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1 PAUL NNAMDI ADUBA PG/MBA/07/46914 AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF CUSTOMER BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH 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
Transcript

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

5

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

6

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

7

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.

8

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

9

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

10

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

11

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

12

LIST OF FIGURE

Figure 2.2 Consumer Buying Decision Processes – a

comparison - - - - - - - 19

Figure 2.3.2 Abraham Maslows Hierarchy of needs - 32

13

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

14

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

16

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,,

17

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.

18

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

19

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.

20

(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

21

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

23

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.

24

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.

25

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.

26

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.

27

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.

28

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).

31

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).

32

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)

33

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.

37

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


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