CHAPTER 2

Review of Related Literature and Studies

Purchasing Decision

Need

Product

Understanding consumer behavior is crucial for the success of business

organizations. It involves studying how individuals or groups of customers make
decisions and engage in actions related to the selection, purchase, use, and disposal of
products or services in order to fulfill their needs and desires (Chand, n.d.). According
to different sources, consumer behavior can be defined as the actions, decision
processes, and physical activities that individuals undertake when evaluating,
acquiring, using, or disposing of goods and services (Engel, Blackwell, and Mansard;
Louden and Bitta; Perner, n.d.). A product can be defined as an item or service
available for purchase, existing in physical or virtual form. Products have a finite
lifespan, requiring eventual replacement, and undergo a life cycle that necessitates
reinvention. In the fast-moving consumer goods (FMCG) context, brands can be
revitalized, relaunched, or expanded to remain relevant to the target segment and
adapt to current trends while maintaining product continuity (The Economic Times,
2023). The consumer buying decision process comprises five stages: problem
recognition, information search, evaluation of alternatives, purchase decision, and
post-purchase behavior. A comprehensive model of product differentiation
encompasses key elements such as a diverse range of potential products, the
technology associated with each product, consumer preferences towards the available
products, and the concept of equilibrium (Eaton & Lipsey, 2005). The foundation for
sustainable competitive advantage lies in the integrity of products, which entails
excelling in performance, offering excellent value, and meeting customers'
expectations comprehensively, including tangible and intangible aspects like visual
appeal and tactile experience (Europe PMC, n.d.).

Source

Consumers can choose between rival brands and learn more about products
from a variety of informational sources. The independent variables emotional
response, environmental response to the brand, brand awareness, sensory stimulated
advertising, and the dependent variable consumer buying behavior all have a
substantial and positive link (Chukwu et al., 2019). Additionally, societal variables
have a big impact on how different generations shop online (Dhanapal et al., 2015).
Also, according to a number of studies, millennials rely more heavily than generation
X on internet information (Bejan et al., 2018). Consumers in Generation Z are
developing previously unheard-of shopping habits and preferences. Generation Z's
purchase decisions are influenced by their social media identities, peer and societal
influence, and expertise in computers (Kahawandala et al., 2020). Both sorts of social
influence that could have an impact on a consumer have a close association with
peers' knowledge and reliability. Apart from that, consumers' sharing of information
and emotional support among themselves greatly promotes social influence (Davidson
et al., 2019).

Price

Previous studies have shown that generational differences have an impact on

purchasing behavior in terms of price. The result of the study conducted by Al-
Salamin et al. (2015) entitled “Behavioral Measurement of Young Generation towards
Brand Products in Saudi Arabia: Al- Hassa Case Study” showed that the price of well-
known brand products affects the purchase process negatively. Although young
people are interested in purchasing brand products, their low income prevents them
from the buying process while they are considered as a major segmentation for brand
names. Another study by Kotler & Keller (2012) stated that price is the one element
of the marketing mix that produces revenue; the other elements produce costs. The
study also stated that purchase decisions are based on how consumers perceive prices
and what they consider the current actual price to be. Understanding how consumers
arrive at their perceptions of prices is an important marketing priority. Sata (2013)
stated that consumer value price followed by mobile phone features is the most
important variable among all and it also acted as a motivational force that influences
them to go for a mobile phone purchase decision.

Timing

According to the article "How each generation shops in 2023" by Maxwell

Eskiev. The generational buying patterns for clothing can vary, but here's a general
breakdown of when each generation tends to purchase their clothing needs.
Generation X typically buy their clothing needs as and when required, based on their
personal preferences, fashion trends, and budget. Generation X individuals are likely
to prioritize quality and durability when purchasing clothes. Generation Y, also
known as millennials tend to purchase clothing based on their personal style, current
fashion trends, and convenience. They are likely to be early adopters of online
shopping and may prefer a mix of in-store and online purchases. Generation Z, this
generation is often characterized by their strong connection to digital technology and
social media. Generation Z tends to buy clothing more frequently than previous
generations, influenced by fast-fashion trends and online shopping. They value
affordability, variety, and the ability to express their individuality through clothing.
It's important to note that these general trends may not apply to every individual
within each generation, as buying behaviors can be influenced by various factors such
as personal preferences, financial situations, cultural differences, and regional trends.
(Square Publication, 2017)

Generation

Generation X,Y and Z