Volume-4, Issue-3, June-2014, ISSN No.
: 2250-0758
International Journal of Engineering and Management Research
Decision Factors Affecting Consumers Purchasing Behaviour For Publicly
Used Products
Dr. Mahabir Narwal
Associate Professor, Department of Commerce, Kurukshetra University Kurukshera, INDIA
ABSTRACT
Today marketers are facing the challenge of
understanding consumers purchasing behavior, which
become more complicated when consumers decide to
purchase publicly used products because final purchase
decision of such products is highly influenced by number of
factors. In the present paper an attempt has been made to
study the decision factors affecting consumers purchasing
behaviour for cell phone. Here specifically the influence of
reference group (informational influence, utilitarian
influence, and value-expressive influence) and product
attributes (new technology, design & appearance, lowest
price, and attractive call plan package) are examined. The
data is collected with the help of questionnaire based survey
from 730 respondents. The data, thus, generated has been
analyzed with the help of Descriptive Statistics and one way
ANOVA. The findings reveal that decision factors i.e.
reference group as well as product attributes have strong
influence on consumers purchasing behavior. However,
comparatively product attributes have strong impact than
reference group influence on consumers (students). These
findings will certainly make marketing managers not only
aware of decision factors influencing consumers purchasing
behavior for publicly used product but also to find out
innovative ways to promote these products.
Keywords: Decision factors, reference group influence,
product attributes, consumers purchasing behaviour,
purchase decision, publicly used products, cell phone.
I. INTRODUCTION
Consumers constantly make decisions regarding the
choice, purchase and use of product and services. These
decisions are of great importance not for only consumers
themselves, but also for marketers and policymakers.
These decisions are difficult as consumers are often faced
with a large number of alternatives, which are constantly
changing due to new technologies and competitive
pressures. Consumer decision process occurs as a result of
consumers seeking and evaluating available information to
make a purchase decision (Nowlis, 1995). Consumers rely
Available at: www.ijemr.net
Page Number: 303-309
upon selected information which can direct and help them
to choose among competing brands.
Consumers buyer behavior is influenced by
cultural factors (consumers culture, subculture and social
class), social factors (groups reference groups,
aspirational groups and member groups, family, roles and
status), personal factors (age and lifecycle stage,
occupation, economic circumstances), lifestyle (activities,
interests, opinions and demographics), personality and self
concept which explain why our preferences often change
as our `situation' changes and psychological factors
(motivation, perception, learning, beliefs and attitudes).
These factors cause consumers to develop product and
brand preferences. Although many of these factors cannot
be directly controlled by marketers, understanding of their
impact is necessary as marketing mix strategies can be
developed according to the preferences of the target
market (Kotler et al., 2000). In the present study, out of the
factors discussed above, reference group and product
attributes have been taken into consideration.
The reference group construct has supplanted the
notion of group membership as one that explains group
influence on individual behavior. A reference group is a
person or group of people that significantly influences an
individuals behavior. In the context of marketing,
reference groups have been regarded as important
determinants of buyer behavior, especially regarding
product selection (Bourne, 1957), brand evaluation and
choice (Witt, 1969 and Witt and Bruce, 1970, 1972), brand
loyalty (Stafford, 1971), and perceptions of product
quality. The groups with whom they interact directly or
indirectly influence their purchase decisions. A reference
group is any person or group that serves as a point of
comparison (or reference) for an individual in forming
either general or specific values, attitudes, or a specific
guide for behavior. References a person might use in
evaluating his or her own general or specific attitudes or
behavior vary. It helps marketers choose their
methodology to affect desired changes in consumer
behavior.
