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FACTORS AFFECTING PURCHASING DECISIONS OF THE
CONSUMERS:
A CASE OFKINONDONI DISTRICT (DAR ES SALAAM)
2
FACTORS AFFECTING PURCHASING DECISIONS OF THE
CONSUMERS:
A CASE OFKINONDONI DISTRICT (DAR ES SALAAM)
By
Kakiza Clara, W.
A Dissertation submitted in partial fulfillment of the requirements for the award of
the degree of Master of Business Administration (MBA-CM) of Mzumbe
University
2015
i
CERTIFICATION
The undersigned certifies that she has read and hereby recommends for acceptance by
Mzumbe University of Tanzania, a research report entitles “Factors affecting Purchasing
Decisions of the Consumers in Kinondoni District: Dar es Salaam City”. In partial
fulfillment of the requirements of master’s degree of Business Administration (MBA-
CM) of Mzumbe University.
……………………………………….
DR. J.S.KIKULA (Supervisor)
……………………………………….
Internal Examiner
Accepted for the Board of School of Business
____________________________________
Dean, School of Business
ii
DECLARATION
I, declare that this research report is my own original work and it has never been
produced or submitted to any university of higher learning institution for the similar or
different award.
Signature……………………………
Date…………………………………
iii
DEDICATION
This dissertation is dedicated to, my mother Feliciana Kakiza, my brother Alfred Kakiza,
to my daughter Angel Mfaume and my husband Mfaume Selemani. Without their
support, I would have not been able to mobilize the energy and motivation required to
write this dissertation.
iv
COPYRIGHT
All right reserved. This research report work is protected by copy right and no part of
this book should be reproduced, stored in any means, electronic, mechanical, photocopy,
recording or likewise means without prior permission from authors.
© Kakiza, Clara .W. MBA-CM 2015
v
ACKNOWLEDGEMENT
First and foremost, I wish to thank the Almighty God for his immeasurable kindness and
love. He granted me throughout my studies and field work. May his name be praised.
I extremely extending my sincere gratitude to my supervisor DR. J.S.KIKULA whose
identifiable efforts, spirit concern and encouragement, empowered and helped me to
finish my research report on time. May the lord bless his efforts at MZUMBE.
I also appreciate the contributions of my Mother and Brother; Mrs. Kakiza and Mr.
Alfred Kakiza, and my teacher Mr. R. Makorere and all others who assisted me in one
way or another.
I also appreciate the contributions of all my respondents who assisted me in this research
work. Particularly all workers in KINONDONI DISTRICT for giving the data and other
consumers who were located in this district.
Lastly I also appreciate the contributions of my husband, who assisted me in this work,
for his close cooperation and mutual assistance were fantastically supportive. Let God
bless him.
vi
ABSTRACT
This research report much based on the factors affecting purchasing decisions of the
consumers in Kinondoni District in Dar es Salaam City. The main objective of this study
was to investigate the main factors affecting purchasing decisions of the consumers; and
specific objectives were find out the income levels of the consumers, to identify data
bank of suppliers by retailers and wholesalers existing in Kinondoni and another
objective was to identify factors influencing purchase decision on the consumers.
The study included a sample of 100 consumers and 20 staff, who were interviewed to
know the factors affecting purchasing decisions of the consumers. Purposive sampling,
and Convenience sampling were used to get the sample of respondents during the study.
Data were collected through questionnaires and interviewed, both primary and
secondary data were used. Primary data such as questionnaire and interview method and
secondary data used documentary review. Data analysis was based on descriptive
statistics and presented in tables and percentages.
In this study researcher discovered the factors affecting purchasing decisions which
influence consumers buying behavior, and also discovered subjective factors and
objective factors which motivate buying behavior such as individual factors, final
consumers, price, quality and trust towards purchasing environment.
The findings show that the company should allocate resources properly, also should
allocate distributers in order to create good satisfaction and company should put
limitation on the issue of increase price because some of the area where complain about
it. And lastly government should provide seminars and training to the consumers in
order to look on the different factors affecting purchasing and do not based on only
single factor of price.
vii
TABLE OF CONTENTS
CERTIFICATION .............................................................................................................. i
DECLARATION .............................................................................................................. ii
DEDICATION ................................................................................................................. iii
COPYRIGHT .................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................. v
ABSTRACT ...................................................................................................................... vi
TABLE OF CONTENTS ................................................................................................ vii
LIST OF TABLES .......................................................................................................... xii
LIST OF FIGURES ....................................................................................................... xiii
CHAPTER ONE .............................................................................................................. 1
INTRODUCTION ............................................................................................................ 1
1.0 Introduction .................................................................................................................. 1
1.1 Background information .............................................................................................. 1
1.2 Statement of the Problem ............................................................................................. 2
1.3 Objectives of the Study ................................................................................................ 3
1.3.1 General objective .................................................................................................. 3
1.3.2 Specific objectives ................................................................................................ 3
1.4 Research Questions ...................................................................................................... 3
1.5 Significance of the Study ............................................................................................. 4
1.6 Scope of the Study ....................................................................................................... 4
1.6.1 Products of Coca-Cola Company ......................................................................... 5
1.7 Limitations of the Study ............................................................................................... 5
1.7.1 Availability of the information ............................................................................. 5
1.7.2 Time ...................................................................................................................... 5
1.7.3 Transportation ....................................................................................................... 5
viii
CHAPTER TWO ............................................................................................................. 6
LITERATURE REVIEW ................................................................................................ 6
2.0 Introduction .................................................................................................................. 6
2.1 Theoretical literature review ........................................................................................ 6
2.1.1 Previous Studies ................................................................................................... 6
2.2 Types of consumer buying behavior ............................................................................ 8
2.2.1 Complex Buying Behavior ................................................................................... 8
2.2.2 Dissonance reducing buying behavior .................................................................. 8
2.2.3 Habitual Buying Behavior .................................................................................... 9
2.2.4 Variety Seeking Buying Behavior ........................................................................ 9
2.3 The Concept of Purchasing Decision ......................................................................... 14
2.3.1 Need Recognition & Problem Awareness .......................................................... 15
2.3.2 Information Search ............................................................................................. 16
2.3.3 Evaluation of Alternatives .................................................................................. 16
2.3.4 Purchase .............................................................................................................. 16
2.3.4.1 Group of Purchasing Decision ......................................................................... 17
2.3.5 Post-Purchase..................................................................................................... 17
2.4 Hierarchical Theory of Needs and Purchasing Decision ........................................... 20
2.5 The importance of purchasing decision ..................................................................... 21
2.6 Factors influencing Purchasing Decision of final consumer...................................... 22
2.6.1 Subjective factors ............................................................................................... 22
2.6.2 Individual demands............................................................................................. 22
2.6.3 Final Consumers Attitude ................................................................................... 22
2.6.4 Objective factors ................................................................................................. 23
2.6.4.1 Price ................................................................................................................. 23
2.6.4.2 Quality ............................................................................................................. 23
2.6.4.3 Trust towards purchasing environment ........................................................... 24
2.7 Empirical Literature Review ...................................................................................... 24
2.8 Research Gap ............................................................................................................. 27
ix
2.9 Definitions of Key Terms and Abbreviations ............................................................ 28
2.10 Conceptual Framework ............................................................................................ 29
CHAPTER THREE ....................................................................................................... 31
RESEARCH METHODOLOGY ................................................................................. 31
3.0 Introduction ................................................................................................................ 31
3.1 Description of the Study Area .................................................................................... 31
3.2 Research Design ......................................................................................................... 32
3.3 Population of the Study .............................................................................................. 33
3.4 Sample Size and Sampling Techniques ..................................................................... 33
3.4.1 Sample size ......................................................................................................... 33
3.4.2 Sampling technique ............................................................................................ 33
3.4.2.1 Purposive sampling.......................................................................................... 33
3.4.2.2 Convenience sampling ..................................................................................... 34
3.5 Data collection methods ............................................................................................. 34
3.5.1 Primary Data Collection Method ........................................................................ 34
3.5.1.1 Questionnaires Method .................................................................................... 34
3.5.1.2 Interview Method ............................................................................................ 35
3.5.2 Secondary Data Collection Method .................................................................... 35
3.6 Data analysis Methods ............................................................................................... 35
3.6.1 Quantitative Data Analysis ................................................................................. 35
3.6.2 Qualitative Data Analysis ................................................................................... 36
3.7 Reliability and Validity .............................................................................................. 36
3.8 Ethical Consideration ................................................................................................. 37
CHAPTER FOUR .......................................................................................................... 39
FINDINGS AND DISCUSSION ................................................................................... 39
4.0 Introduction ................................................................................................................ 39
4.1 General characteristics of respondents ....................................................................... 39
4.1.1 Gender of respondents ........................................................................................ 40
x
4.1.2 Age of respondents ............................................................................................. 41
4.1.3 Education Level of respondents ......................................................................... 41
4.1.4 Occupation of the respondents ........................................................................... 41
4.2 Description on the income level earned by the final consumers ................................ 42
4.3 Description on the area where consumers purchase coca cola in Kinondoni district.
.......................................................................................................................................... 42
4.3.1 Retailers .............................................................................................................. 42
4.3.2 Wholesalers ........................................................................................................ 43
4.4 Description on the factors influences Purchase Decisions by Consumers at
Kinondoni. ........................................................................................................................ 43
4.4.1 Income level ....................................................................................................... 44
4.4.2 Price .................................................................................................................... 44
4.4.3 Consumer’s Attitude ........................................................................................... 45
4.4.4 Advertisement ..................................................................................................... 45
4.4.5 Social influence .................................................................................................. 46
4.4.6 Fashion................................................................................................................ 46
4.4.7 Education/learning .............................................................................................. 46
4.4.8 Family Life cycle ................................................................................................ 46
CHAPTER FIVE ............................................................................................................ 48
SUMMARY, CONCLUSION AND RECOMMENDATIONS .................................. 48
5.0 Introduction ................................................................................................................ 48
5.1 Summary of the Study ................................................................................................ 48
5.2 Conclusion ................................................................................................................. 48
5.3 Recommendations of the Study ................................................................................. 49
5.3.1 Should provide seminars and training ................................................................ 49
5.3.2 Company should allocate resources properly ..................................................... 49
5.3.3 Allocation of many distributers in order to create good satisfaction .................. 50
5.3.4 Company should put limitation on the issue of increase of price ....................... 50
5.3.5 Company should provide frequent seminars ...................................................... 50
xi
5.3.6 Coca cola should think and look on the outcome ............................................... 50
5.3.7 Company should usually try to fit its products into existing attitudes ............... 51
5.4 Scope for further Research ......................................................................................... 51
REFERENCES ............................................................................................................... 52
APPENDICES ................................................................................................................ 55
59
xii
LIST OF TABLES
Table 2.1: Kotler 2005 ....................................................................................................... 8
Table 4.1: General characteristics of respondents ............................................................ 40
Table 4.2: suppliers of Coca Cola .................................................................................... 43
Table 4.3: Factors affecting purchasing decisions of the final consumers ...................... 44
xiii
LIST OF FIGURES
Figure 2.1: Concept of Purchasing Decision.................................................................... 18
Figure 2.2: Maslow’s Hierarchy of Need ......................................................................... 21
Figure 2.3: Conceptual Framework.................................................................................. 30
Figure 3.1: Description of the Study Area ....................................................................... 32
1
CHAPTER ONE
INTRODUCTION
1.0 Introduction
These chapters involve seven sub-sections, which are background of information,
statement of the problem, objective of the study, research questions, significant of the
study, scope of the study and lastly limitation of the study.
