1
PAUL NNAMDI ADUBA
PG/MBA/07/46914
PG/M. Sc/09/51723
AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF CUSTOMER
BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH
EASTERN STATES
PUBLIC ADMINISTRATION
A THESIS SUBMITTED TO THE DEPARTMENT OF MARKETING, FACULTY OF
BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA ENUGU CAMPUS
Webmaster
Digitally Signed by Webmaster’s Name
DN : CN = Webmaster’s name O= University of Nigeria, Nsukka
OU = Innovation Centre
APRIL, 2009
2
AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF CUSTOMER BUYING BEHAVIOUR OF
INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES
BY
PAUL NNAMDI ADUBA
PG/MBA/07/46914
DEPARTMENT OF MARKETING,
FACULTY OF BUSINESS ADMINISTATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
SUPERVISOR: PROF.J.O.ONAH
APRIL 2009
3
CERTIFICATION
I Hereby certify that this dissertation report was approved by the
department of marketing for Paul Nnamdi Aduba (pg/mba/07/46914)
and was carried out successfully under my supervision in accordance
with the regulations for the award of Masters of Business
Administration Degree (MBA) in Marketing, at the University of
Nigeria, Enugu Campus.
-----------------------------
PAUL NNAMDI ADUBA
PG/MBA/07/46914
------------------------------ -----------------------------------
Prof. J. O. Onah Dr. (Mrs.) G. E. Ugwuonah
Project supervisor Head of Department
Date---------------------- Date---------------------------
4
DEDICATION
This work is dedicated to the Almighty God for the strength,,
wisdom and understanding he has given to me through all those
difficult times and also to my only twin brother PETER ADUBA for his
immense support, assistance and encouragement
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ACKNOWLEDGEMENT
My profound gratitude goes to my supervisor Prof. Julius .O.
Onah whose criticism, corrections, suggestions, guidance and advice
contributed immensely in making this project a reality.
I am also grateful to my head department, DR (MRS)
G.E.UGWUONAH for her advice and encouragement. I also express
my gratitude to all my lecturers – Mrs .J.N. Modebe, Dr Chukwudi
Nwaizugbo- former head of department, Prof. J.O. Onah, Dr (Mrs)
Nnabuko, Achison C.B, and the rest of them in the department of
marketing, who had at one time or the other instilled in me a valuable
knowledge in this field of study.
This thesis could not have come to realty without the
encouragement and assistance given to me by my cousin- chief. E.C.
Okwudinka (Ojinnaka) Mrs Gloria Ikwueme, Mrs Ifeanyi Obiji,
Nwanneka ,Uchenna Aduba, Uchenna Obanye, Stephen Ugwu and
Chukwunweike Enweani (Igwe Okaka). Barrister Johnbosco
Ekwedigwe, Chinedu Agu and Magnus Udeh.
Finally, I thank my friend and colleagues in the field of study,
who were not mentioned above and to several authors from whose
books, I have abstracted information. I owe immense debt of
gratitude
PAUL ADUBA
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ABSTRACT
The main purpose of this study is to identify the motivational
influences on customer buying behaviour of industrial products in the
south- eastern states and to profer strategies that would enable
producers of industrial products to gain a desirable fair market share.
The south- eastern states covered in this study are- Anambra, Enugu,
Ebonyi Imo and partly Abia states.
The methodological approach adopted is the survey method of
research. The research studied relationship with the buyers of
industrial products.
Literature review was made from works done by eminent
scholars, professionals and other marketing practitioners and
secondary data was sourced too. Primary data for this study was
gathered from questionnaires sample and oral interviews
administered to industrial users which was tested.
The data collected were tabulated and analyzed using
spearman rank order correction coefficient (RHO)rs as test statistic:
rs=1-6∑ds/N (Ns-1).
The findings of this research shows that
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a) Price plays a significant role in the buying decision of industrial
product user / customer.
b) Many industrial product users always make use of straight
rebuy method.
c) Though a product many be substandard, people still opted for
it.
d) Industrial product customer makes their purchase occasionally.
It is concluded that
a) Price and trade name are significant variables in consideration
by industrial customers as motivational factor.
b) Companies with good product image and trade name/mark
stand to gain more market share as they adopt straight rebuy
method.
c) The study strongly recommends that manufactures of industrial
products should improve on their product quality with
considerate price reductions, as this highly influenced their
customers.
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TABLE OF CONTENTS
Page
Title Page - - - - - - - - - i
Certification - - - - - - - - ii
Dedication - - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table of Contents - - - - - - - vii
List of Figures - - - - - - - - xi
List of Tables - - - - - - - - xii
CHAPTER ONE
INTRODUCTION
1.1 General Overview of the Problem - - - - 1
1.2 Statement of the Problem - - - - - 4
1.3 Objective of the Study - - - - - - 5
1.4 Research Question - - - - - - 6
1.5 Research Hypothesis - - - - - - 6
1.6 Significance of Study - - - - - - 7
1.7 Scope and limitation of Study - - - - 8
1.8 Definition of Terms - - - - - - 9
1.9 Organization of Study - - - - - - 11
References - - - - - - - - 13
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CHAPTER TWO
OVERVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - 14
2.1.1 Consumer Behaviour - - - - - - 15
2.1.2 Marketing Strategy - - - - - - 16
2.2 Consumer Buying Decisions Process - - - 17
2.2.1 Types of Buying Behaviour - - - - - 19
2.2.2 Buying Influences - - - - - - 23
2.2.3 Trade Name and Buying Behaviour - - - 25
2.3 Theories of Motivation - - - - - - 25
2.3.1 Major Theories on Motivations - - - - 27
2.3.2 Maslows Hierarchy of Needs - - - - 30
2.3.2.1 Mcqune’s Psychological Motives - - - 34
2.4 Motivational Influences in the Customer Buying
Behaviour - - - - - - - 36
2.4.1 The Role of Incentive in Behaviour Modification - - 39
2.5 Consumer Goods versus Industrial Goods - - 40
2.6 Factors Affecting the Purchase of Industrial Goods - 44
2.6.1 Types of purchases/Buying Situation - - - 45
References - - - - - - - - 48
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction - - - - - -- - 49
3.2 Research Design - - - - - - 50
3.3 Sampling Procedure - - - - - - 51
3.4 Data Collection Method - - - - - 51
3.5 Data Analysis Techniques - - - - - 52
3.6 Validity and Reliability Test of Instrument - - 53
3.7 Summary - - - - - - - - 54
References - - - - - - - - 55
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction - - - - - - - 56
4.2 Response Rate - - - - - - - 56
4.3 Testing of Hypothesis - - - - - - 66
References - - - - - - - - 71
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CHAPTER FIVE
DISCUSSION, RECOMMENDATION AND CONCLUSION
5.1 Introduction - - - - - - - 72
5.2 Discussion of Research Findings - - - - 72
5.3 Conclusion - - - - - - - 73
5.4 Recommendation - - - - - - 74
Bibliography - - - - - - - - 76
Appendix A……..Questionnaire - - - - 78
Appendix B………Oral interview Guide - - - - 83
Appendix C……..Analytical tool for testing hypothesis one.- 84
Appendix D…….Analytical tool for testing hypothesis two. - 91
Appendix E…….Map showing the location of study. - - 98
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LIST OF FIGURE
Figure 2.2 Consumer Buying Decision Processes – a
comparison - - - - - - - 19
Figure 2.3.2 Abraham Maslows Hierarchy of needs - 32
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LIST OF TABLE
Table 4.2.1 Sample States and Questionnaire Distributed - 57
Table 4.2.2 Demographic Data of Respondents - - 58
Table 4.2.3 Period of service with the company - - 59
Table 4.2.4 Company Relationship with Industrial products - 60
Table 4.2.5 Purchase Period of Industrial Products - - 60
Table 4.2.6 Categories of Products Purchased - - 61
Table 4.2.7 Motivational influences and industrial buyer - 62
Table 4.2.8 Price / Customer buying relationship - - 63
Table 4.2.9 Relationship between Price and Quality - - 63
Table 4.2.10 Customer and Purchasing Pattern - - 64
Table 4.2.11Relationship between Trade name and customer 65
Table 4.2.12 Trade name versus buying Behaviour - - 65
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AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF
CUSTOMER BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS
IN THE SOUTH EASTERN STATES
BEING dissertation REPORT SUBMITTED IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTERS DEGREE IN BUSINESS ADMINISTRATION
(MBA) DEGREE IN MARKETING
TO
DEPARTMENT OF MARKETING,
FACULTY OF BUSINESS ADMINISTATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
BY PAUL NNAMDI ADUBA
PG/MBA/07/46914
APRIL 2009
15
CHAPTER ONE
INTRODUCTION
1.1 Overview of the problem
Motivation is a general term used to refer to the entire class of
drives,desire,need , wishes and similar forces .It refers to the drive
and effort to satisfy a want or goal .(Nobert::1999, .245).
According to Nwachukwu (2006, p.186) “Motivation is that
energizing force that induce or compel and maintain behavior “.He
maintained that human behaviour is motivated and it is goal directed
.Motivation in essence is concerned with the reason behind people
doing things. He went further by emphasizing that Motivation is an
internal psychological process whose presence or absence is inferred
from observed performance.
People act because there is a felt need ,which should be
satisfied .Every effort made is to satisfy such perceived need , This
calls for the analysis of consumer behaviour as it affects the
behavioral pattern of the customer in satisfying those perceived
needs or wants.
Customers are central to the practice of marketing, since
without customers, a business cannot survive. The stress here is
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understandably given that the existence of any business is dependent
on the patronage from the customers or the consumer. It is necessary
to mention here that there are two types of customer or consumer –
ultimate customer or consumer and industrial customer or consumer
The ultimate customer buys goods and services for personal
consumption while the industrial customer, according to Achison
(2000:36)”buys goods and services for some tangible productive and
commercially significant purposes. This research work, intends to
concentrate on the activities and behavioral pattern of the industrial
product customer.
Generally, the Motivation behind the purchases by these two
customers or consumers is basically different. Ultimate customer
buys product in order to derive benefit and satisfaction while the
industrial customers buys goods and services (products) in order to
make profit. An industrial customer buys a product for its value and
expected benefit. The value of an industrial product to the customer
is dependent upon its ability to affect efficiency , profitability and
other benefits in use .It has been observed that industrial customers
are usually concerned with the procurement of goods and services
that are expected to provide significant levels of benefits,,
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efficiency. Durability and profitability in his operation. Which means
that industrial product is purchased on performance and benefit
basis.
In this regard, the ability of industrial customer to discern the
economic benefit of his procurement is very essential in his
purchasing. In addition, the industrial customer should be more
rational in his purchasing activity than emotional .Rational economic
motive is more significant than purely emotional consideration. A
supplier may entice the buyer (industrial customer) with low prices
but an astute buyer should be assured of the product reliability , not
only in meeting up with expected services but in the competence
of the supplier in the knowledge of his product , dependability and
good relationship.
