Consumer Buying Behaviour for High Involvement Products -A Study
Dr. G. K. Deshmukh1*, Dr. R. P. Das2
1Senior
Assistant Professor, Institute of Management, Pt. Ravi Shankar Shukla
University, Raipur (C.G.)
2Professor,
Director and Dean, Institute of Management, Pt. Ravi Shankar Shukla University,
Raipur (C.G.)
*Corresponding Author E-mail: gkd16@yahoo.co.in
ABSTRACT:
In a globalised economy, markets are characterized
by competition. The fast innovations of technologies are intensifying the
intensity of competition and is becoming challenge for every business. In the
past few years, due to competition, continuously company margins are
considerably declining. According to Philip Kotler
(2003), in hyper competition, power is clearly shifting to consumers who are
increasingly telling what product features they want, what communication they
will tolerate, what incentives they expect and what price they will pay. It is
high time for marketers to study, understand and predict consumer behaviour in
order to survive, sustain and grow in this highly competitive and volatile
market. In fact, consumer behaviour is the process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods and services
(Walter and Paul, 1970). As a field of study, consumer behaviour focuses upon
consumer activities (Blackwell, Miniard, Engel,
2001). Moreover, the scholars of human behaviour are highly concerned to study
the consumer behaviour in order to gain deeper insights into why individuals
are involved in certain consumption
related behaviour and interested to know what internal and external factors
influences them in their consumption
related decisions. Zikmund (2001) is of
opinion that human behavior of any kind (B) is a function (f) of the
interaction between the person (P) and the environment (E)–that is B= f (P,E).
According to Zikmund, consumer behaviour is the
function of personal factors (age and stages of life cycle, occupation,
economic situation, life style, personality, psychology etc.) and environmental
factors (culture, subculture, social class, reference groups, family, role and
status).
Social class as a factor influencing
consumer buying behavior has been studied by many researchers both in India and
abroad. In an earlier study Warner and Paul (1941) have identified that
different social classes display different purchase goals and shopping behaviours. Warner (1949) found from his study that buying
habits of lower class persons are profoundly different from middle class
persons. What each person buys and where he purchases, is symbolic as well as
has economic values. Martineau (1958) found from his study that the individual’s
consumption pattern actually symbolises his class
position. Social class is often more significant determinant of his buying
behaviour than income. Kahl (1957) found from his
study that kinds of things a person will buy or will not buy are strongly
related to his class membership.
Vidich and Bensman (1960) found that lower class
people prefer to spend their money on immediate needs and fancies. Brown, Gray
and Korgaonkar (1992) found role of consumer’s social
class while making purchases via electronic shopping.
It is found that consumers from the higher
social classes show progressively less interest in electronic shopping as their
income and status increase in comparison to lower social class consumers. Thus,
though there exist many more studies both in India and abroad with respect to
the impact of internal and external factors separately or together
influencing consumers buying behavior
but a study on how social classes as an external determinant determines
consumer buying behavior especially for High Involvement Products (HIPS), in
the state of Chhattisgarh is conspicuously scanty. Hence the present study is a
modest attempt to investigate the impact of social factors on consumer buying
behavior.
OBJECTIVES OF THE STUDY:
Following were the objectives of the study:
(1) To investigate the impact
of social class as one of the factor influencing consumer buying
behaviour in selected High Involvement Products (HIPS) in large industrial
cities of Chhattisgarh; and
(2) To examine whether consumer buying behavior for selected High
Involvement Products (HIPS) differs across different social classes.
METHODOLOGY:
The study is based on primary data. Data was collected from the
two industrial cities in Chhattisgarh. The sampling for the study was done at
two stages. In the first stage, two major industrial cities viz., Raipur and Bhilai were purposively selected and in the second stage,
150 respondents from each industrial city (which together constitute 300) were
randomly selected on the basis of their car ownership. All respondents were
categorized into different social classes on the basis of a standardized social
class scale. For this purpose, Kuppuswamy’s (1962)
“Socio-Economic Status Scale” (urban) was used for measurement of different
social class. In fact Kuppuswamy developed and
standardized the scale, using three variables namely education, occupation and
monthly income. In present study, education, occupations were considered as it
is but the third variable income was considered with little modification. In
fact monthly income was replaced with annual family income. Then these three
variables (education, occupation and annual family income) were combined with
the variables of possessions from scale developed by Jalota
and others. The modifications were done due to a substantial changes have taken
place in the income and possession of people in the society in the last six
decades. The changes were made in the possessions so as to include most common
items of the present time. The total score of each respondent in the sample was
calculated on the basis of weightages assigned to
education, occupation, annual family income, and possessions. In case of
possessions, if an individual possessed two items, the weightage
for that was doubled. Accordingly the entire respondents were categorized in to
three social classes such as upper class, middle class and lower class. The
data collected through questionnaire was analysed
with the help of percentages. There are several consumer durable products. For
the purpose of this study car, computer, refrigerator and washing machines were
chosen with a view to the fact that these products have become a necessicity today.