1.1 Background information
In today’s global markets in the evaluation stage, the consumer ranks brands and forms
purchase intentions. And they preferred to buy high quality products and they look on
the attitudes of others and unexpected situational factors which based on expected
income, expected price, and expected product benefits (Kotler, 2008). In order for every
final consumer in East Africa to purchase a particular goods or services, he or she must
reach the purchasing decision to those goods or services but this purchasing decision
differ from one final consumer to another due to several factors which affect purchasing
decision such as price, attitude, advertisement, social influences, fashion, education,
family life cycle and income (William, 2010).
In 17th
century before industrialization period, the purchasing decision was very low to
final consumers because most families were at rural, large and self- sustained; they
produced and processed almost everything that was needed for their own support and for
trading in the marketplace; there were few companies which produced goods and
services to the market place and they were at low quality and quantity. (The “Industrial
Revolution” in the Home: 20th Century 1976).
After industrialization from 18th
to 19th
centuries in America, massive production of
goods and services of high quality and quantity took place in the market, final
consumers become loyal to a particular company brand name. Nowadays African
consumers have often been make purchase decision on cheap, poor- quality, unbranded
2
products in many categories when you compare with other countries like North Africa’s
who were willing to pay a premium for well- known brands(McKinsey’s Africa
consumer Insights Centre “the consumer decision journey”, October 2012), that can
cause problem to the consumers because people find them make purchasing a certain
products or services without knowing hence, ending up purchasing a goods or services
of low quality and quantity because of being influenced by other factors which affect
purchasing decision.The companies become aware about marketing mix (Product, Price,
Promotion and Distribution) which used to convince consumers in purchasing decision,
due to that fact, the purchasing decision of consumers become higher.
The study was conducted at Kinondoni Municipal in Dar es Salaam-Tanzania which was
found in East Africa. The study was very important because people knew a lot about
purchasing decision including the characteristics of consumers, purchasing decision
process of consumers as well as factors affecting the consumers purchasing decisions,
after knowing these, people were able to control consumers’ purchasing decision
behaviour especially in their business, also business owners knew the needs and wants
of consumers which help them in marketing target and segmentation.
1.2 Statement of the Problem
The selection of the best alternative whereby consumers ready for the buying act, an
exchange of money, a promise to pay or support in return for ownership of a specific
product or performance of specific service is what known as purchasing decision. This
act is a problem because it is very difficult for consumers to purchase or to reach
purchasing decision without influenced by any internal and external factors even if the
goods or service is of low quality, quantity as well as low price.
The problem is study or learned because we want and need to know the reasons which
affect consumers purchasing decision that not to purchase a certain product or service
and decide to purchase a certain product or service, we need to know and understand
why this situation occurs?
3
The problem identified by other scholars is that every new day the massive production
of low quality and quantity goods and services takes place in the market especially at
Kinondoni, Dar es Salaam. For example around 1990 and 2002 a research was
conducted at Coca Cola Company and that research repeated the problem because it
focused only on single factor which was tested and investigated. And another scholar
wrote something concerning the same problem to this study such as “The increasing
price of food is affecting 82 % of respondents in middle East Africa” (Nielsen Online
Survey 2012) but he put much effort on testing and researching only single factor which
was price, and he failed to look on other factors affect purchasing decision of final
consumer.
The study intended to identify, investigate, test the whole factors and provide solution
that can control the situation which other scholars failed. The author identified the
factors affecting the purchasing decisions of the final consumers.
1.3 Objectives of the Study
1.3.1 General objective
The main objective of this study was; investigate the main factors affecting the
purchasing decision of consumers at Kinondoni Municipal in Dar es salaam City.
1.3.2 Specific objectives
The study also aimed at attaining the following objectives;
i. To find out the income levels of the final consumers;
ii. To identify data bank of suppliers by retailers and wholesalers existing in
Kinondoni District
iii. To identify factors influencing purchase decision on the final consumer.
1.4 Research Questions
This study was guided by three research questions;
4
i. What income level earned by the consumers at Kinondoni Municipal in Dar
es salaam City?
ii. What types of suppliers found at Kinondoni Municipal in Dar es salaam
City?
iii. What factors influenced consumers in purchasing decision at Kinondoni
1.5 Significance of the Study
The study was expected to impact knowledge to societies and academicians on the
influenced factors that affecting consumers purchasing decision.
To gain in-depth and analyses the factors affecting purchase decisions of the consumers.
Provide contributions to the company to gain better insights into customer mind and
possibility to evaluate their sells; also, the findings help to provide suggestions for
product development opportunities.
1.6 Scope of the Study
This research focused on factors affecting purchasing decisions of the consumers in
Kinondoni district in Dar es Salaam city which is allocated in Tanzania which found in
East Africa. The study is very important because consumers were know a lot about
purchasing decision including the characteristics of consumers, purchasing decision
process of consumers as well as factors affecting the consumers purchasing decisions,
after knowing these consumers were able to control consumers’ purchasing decision
behavior especially in their business, not only this but also business owners were know
the needs and wants of consumers which were help them in marketing target and
segmentation. The researcher based on the case of Coca-Cola which was a leading firm
in the industry with a 40 percent share of the soft drinks market. In 1952 company was
established by a Greek entrepreneur and was renamed Tanzania Bottlers. The firm was
sold in the 1970s to Tanzanian called Jalal Jamal and Yogesh Malik. And in 1995 South
Africa bought majority of share and change the name to Kwanza Bottlers and 1997 also
was changed to Coca-Cola Kwanza and other shareholders is IPP Group of Companies.
5
1.6.1 Products of Coca-Cola Company
It produces coca cola, Coke Light, Fanta, Sprite Dasani, Sparletta ranges and Krest.
Through this products company they won numerous quality awards within Coca-Cola
International. And also this company was work as a team because company was
managed by country manager who direct report to the board.
1.7 Limitations of the Study
1.7.1 Availability of the information
The researcher was tried at level best to convince them in order to provide the true
information but some of the respondents were reluctant to provide the information; this
may be due to confidentiality, fear, and other uncontrollable reasons.
1.7.2 Time
The time was too short to conduct this study in the best way and gather enough
information in order to reach at the best conclusion; hence the researcher was tried to use
this available time to make the study better.
1.7.3 Transportation
As researcher said previous that the study was conducted in Kinondoni district, this
place was very large and other places are very difficult for car to path or reach, but the
researcher tried at level best to cover the all divisions in Kinondoni district such as
Kawe, Kibamba, Magomeni and Kinondoni. Example in Kisopwa area at Kibamba
divisions was 12 km from Morogoro road, the place as no public transport you either go
by motor cycle or by foot.
6
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter discussed the literature review as presented by other authors and
researchers in the same field of purchasing decision. The various sections presented here
were; concept purchasing decision, hierarchical theory of needs, factors influencing
purchasing decision of final consumer and the conceptual framework to the study.
2.1 Theoretical literature review
2.1.1 Previous Studies
Several different approaches have been made to explain factors affecting purchase
decisions of the consumers in Kinondoni district. Most studies examined factors
affecting purchase decisions of the consumer association with demographic and socio
economic characteristics. However attitude and behavioral characteristic are also
highlighted as important determinates of store brand proneness than demographic and
socio-economic characteristic (Baltas, 1997). Consumer previous knowledge and
experience have greater extent to process the brand, but it depends on the weight of
consumer prior knowledge and cognitive ability (Bettman,J.R and Park,C.W.,
1980).And other researchers proved that perceptions of quality and products are
influencing individuals buying behavior prior to demographic, psychological and
shopping behavior (Szymanski, DM. and Busch PS, 1987).
According to Evans Joel. R. and Bermann Barry (2004), Marketing Sixth Edition,
United States of America, Macmillan Publishing company, wrote that” Purchasing
Decision is the selection of the best alternative in which a consumer is ready for buying
act, to make an exchange of money and product or services, this implies that consumer is
willing to give money to the seller so as to get a products or services.
7
The Consumer behavior study involves how an individual or groups select, purchase,
use or dispose of products, services ideas, or experience to satisfy their need and desires.
The consumer environment influences how the consumers feel, consider and act. The
environmental features are, for instance, comments taken from other customers,
advertising, packing, price, and product appearance etc. (.Paul & Jerry C, 2005)
The consumer behavior is related to the physical action of a consumer, which can be
measured straight. Frequency of visiting stores or shopping malls can be measured. To
select a specific store then to go there is very difficult to choose and observe directly.
