Consumer Buying Behavior in Pakistan

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ASIANJOURNALOFMANAGEMENTRESEARCHOnlineOpenAccesspublishingplatformforManagementResearchCopyright2010AllrightsreservedIntegratedPublishingassociation

ReviewArticle

ISSN2229 3795

Anexploratorystudyon consumerbuyingbehaviorinPakistaniperspective

1 2 3 MumtazAli ,JingFengjie ,NaveedAkhtarQureshi 1 Researchscholar,PhDMarketingScholar,SchoolofManagement,HuazhongUniversity ofScienceofTechnology,Wuhan,P.RChina 2 ProfessorinMarketing,SchoolofManagement,HuazhongUniversityofScienceof Technology,Wuhan,P.RChina 3 Lecturer,SukkurInstituteofBusinessAdministration,Pakistan

ABSTRACT The mainpurposeofthisstudy istofindoutthereasonswhycustomerbehavingdifferentlyat the time of purchasing goods/services. The factors such as family structure, country of origin, age,culture,andadvertisinghaveanimpactonanindividualswayofthinkingandultimatelyon consumersdecision makingprocess,whereasprice isassociatedtoproduct.Furthermorethis study will provide a detail view of the consumers way of thinking and will investigate the degree of association of five factors i.e. family structure, country of origin, age, culture and advertisingonbuyingbehavior.Theallpreviousstudiesonconsumerbehaviourmainlyfocused on finding out the cultural influence on buying behaviour. But this research will in depth evaluate all those factors such as price, family structure, country of origin, age, culture, and advertisingincontextofPakistaniconsumersbuyingbehavior.Thesefactorshavebeenstudied toagreatextent,butverysmallnumbersofmarketingresearchershaveappliedAHPapproachin context of consumer buying behavior. For this purpose a survey was conducted based on personalinterviewsandfocusgroups.AfterthatAHPAnalyticalHierarchyProcesstechnique hasbeenappliedtoinvestigatetheinteractionofonefactoroveranother.Thesefactorsarealso prioritizedtoseethepriorityofonefactoroveranother.Theresultsofstudyindetailshowthat onlythepriceisafactorassociatedwithproductwhileallremainingfactorshavegreatdegree of association and impact on consumer psychology and ultimately on consumers decision makingprocess. Keywords:AHP,Buyingbehavior,Culture,MCDM,Pakistan 1.Introduction Themainfocusofthisstudyistoknowtheinteractionandimpactofallthesefactorsoverone anotherandthedegreeofassociationwithconsumerbuyingbehavior.Thefactorsconsideredfor this study are price, family structure, country of origin, age, culture, and advertising. Further morethisstudywillmainlyaddresstheissuesrelevanttohowprice,familystructure,countryof origin,age,culture,andadvertisingaffectconsumerpsychologyandpossiblechange in buying behavior. For this purpose AHP Analytical Hierarchy Process which is a multicriteria decision making (MCDM) approach has been applied to identify the interaction of one factor over another. These factors are also prioritized to see the priority of one factor over another. AHPhasbeenwidelyusedbyresearchersandpractitionersinaMCDMwhereyouhaveamulti criteriafordecisionmakingandprioritizingtheallrelevantfactorsunderstudy. ASIAN JOURNAL OF MANAGEMENT RESEARCH 216

