Purchase Behaviour Analysis: Perfumes

2913 words (12 pages) Essay

10th Jan 2018 Marketing Reference this

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Ajmal Perfumes is a family owned business, based Dubai, United Arab Emirates. It was founded by the Haji Ajmal Ali in the early 1950’s, in India and has grown from a modest trading house into a multimillion dollar corporate entity. Through 60 years of experience it acquired rich heritage and know how in the intricate art of perfumery and carved a niche for itself in the perfume industry as an innovator in perfume making and a pioneer in the marketing of perfume products to a global clientele (Ajmalperfume.com, 2011).

It is a corporate entity with a vast portfolio of over 300 of the finest and most captivating fragrances and has over 140 exclusive retail outlets across the GCC. Ajmal also has a presence on the international front, currently exporting their exquisite range of products to 30 countries across the world and exclusive presence through select Duty Free locations and Airlines (Ajmalperfume.com, 2011).

(Source: http://www.ajmalperfume.com/our_philosophy-pcident-1)

Statement of the problem

Due to current market conditions, which is highly competitive and dynamically changing, especially in the location of this particular store, Ajmal Perfumes is concerned about the situation around it. Hence this study aims to outline the attributes influencing purchase behaviour Ajmal Perfumes customers.

Objective of the Study

The main objective of this study is concerned in outlining the factors which influence the buying behavior of Ajmal Perfumes customers in their retail store located in Murshid Bazaar, Deira, Dubai, UAE.

Scope and Limitation of the Study

Main limitation of this study was the privacy issue, as the store where data collection was held provided limited access to its customer base and information. Hence the study did not covered the demographics of the respondents, which if used could bring a change in the final results in our opinion.

Also due to limited resources and lack of time the research was limited only to the branch of Murshid Bazaar located in Deira and its results cannot show the situation in other branches of Ajmal Perfumes in UAE.

Significance of the Study

The study of consumers buying behaviour as such is an important aspect, as consumers are the main factor of any successful business. It was observed that the importance of predicting the attributes influencing the consumer purchasing behaviour in retail outlets is important.

This particular study explores the different aspects that have impact on consumers buying behaviour in the retail outlet of Ajmal Perfumes. The results of which can help to take according actions against weak sides of the business, understand and implement the necessary attributes to increase the satisfaction of customers of Ajmal Perfumes.

Definition of Terms

Confidence level. A percentage or decimal value that tells how confident a researcher can be about being correct (Zikmund, 2003).

Descriptive research. A research designed to describe characteristics of a population or a phenomenon (Zikmund, 2003).

Likert scale. A measure of attitudes designed to allow respondents to indicate how strongly they agree or disagree with carefully constructed statements that range from very positive to very negative toward an attitudinal object (Zikmund, 2003).

Population. A group of entities sharing some common set of characteristics (Zikmund, 2003).

Research instrument. A data collection form such as questionnaire or other measuring device (Zikmund, 2003).

Theory. A coherent set of general propositions used to explain the apparent relationships among certain observed phenomena (Zikmund, 2003).

Variable. Anything that may assume different numerical or categorical values (Zikmund, 2003).

Review of Related Literature

Literature review gives a clear display of the related research and or the work which is already done by someone in the similar area of research. This chapter outlines the theories which would help in understanding buying behavior of customers by focusing on the factors influencing it.

Theoretical Literature

The knowledge of consumer shopping behaviour is an important aspect in developing an effective and successful business. Past researches and theories in consumer behaviour compared to the theoretical and empirical work on brand choice behaviour, suggested that consumers are using shopping strategies rather than brand strategies (Darden and Howell, 1987).

Defining shopping behaviour is difficult, because it is a complex and multidimensional concept with several variables. Although the concept shopping orientation is described by researchers from various perspectives, certain major variables are repeated in the different descriptions (Prasad and Aryasri, 2011; Nielsen, 2011). The definitions of shopping orientation reflect a view of shopping as a complex personal, economic, social and recreational phenomenon (Darden and Howell, 1987; Shim and Kotsiopulos, 1993). The behaviour of shoppers differs according to the place where they are shopping and their involvement level with the act of shopping (Berman and Evans, 2005).

Cardoso and Pinto (2010) examined hedonic and utilitarian shopping motivations among Portuguese young adult consumers and identifies seven shopping dimensions: pleasure and gratification shopping, idea shopping, social shopping, role shopping, value shopping, achievement shopping and efficiency related shopping.

