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Notre Dame University
Faculty of Business Administration
Department of Management & Marketing




Term Paper:


                        Daily Diary of Purchase




Presented to:
Dr. Joyce Mnessa
Presented by:
Naja Faysal




Course:
Consumer Behavior (MRK 311)

-Fall 2005-
Introduction:

        The results of the Daily Diary used by the two individuals: Riva Khattar and Roy

Habib, shows a significant insight on their Purchase Behavior. These results are

summarized in the table and charts above, and they obviously show differences in their

Purchase Behavior habits as well as they show some similarities. In the coming

paragraphs you will see a detailed analysis of the results; the Purchase Behavior of how

individuals in the same society can differ and which attributes interfere their behavior.

We will also discuss frequency of purchase, time of purchase, payment mode, frequency

of planned vs. unplanned purchase, reliance on impulse purchases, extent of individual

decision making, and level of satisfaction after purchase. We will also recognize how

studying Consumer Behavior can be a critical issue for the success of any business.

Overview on the study

        Riva and Roy are two samples of the society; they are randomly selected so they

are not wide representative. Therefore, we cannot generalize the results among the whole

society. But, we can take an overall view of their Purchase Behavior and analyzing

attributes related, that interferes in their behavior for example: social class, life style,

financial situation (purchase power) etc…

Overview on the samples:

        Riva is an NDU student, aged between 18 & 25 years old, living in her parent’s

House in Awkar, she is from a relatively high social class with a high income. Her life

style gives her the buying decisions yet, her friends, family, and others may trigger her

Purchase Behavior.
Roy on the other side is another NDU student with the same age category; living in a

rented apartment in Zouk Mosbeh, he is also from a relatively medium to high social

class family with a moderate income. His life style is extremely different than Riva since

he lives alone, his family is abroad, he is responsible for himself and for the apartment he

lives in. He has different buying triggers.

Mode of Payment

       Although the differences in life styles, Riva and Roy have many similarities in

their Purchase Behavior; they both use the Lebanese Pounds more than US Dollars; Riva

spends 60% of her total spending amount using the Lebanese pounds and Roy Spend

83.6% of his total spending amount using the Lebanese pounds (we subtract the Rental

Fees since they are on a monthly basis). They also pay cash more than barter or any other

mode of payment, and this applies to a big part of the Lebanese society; Riva only uses

cash as her mode of payment. Roy uses his master card for 13% of his payments. Using

other modes of payment like credit cards is still the new trend, and it is increasing day

after day. Credit cards have become a part of the lifestyle; in this case Roy is more

knowledgeable of the benefits of owning a credit card.

Time of Day

       Another significant similarity between Riva and Roy is their time of purchase

each day; where they both have very similar results. Riva buys 81.25% of her total

buying in the afternoon (pm) and Roy buys 60.86% of his buying in the afternoon (pm)

as well. This is also a significant attribute showing that the purchase time of university

students that are in the same category of Riva and Roy is mostly in the afternoon and
businesses that serves this target segment should take this attribute into consideration and

make the stores stay open until really late afternoon.

Day of Week

       Riva and Roy both purchase under the trigger of need recognition. So they don’t

have a specific day in the week to buy. They just act when they have an unsatisfied need.

In the above table you can see that Riva has done the maximum buying decision on

Thursday and Roy on Wednesday, and of course neither Riva nor Roy have planned to

make these decisions on a specific day of the week. In contrast they react on their need

recognition trigger and they make their buying decisions accordingly. We don’t disregard

that some individuals may choose a day in the weekend for example to shop, but in the

regular week of university there is no such thing as a ‘shopping’ day.

Maslow’s Hierarchy of Needs

       We also should focus on the types of goods and services purchased. In this case

we have to refer to Maslow’s Hierarchy of Needs which categorizes the needs into 5

categories: Physiological needs, safety needs, social needs, esteem needs, and self

actualization needs. By observation of the goods and services purchased by Riva and Roy

we can see the following:

   •   Riva’s physiological needs (food, water, sleep) are being provided for by her

       family, where Roy is living alone; he has to pay for his food, water, and sleep. For

       Roy, he buys his food and water mostly from near mini-markets and restaurants

       (ex: Mini Market Joseph and Moulin D’or) and he buys his sleeping needs

       through renting.
•   Safety needs for both Riva and Roy are provided for by the government. There

    might be additional security expenditures for both Riva and Roy but in this

    specific week additional security was not evident.

•   The social needs are mainly satisfied by hanging out with friends, lovers, etc… in

    Riva’s case, her outings this week were Crepaway and she also hung out with

    friends to do some shopping. This life style attribute has an influence on her

    purchase decisions where her companionships can widely shape her decisions.

