Customer Buying Behaviour

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Factors Influencing Consumer Buying Behaviour of
Luxury Branded Goods

KHOR ENG TATT

Research report in partial fulfillment of the requirements for the degree of Online Master of Business Administration
UNIVERSITI SAINS MALAYSIA

2010

ACKNOWLEDGEMENT
First and foremost, I would like to thank my supervisor Dr Nabsiah Abdul Wahid for her relentless support, advice and guidance throughout the entire preparations of this dissertation. Not to forget my co-supervisor Dr Maliga Marimuthu for all the assistance and guidance provided all this while. I would like to express my gratitude and a big thank you for both my supervisor and co-supervisor for willing sacrificing the time to meet up and coaching. I’m greatly touched by the commitments and dedications they have shown. Without the support and guidance, I would not be able to complete this study.

I also would like to express my gratitude and thanks to Associate Professor T. Ramayah for his guidance and comprehensive lecture notes on the using the SPS S tools as well as interpreting the analysis output from the subject, ADW 615 – Advanced Business Statistics.

I also would like to thank my family members for support and understanding throughout the course of the completion of this dissertation. Their endless support had been invaluable and was the force that pushed me to go on. Not forgetting also my colleagues and fellow course mates who had provided assistance and support encouragement throughout the completion of the dissertation.

ii

TABLE OF CONTENTS

Page
ACKNOWLEDGEMENT

ii

TABLE OF CONTENTS

iii

LIST OF TABLE

vii

LIST OF FIGURE

viii

ABSTRAK

ix

ABSTRACT

x

CHAPTER 1 INTRODUCTION

1

1.1

Introduction

1

1.1.1 Branding

3

1.1.2 Brand Function

4

1.1.3 Brand Association

5

1.1.4 Luxury Goods

6

1.2

Problem Statement

8

1.3

Research Objectives

9

1.4

Research Questions

10

1.5

Significance of Study

11

1.6

Structure of the thesis

11

CHAPTER 2 LITERATURE REVIEW

13

2.1

Introduction

13

2.2

Brand

13

2.2.1 Definition of Brand

14

2.2.2 Brand Image

15

iii

2.2.3 Brand Functions

18

2.2.4 Brand Identity

20

2.2.5 Brand Associations

21

Luxury Brand

22

2.3.1 Price

24

2.3.2 Perceived Quality

25

2.3.3 Social Status

28

2.3.4 Brand Loyalty

32

2.3.5 Income

34

2.4

Consumer Behaviour

36

2.5

Summary

38

2.5

Theoretical Framework

38

2.5.1 Independent Variable

39

2.5.2 Moderating Variable

39

2.5.3 Dependent Variable

39

Hypotheses statement

40

2.6.1 Price

40

2.6.2 Perceived Quality

41

2.6.3 Perceived Societal Status

42

2.6.4 Brand Loyalty

42

2.6.5 Income Level

43

Summary of Hypotheses

44

2.3

2.6

2.7

CHAPTER 3 METHODOLOGY

45

3.1

Introduction

45

3.2

Research Design

45

iv

3.2.1 Population
3.2.2 Sampling Procedures and Sampling Size

46

3.2.3 Survey Questionnaires

46

3.2.4 Variables

49

3.2.5 Procedures

49

3.2.6 Measures

50

3.2.7 Data Analysis

50

3.2.8 Screening Question
3.3

45

51

Summary

51

CHAPTER 4 RESULTS

53

4.1

Introduction

53

4.2

Profile of Respondents

53

4.3

Goodness of Measure

56

4.3.1 Factor Analysis

56

4.3.2 Reliability Analysis

58

4.3.3 Descriptive Analysis

60

Hypothesis Testing

61

4.4.1 Correlation Analysis

61

4.4.2 Hierarchical Regression Analysis

62

Summary of Results

66

4.4
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