 Within this general framework, several types of
influences have been identified. Based on the work of
Deutsch & Gerard (1955) and Kelman (1961), information,
utilitarian and value expressive influences have been
identified (Park & Lessig, 1977). Informational influence
occurs when an individual uses the behaviour and views of
reference group members as potentially useful bits of
information (Hawkins et al., 2001). Consumers who use
informational reference group may keenly search for
information from opinion leaders or an expert or come to
some conclusion through observing the behavior of other
consumers (Loudon and Della Bitta, 2002).When a
consumer lacks the knowledge of certain products and the
experience of purchasing it, one may perceive the
information and recommendation from his/her reference
group as credible and thus accept them with certain
confidence. Utilitarian influence is reflected when an
individual fulfills group expectations to gain a straight
reward or to avoid a sanction (Hawkins et al., 2001). The
essence of this influence is the presence of reward or
sanction. Thus, a consumer learns to say or do the
expected thing in certain situations, not because he/she
II. LITERATURE REVIEW
likes it, but because it is instrumental in producing a
satisfying social effect (Louden and Della Bitta,
Marketers have generally accepted reference group
2002).Value Expressive Influence occurs when individuals
construct as an important factor in consumer decision
have internalized the group's values and norms (Hawkins
making. Far reaching influence of group was suggested by
et al., 2001) and relates to an individual's motive to
Cocanongher and Bruce (1971) who found that socially
enhance or support his self concept by associating himself
distance reference group can influence consumers if
with positive reference groups (Louden and DellaBitta,
consumers hold favorable attitudes toward the members or
2002). It is characterized by two different processes; first
activities of that group. Stafford (1966) found that
an individual may utilize reference group to express
individual brand choice was affected by group influence.
himself or boost his ego and secondly an individual may
The concept of group influence in consumer research has
just like the group and therefore accept its influence.
been further refined through studies of various aspects of
Product attributes also play a vital role in consumer
social influence process. Moschis (1976) found that
decision making. Besides above said influences a
consumers use both reflective and comparative appraisal in
consumer considers product design, its quality, price,
product choices. That is why, they engage in direct, verbal
technology, etc. and all these dimensions have a significant
interaction to determine the references group evaluation
position in consumer decision making. 15 years ago having
as well as observing the behavior of reference group
a mobile phone was considered a luxury, but now it is a
members in regard to decision under consideration.
very common commodity. This device has become an
Portraying products being consumed in socially pleasant
integral part of our life. Indian market has emerged as the
situations, the use of prominent/attractive people endorsing
second-largest market after China for mobile phone
products, and the use of obvious group members as
handsets. Mobile phones are far reaching the globe and
spokesperson in advertisements (Kotler, 1980) are well
leading to dramatically unprecedented change in the way
evidence that marketers and advertisers make substantial
people communicate (Friedrich et al., 2009 and Xinze,
use of potential reference group influence on consumer
2008). Such technology has made almost every body
behavior in the development of their communication. The
reachable (Marez et al. 2007). Today there is intense
pervasive use of spokespeople in products and service
competition in Indian mobile handset market. The present
endorsements reflects the widely held belief that individual
status of top 10 mobile handset players in India has been
who are admired or who belong to a group to which other
summarized in Table 1 (The Tribune August 21, 2003).
individuals aspire can exercise an influence on information
processing, attitude formation, and purchase behavior
(Bearden et al., 1989).
The original concept of reference group (Hyman,
1942) has been refined and clarified leading to distinctions
between comparative reference group which are used for
self appraisal and normative reference group which are
used as a source of personal norms, attitudes and values
(Kelley, 1947). The purchase decision of products such as
mobile phones, which are used publicly, is strongly
influenced by the consumers reference groups (Bearden &
Etzel, 1982 and Bourne, 1957). Therefore the influence of
reference group on individual behavior is often manifested
in the types of products and brands purchased by
individuals. Referents with high credibility, such as those
having presumed expertise, will often serve as source of
information-based influence for uncertain and uninformed
consumers, utilitarian influence will be reflected in
attempts to comply with wishes of a reference group to
avoid punishment or receive reward, while value
expressive influence will be reflected in the need for
psychological affiliation with the reference group (Deutsh
and Gerard, 1955).
Consumer value attributes since they are used as the
basis for evaluating a product. Attributes also offer the
benefits that consumers look for purchasing a product.