Certainty of supply, dependability, Meeting up with schedules
and technical assistance are among the motivating factors in the
purchase decision , while price and trade mark or name plays a
significant role in the buying decision of an industrial product user
or buyer.
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Hence this work tends to study and analyze those motivational
influences that affects the customer buying behaviour of industrial
products in the South –Eastern states in Nigeria.
1.2 Statement of Problems
It is observed that the industrial customer usually choose to buy
a product because it will yield results or profit at greater rate than its
cost (Taylor- show, 1969).
It is one thing to produce goods and service and another to
market them. The marketing practitioner is interested in knowing why
some customer’s buys a particular brand, why others do not and how
non users could be persuaded to become users. All these calls for a
research into those motivational factors that influences the purchase
decisions of those industrial customers with special reference to
some states in the South – Eastern Part of Nigeria.
An analysis of consumer behaviour and decision process will
be a very vital tool in order to give this research work a thorough and
comprehensive touch. A general look at the model of consumer
decision making from authors like Onah and Thomas (2004), Kotler
(2006) Engel (1993) Nicosia (1966) Bear the same theme that
consumer behaviour for a product is a sociological and psychological
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force both interacting with the external environment to produce a
purchase decision. Essentially all agreed that the buyer passes
through five stages in their purchase decisions.
(1) Problem /need recognition.
(2) Information search / search for alternative.
(3) Evaluation of alternatives.
(4) Selection of optional alternative/ purchase decision.
(5) Implementation of decision /outcome.
All these stages come into play before the actual purchase is made.
Specifically, the following motivational factors influence the
purchase of industrial products- price, quality, availability of goods
and spare parts, and finally trade mark/ name. The above named or
mentioned factor that influence the purchase decision of the industrial
customer is what this research work is expected to study ,analyze
and test.
1.3 Objective of the Study
The objective of this research study includes.
(1) To find out the impact of trade name, in customer buying
behaviour of industrial products.
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(2) To find out how price of industrial products affects or
influences customers buying behaviour.
(3) To ascertain whether sociological factors influence customer
buying behaviour of industrial products.
1.4 Research Question
The following are the research questions that guide the steps of
the researcher in the course of carrying out a research work on the
topic of this work. This includes
(1) Does price of industrial products affects the buying decision
of industrial customer?
(2) Does trade name affects buying behaviour of industrial
customers?
(3) What are the sociological factors that influence the purchase
of industrial products?
1.5 Research Hypothesis
Ho1: There is no positive and significant relationship between
price and industrial buying behaviour.
Alt H1: There is a positive and significant relationship between
Price and industrial buying behaviour.
Ho2: There is no positive and significant relationship between
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Trade name and industrial buying behaviour.
Alt H2: There is a positive and significant relationship between
Trade name and industrial buying behaviour.
1.6 Significance of the Study
An analysis of motivation and how it influences the buying
behaviour of industrial product is very important in our contemporary
society. Any distortion may have negative effects on the market share
of the economy at large. So, this research work is expected to
broaden the intellectual horizon of marketing practitioners and other
professionals on the implication of motivational influences.
Especially for those in the area of purchasing, supply and sales
promotion. This research study also intends to know what influence
customers behaviour and how well one could improve on his
products. A researcher once said that the more you know about the
customer, the better you never know when a small fact might lead to
a better product.
This research work will be an invaluable source of literature for
researcher’s, students ,marketing practitioners and companies
intending to study the effects of Motivation on customer buying
behaviors of industrial products. Findings from it will help researchers
22
suggest alternative strategies that can aid mode of motivation in our
society.
1.7 Scope and limitation of the Study
This means the boundary of study it is the area in which the
researcher intends to operate, concentrate and extends its
operational tentacles. This means the area where the research
cannot exceed during the research study.
In this research work, the researcher could not exceed the
boundary of studying motivational influence on customer buying
behaviour of industrial products in the South – Easter States of
Nigeria, mostly Enugu, Anambra, Ebonyi, Imo, Abia and few areas in
other part of Eastern State as Indicated in the map enclose in the
project proposal.
The major limitations which the researcher encountered in the course
of carrying out this research work are numerous. The main limitation
of the study is the difficulty of getting and gathering information,,
understanding certain concept in the questionnaires by the
respondent.
Also the risk of traveling by road across the Eastern State is
another factor. Majority of the roads in the East are very bad and are
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responsible for a lot of accidents on the high ways. Armed robbery
attack during the day is on the increase in the Eastern States and
Posses a lot of danger and threat on the research. In addition,
financial constraint also limits the research and poses a threat to the
study.
Finally, the scope of the study is also another limitation since
the research work is limited to the Eastern States, the findings from
the study cannot be sweepingly generalized nationally except broader
studies are carried out. As a result, the researcher opines that
findings are peculiar to a particular region.
However, the lists of limiting factors, not withstanding, the study
will make a positive contribution to the literature.
1.8 Definition of Terms
Consumer/ customer: This can be defined as the person that buys
goods and services for either personal consumption (ultimate
customer) or for further production or manufacturing purposes (in
dustrial customer)
Research: According to Baridam (2001, P. 7) research is “The
activity of investigating the phenomena of human experience.
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Consumer Behaviour: Is defined as those activities directly involved
in obtaining, consuming and disposing of products and services,,
including the decision processes that precede and follow these action
(Engel et al: 1993, p 4)
Industrial Products: Industrial Products are those goods and
services used in further production or manufacturing purposes..
Economists say these goods have derived demand since they are
used to make something else. These include Raw materials,
fabricating materials and parts, installations, Accessory equipment
and operation supplies.
Buying behaviour: is defined as the decision process and acts of
people involved in buying and using products.
Trade name / mark: This is defined as individual names, firm names
devices or words used by manufacturers, industrialists, merchants
and others to identify their business, vocation or occupation (Kalu,
1998: 236).
Motivation – Nwachukwu (1988, P. 181) defines motivation as
that energizing force that induce or compels and maintains behaviour.
He maintained that human behaviour is motivated and it is goal
directed.
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1.9 Organization of the Study
The aim of the study is to examine those motivational factors
that influence the customer Buying Behaviour of industrial products in
the South Eastern States. The study is to identify those influences as
it affects the customer / consumer of industrial products, make useful
suggestions where necessary and proffer probable solutions. The
study is divided into five chapters. Chapter one examines the basic
centrality of customer buying behaviour of industrial products, looks
at the overview of the study, statement of the problem, objectives of
the study, research question and research hypothesis, significance of
the study, scope of the study, limitations of the study and definition of
terms.
The second chapter (chapter two) reviews the relevant
literature on theories, principles and practices of customer buying
behaviour of industrial products and their motivational influences. It is
a review of scholarly works and their major findings in relation to the
subject of study.
Chapter Three discuss the research methodology used, design,
sampling method, data collection and analysis with operational
definition of variables.
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The Fourth Chapter shows a detailed analysis of the primary
data with the aid of statistical techniques while chapter five
summarizes the research findings, conclusions and
recommendations.
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REFERENCES Norbert¸ M.L. (1999) Management and organizational Theory and
Practice. Vougasen Ltd, Enugu – Nigeria Nwachukwu, C.C (2006) Management theory and practice Africana
FEP – Publishers, Onitsha Nigeria. Achison, C.B (2000) Industrial marketing (analysis strategy and
practice) Enugu – Nigeria precision printers & publishers. Taylor, W.J, and Shaw, R.T. Jnr. (1969). Marketing: An integrated
Analytical Approach.Cincinnati, Ohio, South – Western Pub. Co
Kotler, P and keller, K.L. (2006) Marketing management 12e.
Prentice Hall Inc, New Delhi. Engel, J.F, Blackwell, R.D and Miniard, P.W. (1993) consumer
Behaviour. Dryden press, Harcourt braces Jovanonch, New York.
Baridam, D.M (2001) Research method in administrative science,,
Port Harcourt: shev Brooks Associates. Kalu, S.E (1998) Strategic marketing management: Planning
Execution and control. Choba, PH. Press Ltd.
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CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
Motivation can be defined as the driving force that stimulates an
individual to action. It is a process of stimulating people to action to
achieve desired goals and accomplish desired task (Norbert: 1999, P.
247).
This means that motivation focuses on why people do the
things they do and how those things are done and why at a particular
time, in a particular situation with a particular product or services. It
plays an important role in determining how customers reacts to
products both industrial and non industrial products (goods and
services). This chapter will discuss those factors that act on
customers behaviour for industrial products. Such factors may be
sociological, Psychological and then social values held by society.
Theories and model of customer behaviour had been built by
economists and psychologists such that each flourishes in its own
disciplinary sphere and sometimes without integration with other.
This review of literature is intended to draw materials relating to
consumers behaviour and marketing strategy, consumer behaviour
29
models and buying influences, theories of motivation, motivational
influences in consumers buying, types of buying behaviour, consumer
goods and industrial goods and finally consumer/ customer decision
processes.
2.1.1 Consumer Behaviour
According to Anyanwu (1993: 131), consumer behaviour are
those problem solving activities undertaken by a consumer with a
view to reducing purchase related risks while enhancing satisfaction
by buying the right goods and services.
It could also be described as how people decide to spend their
available resource that is their money, credit, time and effort. They
spend this resources to accumulate experiences in the form of
product, services and ideas with the hopes of satisfying their needs
and possibly making themselves happier in the process. The
consumer tries to attain maximum satisfaction from every action of
his income spent (Kalu: 1998, P. 207). The study of the consumer
focuses on what products or services one purchase, why he
purchase them, where he purchase them, how he uses them, how
frequently he purchase them and who influences his purchase
(Marcus et al: 1980,, P. 39). Every effort is targeted to identifying the
30
customer and his needs. But it takes a great deal of insight to know
what they desire (The customer).
Gupta (2006, P. 176) defined consumer behaviour “as a study
of a complex of those factors which resulted in particular buying
decisions of consumers based on rationality, emotions or compulsion.
According to him, A study of consumer behaviour is likely to reveal
whether target consumers of the enterprise emphasize more on the
price of the product or its quality. On this basis, suitable pricing
strategies and programmes aimed at upgrading the quality of
organizations products to suit the needs, habits and behaviour of
consumer will be put in place.
2.1.2 Marketing Strategy
Marketing strategy by Onah and Thomas (2004, P. 448) is
defined “as the means where by a company decides how to position
itself in such a way that allows it to gain an advantage over its
competitors effective strategy. This is a means of achieving
competitive advantage. It could also be defined as a set of objective
policies and rules that guide overtime and firms marketing effort- its
level, Mix and allocation partly independent. (Kotler: 1984).
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2.2 Consumer Buying Decision Process
Consumer decision making process varies form consumer to
consumer and from product to product. It may vary in length of time
required. According to Onah et al (2004, P. 80), consumer decision
making is a problem solving process which presumes that the
consumer goes through phases in undertaking a decision. These
stages are five in number. It includes.
