An Analysis of the Factors That Affect Individuals Buying Behaviour of Jeans Wear in United Kingdom
Acknowledgment
Executive Summary
The modern world is characterized with intense businesses activities where firms compete with one another for the market share. Consumers are also becoming more demanding and market savvy given the fact that they are having more options of products in the market than they experienced in the past. Businesses are therefore forced with a dilemma of understanding the behaviour of consumers so as to develop appropriate marketing strategies that can enable them gain competitive advantage in the market. Clothing industry has become very lucrative to businesses given its huge profitability and rapid growth. The clothing industry is also characterised with rapid changes as consumers taste and preferences change with time. This requires businesses in clothing industry to adopt strategies that can make them gain competitive advantage in the market. This research study analyses factors that affects UK jeans consumer purchasing behaviours. The study came up with five main objectives that are used to analyse the behaviour of UK jeans consumers. Various data collection and analysis methods are used to investigate the behaviours of jeans consumers in the UK market. The relationship between various demographics factors and UK jeans consumers are also investigated in the study.
Table of Contents
An Analysis of the Factors That Affect Individuals Buying Behaviour of Jeans Wear in United Kingdom 1
1.0. Introduction. 8
1.1. Problem Statement. 8
1.2. The United Kingdom Jeans Industry. 8
1.3. UK Jeans Consumers. 9
1.4. Aims and Objectives. 10
1.5. Research Questions. 10
1.6. The Research Structure. 11
2.0. Literature Review.. 13
2.1. Consumer Buying Behaviour. 13
2.2. Factors Affecting Consumer Behaviour. 14
2.2.1. Cultural Factors. 14
2.2.2. Social Factors. 15
2.2.3. Personal Factors. 15
2.2.4. Psychological Factors. 16
2.2.5. The Level of Technology. 16
2.2.6. Other Factors. 17
2.4. The Consumer purchasing Decision Process. 19
2.4.1. Problem Recognition. 19
2.4.2. Information Search. 20
2.4.3. Evaluation of Alternatives. 20
2.4.4. Purchasing Decision. 21
2.4.5. Post Purchase Behaviour. 21
2.5. The Role of Product Mix in Purchasing Decision process. 21
2.6. Jeans Market in United Kingdom.. 23
3.0. Methodology. 27
3.1. The Primary Sources of Data. 27
3.2. Secondary Sources of Data. 28
3.3. Data Analysis. 28
3.4. Conceptual Framework. 29
3.4.1. Demographics of the Participants. 29
3.5. Hypotheses. 30
3.6. Research Process. 30
3.7. Population and Sample Selection. 31
3.8. Data Collection. 31
3.9. Primary Sources of Data. 32
3.9.1. Observation. 32
3.9.2. Questionnaires. 33
3.10. The data test. 33
3.11. Ethical Issues. 33
4.0. Data Analysis and Results. 35
4.1. Analysis of the Participants. 35
4.2. Analysis of Consumers Behaviours. 38
4.3. Statistical Examination of Factors Influencing Consumers Decisions to Buy Jeans in UK. 45
4.4: Test for the hypotheses. 50
5.0. Discussion of the Findings. 64
5.1. Consumer Demographics. 64
5.2. Marketing Mix. 66
6.0. Conclusion and Recommendation. 69
6.1. Conclusion. 69
6.1.1. Consumer Buying Behaviour of Jeans in UK. 69
6.1.2. Factors that make Individuals interested in jeans. 70
6.1.3. Hypotheses testing. 71
6.2. Recommendation. 74
7.0. Reference Lists. 76
8.0. Appendices. 80
List of Tables
Table 1: Research Structure. 11
Table 2: Jeans sales in UK Market. 23
Table 3: Mens sales of Jeans In UK market 24
Table 4: The response of the study participants in relation to their ages. 33
Table 5: The response of the study participants in relation to the level of education. 35
Table 6: The response of the study participants in relation to the profession. 36
Table 7: The response of the study participants in relation earnings. 37
Table 8: Factors that affects consumers purchasing decisions. 37
Table 9: Individuals that can influence consumers purchasing decision. 38
Table 10: The preferred country of origin for the Jeans. 39
Table 11: The favourite make of Jeans. 40
Table 12: Source of knowledge about Jeans. 41
Table 13: The mode of selection and purchase of jeans. 41
Table14: Elements that makes individuals interested in Jeans in UK Market. 42
Table 15: Number of Jeans owned by individuals. 43
Table 16: The frequency of consumers in purchasing jeans per year. 44
Table 17: The price consumers are able to pay for Jeans. 45
Table 18: Average and standard deviation of factors influencing consumers decisions to buy jeans. 46
Table 19: The degree of influence of product factors. 47
Table 20: The degree of influence of the price factors. 49
Table 21: The degree of influence of place factors. 50
Table 22: The degree of influence of promotion factors. 52
