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Information & Leadership: Effect on consumer purchasing habits

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Presentation made for my Marketing Research class at the John Molson School of Business. (MARK 302/ Autumn 2013)
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INFORMATION & LEADERSHIP: EFFECT ON CONSUMER PURCHASING HABITS MARK 302 JMSB DESGAGNÉ CYNTHIA F.-FERNANDES MARCUS NGUYEN PAUL TOUBIAN RONA ZHU BOLIN
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Page 1: Information & Leadership: Effect on consumer purchasing habits

INFORMATION & LEADERSHIP:

EFFECT ON CONSUMER

PURCHASING HABITS

MARK 302JMSB

DESGAGNÉ CYNTHIA

F.-FERNANDESMARCUS

NGUYENPAUL

TOUBIANRONA

ZHUBOLIN

Page 2: Information & Leadership: Effect on consumer purchasing habits

RESEARCH PROBLEMS

Page 3: Information & Leadership: Effect on consumer purchasing habits

INFORMATION OVERLOAD IN THE CONTEXT OF APPAREL, EFFECTS ON CONFIDENCE, SHOPPERS ORIENTATION AND LEADERSHIP

(JULIE V. STANTON AND DIANE M.

PAOLO 2012)

Page 4: Information & Leadership: Effect on consumer purchasing habits

HYPOTHESES

Consumer confidence regarding apparel purchases will be adversely affected by consumer perceptions of

information overload.

H1

Higher perceptions of information overload will be correlated with negative or utilitarian shopping

orientations while lower perceptions of overload will be correlated with more positive shopping orientations.

H2

Page 5: Information & Leadership: Effect on consumer purchasing habits

More exposure to fashion information will increase clothing purchasing.

H3

Being a trendsetter or a follower in a social group will affect their apparel purchases positively.

H4

HYPOTHESES

Page 6: Information & Leadership: Effect on consumer purchasing habits

MODELS

PERCEPTION OF INFORMATION

CONFIDENCESHOPPING

ORIENTATIONS

HYPOTHESIS 1 HYPOTHESIS 2

Page 7: Information & Leadership: Effect on consumer purchasing habits

MODELS

EXPOSURE SOCIAL STANDING

APPAREL PURCHASE

HYPOTHESIS 3 HYPOTHESIS 4

Page 8: Information & Leadership: Effect on consumer purchasing habits

LITERATU

RE R

EVIE

WM

ETH

OD

OLO

GY

&

Page 9: Information & Leadership: Effect on consumer purchasing habits

Purchase decision process leads to:

• Problem recognition

• Information search

• Evaluation of alternatives

• Purchase

• Post-purchase evaluation

LITER

ATU

RE R

EV

IEWINFORMAT ION EXPOSURE AND APPAREL PURCHAS ING

Page 10: Information & Leadership: Effect on consumer purchasing habits

INFORMAT ION EXPOSURE AND APPAREL PURCHAS ING

Type of techniques to inform shoppers:

• More visual and verbal information

• Attitudes and purchase intentions

More positive

• Bigger images leads to higher purchase

intentions

• Smaller images leads to lower purchase

intentionsLITER

ATU

RE R

EV

IEW

Page 11: Information & Leadership: Effect on consumer purchasing habits

TRENDSETTER VS . FOLLOWERS APPAREL PURCHASES

Trendsetters according to Summers:

• Higher income

• Higher education

• Social involvement

• Media influence

• Higher budget allocated to apparel

LITER

ATU

RE R

EV

IEW

Page 12: Information & Leadership: Effect on consumer purchasing habits

• Buy at different locations

• Impulsive

• Budget allocation

• Different online shopping habits

LITER

ATU

RE R

EV

IEW

TRENDSETTER VS . FOLLOWERS APPAREL PURCHASES

Page 13: Information & Leadership: Effect on consumer purchasing habits

OVERALL

Trendsetters:

• Interest in fashion

• Impulsive buying behavior

• Buy trendy apparel to be “up-to-date”

• Buy at specialty stores or department stores

Followers:

