Research on Customers' Decisions to buy a Laptop at Metta Company

 

Le Thi Khanh Ly1*, Ho Tan Tuyen2

1International School, Duy Tan University, Da Nang 550000, Vietnam.

2Faculty of Business Administration, Duy Tan University, Da Nang 550000, Vietnam.

*Corresponding Author E-mail: letkhanhly@dtu.edu.vn

 

ABSTRACT:

This study identifies the factors affecting customers' decisions to buy a laptop at Metta company. The findings of this study revealed that six of variables statistically influenced customers' decisions to buy a laptop at Metta company, name all the six Price and payment conditions, Brand, Design, Technical characteristics, The ability to connect and mobile, After-sales Service. This study provides useful information to the managers in understanding factors affecting customers' decisions to buy a laptop. From that can help managers in making appropriate policies, strategies and solutions to rise the revenue.

 

KEYWORDS: Customers, Decisions, Buy a Laptop, Metta Company.

 

 


INTRODUCTION:

The laptop industry is growing at breakneck speed due to changes in consumers' work lives. As the need to access information anytime, anywhere is increasing, so does the sale of laptops. Ease of use, longer battery life, portability, multi-tasking capabilities, instant on/off and the considerable range of available applications have caused rapid growth and changing demand (Anand Thakur et al., 2013)1. Since the Covid-19 pandemic, the laptop market across the country has been predicted to have positive developments and not only short-term, good growth trends in the future. With over 86 million people and 22 million of them belonging to students - students, the Vietnamese market promises a lot of potentials. Business functions and opportunities for technology businesses. In that trend, Da Nang - one of the major socio-economic centers of the country is no exception. With a population of about 1,191,381 people (2022), along with the increasing trend of immigrants with 51,750 people (2017), it is also considered a large consumer market in the Central region.

 

Currently, the laptop business is increasingly attracting many businesses and is in the most fierce competition since appearing. The distribution agents are currently facing great competitive pressure in the market, though full of potential but equally cruel. To increase market share, sales of businesses need to learn and grasp the needs and factors affecting the decision to buy customers' laptops, thereby having branded business strategies.

 

LITERATURE REVIEW:

Consumer Behavior:

The study of consumer behavior has become of interest to marketers, as they can learn how consumers choose the goods and services needed to satisfy a variety of needs and factors. influence their choices (Srinivas Kumar, 2015)2. Consumer behavior can be defined as the behavior that consumers exhibit when seeking to purchase, use, evaluate, and discard products and services that they expect will meet their needs (Schiffman and Kanuk, 2004)3. Consumer behavior includes all activities of buyers, former buyers and potential buyers from pre-purchase consideration to post-purchase evaluation and from continued consumption to discontinuation. It extends from the perception of a desire, through the search and evaluation of possible means to satisfy that need and the act of purchase, to the evaluation of the purchased item in use, its effect on directly affect repurchase probability. (Alba et al., 1991)4. A rich body of knowledge exists regarding the factors that influence store patronage. Studies of store patronage behaviour (Lindquist 1974)5 stated that consumers are influenced by a variety of factors that may be summarised into, for example, location, merchandise, service, and store atmosphere.

 

Previous Studies on Factors Affecting Consumer's Decision to Purchase a Laptop:

The problem of customer’s decision to purchase a laptop has also been studied by many scholars around the world. Ashhan Nair (2006)6 aimed to provides a framework for customer’s decision and identifies the key factors of customer’s decision. Data analysis shows that there is a positive relationship between each element of customer’s decision, named core specifications, enhanced features, physical appearance, connection feature, mobile, after-sales service, peripheral equipment specifications, price and payment conditions.

 

Shamsunnahar Tania (2012)7 shows that all independent variables affect the purchase of computers including 5 factors as follows: Technical characteristics; Special Features; Mobile features; Brand and value. In addition, the study also shows the difference of factors affecting male and female teachers.

 

Dao et al. (2017)8 conducted by surveying 200 industrial university students with 26 observation variables, n = 130 has produced results with 4 groups of factors strongly affecting the decision. Buying laptops of students is the price; Specification; Brand and after -sales service.

