RESEARCH APPROACH / BRS10203

RESEARCH APPROACH
BRS10203

ASSIGNMENT

SEMESTER: SEPTEMBER 2021

PREPRARED BY,

NAME MATRIX ID PROGRAM

TELAGAVETI A/P SOKALINGAM 2122020020012 DIM

PHANG JIA BOON 2122020020008 DIM

DARMMINI MARIMUTHU 2122020020037 DIM

DASVINI DEVI MOHAN 2122020020003 DIM

PUGALENTHY MOGON 2122020020057 DIM

PREPARED FOR,

MS SITI ZUBAIDAH

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TABLE OF CONTENT

NO. DESCRIPTION PAGES

LITERATURE REVIEW

1 3-9
1.1 Article 1-Consumer Purchase Behavior in Cellular Service Sector
of Pakistan

2 1.2 Article 2- A study on the customer behavior by service provider 10- 13

to offer product or service.

3 1.3 Article 3- consumer impulsive buying behaviour of services 14-16

sector in Jordan

4 Factors Influencing Consumer Behavior and Prospective Purchase 17-24

Decisions in a Dynamic Pricing Environment—An Exploratory Factor
Analysis Approach

5 The Consequences of Dysfunctional Customer Behavior 25-27

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Author(s) Zohaib Ahmad

Article Title Consumer Purchase Behavior in Cellular Service Sector of Pakistan

Journal Name IOSR Journal of Business and Management

Date MAY 2014 Volume 16 Issue 5 Pages 15

Database: Ahmad, Z. and Ahmad, J., 2014. Consumer Purchase Behavior in Cellular Service
Sector of Pakistan. IOSR Journal of Business and Management, [online] 16(5) [Accessed May
2014].

Literature Review Worksheet (One per Article)

What does this article examine? (brief summary)

This research study shows the most recent purchasing habits of people in Islamabad and
Rawalpindi in the cellular service sector, which has dominated Pakistan's commercial world in
recent years. Because shopping behaviour in any area of the world is based mostly on quality,
price, promotions, and social factors, this study focuses on these elements in order to better
understand and explain the causes for people's purchase behaviour in the cellular service
industry in Pakistan. People used to buy their first phone when they were 18, but that has
changed recently, and children as young as 14-15 own cell phones. Price and properties are
undoubtedly the most influential factors and motives that drive people to purchase a new
mobile phone, whereas price, audibility, and friends' mobile operators were the most important
factors in deciding which mobile operator to use (Pakola, Pietila, Svento, & Karjaluoto, 2001).
What is the purpose of this article?

This research focuses on the purchasing habits of people in Islamabad and Rawalpindi. Because of the
increased competitiveness and accessibility of mobile telecom operators, it is now necessary to analyse
and identify the elements that influence client buying behaviour. This will have a further impact on the
market share and long-term viability of specific mobile service providers, as well as providing them
with suggestions for improving their services. Quality, pricing, promotional activities, and social factors
such as the impact of friends and family are all considered in the study. Consumer behaviour, according
to Schiffman and Kanuk (2009), entails the search for, purchase of, use of, evaluation of, and disposal
of products and services that they believe will meet their needs and wants within their restricted means.
Consumers, without a doubt, have an important role in maintaining market dynamics. Henry Ford could
easily build the same colour automobile for nearly 10 years and there would still be a market for it since

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demand existed. The same cannot be true in today's modern day. This is due to shifting consumer
preferences and rising market rivalry. Understanding customer behaviour is now a fully developed field.
It differs depending on countries, sectors, civilizations, and even families. Hoyer and MacInnis (2009)
provide an excellent description of consumer behaviour in their book; it encompasses commodities,
services, activities, people, ideas, and experiences. The purchase behaviour of consumers varies and is
represented correspondingly, according to the study, from buying a required item like shampoo or soap
to buying a luxury good like a massage chair from the renowned brand Osim. the purchase behaviour
of consumers varies and is accordingly reflected. Members of the same family behave differently when
it comes to activities, commodities, experiences, and goods, among other things. The research of
consumer behaviour encompasses all processes that are engaged in the mental as well as physical
activities of people, groups, or organisations and are related to the acquisition, use, or even disposal of
products and services to meet demands (Hawkins, Mothersbaugh, & Mookerjee, 2010). There are three
sorts of research studies: exploratory, descriptive, and hypothesis testing. An exploratory investigation
is carried out when there hasn't been much research done on a certain scenario or condition. In contrast,
the ability to characterise the features of certain variables in the study is the focus of a descriptive study.
Hypothesis testing is used to explain specific correlations or to identify discrepancies between groups
or causes (Sekaran & Bougie, 2010). This research revolves around the effects of independent factors
on the dependent variable and is based on hypothesis testing. Due to the difficulty of assessing and
determining consumer behaviour, preferences, and choices, this study is being undertaken to discover
if quality, pricing, promotions, and social variables have an impact on consumer behaviour in Pakistan's
cellular service market.
Methodology – How does the author study the issue?

This study's research methodology is comparable to Paulrajan and Rajkumar's (2011). It has been
tweaked to fit the culture and the scope of the study. Because the goal of this study was to assess
consumer behaviour in Pakistan's cellular service sector, quantitative approach was used. Quantitative
methodology, according to Johnson and Christensen (2008), is concerned with the development and
testing of hypotheses, as well as the design of models and theories that explain behaviour. The goal of
this study was to test the hypothesis that certain characteristics influence customer purchasing
behaviour. A questionnaire was created in order to collect data.

The majority of the questions were derived from earlier research. The purchase behaviour of
consumers in the cellular service sector is influenced by a number of variables and dynamics. However,
just five factors were chosen to investigate and comprehend customer behaviour in Pakistan in relation
to cellular services. Quality, price, promotions, and social influences are among these variables.
Researchers conduct two sorts of investigations in the field of research: causal investigation and
correlational investigation. A causal research looks at the cause and effect of variables that may or may
not have a causal effect on the commission or omission of a specific activity.

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Correlational research, on the other hand, is concerned with the interconnections and relational
bonds that exist between the independent and dependent variables (Sekaran & Bougie, 2010). The latter
concept was used in this study to investigate the relational aspects between our chosen dependent
variable and independent variables in order to determine how they compel and drive each other to
increase and decrease. Minimal, moderate, and severe intervention in the internal environment of the
topic being investigated by the researcher are the broad tendencies in research conduct. For correlation
studies, when the researcher does not need to disturb the usual flow of work in the workplace, little
intervention is used. Moderate and excessive interferences, on the other hand, are used in cause and
effect studies where the researcher alters or regulates the regular work flow in the workplace in order
to determine the cause and effect of variables (Sekaran & Bougie, 2010).

This study had little interference because responders just had to fill out administere questionnaires,
and there was no need to modify the settings of a workplace or disturb the normal workflow. The
amount of accumulation of the data obtained is expressed by the unit of analysis (Sekaran & Bougie,
2010). Due to the nature of the study and issue, different research has distinct units of analysis.
Individuals, groups, dyads, organisations, divisions, industries, or nations might be the units of analysis.

