Chapter 2

Review of Related Literatures and Studies

This part of the study contains the review of previous literature and studies that
are related to this study. The chosen local and foreign literatures contain a guide and
some data that are important while we are conducting this study.
Foreign Studies
There are many ideas about the behavior of consumers in the buying process.
Some consumers are believed to be information gatherers. In this kind of consumer,
they gather information on the products that are in demand in the buying category, and
they decide based on their analyzation of their research. This is a point in business
marketing where you need to recognize how far your consumer is reaching. Also giving
the consumers the information they need and desire will help you gather their buying
analysis and evaluation. (Krissya, 2014).
According to Rosenbloom, mood can spoil or change a consumer’s desire to
shop. The customer’s intuition and perception about their living and financial capabilities
will and can affect their mood of desire of buying. The amount of money or penny the
customers have will affect the consumer spending rate of the industry. In a short
meaning, the unwillingness to buy became popular to those people who have a financial
problem. (Rosenbloom, 2009)
The buying decision and process is also affected by the perception of the
customer about the certain product, service or store. When we say perception, it is the
interpretation of the surrounding you have and if it makes sense for you. The idea of
sight, smell, hearing touch and taste are included on the perception because it affects
what you think in a given idea. For example, in one study, consumers were blindfolded
and asked to drink a new brand of clear beer. Most of them said the product tasted like
regular beer. But, when the blindfolds came off and they drank the beer, many of them
said that it tastes like water. (Ries, 2009).
Another factor that affects a buying decision is the social situation of a customer.
For example, student often buy foods in fast-food restaurants together with their friends
so they won’t look cheap and poor in front of them. In the example, it is shown that
decisions on what and where to buy can be affected by the social state that a customer
have. Also, social situation can affect the consumption of a person because of what
circumstances might occur. Example, if you have turned down a drink or dessert on a
date because you were worried about what the person you were with might have
thought, your consumption was affected by your social situation (Matilla & Wirtz, 2008).
The overpopulation or crowding inside a store is one of the situational factors that
can affect the buying decision of a customer. Some studies have shown that consumers
feel better about a specific store that attempts to prevent overcrowding or leading to
clogging. In the other hand, other studies have shown that in some circumstances,
crowding can have a positive impact on a person’s buying experience. The
phenomenon is often referred to as “herd behaviour” (Gaumer & Leif, 2005).
Foreign Literature
According to Simonson et al (2001), one of the most essential and influential
areas within consumer buying behavior is the consumer decision making process. In
recent decades, during the initial stages of the conception of the consumer buying
behavior paradigm, various consumer decision making models were proposed.
However, the theories proposed by the researchers were not specific and considered a
overall view of the consumer decision making process.
Erasmusm, Boshoff and Rosseau (2001) indicated the importance and need for a
specific, situation and product - oriented model in the study of the purchasing behavior
of the consumer.
Local Studies
Based on the 2015 Southeast Asian poll, the Filipinos are the most confident
consumer in Southeast Asia. The Philippines got at 117 points according to
Nielsen's Global Survey of Consumer Confidence and Spending Intentions. But even
Filipinos are considered to be the most confident consumer in Southeast Asia, Filipinos
still continue to see financial security as top priority. This is the highest on the priority
shopping list of Filipinos include holidays/vacations (27%), new technology products
(25%), and out-of-home entertainment (14%). (Dela Paz, C., 2016.)
The Filipino popular convenience stores namely Ministop and 7-Eleven are use
in a study where the customer satisfaction to gain the benefits from a convenient store.
The Filipino among the places that potentially has this kind of stores are gaining
satisfaction in terms of customer service and convenience, because we all know that
these stores are open 24 hours a day. Those stores can be described as sufficient and
effective to the consumer because it has the capacity to give the needs of customers
even it doesn’t have a wide variety of products. (Bautista, 2014.)
There are four factors that affect the Filipino buying behaviour stated, the
appearance, sanitation, health, and lifestyle. In the appearance, Filipinos are usually
conscious to their everyday looks that’s why they buy stuffs that makes them more
confident to walk anywhere. For the sanitation, virus and infection are dominant in the
Filipino communities that’s why buying sanitational products are usually bought to
maintain cleanliness. Next is for the choice of food of Filipinos to buy. The Filipinos are
double sided in terms of food because they sometimes think for a healthier lifestyle but
there are times they want to eat delicious foods that can affect their healthy body.
(Cabiao, C. 2013.)
The factors that influence the buying decision of the Filipinos, the first one is that
Filipino love freebies. Filipinos commonly like these kinds of promo because they will
gain a free gift that is not included to what they paid. Next is that Filipino shop around
and loyal to brands. Filipinos nowadays become loyal to popular brands that are known
anywhere, it is like coping with the trend. Also, Filipinos make the television advertising
the main source of product’s information because it is the easiest and most common.
(www.rappler.com, 2013).
The business people started on small business where they need to focus on
making their business capable to stand while different competitors are occurring. That’s
why small businesses are making more twist with their way of selling and advertising
because even small customers are important to them. The factors that need to apply to
create to make a successful small business is to first know their market, the product that
are effective and efficient to sell in the people in your market, and the location the store
that are necessary to be easily to identify as a business. (Garalde, 2007.)