Findings of the Study
Following were the major findings of the study:
I. Source of Information
It is shown in the Table1 that for buying cars first source of
information for majority of respondents in Bhilai was
“dealer display at showroom” (24%), it was “television” (26.6%) in Raipur city.
While the most important source of information for majority of respondents for
buying computesr in Bhilai
was “magazine” (31.3%); in Raipur it was “newspaper” (28%). Interestingly for
buying refrigerators, first source of information of majority of respondents in
both
Table 1: Source of Information for Buying HIPS
|
Products |
Bhilai |
Raipur |
|
Car |
Dealer display at showroom
(24%) |
Television
(26.6%) |
|
Computer |
Magazine
(31.3%) |
Newspaper
(28%) |
|
Refrigerator |
Television
(23.4%) |
Television
(36.7%) |
|
Washing Machine |
Television
(22%) |
Television
(35.4%) |
Bhilai and Raipur was “television” (23.4% and 36.7%, respectively). Even
for buying washing machines as for majority of respondents both in Bhilai and Raipur was “television” (22% and 35.4%,
respectively) emerged to be the first source of information. The similarity of sources of information for
buying the refrigerator and washing machine is television could be due to the
fact these products are being used by women for their day to day needs and
spouses of majority of the respondent’s are
housewives, therefore, television emerged to be the major source of information
for buying these HIPS, which could be used by marketers to advertise their
products.
II. Time taken to Think and Buy HIPS
Table 2 shows that majority of the respondents in the study in
both city belong to middle social class 68% in Bhilai
and 68.75% in Raipur. While it was followed by upper social class 20.7% in Bhilai and only 10% in Raipur. In the sample, in Raipur
21.3% belong to lower social class and in Bhilai it
was 11.3%. While the similarity in middle class respondents in both the city
could be attributed to the fact that these respondents could be employed and
their income and spending habits are almost similar, but the difference in
upper social class in both the city could due to that, Bhilai
being industrial city some of the respondents being senior executives in Bhilai Steel Plant have higher income.
Table 2: Time taken to think and buy HIPS
|
Products |
Bhilai |
Raipur |
||||
|
Upper
Class |
Middle
Class |
Lower
Class |
Upper
Class |
Middle
Class |
Lower
Class |
|
|
Car |
Less than
1 Week (51.6%) |
Immediate
Decision (45.1%) |
Less than
1 week (29.4%) |
15 Days (53.3%) |
1 Month
(36.9%) |
More than
1 Month (40.6%) |
|
Computer |
Immediate
Decision (38.7%) |
Immediate
Decision (49%) |
15 Days
(41.2%) |
ImmediateDecision (53.3%) |
Less than
1 week (32%) |
Less than
1 week (28.1%) |
|
Refrigerator |
Immediate
Decision (58.1%) |
Immediate
Decision (52.9%) |
Immediate Decision
(35.3%) |
Immediate
Decision (60%) |
Less than
1week (38.8%) |
Less than
1 week (37.5%) |
|
Washing Machine |
Immediate Decision
(71%) |
Immediate Decision
(60.8%) |
Immediate
Decision (47.1%) |
Immediate
Decision (60%) |
Less than
1week (48.5%) |
Less than
1 week (37.5%) |
It is shown in Table 2 that think and buy cars, within upper
social class, in Bhilai industrial city majority
(51.6%) took “less than a week” time; whereas majority (53.3%) of their
counterparts in Raipur took “fifteen days.” The difference in think and buy
upper class respondents of both the city, which could be due to the fact that Bhilai is essentially an industrial town, where majority of
the respondents are BSP employees and have loan facility both from bank and
their company to buy the cars whereas their counterparts at Raipur take little
more time because they could be staying with their parents and other family
members are employed in government offices where taking immediate decision is
probably difficult.
Interestingly within middle social class, in order to purchase
cars, in Bhilai industrial city majority (45.1%) took
‘immediate decision” because more than one members are earning due to which
they have surplus fund in their hands after family needs, whereas in Raipur
their majority (36.9%) counterparts took
“one month time” as number of sampled respondents could be more in comparison
to Bhilai.
