Académique Documents
Professionnel Documents
Culture Documents
By
JUDITH NYAKERARIO OBAE
HD211-035-0039/2012
AUGUST, 2015
DECLARATION
This Proposal is my original work and has not been presented for a Degree in any
other University. No part of this research should be reproduced without my consent
or that of the Jomo Kenyatta University of Agriculture and Technology.
DEDICATION
2
I aspire to dedicate this project to my family and closest friends of whom through
their support and prayers I managed to complete this research.
ACKNOWLEDGEMNT
First, I want to thank the Almighty God for giving me this opportunity, strength,
wisdom and understanding. Were it not for his grace, I wouldnt have reached this
far. I will forever be indebted to him.
I also wish to acknowledge all others, such as family and friends, who gave me
support and encouragement, accorded me through their valuable discussions that
assisted me to complete my research project.
May God bless you all.
Table of Contents
Declaration......................................................................................................ii
Dedication......................................................................................................iii
Acknowledge..................................................................................................iv
List of tables.................................................................................................viii
List of figures.................................................................................................ix
List of Abbreviation........................................................................................x
Abstract..........................................................................................................xi
CHAPTER ONE: INTRODUCTION.........................................................1
1.1 Background...............................................................................................1
1.2 Statement of the Problem..........................................................................3
1.3 Objectives of the Study.............................................................................4
1.3.1 Main objective........................................................................................4
1.3.2 Specific objectives.................................................................................4
1.4 Research questions....................................................................................4
1.5 Scope of the study.....................................................................................4
1.6 Significance of the study...........................................................................5
1.7 Definition of key terms.............................................................................5
CHAPTER TWO: LITERATURE REVIEW.............................................6
2.1 Introduction...............................................................................................6
2.2 Theoretical Framework.............................................................................6
2.2.1 ................................................................................................................6
5
5.1 Introduction.............................................................................................35
5.2 Summary of Major Findings...................................................................35
5.3 Conclusion...............................................................................................37
5.4 Recommendations...................................................................................38
5.5 Proposed Areas for Further Research......................................................38
References.....................................................................................................39
Appendix I: Introduction letter......................................................................42
Appendix II: Questionnaire...........................................................................43
APPENDIX III: The Work Plan....................................................................45
Appendix IV: Budget.....................................................................................46
ABSTRACT
The general objective of this study was to investigate factors affecting purchasing
decisions of consumers in the book industry in Nairobi. The specific objectives
were therefore to find out the relative importance of these factors, the individuals
that influence purchasing decision and their roles and establish considerations for
the consumers making the purchase decision. Statement of the problem highlights
the need for the research; objectives of the study which addresses the purpose of
research; the methodology which addresses the plan of action i.e. how the project
will be carried out in terms of sample size, sampling design, data collection and
data analysis; the work plan which is the time-frame i.e. dates for competition of
all activities or tasks, their sequence and interdependence, the budget i.e. the cost
of the research. The questionnaires in this study were used to collect primary and
secondary data.
-The significance of this study is that the most challenging concept in marketing
deals with understanding why buyers do what they do or dont do.
CHAPTER 1: INTRODUCTION
Starting out as a single operation based in Nairobi, Books First has now grown to
have a number of branches in Nairobi and Mombasa. The company also has a
chain of successful restaurants and cyber facilities at each bookshop with new
services being announced regularly. A strong threshold that is also convenient for
the immediate customer.
After over ten years of serving book lovers the company has come to understand
what East Africans love to read. And, over the years, their bookshops and selection
has changed to meet these expectations. For example, they discovered that children
of all ages are truly mad about books and so they have brought in a huge selection
of titles to satisfy their reading appetite. Reading has never been as much fun for
everyone. Many companies have also discovered the use of books to assist in
training their staff to international levels. Sales and Marketing, Leadership and
Team Work, Human Resources, Strategy and Project Management - all of these
areas are served with books from the best and brightest minds in the world. They
make a great effort to bring in an outstanding selection of titles for business
organizations.
Then they established that Kenyans cannot get enough Inspiration and Motivation
books. And so they made sure there is enough Joel Osteen, Joyce Meyers, Anthony
Robbins and Napoleon Hill among other popular authors in this genre on our
shelves. They also committed themselves to bringing in the latest bestselling
fiction and non-fiction, biographies, cookery books, and art and crafts. Books First
therefore aim to satisfy each individual giving them a variety to select from.