• No interest in fashion

• Follows budget

• Buy apparel to “fit in”

• Buy at discount stores

LITER

ATU

RE R

EV

IEW

Page 14: Information & Leadership: Effect on consumer purchasing habits

COLLECTION OF PRIMARY AND SECONDARY DATA

GOALS:

• Rep l i ca te a s tudy

• Create two new re la ted hypo theses in

o rde r to compare fi nd ings and add to

p rev ious research

SECONDARY DATA :

D a t a b a s e s

PR IMARY :

S u r v e y Q u a n t i t a t i v e D a t a

METH

OD

OLO

GY

Page 15: Information & Leadership: Effect on consumer purchasing habits

S A M P L I N G

• Conven ience

• No Spec ifi c Emphas i s On Gender

• Samp le s i ze : 50 S tudents

METH

OD

OLO

GY

Participants

18-20 21-2324-2627+

Page 16: Information & Leadership: Effect on consumer purchasing habits

INTERPRETATION&DATA ANALYSIS

Page 17: Information & Leadership: Effect on consumer purchasing habits

s h o p p i n g c o n fi d e n c e

1

s h o p p i n g o r i e n t a t i o n

3

S E V E N F A C T O R S

p e r c e p t i o n o f i n f o r m a t i o n2

e x p o s u r e t o i n f o r m a t i o n 4

p u r c h a s i n g h a b i t s

5

s o c i a l s t a n d i n g 6

a p p a r e l p u r c h a s e

7

Page 18: Information & Leadership: Effect on consumer purchasing habits

s h o p p i n g c o n fi d e n c e

1

p e r c e p t i o n o f i n f o r m a t i o n2

Sample Question:

(Q1C): I feel more ____ when I inform myself on

apparel.

Sample Question:

(Q2B): There are so many places to find out fashion trends

that it makes me overwhelmed.

Page 19: Information & Leadership: Effect on consumer purchasing habits

s h o p p i n g o r i e n t a t i o n

3

e x p o s u r e t o i n f o r m a t i o n 4

Sample question:

(Q3F): Shopping itself is an enjoyable activity regardless of

whether I buy something or not.

Sample question:

(Q4E): I constantly see apparel

advertisement.

Page 20: Information & Leadership: Effect on consumer purchasing habits

p u r c h a s i n g h a b i t s

5

s o c i a l s t a n d i n g 6

Sample question:

(Q5B): I buy what I see in

ads.Sample question:

(Q6C): If you and your friends were to discuss fashion, what role

would you be most likely to play?

(Q6H): I do not want to be the first person to be wearing something

unusual.

Page 21: Information & Leadership: Effect on consumer purchasing habits

ap

pa

re

l p

ur

ch

as

e7

Sample question:

(Q7): I get ideas from what the people are wearing and I

will look for something similar.

Page 22: Information & Leadership: Effect on consumer purchasing habits

*data generated from SPSS*

Model B Std. Deviation Beta t Sig.

PerceptionOf

Information 0.011 0.048 0.033 0.228 0.821

FIGURE 1.A COEFFICIENTSA HYPOTHESIS 1

H1

“Consumer confidence regarding apparel purchases will be adversely affected by consumer perceptions of

information overload.”

Page 23: Information & Leadership: Effect on consumer purchasing habits

Shopping Confidence

Perception Of Information

Person Correlation 0.033

Sig. (Two-tailed) 0.821

FIGURE 1.C CORRELATIONS HYPOTHESIS 1

H1

“Consumer confidence regarding apparel purchases will be adversely affected by consumer perceptions of

information overload.”

*data generated from SPSS*

Page 24: Information & Leadership: Effect on consumer purchasing habits

Model B Std. Deviation Beta t Sig.

PerceptionOf

Information -0.001 0.100 -0.002 -0.011 0.991

FIGURE 2.A COEFFICIENTSA HYPOTHESIS 2

H2

“Higher perceptions of information overload will be correlated with negative or utilitarian shopping

orientations while lower perceptions of overload will be correlated with more

positive shopping orientations.”