Data is collected for this study from every person in Pakistan who has a mobile phone and has picked
a mobile provider. The data collection method was to floated 400 questionnaires while 263 responses
were collected with a response rate of 65%. Questionnaires were floated online as well as in different
educational institutions, different organizations, and were self-administered. Horizontal The
information was obtained just once, spanning several days and weeks. It is not a longitudinal study, but
rather a cross-sectional one. Instrument Development Development For this study, a questionnaire was
employed as a research tool. 40 questions, including demographics, were altered to reflect the unique
environmental components and characteristics of Pakistan's telecommunications industry. During pilot
testing, however, four questions were removed to improve the instrument's dependability. Five out of
ten.

The research utilised a Likert scale that ranged from highly agreed to strongly disagreed. Paulrajan
& Rajkumar (2011), Johnson & Sirikit (2002), Xihao, Yang & Lee (2007), and Choi & Kim (2007)
were used to develop the questions for each variable (2007). Calculation Demographics were gathered
using four criteria: age, gender, profession, and level of education. Quality was assessed using seven
criteria, pricing was assessed using four criteria, promotions were assessed using five criteria, and social
aspects were assessed using four criteria. Purchase behaviour, the dependent variable, was assessed
using six items.

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Findings/Results

One of the goals of this research was to figure out what factors influence customer buying behaviour
in the cellular service industry. These factors were discovered after a careful and in-depth examination
of the literature. Through literature, quality, price, promotions, and social aspects were carefully chosen.
In their research, Negi (2009) and Santish, Kumar, Naveen, & Jeevantham (2011) found that quality is
one of the most important variables influencing customer buying behaviour in Ethiopia and India. In a
research done in Bangladesh by Ashaduzzaman, Sohel Ahmed, and Khan (2011), pricing was shown
to be a significant predictor of incentive or demotivation for individuals to choose a certain mobile
service provider. Rajpurohit & Vasita (2011) stated in a previous study of Pakistan that cheap SMS
rates and varied packages were a major factor influencing the buying behaviour of Pakistani youth.
Similarly, one of the variables in this study was chosen after reviewing the literature on the impact of
social factors, such as the influence of friends and family on decision-making. According to a research
conducted in Ghania, West Africa, the effect of friends and family on purchasing decisions is larger
than the quality of mobile service providers' service (Dadzie & Mensah, 2011). In Singapore, consumers
are also heavily impacted and influenced by their friends and family members when choosing a mobile
service provider, according to Jung and Kau (2004). Another research conducted in Namibia found that
social variables are extremely important in predicting customer buying behaviour (Kaapand, 2012). As
a result, after examining and evaluating the relevant literature, the above-mentioned variables were
chosen and utilised for further evaluation in order to meet the study's goals.
The findings of the study also show that consumers' choice of cellular service provider is influenced
by the sort of career they pursue. According to our study, the majority of people who have chosen the
business profession utilise Mobilink and Warid. Only 6 Telenor customers and 4 Zong users were
among the 38 total respondents who chose business as their source of income. Mobilink, Warid, and
Ufone were the mobile service providers of 11 of the 38 total respondents who chose business as their
source of income. Students, on the other hand, favoured Ufone; out of 146 total respondents, 77 chose
Ufone as their mobile service provider.
Varied age groups have different perspectives on price. Consumers of Mobilink under the age of 18-
25 are dissatisfied with the call charges levied by Mobilink, but customers of Ufone in the same age
range are extremely happy with the call charges. Consumers of Warid and Telenor are similarly happy
with their call prices, however Zong customers are neither content nor unsatisfied. According to Rajput,
Kalhoro, and Wasif (2012), Pakistan consumers are less concerned with quality and prefer lower
pricing, which explains why Ufone customers are happier.
When it comes to promotions, word of mouth is a critical and powerful aspect that influences whether
a customer makes a good or negative purchasing choice. The findings reveal that individuals in the 18-
25 age range are less enthusiastic about Mobilink's ads and marketing efforts, but consumers of Ufone,
Telenor, Warid, and Zong are more enthusiastic about their advertisements and marketing activities.
This is not the case, however, with the 26-30 age bracket, who are mostly Mobilink business customers.
According to the findings, people talk favourably about Mobilinks advertising and promote favourable

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word of mouth about them. As a result, the findings of Jaktien, Susnien, and Narbutas (2008) are correct.
Advertisements are the driving reasons behind positive or negative purchasing behaviour among
Pakistan customers.
Because different cellular service providers compete fiercely to offer the best and cheapest SMS
packages, the findings of this study demonstrate how significant this aspect is for people of all ages
when selecting which mobile service provider to choose. Customers in the 18-25 age bracket, for
example, seem to agree that offers of SMS packages encourage them to use that service provider. Even
if SMS packages have a detrimental influence on the young, Shah, et al. (2012) claim that these
packages are one of the motivators for Pakistani youth to acquire a mobile service provider with
acceptable and reduced SMS package charges. On the other hand, most clients between the ages of 25
and 30 have little interest in purchasing SMS packages.
Even though SMS packages have a negative impact on the young, Shah, et al. (2012) argue that they
are one of the motivators for Pakistani youth to find a mobile service provider with reasonable SMS
package costs. Most consumers between the ages of 25 and 30 years old, on the other hand, show little
interest in acquiring SMS packages.
Furthermore, the findings show that when it comes to picking a mobile service provider, customers
are affected by their friends and family members, regardless of whether they are 18-25, 25-30, or older.
According to a study performed in Ghania by Dadzie and Mensah (2011), the majority of individuals
in Ghania prefer to get information from friends and relatives before choosing a mobile service
provider. It's also true in Namibia, where a research by Kaapand (2012) found that the majority of
Namibians use the same mobile service providers as their relatives and friends. H1: Purchase behaviour
is influenced by quality. The results of this study demonstrate that quality has a substantial influence
on buying behaviour, despite the fact that a prior study by Rajput, Kalhoro, and Wasif (2012) found
that quality had no significant effect on purchase behaviour and that consumers in Pakistan are more
concerned with price. H2: Price influences purchasing behaviour in a favourable way. Because price is
one of the most important and motivating elements in purchasing decisions in Pakistan, the findings of
this study demonstrate that price has a major influence on buying behaviour. Price was also one of the
most important variables and motivations or demotivations for choosing a certain mobile service
provider, according to Ashaduzzaman, Sohel Ahmed, and Khan (2011). H3: Promotions influence
purchasing behaviour in a good way. Promotions have a favourable influence on purchasing behaviour,
according to this study, since Pakistanis are drawn to any service provider's promotional efforts.
Promotions and word of mouth, according to Dadzie and Mensah (2011), are the most important
variables that influence purchasing behaviour. H4: Social variables influence buying behaviour in a
favourable way. The findings reveal that social elements are the most important factors that influence
buying behaviour positively. According to Kaapand (2012), social considerations have the greatest
influence on consumer purchasing decisions in Namibia.
According to the findings, persons between the ages of 18 and 25 have no expectations of service
quality, particularly in the cellular industry. Because of the influence of other variables such as pricing,

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promotions, and social factors, this is the case. The mobile service provider with the lowest call prices
and additional value-added services is preferred by the youth. Furthermore, promotions and marketing
efforts are more appealing to young people, who promote favourable word-of-mouth about their mobile
service provider. This results in a chain of impact, which is represented by the variable "social factors."
The data show that most individuals in Islamabad/Rawalpindi are affected by their friends and family
members when choosing a mobile service provider. As a result, social variables' Pearson correlation
coefficient has the highest positive association with purchasing behaviour.
As a result, a chain of consequences emerges, which is represented by the variable "social factors."
The research reveals that when it comes to picking a mobile service provider, most people in Islamabad
and Rawalpindi are influenced by their friends and family. As a consequence, the Pearson correlation
coefficient of social factors has the most positive relationship with purchasing behaviour.
What have you learnt?