 

The objective of the study Tien (2017)9 evaluated the factors affecting the decision to select laptops of students in Can Tho city. With the sample size N = 150 and 28 observed variables, the research results show that the decision to select laptops of students is influenced by 7 factors: Specifications; Design;Brand; Warranty; Purchasing location; Social factors; Personal factor; Psychological factors.

 

Devasenathipathi et al. (2011)10 showed consumer confusion is a consumer's state of mind caused by the influence of internal and external factors related to the buying experience. Although consumer confusion has been much discussed in Western cultures, it has not yet received much attention in countries like India. These research articles draw attention to the confusion regarding purchase perceived by consumers in the Indian Notebook market. The post-purchase recall survey was conducted with 259 male and female students in and around Coimbatore. The study reveals four types of consumer confusion and different mitigation strategies that may exist in the Indian laptop market.

 

Devasenathipathi et al. (2012)11 aimed Confusion is a consumer's state of mind due to the influence of internal and external factors related to the purchase. Although confusion regarding purchases has been much discussed in Western cultures, it has so far not received much attention in countries like India. This research paper draws attention to the confusion regarding consumer purchases in the Indian Laptop market, especially the student segment in Coimbatore. Research has found that confusion exists in the Indian laptop market and depends on consumers' efforts to reduce confusion, varying degrees of satisfaction. The results showed that confused consumers expressed positive views about their product purchases and performance. Based on the findings and limitations of the study, future research recommends learning more about purchase-related confusion in different socio-demographic contexts.

 

Dipti et al. (2012)12 explored the purchasing behavior of university students towards apparel purchases in the Raipur-Durg area. The study briefly examines the shopping behavior and factors affecting the shopping behavior of university students for apparel products. A questionnaire survey is used as a tool for primary data collection. The results showed that the students were brand loyal, price-conscious, value-conscious, brand-conscious and fashion-conscious as they searched for new variety in line with changing trends.

 

Decision to purchase a laptop have been mentioned in previous studies, which have made a positive contribution to finding out the factor effecting decision to purchase a laptop. However, these studies did not define the classification of decision to purchase a laptop.

 

RESEARCH MODEL AND HYPOTHESES:

Based on the researches of a conceptual model was developed which consisted of the determinants of consumer's Decision To Purchase A Laptop, the hypotheses are proposed:

 

Hypothesis H1: Price and payment conditions have a positive impact on Consumer's Decision To Purchase A Laptop

 

Hypothesis H2: Brand has a positive impact on Employee Consumer's Decision To Purchase A Laptop

satisfaction.

 

Hypothesis H3: Design has a positive impact on Consumer's Decision To Purchase A Laptop

 

Hypothesis H4: Technical characteristics has a positive impact on Consumer's Decision To Purchase A Laptop

 

Hypothesis H5: The ability to connect and mobile has a positive impact on Consumer's Decision To Purchase A Laptop

 

Hypothesis H6: After-sales service has a positive impact on Consumer's Decision To Purchase A Laptop



Figure 1: The study’s Proposed Theoretical Framework

 


RESEARCH METHODOLOGY:

The research was carried out through 2 phases: Preliminary research and formal research. The preliminary research was carried out by group discussion with 20 customers of Metta Company. Based on combining with observed variables in previous studies on consumer's Decision To Purchase A Laptop that the author has synthesized, proceed to build a draft scale, based on a draft scale, the author conducts a discussion with a group of staff to discover additional new variables and remove the ones that do not agree, and unify the composition of the preliminary scale. In the quantitative research phase, the survey questionnaire method is used with a valid number of observations of 304. The quantitative analysis methods that will be used for the data analysis part include:

 

Testing the reliability of the scale by Cronbach's Alpha: This test reflects the degree of correlation between the observed variables in the same factor. The standard to test the reliability of the scale is that the measurement variables have the total correlation coefficient of Corrected Item - Total Correlation ≥ 0.3, then the variable meets the requirements.

 

Exploratory Factor Analysis (EFA): This method helps to evaluate two important types of values of the scale: convergent value and discriminant value. The condition for exploratory factor analysis is to satisfy the following requirements: Factor loading > 0,5; KMO (Kaiser-Meyer-Olkin) in the range 0,5 ≤ KMO ≤ 1, Bartlett test has statistical significance (Sig. < 0,05).