Problem Recognition – consumer decision making process
start with the recognition of unsatisfied need. For example a thirsty
person recognizes the need for water or any cold drink, it is important
to note that a satisfied need does not motivate.
Search for alternatives -once the need has been recognized
the person starts searching for pertinent information that would
enable him satisfy his needs. Customers should be provided with
accurate and useful information on product available to facilitate
choosing from among alternatives. For example a thirsty person may
secure information on water, coca-cola, Pepsi fanta Orange or Malt
drink. He then identifies the brand alternatives that would solve his
problem (Onah et al: 2004 P. 81).
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Evaluation of alternatives- After identifying the alternatives,
the consumer now evaluates each brand of product before making a
purchase decision. with the example above, the thirsty individuals
stars comparing water, coke, malt and others on the basis of their
ability to satisfy his need. Certain factors like his part experience with
drinks, opinions of family members and friends affects this evaluation
of the brand.
Selection of optimal alternative(s)-At this stage, the
consumer decides on what brand or product to buy and where to buy
it, the quality, the quantity, the terms of purchase, the price, delivery
& terms. This means that the actual choice made is supposed to
follow from the alternative evaluation and intention. Satisfaction
occurs when the consumer finds the alternative chosen is consistent
with his / her beliefs or altitude (Onah and Thomas: 2004 p. 81)
Implementation of decision/ post purchase evaluation- The
chosen alternative is used in making the decision. The probability of
using the chosen alternative will increase if satisfaction occurs. If
dissatisfaction occurs another alternative has to be chosen (Onah
and Thomas: 2004 P. 82)
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Consumer buying decision process……a comparison
Onah&Thomas kotler Engel, kollat&Blackwell
I Problem recognition problem recognition problem recognition
ii. Search for alternative information search information search
iii, Evaluation of alternative Evaluation of alternative Alternative search
iv. Search for optimal alternative purchase decision choice
v. Implementation of the decision post purchase behaviour outcome
FIGURE2.2
(SOURCE. marketing management by Aham Anyanwu, 2003, p, 92)
2.2.1Types of Buying Behaviour
There are various types of buying behaviour. According to
Assel (1981), consumer buying behaviour is distinguished into four
categories. They are
(a) Complex Buying Behaviour
The consumer goes through complex buying process under this
category, especially when they are involved in a purchase and are
aware of significant risk and technical nature of the purchases. The
consumer does not know much about the product category and has
to learn. Learning is very essential to the consumption process, since
behaviour is generally acquired by learning. The buyer will pass
34
through cognitive learning process characterized by attitude toward
the product and finally making a purchase choice. Learning
influences consumers’ perception of product including brand loyalty
marketers try to avoid generalization by making unique product
brands, packages, co lour, performances and services. They also use
free samples to cause product acceptance, adoption and habit
formation. Marketers develop promotional messages and symbols to
learning.
(b) Dissonance Producing Buying Behaviour-
Consumer experiences tension because he has uncertainty
about the rights or wrong of a purchase. This psychological tension
which creates a disturbance and uncertainty in the minds of the
consumer was first studied by festinger (1957) who called it
“Cognitive dissonance” example of cognitive dissonance is:
1. MR Paul bought a new brand Mercedes C 280 (C class) and
spend some days worrying whether he should have bought a new
brand Camry Car called (Fish Camry) which he examined and
dropped during the Pre – Purchase Search. The consumer starts
learning more things and seek to justify his or her choice decision to
35
reduce the dissonance, thus, the consumer first passes his choice
favorably. The implication for the marketer, in this situation is to
engage in evaluation that will help the consumer feel good about his
or her choice after purchase.. There is need for motivational
influences in pricing, good location, effective sales personnel and
advertising.
C. Habitual Buying Behaviour
It is evidenced here that consumer have low involvement with
most low -cost frequently purchased products. Most purchases on
consumer goods are based on low involvement behaviour arising
from habitual buying. Television advertising for such products creates
room for learning experience because many messages penetrates
the persons normal perception defense and create cognitive shift
such as awareness but not attitude change. A change in attitude
occurs after use, when a consumer recognizes the product in the
purchase situation. Consumer behaviour in these cases does not
pass through the normal belief, attitude / behaviour sequence..
Consumers do not intensify their search for information about brands,
evaluate their characteristics and make decision on which to buy.
They are passive recipients of information as they watch television
36
advertisement. Advertisement repetition creates brand familiarity
rather than brand conviction. Consumers do not really form an
attitude toward a brand but select it simply because it is familiar.
d. Variety Seeking Buying Behaviour
Consumers are observed to do a lot of brand switching when
the buying situation is characterized by low consumer involvement.
For example in purchasing candies, the consumer has some belief
chose a brand of candies without much evaluation. In another
situation consumer may reach for another brand out of boredom or
wish to experiment. Brand switch occurs for the sake of variety rather
than dissatisfaction. The marketer has to encourage habit buying
behaviour by dominating the shelf space, avoiding over stocking
conditions and sponsoring frequently reminder advertising.
Competition, firms on the other hand will encourage variety seeking
by offering lower prices, deals, coupon, free samples and advertising
that states reasons for trying something new.
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2.2.2 Buying Influences
Certain variable have been identified to influence customer
Buying Behaviour of industrial product. Among these includes price of
the product, price of complementary and substitute products,
elasticity of demand. It is also identified that sociological, cultural and
psychological variable are the prime determinants of buyers
behaviour. Anyanwu (2003, P. 91) Contributed by saying that
consumers purchase are influenced by cultural, social, personal and
psychological factors. Supporting this view, Achison (2000, P. 74)
identified four major influences namely- individual, social
organizations and environmental. Each of these variables according
to him, in turn is influenced by both task and non task variables. Task
variables are those that are directly related to buying problems
(product, quality, price, delivery and total offering utilities), while Non
task variables are those that extend beyond the buying problems
(person factors, recognition, and others). The influencing factors have
long been expanded to include.
1. Personal: individual influences (desire to obtain lowest
possible price, personal values and need,)
2. Social: Interpersonal (meeting to set specification)
38
3. Environmental: anticipated change e.g. Price, demand
legal and political
4. Organizational: structure, objectives. In spite of the
above, purchase behaviour are also affected by other
factors. Assael (1984) identified two major influences
namely.
1. Industrial buyer influence such as consumer demographic
lifestyles, attitudes, needs and personality.
2. Environmental influences or factors external: This relates to
individuals like family, culture and reference group. By
implication one can include the state of the nation economy..
He concluded that a consumer could be influenced by three
major factors. Sociological, psychological and environmental
factors and they combine to determine the activities of
individuals and groups in obtaining and consuming goods
and services. The sequence of decision processes that
follow this act is also an essential component of buying
behaviour.
39
2.2.3 Trade name / mark and Buying Behaviour
Trade name is the name under which a company conducts its
business. According to Kalu (1998, P. 236) it is defined as the
individual name, firm names, devices or words used by
manufacturers, industrialist, merchants and others to identify their
business vocation or occupations.
Examples of trade name are leventis, general motors, Michelin
and others. These companies are made significant or in significant in
the mind or view of their customers based manly on their product and
services made available to the public. When customers/ target market
think of their products, they first think of their trade name. It is the
trade name that first show cases a product. To customers of
individual products, the name of a company goes a long way to
influence their buying behaviour. It is very significant to note that
trade name means “Product” to them.
2.3 Theories of Motivation
Motivation can be defined as the driving force that stimulates an
individual to action. It is a process of stimulating people to action to
achieve desired goals and accomplish desired tasks (Norbert: 1999,
P. 247)
40
According to Kalu (1998), motivation is defined as behaviour
that is instigated by needs within the individual and is directed
towards goals that can satisfy these needs. it is thus the mechanism
that controls behaviour. Motivation is the reason behind behaviour.
Motivation is also viewed as an inner force. It is commonly
referred to as an urge, wish, feeling, need and most appropriately a
motive. The word force implies a dynamic active nature as well as the
power and ability to stimulate and compel behaviour. When
customers are motivated, their physical and mental make up is
activated. Motivation can be innate, that is biologically based needs
such as hunger, sex and thirst or leaned, and that is motives. Motives
are psychologically based rather than physiologically based.
The problem of motivation has for a long time occupied the
minds of management theorists and writers. Researchers have
sought to explain how and why people are activated to behave as
they do and why they can be made to behave in a manner supportive
of organizational goals. Presently, several theories have been
propounded and some of them will be discussed briefly in
subsequent pages with details analysis of one of the best know
theories of human motivation propounded of Abraham H. Maslow,
41
which appeared in the article A theory of human motivation,,
psychological Review volume 50 ,1943.
2.3.1 Major Theories Motivations
There are numerous theories on motivation and many of them
offers potentially useful insights on the concept. Among these are
Abraham H. maslow theory of human motivation, Douglas
McGregor’s Theory X and Y, Frederica Hertzberg two factors theory
of motivation, Sigmund Freud, Vroom’s valence expectancy theory,
porter and lowler model of theory, Chris Argyris immaturity- maturity
continuum, McClelland needs theory of motivation .
Freud’s theory: Sigmund Freud assumed that the psychological
force shaping people’s behaviour is largely unconscious and that a
person cannot fully understand his or her own motivations. When a
person examines specific brands he or she will react not only to their
stated capabilities but also to other less conscious ones. Shape, size
weight, material, colour and brand name can all trigger certain
associations and emotions. He went further to suggest that a
technique called Laddering can be used to trace a person motivation
from the stated instrumental ones to the more terminal ones (Kotler
2006, P. 184)
42
McGregor’s theory X and Y:- In 1957, Douglas McGregor
published the human side of the enterprise in which he described
some basic assumptions regarding human behaviour. An understand
of these assumptions is important in motivating human being. As he
notes “behind every management action or decision are assumptions
about human nature and human behaviour” Those managers who
subscribe to theory Y behave according to the postulates in theory Y
They believe that human beings like to take responsibilities and that
commitment to an objective is a function of the reward associated
with it. These rewards are the needs that will motivate them to act.