Table 23: Association of age with UK jeans consumer behaviour. 54
Table 24: Relationship between the level of education and UK jeans consumer purchasing behaviour. 56
Table 25: Relationship that exists between occupation and UK jeans consumer purchasing behaviour. 57
Table 26: Relationship that exists between the level of income and UK jeans consumer behaviour. 58
Table 27: The relationship that exists between the product factors and the UK jeans consumers purchasing behaviour 59
Table 28: Relation between price factors and UK jeans consumer purchasing behaviour. 60
Table 29: Relationship that exists between place factors and UK jeans consumer purchasing decisions. 61
Table 30: Association that exists between the promotional factors and UK jeans consumer purchasing decisions behaviour 62
1.0. Introduction
1.1. Problem Statement
Jeans market has particularly attracted attention of individuals from all demographic backgrounds around the world. Jeans wear is currently popular to majority of people and is being sold through various retail outlets, shops and designer companies. Jeans market in the global market has grown significantly over the previous years due to a huge demand. Jeans has gained popularity among individuals due to their fashionable design and trends. The jeans market therefore offers huge investment opportunities to businesses and there is a need for the potential investors to come up with appropriate strategies that can make them design jeans that satisfy customers needs. Few researches have been done on the factors that affect individuals buying behaviour of jeans. This research is therefore aimed at providing insights to various investors in UK jean market on the factors that affects the purchasing decision of jeans consumers.
1.2. The United Kingdom Jeans Industry
Jeans have in the recent past entered UK and become popular among a number of jeans customers in the country. A clear date for the arrival of jeans in UK cannot however be determined. The rapidly increasing number of jeans dealers in the country suggests that Jeans has become a popular type of clothing among various individuals in UK. Whereas various styles of jeans have been introduced in the market, many dealers and businesses are beginning to offer products aimed at gaining competitive advantage in the jeans market instead of offering stock for sale in the market. This can be achieved through offering different jeans designs that satisfy variety of consumers needs.
The current actual value for jeans market in UK cannot be exactly established. However it is clear that the entire UK jeans market was worth approximately 1.4 billion pounds in 2005 and that over 50 percent of adult population in UK wear Jeans. This trend shows that Jeans market is on a steady rise in UK and this provides attractive investments opportunities for new business venture. Of particular interest is the rapid growth of demand of jeans by women in the UK. Recent research also shows that three pairs of jeans are sold every second of every day in the UK market. This shows that the demand for Jeans in UK is high and there is also high prospect of growth in jeans demand in the country. On average Britons spends approximately 1.5 billion pounds each year on their favourite brand of jeans. Jeans from either designer labels or supermarkets have clearly attracted the fashion industry and continue to attract huge sales in the UK market
1.3. UK Jeans Consumers
Euromonitor statistics indicates that jeans for men posted the highest sales in the UK market with an increase of 15 percent of sales volume in 2012. This statistics means that men are the majority of jeans consumers in UK market. Many of the jeans retailers in UK therefore sell a high percentage of jeans for men as opposed to female jeans wear. Statistics also reveals that young people in the UK market are in favour of jeans as opposed to adult population. This implies that most of the jeans wear in UK are sold to the young population since they form a large percentage of jeans customers in the country. It is also worth to note that the sales of jeans has been on the rise as the UK jeans consumers are becoming aware of the variety of jeans in the market.
1.4. Aims and Objectives
The main objective of the research study is to determine the factors that have impacts on the consumers behaviour when making purchasing decisions of jeans in United Kingdom. It is aimed at understanding the behaviour of consumers towards jeans in UK. The main findings of this research study can be used to develop marketing strategies by firms that are involved in the manufacturing and distribution of jeans in UK. Based on this the research study came up with five main objectives that include.