Many of their best bookshops are located inside the larger Nakumatt stores, which
has been a passionate supporter and that has allowed them to bring their book
shops to the entire region of Kenya, Uganda, Tanzania, and Rwanda.
10
In the eleven years the company has been in operation, Books first has carved a
niche for itself as a unique book store offering a unique experience of book
shopping at the comfort of the consumer. The company is best known for its
commitment to providing quality service in the expected time at a competitive
price to the potential customers. The difficulty arises when it comes to dealing with
a substantial amount of vital information about customers, customers future
performance and securing of new sales from existing and new customers. Due to
unexpected change in circumstance (economy), it is highly believed many things
have changed but the most effective that am going to focus on is the consumer
purchasing decision. How best can Books First promote readership in various if not
all areas in Nairobi while still providing quality service and meeting the
requirements? I believe by engaging consumers contribution to the later findings
of this research, I will be convinced the problem is solved.
12
13
CHAPTER 2:
LITERATURE REVIEW
2.1 Introduction
This chapter presents the literature review as presented by other authors in the
same field of consumer purchase decision process. The various sectors presented
here were; the stages involved in the purchasing decision process, factors
influencing the consumer purchasing decision process and the conceptual
framework.
2.1.1 Concept of Consumer Purchasing Decision
It is worth noting that consumer buying behaviour is studied as a part of marketing
and its main objective it to learn the way how individuals, groups or organizations
choose, buy use and dispose the goods and the factors such as their previous
experience, taste, price and branding on which the consumers base their purchasing
decisions (Kotler and Keller, 2012).
Decision Everyday each of us make numerous decisions concerning every aspect
of our daily lives. However we generally make these decisions without stopping to
think about how we make them and what is involved in the particular decision
making. It is the selection of an option from two more alternative choices (Schiff
man & Kanuk 2009)
consistent with their values, goals and needs, risky and moderately inconsistent
with their prior attitude (Hoyer, 2004).
When motivation is high, consumers are willing to do things which are closely
related to their goals, e.g. if one has aim to be buy clothes which can be
fashionable as well as give confidence to wear at work place and when such a style
comes in front of her then they immediately go for it. Highly motivated people pay
more attention and think about their goals, they evaluate the information critically
relevant to it and try to remember the information for later use. Consumers are
motivated when they feel processed information or things are personally relevant.
Maslow grouped these different consumers need in five major categories; (Hoyer,
2004) Physiological (Need for food, water and sleep), Safety (Need for shelter,
protection and security Social (need for affection, friendship and acceptance),
Egoistic (need for prestige, success, accomplishment and self esteem) and Self
actualization (need for self fulfillment and enriching experiences). In further detail
needs can be categorized as social, non-social, Functional, symbolic and Hedonic
needs.
Social needs are extremely directed and related to other individuals. Social needs
are fulfilled by the presence or action of other people. Non-social needs are those
in which achievement is not based on other people. Only one self is related to
usage of certain product and services. Functional needs motivate the search for
products that solve consumption related problems. Symbolic needs affect how we
perceive ourselves and how we are perceived by others. Achievement,
independence and self control are symbolic needs because they are connected with
consumer's sense of self. Consumers need for uniqueness is symbolic because it
drives consumption decision about how s/he expresses his/her own identity.
Achievement, status, affiliation and belonging are symbolic because they reflect
consumers social position or role. Hedonic needs reflect 9 inherent desires for
sensory pleasure. Sensory consumers simulation, cognitive simulation and novelty
are non-social hedonic needs, while needs for reinforcement, sex and play are
social hedonic needs (Hoyer, 2004).
Problem/need recognition
Information search
Evaluation of alternatives
Postpurchase
decision
Purchase
decision
personal, professional and lifestyle which in turn leads to the formation of the idea
of purchasing.
In the next stage, consumers search for information related to the desired product
or service (Schiffman and Kanuk, 2007). Information search process can be both
internal and external. Internal search is the process where consumers rely on their
personal experiences and beliefs, external search involves wide search of
information which includes addressing the media, advertising, internet or
consulting other consumers for feedback (Rose and Samouel, 2009)
Once the relevant information about the product or service is obtained, the next
stage involves analyzing the alternatives. Kotler and Keller (2005) consider this
stage as one of the important stages as the consumer considers as types and
alternatives taking into account factors such as the seller or distributor, price,
quality or even appearance.
Backhaus et al (2007) suggested that purchase decision is one of the important
stages as this stage refers to occurrence of transaction. In other words, once the
consumer recognized the need, searched for relevant information and considered
the alternatives he/she makes decision whether or not to make the decision.