In Pakistan, I learned about the connections between purchase behaviour and quality, price,
promotions, and societal variables. Except for one independent variable, quality, there is a positive and
significant link between all the independent factors and the dependent variables. Consumers of mobile
service providers are less concerned with quality and more concerned with affordable pricing, appealing
marketing, and, most importantly, the social influence on them. Consumers have been constrained by
societal and cultural limitations to the point that they are unconcerned about the quality of mobile
service providers' services. The most important driver of purchasing behaviour in Pakistan is social
variables, which essentially represent the society image of customers. They also prefer to purchase the
cellular connection that the majority of their friends and family use and over which they have control.
Consumers above the age of 26 are, on the other hand, less concerned about their appearance than those
under the age of 25. This is due to the fact that consumers between the ages of 18 and 25 are concerned
about their image and seek for a specific mobile service provider with whom they can form a bond.

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REFRENCES

Ackerberg, D. A. (1998). Advertising, Learning, and Consumer Choice in Experience Good Markets; A Structural Empiral
Examination. Missouri.

Ashaduzzaman , M., Sohel Ahmed, S. M., & Khan, M. M. (2011). CONSUMER CHOICE BEHAVIOR TOWARDS MOBILE
PHONE. Journal of Arts, Science & Commerce, 30-39.

Aydin, S., & Ozer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market.
European Journal of Marketing, 910-925.

Bowling, A. (2009). Research methods in health. Investigating health and health services. Buckinghamd: Open University Press.

Choi, S., & Kim, M. (2007). The effectiveness of "scratch and save" promotions. Journal of Product and Brand Management, 469-
472.

Dadzie, A., & Mensah, F. B. (2011). Brand Preference for Mobile Phone Operator Services in the Cape Coast Metropolis.
International Journal of Business and Management, 190-205.

Dhar, R. (1997). Consumer preference for a no-choice option. Journal of Consumer Research, 215-231.

Jakštienė, S., Susnienė, D., & Narbutas, V. (2008). The Psychological Impact of Advertising on the Customer Behavior.
Communications of the IBIMA, 50-55.

Johnson, B., & Christensen, L. (2008). Educational Research: Quantitative, Qualitative and Mixed Approaches. Los Angeles: Sage
Publications.

Johnson, W. C., & Sirikit, A. (2002). Service Quality in the Thai Telecommunication industry: a tool for achieving a sustainable
competitive advantage. Management Decision, 693-697.

Jung, K., & Kau, A. K. (2004). Culture‟s Influence on Consumer Behaviors: Differences Among Ethnic Groups in a Multiracial
Asian Country.

Kaapand, L. N. (2012). An Evaluation of Factors Determining the Selection of Mobile Telecommunications Service Providers in the
Northern Region of Namibia. 3rd International Conference on Business and Ecnomic Research (3rd ICBER 2012) Proceeding, (p.
23). Namibia.

Kausar, D., Qureshi, S., Shehzad, F. A., & Hasan, H. (2012). Factors Influencing the Customer‟s Satisfaction and Switching
Behavior in Cellular Services of Pakistan. Interdisciplinary Journal of Research in Business.

Khan, M. A. (2010). An Empirical Assessment of Service Quality of Cellular Mobile Telephone Operators in Pakistan. Asian Social
Science, 164-177.

Pakistan Telecommunication Authority . (2012). Annual Report.

Paulrajan, R., & Rajkumar, H. (2011). Service Quality and Customer Preference of Cellular Mobile Service Providers. Journal of
Technology Management and Innovation, 39-45.

Rajpurohit, P. R., & Vasita, D. M. (2011). Consumer Preferences and Satisfaction towards various Mobile Phone Service Providers.
Gurukul Business Review, 1-11.

Rajput, D. A., Kalhoro, S. H., & Wasif, R. (2012). Impact of Product Price and Quality on Consumer Buying Behavior: Evidence
from Pakistan. INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS, 485-496.

Santish, M., Kumar, K. S., Naveen, K. J., & Jeevantham, V. (2011). A Study of Consumer Switching Behavior in Cellular Service
Prodider; A study with reference to Chennai. Far East Journal of Psychology and Business, 71-81.

Sekaran, U., & Bougie, R. (2010). Research Mehtods for Business. New Delhi : Wiley India Ltd.

Sekaran, U., & Bougie, R. (2010). Research Methods for Business; A Skill Building Approach. New Delhi: John Wily & Sons, Ltd .

Shah, S. H., Waris, S., Aziz, J., Jaffri, A. R., Fatima, M., Ejaz, W., . . . Rehman, K. U. (2012). Cellular Services Packages and and
their impact on Social Values of Youth. Journal of Economics and Behavioral Studies, 204-210

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1.2 ARTICLE 1 - A study on the customer behavior by service provider to offer product or
service.

Author(s) J Hidayati* , L Ginting and H Nasution, (2015)

Article Title Customer behaviour for telecommunication service provider

Journal Name Journal of Physics: Conference Series

Date Feb 2015 Volume 6 Issue 4 Pages 10

Database: IOP Publishing (DOI:10.1088/1742-6596/1116/2/022015)

Literature Review Worksheet (One per Article)

What does this article examine? (brief summary)

According to J Hidayati, (2015), Learning customer behavior is one way to acquire customer. By
knowing customer behavior, company can know formulate product or service that offered. The result of this
paper show that brand, network and distribution have significant relation to customer preference while choose
service provider. Tariff, promotion and relation have not significant effect to customer behavior while choose
service provider. This paper to know customer behavior intention while choose telecommunication service
provider.

Initially, It is important to know about customer behavior by service provider to offer product or service.
There are many researches about customer behavior while choosing product or service. people in Thailand
choose service provider based on customer profile, product that is offered, and quality of service. Now days in
Indonesia, there are many company offer service of product telecommunication. To facing competition, service
provider must know who is their customer, how they decide, and what variable that influence the decision. The
competition also causes many products offering that makes competition tighter. This paper aims to know
customer prepaid behavior in Medan, Indonesia. Secondly, There are many factor influence customer perception.
The factors are external, internal, self-concept, and lifestyle. There are many factor influence customer
perception. The factors are external factor is about preference, learning, memory, motivation, personality,
emotion and behavior. Self-concept is about feeling about their self. Lifestyle is about how people buy, user,
feel it. Third, Changing customer behavior needs much investment than offer product according customer
behavior

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Therefore, company need to learn more about customer behavior. Which there are several variable there are
used in order to attract customer to buy service. The variable are how brand imag. Meanwhile, Distribution is an
activity to facilitate the consumer to get the services delivered. Choosing the right path will make it easier for
consumers to obtain existing services.
What is the purpose of this article?

The purpose of this article is to initially customer behavior in service. The result of this paper show that
brand, network and distribution have significant relation to customer preference while choose
service provider. Tariff, promotion and relation have not significant effect to customer
behavior while choose service provider. Which on this paper to know customer behavior intention while
choose telecommunication service provider.

Methodology – How does the author study the issue?