Further within lower social class, in order to purchase cars, in Bhilai industrial town majority (29.4%) took “less than a
week,” in Raipur their majority (40.6%) counterparts took “more than one month
time.” The difference across lower social class within two industrial towns
could be due to the difference in their income, education, social and family
responsibility and availability of fund to buy the cars. Findings of the study
gives a clear indication to marketers of car companies and financial
institutions to adopt different strategies and tactics to deal with the buyers
belonging these two industrial cities.
In order to purchase computers, within upper social class, in both
the cities majority (38.7%) in Bhilai and (53.3%) in
Raipur took “immediate decision.” The existence of similarity in upper class in
both the towns could be due to the fact computer is relatively less costly in
comparison to car and it is useful for their children’s exposure to computer
and they want to provide them without giving much time to buy it.
However, ther was little difference
within middle social class in both the cities. In Bhilai
majority (49%) took “immediate decision,” whereas majority (32%) of their
counterparts in Raipur took “less than a week” time, which could be due to gap
in income, education, occupation and other differences prevailing which might
be in both the towns particularly for people belonging to this social class.
In order to purchase refrigerators, within upper social class,
both in Bhilai and Raipur industrial city immediate
decision were taken by majority of the respondents (58.1%) in Bhilai and 60% in Raipur city. Counterparts. The existence
of similarity in upper social class in both the industrial towns could be due
to the fact that refrigerators has become a
necessity and a variety of models with relatively lower price, better
size, shape are available in the market. So people belonging to upper class
having affordable income are taking immediate decision to buy refrigerator,
without wasting time to buy this High Involvement Product (HIP). However, there
was slight difference in middle class people in both the industrial city to
purchase to purchase refrigerators. While in Bhilai
majority (52.9%) took “immediate decision,” in Raipur majority (38.8%) of the
respondents took “less than a week” time, which could be due to difference in
their income, occupation and priority of people for refrigerator in comparison
to other household goods. Interestingly to purchase refrigerators, within lower
social class in Bhilai industrial city majority
(35.3%) took “immediate decision,” like upper class whereas in Raipur their
majority (37.5%) counterparts took “less than a week” time. The difference
across lower social class within two industrial towns could be due to the
difference in their income, social and family responsibility, and some time
bank loan taken by the industrial buyers to buy this type of HIP.
For buying washing machines within upper social class, in Bhilai and Raipur, majority (71% and 60%, respectively) of
the respondents took “immediate decision” to think and buy washing machines.
The similarity in upper class in both the industrial towns could be due to the
fact that washing machine though a High Involvement Product (HIP) has become a
necessity today and is available at a very affordable price, which does not
require to spend more time to take decision for people of higher social class
because of their income and other factors. However in case of middle class in Bhilai majority (60.8%) took “immediate decision,” in
Raipur majority (48.5%) took “less than a week” time. This difference could be
due to difference in income, occupation of spouse and other socio-cultural
differences prevailing in both the towns. Similarly was the trend in case of
lower social class to purchase washing machines in both the city due to similar
reasons.
III. Major Influencers to buy HIPS
Table 3 reveals that major influencers, to purchase cars. In upper
social class, both in Bhilai, and Raipur was “my own
decision” (74.2% and 46.7%, respectively). The existence of similarity in upper
class respondents of both the towns could be due to the fact that in upper
social class the family besides affordable income to buy the car, it has become
a necessity today. The cars are purchased through loan financed by the company
or banks. So the individuals in this class may not be consulting others while buying
their cars. Whereas within the majority of the middle social class respondents,
major influencers in Bhilai was (54.9%) “my own
decision” to purchase cars, and incase of their counterparts in Raipur it was
“father” (35%). This could be due to fact that in Bhilai
majority of the people are staying away from their parents, so in order to meet
their day to day needs, and keeping in mind social and official status buy a
car they are taking their own decision, whereas their counter parts in Raipur
are consulting their “father” because majority of them could be staying with
their parents, which supports findings of an earlier study by Verma (1982).