To investigate the marketing mix of jeans wear in UK and how it relates to the consumer buying behaviour in UK jeans market.
To investigate the factors that affect consumer purchasing behaviour of jeans wear in UK
To investigate the reasons why consumers in the UK are purchasing jeans
To examine the relation between the price of jeans and the behaviour of consumers in UK market
To determine the relationship between the income of consumers and the purchasing trends of UK jeans consumers
1.5. Research Questions
Research questions are important for addressing the aims and objectives of a research study. Research questions are set so as to help guide researchers in the process of research study. This research study therefore came up with four main research questions which are used as the foundation of the study. The five main research questions for the study include the following.
What the impacts of demographic characteristics on the purchasing decisions of UK Jeans consumers?
What are the effects of marketing mix on the purchasing decisions of Jeans consumers in UK?
What are the main reasons why consumers in UK purchase jeans?
What is the relationship between price of jeans and UK consumers behaviour?
How is income related to the purchasing trend of UK jeans consumers?
1.6. The Research Structure
The following table shows a brief summary of this research paper.
Table: 1
Chapter
2.0. Literature Review
A review of literature on consumer behaviour
A review of literature on UK clothing industry
A review of literature on jeans market in UK
3.0.Methodolgy
Provide the outline of the research methodology used in the study
Justification of the methodology used in the study
Provide description of methods used to collect data
4.0.Findings
Present the findings and analysis of the data collected in the study
Provide answers to all the research questions of the study
5.0.Discusion of Results
Provide a discussion of the research findings in relations to other previous studies
Compare the findings of the research question with other previous studies
6.0. Conclusion and Recommendation
Brief summary of the research process
Brief summary of the answers to the research questions
Summary of lessons from the research
Discus the study limitation
Provide recommendation and conclusions for the study
2.0. Literature Review
2.1. Consumer Buying Behaviour
According to Young et al (2010) consumer buying behaviour has become one of the widely studied topics that are of importance for businesses when designing marketing strategies. The competitiveness in the business environment has enabled many organizations to develop strategies that can make them compete favourably in the marketplace (Forney et al, 2005). One of the effective ways of ensuring that organizations remain competitive in the business environment is through the provision of products that help satisfy customers needs. This can only be achieved when organizations are able to identify the taste and preferences of consumers. One of the best ways through which organization can be able to identify the taste and preference of consumers is through the study of the consumer buying behaviour.
Understanding of the consumer buying behaviour is important factors towards improving marketing strategies of organizations. The concept of consumer buying behaviour can be used to investigate the reasons behind consumers purchasing decisions, the process involved in purchasing a product and the factors that affects the purchasing decisions of consumers (Young et al, 2010). This can facilitate the development of an effective marketing strategy for firms so as to attract sales and be competitive in the market. Majority of marketing managers and organizations spends significant portion of their budgets to conduct market research on the behaviour of consumers with an aim of developing marketing strategies that are in accordance to the consumer needs. This can ensure that customers are attracted to purchase a product from an organization hence enhanced the performance, profitability and productivity of the organizations.
2.2. Factors Affecting Consumer Behaviour
The decision that consumers make depends on various factors that include social, cultural, political, technological and personal factors (Holbrook, 2002). These factors play an important role in the consumer purchasing decisions and have a direct impact on the consumers decision of purchasing or nor purchasing a given product. The competitiveness and unique nature of the business environment necessitates marketing managers to be conversant with the factors that can influence the consumer behaviours so as to enable them develop appropriate marketing strategies that can help satisfy customers needs (Baumeister, 2002). Due to globalization, a number of organizations are nowadays operating in different countries that are characterised with various cultural backgrounds, unique lifestyles and tastes. This makes it essential for organization to determine the various needs of the consumers so as to come up with appropriate products that can help satisfy the needs of the consumers.