AHP, developed by Satty in 1980 (Saaty, 1980), is a simple and feasible multiobjective evaluationmethodwidelyusedformultiobjectevaluationactivities.Itisdesignedforsubjective evaluationofasetofalternativesbasedonmultiplecriteriaorganizedinahierarchicalstructure. Atthetoplevel,thecriteriaareevaluatedandatthelowerlevels,thealternativesareevaluated by each criterion. The decisionmakers assess his evaluation separately for each level and sub levelsubjectively.Bycreatingapairwisecomparisonmatrix,hissubjectiveevaluationforevery pairofitemsisassessed(Dyer,1990).AHPisakindofmulticriteriadecisionmakingtechnique. Incomplexmulticriteriadecisionmaking,AHPisusuallyusedtodealwithadecisionmaking problem with several assessment criteria and in an uncertain situation and can systematize a complexproblembyresolvingtheproblemintoseverallevels,conductingquantitativejudgment, identifying factors needing priority attention and then making a comprehensive assessment, so thatdecisionmakerscanhaveenoughinformationandcontroltheriskindecisionmaking(Saaty, 1980). AHP can solve unstructured problems concerning economy, society and managerial science.Facingaproblem,thedecisionmakershallfirstsetageneralobjective,andthendevelop criteria, subcriteria and criteria at the bottom level. After this step, pair wise comparison is conducted with a scale of 1 to 9 andthen Eigen vectors are workedout as weighted values of criteria and finally the overall priority vector is determined (Kamal, 2001 Lipovetsky and Michael,2002Mohammed,2002). Tosome,consumerbehaviorissynonymouswithmarketing.RobertsonandKassarjian(1991), for example, define consumer behavior as the scientific study of consumer actions in the marketplace(p.vii).However,othersviewconsumerbehaviorasindependentofmarketingor any particular discipline. Jacoby (1976), for example, defined consumer behavior as the acquisition,consumptionanddispositionofgoods,services,timeandideasbydecisionmaking units....(p.1).Arndt(1976)suggestedthatconsumerbehaviorencompassesthetheproblems encounteredbymembersofsocietyintheacquisitionandrealizationoftheirstandardofliving (p. 213). More recently, Holbrook (1995) defined consumer research as the study of consummation in all of its aspects. Holbrook explained, Consummations of one sort or another are what all humans and therefore all consumers seek. Consummationattaining customer value or achieving satisfactionthereby designates the central core of the concept of consumer research (Holbrook, 1995, p. 88). As a field, consumer behavior represents the intellectual meeting ground for investigators from economics, marketing, applied psychology, sociology, anthropology, philosophy, family sciences, and related disciplines. In Pakistan there are four types of price indices Consumer Price Index (CPI), Wholesales Price Index (WPI), Sensitive Price Index (SPI) and GDP Deflator, which are used to calculate inflation. Among theseindicators,themajoremphasisisonCPIasameasureofinflation,whichcovers375items in 71 markets of 35 cities of the country (Economic Survey, 200607). Conventional wisdom holds that the emotional cultural differences between countries will significantly impact on crossnationalbusinessrelationshipsbetweenfirmsfromdifferentcountriesandcultures.Studies from boththe fieldofanthropologyand managementscience haveconcludedthatmosthuman behaviour is mediated by culture (eg, Hofstede, 1984). The psychologists developed the hierarchy of effects model, which proposes that behavior is composed of three dimensions: cognitive,affectiveandconative(LavidgeandSteiner,1961).Thecognitivedimensioninvolves developingawarenessandknowledge,theaffectivecomponentrelatestodevelopingfeelingsand attitudes,andtheconativedimensioninvolvesdevelopmentofconvictionorintentionandactual behaviour,suchaspurchase(LavidgeandSteiner,1961).

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2.LiteratureReview In the marketing literature, individuals with a high need for cognition have been shown to process and evaluate advertising information more thoroughly than those with a low need for cognition.Theytendtobe influenced by messagerelevantthoughtsratherthanperipheralcues such endorse attractiveness (Haugtvedt and Petty, 1992), spokesperson credibility (Petty and Cacioppo,1986),humour(Zhang,1996)orthenumberofargumentspresented(Cacioppoetal., 1983). In an extensive literature review of the subject, Cacioppo et al. (1996) found that individuals with a high need for cognition tended to process information more thoroughly and tendedtoengageinmoreextensiveinformationsearchthanthosewithalowneedforcognition. This suggests that individuals with a high need for cognition might use a wide range of information sources, which reduces their relative preference for interpersonal sources. On the other hand, individuals with a low need for cognition are less motivatedto gather and process extensiverawinformationandaremorelikelytoacceptalreadyprocessedinformationgivento thembytrustedpersonalsources.MurrayandSchlacter(1990)definedperceivedriskasamulti dimensionalconstruct.Itrepresentsconsumersprepurchaseuncertaintyrelatedtothetypeand degreeofexpectedlossresultingfromthepurchaseandtheuseofaproductorservice.Possible loss categories are financial loss, performance loss, psychological loss, social loss and convenience loss (Arndt, 1967b Bansal and Voyer, 2000). Past research has consistently recognized perceived risk as a fundamental concept in consumer information search (Arndt, 1967bChaudhuri,2000MurrayandSchlacter,1990).Arndt,forexample, foundthattocope with the hazards of buying, consumers tend to develop riskhandling strategies. One such strategy . . . would be to seek additional information from a number of sources (1967b: 303). BansalandVoyer(2000)foundanegativeinfluenceofproductexpertiseonperceivedrisk,anda positive influenceofperceivedriskonwordofmouthinformationactively sought.Inaddition, Murray(1991)proposedthatwordof mouthisthe mostimportantsourceof informationwhen thegoalistoreducetheperceivedrisk.Hearguesthatthisisbecausewordofmouthoffersgreat opportunitiesforclarificationandfeedback.Cultureisconsideredasanebulousconstructthatis difficult to define (Triandis et al., 1986) and is positedto be subjectto change over periods of time. This has led to the phenomenon being defined as . . . those beliefs and values that are widelysharedinaspecificsocietyataparticularpointintime(Ralstonetal.,1993)[emphasis added].Cultureisthoughtofasbeinglearned(Hofstede,1984)andismanifestthroughhistory, religion and education which act as strong factorsthat define and shape a nations or societys character and culture (Harris, 1979). Culture is also considered to influence all human activity (Rosaldo,1989,citedinMonaghanandJust,2000).However,onecannothopetoknowallthere isaboutculture.GeertHofstede(1984),theauthorofoneofthemostcitedstudiesofcultureon work values, admits thatthere may be shifts in culture evidentov