Purchasing decision can further be divided into planned purchase, partially
purchase or impulse purchase as stated by Kacen (2002).
Finally, post-purchase decision involves experience of the consumer about their
purchase. Although the importance of this stage is not highlighted by many
authors, Neal et al (2004) argues that this perhaps is one of the most important
stages in the consumer decision making process as it directly affects the
consumers purchases of the same product or service from the same supplier in the
future.
The most noteworthy writers that serve as academic advocates of the five stage
model of consumer decision making include; Tygai (2004), Kahle and Close
(2006), Blackwell et al (2006) among others.
Initiator;
This is the person who first suggests the idea of purchasing a product or
service. An initiator recognizes that there is a need to be satisfied or a
problem to be solved. There could be many reasons which stimulate
initiation.
ii)
Influencer
This is a person who attempts to persuade others in the group concerning
outcome of decision. Influencers typically gather information and attempt
to compose their choice criteria on the decision.
Influencers are those who may have a persuasive role in relation to the
deciders. They may be specialists who make recommendations based
upon experience and their knowledge of products and services. Informal
influencers include family, friends and people at informal gatherings.
iii)
Decider
This is the individual with the power and /or financial authority to make
ultimate choice regarding which product to buy, where to buy and how to
18
buy. The decider will review information provided from lower down the
purchase decision process from the buyers and original initiators
iv)
v)
.
Buyer
This is the person who conducts the transaction, who calls the supplier,
visits the store, makes the payment and effects delivery. A buyer is
responsible for sourcing and negotiation.
User
This is the actual consumer of product. Users are those who put the
service or product into operation after purchase. Their opinions are
paramount and are heavily involved in the post-purchase evaluation of
the consumer decision process.
- The question, who plays each of buying roles should be used to decide on
who the advertising is to be aimed at, the sort of appeal, the timing of the
message and placing of the message (Wilson and Gilligan, 2005)
2.4 Factors Influencing Consumer Purchase Decisions
19
20
1. Price.
Customers have increasingly become price conscious and dealers with competitive
prices tend to attract more customers. Kotler and Armstrong, (2004); this is the
amount of money charged for a product or service or the sum of the values that
consumers exchange for the benefits of having or using the product or service.
Price is an economic factor and according to the law of demand, the higher the
price, the lower the demand and the lower the price, the higher the demand and
subsequently purchase.
2. Attitude.
According to Peter and Olson (2005) customers possess specific beliefs and
attitudes towards various products. This is the element that directs us to think and
react in a particular fashion. In the words of Schiff man and Kanuk (1991, p 227)
attitude is a learned predisposition to behave in a consistently favorable or
unfavorable way with respect to a given object. In other words, attitudes guides our
reaction to a given object, activity or idea. The attitude of an individual to a certain
product or company will greatly influence whether they will purchase the product
in question or not. Fishbein and Ajzen cited by (Chandon Jean-Louis, 2011)
denoted that attitude has an influence on purchase intention and consumer behavior
because it has basic psychological function.
3. Post-purchase evaluation.
The EKB model was further developed by Rice (1993) which suggested that there
should be a feedback.
Loop, Foxall (2005) further suggests the importance of post-purchase evaluation is
key due to its influence on future purchase patterns. Post purchase evaluation
simply means understanding how consumers have reacted to the product purchase
and whether they consider repeat purchase.
4. Merchandising.
Merchandising involves product related activities such as assortment, variety and
product information (Jarvenpaa and Todd, 1997). Rich product assortment can
increase the probability that consumers needs will be met and satisfied (Szymanksu
& Hise, 2000). This is therefore a paramount factor.
5. Promotions.
This involves advertising and sales events that attract customers such as frequent
buyer schemes, lottery games and product-related tips. (www.
21
22
11. Personality.
This is an individuals pattern of traits that influence behavioral responses.
Personality traits do influence consumers perceptions and buying behavior (Etzel,
Walker and Stanton, 2007).
For example, it is a common belief that introverted people love reading more than
extroverted people do.
12. Time Dimension.
Organizations should be able to answer at least three time related questions about
consumer buying.
How is purchasing influenced by the season, week, day or hour?
