Download THE INFUENTIAL FACTORS ON CONSUMERS` PURCHASING

THE INFUENTIAL FACTORS ON CONSUMERS’ PURCHASING
DECISION IN BANGKOK PET RETAILING BUSINESS
By
Tarinee Chaipradermsak
SIU THE: SOM-MBA-2007-02
THE INFUENTIAL FACTORS ON CONSUMERS’ PURCHASING
DECISION IN BANGKOK PET RETAILING BUSINESS
A Thesis Presented
By
Tarinee Chaipradermsak
Master of Business Administration in Management
School of Management
Shinawatra University
July 2007
Copyright of Shinawatra University
Acknowledgments
Throughout the course of research leading to the completion of this thesis, I
have gratitude to many people, who have provided me with tremendous help and
support in one way or another, which I think I cannot possibly acknowledge in full
measure.
First of all, I would like to express my sincere thanks to Dr. Chanchai
Bunchapattanasakda, my advisor, for his valuable advice and kind supervision. His
experience, insightful guidance, and encouragement provided me with the necessary
way and confidence to carry out and complete this thesis.
I wish to express my special gratitude to Asst. Prof. Dr. Pacapol Anurit and
Prof. Dr. Brian Sheehan for their kind comments and useful advice during the
implementation process of this study. I also wish to faithfully acknowledge Dr. Wilert
Jarupongsopon for his lectures in this Marketing Management subject that has
provided me knowledge and techniques to develop good research.
i
Abstract
The thesis aims to identify the influential factors on consumers’ purchasing
decisions in Bangkok pet retailing business. The scope of the study is based on the
profiles of Thai consumers who have been using either products or services from
Bangkok pet retailers.
This study is quantitative research, using a structured questionnaire to collect
the data from 400 consumers who have been using either products or services from
Bangkok pet retailers and have pets at presents. The researcher analyzes data
variables using percentages, frequencies, means, standard deviations, t-Test, and
ANOVA to test hypotheses and answer the research questions.
The study identifies independent variables including demographic factors
(age, gender, education background, and monthly income), consumer behavior factors
(frequency of purchasing and average spending per visit), and marketing mix factors
(product, price, place, and promotion). The dependent variable is the consumers’
purchasing decisions in Bangkok pet retailing business.
The result shows that both demographic factors and marketing mix factors do
not have significant relationship with the consumers’ purchasing decisions in the
Bangkok pet retailing business, while the consumer behavior has a significant
relationship with the consumers’ behavior in Bangkok pet retailing business.
Keywords:
Purchasing decision
Consumer behavior
Retailing
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Table of Contents
Title
Page
Acknowledgments
i
Abstract
ii
Table of Contents
iii
List of Figures
vi
List of Tables
vii
Chapter 1 Introduction
1
1.1 Research Background
1
1.2 Research Problems
2
1.3 Research Objectives
2
1.4 Scope of Research
3
1.5 Research Significances
3
1.6 Conceptual Framework
3
1.7 Hypotheses
4
1.8 Definitions of Terms
5
Chapter 2 Literature Review
6
2.1 Background Information
6
2.2 Demographic Segmentation
7
2.3 Consumer Buyer Behavior
7
2.4 Model of Consumer Behavior
7
2.5 Consumer Decision Making
8
2.6 Buyer Decision Process
9
2.7 Buyer Decision Process for New Products
11
2.8 Marketing Mix
12
2.8.1 Product
12
2.8.2 Price
14
2.8.3 Place
15
2.8.4 Promotion
16
iii
Title
Page
2.9 Retailing
18
Chapter 3 Methodology
20
3.1 Introduction
20
3.2 Population and Sample Size
20
3.3 Data Collecting Method
21
3.4 Research Design
21
3.5 Data Collecting Procedure
22
3.6 Data Analysis
22
Chapter 4 Research Analysis and Results
25
4.1 Research Design
25
4.2 Demographic Characteristics of Respondents
26
4.2.1 Age
26
4.2.2 Gender
26
4.2.3 Education background
27
4.2.4 Income
28
4.3 Consumer Behavior Characteristics of Respondents
28
4.3.1 Pet ownership
28
4.3.2 Frequency of purchasing
29
4.3.3 Frequency of changing pet retailer
30
4.3.4 Average spending per time
30
4.3.5 Information channel
31
4.3.6 Decision in choosing pet retailer
31
4.3.7 Decision in changing pet retailer
32
4.4 Marketing Mix Factors that Influence Consumer Purchasing
33
Decisions
4.5 Testing Hypotheses
34
4.5.1 Testing demographic factors on purchasing decisions in
35
Bangkok pet retailer business
4.5.2 Testing consumer behavior factors on purchasing decisions
in Bangkok pet retailer business
iv
38
Title
Page
4.5.3 Testing marketing mix factors on purchasing decisions in
39
Bangkok pet retailer business
Chapter 5 Conclusions, Discussion, and Recommendations
42
5.1 Summary of Findings
42
5.2 Finding of the Study
42
5.2.1 Demographic profile of respondents
42
5.2.2 Consumer behavior characteristics of respondents
44
5.2.3 Marketing mix factors that influence consumer purchasing
48
decisions
5.2.4 Testing of hypotheses
49
5.3 Research Difficulties and Limitations
52
5.4 Recommendations for Further Research
52
References
53
Appendices
Appendix A Questionnaire (English)
56
Appendix B
Questionnaire (Thai)
61
Appendix C
Thailand Statistical Data
66
Appendix D
Bangkok Statistical Data
67
Biography
68
v
List of Figures
Title
Page
Figure 1
Conceptual Framework
4
Figure 2.1
Model of Buyer Behavior
8
Figure 2.2
Buyer Decision Process
9
Figure 5.1
Age of 400 Respondents
43
Figure 5.2
Education Background of 400 Respondents
43
Figure 5.3
Income of 400 Respondents
44
Figure 5.4
Frequency of Purchasing
45
Figure 5.5
Frequency of Changing Pet Retailer
45
Figure 5.6
Average Spending per Time
46
Figure 5.7
Information Channel
46
Figure 5.8
Decision in Choosing Pet Retailer
47
Figure 5.9
Decision in Changing Pet Retailer
47
vi
List of Tables
Title
Page
Table 3
Width of Class Interval
24
Table 4.1
Demographic Background of Respondents Classified by Age
26
Table 4.2
Demographic Background of Respondents Classified by Gender
27
Table 4.3
Demographic Background of Respondents Classified by
27
Educational Background
Table 4.4
Demographic Background of Respondents Classified by Income
28
Table 4.5
Behavior Characteristics of Respondents Classified by Pet
29
Ownership
Table 4.6
Behavior Characteristics of Respondents Classified by Frequency
29
of Purchasing
Table 4.7
Behavior Characteristics of Respondents Classified by Frequency
30
of Changing Pet Retailer
Table 4.8
Behavior Characteristics of Respondents Classified by Average
30
Spending per Time
Table 4.9
Distribution Channels
31
Table 4.10
Decision in Choosing Pet Retailer of Respondents
32
Table 4.11
Decision in Changing Pet Retailer of Respondents
33
Table 4.12
General Characteristic of Consumers’ Purchasing Decisions
34
Table 4.13
The Relationship between Gender and Consumers’ Purchasing
35
Decisions
Table 4.14
The Relationship between Age and Consumers’ Purchasing
36
Decisions
Table 4.15
The Relationship between Educational Background and
36
Consumers’ Purchasing Decisions
Table 4.16
The Relationship between Monthly Income and
Consumers’ Purchasing Decisions
vii
37
Title
Table 4.17
Page
The Relationship between Consumer Behavior Factors and
38
Consumers’ Purchasing Decisions
Table 4.18
The Relationship between Marketing Mix Factors and
39
Consumers’ Purchasing Decisions
Table 5
Hypothesis 3 Summary Test Result
viii
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Chapter 1
Introduction
1.1 Research Background
Thais are passionate about their pooches and feline friends. From the data of
the National Statistical Office (2004), in the central region of Thailand with a total of
15,242 villages, 15,031 (99%) have dogs and cats owners. There are nearly 600 pet
outlets in Bangkok, selling food, accessories and cages, for dogs, cats, birds, fish,
hamsters and other animals, as well as magazines about them. Dogs are the most
popular pets in Thailand (U.S. Commercial Service, 2006).
The passion for pets has transferred to business where there is substantial
revenue to be made from the pet business, especially in relation to dogs. The market
for pet products in Thailand remains strong and is steadily growing due to the
increased number of pet owners taking greater care of their pets. The data from
United States of America Department of Commerce (2006) shows that the Thai pet
product market will grow annually at an average rate of 25 percent for the next few
years. A major reason for this growth is that the role of the Thai pet has changed. Pet
owners seek a large variety of toys, accessories and foods to entertain and comfort
their pets. Imports play a major role in this market and numerous opportunities exist
for companies with innovative or distinctive products (U.S. Commercial Service,
2006).
Pets play the role of friend in families. Considering that the dogs and cats may
be part of the family for more than ten years, and will be around every day. Some
people treat and care for their pets as if they were their children. However, pet owners
do not always take the decision to purchase pet products lightly. They always consider
paying for the benefit, not only to themselves, but also their pets. The humanization of
pets is one of the biggest trends in the pet market. While basic pet needs, food,
veterinary care, and medicines command the largest share of the market, pet luxuries,
i.e. things people buy for their pets that are driven more by emotion than the basic
needs, are the fastest growing segment in the pet market (American Pet Product
Manufacturers Association [APPMA], 2005).
Pet luxuries, or the products and services that pet owners buy for their
pampered pets, represent the best opportunity for pet product marketers, retailers and
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service providers. People spend more, lots more, on purchases that are driven by
desire and passion, than those bought out of pure need. So it is in the realm of pet
luxuries, rather than basic necessities, that pet marketers need to explore. Without the
comprehending what customers need and want, some entrepreneurs will not survive
after launching their businesses. This research study will focus on consumers, their
buying behavior, needs, desires and preferences in order to find the appropriate
materials for advertising and promoting of the pet retailing business in order to satisfy
customers in Bangkok, and be profitable (Heinecke & Marsh, 2000).
1.2 Research Problems
As the number of educated Thais is growing rapidly with the new younger
generation, their expectations and demands for customer service has increased, as
well as their options and choices. Consumers or buyers will ask a lot of sensible and
technical questions, and demand specifications and explanations about their pets or
products. Opinions on product comparisons, selection and choices are been tested
frequently. The attitudes that pet owners have about their pets has also changed from
the past. Some owners treat their pets like their children, or even better. Owners treat
their pets like one of their family members, more than just a friend nowadays. This
area cannot be over-emphasized (Euromonitor, 2007).
Hence, with the changing economy and a new generation in Thailand, the
entrepreneurs must recognize changes in consumers’ purchasing patterns, as well as
how they make purchasing decisions, in order to keep up with their needs and
requirements. Pet retailers must also equip themselves with through knowledge about
their products and services. They must live up to consumers’ expectations. Otherwise
their traditional and conservative sales and marketing strategy will put them way
behind and out of business very soon. A very different approach has to be drafted to
attract these new consumers. As well as coming up with new ideas, being unique and
offering better services, products, or being different from the rest is essential (Kotler
& Keller, 2006).
1.3 Research Objectives
The research has the following objectives:
1) To explore consumer demographics in the Bangkok pet retailing business.
2) To study consumer behaviors in the Bangkok pet retailing business.
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3) To determine consumers’ expectations about products and services in the
Bangkok pet retailing business.
4) To study the influential factors on consumers’ purchasing decisions in the
Bangkok pet retailing business.
1.4 Scope of Research
The research focused on the following contents:
1) Consumer demographics in the Bangkok pet retailing business.
