• Title/Summary/Keyword: Purchasing Decisions

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Computational Trust and Its Impact over Rational Purchasing Decisions of Internet Users

  • Noh, Sang-Uk
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.4 no.4
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    • pp.547-559
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    • 2010
  • As web-based online communities are rapidly growing, the agents in the communities need to know their measurable belief of trust for safe and successful interactions. In this paper, we propose a computational model of trust resulting from available feedbacks in online communities. The notion of trust can be defined as an aggregation of consensus given a set of past interactions. The average trust of an agent further represents the center of gravity of the distribution of its trustworthiness and untrustworthiness. Furthermore, we precisely describe the relationships among reputation, trust and average trust through concrete examples showing their computations. We apply our trust model to online social networks in order to show how trust mechanisms are involved in the rational purchasing decision-making of buyers and sellers, and we summarize our simulation results.

The psychological factors and impacts in lottery-purchasing decisions (복권 구매행동의 심리적 결정요인과 그 영향)

  • Taekyun Hur
    • Korean Journal of Culture and Social Issue
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    • v.10 no.3
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    • pp.19-36
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    • 2004
  • An experimental research investigated the components of lottery games affecting lottery-purchasing behaviors and the psychological consequences of the behaviors. In the experiment, participants were given a chance to purchase a lottery tickets during a series of computer games and their decision of purchasing the lottery ticket was measured. Also, the size and probability of the lottery games were manipulated and the perceived difficulty, satisfaction of the mid-outcome, and perceived probability of success in the computer game were measured in order to examine their impacts on participants' lottery-purchasing decisions. In addition, the behavioral tendency, satisfaction of the final outcome, and perceived self-capability in the computer game were measured at the end of the computer games in order to examine the effects of lottery-purchasing experiences on the variables. Participants who perceived the games as easier and estimated the probability of their success highly were more likely to buy the lottery tickets. However, the winning prize and odd of lottery tickets, perceived satisfaction of their own performance, and the performance itself did not influence the purchasing decisions. The common beliefs on the negative effects of lottery-purchasing experiences on human motivation and behaviors were not supported. The implications of the present research findings and limitations of the experimental research on lottery were discussed.

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Corporate Social Responsibility and Its Impact on the Nigerian Consumer Behavior

  • POTLURI, Rajasekhara Mouly;ULLAH, Rahat;JOHNSON, Sophia
    • Journal of Distribution Science
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    • v.18 no.7
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    • pp.83-89
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    • 2020
  • Purpose: This research explores the relationship between Nigerian consumer perception towards corporate social responsibility (CSR) and its influence on their buying behavior. Research design, data, and methodology: In order to achieve this, a structured three-part questionnaire was developed and distributed to 400 respondents to gather relevant information. The respondents were randomly selected from Lagos and Adamawa, Nigeria. Only 222 questionnaires. were completed and data was later analyzed using administering descriptive and inferential statistics. Results: a) Nigerian consumers have adequate knowledge about CSR; b) Nigerian consumers' awareness of socially responsible practices largely influences their purchasing decisions; c) Nigerian consumers' perceptions of the traditions of socially accountable actions influence their buying behavior. Conclusion: Although the research was targeted at the urban areas of Lagos and Jimeta/Yola in Nigeria, the findings indicate Nigerian consumers generally have a positive perception of CSR. The research offers invaluable contribution to the Nigerian corporates based on which they can reassess their existing CSR policies for better positioning of their company and their products.