The authors use prospects researchers want to know how the influence of brands, tariffs, promotions,
networks, relationships and distribution in the selection of telecommunication products or services. In this
research, there are hypothesis test such as brand variables that compose brand are trust, satisfaction and
commitment. Brand trust is a sense of security felt by consumers in the interaction using the brand. Customer
satisfaction is defined as the fulfilment of customer expectations. A commitment is a desire to maintain
relationships in the long run. Secondly, Tariff prices in the world of telecommunications are better known as
tariffs. Tariff is the unit price of goods, services or charges imposed on goods services. In order, tariff in
telecommunication are divided tariff based on telephone, cellular, and internet. However, Telecommunication
tariff build by regulation, competition, and technology. Which tariff can be shown two models, average tariff
and flexible tariff. In addition, Flexible tariff means pay per used . Such as to interest customer, some provider
give discount. Thirdly, Promotion Marketing communications include advertising, salespeople, packaging and
others useful to introduce their products. Thus, Promotion can also be done by doing good public
relations .Promotion is one example of marketing communication. Which Promotions can be advertising, certain
events, or cooperation with certain parties, using brand ambassador.

Next, Network Variable. Network contains coverage, and quality. Coverage based on government is a
service area of STBS (Mobile Cellular Network) is the scope of services as per the permit of the organizer of
STBS (regional or national). Therefore, Network quality can be defined as the specific requirements provided
by the network to the user, which is necessary to achieve the required application functionality of service. Quality
network have three parameters such as, delay, voice quality and signal. Furthermore, Relation relations means
that if have similarities with the people around the operator while according to Confraria the similarity of

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operators with relations is very important. The influence of relationships is very important role in decision
making.

Moreover, Distribution. Distribution is one of marketing aspects. This activity aims to accelerate and
facilitate consumers’ goods and services from producers to consumers. The importance of selection of
distribution channels will make it easier for consumers to obtain products or services. In this
study researchers want to know how the distribution factor to the selection of telecommunications
services.

Findings/Results

The results shows that customer behavior in service Correlation test is used to know the relationship between
dependent variable that is buying behavior and independent variable that is brand, tariff, promotion, network,
relation and distribution. In the research conducted obtained coefficient value calculation. Correlation coefficient
value indicates strong or weak relationship between dependent and independent variables and the direction
of the relationship.

What have you learnt?

From this article, I have learnt that cellular operator companies need to conduct in depth research in
formulating marketing strategies to fit consumer behavior. So the company can achieve the market share. Variable that
have medium correlation to customer buying behavior are brand, promotion, network, relation and distribution. Meanwhile
tariff has low correlation to customer buying behavior. Changing tariff will only have low effect to customer buying
decision.

Last but not least, based on this study shows the variables that have significant relationship to consumer behavior in
choosing the service providers are brand, network, and distribution. Changes in brand image will
affect customer decisions. Brands that have a downward image, will make people reluctant to buy it.
Network have significant relation to customer decisions, if the network coverage and quality are reduced it will make
people have a downhill interest in the product. Moreover distribution has effect to
customer. The easiness of obtaining product/service will make the consumer prefer that product rather
than the hard earned.

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REFFRENCE

Ashaduzzaman M, Ahmed S, and Khan M, (2011), Journal of Arts Science and Commerce.

Sirikit A, (2000), Service Quality Customer Behavior Intentions and Customer Retention of
Telecommunication Services in Thailand Alignment and algebraically.

Kotler P, (1997), Marketing Management Analysis Planning Implementation and Control.

Edition.

Dwivedi, Chouldrie and Brinkman W, (2006), Industrial Management and Data Systems Journals.

Srinuan P, Srinuan C, Bohlin E, (2014), Telecommunications Policy Elsevier

Panuwatwanich K, Stewart R A, Sherif M, (2008), Construction and Architectural

Management Emerald Group Publishing.

Giovanis and Athanasopoulou, (2017) Journal of Retailing and Consumer Services Elsevier

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Author(s) Mahmoud Algizzawi, Mohamad Alghzawi

Article Title Consumer impulsive buying behavior of service sector in Jordan

Journal Name JournalNX- A multidisciplinary Peer Reviewed Journal

Date July 2020 Volume Volume 6 Issue 7 Pages 227-237

page
Database: ISSN No: 2581 - 4230

Literature Review Worksheet (One per Article)

What does this article examine? (brief summary)

The telecommunications sector in Jordan shows a very competitive experience between active
companies in the local state and they also looking for the satisfaction of the needs and demand of the
potential customer in order to compete with other telecommunications companies for the benefit which
able them to keep their position in providing the services by organizations and repurchase by the
customer. At the same time is to compete with the benefits that allow them to protect their place
regarding to the service provided by the telecom companies and buying behavior of customer. Hence,
telecom companies should focus on the factors that may affect the buying behavior of the service such
as age and life expectancy that have the serious and positive affect o customer emotional buying
behavior.

Nowadays, there are various factors that influence the biggest emotional customer buying
behavior for companies in promoting their product and services and following by competitive between
telco’s companies in Jordan. The most challenging in overcome the competitive issues that influence
the factor of emotional customer buying behavior in order for companies to promote the product and
services is by identify the psychological, economic, social and privacy of customer situation for the
overall. Besides, this study also to determine the difference of the personal characteristic that also may
influence the emotional customer buying behavior which the characteristics are age, education level,
jobs, lifestyle and personality traits and also promotion package, environment and employees behavior
in an organizations.

What is the purpose of this article?

• To identify the relationship between the factors that influencing customer emotional buying
behavior
• To focus on telecommunications companies on certain personal factor that bring problem to
customer
• To focus on how to achieve and gain customer satisfactions for the telecommunication service
provided by organizations
• To differentiate the telecommunication service provided in Jordan
• To provide services that are consistent with related customer recommendation regarding to the
customer emotional buying behavior.
• To determine the influence of different personal and company factors on customer buying
behavior
• To provide the solution to telco companies in increasing the sales, create brand loyalty to make
the customer satisfied

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Methodology – How does the author study the issue?

Consumer are the main recognition for the advertising, marketing and to the companies in
developing the business and management. In other words, we can said that the consumer is the main
factor that can affect to product and service marketing. In this case, the value of the service will have
the difference from the certain products and will be more to for consumer and service providers.

In 2015, stated by Kumar and Ghodeswar, revealed that the companies have the limited cost to
identify the consumer behavior characteristics, consumer needs and the services expect by consumer
as well with the their financial status. This is the important reason to empower the consumer to buy the
product that suits with their standards. No matter how, the emotions of consumer buying behavior
decisions should ne empower by determine consumer needs, demand and the consumer status especially
for the consumer who are the person loyal with brands. In my opinion, the decision can be immediately
made by consumer in order to meet their needs and standards.

The overview of the emotion customer buying behavior is the most important in a company such
as telecom companies, which carried out by the marketing management and this can be done to
achieving the targets. In examine the dynamics and mechanisms of the emotion consumer buying
behavior is beneficial to a business organization. Because this able to help them in improve their
company products and services. Furthermore, this also may help the company to create the consumer
satisfaction and at the same time it also help in increasing the sales and able the company to achieve
the profits target. Moreover, the company can search for the unique marketing prospects by searching
the consumers dissatisfaction and the potential needs by the consumers, in order to ensure growth and
development as a study of consumers personal factors.