2) Consumer behaviors in the Bangkok pet retailing business.
3) Consumers’ expectations about products and services in the Bangkok pet
retailing business.
The researcher only focused on two kinds of pets which are dogs and cats.
Therefore, the research only discusses consumers who have dogs and cats as their
pets.
1.5 Research Significances
1) The researcher can achieve and gain knowledge about consumer
demographics and behavior in the Bangkok pet retailing business.
2) The research reveals information about consumers’ expectations about
products and services in the Bangkok pet retailing business.
3) Information, analysis and findings gained from this research could prove
valuable to both academics and business people in terms of factors
influencing consumers’ purchasing decisions in the Bangkok pet retailing
business.
4) This research could be a reference for further study in the field of the
influential factors on consumers’ purchasing decisions in the Bangkok pet
retailing business.
1.6 Conceptual Framework
This research provides a detailed information resource covering all the key
data points on factors influencing consumers’ purchasing decisions in the Bangkok
pet retailing business. The factors are categorized into demographic factors and
marketing mix factors. The factors that are believed to affect consumers’ purchasing
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decisions in the pet retailing business are primarily developed from a variety of
sources. The conceptual framework was developed from the literature review on
consumer behavior, consumers’ purchasing decision, and marketing mix, which will
be presented in chapter three.
Independent Variables
Dependent Variable
Demographic Factors
Consumers’ purchasing
decisions in Bangkok pet
retailer business.
Age
Gender
Educational Background
Personal Income
Consumer Behavior Factors
Frequency of Purchasing
Average Spending per Visit
Marketing Mix Factors
Product
Price
Place
Promotion
Figure 1 Conceptual Framework
1.7 Hypotheses
Hypothesis 1: there is a significant relationship between demographic factors
and consumers’ purchasing decisions in the Bangkok pet retailing business.
Hypothesis 2: there is a significant relationship between consumer behavior
factors and consumers’ purchasing decisions in the Bangkok pet retailing business.
Hypothesis 3: there is a significant relationship between marketing mix factors
and consumers’ purchasing decisions in the Bangkok pet retailing business.
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1.8 Definitions of Terms
Consumer Buyer Behavior: “the buying behavior of final consumers;
individuals who buy goods, and services for personal consumption. All of these final
consumers combine to make up the consumer market” (Armstrong & Kotler, 2003, p.
G2).
Consumer Purchasing Decisions: the researcher defines the consumer
purchasing decisions as the decisions made about purchasing either products or
services from a pet retailer. “Consumer purchasing decision process intervenes
between the market strategy and the outcomes. The firm can succeed only if
consumers see a need that its product can solve, become aware of the products and its
capabilities, decide that it is the best available solution, proceed to buy it, and become
satisfied with the result of the purchase” (Hawkins, Best, & Coney, 2001, p. 22).
Marketing Mix: the set of marketing tools the firm uses to pursue its
marketing objectives. It is classified into four broad groups, which are product, price,
place, and promotion. Marketing mix decisions must be made for influencing an
offering mix of products, services, and prices, and utilizing a communications mix of
advertising, sales promotion, events, experiences, public relations, direct marketing,
and personal selling to reach the trade channels and target customers (Keller & Kotler,
2006).
Pet Retailer: includes all the activities involved in selling goods or services
for pets directly to final consumers for personal, nonbusiness use. Consumers can
purchase goods and services in a wide variety of retail organizations. There are store
retailers, nonstore retailers, and retailer organizations (Kotler & Keller, 2006).
Product: the researcher defines a product as anything a consumer acquires or
might acquire to meet a perceived need for their pets, such as pet food and pet
accessories (Hawkins et al., 2001).
Service: the researcher defines a service as an act or a variety of work done
for the consumer in the pet retailing business to satisfy their needs and wants (Kotler
& Keller, 2006).
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Chapter 2
Literature Review
2.1 Background Information
The chapter presents theories, concepts, and review of literatures relevant to
demographic segmentation, consumer buyer behavior, consumer decision making,
buyer decision process; need recognition; information search; evaluation of
alternatives; purchase decision; postpurchase behavior, marketing mix, and retailing.
Details are presented below;
Consumers are more educated and informed than ever, and they have the tools
to verify companies’ claims and seek out superior alternatives. They tend to be valuemaximizers, within the bounds of search costs and limited knowledge, mobility, and
income. Customers estimate which offer will deliver the most perceived value and act
on it. Whether or not the offer lives up to expectation affects customer satisfaction
and the probability that he or she will purchase the product again (Kotler & Keller,
2006).
Consumer decisions result from perceived problems and opportunities. The
consumer problems arise in specific situations, and the nature of the situation
influences the resulting consumer behavior. Consumers’ needs and desires may
trigger one or more levels of the consumer decision process. “The consumer decision
process intervenes between the market strategy (as implemented in the marketing
mix) and the outcomes. The firm can succeed only if consumers see a need that its
product can solve, become aware of the products and its capabilities, decide that it is
the best available solution, proceed to buy it, and become satisfied with the result of
the purchase” (Hawkins et al., 2001, p. 22). Although the term may be considered
new, customer experience management has always been a fundamental consideration
in the way most companies do business. A major part of serving and satisfying
consumers are accomplished by influencing what they experience in relation to
products and services through advertising, merchandising, store design, lighting, and
personal services (Monster & Pettit, 2002).
Three primary types of influences affect individuals’ decision, behaviors,
purchases, and lifestyles. Normative influence, occurs when individuals alter their
behaviors or beliefs to meet the expectations of a particular group. Often the goal of
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the individual is conformity. Value expressive influence occurs when a need for
psychological association with a group causes acceptance of this norms, Values,
attitudes, or behaviors. Even though there may be no motivation to become a member,
individuals often enhance, their image in the eyes of others, or achieve identification
with people who are admired and respected. Since consumer often accept the opinions
of others as providing credible and needed evidence about reality, they often seek the
advice of others before making a purchase or life decision. Information influence
occurs when people have difficulty accessing product or brand characteristics by their
own observation or contact. In this instance, they will accept recommendations or
usage by others as evidence about the nature of the product and use the information in
their own product or brand decisions (Blackwell, Miniard, & Engel, 2004).
2.2 Demographic Segmentation
Demographics are the vital statistical that describe a population. Marketers
make use of a variety of demographic characteristics including age, family size,
family life cycle, gender, income, occupation, education, religion, race, generation,
and social class. They are important to marketers because they are closely related to
the demand for many products. The consumer needs, wants, usage rates, and brand
preferences are often associated with demographic variables (Etzel, Walker, &
Stanton, 2006).
2.3 Consumer Buyer Behavior
“Consumer buyer behavior refers to the buying behavior of final consumers,
individuals and household who buy goods and services for personal consumption.”
(Armstrong & Kotler, 2003, p. 128). The consumer market consists of all the
combinations of final consumers. These consumers, from all over the world, with a
wide range in terms of age, income, educational level, gender and tastes. In addition,
they purchase an incredible variety of goods and services.
2.4 Model of Consumer Behavior
Consumers make many buying decisions everyday. The consumer
purchasing decision answers questions about what consumers buy, where they buy,
how and how much they buy, when they buy, and why they buy (Armstrong & Kotler,
2003). Past decisions, time-related events, such as ageing, and external events, such as
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an illness of job change, lead to lifestyle changes that pose additional consumption
problems and result in new purchases (Neal, Quester, & Hawkins, 2002).
Marketing Mix
Buyer’s Black Box
Buyer’s Responses
Product
Price
Place
Promotion
Buyer Characteristics
Buying Decision
Product Choice
Brand Choice
Purchase Timing
Purchase Amount
Figure 2.1 Model of Buyer Behavior
Source: Armstrong and Kotler (2003)
Figure 2.1 presents that marketing and other stimuli enter the consumer’s
black box and produce certain responses. Marketing stimuli consists of the four Ps;
product, price, place, and promotion. These inputs enter the buyer’s black box, where
they are turned into a set of observable buyer responses: product choice, brand choice,
dealer choice, purchasing timing, and purchasing amount. The market wants to
understand how the stimuli are changed into responses inside the consumer’s black
box, which has two parts. First, the buyer’s characteristics influence how they
perceive and react to the stimuli. Second, the buyer’s decision process itself affects
the buyer’s behavior (Armstrong & Kotler, 2003).
2.5 Consumer Decision Making
The key process in consumer decision making, however, is the integration
process by which knowledge is combined to evaluate two or more alternative
behaviors and select one. The outcome of this integration process is a choice,
represented cognitively as a behavioral intention. A behavior intention is a plan
(sometimes called a decision plan) to engage in some behavior. All aspects of affect
and cognition are involved in consumer decision making, including the knowledge,
meanings, and beliefs activated from memory and the attention and comprehension
processes involved in interpreting new information in the environment (Peter &
Olson, 1999).
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2.6 Buyer Decision Process
The consumer usually searches his or her memory (the psychological field)
before seeking external sources of information regarding a given consumption related
need. Past experience is considered an internal source of the consumer is likely to
need to reach a decision. Many consumer decisions are based on a combination of
past experience, marketing and non commercial information (Schiffman & Kanuk,
2004).
Figure 2.2 shows that the buyer decision process consists of five stages; need
recognition, information search, evaluation of alternatives purchase decision, and post
purchase behavior. Clearly, the buying process starts long before actual purchase and
continues long after. Marketers need to focus on the entire buying process rather than
on just the purchase decision. The figure implies that consumers pass through all five
stages with every purchase. Nevertheless, in more routine purchases, consumers often
skip or reverse some of these stages (Armstrong & Kotler, 2003).
Need
Recognition
Information
Search
Evaluation of
Alternatives
Purchase
Decision
Postpurchase
Behavior
Figure 2.2 Buyer Decision Process
Source: Armstrong and Kotler (2003)
2.6.1 Need recognition.
The buying process starts with requirements or need recognition. The buyer
recognizes a problem or need. The need or requirement can be triggered by internal
stimuli from one of the person’s normal needs. For example, hunger, thirst, sex, raises
to a level high enough to become a drive. A need can also be triggered by external
stimuli (Armstrong & Kotler, 2003). It is the task of marketing managers to determine
the needs and wants of a particular product can and does satisfy and the unsatisfied
needs and wants of consumers have for, in which a new product could be developed.
In order to do so, marketing managers should understand what types of needs
consumers may have. A well-known classification of needs was developed many
years ago by Abraham Maslow, including physical needs, safety needs, belonging
needs, esteem needs, and self-actualization needs (Peter & Donnelly, 2001).
9
2.6.2 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, the consumer 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 (Armstrong & Kotler, 2003). Information
provided by marketers is invariably favorable to the product and/or brand. Consumers
are especially likely to note the negative information and to avoid products or brands
that receive negative evaluation (Shiffman & Kanuk, 2004).
2.6.3 Evaluation of alternatives.
Evaluate or judge competing alternatives in terms of salient beliefs about
relevant consequences and combine this knowledge to make a choice (Peter & Olson,
1999). The marketer needs to know about alternative evaluation. That is how the
consumers process information to arrive at brand choices. Unfortunately, consumers
do not use a simple and single evaluation process in all buying decisions. Instead,
several evaluation processes are at work. The consumer arrives at attitudes toward
different brands through some evaluation procedure. How consumers go about
evaluating purchase alternatives depends on the individual consumer and the specific
buying situation (Armstrong & Kotler, 2003).
2.6.4 Purchase decision.
If no other factors intervene after the consumer has decided on the brand that
is intended for purchase, the actual purchase is a common result of search and
evaluation. Actually, a purchase involves many decisions, which include product type,
brand, model, dealer selection, and method of payment, among other factors. In
addition, rather than purchasing, the consumer may make a decision to modify,
postpone, or avoid purchase based on an inhibitor to purchase or perceived risk. The
perceived risk literature emphasizes that consumers generally try to reduce risk in
their decision making. This can be done by either reducing the possible negative
consequences or by reducing the uncertainty (Peter & Donnelly, 2001).
