Consumer Purchase Decision Involvement Across Product Categories and Demographics
Consumer Purchase Decision Involvement Across Product Categories and Demographics
Consumer Purchase Decision Involvement Across Product Categories and Demographics
and Demographics
Ajay Bansal1 Rahul Gupta2 Vinita Srivastava3
Abstract
Customer involvement for various product categories has been area of attention for both
academicians and marketers since long. This involvement of customers has been at the center of
final buying decision. However, developing countries like India still lack in-depth insights into the
said subject, as not many researches have been done taking Indian culture into consideration. If
generalization of concepts has to be done, coverage of various cultures in similar context is a must.
Also, very few researches have focused on effect of demographics on buying involvement and hence
on final buying decision. Hence, the following research was done to investigate consumer purchase
involvement across product categories with integrative effect of three important demographics :
Education, Income, Gender. On the basis of past literature, purchase decision involvement across
six categories viz., eyeglasses, pencils, car, salt, tea and mobile phone was studied. Data collection
was done through an adapted and structured questionnaire which was administered amongst
respondents in Delhi and NCR. Questionnaire included five items for each product category related to
purchase decision involvement. Results indicate that consumer involvement across the six category of
goods studied is independent of gender, income and education. For marketers and researchers,
final implications of the research have been shared in the article. This study will guide the
practitioners in devising marketing strategies owing to differences in product involvement.
Informative marketing strategies can be devised for each category of products depending on the
customer’s involvement in purchase decision of specific category.
1
Assistant Professor, Jaipuria Institute of Management, Noida
2
Assistant Professor, Amity Business School, Noida
3
Assistant Professor, Jaipuria Institute of Management, Noida
Introduction
In todays’ era customers are inundated with multiplicity of products, multiple substitutes for each
of the products, ease of access to products through multiple channels and personalized and new
generation ways of communication media. This has influenced the way in which customers get
involved in buying decision of specific products. This research is undertaken to understand how
buying decision involvement exists today amongst different category of products. Involvement in
buying and taking a decision can be considered as maximum attention and responsibility that a
customer brings along for taking a buy call. Buying decision involvement is also dependent on the
time, money and effort individual customer devotes on a particular product. The amount of
money spent as well as the time and effort involvement for a product differs with product
categories.
People are living bundles of needs. They need life-giving substances, transportation, personality
makeover goods, telecommunication goods & services, and thousands of other items. Every
person in the world is a consumer some way or the other. The consumer or buyer is a complex
entity and through their acquisition of products they try to enhance their living standards. The
consumers’ acquisition of products is often affected by factors like individual demographics.
Some of these product acquisitions are within their means and hence they can easily meet them.
On the other hand, some others may be beyond reach. Consumer realizes that needs can be ever-
growing and yesterday’s luxuries are today’s necessities, and strives to increase income to meet
growing needs. Similarly, gender wise there seem to be peculiarities and inconsistencies in
consumer buying behavior that makes it difficult to predict and understand. Educated consumer
exercises options, dictates creation of goods and services. All these constitute uninhibited
purchase behavior.
Both marketers and researchers have keen interest in understanding buying behavior of
consumers. The question of why, when, where & how consumers buy has been debated for ages.
Since across geographies, customers differ to a great extent in education, purchasing power,
family life cycle and age, with specific gender traits, hence marketers find it useful to know more
about the consumer decision making process, which in turn helps them to segregate and form
segments to develop strategies for optimum marketing efforts. Global competition, pressure on
market share, shrinking profit margins, increasing customer demand towards product and service
quality, has augmented the importance of consumer buying behavior in the recent times.
However, it is very tedious task to understand know consumers and their buying behavior. The
product acquisition is based on individual factors which arouse interest, desire and finally action
and are sometimes entirely different among customers who dwell in different parts of the same
country. It can be observed without doubt the variation in behavior of the customers in various
parts of the country/world, as they differ in their attitudes, beliefs, preferences, education, level of
understanding, awareness level, lifestyle, financial status, methods used for pre-purchase
evaluation.
For marketers to make better strategies, it is important they get into the ‘why and how’ of
individuals getting involved and making their purchase decisions. As per Kotler, even under
marketing concept it is necessary that marketers have an understanding of consumer involvement
in purchase behavior. With this understanding they are able to foresee and visualize the reaction
of customers who differ in demographics and thus perceive various marketing cues differently.
Undoubtedly, this understanding of the extent of consumer involvement for a particular product
and hence consumer buying pattern will equip them with competitive edge in the market and
hence this study may help them. Apart from marketers, the study may also help customers as they
may find merit in understanding the ‘what, why, how’ of own buying behavior and the integrated
effect of demographics in a buy call.