Product attributes provide a basis through which marketers
distinguish and set its product (brand) apart from that of
the competitors based on a specific attributes or often
several attributes or product benefits (Belch & Belch,
1995). Attributes are furthermore used by the marketer as
the basis for developing new products and for specific
positioning strategies. Product attribute performs a major
role in determining the brands that consumers will
consider and give serious attention when making a
purchase decision (Kotler, 2000, 2002). By understanding
accurately how consumer make purchase decisions and
what they value in products and services, companies can
work out optimum level of attributes that balance customer
value expectation as a benchmark for resources allocation,
costing and pricing decision (Oyatoye, 2011). Early
researchers views product attributes as the physical
properties of a product that were quantitatively and
objectively measurable (Wu et al., 1988). However, in
more recent years it has expanded to include all evaluative
criteria, including objective or physical properties i.e.
price, brand name or subjective criterias such as quality,
style, benefit or value (Grapetine, 1995 and Jamal &
Goode, 2001). Aaker (1991) adds that because most
product attributes provide consumer benefits, there is
usually a one-to-one comparison between brands. The
several previous studies also reported that extrinsic
attributes such as price (Batt & Dean, 2000; Halstead,
2002; and Hoffman, 2004) and country of origin (Keown
& Casey, 1995) are the most frequently used or most
important attributes when making purchasing decision.
III. RESEARCH PROBLEM
The decision making process that consumers go
through when choosing publicly used products like cell
phone is influenced by many factors. As the awareness
level of such products among consumers is too high,
therefore to influence them is not an easy job for
marketers. Today consumers are using not only traditional
means but also e- commerce to purchase publicly used
products and saving their time and money. Thus, thorough
study of such factors affecting consumers purchasing
behaviour is required. Previous researches indicate that
consumer purchasing decision is strongly influenced by the
social reference group (Bourne, 1957; Moschis, 1976;
Bearden & Etzel, 1982; Bachmann et al., 1993; Makgosa
& Mahube, 2007 and Jiaquin et al., 2007) and other factors
(Jiaquin et al., 2007). Some studies have been carried out
to see the influence of product attributes on consumer
purchasing behavior (Belch & Belch, 1995; Oyatoye,
2011; Grapetine, 1995; Jamal & Goode, 2001; Batt &
Dean, 2000; Halstead, 2002; and Hoffman, 2004).
However, all the factors taken in to the present study are
not considered in earlier studies. Moreover, the
respondents in the present study are students who are
considered as major consumers of cell phone. Therefore,
keeping in mind the gaps in earlier studies, huge scope of
mobile handset in Indian market and numerous factors
affecting consumer purchasing behavior for publicly used
products, the present study has been proposed.
IV. OBJECTIVE OF THE STUDY
The specific objective is to study the influence of
decision factors on consumer purchasing behavior for
publicly used product.
V. RESEARCH METHODOLOGY
The research design employed for the present
study is basically exploratory cum descriptive. The
primary data is collected with the help of questionnaire
based survey from 730 respondents i.e. students studying
in UG, PG and professional courses, from Haryana (353)
and National Capital Region (377). The questionnaire
(Table 2) consists of statements on reference group
influence i.e. informational influence (1-5), utilitarian
influence (6-9), and value expressive influence (10-14), a
scale developed by Park & Lessig (1977) and product
attributes viz. new technology, design & appearance,
lowest price, and attractive call plan package (Jiaqin et al.,
2007). The data, thus, generated has been analyzed with
the help of Descriptive Statistics and one way ANOVA.
The data was tested for reliability and Cronbachs Alpha
came to .66.

VI. DATA ANALYSIS AND RESULTS
A perusal of the Table 3 makes it amply clear that
three manifestations of reference group influences i.e.
informational influence, utilitarian influence, and value-
expressive influence score 3.38, 3.26, and 3.16
respectively indicating strong influence, as a mean score
more than 3 have been recognized as a strong influence.
Amongst reference group influence, informational
influence has been considered the most important factor
influencing purchasing of cell phones followed by
utilitarian and value expressive influence.
Consumers are highly influenced by the product
attributes as their mean scores are also greater than 3
(standard mean). Among product attributes new
technology and design & appearance (mean score >4) have
the strongest influence on purchasing behavior followed by
lowest price and attractive call plan package. It is also
clear that the mean score of product attributes are greater
than reference group influences indicating thereby that
product attributes are having strong influence than
reference group influence. Thus, it can be concluded that
students are going to consider reference group influences
and product attributes while purchasing the cell phones,
though influence of product attributes are more.
The summary of ANOVA reveals that among
reference group influences, the value expressive influence
is having significant F value (=14.055, df=1/728, p<.000).