2.6.5 Postpurchase behavior.
The marketer’s job does not end when the product is bought. After purchasing
the product, the consumer will be satisfied or dissatisfied and will engage in post
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purchase behavior of interest to the marketer. If the product falls short of
expectations, the consumer is disappointed; if it meets expectations, the consumer is
satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap
between expectations and performance, the greater the consumer’s dissatisfaction.
This suggests that sellers should make product claims that faithfully represent the
product’s performance levels to boost consumer satisfaction with the product. Almost
all major purchases result in cognitive dissonance, or discomfort caused by post
purchase conflict. After the purchase, consumers are satisfied with the benefits of the
chosen brand and are glad to avoid the drawbacks of the brands not bought. Consumer
feel uneasy about acquiring the drawbacks of the chosen brand and about losing the
benefits of the brands not purchased. Thus, consumers feel at least some post
purchase dissonance for every purchase (Armstrong & Kotler, 2003).
2.7 Buyer Decision Process for New Products
From the stage a buyer goes through in trying to satisfy a need, he/she may
pass quickly or slowly through these stages, and some of the stages may even be
reversed. Much depends on the nature of the buyer, the product, and the buying
situation. A new product is a good, service, or idea that is perceived by some potential
customers learns about products for the first time and makes decisions on whether to
adopt them. “The adoption process is defined as the mental process through which an
individual passes from first learning about an innovation to final adoption, and
adoption as the decision by an individual to become a regular user of the product”
(Armstrong & Kotler, 2003, p. 146).
Stages in the adoption process: Consumer goes through five stages in the
process of adopting a new product (Armstrong & Kotler, 2003):
1) Awareness: the consumer becomes aware of the new product, but lacks
information about it.
2) Interest: the consumer seeks information about the new product.
3) Evaluation: the consumer considers whether trying the new product makes
sense.
4) Trial: the consumer tries the new product on a small scale to improve his
or her estimate of its value.
5) Adoption: the consumer decides to make full and regular use of the new
product.
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2.8 Marketing Mix
The marketing program consists of numerous decisions on value-enhancing
marketing activities to use. Marketing activities come in all forms. One traditional
depiction of marketing activities is in terms of the marketing mix, which has been
defined as the set of tools into four broad groups, which is called the four Ps: product,
price, place, and promotion. Marketing mix decisions must be made for influencing
the trade channels as well as the final consumers. The four Ps represent the seller’s
view of the marketing tools available for influencing buyers. From a buyer’s point of
view, each marketing tool is designed to deliver a customer benefit (Kotler & Keller,
2006).
2.8.1 Product.
A product is anything a consumer acquires or might acquire to meet a
perceived need. Consumers are generally buying need satisfaction, not physical
product attributes. (Hawkins et al., 2001).
1) Pet accessories
Marsh (1998) examined that the pet accessories market is about one quarter of
the pet products industry. Pet food is the major market category, representing about
multinational companies dominate the pet food market, hence 70% of the pet products
industry. The market for pet accessories is broad and growing with the following
details:
•
Raw materials for pet accessories are widely available.
•
The vast majorities are not high-technology items.
•
Most producers are artisans or small businesses.
More pets and better pet care are trends leading to continued and greater
demand for pet accessories. Two-thirds of the market for pet accessories and supplies
is in North America and Western Europe. Typical products supplied by developing
countries are dog chews made from hide, collars, leads and harnesses for cats and
dogs; made from leather; bird cages in wood or metal; and plastic cage-fitting
ornaments for birds and small animals. Most pet accessories do not fall under
products codes headings of the Standard International Trade Classification or the
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Harmonised System. Exporters should contact customs authorities or importers for
details about tariffs and duties for specific products (Marsh, 1998).
2) Packages for pet products
Sacharow (2002) examined that basic flexible packaging concepts used in pet
food packaging are bags, sacks, stand-up pouches, retort pouches, trays with peelable
lids, and a few chubby packs. Reviewing packaging types, stand-up pouches are the
biggest growing area in recent years and are set to continue to grow strongly.
Vacuum-packed pouches of dried food recently have appeared on retail shelves.
While pouches afford the opportunity for novel shapes to be incorporated into their
design, and some examples have emerged, this has yet to be fully exploited. Ply
papers (for dry food only) are very important, typically SOS (self - opening satchel)
bags for smaller sizes and flat for larger sizes. One subject of major importance in pet
food bags is the battle of pre-made bags versus vertical form/fill/seal. In the pet food
industry, pre-made bags are still a widespread phenomenon because of the large sizes
used as well as special features like carrying handles and reclosability, and because
there were no alternatives to pre-made bags in combination with fill and seal
machines. VFFS machines that can produce from roll stock are now available. These
machines offer most features and combination of features. Nevertheless, there is more
to the relationship between the pet food industry and VFFS machinery In recent years
more and more pet food manufacturers are trying to sell their products through the
regular supermarkets. Under pressure from these supermarkets and because of
consumer buying habits and high shelf price, a trend was set toward smaller bag sizes
for pet food. Private labels increasing, there is also a trend towards private labeling.
Private labeling occurs when a manufacturer packages an existing product with a
client's label; when he produces new products for a client; or when he assists a retailer
to develop a look, name and logo (Sacharow, 2002).
3) Pet health care services
The increasing demand for pet care has spawned a proliferation of traditional
and non-traditional veterinary services. Although using a vet who makes house calls
would require a change in consumer behavior, the findings indicate that the service
concept is appealing to a niche market of pet owners who desire more service
13
convenience and are willing to pay for it. Educating more consumers about the service
benefits may broaden its appeal (Geissler, 2003)
2.8.2 Price.
Price is the amount of money one must pay to obtain the right to use the
product. One can buy ownership of a product or for many products, limited usage
rights. Economists often assume that lower prices for the same product will result in
more sales than higher prices. However, price sometimes serves as a signal of quality.
A product priced too low might be perceived as having low quality. Owning
expensive items also provide information about the owner. If nothing else, it indicates
that the owner can afford the expensive items. This is a desirable feature to some
consumers. Therefore, setting a price requires a thorough understanding of the
symbolic role that price plays for the product and target market question. It is
important to note that the price of a product is not the same as the cost of the product
to the customer. The consumer cost is everything the consumer must surrender in
order to receive the benefits of owning or using the product. One of the ways that
firms seek to provide customer value is to reduce the nonprice costs of owning or
operating a product. If successful, the total cost to the customer decreases while the
revenue to the marketer stays the same or even increases (Hawkins et al., 2001).
Daneshvary and Schwer (2003) examined the consumers behavior with
respect to their demand for pet health care. By incorporating an economic model of
human health care and the psychology of human attitudes towards pets, researcher
developed and test hypotheses about the price and income elasticities of demand for
pet health care. The empirical results suggest that pet health care is considered a
normal service by pet owners. Although the results in general conform our a priori
expectations, the demand for pet health care seems to be somewhat more price and
income sensitive than that of human health care. However, price and income
elasticities of demand for health care are by no means uniform between cat and dog
owners. In this regard, cat owners show more sensitivity to both price and income
than do dog owners. The differential behavior is perhaps a reflection of the perceived
relative health care needs of the type of pets by the consumers. In addition, the
elasticities are positively related to population density. These elasticities also depend
upon the composition of the veterinary firms.
14
In general, pet owners differentiate the mix of services provided by group
practices from those provided by solo practices. The results from the veterinarian
sample, as well as the results from pet-owners samples, reveal that dog owners' health
care utilization is currently higher than that of cat owners. However, not only the
health care utilization rate of cat owners is increasing much faster than that of dog
owners, but also the ownership preferences of households are changing in favor of
cats. These trends, along with our findings of elasticities, imply a changing nature of
overall demand for veterinary services. Given the higher elasticities of demand for cat
health care, and if the current trends of ownership and utilization continues,
veterinarians will face more price-and-income sensitivity to demand for their overall
services. In addition, pet owners should experience a higher degree of both price and
non-price competition among veterinarians in the future. Also, our results imply that
an appropriate policy by pet health care insurance providers should consider different
cost sharing formulas (premium and deductibility) for dogs and cats (Daneshvary &
Schwer, 2003).
2.8.3 Place.
Place includes company activities that make the product available to target
consumers (Armstrong & Kotler, 2003). Only in rare cases will customers go to much
trouble to secure a particular brand. Obviously, good channel decisions require a
sound knowledge of where target customers shop for the product (Hawkins et al.,
2001).
Marsh (1998) investigated that suitable trade channel intermediaries for pet
accessories are the many agents, importers and wholesalers that exist in each country.
Specialised retail outlets vary considerably according to region. In Western Europe,
specialized retail shops account for 80% of the market share. There are around 21,000
retail pet shops in Europe, including a growing number of pet supermarkets and
superstores. Pet shops stock a wide range of accessories, usually several hundred,
while the number of articles in a pet supermarket could exceed 8,000. In some
countries, grocery outlets only sell pre-packaged accessories around 50 items. Major
pet accessory wholesalers stock 5,000 to 8,000 items. Other specialised outlets in
Europe include garden centres, Do-It-Yourself shops, shops selling hunting and
fishing accessories, pet grooming parlours, seed and grain merchants, mail-order
firms and catalogue (direct marketing) services. Still others include pet breeders, dog
15
boarding kennels and catteries, veterinary practices which sell pet accessories, and the
agricultural distribution network which includes merchants, farm stores and selfservice shops.
In the United States, specialised retail outlets account for 42% of the market
share. There are 18,000 speciality retailers, including pet shops, aquarium shops,
grooming shops, feed stores, boarding kennels and catteries, veterinarians, pet
superstores, and agricultural stores; garden, hardware and feed stores; stores
specialising in horse supplies, and well over 150 retail-order businesses (Marsh,
1998).
2.8.4 Promotion.
Promotion means activities that communicate the merits of the product and
persuade target customers to buy it (Armstrong & Kotler, 2003). It includes
advertising, the sales force, public relations, and any other signal that the firm
provides about itself and its products (Hawkins et al., 2001).
Mcmellon, Charles, and Gladys (2004) investigated attitude, interest and
opinion categories for differences among pet owners and non-owners. Results
suggested significant differences among those who own only dogs, only cats, dogs
and cats, and non-owners. These differences are applied to decision making for
marketing strategy, creative executions and media planning. The essence of the
marketing concept revolves around segmentation, the magic that allows marketers to
identify potential target markets. In the highly competitive nature of many markets,
changing consumer attitudes and the inordinate amount of advertising clutter in
various media. The proposed segmentation scheme may allow some marketers to
reach their target markets in a more meaningful manner. Segmentation is an important
tool for advertisers in part due to an environment undergoing considerable change.
Younger audiences are more cynical than ever, advertising clutter continues to
increase, computers and web surfing occupy increasingly more attention and media
fragmentation continues. These factors suggest that consumers do not pay as much
attention to advertising as they have in prior years and that advertisers, more than
ever, need to be on the prowl for new methods that will effectively attract consumer’s
attention. These new approaches are likely to have implications for marketing
strategy, creative decisions and media placement.
16
Segmentation is the categorizing of a market into relatively homogeneous
consumer groups that might be motivated to behave in a similar manner towards a
product or service. The key for advertisers is to identify the similarities within groups,
particularly since research has shown that similar groups respond more favourably to
advertising messages when they identify with the content of the advertising. This
paper suggests that segmentation based on pet ownership has been largely overlooked
to date, with the exception of the pet industry, but that it can be viewed as a new
competitive tool that may effectively identify similarities in behaviours and attitudes
in consumer segments that previously had gone undetected. This approach is also
important given the growing trend in integrated marketing communications (IMC) to
use behaviours and attitudes (Hawkins et al., 2001).