The reward create the tension in the individual, subsides when
realized. How he reacts or acts to the other people is influenced by
our assumptions about these people. If we behave that an employee
has a special dislike for work and will avoid it if he can. If we believe
that he is at work because he needs money to satisfy his
physiological needs ,we will attempt to motivate his with money and
threaten him with loss of employment (Security need) if he does not
put in a measure of his effort. According to him, a person’s attitude
toward work is not inherent, it is a learned behaviour. Need appears
to be universal, even people whose basic needs are satisfied still
43
have the need for achievement status and acceptance. It is not
surprising that people whose parents have amassed wealth for them
and their entire lineage still struggle to achieve and gain individual
recognition status and power (Norbert: 1999, P. 254)
Herzbergs Two Factor theory of Motivation: Herzbergs
Frederick developed two factor theories which have received enough
publicity in the area of motivation. These two factor theories have
often been called “motivation maintenance theory” or Motivation
Hygiene theory or dual theory of motivation. According to the two
factor theory, the primary determinants of job satisfaction are intrinsic
aspects of the job called motivators whereas the primary
determinants of job dissatisfaction are extrinsic factors called
hygiene. The motivators are achievement, recognition, the work itself
responsibility and advancement while the hygiene factors are
company policy and administration, supervision, pay (Salary) inter
personal relations with co-workers and working conditions. He
concluded by saying that the cause of job satisfaction are different
from the causes of job dissatisfaction. Job satisfaction results from
the use of abilities in the work itself (intrinsic reward), where as job
dissatisfaction result from failure to get fair treatment from the work
44
environment. He therefore holds that the existence of hygiene factors
in a job situation results in a situation of no job dissatisfaction.
(Norbert: 1999, P. 255)
According to Kotler (2006, P. 185), the tow factor theory are
classified as dissatisfiers and satisfiers. Dissatisfiers are factors that
cause dissatisfaction while satisfiers are those factors that cause
satisfaction. According to him the absence of dissatisfiers is not
enough; satisfiers must be present to motivate a purchase.
Vroom’s valence expectancy theory: Vroom says that a
person’s motivation towards an action is determined by his
anticipated values of all positive and negative outcome of the action
multiplied by the strength of the person expectancy that the outcome
would yield the desired goal. He contends that motivation is produced
by the anticipated worth of an action to a person and the person’s
perception of the probability that his goal would be achieved.
(Norbert: 1999, P. 260).
2.3.2 Maslow Hierarchy of Needs
Abraham H. Maslow was an American psychologist who
propounded a need hierarchy of five level which appeared in the
Article A theory of Human Motivation, Psychological Review, volume
45
50 1943. This theory is one of the most popular theories of motivation
today and has been for a long time. Maslow sought to explain why
people are driven by particular needs at a particular time. He
answered this by stating that human needs are arranged in a
hierarchy, from the most pressing to the least pressing In order of
importance. They are physiological needs, safety needs; social needs
esteem needs and self actualization needs. People will try to satisfy
their most important needs first. when a person succeeds in satisfying
an important need, he or she will then try to satisfy the next most
important need for example, a starving man (need 1) will not take an
interest in the latest happenings in the art world (Need 5) nor in how
he is viewed by others (need 3 and 4) nor even in whether he is
breathing clean air (need 2) but when he has enough food and water
the next most important need will become salient.
Maslow’s theory helps marketers understand how various
products fit into the plans, goals and lives of customers.
46
Upper order
5
Self
Actualization needs
(Self development
& realization)
4 Esteem needs
(Self esteem, status& recognition)
3 Social needs
(Sense of belonging & love)
2 Safety needs
(Security & protection)
1 Physiological needs
(Food, water, shelter)
Lower order
Figure 2.3.2
Maslows Hierarchy of Needs
(Source: motivation and personality 2nd edition by A.H. Maslow,
as quoted in marketing management by Kotler 12th
edition.p.185.)
Maslow identified human needs in the form of hierarch
commencing in an ascending order from the lowest to the highest
needs. The needs have a sequence of domination and when one is
reasonably satisfied that particular one ceases to be a motivation
47
second level need not dominate until the first is reasonable satisfied
and so on. Maslow saw the physiological needs as the strongest of
the driving force in human behaviour. This is followed by security,
social, esteems and self actualization. These groups of needs are
described next in ascending order.
1. Physiological Needs: These are the basic needs for sustaining
life itself. They are refer to as bodily needs. These include
needs for food, shelter, water. Sex, clothing, and sleep.
2. Safety Needs: These are the needs to be free from physical
danger and fear of loss of property, clothing and shelter.
3. Social Needs: Social needs are essentially love and belonging
needs. Unlike the two previous levels of needs, they centre on
a persons interaction with other people. Many people have a
strong urge to be part of a group and to be accepted by that
group, peer acceptance is important.
4. Esteem Needs: once an individual begins to satisfy the need to
belong, he / she will now want to be held in esteem both by
himself/ herself and others around him.
5. Self actualization: This is the highest level of needs and
includes the needs for self fulfillment and personal
48
developments .it is the desire for one to realize his potentialities
to the full.
The implication of Maslow theory is that ample opportunities for
the fulfillment of these needs should be built into the work
environment for positive motivational behaviour. Though the theory is
not free from criticism, but the major point of criticism lies in the static
nature of human needs in a hierarchy order. The critics are of the
opinion that human needs should be viewed in a dynamic context
because it changes constantly due to various situations in which
people become involved, (Kotler: 2006, P. 189; Onah and Thomas;
2004, P. 77 and Norbert; 1999, P. 250)
2.3.2.1 Mcqunes Psychological Motives
Mcqune developed a motive classification which is more
specific than Maslows. He provides a more detailed set of motives
that more or less coincides with Maslow’s belongings and esteem
motive levels. Mcqunes theory can be broken down into two
categories internal (non social) motive and external (social) motives.
49
Psychological Motive Relevant to the practice of Marketing
Internal, (non-social) motives or needs
Consistency: The need for social equilibrium
Causation: The need to determine who or what causes an event to
happen.
Categorization: The need to establish categories or mental
partitions, which provides frame of references
Independence: The feeling need of self –governance or self control
Novelty : The need for variety and difference.
External (social) Motives or needs
Self expression: The need to express self identity to others..
Ego: The need to protect our ego or integrity..
Assertion: The need to increase self esteem.
Reinforcement: The need to act in such a way that others will
reward you.
Affiliation: The need to develop mutual satisfying relationship with
others.
Modeling: The need to base behaviour on those of others.
The internal non-social motives reflects needs that individual
have with respect to themselves strictly as individuals , apart from
50
others .examples of these types of motives are the need for
consistency , causation, categorization , cues , independence and
curiosity or novelty .
The external social motives on the other hand deals with human
needs, directly related to the interaction with significant factors in the
world.
These motives encompass the need for the self –expression, ego.
Defense, assertion, reinforcement, affiliation and modeling..
2.4 Motivational influences in the customer buying behaviour
Buyers of industrial goods and services are said to be more rational
than those of the consumer goods .Customer choice tends to result
from emotional prompting ,however , most purchasing decision
have some elements of emotion and rationality , Since the two
markets are operated by emotional and rational humans. Purchase
decision could result from several motives:
Economic:- Rational economic motives are much more
significant than purely emotional considerations in the purchase of
industrial product. It has been observed that industrial buyer is
usually concerned with the procurement of goods and service that are
expected to provide significant levels of benefits (efficiency- profit)
51
efficiency, durability and others. The value of an industrial good to the
customer is dependent upon its ability to assume efficiency and
profitability in his operation. Thus the consideration of “Price” in the
purchase process of industrial goods.
Product Characteristics: The industrial customers tend to be
furnished with features that make possible economies accruing out of
the use of a product. As such most industrial products are purchased
on a performance and benefit basis. This probably accounts for the
desire of quality goods and services. The highly priced quality
material and equipment may be in the long run, the least costly in use
performance and maintenance. In this regard the ability of the buyer
to discern the economic benefits of his procurement is essential in
industrial purchasing. A supplier may entice the buyer with low price
but an astute buyer should be assured of the product reliability not
only in meeting up with the expected services but in the competence
of the supplier in the knowledge his product ,dependability, long -
term supply and good relationship.
Certainty of supply, dependability, meet up with schedules,
technical assistance, good cooperate image or trade name, good
pricing, availability of spare part and steady supply are among the
52
major motivating factors in the purchase decision of industrial
customers. Rational economic motives are generally much more
significant then emotional considerations in purchase decision for
industrial product.
Technological Motivation: it has been observed that the
industrial customer usually chooses to buy product because it will
yield result or profit at greater rate than it cost.
Industrial purchases and sale tend to relate closely to their
effects on productivity. A new machine of improved technology is
expected to be more efficient or productive than the obsolete one in
use. Hence, it becomes more profitable and beneficial for the
manufacture to discard the obsolete machine and propose for the
purchases of a new one for improved efficiency and high productivity.
From all the above mentioned factors, profit is always the sole
purpose of any business organization. Price and trade name or mark
or the good co-operate image of any organization to a large extent,
contributes to the financial and operational performance of that
organization. In this work, price and trade mark or name should now
be chosen in the test of our hypothesis to determine how it usually
53
influence or motivate the buying behaviour of industrial products in
some selected states in the South East.
2.4.1 The Role of Incentive in Behaviour Motivation
Incentives and its role in behaviour modification has been
studied by Scott (1976) and he found out that low involvement
products, repeat purchase behaviour was weak in cases where only
one time ,incentives are being provided. He asserts that for low
involvement products, behaviour might be shaped slowly over time to
avoid its extinction after the removal of the incentive.
Roth Sched and Galids (1981) supported this view when they
stated that “if initial purchase were accompanied by small premium,
the product and not the premium would be the primary reward for the
purchase behaviour”. Pretice divided the common promotional tools
into those that contribute to the consumer franchise building effort
(CFB) and those that do not and found that.
1. Most promotional deals are two short to elicit behaviour change
2. That for a promotion to work the product must provide value for
its own
54
2.5 Consumer Goods versus Industrial Goods
(Consumer Goods) Classification
Three categories of goods can be distinguished on the basis of
the rate of consumption and tangibility. Goods can also be classified
into 3 groups on the basis of consumer shopping habits.
1. Classification based on the rate of consumption and
tangibility
(a) Non Durable goods
(b) Durable goods
(c) Services
A. Non Durable goods: This indicates tangible goods which are
normally consumed in one or a few uses e.g. meat & soap. Since
these goods are consumed fast and purchased frequently, they are
likely to be made available in many locations, command a small
margin and develop strong brand loyalty.
B. Durable goods: Tangible goods which normally survive many
uses e.g. (refrigerators, clothing) durable product are likely to need
more personal selling and service and they command a higher
margin and require more seller guarantees.
55
C. Service: Service are activities, benefits or satisfaction which are
offered for sale or are provided in connection with a sale of goods
(Achison; 2000. P. 41) e.g. haircuts, dressing, repairs and other
professional service of doctors teachers and lawyers)
2. Classification of Consumer based upon customer
Behaviour
a. convenience Goods: There are consumer goods which the
customer usually purchases frequently with minimum efforts. It is
those goods that need minimum shopping efforts e.g. cigarettes,
soap and drugs
b. Shopping Goods: These are those consumer goods which the
customer in the process of selection and purchases, characteristically
compares on such basis as suitability, quality, price and style. The
consumer is likely to shop in a number of retail outlets to learn about
the available goods and find the right item. In other words, prices and
quality are compared from one store to other. Homogenous and
heterogeneous (Onah Thomas; 2004, P. 91)
c. Specialty Goods: Those consumer goods with unique
characteristics and brand identification for which a significant group of
buyers are habitually willing to make a special purchasing effort e.g.
