Research Methodology – MBA 333

CIA 3

Title:

The correlation between the analysis of Worry Of Missing out (WOM) and
the purchase decision among the students at koramangala.

UNDER THE GUIDANCE OF

Dr.Malini Nair

SUBMITTED BY

GUGAN ELANGOVAN 1928614

KARTHIK RAJA 1928615
MANPREET 1928618
PALASH 1928620
SIDDHARTH 1928623
SARANYA D 1928630
Topic

The subject of interest in this report describes the field of experiential marketing. This
area is relatively new and not much research has been done in this domain. Therefore,
this field of study has a very broad scope for research.

Title

The following research title has been proposed after understanding and researching about
the field of experiential marketing.

The correlation between the analysis of Worry Of Missing out (WOM) and the purchase
decision among the students at koramangala.

Abstract

Experiential marketing is a relatively unexplored and upcoming area of marketing and its
main aim is to enhance the buyers experience with the help of a product/service. When
the buyers are provided with a better experience and services, they tend to form an idea
of the brand and try to look for the same brand. Since this is a new area among the
researchers, there are a lot of unexplored topics. Due to which, the academic explorers
have a wider scope of conducting future studies in this area. This also provides a different
perspective for the industries and organisations to help enhance their productivity and
effectiveness. The focus in this report is directed to the very specific part of this field,
particularly, the worry of missing out on a particular experience, this anxiety makes a
customer stick to one brand. There has not been much research conducted on the
connection between the worry of missing out and buying decisions among the corporate
employees. This report works on the ways to relate the existing knowledge base of the
worry of missing out for the specific group. From the recent publications done by
researchers in this area, this behaviour has been analysed from an Asian perspective. This
opens a great amount of scope for research in the respective area from an Indian
viewpoint. We anticipate that this report contributes significantly to the worry of missing
out (WOM) phenomena. Additionally, the major focus of this report will be towards the
Indian marketplace to help them improve their perspectives from the proceedings of this
study.

Introduction:
The basic idea of our research lies in finding the main reasons that leads the customers to

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shift from one particular restaurant to another. Using the reasons / problems that we
have identified, we will be able to guide the restaurants in the right way to keep their
valuable customers intact. Thus the methods discussed in the report reduce the worry of
missing out factor of the restaurant to a great extent. The methods and the techniques
that we have implemented in order to achieve the goal are explained clearly in this
research.
Literature Review

This proposal acts as a means in facilitating the connection between psychological WOM
and behavioural WOM. We were also able to find that the correlation between
psychological WOM and behavioural WOM is assertive and social media facilitates this
connection as the requirement and demand increases.

The significant contribution of this study is that the majority of findings have been
regarding WOM. The paper affirms that it can also be externally. The paper provides an
idea as to how to externally prepare the buyers to make correct decisions.

The author was able to assess the frequency of such a phenomenon and the feasible
outcomes of WOM based on the situation. The study aims to form a context based
situation where WOM takes place. The study focuses on a specific section of WOM and
the way it is looked at in certain conditions.

The central idea of this paper shows how the WOM affects the interpersonal stress of
female college students resulting in a deprivation of sleep. The author was able to explain
comprehensively as to how the WOM leads to changes in the behaviour of an individual.
This is a very significant fact since it shows that, in case WOM is induced into a person,
they can be influenced to change their behaviour economically.

Objectives

The following objectives have been formulated based on the findings from the paper:

● The WOM affects the purchase decision of college students at koramangala.

● As the feeling of WOM increases, the students at koramangala tend to make more
spontaneous purchase decisions.

Research Design

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Participants and Procedure

The Participants of this study include the students who regularly dine at various
restaurants in the Koramangala.This data provides an effective platform for analysing and
formulating the test results for WOM phenomena based on the promotions provided to
the customers(students).

The ways that the study will be implemented has the following steps:

Step 1

In Step 1, a set of customers(students) are keenly monitored by the restaurant manager

and waiters. Based on the inferences and observations noted by them, the theory is
formed.

Step 2

An online form is presented to every new customer in order to evaluate how or why they
made the particular purchase decision and the ways in which their external factors (in this
case the items of the day and menu) influenced their decision.