Evaluating Some Influential Factors on Consumers' Purchasing Decisions of Environment-friendly Agricultural Products (EAP) Using Importance-Performance Analysis (IPA) (중요도-성취도 분석을 이용한 소비자의 친환경농산물 구매 결정요소 평가)

  • Kim, Sang-Oh;An, Ki-Wan;Kim, Min-Hee;Shim, Jae-Han
    • Korean Journal of Organic Agriculture
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    • v.15 no.4
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    • pp.339-353
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    • 2007
  • It is important to facilitate consumers' purchases of EAP (Environment-friendly Agricultural Products) for establishing the successful Environment-friendly Agriculture (EA). This study was conducted to evaluate the present state of some potentially influential factors on consumers' purchasing decisions of EAP using Importance- Performance Analysis (IPA). A total of 299 Gwangju citizens participated in the questionnaire survey during September and October, 2007. Urgent improvement efforts are needed for "reliability about the safety of the EAP", "reliability on EAP certification mark", "credibility of EAP producers", and "growth of EA". Respondents also seem to have positive attitudes to EA activation.

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Consumer Purchasing Decisions on Sustainable Products in Advertising: The Interplay of Message Appeals and Agency-Communion Orientations

  • Taemin Kim;Jeesun Kim
    • International Journal of Internet, Broadcasting and Communication
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    • v.16 no.2
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    • pp.185-192
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    • 2024
  • Both message appeals and individual characteristics can influence the effectiveness of sustainable product promotions. Applying the agency-communion orientation to the advertising message research context, this study examined the interplay between message appeals and agency-communication orientations in impacting purchase intentions. The findings from a 2 (message appeal: self-interest vs. public-interest message) × 2 (motivational orientation: agency vs. communion) experiment revealed a communion-over-agency effect on consumer purchasing decisions for public-interest message appeals. In the self-interest message condition, we found no statistically significant difference in impact between agency and communion on purchase intentions. In short, we contribute to advertising effectiveness research by showing that agency-communion orientations moderate the effect of message appeals. We also explain the practical implications of these findings for effective sustainable communication in advertisements based on individuals' motivational orientations.

Irrational Factors Affecting the Purchase of Online Game Items

  • Lee, Jongwon;Lee, Jemin Justin;Park, Ji Min
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.12 no.2
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    • pp.626-642
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    • 2018
  • Recently, a number of studies have drawn attention to purchasing online game items. Most of the studies are based on the assumption that consumers behave rationally. Accordingly, TRA- or value-based approaches have been mainly employed to understand the online purchases of game items. However, the purchasing behavior of consumers involves not only making rational decisions, but also making irrational decisions. Hence, their purchase behavior is affected by propensities for conspicuous consumption, impulsive consumption, and habitual consumption. Playing games can be highly addictive, and players often display such addictive behaviors. Our study explored both the rational and irrational factors in purchase behavior to understand how they are associated with purchasing game items. A total of 366 pieces of data were collected from Korean online game users through a survey. Regression analyses of the collected data showed that the behavior of buying game items was influenced not only by the intention to purchase which is a rational factor in consumption, but also by such irrational factors as habit, impulse, and ostentation which should be further emphasized in future studies.

A Deterministic Model for Optimal Pricing Decisions with Price-Driven Substitution (가격차에 의해 발생하는 수요대체효과를 고려한 정태적 최적가격결정 모형 수립)

  • Kim, Sang-Won
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.1
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    • pp.1-17
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    • 2008
  • Market segmentation is a key strategic factor in increasing the expected profits, especially in the practice of revenue management. A manufacturing firm should manage both manufacturing quantities and pricing decisions over its segmented markets to maximize the expected profits, setting different price for each different segment. Also, market segments should be kept separate in order to prevent demand leakages between different market segments. In fact, even though the markets for different products are firmly segmented, it is not easy to keep separate segmentation because many products might be substitutable by customer buying behavior. That is, customers respond to price changes by purchasing other market's products instead of purchasing the originally requested products, which causes demand substitution effect ; This kind of substitution is referred to as price-driven substitution. Therefore, decisions on optimal prices should take into account the differences in customers' valuation of the different products. We consider a deterministic model for deciding optimal prices in the presence of price-driven substitution, and we compare both symmetrical-and asymmetrical-type demand substitutions between two segmented markets. The objective of this study is to develop analytical and numerical models to examine the impact of price-driven substitution on the optimal price levels and the total expected profits.