2.2.1. Cultural Factors
The behaviour of consumers in a given market can be determined by the cultural factors. Cultural factors can be defined as a set of norms, values, tradition, beliefs and behaviours of consumers in a specified place (De Vries, 2008). Cultural factors can be determined by the beliefs and tradition in a given society. For example institutions, religion, family and ethnic group can determine the cultural factors of a given society. It can also depends on the geographical region, religions, nationality, occupation, education, income and (Wang & Waller, 2006). The beliefs that a given society attaches to a product can influence the purchasing decision of consumers in a country or market. For example, some cultures might be against the use and consumption of a particular product hence they may not be interested in purchasing that particular brand. This can affects their purchasing decisions by making them shy from purchasing the product.
2.2.2. Social Factors
Social factors are the factors that include groups such as religious, family, status, social networks, neighbours and friends among others (Forney et al, 2005). The social group of an individual can have an influence on the buying decisions of consumers. This is because social groups can ensure that an individual to acquire a new status that reflects the community within a given social setting. Individuals within the same social group in most cases have the same taste and preferences hence affect their decisions with regards to consumption of a particular pro
duct (De Vries, 2008). Social factors can also directly or indirectly influence the behaviours and attitudes of consumers in different ways that include exposing them to new perception, lifestyle, taste and preference, behaviours, attitudes and self concept. Family can also influence the purchasing decision consumers through family orientation. Studies have shown that individuals belonging to a given social group can be of significant on the purchasing decisions of others in the same social group (Gereffi & Memedovic, 2003). The social class of individuals also have direct impact on the purchasing decision of people in the same social class. With these respect individuals in the same social class will behave in a similar way and this can make them make similar purchasing decisions.
2.2.3. Personal Factors
Personal factors of individuals refers to the factors that determines the behaviour of consumers and can include various elements such as the level of education, age, economic status, self concept, values and personality and lifestyles (Häubl & Trifts, 2000). These factors can have a direct impact on the behaviour of individuals towards making purchasing decisions. Age of consumers can play a significant role in determining the choice of a product that is purchased at any given time. It can be argued that consumers taste and preference can vary based on the age of an individual. This implies that consumers can make purchasing decisions of products based on their ages as some products are manufactured to satisfy the targeted age of consumers in a market (Forney et al, 2005). For example, items such as toys are manufactured to satisfy the needs for children hence such goods are not appropriate for older people. This implies that individuals age have a direct or indirect impact on the decision of products to be purchased. Occupation of an individual can also necessitates an individual to purchase a given product so as to help in accomplishing his or her job responsibilities.
2.2.4. Psychological Factors
Psychological can also affect individuals decision to purchase products. These factors can be attributed to the attitudes, perception, beliefs and motivation of consumers (Häubl & Trifts, 2000). Psychological factors can facilitate the understanding and perception of individuals with respect to specific brand. They can also be used to evaluate the beliefs and experiences of consumers in a market (Entwistle, 2000). Through psychological factors it is possible for consumers to either perceive a product in either a positive or negative manner hence facilitates purchase decision of consumers. This implies that consumers will make purchasing decision of a product based on his or her perception. Psychological factors can also ensure that consumers are motivated and attracted to purchase a product.
2.2.5. The Level of Technology
The level of technological advancement is another important factor that can determine the decision that consumers make with regards to purchase of a product. Currently various individuals have been using internet marketing techniques to obtain information about the availability of goods and services as well as purchase the goods and services (Cook et al, 2000). Again many organizations are also conducting market intelligence through the use of online techniques and advanced level of technology. This is due to the fact that information technology can enable organization to determine the products that are preferred by consumers. Through advanced level of technology it has become easier for organizations to interact and communicate with their clients at various geographical regions. This can allow organizations to develop appropriate marketing strategies that can enhance the promotion of their products hence help in persuading consumers to purchase their product. This can enable organizations to influence the purchasing decisions of consumers. As the level of technology increases in the market, some products can be rendered obsolete and out dated in the market (Cook et al, 2000). This is because technological advancement often leads to invention and innovation. This consequently leads to the development of new products that can satisfy the current needs of customers.