A pet ownership segmentation approach has many managerial implications
including promotional strategy, creative decisions and media placement. The results
suggest people who do not own pets are more conservative in nature than pet owners.
For marketing strategy, the characteristic that revealed the most difference between
groups was very good at managing money. It would appear that non-owners are more
likely to agree strongly with this statement, while the segment that owns both cats and
dogs are less likely. This finding implies that advertisers and, in particular, creative
must be sensitive to these distinctions in creating advertising for clients in relevant
industries. For example, armed with the knowledge that pet owners are not as
confident about their money as non-owners, bank service advertisers may appeal to
pet owners' insecurities by featuring pets and pet owners in their advertisements.
Similarly, advertising for more sophisticated financial services may consider featuring
non-owners (ie no pets, even as symbols) in their advertisements since they are
already confident of their money-managing skills and may be more attentive to more
sophisticated investment advice. In another example, while pet owners appear to be
less brand loyalty, dog owners are more loyal among pet owners. Less brand loyal
consumers may be harder to hold suggesting a variety of promotional tactics to keep
them in the brand (Hawkins et al., 2001).
17
2.9 Retailing
Retailing covers all of the activities involved in the sale of products to final
consumers. Retailers range from large chains of specialized stores to individual
merchants. Some retailers operate from stores and others operate without a store.
Most retailers focus on selling physical goods produced by someone else.
Nevertheless, in the case of service retailing, retailer is also the producer. Because
they serve individual consumers, even the largest retailers face the challenge of
handling small transactions, and the number of transactions with consumers is much
greater than at other channel levels (Perreault & McCarthy, 2002).
There are store retailers, nonstore retailers, and retailer organizations. Retail
stores typically increase their services and raise their prices to cover the costs. These
higher costs provide an opportunity for new store forms to offer lower prices and less
service. New store types meet widely different consumer preferences for service
levels and specific services. Retailer can position themselves as offering one of four
levels of services (Kotler & Keller, 2006):
1) Self-service: is the cornerstone of all discount operations. Many customers
are willing to carry out their own to save money.
2) Self-selection: customers find their own goods, although they can ask for
assistance.
3) Limited service: these retailers carry more shopping goods, and customers
need more information and assistance. The stores also offer services (such
as credit and merchandise return privileges).
4) Full service: salespeople are ready to assist in every phase of locate,
compare, and select process. Customers who like to be waited on prefer
this type of store. The high staffing cost, along with the higher proportion
of specialty goods and slower-moving items and the many services, results
in high-cost retailing.
In the past, retailers held customers by offering convenient location,
special or unique assortments of goods, greater of better services than competitors,
and store credit cards. All of this has changed. Today, national brands found in
department stores, in their own shops, in merchandise outlets, and in off-price
discount stores. In their drive for volume, national-brand manufacturers have placed
their branded goods everywhere. The result is that retail-store assortments have grown
18
alike. Service differentiation also has eroded. Many stores have trimmed services, and
many discounters have increased services. In the face of increased competition from
discount houses and specialty stores, the stores are waging a comeback war. In
addition to locations in the centers of cities, many have branches in suburban
shopping centers, where parking is plentiful and family incomes are higher (Kotler &
Keller, 2006).
19
Chapter 3
Methodology
3.1 Introduction
In order to examine the consumer demographic and behavior factors,
including the factors influencing consumers’ purchasing decisions in pet retailing
businesses in Bangkok, this study was designed as a survey using a constructed
survey questionnaire to collect data from consumers in the Bangkok pet retailing
business. The purpose of this research is to identify factors influencing consumers’
purchasing decisions in the pet retailing business in Bangkok. The researcher
analyzed the data and variables using descriptive statistics including percentages,
frequencies, means, and standard deviations. Inferential statistics, including T-test,
and ANOVA were employed to test the hypotheses and answer questions.
3.2 Population and Sample Size
Determining the sample size, the target group of the study is people who have
been using either products or services provided by the pet retailing businesses, who
live in Bangkok. From the sampling observation at a pet shop which is located in Ladprao, Bangkok, on September 1, 2006, the number of customers purchasing either
products or service was 34 persons. This information was used together with
information that there are nearly 600 pet outlets in Bangkok (U.S. Commercial
Service, 2006). Using these numbers, the size of the population can be determined as
follows;
Population = Number of customer in one pet shop x
Number of pet outlet
= 34 x 600
= 20,400
Sample size can be determined by Yamane equation:
n = N/ [1+N (e) 2]
n = Sample size
N = Number of population (20,400)
e = Significance level (0.05 or 0.01)
20
Determining sample size by following application;
Sample size = 20,400 / [1+20,400 (0.05)2]
= 392.31
Therefore, a sample of 400 people who have been using either products or
services from pet retailer business, and live in Bangkok, needs to be canvassed.
3.3 Data Collecting Method
3.3.1 Secondary data.
The researcher obtained secondary and statistic data from several sources
including published books and periodicals, government publications, annual reports of
government of international organizations; academic journals and articles, case
studies and previous researches, relevant to demographic segmentation, consumer
buyer behavior, consumer decision making, buyer decision process; need recognition;
information search; evaluation of alternatives; purchase decision; postpurchase
behavior, marketing mix, and retailing.
3.3.2 Primary data.
Survey questionnaires were used as the instruments to collect data and
opinions about factors influencing consumers’ purchasing decisions in Bangkok pet
retailer business. Data collection was conducted by using non-probability sampling
techniques in types of convenient sampling at pet shops in Bangkok The
questionnaires were distributed to the sample group who had been using either
products or services from pet retailer business for the time being, and who live in
Bangkok. The researcher conducted the survey during the months of December 2005
and January 2006.
3.4 Research Design
The constructed-questionnaires were distributed to 400 people who have been
using either products or services from pet retailer business, and who live in Bangkok.
The questionnaire was composed of three parts including:
21
Part 1: Consisting of questions asking about personal data including the pet
ownership; questions number 1-8.
Part 2: Consisting of questions asking about the sample’s behavior data
including the frequency of purchasing from the Bangkok pet retailer; questions
number 9 -13.
Part 3: Consisting of questions asking respondents to rate the agreement level
of factors influencing purchasing decisions in the Bangkok per retailing business;
questions number 14.
3.5 Data Collecting Procedure
Instruments for collecting data in this study were personal (face-to-face)
surveys using constructed survey questionnaires. The data collecting procedures were
as follows:
1) The researcher collected secondary data from various sources such as
books, journals, government publications, reports, and the internet.
2) The constructed survey questionnaires were translated into Thai for Thai
respondents in order to ensure the reliability and validity of the research
instrument, and then distributed to people who have been using either
products or services from the pet retailer business.
3) The researcher analyzed the data and tested the hypotheses.
4) The researcher summarized the findings and made recommendations.
3.6 Data Analysis
The researcher analyzed the data variables using the SPSS program to
compute the results. The output of the program is presented in chapter four and the
results of respondents are presented as follows:
1) Descriptive statistics (frequencies, percentages, and means) were used to
describe
general
characteristics of
demographic
and
consumers’
purchasing decisions for the questions numbered 1-8 in the questionnaires.
2) Inferential statistics including t-Test were employed to find the
relationships between data variables (gender and consumer’s purchasing
decisions) for the questions numbered 2 and 14.13 in the questionnaires,
and ANOVA was used to compare between data variables (age, education
22
background, salary and consumers’ purchasing decisions) for the question
numbered 14.13 in the questionnaires.
3) Linear regression was employed to test hypotheses regarding the
relationship between consumers’ behavior and purchasing decisions, and
marketing mix factors and purchasing decisions for the questions
numbered 9, 13, and 14.1 to 14.13 in the questionnaires.
4) Content analysis was employed for recommendations for the questions
numbered 15 to 20 in the questionnaires.
The Variable Measurement
The researcher defined the criteria to measure the level of variables using five
level-Likert’s scale. In the discussion of the results, the variable value was defined by
utilizing width of class interval (Lind, Marchal, & Wathon, 2003) as follows:
interval width of each level = the highest score – the lowest score
interval number
= 5-1
5
= 0.80
Therefore, the result of the data analysis regarding each variable was
defined using the following classification:
Strongly Agree
=
5
Agree
=
4
Rather Agree
=
3
Disagree
=
2
Strongly Disagree
=
1
23
Table 3 Width of Class Interval
Strong Agree
Agree
Rather Agree
Disagree
Strongly
Disagree
(5)
(4)
(3)
(2)
(1)
4.21-5.00
3.41-4.20
2.61-3.40
1.81-2.60
1.00-1.80
The researcher found the means and interpreted them using the strategic
formula of width of class interval that can be divided into 5-class-intervals for the
questions numbered 14.1 to 14.13 in the questionnaire.
24
Chapter 4
Research Analysis and Results
4.1 Research Design
The researcher analyzed the data using the SPSS program to compute for the
result. The outputs of the program are presented in chapter five and the results of
response are presented as follows:
1) Descriptive statistics (frequencies, percentages, and means) were used to
describe
general
characteristic of demographics
and
consumers’
purchasing decisions. X and SD were used to analyze how customer place
importance on marketing mix factors in order to make decisions of using
either products or services from pet retailer.
2) Inferential statistics including t-Test were employed to find the
relationship between the data variables (gender and consumer’s purchasing
decision) at a significance level of 0.05, and ANOVA was used to compare
between data variables (age, educational background, salary and
consumers’ purchasing decisions) at a significance level of 0.05.
3) Linear regression was employed to test hypotheses regarding the
relationship between a consumer’s behavior and purchasing decisions, and
marketing mix factors and purchasing decisions.
4) Content analysis was employed for recommendations.
Symbol of data analysis:
N
= Population
X
= Mean
SD = Standard deviation
t
= t-Distribution
Sig. = Data valuable significance level of 0.005
25
4.2 Demographic Characteristic of Respondents
Demographic characteristic of the respondents obtained from questionnaires
was analyzed and presented in the following details.
4.2.1 Age.
Age was divided into 6 ranges, including range 1 (20 years or under), range 2
(21-30 years), range 3 (31-40 years), range 4 (41-50 years), range 5 (51-60 years), and
range 6 (Older than 60 years). Table 4.1 presents frequency distribution by Age.
Table 4.1 Demographic Background of Respondents Classified by Age
Age
Frequency
Percent
20 years or under
20
5.0
21-30 years
121
30.3
31-40 years
126
31.5
41-50 years
74
18.5
51-60 years
52
13.0
Older than 60 years
7
1.8
Total
400
100.0
The result from Table 4.1 reveals that the majority of the respondents are aged
between 31-40 years (31.5%) follow by 21-30 years (30.3%), 41-50 years (18.5%),
51-60 years (13%), 20 years or under (5%), and older than 60 years (1.8%)
respectively.
4.2.2 Gender.
The gender of 400 respondents who have been using pet retailer business and
having pets is presented in Table 4.2.
26
Table 4.2 Demographic Background of Respondents Classified by Gender
Gender
Frequency
Percent
Male
105
26
Female
295
74
Total
400
100.0
The result from table 4.2 shows that the major respondents in this group are
female (295 respondents) who accounted for 74% of the total respondents. The rest
are 105 male respondents who accounted for 26% of the total respondents.
4.2.3 Educational background.
Educational background was divided into 5 ranges, including range 1 (high
school/vocational), range 2 (Diploma), range 3 (bachelor’s degree), range 4 (master’s
degree), and range 5 (others). Table 4.3 shows frequency distribution by education
background.