How much time does it take for the consumer to make purchase and
consume the product? (Etzel, Walker and Stanton, 2007)
Dependent variable
Relative importance of
factors affecting consumer
purchase decision
Individuals and their roles
in influencing consumer
purchase
Considerations for the
consumers making the
purchase decision
Affect
23
Consumer purchase
decision of books
24
CHAPTER 3:
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents various stages and phases that will follow in completing the
study. In this stage, most decisions about how research will be executed and how
respondents will be approached, as well as when, where and how the research will
be completed. This chapter contains the research design, target population, sample
design, data collection instruments and procedures and data analysis.
3.2: RESEARCH DESIGN
The study utilized descriptive form of research, that is, it will research on who,
what, where and how on research topic.
3.3: SAMPLING TECHNIQUE
The study utilized non-probability sampling technique. This method is selected due
to the time factor for the survey and the fact that the population is very large and
only few elements are required to represent it.
I will specifically use convenience sampling technique, where I will position
myself at strategic positions i.e. bookshops, supermarkets and interview few
customers who will be shopping and the people who will be passing by.
3.4 SAMPLE OF POPULATION
Based on the small survey I have conducted in most of the players in the books
industry, approximately 1million plus people in Nairobi are book readers.
Therefore, from the total population of the entire 1 million people this is where the
representative sample will be drawn.
3.5 SAMPLE FRAME
25
The respondents will be selected from bookshops in the Central Business District,
westlands and some part of Karen areas. For the case of my study I will select from
Westgate, Prestige, Mega and Karen due to the time factor and practicability of my
study.
3.6 SAMPLE SIZE
The sample sizes are 200 respondents which is 0.5% representative of population.
They will be distributed as follows:
Supermarkets in CBD:30% of 200-60 respondents
Westlands:20% of 200-40 respondents
Junction :25% of 200-50 respondents
Karen:25% of 200-50 respondents
This is because most of the residents of Nairobi do their shopping in the
supermarkets at the CBD, followed by their respective area of residential in this
case my focus will be based on Wetlands, Junction and finally Karen.
For this research only 40 respondents will represent the population. This is due to
time constraint i.e. limited time available for the collection of data and the
practicability of the survey.
3.7 NATURE OF STUDY
The study will be based on combination of primary and secondary data and thus
will be able to analyze various major factors which affect the purchase decision
regarding books.
Various customers will fill various questionnaires. This project is expected to serve
valuable information regarding various factors affecting consumers purchase
decision.
3.8 DATA COLLECTION METHOD
The instrument of collecting data is a closed ended questionnaire. The
questionnaire is a researcher administered to save time and for the sake of those
who could not read and write English. The data will be obtained directly from the
persons taking part in the survey. All data will be received immediately since the
survey will be conducted in person. Forty surveys will be answered before the data
is processed.
The questionnaire will have 3 sections:
a. Personal Information:
26
This information will help in understanding the respondents better i.e. their
demographics and helped in tabulating findings.
b. Factors Information:
This information will help to rate the factors from most important to least
important.
c. Considerations Information:
This information will understand the roles, participants in the purchasing
decision of the buyers in the books industry.
3.9 BUDGET
Expense
Printing (4 copies)
Photocopying (640 copies)
Transportation
Envelops
Stationery; 5 pens, 1 ruler, two
pencils, one sharpener and 3
erasers,
Internet
Cost (KES)
10 per copy 40
2 per copy 1280
1000
20 per envelope 40
400
Total
3260
500
QUESTIONNAIRE
It is with great appreciation to the realization of this Questionnaire, which the entire Books First
company fraternity has taken to ensure the satisfaction of its customers thereby, forming a
questionnaire on the factors that influence purchase decision of consumers in the books industry
Nairobi region
A) PERSONAL INFORMATION.
i)
ii)
Under
15
16
30
31
45
Above 46
iii)
Single
Married
iv)
Employed
Un-
self employed
employed
B) FACTORS INFORMATION
Instructions:
Rate the importance you give the factors that determine whether or not you make a purchase of
books using the rates given below. If you have other factors please indicate.
Very important 4
Important
3
Not important 2
Undecided
1
Please fill in the ratings;
28
a) Price [
b) Attitude [
c) Post-purchase evaluation [
d) Merchandising [
e) Promotion [
i) Social class [
j) Perception [
k) Personality [
l) Others (specify)
C) CONSIDERATIONS INFORMATION
i)
Self help
books
Business
books
Diet/nutrition book
Autobiography books
29
Sports
books
Legal
thrillers books/s
Romance books
Horror
books
Cook
books
(If more than one variant give the percentage consumption rate of each).
ii)
Daughter/son
Spouse
Peers
Self
(If all influence, rate them according to level of influence).
iii)
Public
School
End
holiday
holiday
month
Weekly
Others(State percentage of each)
Thank you for your cooperation, time and taking part in this exercise.