2.2.6. Other Factors
There are also various factors that have been identified according to research studies as important in determining the consumer purchasing decision in clothing and fashion industry. A research study aimed at evaluating the effectiveness of online marketing identified that online marketing can influence consumers decision to purchase a product (Chen & Dubinsky, 2003). According to this study online marketing strategies can have a significant impact towards influencing the decision of a consumer to buy a product (Chen & Dubinsky, 2003). Chen & Dubinsky (2003) also suggested in his studies that internet marketing strategies can be essential in influencing consumers to purchase a product if the product is easily accessible as well as displayed in an appealing and attractive manner. Degeratu et al, (2000) argued that the main factor that is important in the determination of individuals purchasing behaviour is the price of a product. In their study, Degeratu et al (2000) noted that price plays an important role in determination of supply and demand in a given market. Majority of organizations have used price as strategic tool for attracting the attention of individuals to purchase a product as well as a means of gaining competitive advantage in the market through offering products at low prices (Degeratu et al, 2000).
Other factors that can affect the buying decision of consumers in a market include income level, the presence of close substitute products, weather conditions, tastes, preferences, promotional strategies and culture (Chen & Dubinsky, 2003). In his studies Doran (2009) argued that the demand of individuals for products increases as the level of income increases. The purchasing power of a consumer is likely to increase given an increase in the income level of individuals (Doran, 2009). According to Doran (2009) consumer will tend to demand and purchase more products when they are exposed to high wages and salaries. Weather on the other hand can also determine the demand of products in a market. Studies on the buying behaviour of consumers in clothing industry suggest that climatic and weather conditions are important factors that can determine the purchasing decision of consumer behaviour in the market (Entwistle, 2000). Entwistle (2000) also indicated that weather plays an important role in influencing the buying decision of consumers as opposed to other factors that include price and the level of income of individuals in clothing industry. They supported this by indicating that individuals are more interested in the type of clothing especially in regions with adverse climatic and weather conditions and this can make them buy clothing that can protect them from the adverse climate and weather condition at the price that is charged by the retailers. The argument by Entwistle (2000) is however disputed by various scholars that suggested that the level of income of individuals and price of products are the main factors that can determine the demand and supply of products in any industry (Doran, 2009; Lattin & Bucklin, 1989; Chen & Dubinsky, 2003).
2.4. The Consumer purchasing Decision Process
The buying decision involves five main stages that include need recognition, information search, evaluation of alternative, purchase decision and post purchase decision (Baumeister, 2002, Häubl & Trifts, 2000). These five stages are the main determinant of the consumers purchase decisions. Each stage of the buying decision process plays a significant role in influencing the consumer decision process. Häubl & Trifts (2000) however argues that some purchasing decisions do not necessary follow the five stages illustrated in the buying decision process. In their argument Häubl & Trifts (2000) also indicated that the nature of some products do nor requires consumers to undergo all the five stages in the decision process and this makes it to be less ineffective towards explanations of purchasing decision process of certain products.
2.4.1. Problem Recognition
This is the stage where the consumer identifies and recognizes a need that can be solved by a particular product. The stage allows a consumer to fill the gap that exists between the desired and actual state (Reinartz, & Kumar, 2000). The problem recognition stage can be affected by various external and internal factors. The internal factors that affect this stage are as a result of the specification of consumers such as changes in income of consumers can result to desire by the consumer to purchase a particular product. External factors on the other hand are not directly related to individual consumers and might include aspects such as promtional strategies, economic condition, climatic and weather conditions (Häubl & Trifts, 2000).
2.4.2. Information Search
This refers to the stage where an individual will look for information regarding a product that can help satisfy his or her need. This stage can be more important when a consumer has no adequate and detailed information regarding a product that can help satisfy the identified need (Holbrook, 2002).Information search stage can however be less important in cases where consumers are aware of all the available products that can solve the identified problems. Various sources of materials can be used by consumers to conduct information search such as through friends referrals, internet sources, magazines and various advertisements. Marketers also plays critical role to ensure the success of the stage by acting as the main sources of information and this facilitates product awareness to consumers. At this stage, the consumers are able to come up with various information regarding products (Kacen & Lee, 2002).
2.4.3. Evaluation of Alternatives
This is a stage in consumer purchasing decision process where individuals consider other alterative option of the products identified (Baumeister, 2002). This is the stage where consumers will analyses and evaluates all the available alternatives solution or product of the identified problem. This stage is based on the availability of the information that is obtained in the previous stage of the buyer decision making process so as to enable an identification of the best product or solution of the consumer need (Kocak et al, 2007). This accuracy of information gathered at the information search stage is critical for the success of this stage. Various consideration can be made during this stages such as the benefits and disadvantages of the products as well as the past experience and future expectations of the product.