Table 4.3 Demographic Background of Respondents Classified by Educational
Background
Educational Background
Frequency
Percent
High School/Vocational
59
14.8
Diploma
23
5.8
Bachelor’s Degree
230
57.5
Master’s Degree
83
20.8
Above Master’s Degree
5
1.3
400
100.0
Total
The descriptive analysis result from Table 4.3 indicates that the majority of the
respondents held a bachelor’s degree (57.5%), follows by master’s degree (20.8%),
high school/vocational (14.8%), diploma (5.8%), and above master degree (1.3%)
respectively.
27
4.2.4 Income.
Current salary was divided into 8 ranges, including range 1 (B10,000 or less),
range 2 (B10,001-B15,000), range 3 (B15,001-B20,000), range 4 (B20,001-B25,000),
range 5 (B25,001-B35,000), range 6 (B35,001-B45,000), range 7 (B45,001-B55,000),
and range 8 (More than B55,000). Table 4.4 shows the frequency distribution by
current salary.
Table 4.4 Demographic Background of Respondents Classified by Income
Current Salary
Frequency
Percent
B10,000 or less
72
18.0
B10,001-B15,000
52
13.0
B15,001-B20,000
47
11.8
B20,001-B25,000
45
11.3
B25,001-B35,000
87
21.8
B35,001-B45,000
39
9.8
B45,001-B55,000
33
8.3
More than B55,000
25
6.3
Total
400
100.0
The result from Table 4.4 shows that the majority of respondents have an
income in the range B25,001-B35,000 (21.8%), followed by B10,000 or less (18%),
B10,001-B20,000 (13%), B15,001-B20,000 (11.8%), B20,001-B25,000 (11.3%),
B35,001-B45,000 (9.8%), B45,000-B55,000 (8.3%), and More than B55,000 (6.3%)
respectively.
4.3 Consumer Behavior Characteristics of Respondents
Consumer behavior characteristics of the respondents obtained from
questionnaires was analyzed and presented in the following details.
4.3.1 Pet ownership.
Since this research was only interested in two kinds of pets, which were dogs
and cats, the result of the pets owned by people who have been using either product or
service from Bangkok pet retailer business is presented in Table 4.5.
28
Table 4.5 Behavior Characteristics of Respondents Classified by Pet Ownership
Pets
Frequency
Percent
Dog
357
86
Cat
59
14
Total
416
100
The result from Table 4.5 shows that the major respondents in this group have
a dog (357 respondents) who accounted for 86% of the total respondents. The rest
have a cat (59 respondents) who accounted for 14% of the total respondents.
4.3.2 Frequency of purchasing.
Frequency of purchasing was divided into 7 ranges, including range 1 (more
than once a week), range 2 (once a week), range 3 (two times a month), range 4 (once
a month), range 5 (every 3 months), range 6 (every 6 months), and range 7 (others).
Table 4.6 shows frequency distribution by frequency of purchasing.
Table 4.6 Behavior Characteristics of Respondents Classified by Frequency of
Purchasing
Frequency of Purchasing
Frequency
Percent
More than once a week
5
1.3
Once a week
51
12.8
Two times a month
90
22.5
Once a month
162
40.5
Every 3 months
45
11.3
Every 6 months
30
7.5
Others
17
4.3
Total
400
100.0
The result from Table 4.6 shows that the majority of the respondents have
been using either products or services from a pet retailer in the range of once a month
(40.5%), followed by two times a month (22.5%), once a week (12.8%), every 3
months (11.3%), every 6 months (7.5%), others (4.3%), and more than once a week
(1.3%) respectively.
29
4.3.3 Frequency of changing pet retailer.
Frequency of changing was divided into 4 groups, including never, seldom,
often, and occasionally. Table 4.7 shows the frequency of changing result.
Table 4.7 Behavior Characteristics of Respondents Classified by Frequency of
Changing Pet Retailer
Frequency of Changing Pet Retailer
Frequency
Percent
Never
35
8.8
Seldom
193
48.3
Often
19
4.8
Occasionally
153
38.3
Total
400
100.0
The result from Table 4.7 shows that the majority of the respondents have
seldom changed the pet retailer (48.3%), follows by occasionally (38.3%), never
change (8.8%), and often change (4.8%) respectively.
4.3.4 Average spending per time.
The average spent per time was divided into 5 ranges, including range 1 (Less
than B100), range 2 (B101-B300), range 3 (B301-B600), range 4 (B601-B900), and
range 5 (More than B900). Table 4.8 shows frequency distribution by average spent
per visit.
Table 4.8 Behavior Characteristics of Respondents Classified by Average Spending
per Time
Average Spending
Frequency
Percent
Less than B100
18
4.5
B101-B300
172
43.0
B301-B600
116
29.0
B601-B900
44
11.0
More than B900
50
12.5
Total
400
100.0
30
The result from Table 4.8 shows that the majority of the respondents have an
average cost per visit in the range B101-B300 (43%), followed by B301-B600 (29%),
More than B900 (12.5%), B601-B900 (11%), and Less than B100 (4.5%)
respectively.
4.3.5 Information channel.
Information channel was divided into 8 categories, including of TV, Radio,
Newspaper, Friends, General Magazine, Internet, Pet Magazine, and Others. Table 4.9
shows frequency distribution by distribution channels.
Table 4.9 Distribution Channels
Information Channel
Frequency
Percent
TV
172
24.2
Radio
19
2.7
Newspaper
44
6.2
Friends
163
22.9
General Magazine
84
11.8
Internet
67
9.4
Pet Magazine
98
13.8
Others
65
9.1
Total
712
100
The result from Table 4.9 shows that the majority of respondents received the
information from TV (24.2%), followed by friends (22.9%), pet magazine (13.8%),
general magazine (11.8%), internet (9.4%), others (9.1%), newspaper (6.2%), and
radio (2.7%) respectively.
4.3.6 Decision in choosing pet retailer.
The researcher divided how respondents who make decisions in using either
product or service from a pet retailer into 7 groups, including near the house, in a
shopping mall, has a good reputation, provides a good service, provides a good
product, offers a good price, and others. Table 4.10 shows frequency distribution by
decision in choosing pet retailer.
31
Table 4.10 Decision in Choosing Pet Retailer of Respondents
Decision in choosing pet retailer
Frequency
Percent
Near the house
203
31.4
In a shopping mall
95
14.7
Has a good reputation
23
3.6
Provides a good service
54
8.4
Provides a good product
127
19.7
Offers a good price
138
21.4
Others
6
0.9
Total
646
100
The result from Table 4.10 shows that the majority of respondents decided to
purchase either products or services from pet retailer for the reason that it is near the
house (31.4%), offers a good price (21.4%), provides a good product (19.7%), in a
shopping mall (14.7%), provides a good service (8.4%), has a good reputation (3.6%),
and others (0.9%) respectively. For the other reasons that the respondents specified in
the questionnaires were that they decided to purchase by accidentally when they just
walked pass, the retailer provided unique products which were in a needing of their
pets, or they had personal relationship with the shop owner.
4.3.7 Decision in changing pet retailer.
The researcher divided how respondents change the pet retailer into 7 groups,
including is not satisfied with the shop’s service, has less variety of products/services,
is not convenient with the shop location, is not convenient with the parking lot,
unreasonable prices or service fees, is not satisfied with the service from shop’s staff,
and others. Table 4.11 shows frequency distribution by decision in changing pet
retailer.
32
Table 4.11 Decision in Changing Pet Retailer of Respondents
Decision in changing pet retailer
Frequency
Percent
Is not satisfied with the shops’ services
52
9.6
Has less variety of products/services
147
27.2
Is not convenient with the shop location
87
16.1
Is not convenient with the parking lot
88
16.3
Unreasonable prices or service fees
113
20.9
Is not satisfied with the service from shop’s staff
30
5.6
Others
23
4.3
Total
540
100
The result from table 4.11 shows that majority of the respondents changed the
pet retailer for the reason that it has less variety of products or services (27.2%),
followed by unreasonable prices or service fees (20.9%), is not convenient with the
parking lot (16.3%), is not convenient with the shop location (16.2%), is not satisfied
with the shop’s service (9.6%), is not satisfied with the service from shop’s staff
(5.6%), and other reasons (4.3%) respectively. The other reasons that the respondents
specified in the questionnaires were that the retailer was no longer provide the
specific pet products or services that they needed, or they was convinced with their
family members to choose the other retailer.
4.4 Marketing Mix Factors that Influence Consumer Purchasing Decisions
The researcher defined the factors that influence the consumer purchasing
decision according to marketing mix factors, which are product, price, place, and
promotion, and then let the respondents rate how they placed importance on each
factor when needed to make a decision on which pet retailer would be selected as per
the following classification:
Width of class interval
4.21-5.00 = Strongly agree
3.41-4.20 = Agree
2.61-3.40 = Rather agree
1.81-2.60 = Disagree
1.00-1.80 = Strongly disagree
33
Table 4.12 General Characteristics of Consumers’ Purchasing Decisions
Purchasing Decision
X
SD
Relative Degree
Variety of Product
4.33
.728
Strongly agree
New Product
3.96
.868
Agree
Quality of Product
4.46
.682
Strongly agree
Quality of Service
4.22
.785
Strongly agree
Variety of Service
4.03
.796
Agree
Quality of Shop Staff
4.10
.815
Agree
Good Price
4.33
.773
Strongly agree
Good Location
4.34
.726
Strongly agree
Car Parking
4.16
.886
Agree
Hygiene of Place
4.33
.720
Strongly agree
Discount
4.05
.830
Agree
Premium
3.78
.908
Agree
Advertisement
3.41
.992
Agree
Table 4.12 illustrates that the respondents agreed that the marketing mix
factors had an influence towards purchasing decisions. The majority of the total
respondents gave importance to quality of product when needing to make a decision
which pet retailer would be selected ( X =4.46), followed by a good location
( X =4.34), hygiene of place ( X =4.33), variety of product ( X =4.33), good price
( X =4.33), quality of service ( X =4.22), car parking ( X =4.16), quality of shop staff
( X =4.10), discount ( X =4.05), variety of service ( X =4.03), new product ( X =3.96),
premium ( X =3.78), and advertisement ( X =3.41) respectively.
4.5 Testing Hypotheses
Inferential statistics including t-Test were employed to find the relationships
between data variables (gender and consumer’s purchasing decisions) and ANOVA
was used to compare between data variables (age, education background, salary and
consumers’ purchasing decisions) for the question number. Linear regression was
employed to test hypotheses regarding the relationship between consumers’ behavior
and purchasing decisions, and marketing mix factors and purchasing decisions.
34
4.5.1 Testing demographic factors on purchasing decisions in Bangkok
pet retailer business.
Hypotheses 1: there is a significant relationship between demographic factors
and consumers’ purchasing decisions in the Bangkok pet retailing business.
H0: There is not a significant relationship between demographic factors and
consumers’ purchasing decisions.
H1: There is a significant relationship between demographic factors and
consumers’ purchasing decisions.
1) The relationship between gender and consumers’ purchasing decisions
The researcher used a t-Test to find the relationship between data variables
(gender and consumer’s purchasing decision) at a significance level 0.05.
Table4.13 The Relationship between Gender and Consumers’ Purchasing Decisions
Gender and Consumers’
Purchasing Decision
Equal
Sig.
variances
assumed
diff
Sig.
X
(2-tailed)
diff
95%
Error
Confidence
diff
Upper
Lower
39
0.16
Equal variances not 5
assumed
t
Std.