56
specific brand, photographic & equipment, Special search is needed..
The customer undergoes some sacrifices in order to buy the
particular brand he wants
d. Unsought Goods: An unsought good or product is purchased as
a result of the sudden occurrence of a problem or in response to
aggressive selling tactics that result in a sale that otherwise would not
take place. Customers do not want these goods yet e.g. grave stones
and coffin.
Goods can be classified in terms of how they enter the
production process and their relative cost lines (Kotler, quoted in
Achison; 2000; P. 39)
a. Goods entering the product completely: materials and parts,,
manufactured materials and parts component like (tyres and casting)
Raw material like wheat, cocoa, crude petroleum and iron ore.
b. Goods entering the product partly : capital items which include
installation like building, land, generators, machines, plants and
Accessory equipment which includes light factory equipment and
tools, office equipment like type writer and photocopying equipment.
c. Goods not entering the product: These include supplies and
services. Supplies are operating supplies like, lubricants, typing paper
57
maintance and repair items like paint, nails, brooms and Business
services like consultancy, legal and advertising services.
According to the classification by the industrial marketing
research association, Goods can be classified into three main
groupings or categories.
a. Capital goods: - goods used to further production of other
goods.eg machines, accessories and component.
b. Primary Products: Raw materials, chemical, agricultural
products, minerals and crude sold to manufacturers
c. Intermediate products: such as those products that have
undergone some major changes of form, such as tyres, tubes,
castings and building materials (IMRA regulations; 1969)
Industrial Goods Classification
These are goods that are intended for use in further production
of goods and services. They are categorized as follows.
a. Raw Material: This refers to those industrial goods which will
become part of another physical product e.g. farm product like
livestock, maize, rice, wheat, tobacco, fruits, vegetables and natural
products like.
58
b. Accessory Equipment: These refer to major equipments that aid
production. This does not become part of the finished product e.g.
tools and office equipment like type writer, portable drills.
c. Installations: This refers to major equipments of an industrial
user. They are large and expensive items that are not a part of the
final products. All installations are capital items, it includes, factory
building, large generators, tractors and major equipment.
d. Fabricating Materials / Component Parts: These become actual
part of finished products. Example includes already processed to
some extent rubber, pig-iron and fabricating parts that will not
undergo further processing or change in form (e.g. plugs and fan
belts).
e. Operating Supplies: These help the firms operations but do not
become part of the finished goods (e.g. stationary, lubricating oil,
heating fuel, oils, ink, grease and bolts).
2.6 Factors Affecting the Purchase of Industrial Goods
Several factors affect the purchase of industrial products.
Among the most important are
59
1. Environmental Factors: Generally, these are factors outside the
organization such as found in the macro-environment, the public
environment and the marketing channel environment. Buying
decisions are influenced by the level of primarily demand, economic
outlook, price, legal, the rate of technological change, regulatory and
competitive development, political factors and anticipated changes.
2. Social- interpersonal (meetings to set specification, off- the -job
informal evaluation.
3. Organization – structure, objectives, policy regarding
purchases, choice and method of evaluation.
4. Personal: This has to do with the individual influences (desire to
obtain lowest price, personal values and needs)
2.6.1 Types of Purchase Buying Situation
The types of purchase made affects the purchase of industrial
products. An industrial customer may be faced with three types of
situations or types of purchases namely.
a. Straight Rebuy: The industrial customer under this situation is
operating within a familiar brand among familiar product class i.e. the
items of purchases are know in terms of quality, source of supply,
delivery items and price. The only task of the industrial customer or
60
buyer is to place an order with the supplier stating the quantity
required.
b. Modified rebuy: The industrial buyer has to do some
modifications in terms of product specifications, price, source of
supply and delivery terms.
c. New task situation: Here, the customer is faced with altogether
new items for consideration. In which case, the number of people
likely to participate in decision making for the purchases would be
larger under this situation, there is the need to go through the
purchase decision stages which would run through the problem
recognition stage, to the purchase action. Decisions have to be taken
on such vital areas as product specification, delivery term, service
terms, payment terms and price limits.
Generally, the straight rebuy is a less complex purchasing
procedure than a modified rebuy and a modified rebuy is less
complex than an entirely new task.
Moreover, Lehman and O’Shaughnessy (1974) proposes a
more unique classification of buying situations as it relates to the
products.. Based on their classification, the following categories
emerged.
61
a. Routine order product
b. Procedural problem product
c. Performances problem product
d. Political problem product
(a) Routine order products: These products present no new real
special problem; it requires no new information except price
and availability, little decisions. This means that it presents
no significant use age problem, because everyone is familiar
with the product.
(b) Procedural problem product: This means that the product will
perform satisfactory with little learning on the operation of it.
(c) Performance problem product: This raises the technical
anxiety of whether the product will perform as expected or
not. The buyers/ customer’s needs to be reassured that the
product will perform properly, if the product fails to perform it
will raise a serious problem between the customer and
seller.
(d) Political Problem Product: These are those products that put
the requirement of different users or departments in conflict.
This is with regard to conflicting aspirations of the
departments relating to demand for expenditure on capital
products and the restrictions on budget and available funds
or resources.
62
REFERENCES
Achison, C.B. (2000) Industrial marketing: Analysis strategy and practice precision printers and publishers Enugu.
Anyanwu, A. (1993) Dimension of marketing: Okigwe: Avan Global
Publication. Assael, H. (1984) Consumer Behaviour and Marketing Action. Boston
mass pent Publishing Company. Festinger, L. (1957) A theory of Cognitive Dissonance. California:
Standard University Press. Gupta, R.N. (2006) Business organization and management. Rain
Nagar, New Delhi Industrial marketing Research Association (IMRA) regulation
Litchfield, 1969. Kalu, S.E. (1998) Strategic Marketing Management: Planning
execution and control. East -west Road, choba .university of port Harcourt Press Ltd.
Kotler, P. (1984) Marketing Management Analysis, Planning and
Control. New Jersey, 5th Edition. Kotler, P. and Keller, K (2006) 12th Ed Marketing Management.
Prentice hall, inc, New Delhi India. Norbert, M.L (1999) Management and organizational theory and
practice, vaugasen Ltd. Enugu Nigeria. Onah, J.O. and Thomas, M.J. (2004) 2nd ED Marketing Management:
Strategies and cases. Institute of development studies, university of Nigeria Enugu campus
Rothschuld and Gaids (1981) management Theory and Practice.
Tokyo; McGraw – Hill Koya kusha, Ltd.
63
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is an explicit explanation of the way and
when the research is going to be carried out,(Okeafor: 1996, P. 37), it
provides a detailed account of the methods to be used in collecting
the data, why these methods were used or chosen, what data to be
collected, how they would be gotten and analyzed (Baridam 2001, P.
198).
Consequently, this chapter is designed to highlight the various
methods used in obtaining and analyzing the collected data for the
study. It specifically deals with the.
Research design
Sampling procedure
Data collection method
Data analysis technique
Validity and reliability test of instrument and summary with
references
64
3.2 Research Design
Research Design means the structuring of investigation aimed
at identifying variables and their relationship to one another. This is
used for the purpose of obtaining data to enable the researcher test
hypothesis or answer research questions. It is an outline or a scheme
that serves as a useful guide to the researcher in his effort to
generate data for his study. (ASika; 2006, P. 27) it is a model proof
that allows the researcher to draw inferences concerning casual
relations among the variables under investigation.
The study which is on motivational influences on customer
buying behaviour of industrial products is carried out in the South
Eastern States mostly Imo, Abia, Enugu, Ebonyi, Anambra and partly
in other South Eastern States. Questionnaire was admninistered,
with oral interview in obtaining the primary data from respondent
while the secondary data was sourced from textbooks journals and
related materials on the topic. The research design is a quasi
experimental design commonly called a survey. Particularly, cross
sectional field study which relies on the generation of a sample
element so that the members are representative of the population’s
interest under study.
65
3.3 Sampling Procedure
To sample is to collect a portion of the entire population
narrowing it down to a target population. This is to ensure equal
participation of all industrial product user and the firms involved. The
Eastern States that constitute the data base for this research study
are.
Abia, Anambra, Ebonyi, Enugu, Imo, The sample was also
drawn from this accessible population. A total number of 300
questionnaires were given to various respondent (industrial product
users and firms) containing eighteen (18) questions and ten (10) oral
interview questions or guide was used. Sample formular used is the
Taro Yamem, which is a probability sampling.
3.4 Data Collection Method
The data for this study were obtained partly from the primary
source and partly from the secondary source. The primary source
was the questionnaire issued to the respondents and information
gotten from the oral interview administered. The secondary data were
mostly from text books, journals and related materials on the topic.
66
3.5 Data Analysis Techniques
In analyzing the data collected, the descriptive technique using
simple tables showing frequencies and percentages was employed.
Statistically inferential technique used is the Spearman Rank order
correlation coefficient (Rho), non parametric test. This method
measures the degree of relationship between two set of ranked
observations ,in other words, it indicates the degree of effectiveness
in predicting one ranked variable based on another ranked variable
Rho assumes any value – 1 or + 1 indicating perfect relationship. The
rank correlation coefficient has the formula:
rs = 1 - 6 ∑d2
N (N2 – 1)
Where ∑d2 = sum of the squared difference in the ranking of the
subject on the two variables
N = Number of subject being ranked
a = 0.05
rs is a summary measure and not a significance. The coefficient
varies between – 1 and 1 and its value as a measure of the degree of
association between dependent and independent variables.
67
In this study 0.05 would be the critical Z value which is ± 1. 96
is used to accept or reject the tested hypothesis.
3.6 validity and Reliability test of Instruments:
Validity is defined as an extent to which a test measures what is
supposed to be measured. Another term for it is “relevance” (Baridan
2001) the objective is to obtain the true value of the variable being
used. Validity, based on content, could be face validity, deals with
researcher’s subjective evaluation while sampling validity deals with
whether a given population of situations is adequately sampled by the
measuring instrument in question. It is based on expert judgment.
In this study questionnaire is given to validate its content and
expert judgment on the subject matter in the field (marketing) was
sought and agreement among the specialists were reached.
Reliability: Data are said to be reliable if they are consistently
accurate, and precise. To ensure reliability in this study, a section of
questions was on industrial products to state how their behaviour is
affected by price. The variable being studied has undergone no real
change and measurement of the object is made over a period of time.
68
Operational measure
The operational measure used in this research study is survey
method. Questionnaire was sampled and distributed to the target
population with oral interviews. Most of the questions ranged from
very high extent, high extent, medium extent, and how extent.
Very high extent is ranked “4”
High extent is ranked “3”
Medium extent is ranked “2”
Low extent is ranked “1”
It is analyzed according to respondents response the
independent variables are represented by “Y” (Price and trade name)
and dependent are represented by “X” buying behaviour.