Literature Review
Beharrell and Denison (1995); Laaksonen (1994) in there study mentioned that customer
involvement to acquire a product may be used in understanding the both levels of efforts of
a consumer ie physical and psychological. Since last half century, there has been
considerable discussion and research on consumer involvement by the academicians, as it
was believed to have some effect on purchase decision. However, in India, the number of
research studies on the construct except for work of Jain and Sharma (2000-2002), Sanjaya
and Sadarangani (1998), and Avinandan and Anirban (1996), have been limited. Further if
effect of other factors like consumer demographics etc on consumer involvement is brought
into picture, the construct seemed to have lost its importance in minds of Indian researchers
since quite a time.
Customer involvement has originated from social psychology and is a conception of ego’s
engagement that refers to the relations between an individual, a goal or a subject. Some connect
research on customer involvement to the studies done by Allport (1943). He asserted that
customer involvement is one of the fundamental behaviors that originate from ego’s
engagement. However, Krugman (1965) used customer involvement in marketing of
products. Since he made his important claim about only two levels of involvement ie low and
high, customer involvement structure has turned into an important factor in the study of
efficiency of marketing (Wang, 2014). However, Zaickhowsky; Laurent; and Kepferer (1985) later
conceptualized that customer involvement was on a continuum. After measurement of customer
involvement via propaganda by Krugman, this concept was connected to marketing and consumer
buying behavior. Since then and especially following an increase in studies on consumer buying
behavior during the 1980s, further attention was focused on the concept and measurement of
customer involvement in relation to objects such as a product, message, purchase, advertising or
activity [Mitchell (1979); Petty and Cacioppo (1981); Slama and Taschain (1985)]. Although
there is no precise definition of customer involvement in marketing field, there is a consensus
about it and that is: customer involvement is an individual level and an internal variable that
refers to personal dependency with goals or events (Dvir, 2012).
Richins and Bloch (1986); Kotler (2002); Saxena (2002), found that consumers are not much
involved in the buying of the products which are low in price. Also, several dispositional
characteristics of individuals and many other factors tend to influence the purchase behavior of
customers, and are quite varied and complex over time and across space. Alreck (2000) stated that
with age an individual forms attitudinal and behavioral paradigm. Eagly and Carli (1981); Fischer
and Arnold (1994); Sanjay (2001), state, males and females vary in personality, thought
processes, and hence their buying behavior is different from each other. Hence the involvement
level while buying products is also different. Hawkins et al (2003), in his research mentioned that
buying power of an individual is determined by his/her income. However, through income just
acquisition of goods is possible not the understanding of the cause of buying decision [Mulhern et
al (1998)]. It was observed by Slama and Taschian (1985), that involvement may vary with
income. It has been found in a past study that with differences in education, the pattern of
involvement in buying also differs. It is evident that considerable work remains in investigating
the demographic factors motivating the people to purchase products. Thus there exists a strong
need to offer conceptually sound, operationally feasible strategies to bring about a change by
empirically studying the attitude and behavior of purchasers. To study the said phenomenon of
customer purchase involvement, authors have adapted purchase decision involvement scale from
Mittal (1989), whose work was published in Journal of Psychology and Marketing.
Marketers’ success in influencing consumer buying behavior depends to a large extent on their
correct understanding of consumer buying behavior. The information related to consumer
buying behavior can be used to help predict their actions in the market. Therefore, it is essential
to know about the factors affecting purchasers’ behavior and what these factors have to do with
purchasers’ decision to purchase a product. Since consumers are considered the turning point of
all marketing activities, successful marketing starts with understanding the why and how of
consumer buying behavior. Studying and investigating the parameters affecting consumer
purchase decision and investigating the rate of effect of each one of these factors on their buying
behavior leads to access to some knowledge and understanding about consumer buying behavior
so that marketers will be able to make strategies which can result into more optimum utilization
of resources, hence increasing both efficiency and effectiveness of marketing efforts. They may
also acquire better understanding for supplying a product which conforms to the consumers’
needs and wants. In other words, they can provide offers for different segments that are the
outcomes of the factors affecting consumer buying behavior and can create utmost satisfaction in
them. They may device offers which change customers’ attitude in order to enhance return on
investment.
Research Objectives
This research work was undertaken after extensive literature review which pointed out
towards the scarcity of work on ‘customer involvement’ in Indian context. The prime
objective of the investigation was to examine the difference in customer involvement across
various products. To check if demographics of consumer have any effect in this involvement
across products. The analysis and results of the study are submitted in the research paper. The
two research questions which the authors have tried to answer in the study were
RQ1 : Does customer involvement differ across different products?
RQ2 : Does customer demographics have any effect on customer involvement ?
Both marketers and academicians would find lot of merit in answers to the two research
questions. The academicians may use the result for further studies in a different culture and
try to find out new dimensions of the construct. Marketers can use the result for developing
business strategies, which can be useful in putting efforts in right direction and in optimum
use of resources.