31
Frequency
10
40
20
30
32
Frequency
45
40
35
30
Frequency
25
20
15
10
5
0
Under 15
16 30
31 45
Above 46
Occupation
Under 15
16 30
31 45
Above 46
Total
Percentage
employed
0
28
8
2
38
42.222%
33
Self employed
0
4
6
5
15
16.667%
Unemployed
0
8
6
23
37
41.111%
FACTORS INFORMATION
Factors
undecided
Important
(3)
35
Very
important (4)
40
total
percentage
Not important
(2)
12
Price
87
12.64
Attitude
Post purchase
evaluation
Merchandising
Promotion
Point of purchase
advertising
Books variety
Information on books
Social class
Perception
Personality
0
0
12
10
16
13
17
29
45
52
6.54
7.55
0
0
0
7
9
22
14
25
23
26
27
24
47
61
69
6.83
8.86
10.02
0
11
11
12
12
0
21
14
24
1
35
24
24
13
22
35
16
22
14
16
70
72
71
63
51
10.17
10.46
10.31
9.15
7.41
34
Total
688
CONSIDERATION INFORMATION
Types of books
Self help books
Cook books
Business books
Diet/nutrition books
Autobiography book
Sports books
Legal thrillers books
Romance books
Horror
Number of people
70
20
100
19
100
12
26
30
10
35
Percentage
18.08
5.16
25.83
4.90
25.83
3.10
6.71
7.75
2.58
Number of people
100
90
80
70
60
50
40
30
20
10
0
Number of people
60
12
60
80
90
36
Respondents
parents
60
90
Daughter/son
12
Spouse
Peers
60
Selp
80
0
5
6
69
20
37
5.3 Challenges.
In the course of my study, the following are the challenges I experienced:
1. Time constraint. This negatively influenced the population that was interviewed as the
sample population was representative, i.e. 15 respondents is not representative of a
population of 3 million.
2. Financial constraint. This affected me especially in terms of movement from one point to
another so as to collect data. The transport and photocopying expenses were costly.
3. Unlimited secondary data resources. Most of the material from which secondary data was
to be sourced was unavailable and others were out dated. This brought about difficulties
when coming up with a comprehensive literature review.
38
4. Hostile and dishonest respondents. Some of the respondents were rebellious and could
not fill in the questionnaires or be interviewed. Others gave dishonest response. As a
result, data collection was a bit difficult.
39
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
REFERENCE
Baker, J, Levy, & Grewal, D 91992). An experimental approach to making retail
store environment decisions.
Consumer Behavior.
9th Edition.
By Leon G .Schiff man, Leslie Lozar Kanuk.
Year of publication: 2009
By: Pearson Education, Upper saddle River, New Jersy.
Clover, V.T (1950), Relative importance of impulse buying in retail stores, Journal
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Cronin, M.J.91996). Global advantage on the World Wide Web. New York: van
Nostrand Rein hold.
Foundations of marketing.
By William M. Pride, O.C Ferrell
2007
Marketing.
14th Edition.
By: Michael J. Etzel University of Notre Dame
Bruce J. Walker University of Missouri Columbia
William J. Stanton University of Colorado Boulder.
Year of Publication: 2007
By: McGraw Hill/Irwin, New York.
Strategic marketing Management Planning, Implementation and control.
2nd Edition
By: Richard M.S. Wilson and Collin Gilligan.
Year of publication; 2005
By Butterworth Heinemann, Linacre House Jordan Hill, Oxford 0X28DP.U.K.
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N.J: Prentice Hall, Inc.
Selling and sales marketing
8th Edition
By David Jobber- university of Bradford
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www.marketreseeach.com.
(Stinnet, 2002)
40
APPENDICES
APPENDIX 1
TIME PLAN
ACTIVITY
Writing the proposal and constructing the
questionnaire.
ii)
July-10
iii)
July-mid August
iv)
Mid August
APPENDIX 2
BUDGET
Expense
Printing (4 copies)
Photocopying (640 copies)
Transportation
Envelops
Stationery; 5 pens, 1 ruler, two
pencils, one sharpener and 3
Cost (KES)
10 per copy 40
2 per copy 1280
1000
20 per envelope 40
400
41
erasers,
Internet
500
Total
3260
42