Related Studies

Review of the related literature has shown that different researches have stated that customer behavior is influenced by many factors including store image, brand preferences, their budget and etc. Rhee and Bell (2002) stated that shoppers typically have a primary affiliation to a “main store” that captures the majority of their purchases. Taher et al. (1996) and Sirohi et al. (1998) emphasise that it is important for retailers to systematically seek information of the retail patronage experience and then plan to build store loyalty based on augmented services, including their financial implications. Research conducted processing of store attributes by means of which consumers decide which will be their primary store. It is empirically examined that retail store attributes affect store choice and purchases (Leszczyc and Timmermans, 1997).

Store choice and patronage studies have focused on shoppers’ tendency to concentrate on the same store. The existing models share a set of common variables to predict consumer buying behaviour and patronage behaviour. In this section, those previously established patronage models are briefly reviewed, and then the important constructs are compared and discussed to build a conceptual foundation of the study. The first comprehensive model to illustrate the structural relationships among influencing variables of store choice behaviour was introduced by Monroe and Guiltinan (1975). In their preliminary model of store choice, Monroe and Guiltinan (1975) proposed that consumers store patronage behaviour in changing context is explained by sequential effects of different constructs: shoppers characteristics, strategies for planning and budgeting, importance of store attributes and perception of stores. Finally, the researcher recommended separation of store perceptions and attributes importance, because of the relative endurance and generality of the store perception compared to the importance of store attributes. They additionally suggested the importance of experience with a store in the formation of store choice strategies (Laaksonen, 1993; Monroe and Guiltinan, 1975).

Monroe and Guiltinan’s (1975) retail patronage model was refined by Darden and Howell (1987) who emphasized the importance of enduring and stable shopping orientation determining a shoppers store choice. Darden et al. (1980) developed the patronage model of consumer behavior, which gave a comprehensive picture of patronage behaviour. Terminal values, lifestyles, social class, and family were antecedents to shopping orientations. These antecedents with media habits and instrumental values also affected store attributes importance and the evoked store set. The second part of the model was triggered by stimuli that set needs queue in motion and started the information search that led to the evoked store sort. The evoked store set then influenced store attribute importance leading to patronage intentions and patronage behaviour.

Schematic Diagram

The following diagram shows that product attribute is independent variable, where the purchase behaviour is dependent variable.

Attribute

Purchase behavior

Synthesis

When the employees of an organization are facing stressors situations than this will be affecting their job involvement and pushing the organization to the lower level of the productivity. The job involvement is linked to the importance of the work in individual’s routine life, which means that if one is giving importance to his/her work certainly he/she is being loyal to his/her work as well as to the organization itself.

Effects of employee stress on the job involvement according to the researcher and theorist in the review of related literature has given the picture that stress is affecting the job involvement that causes low efficiency, low productivity, low interest in working, lack of concern for the colleagues and loss of the responsibility, which is slowly pushing organization to the track of loss.

Research Methodology

Research methodology is a discussion within the body of a research report of the research design, data collection methods, sampling techniques, fieldwork procedures, and data analysis efforts (Zikmund, 2003).

Research Design

Research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information. It is a framework or blueprint that plans the action for the research project. The objectives of the study determined during the early stages of the research are included in the design to ensure that the information collected is appropriate for solving the problem. The researcher must also specify the sources of information, the research method or technique (survey or experiment), the sampling methodology, and the schedule and cost of the research (Zikmund, 2003).

This particular study was based on descriptive research design, focused on describing the characteristics of customer attributes on purchasing behaviour. It used both primary data and secondary data. After the data was gathered, it was coded (Table 2 and 3, Appendix, Page 8) summarized and conclusions were made according to the final results of the study.

Respondent of the Study

The population for this study was the customers from one of the retail outlets of Ajmal Perfumes mentioned above. For data collection purposes, the intercept technique was used on population elements which had purchased items from the shop and leaving it at a day of data collection.

Data was collected using a questionnaire and 64 customers were surveyed, where 14 customers refused to take a part in the survey. Out of those 64 questionnaires 53 were valid, 11 respondents did not completed the questionnaire.

Research Instrument

In order to determine the factors affecting buying behavior of customers, the researcher used a questionnaire with questions in prearranged order and Likert scale. The questionnaires were given to the customers of Ajmal Perfumes Murshid Bazaar branch located in Deira, Dubai.

Validity of the Research Instrument

Validity is the accuracy of a measure or the extent to which a score truthfully represents a concept (Zikmund, 2010). Since the researcher has used a questionnaire which has already been used by proper scientific research study (References, Page 6) the survey did not required a validation. But the questionnaire content has been examined for reliability before the actual survey process and was found usable.