Research Methodology
A structured questionnaire was adapted for collecting primary data amongst respondents in Delhi
and NCR. Questionnaire included five items related to buying decision involvement. Buying
decision involvement across six categories viz., eyeglasses, pencils, car, salt, tea and mobile
phone was studied. List of categories were identified on the basis of survey of literature and views
of experts. Mean scores across the six categories were studied. Seven hundred respondents were
contacted and a total of three hundred and twenty-four completed and usable questionnaires could
be obtained, which is a response rate of approximately forty-six percent. Convenience sampling
method was used for reaching out to respondents. For analyzing data, tools like t-test, Chi-Sq.,
factor analysis and correlation were used. This study will guide the practitioners in devising
marketing strategies owing to differences in product involvement. Informative marketing
strategies can be devised for each category of products depending on the customer’s involvement
in purchase decision of specific category.
Figure 1 refers to the framework of our research. Demographic variables age, income, gender and
education are being considered and their interaction with consumer involvement is being studied.
Demographics Consumer
Gender Involvement
Income
Education
Fig1 : Framework for the paper
H1: Consumer involvement levels do not differ across consumers for different products.
H2 : Consumer involvement for an individual product(six products studied) does not differ with
the differences in the consumers’ demographics (gender, income and education).
Analysis and Result
Table 1 reflects demographic profile of respondents. It is evident that equal participation from
both the genders was there. Respondents reflect young population and fall in the age group of 21-
30 years. Income in the table refers to household income and respondents reflect education in two
categories, graduate and postgraduate.
Table 2 refers to the consumer involvement mean scores across different categories. Higher mean
score refers to higher level of involvement of the respondents in the product category. We find
that consumers demonstrate highest level of involvement for car and lowest level of involvement
for pencil. The difference in level of involvement for each of the product category is in the
following order car, mobile, eyeglass, tea, salt and pencil and has been found to be statistically
significant. Thus we reject hypothesis ‘H1’. This means consumer involvement levels differ
across consumers for different products.
Table 3 depicts correlation between consumer involvements for different product categories. It
was found that high involvement products are showing high positive correlation like car, mobile
and eyeglasses. It is also evident that low involvement products in our study are exhibiting high
correlation with each other like salt and pencil. High involvement products are also exhibiting low
correlation with low involvement products.
Consumer involvement for different products and its variation with demographics is being studied
in Table 4 to Table 9 (in annexure 1). It was done by recoding involvement data as low as 1 to 2,
low moderate 2 to 3.5 and high moderate 3.5 to 5.5, high 5.5 to 7. Chi square test was carried out
to study consumer involvement and its relationship with consumer demographics. We fail to
reject hypothesis ‘H2’ at ninety-five percent confidence level. This reflects that consumer
involvement for an individual product (six products studied) does not differ with the differences
in the consumers’ demographics (gender, income and education).
Results are further supported by factor analysis (table 10 in annexure 1) carried out on data. It was
found that items pertaining to each of the product category grouped into single variable with high
reliability. Reliability scores for involvement for car, mobile, eyeglasses, tea, salt and pencil were
0.895, 0.744, 0.900, 0.925, 0.884, 0.893. For purchase decision involvement scale, KMO (0.839)
and Bartlett's Test of Sphericity (p=.000) both showed enough adequacies of data to support the
factor analysis. On the basis of this “eigen value greater than 1 heuristic”, confirmatory factor
analysis was done where extracted factors accounted for 79.182 per cent of the total variance. Table
10 displays the rotated factor matrix for purchase decision involvement, based on a factor loading of
0.50. Based on the results reported in the “Rotated Factor Matrix”, the following factor structure
emerged. All the five items of purchase decision involvement related to car, tea, eyeglasses, pencil,
salt and mobile loaded on factor 1,2,3,4,5 and 6, thus the individual factors were named as named as
PD car, PD tea, PD eyeglasses, PD pencil, PD salt and PD Mobile.
Sanjay, Putrevu (2001). "Exploring the Origins and Information Processing Differences
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Slama E. Mark and Armen Taschian (1985) "Selected Socioeconomic and Demographic Characteristics
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consumer decision-making’’, Journal of Consumer Affair, Vol. 12, Summer, pp. 88-103.
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ANNEXURE 1
Table 4: Level of involvement for MOBILE and relation to demographics of respondents
Level of Education of Monthly Income of respondent Gender of the
Involvement respondent respondent
Graduate Post Below 30000 60001 Above Male Female
Graduate 30000 to to 90000
60000 90000
Low
Low moderate 2.1% 1.4% 0.7% 2.1%
High moderate 13.9% 15.3% 6.9% 7.6% 10.4% 4.2% 16.0% 13.2%
High 31.9% 36.8% 16.0% 17.4% 18.8% 16.7% 34.0% 34.7%
NS
n=324
Sig. .000