*data generated from SPSS*

Page 25: Information & Leadership: Effect on consumer purchasing habits

Perception Of Information

Shopping Orientations

Person Correlation -0.002

Sig. (Two-tailed) 0.991

FIGURE 2.C CORRELATIONS HYPOTHESIS 2

H2

“Higher perceptions of information overload will be correlated with negative or utilitarian shopping

orientations while lower perceptions of overload will be correlated with more

positive shopping orientations.”

*data generated from SPSS*

Page 26: Information & Leadership: Effect on consumer purchasing habits

H3“More exposure to fashion

information will increase clothing purchasing.”

Model B Std. Deviation Beta t Sig.

ExposureTo

Information -0.077 0.100 -0.065 -0.169 0.241

FIGURE 3.A COEFFICIENTSA HYPOTHESIS 3

*data generated from SPSS*

Page 27: Information & Leadership: Effect on consumer purchasing habits

Purchasing Habits

Exposure to Information

Person Correlation -0.169

Sig. (Two-tailed) 0.241

FIGURE 3.C CORRELATIONS HYPOTHESIS 3

H3“More exposure to fashion

information will increase clothing purchasing.”

*data generated from SPSS*

Page 28: Information & Leadership: Effect on consumer purchasing habits

H4“Being a trendsetter or a follower in a social group will affect their apparel

purchases positively.”

Model B Std. Deviation Beta t Sig.

Social Standings 0.302 0.065 0.554 4.616 0.000

FIGURE 4.A COEFFICIENTSA HYPOTHESIS 4

*data generated from SPSS*

Page 29: Information & Leadership: Effect on consumer purchasing habits

Apparel Purchase

Social Standings Person Correlation 0.554

Sig. (Two-tailed) 0.000

FIGURE 4.C CORRELATIONS HYPOTHESIS 4

H4“Being a trendsetter or a follower in a social group will affect their apparel

purchases positively.”

*data generated from SPSS*

Page 30: Information & Leadership: Effect on consumer purchasing habits

FIGURE 4.B CORRELATIONS HYPOTHESIS 4 Model R Square

1 0.307

H4“Being a trendsetter or a follower in a social group will affect their apparel

purchases positively.”

*data generated from SPSS*

Page 31: Information & Leadership: Effect on consumer purchasing habits

LIMITATIONS

SA

MP

LE

SI Z

ES

UR

VE

Y &

TI M

E

TY

PE O

F D

ATA

CO

LLEC

TIO

N M

ETH

OD

Page 32: Information & Leadership: Effect on consumer purchasing habits

LIMITATIONS

AGE: 18-27

PARTICIPANTS: Only students attending JMSB

GENDER: Not specific

Cannot represent the population as a whole

SA

MP

LE

SI Z

E

Page 33: Information & Leadership: Effect on consumer purchasing habits

PARTICIPANTS COMPLETED SURVEYS RAPIDLY

DESIGN FLAW: Lack Of A Positive Or

Negative End Of Scale

DISCREPANCY WITH SPSS

QUANTITATIVE DATA ONLY

LIMITATIONS SU

RV

EY

& T

I ME

Page 34: Information & Leadership: Effect on consumer purchasing habits

LACK OF OBSERVATIONAL AND EXPERIMENTAL DATA COLLECTION METHODS

RESPONSE BIAS

HYPOTHESIS TESTED: General

Failed to go in depth to focus on a specific topic within the hypothesis

LIMITATIONS

TY

PE O

F D

ATA

CO

LLEC

TIO

N M

ETH

OD

Page 35: Information & Leadership: Effect on consumer purchasing habits

CONCLUSION

• Replicated hypotheses did not yield the same results• Sample size is not representative• Marketers must go big or go home

• An overload of information makes consumers less inclined to purchase

Page 36: Information & Leadership: Effect on consumer purchasing habits

?COMMENTS

QUESTIONS

Page 37: Information & Leadership: Effect on consumer purchasing habits

THANK YOU!


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