Based on the relation of data collected from the inferences and the forms, the data’s
reliability and validity is determined and is sent for further analysis.

Statistical Tools

Linear Regression, Person’s Coefficient of Correlation, Factor Analysis and Discriminant

Analysis are used as statistical tools in this study. The respective tools are used in order to
correlate the variables that are relevant in this study. Parallel, descriptive statistics is used
in order to have a better clarity on responses received from the forms and inferences.

DEPENDENT AND INDEPENDENT VARIABLES :

Dependent : Satisfied (Satisfaction of customer).

Independent : Old ,Gender ,J1,F1,R1,Empire,Roots,Krishan,Leon, Anjappar, Pearl, Media,

Ad, Location, Friends, Family, Compare, Times, Switch, Sl, Paymore, Style, Todayspecial,
First_time, Recom, Visit_again.

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Method of Survey:

Since our discussion is about the correlation between worry of missing out and the shift in
purchase decision among students, we wanted so many responses to arrive at a
conclusion. We as a group went to so many restaurants in Koramangala and had a
discussion with the manager to know about their customers. Nearly after meeting 30
managers in various restaurants we arrived at 6 restaurants (Empire, Roots, Sree Krishna
Kafe, Leon Grill, Anjappar, China Pearl), where the main customers are students / work
professionals. We prepared the right questionnaire only after we became very specific
about our target group to consider the consumer's purchase decision.

Step by Step process:

Methods Used:

● Regression
● Correlation

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 ● Factor Analysis
● Discriminant

The detailed explanation of methods can be found in Appendix 1.

Result:
Regression Analysis:

⮚ The fit of the model is R square. According to the model created R square is 0.764.
Therefore it is 76.4% of the data fit the proposed model.
⮚ Durbin Watson is the measure of autocorrelation of the data. According to the
model Durbin Watson is 2.205, so it is no autocorrelation.

Anova (To measure the fit)

H0: The model is not in good fit.

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H1: The model is in good fit.

The calculated value of F is 2.112 and the table value of F is 1.87.

The calculated value of F is greater than the table value of F so we reject the null
hypothesis.

Coefficients:

Regression Equation:

(constant) - The calculated value of T is .569 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

old - The calculated value of T is 1.568 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

gender - The calculated value of T is -1.664 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

j1 - The calculated value of T is -2.862 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

f1 - The calculated value of T is 2.683 and the table value of T is 1.684.

The calculated value of T is greater than the table value of T so we reject the null
hypothesis.

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r1 - The calculated value of T is .524 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

empire - The calculated value of T is -1.161 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

roots - The calculated value of T is .724 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

Krishna - The calculated value of T is .463 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

leon - The calculated value of T is -1.299 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

anjappar - The calculated value of T is -1.188 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

pearl - The calculated value of T is -1.940 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

media - The calculated value of T is 1.388 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

ad - The calculated value of T is -1.571 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

location - The calculated value of T is 2.141 and the table value of T is 1.684.

The calculated value of T is greater than the table value of T so we reject the null
hypothesis.

friends - The calculated value of T is .891 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

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family - The calculated value of T is -.526 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

compare - The calculated value of T is 2.159 and the table value of T is 1.684.

The calculated value of T is greater than the table value of T so we reject the null
hypothesis.

times - The calculated value of T is -.523 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

switch - The calculated value of T is .537 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

sl - The calculated value of T is 1.924 and the table value of T is 1.684.

The calculated value of T is greater than the table value of T so we reject the null
hypothesis.

paymore - The calculated value of T is -1.450 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

style - The calculated value of T is -2.041 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

todayspecial - The calculated value of T is .058 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

first_time - The calculated value of T is 1.188 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

recom - The calculated value of T is 1.272 and the table value of T is 1.684.

The calculated value of T is less than the table value of T so we accept the null hypothesis.

visit_again - The calculated value of T is 1.383 and the table value of T is 1.684.

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The calculated value of T is less than the table value of T so we accept the null hypothesis.

Collinearity Statistics:

The Variance Inflation Factor (VIF) value of all variables other than Krishna is less than 10,
so there is no multicollinearity. Krishna has 10.497 so there is a multi-collinearity.

