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Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the review of Related Literature and Studies which will give additional information and support the topic under study. Kotler (2003) declared that marketers should identify who makes and has inputs into the buying decisions so they may understand consumer buying decisions. People can be initiators, influencers, deciders, buyers or users. He said that different marketing campaigns might be targeted to reach different type of person. Kotler mentioned the buying decision that people can be initiator wherein the role of initiator is a person who first suggests the idea of buying the product or service. Influencer, a person who view or advice influences ones decision and the decider, is a person who decides in any component of a buying decision- whether to buy, what to buy, how to buy and where to buy. Buyer, the person who makes the actual purchase or user is a person who consumes or uses the product or services. Etzel (2004) cited that consumers do not engage in the five steps purchase decision process. Instead, they minimize one or more steps depending on the level of involvement they has in a particular purchase depend on personal, social and economic consequence of that purchase. Etzel cited that in order for the consumers to deal with the marketing environment and make purchases they undergo in five set decision process. First, need recognition by which a consumer is moved to do some action by needs or desire. Second is identification of alternatives in which they identifies products and brands and collects information about them. Third, they would weights the pros and cons of the alternative then fourth; they would make a decision whether to buy or not to buy a product. Lastly, is the post purchase behavior in which consumers seeks assurance that the choice they made was a correct one. According to him process is not always followed step by step because consumers often withdraw at any stage when the desire to buy a product diminish or they cannot get satisfaction on using a product. Geron (2003) claimed that the Filipinos have the highest acceptance on imported goods among Asia consumers. Filipino consumers are very conscious, familiar and aware of brands, trends and innovation in foreign products and the Filipino consumers are influence by acquired taste of foreign products. It’s the result of colonial mentality that the product coming from other country seems more durable and better compare to the one made from our own country. Because if one Filipino buy foreign products they take it as a symbol or it can add to the satisfaction they get in buying. And also nowadays because of International trade products from the world seems to be in hand Geron added. Boyd et al, (2002) asserted that consumers buy goods and services to solve unsatisfied needs and wants. They select particular brands or deals with a specific supplier because they perceive them to offer desirable benefits and superior value. The study of Boyd tells about the consumers purchase to solve unsatisfied needs and wants, wherein high involvement occurs to the consumer of the product when it satisfies their needs and wants. A consumer level of involvement with a particular purchase depends on the needs to be satisfied and the resources available. And then the consumers select particular brand or deals with a specific supplier because they perceive them to offer desirable benefits, according to study of Boyd the consumers choose a brand of a product that can give a benefits. For instance; carnival cruise line they serve, an interesting itinerary, great food, attentive service, romantic atmosphere and programs for the kids. Moreover, Underhill (1999) conferred that buying process begins when customers recognized an unsatisfied needs. They seek information on how this needs can be satisfied, what products can be useful and how they can buy it. Eventually, customers purchase a product, use it and decide if it satisfies their needs. He cited that the consumer seeks information about the product that can help them to be satisfied. The consumers receive most of the information about a product from commercial sources but the most effective information comes from the personal sources. Each information source performs differently in influencing the buying decision. Related Studies The researchers review the investigations conducted by the previous researchers, to understand various situations and ideas related to the study. The review covered findings and conclusions. The study of Montuya et al, (2007) entitled “Consumer Buying Behavior toward AVON Product in the Province of Camarines Norte” revealed that the primary reason of the customer in patronizing AVON products was the long lasting quality they offer. They also found out that branch discount is the strongest promotional tool they used. Through brochures and catalogs consumers were always informed of what is new product and what is on promo that suit their needs. Furthermore, Abanes et al, (2008) studied the “Competitiveness of Burger Stand and its Effect to Consumer Buying Motives in the Province of Camarines Norte for the year 2007”. They found out that burger stands in the province of Camarines Norte are competitive. Quality of the product got the highest mean followed by location of business and promotional strategies. All parameter given were treated and interpreted as competitive. Also consumers purchasing burger and its related variation agreed that effects of burger stands will be on the emotional buying motives of consumers and they strongly agree that the effects of burger stands competitiveness had a great impact on the consumers’ rational buying motives. Abanes et al, (2008) found out on their studies “Factors Influencing the Buying Behavior of Colgate Users in Selected Municipalities of Camarines Norte for the year 2007” that internal and external factors influence the buying behavior of Colgate users. Also the possible measures that can help increase the customers’ patronage of Colgate toothpaste are lower price, more print ads and promo. Fitzimon (2004) on his study “Consumer Warning: Seemingly Innocuous Question Can Influence Purchasing Habit” concluded that consumers who consider one brand from a category of products tend to rate that brand much higher than they would, if they compared it with others, the phenomenon known as brand positively effect. It illustrates that consumer most likely to purchase one brand than to choose the other brand because they think that it is the best for them. Synthesis of the State-of-the-Art The researchers reviewed related studies which are relevant and significant to the present study. The researchers identified the similarities and differences between the previous study to the present study. The study of Abanes et al (2008) revealed that burger stands are competitive in Camarines Norte because of quality, location and promotional tool they used. Same as the present study that focus on the quality of coffee and promotional activities that influence the purchasing habit of