    Her Social needs have also shaped her behavior when she bought flowers for her

    friend.

•   We also see Roy’s outings are quite different; the table shows that he can hang

    out to a near restaurant (Moulin D’or) as well as life style restaurants (Crepaway).

    He also likes to watch movies (Espace) and clubbing (Lila’s). His friend’s

    birthday (companionship) influenced his Purchase Behavior.

•   Esteem needs contributed tremendously on Riva’s purchase decisions; she spent

    on dressing outlets (Bershka, Sport et Loisirs, Quava, Mango, Skin Bijousc) and

    hair and nails care outlets (Coiffure Joseph Saad, Salon Harout and Rami) these

    representing 62.9% of all her week’s spending. This means that her self respect

    and prestigious needs are very important and it shapes 62.9% of her purchase

    decisions. Esteem for Roy is different; during this week, the table doesn’t show

    any self respect or prestigious purchase decisions. For sure esteem needs exists in

    his life but as we observe, the level of esteem needs is much lower than that for

    Riva.
•   Self actualization needs that affect the purchase behavior of Riva and Roy doesn’t

       exist in our study, and this is logical since neither Riva nor Roy are in the suitable

       period of their lives to achieve and satisfy the self actualization needs.

Geographical attribute

       Geographically, both Riva and Roy buy from near-home retailers. They know that

they might find a better price and more variety in special stores and shopping malls but

they sacrifice variety and price to save time, this is another significant point on their

buying habits and their life styles.



Frequency of Purchase

       In this study, Riva and Roy are asked to fill a daily diary of every single purchase

they make. After tabulating the data we found that Riva has made 32 purchase decisions

and Roy made 23 decisions. It’s obvious that Riva has made more purchase decisions

than Roy and thus spending more resources to satisfy her needs. By the end of the week

Riva spent 1,312,500 L.L. and Roy spent 444,000 L.L.. Riva’s frequency of purchase in

this week is 4.57purchases/day, where Roy’s frequency of purchase is 3.2purchases/day.



Planned vs. Impulse Purchase

       The table shows that Riva has made 22 planned purchase decisions and 10

impulse purchase decisions with a percentage of 31.25% of purchases were unplanned.

Where Roy has made 13 planned purchases and 10 impulse purchases with a percentage

of 43.4% of his purchases were unplanned. This is significant because we can conclude

from these percentages that Riva has more willingness to buy than Roy and she plans to
buy goods and services more than Roy. Where in turn, his impulse purchase decisions

contribute to a bigger percentage than those of Riva; thus, he is not willing to buy 43% of

the goods and services he already bought. These impulse purchases contribute to a big

percentage of the whole amount spent during the 1 week. It is interesting to know how

Roy spent 43.4% of his total spending without the intention of buying the goods and

services. In the next paragraphs you will see an important attribute that causes individuals

to buy goods and services without planning.



Influence on Purchase

       Riva’s 53.1% of her purchase decisions took place with someone with her at

purchase time, and only 25% of the whole actually influenced her purchase. According to

the study, Roy is influenced a lot more by people with him during purchase time. 39.1%

of his purchase decisions took place with someone else present and 30% of the whole

actually influenced his purchase. Thus, Roy buys less than Riva with people with him

during purchase time but he is influenced more than Riva by people with him during

purchase time.



Level of Satisfaction

       The Daily Diary shows that both Riva and Roy, most of the time, have post-

purchase satisfaction and this is due to the nature of their buying. They both didn’t take

too high risks in their buying, they were mostly buying items they have already tried

before, or they have tried the outlet and became loyal.
The study also shows that planned purchase has a more positive feeling after satisfaction

than impulse purchase. Where 90% of the negative feeling is caused after purchase, for

Roy, it was because of unplanned purchases and influences by other people.



Conclusion

       Each and every day, all of us are confronted with a myriad of consumer behavior

issues. Whether you are deciding which television show to watch, driving by billboard

advertisements, listening to the radio, or serving the internet, you are interfacing with

topics of relevance to the study of consumer behavior.

       This study is a small sample of what is called consumer Research, which is

essential in all businesses. It has proven an important role in determining the success of

all businesses; you have to know who the consumer is that you want to serve. What are

psychological, demographical, and geographical characteristics? What are his motives

that shape his buying behavior? These are a great importance to business. In this exercise

we learnt about our buying habits and how they are influenced. We also learnt the

frequency of our purchase, the mode of payment, our planned vs. unplanned purchases

etc… and it was interesting.