Where different types of behavior can be measured including a shopping pattern in
stores. This kind of measurement is very hard. The behavior can be analyzed in different
ways, by offering lower price, better service and good quality (Papanastassiu and
Rouhani, 2006)
Consumer behavior mainly sheds light on how consumers decides to spend their various
resources like time, money etc. on various products so as to meet their needs and
requirement. Consumer behavior encompasses study of what, when, why and where the
consumers will buy their products. It also focuses on how often the consumers use the
products. Furthermore, it also sheds light on how the consumers evaluate the products
after the purchase and the effect of evaluations on their future purchases. (Schiffman
Kanuk, P.08)
To give an example of how consumer behavior evolves while buying a handset, he will
start with recognizing his or her need for a handset. Then come the information
collecting and processing stage. After making up his mind to buy one specific brand, for
instance Samsung galaxy s6, the consumer makes the purchase. In the post-purchase
stage, the consumer evaluates the performance of the handset against the expectations he
or she had before buying the handset. In this stage, the consumer is either satisfied or
dissatisfied. So, it is evident that study of consumer behavior involves lot of things.
8
2.2 Types of consumer buying behavior
Table 2.1: Kotler 2005 High involvement Low involvement
Significance
differences between
brands
Complex buying
behavior
Variety-seeking
behavior
Few differences
between brands
Dissonance-reducing
behavior
Habitual buying
behavior
Source: Researcher’s findings, 2015
2.2.1 Complex Buying Behavior
Complex behavior can be defined when consumers are highly involved for making a
purchase decision. Complex buying behavior calls for high level of involvement on the
part of the consumer. In case of high involvement, consumers distinguish salient
differences among the competing brands. Consumers’ are highly involved in case of
expensive and highly self-expressive products. The consumer engages in extensive
information to search and to learn about product category so as to be able a good
purchase decision. For example, when a consumer decides to buy a car, he seeks
information about the available brands and compares his collected information about
each brand and finally makes up his mind. (Kotler and Armstrong, 2003)
2.2.2 Dissonance reducing buying behavior
In case of dissonance reducing buying behavior the level of consumer involvement is
also high. Consumers typically undergo dissonance reducing buying behavior in case of
costly and infrequent purchase. In this type of consumer behavior the consumers find it
difficult to differentiate among the brands. For example consumer buying carpet may
come across of dissonance reducing buying behavior, as carpets are usually expensive
and self-expressive. In case of carpets, consumers may deem most of the available carpet
brands in the market within a certain price range to be of the same quality. Consumers
may respond primarily to are latively better price. After the purchase consumer might
experience post purchase dissonance (after sales discomfort).86 (Kotler, and Armstrong,
2003).
9
2.2.3 Habitual Buying Behavior
In case of habitual Buying Behavior, consumers´ level of involvement is low. This
means that consumers don’t search much information among the available brands and
they don’t find significant differences among the brands. An example of low-
involvement product is tooth paste. The level of consumer involvement in this sort of
product category is very low. In case of habitual buying behavior, consumers merely go
to the store to buy the product without a high level of involvement. If the consumers
keep buying for the same brand over and over again, it becomes their habit. It is as if
that the consumers have developed a brand loyalty for that specific brand rather they buy
the product out of habit. Generally speaking, consumers are usually lowly involved
when the product is cheap (Kotler, 2003)
The level of consumer’s involvement is also low in case of products that are frequently
purchased. Consumers do not usually seek information much pertaining to available
brands before making purchase decision. The consumers don’t assess different attributes
of the available brands and make purchase decision as to which brand to buy.
Consumers glean information relating to various brands and their attributes through
watching television or reading newspapers (Kotler, 2003)
2.2.4 Variety Seeking Buying Behavior
In case of variety seeking buying behavior the level of consumer involvement is low, but
consumers perceive significant differences among the brands. In variety seeking buying
behavior, consumers very often switch from one brand to another. As an example we
can think of confectionery, consumers might have beliefs about a brand and choose a
brand without much evaluation. But they evaluate that product at the time of
consumption. But when the consumer goes shopping next time, he or she may go for
another brand either because of boredom or simply to test a different brand. Brand
switching happens not because the consumer is dissatisfied but because of variety.
(Kotler, 2005).
10
Uggla (2001), explain consumer behavior in to two different types i.e. cognitive and
experience oriented. The consumers who have cognitive behavior are rational and
logical consumers while the experience oriented consumers have more emotional
motives for buying a product.
In comparison Dalqvst and Linde (2002) have defined four types of consumer behavior:
rational, unconscious, learned and social behavior. The different behavior are
characterized by the order of three steps: knowledge, attitude and action.
Rational behavior: if consumers have a rational behavior, they start to get some
knowledge about the product and what the market may offer. By evaluating the
information they get an attitude towards the products and finally they act, either buying
the product or not. This behavior is more common when consumers are buying
expensive products like cars. (Knowledge→Attitude→Action).
Unconscious behavior: when consumers have unconscious behavior they start with an
attitude towards the products and the attitude comes from emotions and feelings. From
the attitudes the consumers find information about the product and from that they get
knowledge. At last they have the action, their choice. This type of behavior is common
when it comes to voting for politics. (Knowledge→Attitude→Action)
Learned behavior: reflexes settle the choice of product. When the consumers choose a
product they do not plan their choice; they do it by habit. This behavior usually occurs
when consumers buy newspaper. (Knowledge→Attitude→Action).
Social behavior: when consumers have a social behavior they choose the products
depending on what social environment they live in. their lifestyle, status and influence
from others decide what product they will buy.
According to Khasawneh and Hasouneh (2010) Customers realize the importance of
brand while in their purchasing decisions and customers’ demographic characteristics
have no significant relation and effect on brand awareness. People prefer the branded
11
products with higher prices because they consider that branded items have more quality
then non branded products.
Quality is defined as evaluation of excellence and superiority of the product (Zeithaml,
1988). In the previous studies, some researchers argued that quality cannot be defined
and quality is objective which can be measured. In a different thought others believed
quality cannot be measured. Combining this two approaches quality is divided in to
objective of quality and perception of quality (anselmsson, ULF, & persson, 2007).
Objective of quality is evaluation of the product based on physical characteristics. While
perception of quality considers subjective notation which is consumer evaluation of the
product and judgment that based on some attributes. Richard (1996) defined perceived
quality in terms of consumer judgment of intrinsic attributes (taste, ingredients, nutrition
value and overall quality (Bellizzi et al 1981; cunnungham et al 1992).
According to Collins (2003) consumer evaluates the quality in association of extrinsic
and intrinsic cue. Intrinsic cue is ` 15 the perception of quality through physical
characteristic of the product (color, size, flavor or aroma) while extrinsic cues are
attributes which have some relations with the product (package, price, advertising and
peer pressure). Because extrinsic cues are more familiar with customers, based on this
cues it is easier for them to evaluate the products (Hoch & Banerji, 1993, p. 99).The
variability in product creates perception difference among individuals. According to
Richardson (1996), quality perception determines consumer proneness to buy Coca-
Cola. However, product quality comparison assessment is evaluated by the consumers
not by the companies. Sometimes consumers give higher value to lower attributes
(Richardson, P.S, Jain, A.K and Dick`, A, 1996). In addition to that, consumer
perception of quality change over time as a result of added information. For that reason,
marketers must track perception through product align and promotion strategies
(Zeithaml, 1988, p. 18).
12
Lascu and Zinlchan (1990) and Chen-Yu and Seak (2002) note on their studies that “
purchasing decision as the process whereby a person as final consumer perceive a
certain product or service to the point of exchanging it with money after accepting its
attributes such as quality, quantity and function.
According to Barry E. Thomas, he writes that “there are several types of suppliers found
in market place including retailers and wholesalers. Retailers are the suppliers who buy
goods and resale to final consumer’s whiles Wholesalers are suppliers who buy both
finished and unfinished goods in large quantity for further production then resale to
retailer and other wholesalers.
According to Kotler, P. 2008, he writes on buyer decision process. In this textbook he
divides into five processes such as need recognition, information search, Evaluation of
alternatives, purchase decision and post-purchase behavior. But our study focus on the
fourth process” purchase decision” the buyers decision about which brand to purchase
but two factors can come between the purchase intention and the purchase decision such
as attitudes of others and unexpected situational factors. For example, a close competitor
might drop it price in order to make customers to purchase their products.
In addition to that Richardson John E, (2005), Annual Editions Marketing, the Dushkin
Publishing Group, gives a concept on purchasing decision that “it involves three
perspectives which are decision making, the experiential and behavioral influence. This
is under the fact that decision making holds the buying behavior results from final
consumers’ engaging in a problem- solving task in which they move through a series of
stages- once a person identify a problem(example transportation), he or she will solve
that problem by deciding to buy a car, hence buying behavior exists. The experiential
perspective argues that a person makes purchase in order to create feeling, experiences
and emotions rather than to solve problems. Behavioral approach proposes that final
consumers will decide to buy after being influenced by several factors such as
environment, culture, education, income level, age, life style, family and others many.
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Zeithaml (1988) expresses price-quality relationship in association of factors affecting
purchase decisions of consumers. First factor believed as all the information’s the
consumers perceive through advertisements and brand reputation has power on
purchasing decision than price of the product. The second factor explains consumers
who are not aware about price they do not use price as a quality reference. Third factors,
consumers who have less knowledge about the quality of the product use extrinsic cue
such as price, brand name and package to buy the product. Fourth factor, some
consumers use price as a signal of higher quality but when there is a price variation on
the assortment of products for a tiny quality difference the consumers prefer products
with lesser price. However if the consumer is uncertain about the quality of the product
the less effect it has on the buying behavior (Urbany, J. E., Bearden, W. O., Kaicker, A.,
Borrero, M. S. D. 1997).Attitude is considered as key concept on consumer behavior
that was defined as set of beliefs, experience and feelings forming a predisposition to act
in a given direction (Chandon Jean-Louis, 2011). Attitude in other research is defined as
“the consumer total evaluation of the product” (Rao, 2010). Fishbein and Ajzen cited by
(Chandon Jean-Louis, 2011) denoted that attitude has a factors affecting purchase
decisionsof the consumers because it has basic psychological function. Attitude is
expressed by the evaluation of a product/brand in two directions which is favorable or
unfavorable. For this reason several researcher mentions the balancing of price and
quality has a relation for creating consumers positive attitude. Furthermore, if
satisfaction from the last purchase is derived, consumers will frequently shop the
product and become familiar with it. Many consumer researchers make use of the model
of Multi Attribute Attitude Model by Fishbein; in which three models are included:
Attitude toward –object model, Attitude toward behavioral model and the theory of
Reasoned Action. It is considered necessary to discuss two types of attitudes in this
study which are attitude toward object model and attitude toward behavioral model:
Attitude toward object model measures consumer’s attitude toward a service, product,
and price or towards an organization such as brand.