3.7 Summary
The research methodology was done to show the area that was
studied and the type of research technique used.
69
REFERENCES Okeafor, U.S. (1996) marketing research and project writing guide.
World communication Ltd, Ikeja Lagos. Alugbuo, C.C (2002) A practical guide to project writing. Creds
Publications, Owerri Imo State. Baridam, D.M. (2001) Research methods in Administrative science
2nd edition, rule 1 diobu Port Harcourt. Asika N. (2006) Research Methodology in the Behaviour Sciences
Longman Nigeria Plc, Ikeja Lagos.
70
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND INTERPRETATION
4.1 Introduction
This chapter aim at analyzing the data collected for this
research study. Data analytical technique is simple statistical analysis
which consists of tables and percentages. It is used for demographic
and other research data. Data collected for the hypothesis will also
be tested with the use of spearman rank order correlation coefficient,
Rho (rs = 1 – 6 ∑d2 / N (N2 – 1). The choice of this method is to
enable the researcher determine the significance of the relationship
between the dependent and independent variables identified in the
research study.
4.2 Data analysis
Response Rate
The questionnaire was given to respondents who are mainly
industrial users and firms or companies.
71
Table 4.2.1.Sampled States and Questionnaire Distributed
Sample states in Eastern Nigeria
Total questionnaire sampled
No of returned questionnaire
% returned rate
Anambra 60 50 20%
Enugu 60 51 20.4%
Ebonyi 60 48 19.2%
Abia 60 55 22%
Imo 60 46 18.4%
Total 300 250 100%
Sources: Computed from the questionnaires.
Three hundred (300) questionnaires were administered, out of
which two hundred and fifty (250) were returned from the
respondents. The entire returned questionnaire was processed
because they were properly filled by the respondents. The
questionnaires were distributed equally for easy and more accurate
assessment of the sample size.
A total of 18 questions were contained in the questionnaires. All
these questions were well structured so as to interest the
respondents. Data collected from the respondents would guide the
researcher in providing a detailed analysis of the study in addition to
the oral interview conducted.
72
Table 4.2.2. Demographic Data of Respondents
Sex Sub – total % Rate
Male 190 76%
Female 60 24%
Total 250 100%
Age Group
20 – 30 50 20%
31 – 40 61 24.4%
41 – 50 80 32%
51 and above 59 23.6%
Total 250 100%
Educational Qualification
GCE/SSCE/Equivalents 50 20%
ND/NCE/HND 130 52%
B.Sc / above 70 28%
Total 250 100%
Sources: Computed from the questionnaire
73
The information above shows that out of the 250 respondents
one hundred and ninety (190) were male and sixty (60) were females
representing a total of 76% and 24% respectively of the total number.
Secondly, people with Bachelors of Science degree and above were
seventy (70) representing 28% of the total, while (130) represented
people with HND, ND and NCE with a percentage (%) of 52% and
finally respondents with GCE/SSCE/Equivalents are (50)
representing (20) % of the total respondents.
Q.4.How long have you been with this company?
Table 4.2.3 No of years with the company
Category No of respondents % of responses
1 – 10 years 70 28%
11 – 20years 63 25.2%
21 – 30 years 70 28%
30 – above 47 18.8 %
Total 250 100%
Sources: Computed from the questionnaire
From the above table, 28% of the respondents are within the
ranges of 1 – 10yrs with the organization with the total number of 70
,25.2% (11- 20Yrs) with the total no of 63 respondents, 28% (21 –
74
30yrs) with he total no of 70 respondents and 18.8%$ (30 – above )
with the total no of 47 respondents.
Q.5. Does your company purchase industrial product?
Table 4.2.4 company relationship with industrial product
No of respondents Response 5 of response
250 Yes 100%
No ----
250 100%
Sources: computed from the questionnaires
In the statistical table above,100% of the respondents indicated
a positive response that they do purchase industrial products.
Q.6. How often does your company purchase industrial product?
Table 4.2.5 Purchase Period of Industrial Product
Period No of responses % of responses
Monthly 60 24
Quarterly 110 44
Yearly 80 32
Total 250 100
Sources: Computed from the questionnaire:
75
In the above statistical table, 44% of the respondents indicated
that their company purchase industrial products quarterly while 32%
do purchases yearly and 24% monthly.
Q.7. What type of industrial products do you buy?
Table 4.2.6 Categories of Products Purchased
Category No of respondents % of responses
Raw materials 20 8%
Installations 10 4%
Operating supplies 5 2%
Fixed equipment 5 2%
Accessory/component
parts
10 4%
All of the above 200 80%
Total 250 100%
Sources: Computed from the questionnaire
In the statistical table above 80% of the respondents indicated
that they buy all industrial products listed 8% for raw material 4% for
76
installations operating supplies has only 2% while accessory
equipment have 4% and fixed equipment 2%,
Q.8.What motivates you mostly in buying industrial product?
Table 4.2.7 Motivational Influences and industrial buyer
Factors No of respondents % of response
Price 52 20.8%
Product quality 50 20%
Availability of spare parts 40 16%
A and B 60 24%
Trade name 48 19.2%
Total 250 100
Sources: Computed from the questionnaire
In the table above, 24% of the respondents indicated that they
are motivated by price and product quality, 20.8% stood for price
alone while 20% opted for product quality. 19.2% for trade name
while 16% stood for spare parts availability.
77
Q.9, To what extent do you consider price in the purchase of
industrial products.
Table 4.2.8 Price Customer Buying Relationship
Opinion Rating No of respondents % of response
Very high extent 130 52%
High extent 70 28%
Middle extent 50 20%
Total 250 100%
Sources: Computed from the questionnaires
From the above statistical table. 52% of the respondents
consider price very important, 25% stood for moderate extent, 20%
opted for considerable extent ,not at all (Nil)
Q.10.Would you buy the product if the price is reduced and cheap
material are used by the producer?.
Table 4.2.9 Relationship between price and quality
Response No of respondents % of response
Yes 150 60%
No 100 40%
Total 250 100
Sources: Computed from the questionnaires
78
From the above table, 60% indicated positively for price and
quality while 40% opted for price alone.
Q.11.What type of purchase do you make?
Table 4.2.10 The customer and purchasing pattern
Pattern No of respondents % of response
Straight rebuy 100 40%
Modified rebuy 78 31.2%
New task 72 28.8%
Total 250 100
Sources: Computed from the questionnaire
From the statistical table above, 40% of industrial customer
make a straight rebuy purchase, 31.2% uses modified rebuy
purchases while 28.8% opted for new task purchases.
79
Q.13, Do you consider trade name important in the purchase of
industrial products?.
Table 4.2.11 The Relationship Between trade name and customer
Response No of respondent % of responses
Yes 145 58%
No 105 42%
Total 250 100
Sources: Compute from the questionnaire
From the table above 58% of the respondents consider trade
name important in the purchase of industrial products while 42% do
not.
Q, 14, Does the name of a company influence your buying behaviour
of industrial product?
Table 4.2.12 Trade name versus Buying Behaviour
Response No of respondents % of response
Yes 155 62
No 95 38
Total 250 100
Sources: Computed from the questionnaire
80
From the table above, 62% of the respondents believes that
they are influenced by a company name while 38% are not
influenced.
4.3Test of Hypothesis
The data collected were analyzed. The stated hypotheses are
tested as follows under the headings.
i. State the hypothesis
ii. State the statistical tools used
iii. Test the hypothesis
iv. State the decision rule
v. Take the decision
4.3.1 Test of Null Hypothesis (HQ1)
i. Statement of Hypothesis
HQ1 There is no significant relationship between price and industrial
buying behaviour.
ii. The Statistical tools used
Data for testing this hypothesis is obtained from questions 13
and 17 from the questionnaire (Appendix A). The spearman’s Rank
order correlation coefficient is used as the statistical tools. The
formula is given as: Rho (rs) is used.
81
rs = 1 - 6 ∑d2
N (N2 – 1)
Where rs = Rank correlation coefficient
∑d2 = Sum of the squared difference in the ranking of industrial
buying behaviour (Rx) and Price (RY) – (the square difference in the
ranking of the subjects on the two variables)
iii. Testing the hypothesis
Rho (rs) = 1 - 6 ∑d2
N (N2 – 1)
Where d2 = 234
N = 250
N2 = 62500
From the appendix D, enclosed
X - Y represents d,
(X - Y)2 represents d2
Substituting for the values
1 - 6 x 234
250 (62500 -1)
1 = 1404
15624750 = 0.999
82
Therefore the value obtained (rs) = 0.999 shows a positive
correlation. Thus, there is a 0.999 rank order correlation between
price and industrial buying behaviour.
To test if the relationship is indeed significant, the Z test is
applied
Z value is Z = rs N – 1
Where rs = 0.999
N = 250
Z = 0.999 250 - 1
= 0.999 x 15.78 = 15.76
iv. The decision rule
the table value for Z at 0.5 level of significance is ± 1.96 and
now the computed Z value is 15.76 greater than the critical Z value ±
1.96, it falls under the rejection zone. So the null hypothesis is
rejected as a result, the alternate hypothesis.
H1i There is a positive and significant relationship between price and
industrial buying behaviour, therefore is accepted.
4.3.2 Test of Null Hypothesis (HQ2)
83
i. Statement of hypothesis (HQ2)
HQ2: There is no significant relationship between trade name and
industrial buying behaviour.
ii. The statistical tools used:
Data for testing this hypothesis is obtained from responses to
question no 16 and 18 from the questionnaire marked. Appendix E
iii. Testing the hypothesis:
spear man rank order correlation coefficient is used as the statistical
tools. The formula is given as Rho (rs) = 1 - 6 ∑d2
N (N2 – 1).
Where ∑d2 160
N = 250
N2 = 62500
Substituting the values 1 - 6 x 160 = 1 - 960
250 (62500-1) 15624750
= 0,999.
The value of Rho (rs) = 0.999 shows a positive relationship.
There is therefore a 0.999 rank order correlation between trade name
and industrial buying behaviour.
To test if the relationship is indeed significant the Z test is
applied
Z rs n – 1
84
Where, rs = 0.999,
n = 160
0.999 160 – 1 = 0.999 x 12.61
= 12.59938
Z = 12.60
iv. The decision rule
The table value for Z at 0.5 level of significance is ± 1.96, since
the computed Z is 12.60, greater than the critical Z value, ± 1.96, it
falls under the rejection zone. So, the null hypothesis is rejected. As a
result the alternate hypothesis
H12: There is a positive and significant relationship between trade
name and industrial buying behaviour therefore is accepted.
85
REFRENCES
Alugbo; c.c (2005).A practical guide to project writing. Credo publication, Owerri – Imo State Nigeria.