 

Confirmatory factor analysis (CFA): is one of the techniques that allow testing how well the measured variables represent the factors. The CFA method is used to confirm the univariate, multivariate, convergent, and discriminant validity of the factor scale.

 

Multiple Regression Analysis: Multiple regression analysis is a statistical technique that used to analyze the relationship between the dependent variable and multiple independent variables, in which more than one independent variable is assumed to affect the dependent variable. In this multiple regression analysis, multiple independent variables of the study will be entered into the same types of regressions equation. A separate regression of each variable will calculated to define the relationship with the dependent variable. The relationship that occurs between each dependent variable and independent variable is linear. All the variables of the questionnaire are measured by likert scales. Multiple regressions will be calculated using the proposed formula to study the relationship between the independent variables and dependent variables.

 

RESULTS:

Testing The Reliability of Scale by Cronbach's Alpha:

After testing Cronbach's Alpha for 6 independent variables, 1 intermediate variable, and 1 dependent variable in the research model (Table 1), all factors have Cronbach's Alpha coefficients that meet the requirements (>0.5) and no observed variables were excluded. The results of testing the reliability of the scale are summarized in Table 1. After testing the reliability coefficient of Cronbach's Alpha, all observed variables meet the requirements for EFA analysis.

 

Table 1: Cronbach's Alpha test results

Concept

Factor

Number of observed variables

Reliability

 

Price and payment conditions

3

0.713

Brand

3

0.775

Design

4

0.722

Technical characteristics

6

0.769

 

The ability to connect and mobile

4

0.740

 

After-sales Service

4

0.856

Source: Processing results from survey data, 2022

 


Table 2: EFA results of the scale

Items

Factors

1

2

3

4

5

6

HM2

0.809

 

 

 

 

 

HM3

0.801

 

 

 

 

 

HM1

0.790

 

 

 

 

 

HM4

0.746

 

 

 

 

 

KT4

 

0.661

 

 

 

 

KT5

 

0.610

 

 

 

 

KT3

 

0.607

 

 

 

 

KT6

 

0.607

 

 

 

 

KT2

 

0.600

 

 

 

 

KT1

 

0.556

 

 

 

 

KD4

 

 

0.719

 

 

 

KD2

 

 

0.719

 

 

 

KD3

 

 

0.664

 

 

 

KD1

 

 

0.627

 

 

 

KN1

 

 

 

0.743

 

 

KN2

 

 

 

0.696

 

 

KN3

 

 

 

0.623

 

 

KN4

 

 

 

0.599

 

 

GC1

 

 

 

 

0.771

 

GC2

 

 

 

 

0.763

 

GC3

 

 

 

 

0.719

 

TH3

 

 

 

 

 

0.743

TH1

 

 

 

 

 

0.712

TH2

 

 

 

 

 

0.669

Source: Processing results from survey data, 2022

 


Exploratory factor analysis (EFA):

The results of EFA analysis are shown in Table 2 with the KMO coefficient = 0.887; the Bartlett test value is significant (Sig < 0.05), all observed variables have factor loading coefficients greater than 0.5 so no variables are excluded.

 

Testing the correlation coefficient (R value):

The Multiple Regression Analysis is used to determine the significant relationships between independent variables and dependent variable.

 

Table 3: Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Durbin- Watson

1

0.719

0.518

0.508

0.56668

2.020

Source: Processing results from survey data, 2022

 

Based on the Model Summary Table 3, the correlation coefficient (R value) for this research is 0.719. This means that the dependent variable strong positively affects independent variable because R value is positive value and 0,719 is fall under coefficient range ±0.71 to ±1.

 

Testing the Anova:

Table 4: Anova

Model

Sum of Squares

Df

Mean Square

F

Sig.

 

1

Regression

102,330

6

17,055

53,111

0.000

 

Residual

95,373

297

0.321

 

 

 

Total

197,704

303

 

 

 

Source: Processing results from survey data, 2022

 

In the Anova table 4, it shows that the F value of 53,111 greater than 5 and the p-value is 0.00 which is less than 0.05 (p<0.05) so significant at the 0.05 level. The significance value was-is less than 0.05, an indication that the model was-is significant. In overall the regression model with those five independent variables is suitable for explaining the variation in Purchase Decision.