The revealed stated by Awan and Abbas in 2015, stated that the review of the emotion of
consumer buying behavior provide in helping the institutions to formulate a price basis that suitable
since the institutions can help in make consumer feel satisfied with the product and services provided.
Hence, it is also important to know the emotion of consumer buying behavior in the point of view from
the institutions to keep the consumer emotion buying behavior for the judgement. In additions, the
institutions also provide in developing and improving the services to the consumer. By improving the
shop efficiency and promoting the shop, environment and developing employees skills able to help in
achieving the fast response of the changes that needed by the consumer.

An overview that done in 2013 by Duarte, Raposo and Ferraz, stated that in ensuring the factors
that influence of the buying behavior also able to help the institution in improve their shop by knowing
the location that have potential customer to buy the product and services, and at the same time also this
may help them distributes their plans. The companies can value the marketing performance by identify
the consumer buying behavior. Emotion buying is known as a buying decision without any planning or
buying something without early plans. The revealed that state by Burman and Agrwal, 2015, said that
the buying behavior of the consumer can be seen anywhere and the emotion of consumer buying
behavior is happened every day.
‘Findings/Results

This research is to identify the relationship between the emotion of consumer buying behavior
and the shop settings and the environment. The finding shows that the shop environment is the positive
match up with the consumer buying emotion motivations to have the fast buying and also keep the shop
environment and consumer buying decision is related with the locations. Hence, the goals in order to
identify the personal factor such as time provided, families and the financial as well with the shop
environment, promotion, and the friendly staff.

Based on the results survey which involves among 422 participants. The result shows that some
customer buying behavior is depends on the shop environment, different personal factors, includes
products choices, time, age and family supports, which this are affecting on the consumer buying
behavior by the respondents. The results also show the most powerful and important effect of the
personal factors on the consumer emotion buying behavior. In addition, the result also stated that the
buying techniques also influenced by the marketing process of the organizations and advertisers.
However, the results also shown that the sex and age also able to affect the consumer buying behavior
15
 RESEARCH APPROACH / BRS10203

and other factors such as income, education and etc. the increase of technologies which mean the
communication and information social networks also effect the emotion of consumer buying behavior
in telco service. From the survey of 180 respondents, it revealed that offline and online have the same
effect.

Lastly, by knowing the consumer behavior and the selections, search and value process of the
product and service that assume that satisfied consumer needs, it able the marketing department of the
company to collect the useful information for company, that able to help in developing the strategy in
changing the market with the targets in achieving the competitiveness, and take the opportunity to
maintain or enter in the new market.
What have you learnt?

From this research, I have learnt on how to identify the customer buying behavior by their buying
decision making on what the product and services that they want to buy, they need, they find or they
expect from the company, service or an organization. In identify the customer buying behavior, we can
learn to identify it from the groups, surveys, marketing tracks and the sales history of the company or
an organization that provide products and services that able to fulfill or meet the customer satisfaction
with the services provided. Last but not least, we as customer have to plan our buying purpose and the
product that useful for us to avoid the unwanted buying emotion behavior in ourselves which will bring
negative effect in marketing and business management.

Reference

Alghizzawi, M., & Alghzawi, M. (n.d.). Consumer Impulsive Buying Behavior of Services Sector
In Jordan.

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 RESEARCH APPROACH / BRS10203

Author(s) Vijay Victor 1,* , Jose Joy Thoppan 2 , Robert Jeyakumar Nathan 3 and
Fekete Farkas Maria 4
Article Title Factors Influencing Consumer Behavior and Prospective Purchase
Decisions in a Dynamic Pricing Environment—An Exploratory Factor
Analysis Approach
Journal Name Journal of social sciences
7 September 6 7 14
Date 2017
Volume Issue Pages
Database: 2018 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access
article distributed under the terms and conditions of the Creative Commons Attribution (CC BY)
license (http://creativecommons.org/licenses/by/4.0/).

Literature Review Worksheet ( One per article )

What does this article examine? (brief summary)

This study investigates the factors that influence consumer behavior, and their prospective online
purchase decisions in a dynamic pricing context, through an exploratory factor analysis approach.
A primary research survey was conducted, and 178 samples were finalized for data analysis
through a series of web surveys completed by respondents in India. This study identifies, measures
and classifies 27 research items into variables, namely shopping experience, privacy concerns,
awareness about dynamic pricing, buying strategy, fair price perceptions, reprisal intentions and
intentions for self-protection. These seven factors could be used to explain consumer behavior in a
dynamic pricing situation.

What is the purpose of this article?

The rapid advancements in information and communication technology during the third industrial
revolution of the late 20th century has marked the beginning of a new era in the retail sector with the
introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing
all areas of online business by bringing in novel opportunities and possibilities. Despite the progress
in technology, the determination of correct pricing on online selling platforms still remains a very
complex task. The adoption of big data technology has enabled online sellers to make real-time price
changes of high magnitude and proximity. However, with increasing awareness among buyers
regarding modern pricing strategies, it is necessary to examine probable changes in consumer
behavior when exposed to dynamic pricing scenarios.

Methodology – How does the author study the issue?

Industry 4.0 has transformed ordinary machines into intelligent systems, sensing and collecting
necessary inputs required by themselves without human interventions, thereby improving the overall
performance in a much more efficient manner. Industry 4.0 has made real-time data monitoring
possible, enabling sellers to make price and output variations in accordance with changes in a wide
range of factors (Vaidya et al. 2018). Dynamic pricing with the aid of big data is an efficient pricing
strategy, facilitating variation in price mooted by complex algorithms.

In the past few decades, dynamic pricing has become a very common pricing strategy in many
industries. It is considered a profitable strategy for airlines, hotels, cruises and rental cars, etc.
(Kimes 2002; Duman and Mattila 2003; Sahay 2007). Not only does this pricing strategy offer huge
profits, but it also helps to manage shortages in supply and in reallocating demand to the most
suitable time periods (Sahay 2007). Dynamic pricing has become more common with the prevalence
of internet marketing driven by big data analytics. It is an individual-level price discrimination
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 RESEARCH APPROACH / BRS10203

strategy in which the prices differ based on customer, location, product or time (Kotler and
Armstrong 2010). Dynamic pricing is commonly defined as the buying and selling of goods where
prices adjust freely in accordance with the demand and supply at the individual transaction level.
Retailers, especially eTailers, have the potential to use the latest available information to form the
best prices for consumers.

Until the 1960s, the economic models and thoughts on consumer behavior relied on the assumption
of rationality. It was assumed that consumers were always rational in their purchases and therefore
bought products which gave them maximum satisfaction (Le and Liaw 2017). The economic,
sociological, psycho-analytic and learning models developed prior to 1979 show that consumers
exhibited a conservative behavioral pattern in buying products (Kahneman and Thale 2006). The
period of global economic crisis in 2008 resulted in consumer behavior tending towards a defensive
one as they bought fewer products than they usually did (Le and Liaw 2017). The popularity of
online marketing gave way to internet of things to play a bigger role in purchase decisions, as people
began using the internet to order products and compare prices and features of products they were
interested in. The modern customer has a wide range of products to choose from, further
complicating the decision-making process and consumer behavior (Trifu and Ivan 2014).