The Determinants of Consumer Purchasing Decisions of Health Food Products: An Empirical Study from Indonesia

  • EKASARI, Ratna;JAYA, I Made Laut Mertha
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.519-528
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    • 2021
  • The COVID-19 pandemic struck several countries in 2020. After the government officially announced that individuals will be working from home, shut public service agencies, and compelled people to wear masks and maintain social distance, several hundred business actors were forced to shut down their firms. The purpose of this study is to help companies determine the steps for a new marketing strategy for healthy food products in Indonesia. The number of samples was 500 respondents. The variance-based Structural Equation Modeling (SEM) method was used to conduct this investigation, which was similar to a marketing study. The findings show that in Indonesia, lifestyle and price perceptions influence healthy food product purchasing decisions. Meanwhile, brand awareness and customer attitudes had no bearing on healthy food products purchase decisions. The novelty of this study stems from the discovery of new opportunities for business players to market healthy food products during the current COVID-19 period. This opportunity arises as a result of changes in customer lifestyles and price perceptions, both of which must be taken into account by organizations to offer nutritious food items at reasonable rates in Indonesia.

Impulse Buying Behavior in Distribution Centers of Kathmandu

  • Bharat RAI;Rewan Kumar DAHAL;Bhupendra Jung SHAHI;Binod GHIMIRE
    • Journal of Distribution Science
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    • v.21 no.5
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    • pp.19-29
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    • 2023
  • Purpose: The study's primary objective was to pinpoint the variables impacting consumers' impulsive purchasing decisions in the distribution centers in Kathmandu, the capital city of Nepal. Research design, data, and methodology: The independent variables used to identify consumer impulse buying behavior were the in-store displays, store employee behavior, reference groups, and promotional activities. A 6-point Likert scale questionnaire was employed for collecting the primary data from customers at the retail center of Kathmandu. The study's sample size was 396, employing a convenient sampling method. Statistical Package for the Social Sciences (SPSS) and Analysis of a Moment Structures (AMOS) have been used to show the relationships between dependent and independent variables. Results: The outcome of the path analysis using structural equation modeling demonstrates that in-store displays, reference groups, and store employees' behavior significantly influence the customers' impulse buying decisions in the distribution center. Additionally, it has been discovered that promotional activities have no significant impact on consumers' impulsive purchasing decisions made at the retail center of Kathmandu. Conclusions and Implications: The study's findings indicate that the actions of store personnel, reference groups, and in-store displays significantly contribute to the acceleration of impulsive purchases. Such findings provide researchers and business executives with a road map for the future.

Antecedents of Purchase Decision of Over-The-Counter (OTC) Medicine from Pharmaceutical Distribution Channels in Jordan

  • ALMRAFEE, Mohammad Nabeel Ibrahim
    • Journal of Distribution Science
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    • v.21 no.1
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    • pp.1-12
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    • 2023
  • Purpose: The primary purpose of this research is to understand the potential influence of various factors, namely, pharmacies' recommendations, families' and friend recommendations, price, country of origin, and past experience, on the purchasing decision of nonprescription medicines in the Jordanian context. Research design, data, and methodology: A survey was conducted among 220 Jordanian consumers through a self-administered questionnaire. Further, the authors utilized the mall intercept method as a convenience sampling technique to recruit the respondents who shop at different pharmacies. The data were analyzed using various statistical techniques, such as frequency and percentage for describing the demographics of the sample, Cronbach's alpha for testing the reliability of the data, skewness and kurtosis to check the normality of data, and further, multiple regression using SPSS version 25 was performed for examining the hypotheses. Results: The findings revealed that pharmacists' recommendation, recommendations from friends and family, and price positively influenced consumers' purchase decisions of OTC medicines in Jordan, whereas consumers' past experience and country of origin had no influence on consumers' purchasing decisions of OTC medicines. Conclusions: The paper examines the influence of various factors on customers' purchase decisions of OTC medicines, draws conclusions, and makes recommendations. Also, research limitations are mentioned.