-0.83 8
0.405
-0.07
0.08
-0.23
0.09
0.440
-0.07
0.09
-0.24
0.11
16
-0.77 1
The result from table 4.13 illustrates the relationship between gender and
consumers’ purchasing decisions. Since Sig. is 0.165, which is greater than 0.05, then
0.405 is selected from Sig (2-tailed) as equal variances assumed. P (possibility) is
0.405, α (significance level) is 0.05, so P is greater than α, which is not significant and
resulting to accept the null hypothesis (H0) and rejecting the alternative hypothesis
(H1).
It is indicated that there is not a significant relationship between gender and
consumers’ purchasing decisions in the Bangkok pet retailing business at the
significance level of 0.05. The gender has no significant influence on purchasing
decisions.
35
2) The relationship between age and consumers’ purchasing decisions
The researcher used ANOVA to find the relationship between data variables
(age and consumer’s purchasing decision) at a significant level of 0.05.
Table 4.14 The Relationship between Age and Consumers’ Purchasing Decisions
Age and Consumers’
Sum of
Purchasing Decisions
Squares
Between Groups
5.102
5
1.020
Within Groups
199.895
394
.507
Total
204.998
399
diff
Mean
Square
F
2.011
Sig.
.076
Table 4.14 illustrates the relationship between age and consumers’ purchasing
decisions. Since Sig. is 0.076, which is greater than 0.05, it results in accepting the
null hypothesis (H0) and rejecting the alternative hypothesis (H1). It could be noted
that there is no significance of purchasing decisions among respondents with different
ages. The age has no significant influence on purchasing decisions.
3) The relationship between educational background and consumers’
purchasing decisions
The researcher used ANOVA to find the relationship between data variables
(education background and consumer’s purchasing decision) at a significance level of
0.05.
Table 4.15 The Relationship between Educational Background and Consumers’
Purchasing Decisions
Education and
Consumers’
Sum of
Purchasing Decisions
Squares
Between Groups
1.66
0
Within Groups
203.
338
Total
204.
998
diff
Mean
F
Sig.
.806
.522
Square
4
.415
395
.515
399
36
Table 4.15 illustrates the relationship between educational background and
consumers’ purchasing decisions. Since Sig. is 0.522, which is greater than 0.05, it
results in accepting null hypothesis (H0) and rejecting the alternative hypothesis (H1).
It could be noted that there is no significance of purchasing decisions among
respondents with different educational backgrounds. The educational background has
no significant influence on purchasing decisions.
4) The relationship between monthly income and consumers’ purchasing
decisions
The researcher used ANOVA to find the relationship between data variables
(salary and consumer’s purchasing decision) at a significance level of 0.05.
Table 4.16 The Relationship between Monthly Income and Consumers’ Purchasing
Decisions
Monthly Income and
Consumers’
Sum of
Purchasing Decisions
Squares
Between Groups
5.20
9
Within Groups
199.
789
Total
204.
998
diff
Mean
F
Sig.
1.460
.180
Square
7
.744
392
.510
399
Table 4.16 illustrates the relationship between monthly income and
consumers’ purchasing decisions. Since Sig. is 0.180, which is greater than 0.05, it
results in accepting null hypothesis (H0) and rejecting the alternative hypothesis (H1).
It could be noted that there is no significance of purchasing decision among
respondents with different monthly income. The salary has no significant influence on
purchasing decisions.
37
4.5.2 Testing consumer behavior factors on purchasing decisions in
Bangkok pet retailer business.
Hypothesis 2: there is a significant relationship between consumer behavior
factors and consumers’ purchasing decisions in the Bangkok pet retailing business.
H0: there is not a significant relationship between consumer behavior factors
and consumers’ purchasing decision.
H1: there is a significant relationship between consumer behavior factors and
consumers’ purchasing decision.
.
Table 4.17 The Relationship between Consumer Behavior Factors and Consumers’
Purchasing Decisions
Consumer Behavior
Unstandardized
Standardized
Factors and
Coefficients
Coefficients
Consumers’
Purchasing Decisions
B
t
Std.
Sig.
Beta
Error
(Constant)
4.093
.176
23.217 .000
Frequency of Purchasing
-.063
.028
-.113
-2.241
.026
Average Spent per Visit
.068
.033
.104
2.070
.039
1) The relationship between frequency of purchasing and consumers'
purchasing decisions
According to the result from Table 4.17, since Sig. is 0.026 which is less than
0.05, it results in rejecting null hypothesis (H0) and accepting the alternative
hypothesis (H1). It could be elaborated that there is significance of purchasing
decisions among respondents with different frequency of purchasing. The frequency
of purchasing has a significant influence on purchasing decisions.
2) The relationship between averages spending per visit and consumers'
purchasing decisions
According to the result from Table 4.17, since Sig. is 0.039 which is less than
0.05, it results in rejecting null hypothesis (H0) and accepting the alternative
hypothesis (H1). It could be noted that there is significance of purchasing decisions
38
among respondents with different average spending per visit. The average spending
per visit has a significant influence on purchasing decisions.
4.5.3 Testing marketing mix factors on purchasing decisions in Bangkok
pet retailer business.
Hypothesis 3: there is a significant relationship between marketing mix factors
and consumers’ purchasing decisions in the Bangkok pet retailing business.
H0: there is not a significant relationship between marketing mix factors and
consumers’ purchasing decisions.
H1: there is a significant relationship between marketing mix factors and
consumers’ purchasing decisions.
Table 4.18 The Relationship between Marketing Mix Factors and Consumers’
Purchasing Decisions
Marketing Mix
Unstandardized
Standardized
Factors and
Coefficients
Coefficients
t
Consumers’
purchasing Decisions
B
Beta
Std. Error
(Constant)
1.136
.272
Variety of product
.081
.054
New product
-.030
Quality of product
Sig.
4.181
.000
.082
1.491
.137
.045
-.036
-.663
.508
.161
.066
.153
2.453
.015
Quality of shop’s service
.158
.060
.173
2.619
.009
Variety of service
.060
.050
.067
1.194
.233
Price
.017
.053
.019
.324
.746
Location
.077
.056
.078
1.373
.171
Car parking
.036
.046
.044
.779
.437
Hygiene of place
.068
.060
.069
1.143
.254
Sale promotion - discount -.156
.062
-.181
-2.504
.013
Sale promotion- premium .064
.056
.081
1.140
.255
Advertisement
.039
.200
3.666
.000
.145
39
Table 4.18 illustrates the relationship between marketing mix factors and
consumers’ purchasing decisions as per the following details:
1) The relationship between variety of product and consumers’ purchasing
decisions has Sig. at 0.137, which is greater than 0.05. It shows that the
variety of product has no significant influence on purchasing decisions.
2) The relationship between new products and consumers’ purchasing
decisions has Sig. at 0.508, which is greater than 0.05. It shows that the
new product has no significant influence on purchasing decisions.
3) The relationship between quality of product and consumers’ purchasing
decisions has Sig. at 0.015, which is less than 0.05. It shows that the
quality of product has significant influence on purchasing decisions.
4) The relationship between quality of shop’s service and consumers’
purchasing decisions has Sig. at 0.009, which is less than 0.05. It shows
that the quality of shop’s service has significant influence on purchasing
decisions.
5) The relationship between variety of service and consumers’ purchasing
decisions has Sig. at 0.233, which is greater than 0.05. It shows that the
variety of service has no significant influence on purchasing decisions.
6) The relationship between price and consumers’ purchasing decisions has
Sig. at 0.746, which is greater than 0.05. It shows that the price has no
significant influence on purchasing decisions.
7) The relationship between location and consumers’ purchasing decisions
has Sig. at 0.171, which is greater than 0.05. It shows that the location has
no significant influence on purchasing decisions.
8) The relationship between car parking and consumers’ purchasing decisions
has Sig. at 0.437, which is greater than 0.05. It shows that the car parking
has no significant influence on purchasing decisions.
9) The relationship between hygiene of place and consumers’ purchasing
decisions has Sig. at 0.254, which is greater than 0.05. It shows that the
hygiene of place has no significant influence on purchasing decisions.
10) The relationship between sale promotion (discount) and consumers’
purchasing decisions has Sig. at 0.013, which is less than 0.05. It shows
that the sale promotion (discount) has significant influence on purchasing
decisions.
40
11) The relationship between sale promotion (premium) and consumers’
purchasing decisions has Sig. at 0.255, which is greater than 0.05. It shows
that the sale promotion (premium) has no significant influence on
purchasing decisions.
12) The relationship between advertisement and consumers’ purchasing
decisions has Sig. at 0.00, which is less than 0.05. It shows that the sale
advertisement has significant influence on purchasing decisions.
41
Chapter 5
Conclusions, Discussion, and Recommendations
5.1 Summary of Findings
The study identified the independent variables into 3 groups, which are
demographic factors, consumer’s behavior factors and marketing mix factors, while
the dependent variable is the consumers’ purchasing decision in the Bangkok pet
retailing business.
The survey instrument was divided into 3 parts, which are the personal
information, behavior information, and the agreement level of factors influencing
purchasing decisions. The questionnaires were distributed to 400 consumers who have
been using either products or services from the Bangkok pet retailing business and
have a dog or a cat as the pet for the time being.
The collected data is analyzed by using the Statistical Package for Social
Science (SPSS). The descriptive statistics (frequency, percentages, and means) were
used to describe general characteristic of demographic and consumers’ purchasing
decisions. The inferential statistics including t-Test were employed to find the
relationships between data variables (gender and consumer’s purchasing decisions)
and ANOVA was used to compare between data variables (age, education
background, salary and consumers’ purchasing decisions). The linear regression
technique was employed to test hypotheses regarding the relationship between
consumers’ behavior and purchasing decisions, and marketing mix factors and
purchasing decisions.
This study explores the factors that influence the consumers’ purchasing
decisions in the Bangkok pet retailing business. The followings are the summary of
findings that are based on the research questions and hypotheses.
5.2 Findings of the Study
5.2.1 Demographic profile of respondents.
The gender of 400 respondents who have been using the pet retailer business
and having pets at present are 105 males and 295 females.
42
Figure 5.1 illustrates that the respondents are aged between 31-40 years
(31.5%) follow by 21-30 years (30.3%), 41-50 years (18.5%), 51-60 years (13%), 20
years or under (5%), and older than 60 years (1.8%) respectively.
35
30
Percent
25
20
15
10
5
0
20 years or
under
21-30
years
31-40
years
41-50
years
51-60
years
Older than
60 years
Age
Figure 5.1 Age of 400 Respondents
Figure 5.2 illustrates that the respondents held a bachelor’s degree (57.5%),
followed by master’s degree (20.8%), high school/vocational (14.8%), diploma
Above Master’s
Degree
Master’s Degree
Bachelor’s
Degree
Diploma
70
60
50
40
30
20
10
0
High
School/Vocation
al
Percent
(5.8%), and above master’s degree (1.3%) respectively.
Educational Background
Figure 5.2 Education Background of 400 Respondents
Figure 5.3 illustrates that the income of respondents are in the range of
B25,001-B35,000 (21.8%), followed by B10,000 or less (18%), B10,001-B20,000
43
(13%), B15,001-B20,000 (11.8%), B20,001-B25,000 (11.3%), B35,001-B45,000
(9.8%), B45,000-B55,000 (8.3%), and more than B55,000 (6.3%) respectively.
25
Percent
20
15
10
5
0
B10,000 B10,001- B15,001- B20,001- B25,001- B35,001- B45,001or less B15,000 B20,000 B25,000 B35,000 B45,000 B55,000
More
than
B55,000
Monthly Income
Figure 5.3 Income of 400 respondents
Based on the data collected, it can be summarized that the majority of the
respondents are females, age between 31-40 years old, holding bachelor’s degrees,
and with a monthly income of between B25,001-B35,000 Baht.