Heteroskedasticity:

According to the histogram, the graph is normally skewed, so there is no

heteroskedasticity.

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According to the Normal P-P Plot of Regression, the graph is normally distributed, so there
is no heteroskedasticity.

Correlation Analysis:

Empire and satisfied variables are positively correlated with value 0.132.

roots and satisfied variables are positively correlated with value 0.258.

krishna and satisfied variables are negatively correlated with value -0.194.

leon and satisfied variables are negatively correlated with value -0.064.

anjappar and satisfied variables are negatively correlated with value -0.239.

pearl and satisfied variables are negatively correlated with value -0.194.

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Factor Analysis (Grouping together of items to create a new variable):

Both KMO & Bartlett’s test of Sphericity is used to check whether we can proceed with
factor analysis, the threshold value of KMO that indicates we cannot proceed with factor
analysis because it is less than 0.5(table value of KMO is 0.358).

H0: The data is not adequate to conduct factor analysis.

H1: The data is adequate to conduct factor analysis.

Chi-square:

The calculated value of chi-square is 514.524 and the table value of chi-square is
1098.5208.

The calculated value of chi-square is lesser than the table value of chi-square so we accept
the null hypothesis.

Total Variance Explained:

The values of the first 11 variables are greater than 1, so we extract the variables and
reject the other remaining variables.

Rotated Component Matrix:

The values of the variables are greater than 0.5 are selected and the other variables are
rejected.

1. In column 1, we select Krishna, r1 and pearl.

2. In column 2, we select old, leon and family.
3. In column 3, we select media and ad.
4. In column 4, we select j1.
5. In column 5, we select style.
6. In column 6, we select empire and compare.
7. In column 7, we select sl.
8. In column 8, we select f1.
9. In column 9, we select satisfied.
10. In column 10, we select friends.

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Discriminant Analysis:

Box’s M Test

H0: There is no discriminance between restaurant and customer.

H1: There is discriminance between restaurant and customer.

No test can be performed with fewer than two non-singular group covariance matrices.

Wilks’ Lambda

Wilks ' lambda is a test statistically used in multivariate variance analysis (MANOVA) to ch
eck 

whether a combination of dependent variables indicates variations between the means of 
specified groups of subjects.

The lower the Wilks ' lambda, the higher the discriminatory power of the variable will be
near 0,so according to our model the values in the test of functions are near 0 and only 4
is near 1, so 4 is lower in the discriminatory power of the variable.

Conclusion:

According to the analysis performed in this report 76.4% of the data is in good fit and
there is no autocorrelation. We have also verified the data using the Anova test and the
results proved that the data is in good fit. All Restaurants other than Krishna have no
multicollinearity and heteroskedasticity according to the graphs. Empire and Roots are

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positively correlated according to the correlation analysis. So we conclude that most of
the customers(students) are satisfied with Empire and Roots. So the managers of other
restaurants are worried about missing out on the customers(students).

References:

1. Russo, V. E. (2019). Correlations of The Fear of Missing Out &. ProQuest.

2. Mark Saffran, N. H. (2018). Fear of missing out: prevalence, dynamics, and
Consequences. ProQuest, 725-737.
3. Cheryl L. Buff, S. A. (n.d.). Fear of Missing Out: Understanding Construct and
Measures.
4. Zhang, Z. (2018). Fear of Missing Out: Scale Development and Impact On.
ProQuest.

Appendix 1:

Regression:

What is Regression Analysis:

Regression analysis is a valid method for determining which factors influence a topic of
interest. The regression process allows you to decide easily which factors matter most,
which factors can be overlooked, and how those factors influence each other.

In order to fully understand the regression analysis, the following terms are essential:

● Dependent Variable: The key thing you're trying to understand or predict is this.
● Independent Variables: These are variables you believe would affect the
dependent variable.

How does regression analysis work?

To perform a regression analysis, you will need to identify a dependent variable affected
by one or more independent variables that you hypothesize would.

You would then need to establish a reliable dataset from which to operate. Managing
surveys of interest to your audiences is a terrific way to set up this dataset. Your sample
should include questions that address all the independent variables that are of interest to

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you.