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Attitude toward behavior model, on the other hand, measures the consumer’s attitude
toward behaving in accordance to the object rather than attitude toward the object itself.
That is a consumer might have a positive attitude toward the brand but a negative
attitude towards purchasing expensive product (Schiffman & Kanuk 2004). ” Attitude
behavior is a function of how strongly individual believes that the action will lead to
specific outcome (either favorable or unfavorable)” (rainbowlink, 2011).These behaviors
are learned and developed through experience (Kumar, 2009). Both attitude towards the
object and attitude towards behavior are a predictor of behavioral intention (Zhang).
2.3 The Concept of Purchasing Decision
Consumer Behavior is defined as the behavior that consumer displays in the searching
for, purchasing, using, evaluating, and disposing of the products and services that they
expect will satisfy their needs. Consumer Behavior focuses on how consumer make the
decisions to spend their available resources (Time, Money, Efforts) on consumption
related items. That includes what they buy, why they buy it , when they buy it, where the
buy it , how often they buy it ,how often they use it, how often they evaluate it after the
purchase and the impact of such evaluations on future purchases. Consumer behavior is
the study of when, why, how, and where people do or do not buy a product (Khosla,
2010). It blends elements from psychology, sociology, social anthropology and
economics (Kotler, 2000). It attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of individual consumers such
as demographics and behavioral variables in an attempt to understand people's wants
(Armstrong, 1991).
While Bennett (1995) defines consumer behavior as the dynamic interaction of affect
and cognition, behavior, and environmental events by which human beings conduct the
exchange aspects of their lives,” Blackwell et al. (2001) emphasize product disposal in
their definition of consumer behavior as those activities people undertake when
obtaining, consuming and disposing of products and services.” However, Peter and
Olson (2005) assert that consumer buying behavior can be defined in the light of
15
interactions and exchanges of experiences. They defined that consumer behavior
involves the thoughts and feelings people experience and the actions they perform in
consumption processes. It also includes comments from other consumers,
advertisements, price information, packaging, product appearance; is dynamic, involves
interactions and exchanges.” Solomon (2009) however takes a more holistic view of the
concept encapsulating the marketing of a product offering (broadly defined) from
inception to 8 obsolescence „consumer behavior is‟ the study of the processes involved
when individuals or groups select, purchase, use, or dispose of products, services, ideas,
or experiences to satisfy needs and desires.
These stages were introduced in 1910 by a psychologist name (Dewey, 1910).
According to Dewey, these stages are a framework to evaluate a consumer buying
behavior leading up to and after the purchase transaction have been completed. With that
being said, a consumer was not always following these steps with every purchase. For
example, if a consumer wants a pack of M&Ms, the buyer was identify a need (step one)
then skip to step four (purchase decision). There was no need to search for information
on the product or evaluate alternatives.
2.3.1 Need Recognition & Problem Awareness
The buying process starts with need recognition which the buyer recognizes a problem
or need. The need can be triggered by internal stimuli when one of the person’s normal
needs, for example, hunger or thirst was rises to a level high enough to become a drive.
A need can also be triggered by external stimuli (Kottler, 2011) For example, an
advertisement or a discussion with a friend might get you thinking about buying a soft
drinks like Coca-Cola. At this stage, the marketer should research consumers to find out
what kinds of needs or problems arise, what brought them about, and how they led the
consumer to this particular product.
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2.3.2 Information Search
An interested consumer may or may not search for more information. If the consumer’s
drive is strong and a satisfying product is near at hand, he or she is likely to buy it then.
If not, the consumer may store the need in memory or undertake an information search
related to the need. Consumers can obtain information from any of several sources.
These include personal sources (family, friends, neighbors, acquaintances), commercial
sources (advertising, salespeople, dealer Web sites, packaging, displays), public sources
(mass media, consumer rating organizations, Internet searches), and experiential sources
(handling, examining, using the product). The relative influence of these information
sources varies with the product and the buyer. Generally, the consumer receives the most
information about a product from commercial sources those controlled by the marketer.
(Kottler, 2011)The most effective sources, however, tend to be personal. Commercial
sources normally inform the buyer, but personal sources legitimize or evaluate products
for the buyer.
2.3.3 Evaluation of Alternatives
The stage of the buyer decision process in which the consumer uses information to
evaluate alternative brands in the choice set. (kottler,2011). The information evaluated
will be used in different consumer to choose what they think its best, in order to do so,
he will evaluate attributes on two aspects such as objective characteristics(features and
functionality of the product) but also subjective (perception and perceived value of the
brand by the consumer or its reputation),(Blackwell,1968).
2.3.4 Purchase
In the evaluation stage, the consumer ranks brands and forms purchase intentions.
Generally, the consumer’s purchase decision will be to buy the most preferred brand,
but two factors can come between the purchase intention and the purchase decision. The
first factor is the attitudes of others and another is unexpected situation factors (Kottler
2011).
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2.3.4.1 Group of Purchasing Decision
Complicated Decision
Decisions that are adopted to solve the complex problems are consistent with traditional
decision making. Decision-making processes for solving complex problems, usually
start with motivated to achieve a good. Decisions made are along with a lot of risk. The
consumer tries to collect available information as possible, including its memory (local
search) also external sources (external search). Each product base on importance of
decision, carefully evaluated and between assessments the choice is made according to
features of a particular brand.
Limited Decision Making
Limited decision making is usually easier and more intelligible. Buyers have little
incentive to collect information and are not strict evaluate the options. They use simple
rules to select one of the options such cognitive causes the consumer instead of
restarting making decision in future, to be able to a general guideline for this purpose.
Regular Decision Making
Complex and time-limited decision making some measurements and data collection
provided. Many purchase decisions are made when the goods seen within the store shelf.
Selection of such goods, with minimum effort and without prior knowledge of product
features usually takes place automatically. Purchase based on habit and repeat purchase
behavior allows consumers to spend less energy to decision of buying this product.
Decision making to purchase goods and services in these three categories can be better
examined by five factors:
▪ Level of consumer involvement
▪ Time of the cost of a good or service
2.3.5 Post-Purchase
The marketer’s job does not end when the product is bought. After purchasing the
product, the consumer will either be satisfied or dissatisfied and will engage in post
18
purchase behavior of interest to the marketer. What determines whether the buyer is
satisfied or dissatisfied with a purchase? The answer lies in the relationship between the
consumer’s expectations and the product’s perceived performance.
Figure 2.1: Concept of Purchasing Decision
Source: Purchasing Decision Process (Kotler, 2012)
Figure 2.1 above explain purchasing decisions process that consumer they are used.
Several models are developed with a view to provide explanations for the purchasing
decisions of the consumer. Although they vary in form of presentation, most of them are
composed of stages such as pre-purchase, purchase and post-purchase (Hoyer, 2001;
Jaworski, 2003). Based on this loophole, Jaworski, (2003) further propose the circle of
consumption that recognize purchasing processes as a loop, comprising acquisition of
goods and services, consumption, as well as disposal of used goods. Stage one is need
recognition which occurs when a customer is aware of a difference goods between their
perception and the actual satisfaction level (Solomon et al., 2006). And it’s divided into
two kinds of needs such as functional needs and psychological needs. Functional needs
are related to the performance of the product whereas psychological needs. Stage two is
the search of information. The length and depth of search vary for different customers
Need Recognition & Problem Awareness
Information Search
Evaluation of Alternatives
Purchase
Post-Purchase Evaluation
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and depend on variables like personality, social class, income, size of purchase, past
experiences, prior brand perceptions as well as customer satisfaction. As mentioned by
(Solomon et al. 2006), Information search is the process by which the consumer surveys
his or her environment for appropriate data to make a reasonable decision, and it divided
into pre-purchasing search and ongoing search, even in coca cola customer they follow
this process in order to purchase. Pre-purchase search is initiated when consumers
recognize a need and hence look for more information from the marketplace.
Stage three comes to the pre-purchase evaluation that consumers compare between
different products and brands to make a purchasing decision. In this stage, consumers
pay particular attention to the attributes which are most relevant to their needs (Kotler et
al.2005). According to Porter (2004) firms can create value by providing lower price or
unique offers to the customers so as to excel their competitive advantages over the
others. Stage four refers to the purchase decisions made by the consumers after
evaluating the offers from different retailers. As stated by Blackwell et al. (2006), there
are two phases contributing to the decision making processes, including retailer and in-
store selection. In stage five, customers begin consuming the products whereas in stage
six, customers evaluate the consumption process. The firms need to think about the
possibility of remarketing. This stage is crucial since customers could be possible to
make repeat purchases provided that they are satisfied with the aforementioned stages
(Jaworski, 2003).A large amount researches about purchasing decisions making put the
focus on the cognitive process. Consumers decision making process was described as
complicated with many factors generate problem recognition before a series of actions
was initiated to reach a result (Erasmus et al., 2001). Consumer decision making process
describes the steps of a consumer’s decision making. Consumers first identify their
needs and then collect information and that was like in purchasing decisions process,
evaluate the alternatives and finally make the purchase decision. All these actions are
determined by both psychological and economical factors, and are affected by
environmental factors like cultural, group, and social values (Klein, 1989).
In the psychological aspect, consumers are viewed as irrational, impulsive and passive
20
when making decision (Zaichkowsky,1991). Some psychologists presume consumers
would use rational shortcuts to make decisions. They think that consumers are not
perfect decision makers and their minds are limited to handle and recall the information.
For the economical perspectives.