 

Develop regression equation with standardized coefficients:

The standardized coefficients predict the influence level of independent variables on Purchase Decision. We can be determined by the following regression equation with standardized coefficients as below:

 

Y = 0.293*X1 + 0.159*X2 + 0.103*X3 + 0.125X4 + 0.158X5 + 0.212X6

Or:

 

Purchase Decision = 0.293* Price and Payment Conditions + 0.159* Brand + 0.103* Design + 0.125 Technical characteristics + 0.158 The ability to connect and mobile + 0.212 After-sales service.

 

DISCUSSION:

Research results help solve the goals set out at the beginning of the article. The theoretical system of customers' buying decisions. Therefore, identifying factors affecting factors affecting the decision to buy customers' laptops. Conducting research models and using methods to analyze research models.

Research includes 304 models aimed at customers who decide to buy laptops at Metta Company. Based on previous research models in combination with customer surveys, the article has proposed six factors affecting the decision to buy customers' laptops and apply them to this research. They include: Price and Payment Conditions; Brand; Design; Technical Characteristics; The Ability to Connect and Mobile; After-Sales Service.

 

Customers are influenced by the factors "Price and payment conditions". Therefore, in order to increase sales, laptop distribution and trading companies need to try to provide products with the most reasonable and most competitive price compared to competitors in the area. The better the price and payment policy, the better the customer buys.

 

The "brand" factor has a great influence on the intention to buy new computers of customers, so in addition to paying attention to distributing the product lines of famous brands that are popular with customers such as Asus, Dell.

 

The design factor has little influence on the purchase decision, so the company should invest a lot in distributing high -reputable laptop companies. At the same time, update the new design trend to innovate the style for customers who need to use the laptop they prefer the appearance of the product.

 

The company should update and promote marketing campaigns for lines with diverse specifications to customers so that they can update and know products with outstanding technical characteristics with affordable costs. From there, customers will have many choices with reasonable costs but still ensure the factors of the laptop's specifications.

 

For connectivity and mobile. The company can focus on distributing new laptops containing diverse ports, and accompanied by webcam support features and internet connectivity for customers. In addition, laptop lines when not accompanied by connectors or webcams, the company should sell products that support port and webcam with laptops to support customers in use in use.

 

The technical support team is one of the important factors that need to be focused on developing to better meet the needs of customers. The computer market is currently competing fiercely with a large number of distributors, paying attention to the synchronization of product quality and serving at all locations in the best way, thereby building pictures Brand photo of the company in the minds of customers. Trading procedures, repair and technical support should also be simplified as much as possible, using technology support to minimize time to create the most convenient for customers.

 

REFERENCES:

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3.      Schiffman, Leon. G. and Kanuk (2004) Consumer Behavior, Leslie Lazar Pearson Education Pvt Ltd., New York.

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8.      Dao Duy Huan, Nguyen Tien Dung, (2017), Organizational behavior, Can Tho University Publishing House

9.      Nguyen Du Tien, (2017). Analysis of factors affecting the decision to choose laptops of students in Can Tho city. Can Tho University, No8.

10.   T. Devasenathipathi, P.T. Saleendran. A Study on Consumers Confusions among Male and Female Students and Their Adoption of Reduction Strategies during the Laptop Purchase. Asian J. Management. 2011; 2(2): 71-76.

11.   T. Devasenathipathi, P.T. Saleendran. Existence and Impact of Unclarity Confusion on Laptop Purchase – A Post Purchase Opinion Survey. Asian J. Management. 2012; 3(1): 35-39.

12.   Dipti Baghel, Archi Dubey. Apparel Buying Behavior of College Going Students- A Study in Raipur- Durg Area. Asian J. Management. 2012; 3(2): 90-93.

 

 

 

Received on 11.04.2023         Modified on 10.05.2023

Accepted on 15.06.2023      ©AandV Publications All right reserved

Asian Journal of Management. 2023;14(4):255-259.

DOI: 10.52711/2321-5763.2023.00042