coffee drinkers. The study of Abanes et al (2008) about colgate focused on the internal and external factors that influence buying behavior such as lower price, more print ads and promo while the present study also deals with the price and promotion as factors that affect the purchasing habit of coffee drinkers. The study of Fitzimon (2004) concentrate at the brand at which consumers purchase the one they think as best choice for them while the present study also deals with brand as one of the factors that affect the purchasing habit of coffee drinkers. The study of kanshariri about buying shoes focused on price and quality as the factor that helps the consumer same as the present study that deals with price and quality of the coffee as the factors that affect the purchasing habit of coffee drinkers. The study of Montuya (2007) focused on the reason of customer in patronizing AVON products and on the promotional activity they used while the present study deals with the reason of coffee drinkers in choosing a brand of coffee and their purchasing habits. All of the studies deal with consumer behavior with relation to brand, price, quality, location and promotion. It is found out that there is no study about the purchasing habit of coffee drinkers along the factors of frequency of buying, spontaneous brand switching and volume of purchase. To bridge the gap, we decided to focus on this study. Theoretical Framework The theories that can be associated with our studies are the reinforcement theory and the diffusion theory. Reinforcement theory states that human behavior can be subject to change molded and conditioned by various forms of behavior known as “positive reinforcement” that affect the purchasing habit of consumer. Diffusion theory is a theory concerning the spread of innovation, ideas or technology through a culture of cultures. The diffusion theory states that there are many qualities of innovations that can cause people to readily accept them or resist them. It is composed of five stages: the knowledge, persuasion, decision, implementation and confirmation. (Retrieved as of July 5, 2010 at http://www.wisegeek.com/what-is-the-diffusion-theory.html) The reinforcement theory (Batra 2004) was related to the study in terms of buying habits of coffee drinkers because when they are not satisfied with the coffee the tendency is to switch brand. But if the coffee has a good taste and also brings benefits to the health the tendency is to become a loyal consumer that will repeatedly make a purchase. Also when the coffee is affordable and it meets coffee drinkers’ expectation they would purchase it always. Diffusion Theory was related to the study in terms of buying habit because of its five stages which are used by coffee drinkers. The first stage is knowledge in which the coffee drinker becomes aware of the product but has no information about it. Second is persuasion in which the coffee drinker seeks information on a certain brand of coffee to know its benefits or the side effects to the health because of caffeine. Third is decision in which the coffee drinker weighs the advantages and disadvantages of the product and decides whether or not to buy it. Fourth is implementation in which the coffee drinkers buy the coffee and test it. And lastly is the confirmation wherein after the coffee drinker test the product they will decide whether to continue purchasing a specific brand of coffee or not. If coffee drinkers are satisfied with the coffee the tendency is to purchase it repeatedly or habitually. Show in the next page is the Theoretical Paradigm of the Study. Reinforcement TheoryDiffusion Theory Coffee Drinker Purchasing Habit of Coffee Drinkers in Selected Municipalities of Camarines Norte for the year 2010 Figure 1 Theoretical Paradigm of the Study Conceptual framework The conceptual framework of this study was based on the system concept which consists of three elements, the input, process and the output. The input of this study refers to the purchasing habits of the coffee drinker in terms of their demographic profile such as age, gender, civil status, educational attainment and occupation and also their behavior in buying coffee and the factors which drives them to purchase a brand of coffee: brand, quality, price and sales promotion. The process includes activities that the researchers had undertaken such as distribution of survey questionnaire, organization presentation of data, library research, data analysis and evaluation of all the data gathered. The output pertained of the study to proposed marketing strategies that will influence the purchasing habits of coffee drinkers. Like for every dozen purchase of coffee there are additional items for free. Also a coupon that will serve as discount or they may join contests about coffee in order to enhance the purchasing habit of the coffee drinkers. The feedback provides result of the study regarding purchasing habit of coffee drinkers regarding purchasing habits of coffee drinkers in selected Municipalities of Camarines Norte, proposed marketing strategies to be adopted to increase buying habit of coffee drinkers. It is also serves as guide for the researchers to know whether the work is well done and if not researchers can go back to input to do some adjustments. Show in the next page is the Conceptual Paradigm of the Study. ,[object Object],FEEDBACK ,[object Object]

OutputProposed marketing strategies to be adopted to increase buying habits of consumers Figure 2 Conceptual Paradigm of the Study ENDNOTES Philip Kotler et al, Principles of Marketing, 11th Edition, Prentice Hall Inc., 2007, p.172. Michael Etzel., Marketing, 13th Edition, McGraw-Hill Company, 2004. Marriette Velasco Geron, Trade Show Offers What Filipino Consumers Likes, HYPERLINK quot;
http://www.lng7.net.2003quot;
http://www.lng7.net.2003. Boyd et al, A strategic Decision Making Approach, 4th Edition, McGraw-Hill Company, 2003. William Underhill et al, Principles and Perspective of Marketing, 4th Edition, McGraw-Hill Edition Inc, 1999, p.104. Maria Cristina O. Montuya et al, Consumer Buying Behavior Towards Avon Products in the Province of Camarines Norte, Unpublished Undergraduate Thesis, Camarines Norte State College, 2007. Abanes et al, Factors Influencing the Buying the Buying Behavior of Colgate Users in Selected Municipalities of Camarines Norte, Unpublished Undergraduate Thesis, Camarines Norte State College, 2008. Edrian R. Abanes et al, Competitiveness of Burger Stands and its Effect to Consumer Buying Motives in the Province of Camarines Norte, Unpublished Undergraduate Thesis, Camarines Norte State , 2008. Walter F. Fitzimon, Consumer Warning: Seemingly Innocuous Question Can Influence Purchasing Habit, www.Allbusiness.com, 2004. Chiptan Kanshariri, Factors Affecting the Consumer’s Decision on Buying Shoes: A Case Study of Students in Ho Chi Minch City; Vietnam, Master Thesis, University of Thai Chamber of Commerce, 2005. Satish K. Batra et al, Consumer Behavior: Text and Cases, Excel Books 2004. http://www.wisegeek.com/what-is-the-diffusion-theory.htm

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