The dynamic pricing strategy has been adopted by sellers with an intention to maximize their
revenue with the aid of big data. Many business to consumer (B2C) and business to business (B2B)
companies in the E-commerce sector have already adopted the dynamic pricing strategy
(Elmaghraby and Keskinocak 2003). It is relatively easy to apply the dynamic pricing strategy in E-
commerce due to the ease of access to consumer data. Using big data analytics techniques, it is
possible to more accurately segment consumers into much smaller units, enabling online sellers to
provide tailor-made advertisements and prices for each customer. It is also possible to vary prices for
every sale offer (Kung et al. 2002). From the theoretical aspect of the transaction cost theory in E-
commerce (Devaraj et al. 2002; Williamson 1979), online firms that use data analytics for products
and price recommendations have benefited greatly by improving the market transaction cost
efficiency, managerial transaction cost efficiency, and time cost efficiency. The most modern
technology, which uses cookies and clickstream data, etc., allows sellers to make real-time price
changes at minimum cost by analyzing the customer traffic, customer demographics, and preference
data, etc. (Elmaghraby and Keskinocak 2003; Mak et al. 2018).

The aspiration for successful and agile business plans promoted business intelligence, which was
mooted by the internet of things and big data within the organizations. This enabled businesses to
obtain useful customer information, thereby allowing for efficient decisions through identification of
opportunities and threats, particularly by keeping an eye on customers, suppliers and competitors in
real-time (Olszak and Zurada 2015; Oláh et al. 2018). One of the most important developments
which evolved with the application of big data analytics was that customers became actively
involved in the pricing decisions in the online market. Advanced search engines, web crawlers,
shopbots and novel E-commerce models, and group buying, etc., provide customers with
opportunities to be a part of the price determination process (Kung et al. 2002).

Consumer behavior has been a major subject of market research since the beginning of the 21st
century. Studies have mainly focused on the behavior and attitudes of consumers towards different
brands, offers, sellers and business strategies (Mokrysz 2016). Deksnyte and Lydeka (2012) discuss
the factors which form a proper dynamic pricing strategy. The research points out customer behavior
and characteristics, fair prices, market structure, product demand, and perception of product value as
some of the most important factors which help in forming the right prices. One of the most important
concerns of the consumers with regard to dynamic pricing is their price fairness perception (Kimes
2002; Sahay 2007). The perceived price fairness primarily depends on the amount of information
that sellers unveil to the buyers (Choi and Mattila 2009).

A number of studies have reported consumer dissatisfaction due to high magnitude and rapid
proximity of price changes, which leads to the spreading of negative information, buying from
competitors or engaging in other actions which deteriorate the reputation of sellers (Dai 2010).
Research has shown that increased revenues obtained from the dynamic pricing strategy will prevail
only in the short run if a consumer cannot perceive a difference in the service received, as the

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consumer will view the situation as unfair (Kimes 2002). Hence, despite the potential gain from
dynamic pricing, if consumer sentiments are not well understood and taken care of, the dynamic
pricing strategy could have an adverse effect for an online firm.

After reviewing previous literature that attempted to study some facets of consumer behavior in an
online purchase environment, several research items were adapted for measurement in this study.
Firstly, Le and Liaw (2017) paper on big data and its impact on consumer behavior employed items
such as user’s ability to find useful information from the website, as well as their perception on how
their privacy is safeguarded. For this research, several new, self-developed items were also refined
in regards to online shopping experience and privacy concern measures, which were thought to
better capture these constructs. Altogether, six items were adapted or newly developed in an attempt
to measure consumers’ online shopping experience and privacy concerns in a dynamic pricing
environment.

Dai (2010) research, on the other hand, offered several measures for price fairness perception,
reprisal intentions and self-protection intentions. In total, 12 items were adapted and self-developed
to measure consumers’ price fairness perception, reprisal intention and self-protection intention, for
testing in this research.

This study also introduces nine new items to supplement some of the above items and to measure
consumers’ awareness about dynamic pricing and their online buying strategies in a dynamic pricing
environment.

Findings/Results

Bartlett’s sphericity test was applied to check whether the correlation matrix was an identity matrix.
The p value for the Bartlett test was below 0.05, confirming that the data frame under consideration
was not an identity matrix. The Kaiser-Meyer-Olkin (KMO) test of sample adequacy was conducted
to check whether the sample collected was adequate. Hair et al. (2010) suggests that if the KMO
value is greater than 0.6 and Bartlett’s test of sphericity is significant, then factorability of the
correlation matrix can be assumed; which, in other words, means the dataset is suitable for factor
analysis. The value of KMO was found to be 0.67, which indicated that the dataset could be used for
factor analysis.

With a valid Bartlett and KMO test score, we were able to proceed with the exploratory factor
analysis. A wide range of methods are available for conducting a factor analysis, including the
“maximum likelihood”, “minimum residual”, “principal axis”, “weighted least squares”, and
“generalized weighted least squares”, etc. For this study, the principal axis method was used. This
method is very similar to the principal component analysis, with pre-specified priors consisting of a
matrix of squared multiple correlations among variables. The principal axis method is one of the
most commonly used methods for exploratory factor analysis (Tabachnick and Fidell 2001;
Thompson 2004; Henson and Roberts 2006).

A parallel analysis was conducted to identify the number of items to be retained. The parallel
analysis results suggested seven factors should be retained, and thus we proceeded with the factor
analysis using seven factors. The rotation method used in this study was varimax. The ordinary least
squares method (OLS) was used, with the factoring function fm = “minres”. OLS method provides
results using the ’maximum likelihood method’, which does not assume multivariate normal
distribution and finds the results through an iterative eigen decomposition, such as a principal axis.
The output table showing factor loadings is given below in Table 2

Table 2 shows the loadings of items on different factors. As per the parallel analysis results, the
number of factors to be included for the analysis was seven, namely shopping experience (SE),
buying strategy (BS), privacy concerns (PC), awareness about dynamic pricing (DP), fair price
perceptions (FP), reprisal intentions (RI), and intentions for self-protection (SP). In Table 2, the
number shown within the parenthesis indicates the serial number of the item, while the three-digit
alphanumeric code indicates the acronym of the seven constructs, with the first two characters
identifying the construct and the last digit identifying the item number within the construct. The

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items that were retained after the EFA with their respective construct names are attached in
Appendix A as Table A1.

The items with insignificant loadings were eliminated in the first place, and only 21 out of 27 items
were retained for further analysis. Items named SE2(2), FP2(8), SP1(15), SP2(16), RI1(11) and
RI4(14) were removed. The cumulative variance observed was 0.51, which means that the seven
factors explain 51% of the variance in the subject. For the factors MR3 and MR7, only two items
were loaded. Raubenheimer (2004) suggests that if the scale uses only one factor, a minimum of four
items should be loaded while scales with more than one factor identified with as little as two items
are considered acceptable, in accordance with the type of the study conducted. In this study, the
loadings of the factors MR3 and MR7 were high enough, which was important as these two factors
pertained to the items concerning the reactions of consumers after the purchase, which were quite
different from the rest of the items. Table 3 given below shows the residual test results.

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 RESEARCH APPROACH / BRS10203

The root mean squares of residuals (RMSR) value of 0.03 was in the range of acceptance as this
value is close to zero. The root mean square index was 0.024, showing a good model fit as the value
is well below 0.05. The Tucker–Lewis index (TLI) here was 1.00, while the cut off for TLI is 0.9.
The factors shopping experience (MR3), buying strategy (MR4), privacy concerns (MR2),
awareness about dynamic pricing (MR6), fair price perceptions (MR5), reprisal intentions (MR1),
and intentions for self-protection (MR7) all had significant loadings

The factor MR3, named as shopping experience, explained 18% of the total variance. The items
loaded to this factor were related to the usability of the shopping websites, usefulness of the search
results and product recommendations provided by the shopping websites. This finding is in line with
previous web usability research findings that highlighted the importance of web usability in
determining user satisfaction (Nathan and Yeow 2009, 2011). The factor loadings for the items in
MR3 ranged from 0.78 to 0.85.

