FACTORS INFLUENCING CONSUMER'S BUYING BEHAVIOR USING UNILEVER, GHANA AS A CASE STUDY

FACTORS INFLUENCING CONSUMER'S BUYING BEHAVIOR USING UNILEVER, GHANA AS A CASE STUDY

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Background Of The Study

According to Shaw and Jones (2005), consumer behavior has long been a subject of analysis by market researchers the world over. It is only by carefully studying patterns in consumer’s buying behavior that investors can make informed decisions on whether or not to venture in a certain market to launch a product, re package it or even shelf it. Although many studies have been done on consumer behavior (Kotler, 2001) there still remains a gap in the amount of information available concerning global market consumer behavior. With the world now becoming one global market and consumers coming from different cultures world over, there is need for researchers to examine the key triggers of consumers to better understand the global market. According to Kotler (2003) consumer buying behavior is the purchasing behavior of people and households who buy goods and services for personal consumption. There are many factors that can affect the process of buying as the consumer works through the purchase decision (Kotler, 2003). According to Kotler and Armstrong (2001), there are four main factors that affect consumer buying behavior: Cultural factors, social factors, personal factors and psychological factors. They further classified cultural factors as including Culture, sub-culture and social class. Cultural shift was also highlighted as a key factor influencing consumer behavior under cultural behavior. Varying tastes and preferences of different cultures does affect buyer behavior according to the two. In Taiwan for example, the market was observed to be inclined to green colored caps because this color is of greater significance within the Taiwanese culture (Kotler and Armstrong, 2001).

Kotler (2003) also states that growing children acquire sets of values, perceptions, preferences and behaviors through their family and other key institutions. Values and beliefs are mental images that affect a wide range of specific attitudes that in turn, influence the way a person is likely to respond in a specific situation. The criteria a person uses to evaluate alternative brands in a product and his or her eventual preference for one of these brands over the other, are influenced by both a person’s general values e.g. perceptions as to what constitutes quality and the meaning of country of origin, and specific beliefs (Schiffman and Kanuk, 2010). Each culture consists of smaller subculture that provides more specific identification and socialization for their members. Nationalities, religions, racial groups, and geographic regions form subcultures. When subcultures grow large and affluent enough, companies normally design specialized marketing programs to serve them (Kotler, 2003).

Customs on the other hand, are overt modes of behavior that constitute culturally approved or acceptable ways of behaving in specific situations. Customs consist of everyday or routine behavior which informs customers’ behavior towards products (Schiffman and Kanuk, 2010). Rapaille (2007) adds that the culture code is the unconscious meaning we apply to any given thing for example a car, a type of food, a relationship or even a country, via the culture in which we are raised. The impact of culture is so natural and so ingrained that its influence on behavior is rarely noted and often taken for granted. However, cultural beliefs, values and customs continue to be followed as long as they yield satisfaction and when a specific standard no longer satisfies the members of a society, it is modified or replaced so that the resulting standard is more in line with current needs and desires. Thus, culture gradually but continuously evolves to meet the needs of society (Schiffman and Kanuk, 2010).

Kotler (2003) identified social and cultural factors that influence consumer behavior. The social factors include reference groups, family, social roles and statuses. The cultural factors that are particularly important in buyer behavior are culture, subculture and social class. According to Schiffman and Kanuk (2010), culture can exist and sometimes reveal itself at different perceived or subjective levels. In reference to consumer behavior, the first level can be thought of as the supranational level which reflects the underlying dimensions of culture that impact multiple cultures or different societies. The second level is concerned with national level factors such as shared core values, customs, personalities and pre-dispositional factors that tend to capture the essence of the ‘national character’ of the citizens of a particular country and finally, group level factors which are concerned with various sub divisions of a country or society. They might include subcultures’ difference, and membership and reference group differences (Schiffman and Kanuk, 2010).

According to Kotler (2003), almost all human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different castes are reared for certain roles and cannot change their caste membership. Normally, it takes the form of social classes, relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests and behavior. Social classes reflect not only income, but other indicators such as occupation, education and area of residence. Social classes also differ in dress, speech patterns, recreational preferences, and many other characteristics. First, those within each class tend to behave more alike than persons from two different social classes. Second, persons are perceived as occupying inferior or superior positions according to social class. Third, social class is indicated by a cluster of variables rather than any single variable. Social classes also show distinct consumption preferences in many areas as well as language differences thus marketers must ring true to the targeted social class (Kotler, 2003).