Asika;N .(2006).Research Methodology in the behavioural
Sciences. Longman Nigeria Plc. Ikeja – Lagos
86
CHAPTER FIVE
DISCUSSION, RECOMMENDATION AND CONCLUSION
5.1 Introduction
This chapter centers on research findings and the conclusions
that were drawn base on the findings. It also made recommendation
on the topic of discourse. An analysis of motivational influences on
customer buying behaviour of industrial products in the Eastern
States.
5.2 Discussion of Research Findings
The study examined the motivational influences of customer
buying behaviour of industrial products in the South Eastern States.
The following findings were made after analyzing and testing the
research questions and hypothesis.
That price plays a significant role in the buying decisions of
industrial customers or product users. Furthermore it also revealed
that a significant number of people put trade name into consideration
as a motivating factor in their purchase of industrial products.
In addition, the study revealed that many of the industrial
product buyers always made use of straight rebuy method and that
there are many classification of industrial product and the industrial
87
products includes Raw materials, installations, accessory equipment
component parts, fixed equipments and operating supplies-
stationary, lubricating oils, fuels and buyers of these products make
their purchases occasionally.
5.3 Conclusion
Having critically examined the research questions and tested
the two hypotheses, the following conclusion was made based on the
information gathered.
1. Price and trade name are significant variables in
consideration by industrial buyers as motivating influences
and should not be ignored by manufacturers
2. Companies with good product image and wide known trade
name stand to gain more market share as they (customers)
adopt straight rebuy method.
3. Though Price is considered very important in the buying
behaviour of industrial user /customers, product quality,,
availability of its spare parts at a reduced price is most opted
for. industries with such product features or variables gain
greater market share.
88
4. An industrial customer is influences by many variables, like
price, trade name, product quality, availability of spare parts
and goods as at when needed or required.
5.4 Recommendation
The following recommendations are based on the findings of
the research study.
1. Manufacturers of industrial products should improve on the
quality of their product with a considerable reduction in
prices as their customers are highly influenced by price.
2. Trade name is one of the motivational influences in industrial
purchase and should not be ignored. To consumers of
industrial product trade name means a “wholesome product”
“A bad product is first known by the name of the company as
well as good product.
3. Industrial product being offered should carry a stock of it
major spare parts to cover increasing demand for spare
parts availability and effective and efficient operational
maintenance.
Finally, the researcher concluded that price and trade name are
the major motivational influences in the purchase of industrial
89
products but other motivational factors still exist like, quality of
products, availability of goods and spare parts as at when needed.
Suggestion for Further Research
It is suggested that motivation influences of consumer buying
behaviour of industrial products should be studied in other part of the
country since the researcher has already focused on the eastern
states
Secondly, a wider research on the effect of trade name and
price and the marketing of industrial product be carried out.
90
BIBLIOGRAPHY
Achison, C.B (2000) Industrial marketing (analysis strategy and Practice) Enugu – Nigeria. precision printers & publishers.
Alugbo; c.c (2002).A practical guide to project writing. Credo
Publication, Owerri –Imo state, Nigeria. Anyanwu, A. (1993) Dimension of marketing: Okigwe: Avan Global
Publication. Asika;N .(2006).Research Methodology in the behavioural sciences.
Longman Nigeria Plc. Ikeja – Lagos Assael, H. (1984) Consumer Behaviour and Marketing Action. Boston
mass pent Publishing Company. Baridam, D.M (2001) Research method in administrative science,,
Port Harcourt: shev Brooks Associates. Engel, J.F, Blackwell, R.D and Miniard, P.W. (1993) consumer
Behaviour. Dryden press, Harcourt brace Jovanonc h, New York.
Festinger, L. (1957) A theory of Cognitive Dissonance. California:
Standard University Press. Gupta, R.N. (2006) Business organization and management. Rain
Nagar, New Delhi Industrial Marketing Research Association (IMRA) regulation lichfied,
1969. Kalu, S.E. (1998) Strategic Marketing Management: Planning
execution and control. East -west Road ,choba .university of port Harcourt Press Ltd.
91
Kotler, P and keller, K.L. (2006) Marketing management 12e. Prentice Hall Inc, New Delhi.
Kotler, P. (1984) Marketing Management -Analysis, Planning and
Control. New Jersey, 5th Edition. Kotler, P. and Keller, K (2006) 12th Ed Marketing Management.
Prentice hall, inc, New Delhi, India. Norbert, M.L (1999) Management and organizational theory and
practice, vaugasen Ltd. Enugu Nigeria. Nwachukwu, C.C (2006) Management theory and practice Africana
FEP – Publishers, Onitsha Nigeria. Okeafor, U.S. (1996) marketing research and project writing guide.
World communication Ltd, Ikeja Lagos. Onah, J.O. and Thomas, M.J. (2004) 2nd ED Marketing Management:
Strategies and cases. Institute of development studies, university of Nigeria, Enugu campus
Rothschuld and Gaids (1981) management Theory and Practice.
Tokyo; McGraw – Hill Koya kusha, Ltd. Taylor, W.J, and Shaw, R.T. Jnr. (1969). Marketing: An integrated
Analytical Approach.Cincinnati, Ohio, South – Western Pub. Co
92
APPENDIX A
School of Post Graduate Studies, Faculty of Business Administration, Department of Marketing, University of Nigeria, Enugu Campus. March 4th, 2009. Sir / Madam
QUESTIONNAIRE FOR COMPLETION
I am post-graduate student of the above named institution, carrying
out a research work on “AN ANALYSIS OF MOTIVATIONAL
INFLUENCES ON CUSTOMER BUYING BEHEAVIOUR OF
INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES”, as
part of the requirement for the award of Masters Degree in Business
Administration (MBA Marketing).
Please, could you spare a few minutes of your time to respond briefly
and as precisely as possible to the questions posed on the attached
questionnaire.
All information elicited through this medium, will be held in strict
confidence and used for the research purpose alone.
Thank you for your co-operation.
Yours faithfully,
Paul Aduba
93
QUESTIONNAIRE FOR INDUSTRIAL PRODUCT BUYERS.
INSTRUCTION
Please kindly supply the following information required by
ticking () the box that appears best or suitable to you. All information
given will be held confidence.
1. Sex: Male Female
2. Age group: 20-30yrs 31-40yrs 42-50yrs
51 and above
3. Educational qualification- GEC / SSCE OND/NCE/HND
University Degree (BSC) Others
4. How long have you been with this company or organization?
1-10yrs 11-20yrs 21-30yrs 30 and above
5. Does your company purchase industrial product? Yes No
6. How often does your company purchase industrial product?
Weekly Monthly Yearly
7. What type of industrial product does your company purchase?
Raw material
Installations
Accessory Equipment/component parts
Operating Supplies
94
8. What motivates you mostly in buying your industrial products?
a. Price
b. Product quality
c. Availability of spare parts
d. Brand name
e. Trade name / Trade mark
9. To what extent do you consider price in the purchase of
industrial products?
a. very high extent
b. High extent
c. Medium
d. Low extent
10. Would you buy the product if the price is reduced and cheep
materials are used by the producers? Yes No
11. What type of Purchase do you make? Straight rebuy
Modified rebuy New task
12. To what extent do the following influence your buying decision.
Great extent Moderate Not at all
Culture
Economy
95
Social class
Personal
13. To what extent does price influence your industrial buying
behaviour?
a. Very high extent
b. High extent
c. Medium extent
d. Low extent
14. Do you consider trade name important during industrial
purchase? Yes No
15. Does the name of a company influence your buying behaviour?
Yes No
16. To what extent are you influenced by trade name during your
industrial buying exercise
a. Very high extent
b. High extent
c. Medium extent
d. Low extent
96
17. How do you rate your buying Behaviour?
a. Very high extent
b. High extent
c. Medium extent
d. Low extent
18. To what extent would you rate your buying exercise?
a. Very high extent
b. High extent
c. Medium extent
d. Low extent
97
APPENDIX B
GUIDE QUESTION FOR ORAL INTERVIEW
(1) Does general opinion affects or influence your purchases of
industrial product?
(2) Do you consider both price and quality in your purchase of I
industrial products?
(3) How much does brand name and trade mark influence your
purchase of industrial product?
(4) Do you compromise quality and price to trade mark or name in
your purchase of industrial products?
(5) Can deviation from quality and price affect your brand loyalty to
a particular product?
(6) Profit is the major aim of any business organization or set up.
Do you consider price factor in your purchase in relation to
profit or cost?
(7) Does the availability of spare parts, in any way influence your
purchase of industrial products?
(8) Does industrial product quality and availability motivate your
purchase or buying decisions?
(9) Does the image of a company influences your purchase of their
products?
(10) Does product price and features in any way influences your
purchase of such industrial goods?