Correlation:

The correlation concept was first accredited to Sir Charles Galton, a cousin of Charles
Darwin, in the 1880’s. Galton spent many years researching patterns related to human
physical

characteristics, and what behaviours they could predict. He was able to apply a
mathematical framework to his findings by later introducing the principle of regression
which could prove or disprove relations between them. And he came up with an
explanation

What is Correlation:

The presence of a relationship between two or more variables or causes in which

dependency exists in a way that cannot be due solely to chance.

How does Correlation analysis work?

Correlation analysis is used to measure to what degree two factors are connected to.
Using the correlation model, you calculate the coefficient of correlation which tells you
how much one variable change when the other one changes. Correlation analysis
gives you a linear relation between two variables.

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Factor Analysis:

What is Factor Analysis:

Factor analysis is a means of condensing data into just a few variables in many variables. It
is also called "dimension reduction" for this purpose. You will divide the data's
"dimensions" into one or more "super-variables." The most common method is known as
the Principal Component Analysis (PCA).

How does Factor Analysis work?

● Step 1: Selecting and Measuring a set of variables in a given domain

● Step 2: Data screening in order to prepare the correlation matrix

● Step 3: Factor Extraction

● Step 4: Factor Rotation to increase interpretability

● Step 5: Interpretation

● Further Steps: Validation and Reliability of the measures

Discriminant:

What is Discriminant Analysis:

Discriminant Analysis is a mathematical method aimed at determining the adequacy of a

classification, provided the group memberships; or assigning items among several groups
to one category. Those group assignments should be identified beforehand for any kind of
discriminant Analysis. Discriminant Analysis is very similar to being a graphical version of
MANOVA and is often used to supplement Cluster Research results and Principal
Components Analysis findings. When using Discriminant Analysis to distinguish two
classes, it is called Discriminant Function

Analysis (DFA); Canonical Variety Analysis (CVA) approach is used when there are more
than two categories.

How does Factor Discriminant analysis work?

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 ● Step 1: Computing the d-dimensional mean vectors

● Step 2: Computing the Scatter Matrices

✔ 2.1 Within-class scatter matrix SWSW

✔ 2.2 Between-class scatter matrix SBSB

● Step 3: Solving the generalized eigenvalue problem for the matrix SW^ (-1) * SB

✔ Checking the eigenvector-eigenvalue calculation

● Step 4: Selecting linear discriminants for the new feature subspace

✔ 4.1. Sorting the eigenvectors by decreasing eigenvalues

✔ 4.2. Choosing k eigenvectors with the largest eigenvalues

● Step 5: Transforming the samples onto the new subspace

Appendix 2:

VARIABLES DESCRIPTION

old Age of the customers(students)

gender Gender of the customers(students)

j1 Current job of the

customers(students)

f1 frequency of having food in the

restaurant

r1 preferred person to be accompanied

in the restaurant

empire Name of the restaurant 1

roots Name of the restaurant 2

krishna Name of the restaurant 3

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leon Name of the restaurant 4

anjappar Name of the restaurant 5

pearl Name of the restaurant 6

media the media which advertised the

restaurant to the customer

ad the media which advertised the

restaurant to the customer

location the media which advertised the

restaurant to the customer

friends the media which advertised the

restaurant to the customer

family the media which advertised the

restaurant to the customer

compare rating of Empire with respect to

other restaurants

satisfied satisfaction of the customer with the

restaurant service

times number of times visited

switch chances of switching to a different

restaurant with same price and
menu

sl chances of switching to a different

restaurant with same menu at a
lower price

paymore chances of paying a higher price if

the quality of the food is better

style choice of the restaurant based on

the style of the menu

todayspecial influence of “today’s special board”

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 at the restaurant while placing order

recom chances of recommending the

restaurant to others if the customer
dislikes it

visit_again chances of revisiting the restaurant

after the positive feedback from
peers.

Appendix 3:

The data after being acquired was undergone various analysis and tools under SPSS. The
generic format of the data that was displayed in SPSS looked like:

This is only a part of the data that is being displayed in SPSS and using this data on SPSS

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there were many kinds of statistical tests performed that could help us in understanding
our problem and to come to a conclusion.

The analysis that was done on this data, few of which are displayed in forms of graphs and
tables as shown below:

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