The high mean value on this factor is accorded by the
students of Haryana highlighting that these students
consider value expressive influence more important than
the students of NCR. However, both categories of students
are giving equal consideration to informational influence
and utilitarian influence without any presumption.
The students of Haryana and NCR differ on
product attributes i.e. new technology, design &
appearance and attractive call plan package as reflected by
significant F ratios 11.099, 16.717, and 8.393 respectively.
High mean value of all these attributes depicts that the
students of Haryana are giving more importance to these
attributes than NCR while purchasing cell phones. Lowest
price is being considered equally important by all students
irrespective of region.
 To see the overall influence of reference group
and product attributes on purchasing of cell phone, the
scores of all related statements have been clubbed
respectively and analyzed. The Table 5 makes it amply
clear that the students are highly influenced by product
attributes and reference group influence as shown by their
respective mean scores which are more than 3 (standard
mean). High mean value of product attributes than
reference group influence indicates that product attributes
are considered comparatively more important than
reference group influence by the students while purchasing
cell phones.
As the number of variables in reference group
influence (14) and product attributes (4) are different.
Therefore to get the best result and substantiate the above
findings index value of these decision factors have been
calculated. As the analysis of different dimensions of
reference group influence and product attributes influence
is based on the raw scores. To estimate the levels of each
component and for inter component comparison it is
required to bring these mean raw scores at a common
level. Although standardization techniques are available in
the social sciences to convert raw score into standard
score, but for the sake of simple comparison and
contribution of each components of motivation an index is
prepared with the help of average scores. A standard
methodology is adopted as in the case of index numbers.
For illustration an index of 100 for all the
components means the contribution of all the dimension
indicators is equal on the consumer decision making for
purchasing mobile phones. A perusal of the above table 6
reveal that a highest index is for product attributes
(108.16) and the lowest is for reference group influence
(91.82). Thus, it can be inferred that consumer purchasing
behavior is more influenced by product attributes than
reference group influence.
The summary of ANOVA (Table 7) highlights
that the students differs on the two decision factors. The
significant F values on these two decision factors reveals
that students of Haryana are highly influenced by reference
group influence and product attributes as compared to
students of NCR. Therefore it is recommended that
marketers should consider this decision factors influence
on consumers while selling mobile phones.
VII. DISCUSSION
The findings of the present study reveal that reference
group has strong influence on consumers purchasing
behavior. Among these reference group influences
informational influence is most important followed by
utilitarian and value-expressive influence. These findings
are in consistent with the findings of Moschis (1976), Witt
and Bruce (1972), Lessig and Park (1978), and Bearden &
Etzel (1982) who found that consumer final purchasing
decision is influenced by reference group. Jiaqin et al.
(2007) who conducted a comparative study between
Chinese and American consumers also reported that cell
phone purchase decision is strongly influenced by social
reference group in these cultures. The result of ANOVA
highlight that there is no significant difference between the
students of Haryana and NCR as far as informational and
utilitarian influence is concerned but they differ on value-
expressive influence, wherein students of Haryana are
found highly influenced by value-expressive function of
reference group in comparison to NCR students.
Product attributes are also having strong influence on
purchasing of cell phones. Among these factors new
technology is having the strongest influence followed by
design & appearance, lowest price and most attractive call
plan package. These findings got support from Jiaqin et al.
(2007) who found that consumer purchasing behavior is
strongly influenced by product attributes. Belch & Belch
(1985), Wu et al. (1988), and Aaker (1991) also support
the findings of present study. According to Batt & Dean
(2000); Halstead (2002) and Hoffman (2004), price is the
most important attribute influencing purchasing decision.
The ANOVA results reveal that among product attributes,
there is a significant difference between the students of
Haryana and NCR. The students of Haryana are highly
influenced by new technology, design & appearance and
attractive call plan package in comparison to students of
NCR while purchasing mobile phone. However, both are
equally influenced by lowest price among relatively
similar products i.e. having similar functions.