       In conclusion, studying consumer behavior helps you not only to be a marketing

professional but also to be a smarter consumer.

It can also affect many areas of your life.

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NDU Term Paper | Marketing - Consumer Behavior

  • 1. Notre Dame University Faculty of Business Administration Department of Management & Marketing Term Paper: Daily Diary of Purchase Presented to: Dr. Joyce Mnessa Presented by: Naja Faysal Course: Consumer Behavior (MRK 311) -Fall 2005-
  • 2. Introduction: The results of the Daily Diary used by the two individuals: Riva Khattar and Roy Habib, shows a significant insight on their Purchase Behavior. These results are summarized in the table and charts above, and they obviously show differences in their Purchase Behavior habits as well as they show some similarities. In the coming paragraphs you will see a detailed analysis of the results; the Purchase Behavior of how individuals in the same society can differ and which attributes interfere their behavior. We will also discuss frequency of purchase, time of purchase, payment mode, frequency of planned vs. unplanned purchase, reliance on impulse purchases, extent of individual decision making, and level of satisfaction after purchase. We will also recognize how studying Consumer Behavior can be a critical issue for the success of any business. Overview on the study Riva and Roy are two samples of the society; they are randomly selected so they are not wide representative. Therefore, we cannot generalize the results among the whole society. But, we can take an overall view of their Purchase Behavior and analyzing attributes related, that interferes in their behavior for example: social class, life style, financial situation (purchase power) etc… Overview on the samples: Riva is an NDU student, aged between 18 & 25 years old, living in her parent’s House in Awkar, she is from a relatively high social class with a high income. Her life style gives her the buying decisions yet, her friends, family, and others may trigger her Purchase Behavior.
  • 3. Roy on the other side is another NDU student with the same age category; living in a rented apartment in Zouk Mosbeh, he is also from a relatively medium to high social class family with a moderate income. His life style is extremely different than Riva since he lives alone, his family is abroad, he is responsible for himself and for the apartment he lives in. He has different buying triggers. Mode of Payment Although the differences in life styles, Riva and Roy have many similarities in their Purchase Behavior; they both use the Lebanese Pounds more than US Dollars; Riva spends 60% of her total spending amount using the Lebanese pounds and Roy Spend 83.6% of his total spending amount using the Lebanese pounds (we subtract the Rental Fees since they are on a monthly basis). They also pay cash more than barter or any other mode of payment, and this applies to a big part of the Lebanese society; Riva only uses cash as her mode of payment. Roy uses his master card for 13% of his payments. Using other modes of payment like credit cards is still the new trend, and it is increasing day after day. Credit cards have become a part of the lifestyle; in this case Roy is more knowledgeable of the benefits of owning a credit card. Time of Day Another significant similarity between Riva and Roy is their time of purchase each day; where they both have very similar results. Riva buys 81.25% of her total buying in the afternoon (pm) and Roy buys 60.86% of his buying in the afternoon (pm) as well. This is also a significant attribute showing that the purchase time of university students that are in the same category of Riva and Roy is mostly in the afternoon and
  • 4. businesses that serves this target segment should take this attribute into consideration and make the stores stay open until really late afternoon. Day of Week Riva and Roy both purchase under the trigger of need recognition. So they don’t have a specific day in the week to buy. They just act when they have an unsatisfied need. In the above table you can see that Riva has done the maximum buying decision on Thursday and Roy on Wednesday, and of course neither Riva nor Roy have planned to make these decisions on a specific day of the week. In contrast they react on their need recognition trigger and they make their buying decisions accordingly. We don’t disregard that some individuals may choose a day in the weekend for example to shop, but in the regular week of university there is no such thing as a ‘shopping’ day. Maslow’s Hierarchy of Needs We also should focus on the types of goods and services purchased. In this case we have to refer to Maslow’s Hierarchy of Needs which categorizes the needs into 5 categories: Physiological needs, safety needs, social needs, esteem needs, and self actualization needs. By observation of the goods and services purchased by Riva and Roy we can see the following: • Riva’s physiological needs (food, water, sleep) are being provided for by her family, where Roy is living alone; he has to pay for his food, water, and sleep. For Roy, he buys his food and water mostly from near mini-markets and restaurants (ex: Mini Market Joseph and Moulin D’or) and he buys his sleeping needs through renting.
