, =FF;+

13

The world leading authorities on marketing researchers< professor

Nrmstrong and professor 6otler, they analy"ed J the consumer buying behavior

refers to the buying behavior of final consumer, individuals and households who

buy goods and services for personal consumption.J*Nrmstrong H 6otler, =FF;+

$inehan and Cadogan *=FFF+ has many years e%perience worked with the

big companies on marketing research, they got the similar opinion with

Nrmstrong H 6otler, and also point out that marketers cannot control the buying

factors. Consumer buying behavior is been researched more and more today ,

due to the huge technology change ,that has taken place in the last two decades,

marketers must know what influence on the consumergs buying decision.

Those weaknesses have been discussed based in the current literature

reviews. &t suggests that the marketer should not only understand the e%isting

model of the consumer behavior, but also should e%amine the effect of the

personal impulse buying factors.

Culture factors

Culture is an important factor in consumer buying behavior. Culture

distinguishes one human group from others. N peoplegs culture includes their

beliefs, rules of behavior, language, rituals, art, and technology, styles of dress,

ways of producing and cooking food, religion, and political and economic

systems. *6im and Nhn, =FFI+

The most famous authority on culture study is Geert 2ofstede, he has

determined that culture as Jmental programmingJ which each person has his or

14

her own pattern of thinking, feeling or action which have learned through their life

time.*2ofstede,=FF9+ 2ofstede produced five different dimensions that classifies

different cultures, and his dimensions are relevant to this literature review on

consumer buying behaviors< &ndividualism and collectivism, has been studied as

the patterns of buying is different cultures that fall within either individualism or

collectivism categories .

Culture can be best e%pressed in the comple% interactions of values,

attitudes, and behavioral assumptions of a society. *Schwart" 9;;?+

People from the 1SN have a higher individualism score according to

2ofsedes study*=FF9+ ,it found that consumers from a individualism society were

more likely to purchase a product that made them stand out from others in their

social groups .They are more singularly minded they usually dongt look for advice

from their friends or family before they purchase.3n the other hand in a

collectivism culture like China, people will ask or seek advice from friends or

family members and look to their groups behaviors before the purchase, they

also consider what is acceptable within their group so that they reinforce their ties

with their group.

The awareness of this big gap between China and the 1SN is very

important to marketers, so that they can ad(ust their marketing strategies to

deliver the products that most suit the needs of the consumer in that particular

market .Culture differences is very important to understand, because if a

company gets it wrong it could be a very costly e%ercise.

15

$una and Gupta *$una H Gupta, =FF9+ have suggested that marketers

who are entering a foreign market that market should be researched to see how

consumers in that market will view their product or services, good research

should identify any potential problems.

Nrmstrong and 6otler are the foremost authorities on marketing in the

world today. The consumer buying behavior refers to the behavior of the

consumer, individuals and householders who buy goods and services for

personal consumption.

There work is inLdepth study of consumer behavior which states that

marketers have very little control over the factors that the consumer makes to

purchase a product.

They must take into account what are the influences that control the

consumersg behavior in making a purchase.

Personal factors

$inehan and Cadogan, point out< personal factors influence buying

decisions, it includes economic, age, gender, occupation, lifestyle, and situation,

etc. *$inehan H Cadogan,=FFF+ Peoples buying habits and tastes change with

age ,we have different needs and different outlook on life as we grow older .Ns

the different family cycle stages changes over time the needs also change .This

is a very important for the marketer to understand ,as to the distribution of people

in regards to their age. -arketers will try to identify age groups that have more

than the average interest in their products and services.

16

Nrmstrong and 6otler also has similar opinions and found that if people

with a good secure (ob and regular income, tend to buy more e%pensive and

even lu%ury product, where people with less income and less secure (obs tend to

buy cheaper products.

This can be e%pressed in hobbies, shopping, sports social events, food,

fashion, etc.

JTherefore if economic indicators point to a recession, marketers can take

steps to redesign, and reprise and their product closely. *Nrmstrong H 6otler,

=FF;+ The current economic recession is presently a source of concern for

marketers attempt to determine the current buying behaviors of the consumers,

consumers are changing their buying behaviors and greatly decreasing their

overall spending.

The buying habits of consumers have changed a lot since the internet

startedK consumers can now easily check the price of a product without leaving

there home at anytime in any part of the world in order to get the best price.

-arketers have to move with the trends of the consumers and find ways to get

the largest slice of the market than they canK this huge global market has a lot of

competitors.

$inehan and Cadogan highlighted that< even though people have same

(ob, same social class, but their lifestyle may !uite different. Nnd Professor

Nrmstrong and 6otler e%plained that lifestyle is a persongs pattern of living as

17

e%pressed in their psychographic, it covers attitudes of This

life, opinions and is...
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/ver person has a different personality, it relates to their buying behavior.