2.4 Hierarchical Theory of Needs and Purchasing Decision
The first step in consumer purchasing process is the need recognition or motivation,
where consumers realize that s/he has need for something.Maslow theorized that people
have to fulfil their basic needs such as food, water, shelter and clothes that develop the
Hierarchy of Needs model in 1940-50s USA, and the Hierarchy of needs theory remains
valid today for understanding human motivation, management training, and personal
development. Indeed, Maslow's ideas surrounding the Hierarchy of Needs concerning
the responsibility of employers to provide a workplace environment that encourages and
enables employees to fulfil their own unique potential (self-actualization) are today more
relevant than ever. Abraham Maslow's book Motivation and Personality, published in
1954 (second edition 1970) introduced the Hierarchy of Needs, and Maslow extended
his ideas in other work, notably his later book toward a psychology of being, a
significant and relevant commentary, which has been revised in recent times by Richard
Lowry, who is in his own right a leading academic in the field of motivational
psychology. The Maslow's Hierarchy of Needs five-stage model below (structure and
terminology - not the precise pyramid diagram itself) is clearly and directly attributable
to Maslow; later versions of the theory with added motivational stages are not so clearly
attributable to Maslow. These extended models have instead been inferred by others
from Maslow's work. Specifically Maslow refers to the needs Cognitive, Aesthetic and
Transcendence (subsequently shown as distinct needs levels in some interpretations of
his theory) as additional aspects of motivation, but not as distinct levels in the Hierarchy
of needs. Where Maslow's Hierarchy of needs is shown with more than five levels these
models have been extended through interpretation of Maslow's work by other
people.Consumers need for uniqueness is symbolic because it drives consumption
decision about how s/he expresses his/her own identity. Achievement, status, affiliation
21
and belonging are symbolic because they reflect consumers‟ social position or role.
Hierarchy of needs pyramid diagrams and models below.
Figure 2.2: Maslow’s Hierarchy of Need
Source: Maslow's Hierarchy of needs (Kotler, 2012)
2.5 The importance of purchasing decision
(Schewe2003), marketing concepts and application United State of America, and
Robertson et all (2006), Consumer Behavior: Fundamentals and strategies, portray that
“purchasing decision is very important to both consumers and manufacturers, this is
because a final consumers before decide what to buy her or she has to think “Why do I
buy?” and “to whom shall I buy?” All of these will help a person to buy a product which
will satisfy his or her needs, wants and expectation. On other hand the manufactures and
small business also have to know the purchasing decision of the final consumers so as to
22
target well the market according to specific products and services required by those
consumers.
2.6 Factors influencing Purchasing Decision of final consumer
2.6.1 Subjective factors
The subject factors affecting consumers’ purchase behaviour mainly relate to the
consumers’ subject consciousness, both positive and negative. Subjective factors were
affected by external environment or decided by individual demands which mean
different consumers would have different reactions. Consumers who are easily affected
by the external environment would have a considerable impact on cognition (Alexander
2006). Consumers’ personality would also affect their purchasing decisions making.
2.6.2 Individual demands
There were several demands for consumers to make decision making. One of the
demands is to make decision on how can save time for purchase (Hawkins, 2003) and
was used Hong Kong such a modern city that concerns time efficiency and was used for
final consumer when they purchase product through online business, saving time is
important to people in all aspects includes purchasing.
2.6.3 Final Consumers Attitude
Final consumers were able to purchase more and more efficiently due to the rapid
development of internet technology which provide a more and more advanced online
purchasing platform to consumers. The technology acceptance model (TAM) (Childers
et al. 2001; Koufaris (2002) stated two significant factors that affect an individual’s
attitude and intention to use new technology.
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2.6.4 Objective factors
2.6.4.1 Price
Actual prices are the discounts or surcharges relative to price expectations, according to
prospect theory (Kahneman, 1991); this perception affects the demands for a firm’s
product, and hence its profitability.
Final consumers have a variety of prices in their memory against which they evaluate
the 16current price of a product. The upper price limit is the price above which the final
consumer considers the product as expensive or belongs to a different sub-category.
While the lower price limit is the price below which the final consumer considers the
product to be of poor quality. The acceptable price range is the difference between the
two limits.
2.6.4.2 Quality
Quality means providing pleasant to final consumers. Quality can also be regarded as
one of the key components of a business’ competitive advantage. Thus, the quality of
products or services is important to a business (Sjoblom, 1996). There are five
approaches to define quality, they are: the transcendent approach, the product-based
approach, the user-based approach, the manufacturing-based approach and value-based
approach (Garvin 1984). The transcendent approach assumed quality is both absolute
and generally identifiable. The product-based approach states that the differences in the
quantity of ingredient or attribute of a product reflect in divergence in quality of that
product. The user-based approach states quality is the degree of how a product or service
meets or go beyond consumers’ expectations. The manufacturing-based approach
defined quality as conformance to requirement. That means how a product or service
meets a certain design standards. Finally the value-based approach considers quality
with performance at acceptable price or acceptable cost.
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2.6.4.3 Trust towards purchasing environment
Buyers and sellers develop a degree of trust between each other. Sellers should trust in
their customers in that they are able to choose goods and services, purchase them, and
pay for them. On the other hand, customers should trust in sellers in that they can
provide their needed goods and services and are able to distribute (or deliver) them if
necessary (Zargar, 2001). To maintain the business relationship and reach the goal
between sellers and buyers, trust is a necessary factor. When people trust in each other,
it means that they keep their promises they made during their business relationship. In
the virtual market environment, buyers usually see pictures of their goods to be
purchased, not the goods themselves. Many promises about the quality of goods and
services are made. In the e-commerce environment, since it is very hard to take legal
actions against sellers or customers in case of any fraud or dispute, therefore, trust is
highly important in conducting e-business transactions.
2.7 Empirical Literature Review
According to Richardson (2005), “during the 1990s and early 2002s. Coca-Cola
Company conducted a Marketing research in United States of America under a problem”
“Final consumer purchasing decision behaviour” The problem arises the little as
“Assessment of new taste of product to Final purchasing consumer decision behaviour”
The general objective of the study was to investigate if new taste of the same product
will affect the purchasing decision behaviour of final consumers. The company
produced the “Current Coke” with new taste compared to the “Old Coke” without
informing the consumers. The company selected New York City as a place to conduct
the study and it used an interview in collecting the information from each consumer.
The observation was that, consumers after recognizing that the “Current Coke” taste
better than Old Coke, they stopped to purchase old coke; Therefore purchasing decision
behavior of final consumers an old coke affected by new taste of current coke. The
general objective of the company’s study is similar to the objective of this research
proposal, because what caused final consumers not to re-purchase old coke is influential
25
factor which is taste, which seems to be different from current coke,” hence final
consumers become loyal to it. Due to this fact, taste may be one among the factors
which may affect final consumers purchasing decision as introduced in the hypothesis of
this study. The study conducted help, the company to defend against the competitors
who produce the same taste products similar to the Coca-Cola Company.
The company used random sampling technique in order to get and gather the data from
the customers, an interview was the best method of data collection used by the company
and statistical analysis used as method of data analysis. The objective of the study
conducted by that company mot because the final consumer’s purchasing decision
affected after the change of the taste of old coke, hence taste change to the same product
affect the purchasing decision of final consumers.
The study conducted by Coca-Cola Company has several strength and weakness,
starting by strengthen of the study is that the company became aware that if the
competitions such as SBC-Company (Pepsi) decide to compete by producing the same
products with different taste will affect the market share of their products (soft drinks)
hence, Coca-Cola Company came-up with varieties of soft drinks with different taste in
order to maintain the market and market share of their products.
Apart from that, the study conducted by Coca-Cola Company has some weakness such
as the company selected only a single factors which is taste to be tested and investigated
if will affect the purchasing decision behavior of the final consumers while there are
several factors which may affect the purchasing decision of final consumers as shown in
hypothesis and textual Literature of this research proposal.
In order to address the weakness made by Coca-Cola Company on their study, this study
will investigate the all other factors which may affect purchasing decisions of final
consumers as shown in both hypothesis formulation and textual literature, which will be
very advantageous to those companies dealing with production of soft drinks and
companies which produce other goods and services apart from soft drinks.
26
Shapiro (2002)noted that “final consumers purchasing decision takes place as follows;
Firstly Final consumers identify a problem, for example coldness during winter season,
then they think their solution is to buy the coats but before buying the coats, they think,
also can buy the Jackets, after that they search for information about the coats and
Jackets which their want to purchase, these information include quality, color, size,
design, price and brand name as well as fashion, then consumers evaluate alternatives,
he or she has a lot of information searched about their problem’s solution, now they
evaluate the best information of his /her own choice. Close to this is purchase, here now
consumers buy the particular product due to his or her best alternatives. Finally, post-
purchase behavior occurs, consumers will measure the expectation and the performance
of the products bought, if their expectation met, consumers will become loyal to that
products, if not consumers will talk bad against these products purchased.
Harrel, (2005) shows that “Purchasing decision of final consumers may be affected by
the factors such as marital status, family and taste. Marital status, this is the state of
being married or not married, consumers who married and have children or not, their
purchasing decision is different from consumers who are single, family, within a family
members such as father, mother, brothers, uncle aunt and others may influence you in
purchasing decision towards a certain products or services. Taste, the different taste of a
product may influence you in purchasing decision as final consumers as it explained in
empirical Literature.
Both Anderson (2000) and Lascu (1999) wrote on their articles that “Age, Gender, and
occupation may affect purchasing decision of final consumers as follows; Age, the
purchasing decision of children, youths and older is different, youth’s purchasing
decision is very complicated according to their age, children and older their purchasing
decision is easy because they are not influenced by life style and fashion. Gender, the
purchasing decision of males is different to females due to particular products used by
these two genders. Occupation, the job of a person holds determine purchasing decision,
for example, Lawyers, soldiers, managers, mechanics do differ in purchasing decision,
each one has its own products which preferred due to occupation.
27
Kinner, (2001) wrote “Time expenditure, Personality and attitude may affect purchasing
decision of final consumer either directly or indirectly. Time expenditure, consumers
who use a lot of time in their job have no enough time to purchasing decision is low,
while consumer who spend a lot time staying idle have enough time to visit the market
places hence high purchasing decision. Personality, the way you appear, behave and run
your life will affect your purchasing decision towards a certain products or services.
Attitudes a person has positive or negative attitude towards a certain products or services
both positive and negative attitude affect purchasing decision of final consumers.