5.2.2 Consumer behavior characteristics of respondents.
Most respondents have a dog (86%), followed by a cat (14%). Figure 5.5
illustrates that the respondents have been using either products or services from a pet
retailer once a month (40.5%), followed by two times a month (22.5%), once a week
(12.8%), every 3 months (11.3%), every 6 months (7.5%), others (4.3%), and more
than once a week (1.3%) respectively.
44
Percent
45
40
35
30
25
20
15
10
5
0
More
Once a
than once week
a week
Two
times a
month
Once a
month
Every 3
months
Every 6
months
Others
Frequency of Purchasing
Figure 5.4 Frequency of Purchasing
Figure 5.5 illustrates that the respondents have seldom changed their pet
retailer (48.3%), followed by occasionally (38.3%), never change (8.8%), and often
change (4.8%) respectively.
60
Percent
50
40
30
20
10
0
Never
Seldom
Often
Occationally
Frequency of Changing
Figure 5.5 Frequency of Changing Pet Retailer
Figure 5.6 illustrates that the average spending per visit of the respondents are
in the range B101-B300 (43%), follows by B301-B600 (29%), more than B900
(12.5%), B601-B900 (11%), and less than B100 (4.5%) respectively.
45
Percent
50
45
40
35
30
25
20
15
10
5
0
Less than
B100
B101-B300 B301-B600 B601-B900
More than
B900
Average Spending per Time
Figure 5.6 Average Spending per Time
Figure 5.7 illustrates that the respondents receive the information from
television (24.2%), followed by Friends (22.9%), Pet magazine (13.8%), General
magazine (11.8%), Internet (9.4%), Others (9.1%), Newspaper (6.2%), and Radio
(2.7%) respectively.
30
Percent
25
20
15
10
5
0
TV
Radio
Newspaper
Friends
General
Magazine
Internet
Pet
Magazine
Others
Information Channel
Figure 5.7 Information Channel
Figure 5.8 illustrates that the respondents made decisions in using either
products or services from a pet retailer with the reason that it is near to the house
(31.4%), offers a good price (21.4%), provides a good product (19.7%), in a shopping
mall (14.7%), provides a good service (8.4%), has a good reputation (3.6%), and
others (0.9%) respectively.
46
Percent
35
30
25
20
15
10
5
0
Near the
house
In a
shopping
mall
Has a Provides a Provides a Offers a
good
good
good
good price
reputation service
product
Others
Decision in Choosing Pet Retailer
Figure 5.8 Decision in Choosing Pet Retailer
Figure 5.9 shows how respondents change the pet retailer are that the pet
retailer has less variety of products or services (27.2%), followed by unreasonable
price or service fee (20.9%), is not convenient with a parking lot (16.3%), is not
convenient with the shop location (16.2%), is not satisfied with the shop’s service
(9.6%), is not satisfied with the service from shop’s staff (5.6%), and other reason
Others
Is not satisfied
with the service
from shop’s staff
Unreasonable
prices or service
fees
Is not convenient
with the parking
lot
Is not convenient
with the shop
location
Has less variety
of
products/service
s
30
25
20
15
10
5
0
Is not satisfied
with the shops’
services
Percent
(4.3%) respectively.
Decision in Changing Pet Retailer
Figure 5.9 Decision in Changing Pet Retailer
Based on the data collected, it has shown that 80.2% of the respondents have a
dog, 40.5% of them patronize a pet retailer once monthly for either products or
services. The average spending per visit was in the range of between 101-300 Baht
(48.3%). Certain buying pattern & Sense of Loyalty was also shown from the results,
47
as 48.3% of the respondents did not switch from their regular pet retailers. 24.2% of
the respondents receive the information from television.
In addition, it shows that the respondent based much emphasis on location for
the selection of pet retailers. In which 24.2% of them selected pet retailers near their
homes. Reasons given by 27.2% of the respondents for switching pet retailers was
that it has less variety of products or services, which unable to cater for their needs or
requirements.
This result is compatible to the pet ownership of Hongkong people, catownership is growing at a faster rate than that of the other types of pets. However,
dogs are more popular than cats as pets. Pet shop owners predict that the number of
households in Hong Kong keeping cats will increase as cats are of lower maintenance
than dogs, and are therefore more suited to the busy lifestyles of Hong Kong residents
The major end-users of commercial pet foods are the pet breeders, pet shop owners
who usually also act as pet breeders, household pet owners and corporations that have
aquariums in their offices or places of business. Hong Kong household pet owners
spend, on average, between US$39-65 per month on pet foods and food supplements,
accessories and other supplies (Swee-keng Cheong, 2004).
5.2.3 Marketing mix factors that influence consumer purchasing
decisions.
The data collected shows that the respondents agreed that the marketing mix
factors have an influence towards purchasing decision. From descending order, the
respondents find that quality of products ( X =4.46) is the most important criteria for
the selection of pet retailers. Next follow by good location ( X =4.34), hygiene of
place ( X =4.33), variety of product ( X =4.33), good price ( X =4.33), quality of
service ( X =4.22), car parking ( X =4.16), quality of shop staff ( X =4.10), discount
( X =4.05), variety of service ( X =4.03), new product ( X =3.96). Surprisingly sales
promotion (premium) ( X =3.78), and advertisement ( X =3.41) from the retailers are
the least important factors by the respondents.
The result is compatible to the research of Hongkong pet ownership in that
the consumers are willing to spend on good quality and nutritious pet foods. Sales
prospects for snack foods for dogs and cats, and pet supplies such as toys, water
bottles, fanciful collars, shampoos, and carrier bags, remain bright. There is a high48
level of U.S. brands-awareness in Hong Kong making U.S. brands the market leaders
in both the popular and premium pet foods and pet supplies sectors. U.S. pet foods
enjoy a good reputation of being functional, of having good nutritional value, and
resilient packaging (Swee-keng Cheong, 2004).
5.2.4 Testing of hypotheses.
1) Hypotheses 1
Males and females do not make different purchasing decisions in Bangkok pet
retailer business at a significance level of 0.05. The gender has no significant
influence on purchasing decisions.
The age has no significant influence on purchasing decisions. The respondents
who are 20 years or under, 21-30 years, 31-40 years, 41-50 years, 51-60 years, and
older than 60 years do not make different purchasing decisions in the Bangkok pet
retailing business.
The educational background has no significant influence on purchasing
decisions. The respondents who held high school, diploma, bachelor’s degree,
master’s degree, and other certificate do not make different purchasing decision in the
Bangkok pet retailing business.
The monthly income has no significant influence on purchasing decisions. The
respondents who have an income of B10,000 or less, B10,001-B15,000, B15,001B20,000, B20,001-B25,000, B25,001-B35,000, range B35,001-B45,000, B45,001B55,000, and more than B55,000 do not make different purchasing decisions in the
Bangkok pet retailing business.
According to the result, it can be summarized that the demographic factors
which are gender, age, educational background and salary, have no significant
relationship with purchasing decisions. Although, consumer researchers must
recognize that gender differences, despite movements away from the sex role
dominance, still exist for some products and in some situations (Roger, Paul & James
(2004). Nevertheless, this factor does not have much importance on consumers’
purchasing decisions since the objective is not to purchase for themselves, but for
their pets. Instead of considering their background, they will focus more on the pets,
e.g. sort of pets, age, gender, etc.
49
2) Hypothesis 2
The frequency of purchasing has a significant influence on purchasing
decisions. The respondents who have been using either products or services from pet
retailers with the frequency of more than once a week, once a week, two times a
month, once a month, every 3 months, every 6 months, and other frequency have
different purchasing decisions in the Bangkok pet retailing business.
The average spending per visit has a significant influence on purchasing
decisions. The respondents who have an average spending per visit less than B100,
B101-B300, B301-B600, B601-B900, and more than B900 have different purchasing
decisions in the Bangkok pet retailing business.
According to the result, it can be summarized that the consumer behavior
factors have a significant relationship with the purchasing decisions.
3) Hypothesis 3
Table 5 illustrates the summary test result of Hypothesis 3.
Table 5 Hypothesis 3 Summary Test Result
No.
1
2
3
4
5
6
7
Hypothesis
Ho = There is not a significant relationship between the variety
of product and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the new
products and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the quality
of product and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the quality
of shop’s service and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the variety
of service and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the price
and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the
location and consumers’ purchasing decisions.
50
Conclusion
Accept
Accept
Reject
Reject
Accept
Accept
Accept
No.
8
9
10
11
12
Hypothesis
Conclusion
Ho = There is not a significant relationship between the car
parking and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the
hygiene of place and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the sales
promotion (discount) and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the sales
promotion (premium) and consumers’ purchasing decisions.
Ho = There is not a significant relationship between the
advertisement and consumers’ purchasing decisions.
Accept
Accept
Reject
Accept
Reject
Retailers with outstanding Product Quality can draw tremendous attraction to
the consumers. Consumers tend to seek out products that are safe for their pets
and will not have any long-term effect or impact. The sales promotion (discount) is
one of the factors that the consumers consider when they need or want to
purchase products or services especially those regular or daily products such as pet
foods and pet accessories. Furthermore, the advertising is also important for the
consumers to have more information about the pet retailers. Advertisement helps the
consumers in shortening their decision-making in selection of pet retailers
However, the consumers do not place much importance on the variety of
products and the new products launched. The location, car parking, and the hygiene of
the retailer are not the main factors that the consumers consider when comes to
purchasing decision. In addition, sales promotion (premium) does not make much
impact/attraction on the consumers purchasing decision.
The results show that not all the marketing mix factors influence the
consumers’ purchasing decisions, although they are in the same category. This result
is compatible with the Hongkong industry sources indicating that 80% of Hong Kong
pet owners are willing to pay for premium pet products and the percentage is
increasing. The veterinarian’s (there are about 80 veterinarians in Hong Kong)
recommendations on the types and brands of pet foods influence more than 50% of
Hong Kong end-users’ purchases. The specialty pet shops’ recommendations and
advertisements also play a part in influencing the brands that end-users buy. Other
51
factors
that
influence
purchasing
decisions
are
country
of
origin
and
packaging. Local end-users are averse to buying products that are made in
China. The most popular products are those that are made in the U.S., Japan, and
Australia. American and Japanese packagings are considered to be most resilient and
attractive, respectively. Local importers find European packaging of pet products to
be inferior in quality to those of the Japanese or Americans (Swee-keng Cheong,
2004).
5.3 Research Difficulties and Limitations
The important limitation of the research is to define the exact number of the
customers in all pet shops, which are located in Bangkok to compute for the number
of population. Therefore, the researcher does sampling one pet shop for observation
the number of customer.
Time and cost constraints are the major limitations in this study, which
presented the researcher with obstacles in getting the results. Since the population is
the people who have been using either products or services from the Bangkok pet
retailers and have pets at present, this consumed a lot of time for selecting the
respondents.
Moreover, some of the respondents did not want to be interviewed for
personal reasons.
5.4 Recommendations for Further Research
According to the recommendations collected from the respondents, it would
suggest that further research could focus not only on the sorts of pets but also on the
breed of pets. It was suggested that the pet retailer should have the products that are
appropriate to the breeds and the ages of the pets. The service price for pets is still
considered as high. It would also recommend hiring the staff, who has a service mind
especially in pet servicing. The parking lot is one of the most important factors when
considering choosing the pet retailer. Since it is raining often in Bangkok, it would be
appreciated if there is a direct covered link way connecting between the parking area
to the pet shop in order to avoid getting wet. More over, there should be the
promotion campaigns regarding the membership of the pet retailers, since the result
shows that the consumers are quite loyal to their pet retailer, as the majority of the
respondents seldom change this.
52
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55
Appendix A
Questionnaire (English)
Influential Factors on Consumers’ Purchasing Decisions in Bangkok Pet Retailing
Business
Personal Information
Instruction: Please mark (/) in front of the answers that apply to you (one answer for
one question).