Table 3: Major influencers to buy HIPS
|
Products |
Bhilai |
Raipur |
||||
|
Upper
Class |
Middle
Class |
Lower
Class |
Upper
Class |
Middle
Class |
Lower
Class |
|
|
Car |
My own
Decision (74.2%) |
My own
Decision (54.9%) |
Father
(41.2%) |
My own
Decision (46.7%) |
Father
(35%) |
Father
(37.5%) |
|
Computer |
My own
Decision (41.9%) |
Children
(46.1%) |
Children
(23.5%) |
My own
Decision (33.3%) |
My own
Decision (28.2%) |
Children
and My own Decision (62.6%) |
|
Refrigerator |
Wife
(54.8%) |
Wife
(70.6%) |
Wife
(47.1%) |
Wife
(53.3%) |
Wife
(32%) |
My own
Decision (25%) |
|
Washing Machine |
Wife
(71%) |
Wife
(80.4%) |
Wife
(41.2%) |
Wife
(46.7%) |
Wife
(33%) |
Mother and Wife (50%) |
Interestingly, major influencers among the majority of lower
social class respondents, both in Bhilai and Raipur
was “father” (41.2% and 37.5%, respectively). The similarity could because of
the fact that consumers belonging to this social class could be taking financial
support from their father or it could be the fact that a traditional culture
still prevails in lower social class where father plays an important role in
purchase decision.
Major influencers, to purchase computers in upper social class,
both in Bhilai and Raipur was “my own decision”
(41.9% and 33.3%, respectively). The existence of similarity in upper class in
both the towns could be due to the need for computers are felt by everyone, so
natural to take a decision on own, which supports the findings of an earlier
study by Verma (1982).
Whereas within the majority of the middle social class
respondents, major influencers in Bhilai were (46.1%)
“children” to purchase computers, whereas incase of their counterparts in
Raipur it was “my own decision” (28.2%), could be due to fact that in Bhilai majority of the people are staying away from their
parents, so in order to meet the computer needs of their children, they are
taking their own decision, whereas their counter parts in Raipur are consulting
their “father” because majority of them could be staying with their parents and
they could be old and retired and sometimes to make them feel happy might be
consulting them to buy this product. Interestingly, the majority of lower
social class respondents, major influencers both in Raipur and Bhilai were “children.” The similarity across lower social
class within the two industrial city could be because these days children play
important role due to their exposure to new technology and knowledge gained out
of their exposure, while purchasing high involvement product such as computers.
Which supports the findings of earlier study by Ambani
(1978), Das (1987), Foxman and Tansuhaj
(1989), Lackman and Lanasa
(1993), Verma and Kapoor
(1993) and Sujeet(2000).
Interestingly, in upper and middle class respondents major
influencers to purchase refrigerators, both in Bhilai
and Raipur were “wife” The similarity in upper class and middle class of both
the city could be due to the fact that ladies in the home are users of the
refrigerators and exposed to advertisements, TV, news papers, and magazines. So
they play an dominant role in purchase of refrigerators, which supports
findings of earlier study by Gupta (1990), Verma and Kapoor (2003).
In order to purchase washing machines in upper, middle and lower
social class, in Bhilai, majority (71%, 80.4% and
41.2%, respectively) of the respondents are influenced by “wife.” The
similarity could be due to the fact that ladies in the home are users of the
washing machines, so they play an important role in purchase of washing
machines. The findings of the study support findings of an earlier study by Venkateshwarlu and Rao (2000),
and Verma and Kapoor
(2003).
In Raipur, both in upper
and middle social class, major influencers incase of majority of the
respondents (46.7% and 33%, respectively) was “wife” to purchase washing
machines, whereas major influencers incase of majority of the lower social
class respondents was “wife” as well as “mother” (50%). The slight difference
across lower social class within two industrial city could be because wife
plays important role in nuclear families in Bhilai,
whereas in Raipur, joint family system prevails where traditionally mother also
plays her role, which support findings of earlier study by Gupta (1990).
CONCLUSIONS AND SUGGESTIONS:
To conclude, no doubt there exist social class differences in
purchase of HIPS, but the difference exist across cities which needs to be
taken care by the marketers in order to
market their products and services In order to increase the sale of high
involvement products (HIPS) the marketers need to use appropriate marketing mix
with respect to product, price, promotion, distribution, people etc., so that
it fits with their needs and desires and motivate them to take their purchase
decisions. Since cognitive dissonance arises more in HIPS, they need to evolve
appropriate marketing strategy so that words of mouth publicity for this type
of product will increase the demand for the products. The study of social factors
influence in consumer buying behavior, develops deep insight in a marketer to
understand and analyse how social class as a strong
determinant can be used to segment the consumers and develop tactics to
motivate and facilitate them buy different consumer durable with different mode
of payment. In fact the knowledge of social class enables marketers to take
appropriate decision relating which news papers, magazines, televisions,
outdoors ads are to be used for different social classes for purchase of their
durable goods. The knowledge of social class give idea to banks and financial
institutions to evolve appropriate strategy to encourage consumers to take
loans for buying HIPS.
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Received on 17.07.2012 Accepted on 20.08.2012
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Asian J. Management 3(3): July-Sept., 2012 page 153-157