  • 5. Safety needs for both Riva and Roy are provided for by the government. There might be additional security expenditures for both Riva and Roy but in this specific week additional security was not evident. • The social needs are mainly satisfied by hanging out with friends, lovers, etc… in Riva’s case, her outings this week were Crepaway and she also hung out with friends to do some shopping. This life style attribute has an influence on her purchase decisions where her companionships can widely shape her decisions. Her Social needs have also shaped her behavior when she bought flowers for her friend. • We also see Roy’s outings are quite different; the table shows that he can hang out to a near restaurant (Moulin D’or) as well as life style restaurants (Crepaway). He also likes to watch movies (Espace) and clubbing (Lila’s). His friend’s birthday (companionship) influenced his Purchase Behavior. • Esteem needs contributed tremendously on Riva’s purchase decisions; she spent on dressing outlets (Bershka, Sport et Loisirs, Quava, Mango, Skin Bijousc) and hair and nails care outlets (Coiffure Joseph Saad, Salon Harout and Rami) these representing 62.9% of all her week’s spending. This means that her self respect and prestigious needs are very important and it shapes 62.9% of her purchase decisions. Esteem for Roy is different; during this week, the table doesn’t show any self respect or prestigious purchase decisions. For sure esteem needs exists in his life but as we observe, the level of esteem needs is much lower than that for Riva.
  • 6. Self actualization needs that affect the purchase behavior of Riva and Roy doesn’t exist in our study, and this is logical since neither Riva nor Roy are in the suitable period of their lives to achieve and satisfy the self actualization needs. Geographical attribute Geographically, both Riva and Roy buy from near-home retailers. They know that they might find a better price and more variety in special stores and shopping malls but they sacrifice variety and price to save time, this is another significant point on their buying habits and their life styles. Frequency of Purchase In this study, Riva and Roy are asked to fill a daily diary of every single purchase they make. After tabulating the data we found that Riva has made 32 purchase decisions and Roy made 23 decisions. It’s obvious that Riva has made more purchase decisions than Roy and thus spending more resources to satisfy her needs. By the end of the week Riva spent 1,312,500 L.L. and Roy spent 444,000 L.L.. Riva’s frequency of purchase in this week is 4.57purchases/day, where Roy’s frequency of purchase is 3.2purchases/day. Planned vs. Impulse Purchase The table shows that Riva has made 22 planned purchase decisions and 10 impulse purchase decisions with a percentage of 31.25% of purchases were unplanned. Where Roy has made 13 planned purchases and 10 impulse purchases with a percentage of 43.4% of his purchases were unplanned. This is significant because we can conclude from these percentages that Riva has more willingness to buy than Roy and she plans to
  • 7. buy goods and services more than Roy. Where in turn, his impulse purchase decisions contribute to a bigger percentage than those of Riva; thus, he is not willing to buy 43% of the goods and services he already bought. These impulse purchases contribute to a big percentage of the whole amount spent during the 1 week. It is interesting to know how Roy spent 43.4% of his total spending without the intention of buying the goods and services. In the next paragraphs you will see an important attribute that causes individuals to buy goods and services without planning. Influence on Purchase Riva’s 53.1% of her purchase decisions took place with someone with her at purchase time, and only 25% of the whole actually influenced her purchase. According to the study, Roy is influenced a lot more by people with him during purchase time. 39.1% of his purchase decisions took place with someone else present and 30% of the whole actually influenced his purchase. Thus, Roy buys less than Riva with people with him during purchase time but he is influenced more than Riva by people with him during purchase time. Level of Satisfaction The Daily Diary shows that both Riva and Roy, most of the time, have post- purchase satisfaction and this is due to the nature of their buying. They both didn’t take too high risks in their buying, they were mostly buying items they have already tried before, or they have tried the outlet and became loyal.
  • 8. The study also shows that planned purchase has a more positive feeling after satisfaction than impulse purchase. Where 90% of the negative feeling is caused after purchase, for Roy, it was because of unplanned purchases and influences by other people. Conclusion Each and every day, all of us are confronted with a myriad of consumer behavior issues. Whether you are deciding which television show to watch, driving by billboard advertisements, listening to the radio, or serving the internet, you are interfacing with topics of relevance to the study of consumer behavior. This study is a small sample of what is called consumer Research, which is essential in all businesses. It has proven an important role in determining the success of all businesses; you have to know who the consumer is that you want to serve. What are psychological, demographical, and geographical characteristics? What are his motives that shape his buying behavior? These are a great importance to business. In this exercise we learnt about our buying habits and how they are influenced. We also learnt the frequency of our purchase, the mode of payment, our planned vs. unplanned purchases etc… and it was interesting. In conclusion, studying consumer behavior helps you not only to be a marketing professional but also to be a smarter consumer. It can also affect many areas of your life.