1. Age
20 years or under
21-30 years
31-40 years
41-50 years
51-60 years
Older than 60 years
2. Gender
Male
Female
3. Educational Background
High School/Vocational
Diploma
Bachelor’s Degree
Master’s Degree
Above Master’s Degree, please specify.…………………………………….
4. Monthly Income
B10,000 or lesser
B10,001-B15,000
B15,001-B20,000
B20,001-B25,000
B25,001-B35,000
B35,001-B45,000
B45,001-B55,000
More than B55,000
5. Do you have pet at present?
Yes
No
56
6. What kind of pet do you have?
Dog
Cat
7. Have you ever used either product/service from Pet retailer?
Yes
No
8. Where did you get the information about the pet retailer?
Television
Radio
Daily Newspaper
Friends or Relatives
Magazine
Internet
Magazine
Others, please specify…………..
Behavior Information
Instruction: Please mark (/) in front of the answers that apply to you (can choose more
than one answer).
9. How often do you purchase either product or service from the pet retailer?
More than once a week
Once a week
Two times a month
Once a month
Every 3 months
Every 6 months
Others, please specify ………………………………………………….
10. How could you select the pet retailer?
Near by the house
In shopping mall
Has a good reputation
Provide good services
Provide good products
Reasonable price
Others, please specify ..............................................................................................
57
11. How often you change the pet retailer?
Never change
Seldom change
Often change
Occasionally change
12. What is the major factor which makes you to move using service from another
retailer?
Is not satisfied with the shop’s service
Has less variety of products/services
Is not convenient with parking lot
Is not convenient with the shop location
Unreasonable prices or service fees
Is not satisfied with the service from shop’s staff
Others, please specify.........................................................................................................
13. How much average do you spend per time?
Less than 100 Baht
101-300 Baht
301-600 Baht
601-900 Baht
More than 901 Baht
58
Purchasing Decision
14. Please rate your opinion why you decide to use either product or service from the
pet retailer by ticking (/) in a box that you deem appropriate.
Strong Agree
=
5
Agree
=
4
Rather
=
3
Disagree
=
2
Strongly Disagree
=
1
Level (ระดับ)
The reason why you decide to use
either product or service from this pet
retailer
5
14.1 Variety of products
14.2 New products
14.3 Quality of products
14.4 Quality of pet services
14.5 Variety of service equipments
14.6 Price
14.7 Comfortable place
14.8 Car parking
14.9 Hygiene of the place
14.10 Sale promotion – Discount
14.11 Sale promotion – Premium
14.12 Advertisement
14.13 Do you agree to make purchasing
decision in using this pet retailer?
59
4
3
2
1
Your suggestion for improvement
15. Pet product…………………………………………………………………….
………………………………………………………………………………...
………………………………………………………………………………...
16. Pet service …………...………………………………………………………….
…………………………………………………………………………………..
…………………………………………………………………………………..
17. Staffs’ service ………………………………………………………………….
.…………………………………………………………………………………
………………………………………………………………………………….
18. Price………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
19. Place …………...………………………………………………………………..
……...........................……………………………………………………………
…………………………………………………………………………………..
20. Sale promotion …………………………………………………………………
………………………………………………………………………………….
…………….……………………………………………………………………
60
Appendix B
Questionnaire (Thai)
แบบสอบถาม
ปจจัยที่มีอิทธิพลตอการตัดสินใจซื้อของผูบริโภคในธุรกิจคาปลีกดานสัตวเลี้ยง
ขอมูลสวนบุคคล
วิธีการ: ทําเครื่องหมาย (/) ลงในชองที่ตองการเลือก กรุณาเลือกเพียงคําตอบเดียว
1. อายุ
20 ป หรือ ต่ํากวา
31-40 ป
51-60 ป
21-30 ป
41-50 ป
มากกวา 60 ป
ชาย
หญิง
2. เพศ
3. การศึกษา
มัธยมศึกษา/ปวช
ปวส./ อนุปริญญา
ป.ตรี
ป.โท
สูงกวาปริญญาตรี,โปรดระบุ..............................................…………………………………………….
4. รายไดตอเดือน
10,000 บาท หรือต่ํากวา
15,001-20,000 บาท
25,001-35,000 บาท
45,001-55,000 บาท
10,001-15,000 บาท
20,001-25,000 บาท
35,001-45,000 บาท
มากกวา 55,000 บาท
5. ปจจุบันทานมีสัตวเลี้ยงหรือไม
ใช
ไม
6. สัตวเลี้ยงที่ทานมีเปนประเภทใด
แมว
สุนัข
61
7. ทานเคยใชผลิตภัณฑหรือบริการจากรานคาปลีกเกี่ยวกับสัตวเลี้ยงหรือไม
เคย
ไมเคย
8. ทานรับรูขอมูลเกี่ยวกับรานคาปลีกเกี่ยวกับสัตวเลี้ยงมาจากที่ไหน
โทรทัศน
วิทยุ
นสพ.
เพื่อน หรือ ญาติ
นิตยสารทั่วไป
อินเทอรเน็ต
นิตยสารสัตวเลี้ยง
อื่นๆ, โปรดระบุ................................
ขอมูลทางดานพฤติกรรม
วิธีการ: ทําเครื่องหมาย (/) ลงในชองที่ตองการเลือก สามารถเลือกไดมากกวา 1 คําตอบ
9. ทานซื้อผลิตภัณฑหรือบริการจากรานคาปลีกเกี่ยวกับสัตวเลี้ยงบอยเทาใด
มากกวา 1 ครั้งตอสัปดาห
1 ครั้งตอสัปดาห
2 ครั้งตอเดือน
1 ครั้งตอเดือน
ทุก 3 เดือน
ทุก 6 เดือน
อื่นๆ, โปรดระบุ……………………………………….……………………………………………..
10. ทานมีวิธีการเลือกใชรานคาปลีกเกี่ยวกับสัตวเลี้ยงอยางไร
ใกลบาน
อยูในหางสรรพสินคา
มีชื่อเสียงดี
ใหบริการดี
มีผลิตภัณฑดี
ราคาเหมาะสม
อื่นๆ, โปรดระบุ .................................................................................................................................
11. ทานเปลี่ยนรานคาปลีกเกี่ยวกับสัตวเลี้ยงบอยเทาใด
ไมเคยเปลี่ยน
ไมคอยเปลี่ยน
เปลี่ยนบอย
แลวแตโอกาส
62
12. อะไรคือสวนสําคัญที่ทําใหทานเปลี่ยนการใชบริการจากรานคาปลีกสัตวเลี้ยงอื่น
ไมพอใจในการบริการของราน
มีความหลากหลายของสินคาและบริการนอย
สถานที่จอดรถไมสะดวก
ทําเลที่ตั้งของรานไมสะดวก
ราคาของสินคาและการบริการไมเหมาะสม
ไมพอใจในการใหบริการของพนักงาน
อื่นๆ, โปรดระบุ ................................................................................................................................
13. ทานมีคาใชจายเฉลี่ยตอครั้งในรานคาปลีกสําหรับสัตวเลี้ยงเทาไร
ต่ํากวา 100 บาท
101-500 บาท
301-600 บาท
601-900 บาท
มากกวา 901 บาท
การตัดสินใจซื้อ
14. กรุณาเลือกระดับความคิดเห็นเกี่ยวกับสาเหตุที่ทานตัดสินใจซื้อผลิตภัณฑหรือบริการจากรานคาปลีกดานสัตว
เลี้ยงโดยทําเครื่องหมาย (/) ในชองที่ทานมีความเห็นสอดคลอง โดยสามารถเลือกไดมากกวา 1 คําตอบ
เห็นดวยเปนอยางยิ่ง
เห็นดวย
คอนขางเห็นดวย
ไมเห็นดวย
ไมเห็นดวยเปนอยางยิ่ง
=
=
=
=
=
63
5
4
3
2
1
ระดับ
เหตุผลที่ทําใหทานตัดสินใจใชสินคาหรือบริการจาก
รานคาปลีกเกี่ยวกับสัตวเลี้ยงนี้
5
4
3
14.1 มีความหลากหลายของผลิตภัณฑ
14.2 มีผลิตภัณฑใหมๆอยูเสมอ
14.3 คุณภาพของผลิตภัณฑ
14.4 คุณภาพของการบริการ
14.5 ความหลากหลายของอุปกรณที่บริการ
14.6 ราคาพอสมควร
14.7 ความสะดวกเรื่องสถานที่
14.8 มีสถานที่จอดรถ
14.9 ความสะอาด/สุขลักษณะของสถานที่
14.10 การสงเสริมการขายดานการลดราคา
14.11 การสงเสริมการขายดานของสมนาคุณ
14.12 โฆษณา
14.13 ทานมีความเห็นดวยในการตัดสินใจใชรานคา
ปลีกสําหรับสัตวเลี้ยงนี้หรือไม
ความคิดเห็นสําหรับการปรับปรุง
15. ผลิตภัณฑสําหรับสัตวเลี้ยง ………………………………………………………….
………………………………………………………………………………...
………………………………………………………………………………...
16. บริการสําหรับสัตวเลี้ยง…...………………………………………………………….
…………………………………………………………………………………..
…………………………………………………………………………………..
17. การบริการของพนักงาน .…………………………………………………………….
.…………………………………………………………………………………
………………………………………………………………………………….
64
2
1
18. ราคา………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
19. สถานที่ …………...………………………………………………………………..
……...........................……………………………………………………………
……………………………………………………………………………………..
20. การสงเสริมการขาย …………………………………………………………………
……………………………………………………………………………………….
…………….……………………………………………………..
65
Appendix C
Thailand Statistical Data
Number of Villages Having Dogs/Cats and Number of Dogs/Cats Classified by
Ownership and Region.
Region
Central
Northern
North
Eastern
Southern
Total
Number
of
villages
Number of villages having
dogs/cats
15,242
15,355
15,031
15,146
Non
ownership
5,774
3,125
31,122
8,310
70,029
30,713
7,952
68,842
8,298
3,957
21,514
Ownership
Number of dog/cat
Ownership
Dog
Cat
1,436,572 566,218
1,468,594 609,765
Non ownership
Dog
Cat
130,314 65,202
45,311
32,782
1,987,166
426,372
5,318,704
58,480
61,635
295,740
664,984
365,647
2,206,614
114,076
59,382
271,433
Source: National Statistical Office (2004).
Population Size of Thailand Classified by Gender, 1970,1980,1990,1999 and 2000
(Million persons)
Year
Both Genders
1970
34.4
-100
1980
44.8
-100
1990
54.6
-100
Women
17.3
-50.2
22.5
-50.2
27.5
-50.4
Men
17.1
-49.8
22.3
-49.8
27.1
-49.6
Gender ratio
99.1
30.9
-50.2
30.7
-49.8
99.5
62.4
31.3
-100
-50.2
Source: National Statistical Office (2004)
31.1
-49.8
99.4
19991/
61.6
-100
20001/
Note : Figures in parenthesis are percentages.
66
99.3
98.5
Appendix D
Bangkok Statistical Data
Source: National Statistical Office (2005).
67
Biography
Name: Tarinee Chaipradermsak
Date of Birth: November 29, 1979
Place of Birth: Bangkok Thailand
Institutions Attended:
1997-1999
Rajamangala Institue of Technology (Electronics), Tak,
Thailand.
1999-2001
Kingmongkut’s Institue of Technology, Ladkrabang
(Electronics&Computer), Bangkok, Thailand.
2005-2007
Shinawatra International University (MBA), Bangkok,
Thailand.
Home Address:
62 M..2, Pamamoung, Muang, Tak 6300.
Telephone:
+84 667 7008
E-mail:
[email protected]
68