Gradeke (2005) portrays the following as factors which may affect purchasing decision
of final consumers, Culture, Reference groups, consumer interaction, Diffusion of
innovations. Culture most of consumer influenced by either their original culture or
foreign culture in purchasing decision, there are some products which are common to a
certain culture but consumers from another culture may adopt and purchase these
products or services, for example wearing of min-skirts and tight jeans is not African
culture but females from Africa purchase.
2.8 Research Gap
The purchasing decision of final consumers is affected by several combinations of
factors including internal and external factors but not a single factor. Thus why this
study was investigate test and describe to you the all factors which was affect the
purchasing decision of final consumers so as to fulfill the gap made by other scholars, in
addition to that this study was give you the solution to be followed and taken so as to
solve and control these factors which may lead to lack of market to other products and
services. Several Scholars wrote something concerning the same problem to this study
but most of them put much of their effort on testing and researching only single factor,
they did not research the whole factors which affect the purchasing decision of final
consumers, for example around 1990 and 2002 conducted a research on the same
problem by Coca Cola Company but only single factor was tested and investigated, that
research conducted by Coca Cola Company.
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2.9 Definitions of Key Terms and Abbreviations
Purchasing- This is the act of buying goods or Services from a certain shop.
Decision-This is the situation of taking action to do something.
Final Consumer- Is any person who buys any goods for his or her own use or family
use or household use.
Income-This is the money someone get in a day, week or month.
Education- Include knowledge, idea, skills which transmitted from one person to
another person.
Supplier-People who distribute products or services to other people for sale
Retailers- People who buy products and re-sale to final consumers or other people.
Wholesalers- People who buy products and sale to retailers, or other wholesalers.
Purchasing decision process- Are the steps in which a person follow before buying or
reaching decision to buy.
Peasants- People who deals with Small Cultivation.
Marital Status- Involve the act of being married or marry.
Location- Place someone leave or come from.
Fashion- Is a style of something such as product or service.
Time expenditure- Time used by someone.
29
Personality- The way a person appears including behavior
Attitudes- Are beliefs of someone towards something including positive or negative.
Brands- Is a name or symbol of a company on product produced
Problem Identification- Ability to recognize a need.
Information Search- Situation of finding more data about features of a certain product.
Evaluation of Alternatives- Situation of choosing the best feature of product someone
attracted with.
Post Purchase Behavior- Feedback and Suggesting Someone has after using a certain
product or service including positive or negative.
2.10 Conceptual Framework
The conceptual framework shows if subjective factors and objective factors were
influenced consumer buying behavior and hence consumer can made decisions on
purchasing through different process either by need recognition & problem awareness,
information search, evaluation of alternative, purchase or post-purchase evaluation. In
addition the model shows that effects of consumer buying behavior on purchasing
decisions is determined by variables as shown in the figure below;
30
Figure 2.3: Conceptual Framework
INDEPENDENT VARIABLES DEPENDENT
VARIABLE VARIABLES
Source: Researcher (2015)
The figure 2.3 above presents the conceptual framework on the factors influencing
purchasing decision of the consumers which are income level, price, attitude,
advertisement, social influence, fashion, education and family life cycle. The conceptual
framework therefore shows the relationship between the variables, thus are independent
and dependent variables. Independent variable are subjective factors, objective factors
and consumer buying behavior and dependent variable is purchasing decisions process
with its elements.
Consumer buying
behavior
Income level
Price
Attitude
Advertisement
Social influence
Fashion
Education
Family Life Cycle
Purchasing Decisions
process
Need recognition&
Problem awareness
Information search
Evaluation of
Alternative
Purchase
Post-purchase
Evaluation
Subjective factors
Individual
factors
Final consumers
attitude
Objective factors
Price
Quality
Trust towards
purchasing
environment
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CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter contains discussion on various methodological techniques used in the
study. The section presented details of the involves research design, population of the
study, sample size, sampling techniques, data collection and conclusion, description
reliability of instruments, data collection procedures and data analysis techniques.
3.1 Description of the Study Area
The study area was Coca cola Kwanza Bottlers ltd is located at Mikocheni in Dar-es-
salaam. Kinondoni was selected because it is the most large counsel in Dar-es-salaam
and therefore Kinondoni faces many challenges in service delivery, according to the
2012 census, Kinondoni Municipality has a population of 1,800,000 people with a
growth rate of 5% and municipality covers an area of 531 square kilometers
(www.kinondonimc.go.tz/in 1.28 pm).Kinondoni municipal council has four divisions
known as Kawe, Magomeni, Kibamba and Kinondoni; and sub divided into 171 sub-
wards.
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Figure 3.1: Description of the Study Area
3.2 Research Design
According to Kothari (2004). Research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure.
The research design which was used in this study was cross- sectional design because it
allows the collection of data at one point to other, which was conducted in Kinondoni
District at Dar es Salaam city.
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3.3 Population of the Study
The population of this study comprised workers of Coca cola and the consumers of coca
cola in Kinondoni district which was divided into four divisions such as Kibamba,
Kawe, Kinondoni and Magomeni.
3.4 Sample Size and Sampling Techniques
3.4.1 Sample size
Sample size is a subset of the population that is taken to be representative of the entire
population (Mugenda & Mugenda, 2003). The sample size of this study was
120respondents. Such were 100 consumers and 20 staff of Coca cola.
3.4.2 Sampling technique
Sampling is a subset of the population that is representative of the entire population. OR
is a process of selecting a number of individuals for a study in which a way that the
individuals selected represent the large group from which they were selected (Mugenda
& Mugenda, 2003).The researcher was used non probability sampling such as purposive,
convenience sampling in selecting the sample size and the population to be conducted in
the study.
3.4.2.1 Purposive sampling
Purposive sampling was used to obtain information from the consumers concerning their
purchasing decision. The technique used to select 20staff because;
i) This study wanted to obtain data to the consumers and the researcher is able
to answer research questions and to meet objectives of the study.
ii) It involves personal judgments in selecting sample.
iii) Researcher was used purposive because our cases were informative that
means they want to inform consumers about purchasing decisions.
34
3.4.2.2 Convenience sampling
Convenience sampling as the name implies is a specific type of non-probability
sampling method that relies on selection of respondents from targeted conveniently in
study area. Therefore, this technique was used in the selection of consumers who were
available at field during the study and who were willing to cooperate in respond to some
questions.
3.5 Data collection methods
Both primary and secondary data were used.
3.5.1 Primary Data Collection Method
Refers to gathering specific information aimed at providing or refuting some facts. In
data collection the researcher must have a clear understanding of what they hope to
obtain and how they hope to obtain it. According to (Kombo & Tromp, 2006). The study
used primary data such as interviews and questionnaire and also they used secondary
data.
3.5.1.1 Questionnaires Method
This is the method of data collection whereby a researcher prepares some investigative
questions concerning the research problem which would be set to form questionnaire.
These questions was put on the piece of papers then distributed to the respondents (final
consumers).The respondents after getting the questionnaire have to answer the questions
as instructed by researcher. Most of questionnaires use simple language in order that
every respondent can understand what is needed, many questionnaires are closed-ended
questionnaire which require the respondents to give short answer. This method is good
because the respondents required either to tick or to circle the correct answer. This
method is good because it gives the respondents enough time to describe the questions,
as well as it does not require name or age of respondents which is very challenge to most
respondents.
35
3.5.1.2 Interview Method
Interview guide and schedules was prepared specifically, interview was addressed to the
respondents orally either face to face or by telephone concerning the research problem,
generally an investigative questions was used because they fulfill the objectives of the
study. The researcher was interviewing the respondents during day to day activities. This
method has high rate of response to the respondents, the data obtained are primary which
are very accurate from the selected field area.
3.5.2 Secondary Data Collection Method
Secondary data used for this research were collected from various sources including
relevant books, previous researches, Journals, scientific Articles and other sources on
internet. This helps the researchers to save time and minimize cost (Mark Saunder,
philip lewis, Adrian Thornhill, 2009, p. 272) Secondary data are data which was
collected from different written documents concerning the research problem. And data
involved was from different documents from the suppliers, wholesalers, retailers, large
and smaller business owners who deal with sales of goods and services; that helped a
researcher to get more information towards the research problem.
3.6 Data analysis Methods
Data analysis refers to examining what has been collected in a survey or experiment and
making deductions and inferences (Kombo& Tromp, 2006). Descriptive methods were
used to analyses the data. Both qualitative and quantitative data analysis methods were
used to analyze data in this study.
3.6.1 Quantitative Data Analysis
Quantitative data analysis involves collecting and converting data into numerical form
so that statistical calculations can be made and conclusions drawn, in this study
quantitative data was used to analyze data in frequencies, mean and percentages in order
36
to convert data into numerical form and formulate statistical data of how many
respondents were affected in order to purchase.
3.6.2 Qualitative Data Analysis
Researcher was interested to use qualitative in order to gain a rich and complex
understanding of respondents experience and not in obtaining information which can be
generalized to other larger groups. Since data were analyzed descriptively.
3.7 Reliability and Validity
Reliability
For a research instrument to be reliable, it must be capable of yielding consistent results
when used more than once to collect data from two samples drawn randomly from the
same population (Mugenda & Mugenda, 1999).Reliability refers to the degree to which
measure of stability and consistency of a concept. Reliability is particularly at the issue
connection with quantitative research (Bryman & Bell, Business Research Method,
2011). Or Reliability occurs when different researchers in different occasion find the
same results and make sense (Saunders et al., 2003).
Validity
Validity is the degree to which the findings really are what they appear to be about.
Basing on the evidences and data used and those which were collected from the field,
Validity concerned with the integrity of the conclusions that are generated from the
research. Or Validity is true measurement in order to approve that a deep study of varies
related course should be considered (Bryman & Bell, Business Research Method, 2011).
This thesis considered two types of validity.
Measure validity- This criterion usually applied in quantitative research method to
determine if the taste seems to measure what is intended to measure .The questions
raised during the interviews with staff was managed to be performed objectively,
followed structured questions in order to reduce any possible influences might skew the
37
research as well as having impact up on the validity of findings. (Bryman & Bell,
Business Research Method, 2011)
Construct validity- “The construct validity refers to how well the study’s results support
the theory behind the research and if the theory supported by the findings provides the
utmost existing explanation of the results, (Graziano & Raulin 2010)”. Constructed
validity is evaluated by the questioners and the underlying theories (Bryman & Bell,
Business Research Method, 2011). The questions designed for the study are considered
carefully so that all questions selected are related to the theory presented.