The factor MR4, named as buying strategy, explained 16% of the total variance. The items loaded
on this factor were related to the probable strategies that might be taken by the consumers after
being exposed to a dynamic pricing scenario. Tracking the prices before purchase, using software to
track prices and advising friends and family to track before purchase were the items loaded on this
factor. The factor loadings ranged between 0.54 and 0.76.

The factor MR2, named as privacy concerns, explained 16% of the total variance. The items loaded
were related to the concerns regarding the usage of personal information by the companies for
personalized product recommendations (0.65) and prices (0.63), and fear that personal information
including payment methods will be stolen (0.59) and may attract the attention of cyber criminals
(0.60).

The items loaded on factor MR6, named as awareness about dynamic pricing, included awareness of
customers about website cookies which collect personal information (0.70), awareness about using
the collected data for product recommendations (0.73) and price changes (0.44). This factor
explained 14% of the total variance. All item loadings were above threshold, and hence none were
removed after the EFA. The factor MR5, named as fair price perceptions, explained 13% of the total
variance. This factor included items probing the attitude of people regarding the fairness of price
they paid, if the price was justified and their satisfaction with the price they paid. Here, the factor
loadings ranged between 0.46 and 0.75

The factor MR1, named as reprisal intentions, explained 12% of the total variance. The items loaded
to this factor were related to the intentions of people to take revenge against the seller, including
complaining via posting on social media (0.48) and buying from the competitors (0.98). The item on
tendency to say negative things about the online retailers to others had very low factor loading, and
hence it was removed after the EFA. This is probably because users are more online savvy these
days and complaining online via social media is more natural for them to show their reprisal of an
online vendor

The last factor MR7, named as intentions for self-protection, explained 11% of the total variance.
The items loaded were related to the measures taken by the respondents to protect themselves from
high fluctuations in prices. The items probed the desire of consumers to buy again from the same
seller after being exposed to a dynamic pricing scenario (0.75), and their intention to stop purchase
from the seller thereafter (0.55). Items with low loadings that were removed after the EFA included
the measure of user intention to buy less—or stop buying altogether—from the online retailer.
Interestingly, these items did not achieve the loading threshold, which indicates that users do not
altogether shun an online seller due to a single previous price fluctuation experience.

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 RESEARCH APPROACH / BRS10203

Internal Consistency and Reliability of the Model

Internal consistency checks the correlation within the items in an instrument, and shows how well
the given items fit to a conceptual model (Nunnally and Bernstein 1994; Devon et al. 2007).
Cronbach’s alpha is one of the most commonly used methods to test the reliability and internal
consistency of the test items (Trochim and Donnelly 2006). Nunnally and Bernstein (1994) suggest
that if there are two or more subscales in an instrument, Cronbach’s alpha should be calculated for
the individual subscales, as well as the entire scale as a whole. The psy package in R includes the
Cronbach’s alpha test. Table 4 gives the Cronbach’s alpha for all 21 test items.

The raw alpha for the 21 items measured here was 0.73, which is satisfactory. This confirms the
internal consistency and reliability of the model. According to Nunnally (1978), the minimum level
of reliability for a model depends on how the model is being used. Lance et al. (2006) suggests that
the requirement of having a Cronbach’s alpha value above 0.70 for every measurement scale is an
urban legend. The Cronbach’s alpha for the subscales identified were all above 0.70, except MR3
(reprisal intentions), which had an alpha score of 0.68. Many researchers support the value of
Cronbach’s alpha ranging between 0.65 and 0.70 as acceptable. The Cronbach’s alpha values for the
subscales are given in Table 5.

What have you learnt?

I identified, measured and classified various online dynamic pricing environment measures into
seven factors which could influence consumer behavior and prospective purchase decisions in a
dynamic pricing situation. The results of the exploratory factor analysis identified shopping
experience, awareness about dynamic pricing, privacy concerns, buying strategy, fair price
perceptions, reprisal intentions and self-protection intentions as factors which could have a
significant influence on consumer behavior and their prospective purchase decisions.

This study, in agreement with previous studies, points out that dynamic pricing decisions must be
made carefully by figuring out their impact on consumer reactions. The results of this study, which
pertain to an Indian population, also have implications for global players in the E-commerce sector.
Sellers are keenly observing developments in the online business industry in rapidly growing
economies like India and China. The Indian economy, driven mainly by young people, has already
become a favorite destination for global players, such as Amazon and Walmart, etc. The Indian eTail
marketplace has attained a critical mass, with a couple of large, established home-grown and foreign

22
 RESEARCH APPROACH / BRS10203

players further developing this market. With greater focus on digital India, this makes the Indian
marketplace a very attractive place for more global players to enter.

With very high growth trajectory, there is a need for increased understanding of customer behavior
and their reaction to dynamic pricing, in order to better address their privacy concerns, improve their
perception of online pricing as not being deceitful, and increase their awareness of the positives of
dynamic pricing as a win-win for both the buyer and seller. This will help to address reprisal
attitudes and self-protection measures, such as completely avoiding the online channel or spreading
negative comments, which could be very detrimental to the brand or the medium as a whole.

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References

Choi, Sunmee, and Anna S. Mattila. 2009. Perceived fairness of price differences across channels: The
moderating
role of price frame and norm perceptions. Journal of Marketing Theory and Practice 17: 37–48. [CrossRef]
Cox, Jennifer Lyn. 2001. Can differential prices be fair? Journal of Product and Brand Management 10:
264–75.
Dai, Bo. 2010. The Impact of Perceived Price Fairness of Dynamic Pricing on Customer Satisfaction and
Behavioral
Intentions: The Moderating Role of Customer Loyalty. Auburn: Auburn University.
Deksnyte, Indre, and Zigmas Lydeka. 2012. Dynamic Pricing and Its Forming Factors. International Journal
of
Business and Social Science 3: 213–20.
Devaraj, Sarv, Ming Fan, and Rajiv Kohli. 2002. Antecedents of B2C channel satisfaction and preference:
validating
ecommerce metrics. Information Systems Research 13: 316–33. [CrossRef]
Devon, Holli A., Michelle E. Block, Patricia Moyle-Wright, Diane M. Ernst, Susan J. Hayden, Deborah J.
Lazzara,

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Author(s)
Lloyd C. Harris

Article Title The Consequences of Dysfunctional Customer Behavior

Journal Name JournalNX- A multidisciplinary Peer Reviewed Journal

Date NOV 2003 Volume VOLUME 6 Issue 2 Pages 144-161

page
Database: ISSN No: 2581 - 4230

Literature Review Worksheet (One per Article)

What does this article examine? (brief summary)

Christopher Lovelock (1994) coined the term jaycustomers to refer to dysfunctional customers who deliberately or
unintentionally disrupt service in a manner that negatively affects the organization or other customers. However, to date,
no study has explicitly focused on the consequences of such dysfunctional customer behavior. The aim of this article is to
advance understanding of the effects of dysfunctional customer actions through concentrating on exploring and
describing the consequences of such behavior for those involved in service encounters. In this regard, this study is
designed both to respond to recent calls for further research into these issues and to fill this gap in extant knowledge. A
review of the literature regarding dysfunctional customer behavior finds limited attention devoted to the effects of such
behavior. To explore the nature and dynamics of dysfunctional customer behavior, field research was conducted and
extant theory evaluated leading to the development of a propositional inventory and a framework of the effects of such
behavior. Briefly, dysfunctional customer behavior was found to have consequences for customer-contact employees,
customers, and organizations.