To see the overall impact of reference group and
product attributes on consumers purchasing behavior, the
present findings divulge that product attributes have strong
impact than reference group influence on students. Index
value of these decision factors also substantiates the above
findings. A perusal of ANOVA result makes it amply clear
that students differ on decision factors influencing their
purchasing behavior. Here the students of Haryana are
found to be highly influenced by product attributes as well
as reference group as compared to students of NCR. The
above result reconfirms the common belief that while the
marketing effort can help a firm to sell its
products/services, to be competitive in todays
marketplace, a firm must be able to produce the best
available products/services with the best available
technology in terms of better design, high quality, and low
price. It must also be said that here it is not to suggest that
the theory and practice of those reference group influences
have no practical implications. In fact, while other factors
being equal i.e. no significant differences, the marketing
effort with the appropriate application of those reference
group influences certainly can help firms to better sell their
products/services.
VIII. CONCLUSION
Today cell phone (handset) industry is very
competitive, growing at a fast rate and offering numerous
options, however, pose a challenge for marketers to
influence consumer purchasing behaviour. In the present
study, product attributes and reference group influence
both have been considered the important decision factors
affecting consumer purchasing behavior, however,
comparatively product attributes have more influence than
reference group influence on purchasing of cell phones.
These findings will certainly make marketing managers
not only aware of decision factors influencing consumers
purchasing behavior for publicly used product but also to
find out innovative ways to promote these products.
REFERENCES
[1] Aaker, D. A. (1991), Managing brand equity:
Capitalizing on the value of a brand name, The Free Press,
New York.
[2] Bachmann, G., Roedder, J. and Rao, A. (1993),
Childrens susceptibility to peer group purchase
influence: An exploratory investigation, Advances in
Consumer research, Vol. 20 No. 1, pp. 463-468.
[3] Batt, P. J. and Dean, A. (2000), Factors influencing
the consumer's decision, The Australian and New Zealand
Wine Industry Journal, Vol. 15 No. 4, pp. 34-41.
[4] Bearden, W.O. and Etzel, M. J. (1982), Reference
group influence on product and brand purchase decisions,
Journal of Consumer Research, Vol. 9, pp. 83194.
[5] Bearden, William O, Richard G., Netemeyer and Jesse,
E. Teel (1989), Measurement of Consumer Susceptibility
to Interpersonal Influence, Journal of Consumer
Research, Vol. 15, pp. 473-481.
[6] Belch, G.E. and Belch, M.A. (1995), Introduction to
advertising and promotion. An integrated marketing
communication perspective, Third Edition. Irwin, Boston.
[7] Bourne, F. S. (1957), Group influence in marketing and
public relations, in Likert, R. and Hayes, S.P. (Eds.): Some
Applications of Behavioral Research, Basil, Switzerland:
UNESCO.
[8] Cocanongher, A. Benton and Grady, D. Bruce (1971),
Socially Distant Reference Groups and Consumers
Aspirations, Journal of Marketing Research, Vol. 8, pp.
379-381.
[9] Deustch, M., and Harold, B. Gerard (1955), A study
of normative and informational social influences upon
individual judgment, Journal of abnormal & Social
Psychology, Vol. 51, pp. 624-636.
[10] Friedrich, R., Grone, F., Holbling, K., and Peterson,
M. (2009), The March of Mobile Marketing: New
Chances for Consumer Companies, New Opportunities for
Mobile Operators, Journal of advertising research. Vol.
49 No. 1, pp. 54-61.
[11] Grapentine, T. (1995), Dimensions of an attribute,
Marketing Research, Vol. 7 No. 3, pp. 18-27.
[12] Halstead, L. (2002), How do consumers select wine?
Factors that affect the purchase decision making process in
the wine category, Paper presented at the Annual
Academy of Marketing, Nottingham.
[13] Hawkins, D.I., Best, R. J., and Coney, K.A. (2001),
Consumer Behaviour Building Marketing Strategy, Tata
McGraw Hill, New Delhi.
[14] Hoffman, C. A. (2004), When consumers buy wine,
what factors decide the final purchase?, Wine Industry
Journal, Vol. 19 No. 2, pp. 82-91.
[15] Hyman, Herbert H. (1942), The Psychology of
Status, Archives of Psychology, Vol. 269, pp. 94-102.
[16] Jamal, Ahmad and Mark, M.H. Goode (2001),
Consumers and brands: a study of the impact of self-
image congruence on brand preference and satisfaction,
Marketing Intelligence & Planning, Vol. 19 No. 7, pp.
482-492.