Therefore the study was valid and reliable since the data collected were direct from the
study and were collected by unbiased method of data collection.
3.8 Ethical Consideration
Ethics are moral codes of conduct, rules for how someone should operate that can be
followed as situations demand. Knowledge of right and wrong is not enough; the
individual must want to do what is right depending on their moral state no matter what
the situation (Dwyer, F. 2009). Ethics represent a set of moral standards, different from
laws, that takes into consideration the consequences of actions (Beekun et al., 2003). In
the marketing field, ethics conceptualization is also divergent (Nantel and Weeks, 1996;
Sorensen, 2002; Robertson and Crittenden, 2003; Svensson and Wood, 2008). It is
assimilated to rules judging what is right or wrong, good or bad, concerning human
conduct in business (Beekun et al., 2003).In purchasing decision there were several key
issues concerning ethics that were
Fair competition means that any competitor has equal opportunity to sell to the buyer
and equal access to information from the buyer, So Coca cola as right to make
competitions with other soft drinks companies, for example to prepare fair advertisement
which were in good ethical of the states.
38
Confidentiality, the information obtained were kept as a confidential information and
used for research purpose only.
Conflict of interest, the study does not cause conflict of interest between the researcher
and participant.
39
CHAPTER FOUR
FINDINGS AND DISCUSSION
4.0 Introduction
This chapter seeks to present major findings from data collected in the field. It includes
data presentation, analysis and discussion of the findings in line with answering the
research questions that were used to carry-out the study and therefore meet the study
objectives as proposed prior to the study. Based on the research objectives, the following
were the findings.
4.1 General characteristics of respondents
The researcher designed two questionnaires such as one for the Staff of Coca cola and
another for the consumer of Coca Cola. Researcher distributed a total of 120
questionnaires to its 120 respondents; 20 of which are Coca Cola Staff and remaining
100 which were Coca Cola consumers; but only 105 questionnaires were returned to the
researcher. The characteristics of the respondents are as shown below;
40
Table 4.1: General characteristics of respondents
Characteristics of respondents Category Frequency Percent
Gender of respondents Male
Female
35
50
41.2
58.8
Ages of respondents 0-12
13-18
19-25
26-35
36-50
51 and Above
16
24
9
4
5
27
18.8
28.2
10.6
4.7
5.9
31.8
Education level No school
Primary
Secondary
Higher learning
Masters and Above
8
15
30
22
10
9.4
17.6
35.3
25.9
11.8
Occupation
Not Employed
Employed
Self Employed
37
18
30
43.5
21.2
35.3
Source: Field Data (2015)
4.1.1 Gender of respondents
Gender differentiates purchase decision of the consumers. According to Dorota (2013)
women and men perform different roles in every household; they have different
demands for certain products as well as they behave differently in the process of
consumption. Women look for information; they want to take consideration of all their
options (Żelazna, Kowalczuk and Mikuta 2002, p. 94). Marketing strategies
differentiates gender buying behavior thus female are more emotional and easily be
attracted by advertisements compared to male (Imam, 2013).The study sought to
determine the gender of the respondents and therefore requested the respondents to
indicate their gender. Table 4.1 shows that 41.2% of the respondents were male while
58.8% of the respondents were female. The study shows that women mostly like to
purchase and drink Coca Cola than men, this is an indication that both genders were
41
involved in this study and thus the finding of the study would not suffer from gender
biasness.
4.1.2 Age of respondents
Consumer behavior change through ages (Dorota, 2013). The older the person the more
purchasing experience they have than the younger one. Older people consider diversified
option through the experience they have developed. While younger ones with less
experience rely on brand and price (Paul s., Trun K., & Alan, 1996).Thus young
generation is easily to be influenced by brand image. Table 4.1 shows that18.8% of the
respondents were between0-12 years old, 28.2% were between 13-18 years old, 10.6%
were between19-25 years old, 4.7%were between 26-35 years old, 5.9% were between
36-50 years old, 31.8% were and 51 years old and above. The study indicates that it was
necessary to get extract of information relating to age so as to get views from people
with different age groups.
4.1.3 Education Level of respondents
The combination of the respondents with a mixed level of education enabled the
researcher to extract quality information from collected data with a high level of
reliability and validity, also level of education at Kinondoni enable the respondents to
make decisions on purchasing. Table 4.1above shows education level of the respondents
who were the purchaser of the coca cola products. 9.4% were none (no school), 17.6%
were primary education level, and secondary were 35.3%, higher learning were 25.9%
and 11.8% of respondents were master’s education level.
4.1.4 Occupation of the respondents
A person’s occupation affects the goods and services bought. The study sought to
determine the occupation of the respondents and therefore requested the respondents to
indicate their occupation. Table 4.1 shows occupation 43.5% of respondents were not
employed, 21.2% of the respondents were employed while 35.3% were self-employed
42
which indicate that through their work they mostly prefer to use Coca Cola product like
Dasani.
4.2 Description on the income level earned by the final consumers
Income is the consumption and savings opportunity gained by an entity within a
specified timeframe or is the sum of all the wages, salaries, profits and interests
payments. Income is superior determinant of purchasing behavior (Dorota, 2013) .The
level of income affect the life style and attitude of a consumer. A person with high
income purchase expensive product and these with low income prefer to buy product
with lower price. The Table 4.1 shows that majority of respondents earned 0-100,000
which were equivalents to 54.1%, 23 respondents earned 100,001-500,000 which were
equivalents to 27.1%, 11 respondents also earned 500,001-1,000,000 which were
equivalents to 12.9% and minority earned 1,000,001and above which were equivalents
to 5.9%, which indicate that majority of the respondents earned nothing or low level of
income but they purchase coca cola because of the weather conditions.
4.3 Description on the area where consumers purchase coca cola in Kinondoni
district.
Placement is a way of getting the product to the consumer and/or how easily accessible
it is to consumers. And it includes channels, coverage, location, inventory, transport and
logistics. The study found that consumers mostly they purchase either to the retailers or
wholesalers.
4.3.1 Retailers
Retailing includes all the activities involved in selling products or services directly to
final consumers for their personal, no business use. Many institutions-manufacturers,
wholesalers, and retailers-do retailing. But most retailing is done by retailers, businesses
whose sales come primarily from retailing. The study found 72 respondents which were
equivalents to 84.7% suggested that they purchase from the retailers.
43
4.3.2 Wholesalers
A firm engaged primarily in wholesaling activities. Wholesalers buy mostly from
producers and sell mostly to retailers, industrial consumers, and other wholesalers. The
study found 13 respondents which were equivalents to 15.3% suggested that they
purchase from the wholesalers.
Table 4.2: suppliers of Coca Cola
Types of suppliers frequency percent
Retailers 72 84.7
Wholesalers 13 15.3
Total 85 100
Source: Field Data (2015)
4.4 Description on the factors influences Purchase Decisions by Consumers at
Kinondoni.
The researcher intended to explore on the factors influenced consumers on purchasing
Coca cola products in Kinondoni District (Dar es Salaam city). The study found there
are various factors influencing a buyer to make decisions on the product before
purchased as indicated in Table 4.3 below.
44
Table 4.3: Factors affecting purchasing decisions of the final consumers
Factors affecting purchasing
decisions
Frequency Percent
Income level
21
24.7
Price 28
32.9
Attitude 32
37.6
Advertisements 51
60.0
Social influence 27
31.8
Fashion
5
5.9
Education
8
9.4
Family life cycle
14
16.5
Source: Field data (2015)
4.4.1 Income level
Most respondents indicated they purchased coca cola occasionally, infrequently or once.
Many respondents stated the reason for lack of purchase was the income level earned.
Table 4.3 shows that 21 respondents thus equivalent to 24.7% of the sample size
suggested that income level was the factors affecting consumer to purchase Coca cola
products. Majority of the consumers in Kinondoni earned 0-100,000/= per monthly
which was equivalent to 54.1%.
4.4.2 Price
Price is the sum of all the values that customers give up to gain the benefits of having or
using a product or service. A small percentage improvement in price can generate a large
percentage increase in profitability. More importantly, as part of a company’s overall
value proposition, price plays a key role in creating customer value and building
45
customer relationships. Table 4.3 shows that28 respondents thus equivalent to 32.9% of
the sample size suggested that price was the factors affecting consumers on purchasing
decision. Example researcher found different price of Coca cola products in different
packages; 250ml was sold at 400/= and 350ml also was sold at 600/=
Consumer perception with respect to price is different and has a positive and a negative
influence on the buying behavior that can make to purchase products or not to purchase.
Consumers who prefer to buy more Coca-Cola than other soft drinks like Pepsi, Azam
cola and other soft drinks are price conscious.
4.4.3 Consumer’s Attitude
Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies
toward an object or idea. Or attitude are mental positions or emotional feelings people
have about products, services, companies, ideas, issues, or institutions and they based on
people’s values and beliefs, they are hard to change.(Alyson Ward 2009) Attitudes put
people into a frame of mind of liking or disliking things, of moving toward or away from
them. Table 4.3 shows that 32 respondents thus equivalent to 37.6% of the sample size
suggested that attitude of the consumers was the factors that hinder to make decisions on
purchasing. Example mostly they prefer to use coca cola products because of feelings
they have with coca cola.
4.4.4 Advertisement
Advertisement is a form of marketing communication used to persuade an audience to
take or continue some actions, usually with respect to a commercial offering, or political
or ideological support. Table 4.3 shows that 60% which was 51 respondents suggested
advertisement are the factor influence consumer, which indicated that they considered
advertisements when purchasing products while 40% of respondents did not consider as
a factors affecting purchasing.
46
4.4.5 Social influence
Consumer’s behavior also is influenced by social factors, such as the consumer’s small
groups, family, and social roles and status. And they purchase goods and services
through social influences as figure 4.3 shows, minority said 31.8% of respondents were
influenced by social and 68.2% majority of the respondents did not consider as a factors
of purchasing.