What is the purpose of this article?

It is important to point out the limited number of countries where research on dysfunctional customer behavior has been
developed and the fact that most of these countries differ from the Brazilian environment, which is on the one hand a
limitation, but on the other a research gap. As a suggestion, future research should perform a deeper exploration of the
possible integration between the visions of frontline employees and managers and strategic executives to potentially
decrease dysfunctional customer behavior or mitigate its effects. With the expansion of theoretical argumentation about the
dysfunctional customer behavior represented by the theoretical propositions and the conceptual model, it is expected that
the present study will inspire other researchers to form hypotheses from the propositions and test the model, offering
empirical validity for the relationships in question.
Methodology – How does the author study the issue?

From the recognition that, in addition to employees, customers also present unwanted behaviors (FISK et al.,
2010), the academic literature goes as far as to say that dysfunctional behavior is taken as the rule rather than
the exception in services, given the frequency of deviant behavior and the severity of the impacts generated for
employees and companies (ECHEVERRI; SALOMONSON; ABERG, 2012; FISK et al., 2010; HARRIS; DAUNT,
2013).There are several definitions and terms used for this type of customer behavior. One is dysfunctional
behavior, which refers to customer actions that disrupt service encounters, intentionally or unintentionally, overtly
or covertly, proposed by Harris and Reynolds (2004). Furthermore, literature has categorized the types,
motivators, inhibitors and approaches for analyzing dysfunctional customer behavior, as reported by Fisk et al.
(2010).Researchers in this area have reported on the effects of dysfunctional behavior on frontline employees,
their managers, the customer themselves and the organization, possibly affecting performance measures

25
 RESEARCH APPROACH / BRS10203

indirectly (BITNER; BOOMS; MOHR, 1994; ECHEVERRI; SALOMONSON; ABERG, 2012; FISK et al., 2010;
HARRIS; DAUNT, 2013).Contradictions within the service environment motivate the belief that the promotion of
customer orientation as the main focus of the company's activities (NARVER; SLATER, 1990) contributes to the
promotion of the consumer sovereignty myth in service settings where production and consumption overlap and
are mediated by the interaction with the frontline employee (KORCZYNSKI; OTT, 2004). When the consumer
sovereignty myth makes room for the contradictions between what is propagated by the culture of consumer
orientation and the limitations of the offer or service, disillusionment can lead to anger and dysfunctional
customer behavior (KORCZYNSKI; EVANS, 2013, KORCZYNSKI, OTT, 2004). Theory suggests that the
promotion of customer orientation may be related to the behavior of customers in the environment (FELLESON;
SALOMONSON; ABERG, 2013; LAM; KRAUS; AHEARNE, 2010)

.
‘Findings/Results

This research is to identify the relationship between the emotion of consumer buying behavior and the
shop settings and the environment. The finding shows that the shop environment is the positive match up with
the consumer buying emotion motivations to have the fast buying and also keep the shop environment and
consumer buying decision is related with the locations. Hence, the goals in order to identify the personal factor
such as time provided, families and the financial as well with the shop environment, promotion, and the friendly
staff.

Based on the results survey which involves among 422 participants. The result shows that some customer
buying behavior is depends on the shop environment, different personal factors, includes products choices, time,
age and family supports, which this are affecting on the consumer buying behavior by the respondents. The
results also show the most powerful and important effect of the personal factors on the consumer emotion buying
behavior. In addition, the result also stated that the buying techniques also influenced by the marketing process
of the organizations and advertisers. However, the results also shown that the sex and age also able to affect the
consumer buying behavior and other factors such as income, education and etc. the increase of technologies
which mean the communication and information social networks also effect the emotion of consumer buying
behavior in telco service. From the survey of 180 respondents, it revealed that offline and online have the same
effect.

Lastly, by knowing the consumer behavior and the selections, search and value process of the product and
service that assume that satisfied consumer needs, it able the marketing department of the company to collect
the useful information for company, that able to help in developing the strategy in changing the market with
the targets in achieving the competitiveness, and take the opportunity to maintain or enter in the new market.
What have you learnt?

From this research, I have learnt on how to identify the customer buying behavior by their buying decision
making on what the product and services that they want to buy, they need, they find or they expect from the
company, service or an organization. In identify the customer buying behavior, we can learn to identify it from
the groups, surveys, marketing tracks and the sales history of the company or an organization that provide
products and services that able to fulfill or meet the customer satisfaction with the services provided. Last but
not least, we as customer have to plan our buying purpose and the product that useful for us to avoid the
unwanted buying emotion behavior in ourselves which will bring negative effect in marketing and business
management.

Reference

26
 RESEARCH APPROACH / BRS10203

ARGYRIS, C.; SCHÖN, D. Organizational Learning II: theory, method, and practice. Reading/Mass;
Addison–Wesley, [s.l.], 1996.

BITNER, M. J.; BOOMS, B. H.; MOHR, L. A. Critical Service Encounters: The Employee’s Viewpoint.
Journal of Marketing, [s.l.], v. 58, n. 4, p. 95–106, 1994.

BUNDERSON, J.S.; SUTCLIFFE, K.M. Management team learning orientation and business unit
performance. Journal of Applied Psychology, [s.l.], v. 88, n. 3, p.552–560, 2003.

CELUCH, K.G., KASOUF, C.J.; PERUVEMBA, V. The effects of perceived market and learning orientation
on assessed organizational capabilities. Industrial Marketing Management, [s.l.], v. 31, n. 6, pp.545–
554, 2002.

DAUNT, K. L.; HARRIS, L. C. Motives of dysfunctional customer behavior: an empirical study. Journal of
Services Marketing, [s.l.], v. 26, n. 4, p. 293–308, 2012.

ECHEVERRI, P.; SALOMONSON, N.; ABERG, A. Dealing with customer misbehavior: Employees’ tactics,
practical and implicit knowledge. Marketing Theory, [s.l.], v. 12, n. 4, p. 427–449, 9 dez. 2012.

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Rubric

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 RESEARCH APPROACH / BRS10203

Criteria Rating Score

4 3 2 1
Articles: Articles Are Articles are Articles are Articles are
Relevancy & highly relevant relevant to the somehow relevant somehow
Details to the topic. All topic. Most of to the topic. Some relevant to the /20
the details have the details have of the details have topic but not all
been sufficiently been provided. been provided. the details have
provided. been provided.
Summary & A sufficient A sufficient Summary was No adequate
Purpose summary of the summary of the provided but not summary and no
Article has been Article has been adequate. Purpose clear purpose
written. Purpose written but the is not so clear /20
was identified. purpose was not
clearly
identified.

Methodology Important Some important Some but not Few details

details were details were adequate details were provided /20
provided provided were provided

Findings Well-explained explained Explained but not Not adequately

clear explained /20

Personal Excellent Good Satisfactory unsatisfactory

/20
Reflection

Total Points /100

28