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FACTORS AFFECTING CONSUMER BEHAVIOUR ASSUMING AND FULFILLING CREDIT LIABILITIES IN LATVIA
Ilona Lejniece
University of Latvia, Latvia, lejnieki@apollo.lv
Abstract
The aim of the research paper is to determine the factors which affect the behaviour and decision making of consumers when assuming credit liabilities. To achieve this objective the questionnaire as a method of qualitative analysis was worked out and employed. The questionnaire was used to reveal the motivation of consumers behaviour regarding credit liabilities. The data obtained during the research process about the parameters of this phenomenon characterize the each part of the unit analysed. Consumer behaviour and decision making process is affected both by internal and external factors. The group of internal factors comprises psychological and personal factors of consumer behaviour. The group of external factors affecting consumer behaviour comprises social factors, which influence the decision of the consumer to assume credit liabilities. Keywords: consumer behaviour, external factors, internal factors, credit liabilities, Latvia. JEL Classification: M39, M30, M30, G2, P2.
Introduction
The main goal of research is to analyze factors what influences consumer behaviour assuming and fulfilling credit liabilities. Very special role in presented research is devoted to analysis of consumer behaviour in small market with specific particularities (for example Latvia). Research object is particularities of consumer behaviour under impact of internal and external factors. The research data collection realized through a direct interview method and indirect method of interview. The data collection instrument in this research is a structured questionnaire with limit options, part of the questions can have more answers. The research method - a typological multi-stage sample or occasional sample. In processing the research data are used statistical analysis and multidimensional analysis. Using the evaluation scale of 1 to 10, the participant of the research (respondents) value each given factor, where "1" means that a given factor did not affect the decision / insignificant factor, "10 "means that the given factor has a major impact on the decision / the most important factor (see Table 1). Table 1. Factors affecting consumer behaviour to the questionnaire
(authors summary) Factors group Psychological factors (internal factors) Factors Attitude Knowledge Level interested-in Motivation Perception New experience Values Information about credit relation Living standard Social status 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 Rating/value 5 6 7 5 6 7 5 6 7 5 6 7 5 6 7 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 10 10 10 10 10 10 10 10 10 10
The table summarizes the ten most important factors affecting consumer behaviour. These factors are grouped into three main categories-psychological factors, personal factors and social factors. For each factor group the author made analyze using the survey results. Statistical data analysis was made using the program SPSS tools. 1274
Age
Education
Location
Occupation
The unit of analysis- respondents aged over 18 years, who have credit liabilities and who is the enduser of the credit products. The survey involved 1008 respondents of Latvia (n = 1008).
The level of interested-in characterizes what importance the consumer gives to the choice in favour of one or another credit product and decision making process. This level reflects consumers emotional attitude towards credit liabilities. Motivation is the inner force that stimulates the consumer to act. Motivation as a catalyst to assume credit liabilities is a vector- it has intensity and direction. At the same time the consumer assesses the level of his knowledge and capacities that affect the process of decision making, when selecting the most adequate credit agreement. Perception indicates how consumer has created his own world outlook where the reflection of complexity of objects, visions, situations and events in conscience does not take place by direct effect on sensor organs. Table 3. Psychological factors affecting consumer behaviour to the questionnaire
(n=1008, authors summary) Attitude Frequency Knowledge Frequency The level interested-in Frequency Frequency Valid Percent Motivation Frequency Perception
Valid Percent
Valid Percent
Valid Percent
Valid
1 2 3 4 5 6 7 8 9 10 Total
17,9 9,5 1,2 2,4 20,2 8,3 7,1 9,5 9,5 14,3 100
14,3 4,8 8,3 2,4 16,7 4,8 11,9 11,9 8,3 16,7 100
16,7 8,3 2,4 4,8 15,5 2,4 7,1 14,3 14,3 14,3 100
40,5 7,1 4,8 7,1 9,5 3,6 0 10,7 3,6 13,1 100
Analyzing results of the survey about attitude as psychological factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that attitude did not affect decision of 180 respondents assuming and fulfilling credit liabilities (17,9% of cases), however for 144 respondents (14,3% of cases), attitude was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about knowledge as psychological factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that knowledge did not affect decision of 144 respondents assuming and fulfilling credit liabilities (14,3% of cases), however for 168 respondents (16,7% of cases), knowledge was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about the level of interested-in as psychological factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that the level of interested-in did not affect decision of 168 respondents assuming and fulfilling credit liabilities (16,7% of cases), however for 144 respondents (14,3% of cases), the level of interested-in was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about motivation as psychological factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that motivation did not affect decision of 408 respondents assuming and fulfilling credit liabilities (40,5% of cases), however for 132 respondents (13,1% of cases), motivation was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about perception as psychological factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that perception did not affect decision of 336 respondents assuming and fulfilling credit liabilities (33,3% of 1276
Valid Percent 33,3 9,5 7,1 4,8 11,9 6 9,5 10,7 3,6 3,6 100
cases), however for 36 respondents (3,6% of cases), perception was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia.
Analyzing results of the survey about new experience as personal factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that new experience did not affect decision of 516 respondents assuming and fulfilling credit liabilities (51,2% of cases), however for 60 respondents (6% of cases), new experience was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about values as personal factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that values did not affect decision of 276 respondents assuming and fulfilling credit liabilities (27,4% of cases), however for 96 respondents (9,5% of cases), values was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia.
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Analyzing results of the survey about information about credit relation as social factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that information about credit relation did not affect decision of 72 respondents assuming and fulfilling credit liabilities (7,1% of cases), however for 192 respondents (19% of cases), information about credit relation was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about living standard as social factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that living standard did not affect decision of 72 respondents assuming and fulfilling credit liabilities (7,1% of cases), however for 264 respondents (26,2% of cases), living standard was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia. Analyzing results of the survey about social status as social factor impact on consumer behaviour, that affect the consumer's decision assuming and fulfilling credit liabilities, author concludes that social status did not affect decision of 348 respondents assuming and fulfilling credit liabilities (34,5% of cases), however for 84 respondents (8,3% of cases), social status was an important factor that affected the decision of consumer behaviour assuming and fulfilling credit liabilities in Latvia.
Summary
Consumer behaviour is affected by situation and the consumer himself, that is, internal and external factors. Internal factors refer to such characteristics of individuals as age, income level, interests, and state of mood, knowledge, involvements and attitudes. External factors refer to situation and environment where the consumers interrelate, which can affect attitude, decisions and behaviour. Internal and external factors have important influence on consumer behaviour. However, external factors are more special. External factors are unpredictable and are influenced not only by economical situation in state out also in region and whole world. Because living standard and social status of person change by externals, that is influenced by flow of information.
References
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This paper has been supported by the European Social Fund within the project Support for Doctoral Studies at University of Latvia. 1278