[17] Jiaqin, Yang, Xihao, He and Huei, Lee (2007),
Social Reference Group Influence on Mobile Phone
Purchasing Behaviour: A Cross-Nation Comparative
Study, International Journal of Mobile Communications,
Vol. 5 No. 3, pp. 319-338.
[18] Kelley, Harold H. (1947), Two Functions of
Reference Group, in Readings in Social Psychology, ed.
Guy, E. Swanson et al., Holt, Rinehart and Winston, New
York.
[19] Kelmen, Herbert, C. (1961), Processes of opinion
change, Public opinion Quarterly, Vol. 25 No. 1, pp. 57-
78.
[20] Keown, C., and Casey, M. (1995), Purchasing
behaviour in the Northern Ireland wine market, British
Food Journal, Vol. 97 No. 1, pp. 17-23.
[21] Kotler, P (2000), Marketing management, Pearson
Prentice Hall, New Delhi.
[22] Kotler, P (2002), Marketing management, 21C Upper
Saddle River, Pearson Education, Incorporation, Pearson
Prentice Hall, USA.
[23] Kotler, Philip (1980), Marketing Management:
Analysis, Planning, and Control, Englewood Clifs,
Prentice Hall, NJ.
[24] Lessig, V. P. and Park, C. W. (1978), Promotional
perspectives of reference group influence: advertising
implications, Journal of Advertising, Vol. 7 No. 2, pp.
4147.
[25] Loudon, D. L., and Della Bitta, A. J. (2002),
Consumer Behavior, 4thEdition, Tata McGraw Hill, New
Delhi.
[26] Makgosa, R. and Mohube, K. (2007), Peer influence
on young adults products purchase decisions, African
Journal of Business Management, Vol. 1 No. 3, pp. 64-71.
[27] Marez, L., Vyncke, P., Berte, K., Schuurman, D., and
Moor, K. (2007), Adopter segments, adoption
determinants and mobile marketing, Journal of Targeting,
Measurement and Analysis for Marketing, Vol. 16 No. 1,
pp. 7895.
[28] Moschis, G. P. (1976), Social comparison and
informal group influence, Journal of Marketing Research,
Vol. 13, pp. 237244.
[29] Nowlis, S.M. (1995), The effect of time pressure on
the choice between brands that differ in qulaity, price, and
product features, Marketing Letters, Vol. 6, pp. 287-296.
[30] Oyatoye, E.O. (2011), Advanced quantitative
research methods, Ph.D. Lecture Notes on Conjoint
Analysis, Department of Business Administration,
University of Lagos, Lagos.
[31] Park, C.W. and Lessig, V.P. (1977), Students and
housewives: differences in susceptibility to reference
group influence, Journal of Consumer Research, Vol. 4,
pp. 102110.
[32] Stafford, James E. (1966), Effects of Group
Influence on Consumer Brand Choice Preference, Journal
of Marketing Research, Vol. 3, pp. 68-75.
[33] Stafford, James E. (1971), Reference Theory as a
Conceptual Framework for Consumer Decisions, in
Marketing Models: Behavioral Science Applications, R.
Day and T. Ness, eds. Scranton, Intext Education, NJ.
[34] Witt, R. E., and Bruce, G. D. (1972). Group
influence and brand choice congruence, Journal of
Marketing Research, Vol. 9 No. 4, pp. 440443.
[35] Witt, Robert E. (1969), Informal Social Group
Influence on Consumer Brand Choice, Journal of
Marketing Research, Vol. 6, pp. 473 -476.
[36] Witt, Robert E., and Grady, D. Bruce (1970),
Purchase Decisions and Group Influence, Journal of
Marketing Research, Vol. 7, pp. 533-535.
[37] Witt, Robert E., and Grady D. Bruce (1972), Group
Influence and Brand Choice Congruence, Journal of
Marketing Research, Vol. 9, pp. 400-403.
[38] Wu, T. W., Day, R. L., and MacKay, D. B. (1988),
Consumer benefits versus product attributes: An
experimental test, Quarterly Journal of Business and
Economics, Vol. 27 No. 3, pp. 88-113.
[39] Xinze, L. (2008), Taking digital marketing mobile,
Telecom Asia, Vol. 19 No. 11, pp. 32-33.
Copyright 2011-14. Vandana Publications. All Rights Reserved.