Data Collection Procedure

The data for this study was collected through primary and secondary sources. The primary data for this research design was gathered by distributing questionnaires among the customers of Ajmal Perfumes Murshid Bazaar branch located in Deira, Dubai. The secondary sources of data were theoretical books, research articles, and related research studies.

Statistical Tool Analysis

The study used statistics in order to analyze the gathered data by using the percentage in order to determine the magnitude of the responses to the questionnaire. The data was coded (Table 2 and 3, Appendix, Page 10) and the appropriate data analytic techniques were used to find out the attributes of the purchasing behavior of store’s customers.

Descriptive study is undertaken for the purpose to determine and be able to describe the characteristics of the variables of the interest in a situation (Uma Sekaran, 2006).

Analysis and Interpretation of data

From Table 1 (Appendix, Page 8) and Figure 1 (Appendix, Page 8) which illustrates the outcomes of the study, we can see that the overall results of the study were neutral in general. There was no specific peak in any of the attributes given in the questionnaire.

The means for the question 2, question 1, and question 3 with attributes of low price of the products, advertisement of production, and convenient location of the store had the highest means in between 3.32 to 3.21 from overall results.

The means for the question 7, question 9, question 4, and question 5 with attributes of credit facility for purchasing our production, recognition of our brand, wide assortments availability and promotional offers by our store were the follow up with the means in between 3.04 to 3.00 from the overall results.

The means for the question 10, question 8, and question 6 with attributes of trust on our brand and our production, attractive image of the store, and easy return policy were the lowest with the means in between 2.92 to 2.53 from the overall results.

Findings, Conclusions and Recommendations

The results of this study shows that the customers rate the attributes almost equally, as the results show the neutral position in almost all the questions, with a small lead in the question 2, question 1 and question 3 accordingly.

Conclusions

According to the results of the study, we can state that the store’s consumers buying behaviour is mostly influenced by the attributes like low price, advertisement and convenient location of the retail outlet of Ajmal Perfumes.

Recommendations

The recommendations out of this particular study for the managers which concerned at discovering the buying behaviour of consumers would be the following. It is suggested that organise retailers should exercise caution in serving the needs, wants and preferences of potential and existing consumers in order to acquire and retain.

The result of the present study will help managers streamline their thoughts to the factors affecting apparel buying behaviour of the consumers before marketing their offerings through organized retail outlets, because the attributes affecting the buying behaviour still remains unknown in most of the cases.

References

Ajmal Perfumes, Company Profile. Web, 2011 .

Berman B, Evans J (2005). Retail Management: A Strategic Approach, Pearson Education, Asia, Singapore.

Cardoso PR, Pinto SC. Hedonic and utilitarian shopping motivations among Portuguese young adult consumers, Intl journal of retail, 2010.

Darden WR, Howell RD. Socialization effects of retail work experience on shopping orientations, J. Acad., 1987. Mark.

Leszczyc Peter TLP, Timmermans HJ. Store Switching Behaviour, Marketing Letters, 1997.

Monroe KB, Guiltinan JP. A path analytic exploration of retail store patronage influences. Journal of Cons, 1975.

Nielsen AC. India’s affluent consumers prefer larger pack sizes to combat inflation, 2011. http://in.nielsen.com/news/20111010.shtml.

Prasad Ch. JS, Aryasri AR. Effect of shopper attributes on retail format choice behaviour for food and grocery retailing in India, Intl journal of retail, 2011.

Prasad Y. Ramakrishna. A study on attributes influencing the purchasing behaviour of apparel consumers in organized outlets. African Journal of Business Management Vol.6 (45), 2012.

Rhee H, Bell DR. The inter store mobility of supermarket shoppers, Intl journal of retail, 2002.

Taher A, Leigh TW, French WA. Augmented retail services: the lifetime value of affection, Intl Journal of Bus. Res, 1996.

Uma Sekaran. Research Methods for Business, 4th Edition. John Wiley & Sons Inc, New York, 2003.

William G. Zikmund, Barry J. Babin, Jon C. Carr, Mitch Griffin. Business Research Methods, 8th Edition. South Western Centage Learning, 2010. ISBN-13: 978-1-4390-8070-2.

William G. Zikmund. Business Research Methods, 7th Edition. South Western Educational Publishing, Canada, 2003. ISBN-13: 978-8131500293

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