2.4.4. Purchasing Decision
At the purchasing decision stage, the consumer will have already developed an intention of purchasing the product. A number of factors can influence the purchasing decision of consumers at this stage and include factors such as attitudes of other individuals and uncertainties such as job lose. It is the role of marketers to ensure that consumers purchase the products at this stage by developing appropriate marketing strategies (Baumeister, 2002). The success of this stage can involve provision of a supportive environment to consumers as well as encouraging them so as to ensure that they purchase the product.
2.4.5. Post Purchase Behaviour
This is the last stage of the buyer decision process. This stage occurs when the consumers have actually purchased the products and are already using it. The stage is important since it can help influence consumers to purchase the same products in the future or to refer some consumers to purchase the products. This can depend on experience and how consumers are satisfied or not satisfied with the product purchased. This stage therefore requires marketers to be vibrant and monitor the behaviour of consumers after they have acquired a product so as to ensure repeat purchase and referral customers (Hair et al, 2000).
2.5. The Role of Product Mix in Purchasing Decision process
Product mix can be argued as an essential tool that can help towards development and implementation of marketing mix in organizations (Doran, 2009). According to Doran (2009) four factors that include price, product, place and promotion are important for the implementation of marketing strategies for various organizations. In a research study to investigate the influence that product mix have on the behaviour of consumer in clothing industry, (Kim et al, 2012) argued the variety of products plays significant role towards determination of the buying decision of individuals in clothing industry. In most cases consumers consider the quality and fashion of clothing as the main factors that influence the purchasing decision in clothing industry. The study is also supported by other scholars who also indicated that the main driving forces of consumers when purchasing clothing are the fashion trend and quality (Chen & Dubinsky, 2003; Degeratu et al, 2000; Bruce et al, 2004). Consumers also consider other factors when making purchasing decision of clothing such as place of manufacture, price charged and promotional techniques used. With regards to promotional techniques, Bhatnagar, Misra & Rao (2000) argued that social media is a widely used technique towards the promotion of clothing by various organizations. Social media has the capacity of creating product awareness to significant customers base in the global market hence is important tool for informing consumers on the availability and price products (Forney et al, 2005).
Various studies on clothing industry such studies by Rahman (2012); Entwistle (2000); Forney et al (2005); Degeratu et al, (2000) shows that place of origin of a product can have a significant influence on the purchasing decisions of individuals. Rahman (2012) further stated developing strategies that ensures that products become accessible to consumers can contributes positively to enhanced demand of products. He also suggested that using high level of information technology tools such as internet marketing can increases the demand and sales of product (Entwistle, 2000).Although the study indicated that social media is important in influencing the behaviour of consumers, another research study by Kim et al (2012) gives a contradiction to this argument by indicating that the use of social media has a limited ability in reaching to a wide customer base targeted by a product. In their research they argued that price but not the place has significant influence on the purchasing decision of consumers. Kim et al (2012) argued that there exists an inverse relation between demand of a product and price. This implies that the purchasing decisions of consumers can either be affected directly or indirectly by the price of a given product.
2.6. Jeans Market in United Kingdom
There exits high demand and supply of jeans in United Kingdom despite of a variety of clothing that is available in the country. It is also clear that the demand and supply of jeans has been rapidly increasing in UK market over the recent years (Gereffi & Memedovic, 2003). Majority of the targeted market for jeans in UK consist of the young generation. Jeans is also a favourite clothing for both women and men hence its demand attracts all people in the country. Another factor that has increased the UK jeans market is its relation with the fashion and lifestyle trends. Jeans are regarded by various people in the country as lifestyle and fashion clothing and this makes it attracts attention of a number of young people who are interested in fashionable products.
A recent research also indicates that jeans market is considerably large for men as compared to female consumers (Shaw et al, 2004). The research also shows that certain brands of jeans are preferred as opposed to other brands. However this depends on various factors such as age of consumers, gender, taste and preferences of individuals. There also exists evidence that shows that a high percentage of consumers in UK have strong preference on jeans that are made within the country. These changes of preference in favour of jeans from the country are as a result of the quality, orig