98
APPENDIX C
HYPOTHESIS ONE
Price and Industrial Buying Behaviour
S/NO Rx Ry (X-Y) (X-Y)2
1 4 3 1 1
2 2 2 0 0
3 4 2 2 4
4 3 3 0 0
5 4 3 1 1
6 4 4 0 0
7 4 4 0 0
8 2 3 -1 -1
9 3 1 2 4
10 3 4 -1 -1
11 1 2 -1 1
12 4 4 0 0
13 3 4 -1 1
14 2 2 0 0
15 2 2 0 0
16 2 2 0 0
17 2 3 -1 1
18 4 3 1 1
19 4 3 1 1
20 4 4 0 0
21 4 4 0 0
22 3 2 1 1
23 3 3 0 0
24 1 2 -1 1
25 2 3 -1 1
26 4 0 0 0
27 4 4 0 0
28 3 2 1 1
29 3 3 0 0
30 3 3 0 0
31 4 4 0 0
32 4 4 0 0
99
33 3 4 1 1
34 3 2 1 1
35 3 2 1 1
36 3 3 0 0
37 4 3 1 1
38 4 3 1 1
39 4 4 0 0
40 2 4 -2 4
41 3 2 1 1
42 2 4 -2 4
43 4 2 2 4
44 4 3 1 1
45 4 3 1 1
46 3 4 -1 1
47 3 3 0 0
48 3 4 -1 1
49 4 4 0 0
50 4 4 0 0
51 2 2 0 0
52 2 3 -1 1
53 2 1 1 1
54 4 3 1 1
55 4 2 2 4
56 4 2 2 4
57 4 3 1 1
58 4 3 1 1
59 4 2 2 4
60 2 3 -1 1
61 1 2 -1 1
62 1 3 -2 4
63 3 3 0 0
64 3 2 1 1
65 4 3 1 1
66 4 2 2 4
67 3 2 1 1
68 3 3 0 0
69 2 3 -1 1
70 2 3 -1 1
71 4 2 2 4
100
72 4 2 2 4
73 4 3 1 1
74 4 2 2 4
75 3 3 0 0
76 4 4 0 0
77 4 4 0 0
78 3 2 1 1
79 2 3 -1 1
80 3 4 -1 1
81 3 2 1 1
82 3 3 0 0
83 3 3 0 0
84 4 3 1 1
85 4 4 0 0
86 2 3 -1 1
87 4 4 0 0
88 3 3 0 0
89 3 3 0 0
90 4 2 2 4
91 2 2 0 0
92 4 4 0 0
93 4 3 1 1
94 4 3 1 1
95 4 2 2 4
96 4 4 0 0
97 3 3 0 0
98 3 4 -1 1
99 2 4 -2 4
100 3 4 -1 1
101 4 3 1 1
102 4 2 2 4
103 4 2 2 4
104 3 3 0 0
105 2 2 0 0
106 3 2 1 1
107 2 3 -1 1
108 2 3 -1 1
109 2 2 0 0
110 3 4 -1 1
101
111 4 4 0 0
112 3 3 0 0
113 3 3 0 0
114 3 3 0 0
115 2 3 -1 1
116 1 2 -1 1
117 3 3 0 0
118 3 3 0 0
119 4 4 0 0
120 2 2 0 0
121 4 4 0 0
122 4 4 0 0
123 2 3 -1 1
124 3 4 -1 1
125 4 4 0 0
126 3 3 0 0
127 2 2 0 0
128 3 2 1 1
129 2 3 -1 1
130 4 4 0 0
131 4 4 0 0
132 4 4 0 0
133 3 4 -1 1
134 2 3 -1 1
135 3 3 -1 1
136 3 3 0 0
137 4 2 2 4
138 3 2 1 1
139 2 1 1 1
140 4 4 0 0
141 4 2 2 4
142 4 3 1 1
143 4 4 0 0
144 2 3 -1 1
145 2 3 -1 1
146 3 4 -1 1
147 3 3 0 0
148 3 3 0 0
149 3 2 1 1
102
150 4 4 0 0
151 3 3 0 0
152 3 3 0 0
153 1 1 0 0
154 1 2 -1 1
155 3 3 0 0
156 4 3 1 1
157 4 4 0 0
158 2 3 0 0
159 3 4 -1 1
160 4 4 0 0
161 4 3 1 1
162 2 3 -1 1
163 2 3 -1 1
164 3 4 -1 1
165 4 3 1 1
166 4 4 0 0
167 4 3 1 1
168 2 3 -1 1
169 2 2 0 0
170 3 3 0 0
171 3 4 -1 1
172 4 4 0 0
173 3 4 -1 1
174 4 3 1 1
175 3 2 1 1
176 3 2 1 1
177 4 3 1 1
178 4 4 0 0
179 2 2 0 0
180 1 2 -1 1
181 1 2 -1 1
182 2 3 -1 1
183 1 1 0 0
184 4 3 1 1
185 4 2 2 4
186 4 3 1 1
187 3 3 0 0
188 2 1 1 1
103
189 3 3 0 0
190 3 4 -1 1
191 4 2 2 4
192 4 2 2 4
193 3 3 0 0
194 4 4 0 0
195 4 4 0 0
196 4 3 1 1
197 4 2 2 4
198 3 3 0 0
199 2 2 0 0
200 2 3 -1 1
201 3 3 0 0
202 3 4 -1 1
203 3 4 -1 1
205 4 4 0 0
206 4 4 0 0
207 4 4 0 0
208 3 4 -1 1
209 3 3 0 0
210 2 2 0 0
211 2 1 1 1
212 1 2 -1 1
213 2 3 1 1
214 3 4 -1 1
215 4 3 1 1
216 4 3 1 1
217 4 4 0 0
218 3 2 1 1
219 3 2 1 1
220 3 3 0 0
221 3 4 -1 1
222 4 4 0 0
223 2 4 2 4
224 3 3 0 0
225 2 2 0 0
226 2 2 0 0
227 3 4 -1 1
228 4 3 1 1
104
229 4 2 2 4
230 4 4 0 0
231 2 2 0 0
232 4 4 0 0
233 3 4 -1 1
234 3 3 0 0
235 3 4 -1 1
236 4 2 2 4
237 2 4 -2 4
238 2 3 -1 1
239 4 4 0 0
240 4 4 0 0
241 4 3 0 0
242 3 3 0 0
243 2 3 -1 1
244 3 4 -1 1
245 3 2 1 1
246 3 4 -1 1
247 3 3 0 0
248 4 4 0 0
249 2 4 -2 4
250 2 3 -1 1
0 ∑234
X – Y represents d
(X-Y)2- represents d2
∑d2 = 234
rs = 1 - 6∑d2
N(N2 - 1) = 0.999
105
APPENDIX D
HYPOTHESIS TWO
Trade Name and Industrial Buying Behaviour
S/NO Rx RY d D2
1 3 2 1 1
2 1 1 0 0
3 3 2 1 1
4 2 1 1 1
5 4 4 0 0
6 4 3 1 1
7 3 3 0 0
8 4 3 1 1
9 3 3 0 0
10 3 4 -1 1
11 3 4 -1 1
12 3 2 1 1
13 2 2 0 0
14 1 2 1 1
15 1 1 0 0
16 4 4 0 0
17 4 4 0 0
18 2 2 0 0
19 3 1 2 4
20 3 2 1 1
21 3 2 1 1
22 3 3 0 0
23 4 3 1 1
24 4 4 0 0
25 4 4 0 0
26 3 3 0 0
27 4 3 1 1
28 3 2 1 1
29 2 1 1 1
30 2 2 0 0
31 2 2 0 0
32 3 4 -1 1
106
33 3 4 -1 1
34 4 3 1 1
35 4 4 0 0
36 2 3 -1 1
37 3 3 0 0
38 4 4 0 0
39 4 2 2 4
40 3 3 0 0
41 3 3 0 0
42 1 2 -1 1
43 1 2 -1 1
44 4 3 1 1
45 2 4 -2 4
46 3 2 1 1
47 3 3 0 0
48 4 4 0 0
49 4 4 0 0
50 3 4 1 1
51 4 4 0 0
52 3 2 1 1
53 2 1 1 1
54 2 2 0 0
55 2 2 0 0
56 3 2 1 1
57 4 3 1 1
58 1 2 -1 1
59 2 2 0 0
60 4 3 1 1
61 4 4 0 0
62 4 4 0 0
63 3 3 0 0
64 3 3 0 0
65 2 3 -1 1
66 2 3 -1 1
67 2 2 0 0
68 1 2 -1 1
69 4 4 0 0
70 4 2 2 4
71 3 2 1 1
107
72 4 4 0 0
73 4 3 1 1
74 4 4 0 0
75 2 2 0 0
76 2 1 1 1
77 3 3 0 0
78 3 3 0 0
79 3 3 0 0
80 3 1 2 4
81 4 3 1 1
82 2 2 0 0
83 4 4 0 0
84 2 2 0 0
85 4 4 0 0
86 4 4 0 0
87 4 3 1 1
88 3 3 0 0
89 2 3 -1 1
90 3 2 1 1
91 3 4 -1 1
92 4 4 0 0
93 2 2 0 0
94 3 3 0 0
95 2 2 0 0
96 3 3 0 0
97 4 4 0 0
98 4 4 0 0
99 4 4 0 0
100 4 3 1 1
101 3 4 -1 1
102 3 2 1 1
103 4 4 0 0
104 3 1 2 4
105 3 3 0 0
106 3 3 0 0
107 4 4 0 0
108 4 2 2 4
109 4 2 2 4
110 2 2 0 0
108
111 2 1 1 1
112 3 2 1 1
113 4 3 1 1
114 3 3 0 0
115 2 3 -1 1
116 3 4 -1 1
117 1 2 -1 1
118 4 4 0 0
119 4 4 0 0
120 4 3 1 1
121 2 3 -1 1
122 1 1 0 0
123 2 2 0 0
124 2 1 1 1
125 3 2 1 1
126 4 4 0 0
127 3 2 1 1
128 3 2 1 1
129 4 3 1 1
130 4 4 0 0
131 4 4 0 0
132 2 3 -1 1
133 3 3 0 0
134 2 3 -1 1
135 2 2 0 0
136 2 2 0 0
137 3 3 0 0
138 4 3 1 1
139 3 4 -1 1
140 3 3 0 0
141 2 1 1 1
142 4 3 1 1
143 2 1 1 1
144 3 4 -1 1
145 3 4 -1 1
146 3 4 -1 1
147 3 3 0 0
148 3 3 0 0
149 3 2 -1 1
109
150 4 4 0 0
151 4 3 1 1
152 2 1 1 1
153 2 1 1 1
154 2 2 0 0
155 4 4 0 0
156 4 4 0 0
157 3 2 1 1
158 3 4 -1 1
159 2 4 -2 4
160 3 3 0 0
161 4 3 1 1
162 4 3 1 1
163 4 4 0 0
164 4 4 0 0
165 3 2 1 1
166 3 3 0 0
167 2 1 1 1
168 2 3 -1 1
169 3 3 0 0
170 2 2 0 0
171 3 3 0 0
172 3 3 0 0
173 3 2 1 1
174 4 4 0 0
175 2 3 -1 1
176 1 2 -1 1
177 2 3 -1 1
178 3 3 0 0
179 4 3 1 1
180 4 3 1 1
181 4 3 1 1
182 3 2 1 1
183 3 3 0 0
184 2 3 -1 1
185 2 2 0 0
186 4 2 2 4
187 3 1 2 4
188 4 4 0 0
110
189 4 4 0 0
190 3 4 -1 1
191 3 3 0 0
192 3 3 0 0
193 4 4 0 0
194 3 3 0 0
195 3 3 0 0
196 3 2 1 1
197 4 3 1 1
198 3 2 1 1
199 2 2 0 0
200 2 2 0 0
201 1 2 -1 1
202 4 4 0 0
203 3 2 1 1
204 3 2 1 1
205 3 4 -1 1
206 3 3 0 0
207 3 3 0 0
208 2 2 0 0
209 4 2 2 4
210 4 3 1 1
211 2 1 1 1
212 3 4 -1 1
213 3 4 -1 1
214 3 4 1 1
215 4 4 0 0
216 3 3 0 0
217 3 4 -1 1
218 2 2 0 0
219 2 1 1 1
220 2 2 0 0
221 3 4 -1 1
222 4 4 0 0
223 3 4 -1 1
224 3 3 0 0
225 3 2 1 1
226 4 4 0 0
227 4 3 1 1
111
228 3 3 0 0
229 3 3 0 0
230 1 2 -1 1
231 1 1 0 0
232 4 3 0 0
233 4 3 0 0
234 4 4 0 0
235 3 3 0 0
236 2 3 -1 1
237 2 2 0 0
238 3 3 0 0
239 3 3 0 0
240 3 4 -1 1
241 3 3 0 0
242 4 4 0 0
243 2 2 0 0
244 1 2 -1 1
245 3 4 -1 1
246 1 2 -1 1
247 3 3 0 0
248 3 2 1 1
249 3 3 0 0
250 4 3 1 1
∑160
∑d2 = 160
Rs = 1 -6∑d2
N (N2-1) = 0.999
X-Y represented by d, (X-Y)2 represented by d2