4.4.6 Fashion
Researcher found that respondents they make decisions to purchase soft drinks of coca
cola because of the fashion or social status they belongs for example peer group mostly
at secondary level they prefer to use coca cola as a fashion and to shows classes they
belong. Table 4.3 shows that 5 respondents thus equivalent to5.9% of the respondents
suggested that fashion is the factors that affecting purchasing decisions.
4.4.7 Education/learning
Consumer behavior depends on learning from prior experience and is largely learned
behavior. Learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior. Most of
our attitudes, values, tastes behaviors, preferences, symbolic meanings, and feelings are
acquired through learning. Different buying experiences would also be retained. All this
information stored in the long term memory is able to be recalled when needed and
would influence later purchase decisions. Table 4.3 shows that 8 respondents thus
equivalent to9.4% of the sample size suggested that education are hindering factors
affecting purchasing decisions of the consumers but in small percent.
4.4.8 Family Life cycle
Family members can strongly influence buyer behavior. People change their purchases
over their lifetimes. Marketers define their target markets in terms of family life-cycle
stage and develop appropriate plans and products for each stage. The family is the most
47
important consumer buying organization in society. In Table 4.3 shows 16.5% indicated
that they considered family life cycle as factor of purchasing decisions. According to
Kotler, (2012) life style is a person’s pattern of living as expressed in his or her
psychographics.).And marketers they use life style concept in order to understand their
customer behavior in purchasing; also the table shows how family life cycle affects
purchasing of the consumer of coca cola.
48
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter provides a summary of the whole research process. It provides a summary
of the whole study with particular reference to the problem related with the study, main
findings, conclusions and recommendations of the study. The chapter also presents
suggestions for further studies related to factors affecting purchasing decision of the
consumer of Coca Cola Company.
5.1 Summary of the Study
Purchasing decision was very important to both consumers and manufacturers, this is
because a final consumers before decide what to buy has to think “Why do I buy?” and
“to whom shall buy?” The purpose of this study was to understand the factors affecting
consumers on purchasing decisions in Kinondoni district and prefer to look on this area
and not other district because Kinondoni is a large area which have large number of
respondents. The study was used SPSS for windows for data analysis, primary data
analysis and descriptive statistics were applied in statistical analysis. Primary data
analysis and descriptive statistics show the sample sizes, frequencies and percent
variables. They are used for describing the demographic data. Through the data collected
in the questionnaire survey, company, retailer and wholesaler are able to learn more
about consumers’ purchasing behavior, allowing them to build a stronger customers
relationship and better meet consumers’ demands.
5.2 Conclusion
Through getting information from both the wholesalers, retailers and consumers in
Kinondoni District at Dar es Salaam City. The researcher was in position to conclude the
assessment of final decision making in Kinondoni District at Dar es Salaam City.
49
The majority of retailers and wholesalers understand the importance of decision making
on which products they prefer at most compared to other products. There is lack of
knowledge to final consumers on which products they can prefer to use because there
some products have a lot of sugar which is harmful to human health and different ages.
The misuse of decision making it could provide bad situation to the marketing
department of Coca Cola products because the aim of company is to create the profit.
5.3 Recommendations of the Study
The researcher came up with the following recommendation in order to make consumers
to understand purchasing decisions process and at what time to purchase and what
product do they purchase. The researcher recommends the following such that when
taken into consideration the consumer decision making process as follows:-
5.3.1 Should provide seminars and training
Seminar is a formal presentation by one or more experts in which the attendees are
encouraged to discuss the subject matter. And training is teaching or developing in
oneself or others, any skills and knowledge that relate to specific useful competencies
and it have specific goals of improving ones capability, capacity, productivity and
performance. Company should provide education or knowledge process which provided
into retailers, wholesalers and consumers in order to understand the importance of
decision making especially on different products they prefer, because majority of the
consumer they purchase products without any knowledge about the products.
5.3.2 Company should allocate resources properly
Analysis of how scarce resources are distributed among producers, and how scarce
goods and service are apportioned among consumers. This analysis take into
consideration the accounting cost, opportunity cost, economic cost and other costs of
resources and goods and services. The Coca Cola Company should allocate resources
properly to encourage marketing and distribution of their products to be in good ways
50
because some of the area in Kinondoni the distributer they failed to supply products on
time because of poor infrastructure such as roads and electricity.
5.3.3 Allocation of many distributers in order to create good satisfaction
The Coca Cola Company should allocate many distributors in order to create good
satisfaction for those retailers and it reduces transport cost which creates rise of price of
our product. And also when they are many distributers that can create are brand image
and it can increase profit of the company at the same time the consumers were purchase
more coca cola near at their premises.
5.3.4 Company should put limitation on the issue of increase of price
The Coca Cola Company should take immediate measures to those misusing and raise
the price of our products, also the company should make frequent follow-ups to the
distributers in order to make limitation of price fractuastion.
5.3.5 Company should provide frequent seminars
The Coca Cola Company should be given frequent seminars so as to enrich them with
techniques being used by marketing department to provide techniques to the retailers
and wholesalers about our products and how to compete in the market in order to make
consumers purchase our products and build brands image and loyalty.
5.3.6 Coca cola should think and look on the outcome
The Coca cola Company should use theory of Utility, whereby Utility Theory
anticipated that consumers make decisions based on the expected outcomes of their
decisions. So in this model consumers were viewed as rational actors who were able to
estimate the probabilistic outcomes of uncertain decisions and select the outcome which
maximized their well-being (Fishburn, 1968). I advise Coca cola Company to use this
theory by producing high quality products that can make consumer to purchase products
which have good outcome in order to make final consumer to continue purchase our
products.
51
5.3.7 Company should usually try to fit its products into existing attitudes
Company should usually try to fit its products into existing attitudes rather than attempt
to change attitudes. For example, today’s beverage marketers now cater to people’s new
attitudes about health and well-being with drinks that do a lot more than just taste good
or quench your thirst.
5.4 Scope for further Research
The current study was based on Coca cola Company in Kinondoni district in Dar es
salaam city .Coca-Cola Kwanza is the leading firm in the industry, with a share of the
soft drinks market. It produces over a dozen brands and employs more than 1,000 people
in its three plants in Dar es salaam, Mbeya and Zanzibar. Therefore, the result cannot be
generalized to other district in Dar es Salaam. I think further research can be done on a
large scale with large sample size not only in Kinondoni District, but also covering other
soft drinks.
Further research can be conducted in this area for finding the broad answers that this
result can be used for all studies
52
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APPENDICES
APPENDIX: I
MZUMBE UNIVERSITY
P.O.BOX 63
MOROGORO, TANZANIA
09 June, 2015.
COCA COLA KWANZA BOTTLERS LTD
P.O.BOX 78616
DAR ES SALAAM
Dear Sir/Madam
RE: INTRODUCTION LETTER
I am student of Mzumbe University of Tanzania, Morogoro pursuing Masters of
Corporate Management.
I am doing research on factors affecting the purchasing decisions of the consumers as a
partial fulfillment for Masters of Corporate Management.
I kindly respect for your assistance in filling out the attached questionnaires designed to
study some concepts related to the topic. Your replies will be confidential throughout
my research.
Your positive response is of great value.
Thanks in advance for your cooperation.
Yours sincerely
……………………………
CLARA KAKIZA, W
56
APPENDIX: II
MZUMBE UNIVERSITY OF TANZANIA.
Miss Clara Kakiza W, MBA-CM at Mzumbe university of Tanzania (MU) pursuing
(Masters of Corporate Management). I beg your assistant in answering questions in
order to enable me to accomplish my research through your opinion on factors affecting
the purchasing decisions of the consumers in Kinondoni District at Dar es Salaam. From
this research we expect to impact knowledge to societies and all communities that can
make he/her to purchase quality products.
QUESTIONNAIRES TO THE CONSUMERS.
1. Name of the consumer…………………………………………….
2. Place/location (Please tick where appropriate)
i. Kawe { }
ii. Kibamba { }
iii. Kinondoni { }
iv. Magomeni { }
3. Gender Male { } Female { }
4. Education level ()
i. No school { }
ii. Primary { }
iii. Secondary { }
iv. Higher learning { }
v. Masters and above { }
5. Age
i. 0-12 { }
ii. 13-18 { }
iii. 19-25 { }
iv. 26-35 { }
v. 36-50 { }
vi. 51 and above { }
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6. Marital status
i. Single { }
ii. Married { }
iii. Divorced { }
iv. Widow { }
7. Occupation
i. Not employed { }
ii. Employed { }
iii. Self-employed { }
8. What monthly income level do you hold?
i. 0 - 100,000 { }
ii. 100,001- 500,000 { }
iii. 500,001 – 1,000,000 { }
iv. 1,000,001 and above { }
9. Where do you mostly purchase Coca-Cola products?
i. Retailer { }
ii. Wholesaler { }
iii. Both { }
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10. What are the factors influencing your purchasing decision?
Factor Tick
Income level
Price
Attitude
Advertisement
Social influence
Fashion
Education
Family life cycle
If you tick others please mention ……………………………
11. Is your purchasing decision affected by different
conditions as specified? (please tick)
i. Cold weather { }
ii. Hot weather { }
iii. Cool weather condition { }
12. What are the purchasing decision processes do you use?
(please tick where appropriate)
Process Tick
Need recognition and problem awareness
Information search
Evaluation of alternatives
Purchase
Post purchase evaluation
THANK YOU.
59
APPENDIX: III
QUESTIONNAIRES TO STAFF
1. Name of the member……………………………………………………..
2. Position
i. Manager { }
ii. Employee { }
iii. Other…………………………………….
3. Gender Male { } Female { }
4. Education
5. Age
6. Marital
7. How long have you been working with this company?
i. 0 - 1 { }
ii. 2 - 5 { }
iii. 6 and above { }
8. Why do you think many consumers in Dar es Salaam city like to drink your
products?
……………………………………………………………………………………
……………………………………………………………………………………
………………………………………………………………………….……….
9. Which criteria as a department do you look when choosing types of suppliers in
order to reach to your consumers on time and at the same price?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
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10. What factors do you consider to influence purchasing decision of Coca-Cola
products?
Factor Tick
Income level
Price
Attitude
Advertisement
Social influence
Fashion
Education
Family life cycle
Other……………………………………………..