In a study conducted by Luna and Gupta (2002) on an understanding of how culture influences consumer behavior, it is clear that globalization of markets and international competitions are requiring firms to operate in a multicultural environment. In addition, migration patterns and transnational communication media are creating multi cultural populations in domestic markets and exposing consumers to alternative behaviors and wants.

The early theories concerning consumer buying behavior were based on economic theory on the notion that individuals act rationally to maximize their satisfactions in the purchase of goods and services. Later research discovered that consumers are just as likely to purchase impulsively and to be influenced not only by family and friends, by advertisements and role models, but also by mood, situation and emotion. All of these factors combine to form a comprehensive model of consumer behavior that reflects both the cognitive and emotional aspects of consumer decision making. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. In the light of the above, this study seek to ascertain the factors influencing consumers buying behaviour.

1.2 Statement Of Problem

In the manufacturing industry, many studies have been conducted to better understand consumer behavior. One such study conducted in Mexico revealed that strategic product positioning and effective retailing influences consumers buying behaviour. According to Oladele (2011), social factors contribute to consumers buying behaviour. Following the model proposed by Kotler (2003), Oladele(2014) identified three broad categories of factors that might influence consumer behavior: Social factors, Cultural factors and personal factors. 

However, it has been assumed that African companies are not as matured in their analysis and assessment of their consumer base, when compared to companies in developed countries. Maturity in this context can be defined as having progressed to a state of understanding the required consumer and consumer base. Companies in Africa are not mature largely due to their inherent composition, and also because of the consumers that they serve. Much of Ghana’s markets are also immature, with a large portion of purchasing happening in open markets. It is estimated that over 50% of total consumer purchasing happens in open markets in Ghana, which is one of Africa’s largest economies (CNBC Africa, 2014). These problems make it glaring that there is a need to carry out a study on the factors influencing consumer buying behavior in Ghana.

1.3 Objectives Of  The Study

The overall aim of this study is to critically examine the factors influencing consumer's buying behavior using Unilever, Ghana as a case study. Hence, the study will be channeled to the following specific objectives;

1. Determine whether cultural influence determines consumers buying behavior in Ghana.
2. Determine whether consumers occupation and income level influences their buying behavior in Ghana.
3. Determine whether psychological factors influences consumers buying behavior in Ghana.
4. Determine whether product positioning influences consumers buying behavior in Ghana.
5. Determine whether marketing pricing strategy influences consumers buying behaviour.

1.4 Research Question

The study will be guided by the following questions;

1. Does cultural influence determines consumers buying behavior in Ghana?
2. Does consumers occupation and income level influence their buying behavior in Ghana?
3. Does psychological factors influence consumers buying behavior in Ghana?
4. Does product positioning influence consumers buying behavior in Ghana?
5. Does marketing pricing strategy influence consumers buying behaviour?

1.5 Significance Of The Study

The findings of this research are of interest to policy analysts, business organizations, decision makers, and marketing managers in their efforts to formulate policies and make decisions that impact positively on consumers’ buying behaviours, motivational approaches and retain more loyal employees. It is expected that the findings of the study will enable academicians and researchers to better understand and forecast not only of the subject of purchases but also of purchasing motives and purchasing frequency. It is further expected that the findings of this study will help the manufacturing companies to recognize consumer behavioural attributes and needs, lifestyles, and consumers’ motives behind purchase and then make proper marketing-mix decisions.

Additionally, subsequent researchers will use it as literature review. This means that, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regards to the factors influencing consumer's buying behavior using Unilever, Ghana.

1.6 Scope Of The Study

This study is structured to generally evaluate the factors influencing consumer's buying behavior using Unilever, Ghana. However, the study will further determine whether cultural influence determines consumers buying behavior in Ghana, determine whether consumers occupation and income level influences their buying behavior in Ghana, determine whether psychological factors influences consumers buying behavior in Ghana, determine whether product positioning influences consumers buying behavior in Ghana, and determine whether marketing pricing strategy influences consumers buying behaviour.

The respondents for this study will be obtained from selected Unilever branches in Ghana.

1.7 Limitation Of The Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.8 Definition Of Terms

Consumer behavior

Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs (Schiffman and Kanuk, 2010).

Culture

Schiffman and Kanuk (2010) define culture as the sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society. Belief and value are the accumulated feelings and priorities that individuals have about “things” and possessions.

Social Class

Schiffman and Kanuk (2010) define social class as the division of members of a society into hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.

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