Consumers Buying Behavior of Thai People - Research Proposal Example

Factors influencing consumers buying behaviour of Thai people in choosing luxury brands. Chapter Introduction 1 Background to the Research The knowledge or the understanding of the factors that influence the buying behaviour of the customers relating to the purchase of luxury products is considered significant for marketers such that the same contributes in effectively segmenting the consumer market. Knowledge relating to the influencing factors also contributes in helping the marketer to rightly predict the behaviour of the luxury consumers and also to attract the target customers through designing of effective marketing and promotional contents (Belk, 2010). Owing to the growth of globalisation and the advent of the internet the market for the luxury products has expanded in the global landscape. Along with the advent of internet technology the growth of the tourism and travel market and the activities of the communication media have all contributed to the growth of demand for luxury products in the global landscape. The luxury marketers are observed to expand their trade from their home regions in Europe to Asia-Pacific regions where the luxury products and brands are favoured owing to their relation to social status and better quality and performance (Ma, 2014). Luxury products appeal significantly to Thai customers such that they sense sophistication, exquisiteness, design related to such products which thereby encourage them to own such luxury items. Relating to the young Thai customers, luxury products are such that effectively match with their ambitious lifestyle. Thai consumers are observed to have increased affinity towards trendy and designer products which is effectively met in terms of their luxury purchases (Chadha & Husband, 2010). 1.1 Luxury Brands Luxury Brands, regardless of type and category of the product, are identified to be such brands that tend to demand a premium price from consumers; compared to other products of the same category that offers tangibility to the consumers. The price gap generated by the introduction of luxury products is influenced from the enhancement in the price and reputation parameters, which is gained by owning a particular product or service brand (Kapferer, 2012). A luxury brand is identified as such that reflects an admixture of qualities like aesthetics, quality, enhanced comfort and convenience, increased price, rarity and originality, as well as the brand itself portraying an image of symbol and specialty. Thus, a product or service considered to be a luxury reflects considerably higher ratings in all the above parameters compared to other products and services in the related category. Luxury brands, being a combination of the above qualities, tend to generate a specific image in the minds of the consumers that helps in distinguishing the product or service from others within the same category (Chadha and Husband, 2010). Depending on the nature of the luxury brands, the consumers that tend to purchase those luxury products and services for are also identified to be pertaining to three different categories. Luxury consumers within the Western European countries are observed to be of Excursionists nature such that they tend to consume such luxury products that are easily accessible (Chevalier and Mazzalovo, 2012). Another type of luxury product consumers relate to is the Regular Luxury customers that tend to procure luxury products that are both exceptional and accessible in nature. Finally, the heavy luxury consumers are identified to be such consumers that are always observed to be on a buying spree for luxury products (Academic Conference , 2010). Luxury brands are also identified and known for their exclusiveness in terms of the perceptions developed in the minds of the consumers, relating to the power and social image conferred to those consumers on the procurement of the products (Tungate, 2009). Luxury products are identified in the mass consumer market as such of exceptional quality, and effectively appealing to the aesthetic and value to the customers. Consumers tend to identify and relate to luxury brands by associating the same to a specific logo, name and design, and aesthetic elements (Ma, 2014). 1.2 Factors Influencing Consumer Behaviour It is observed that the behaviour of the consumers relating to the product and service market are increasingly influenced by four main different types of factors. Those factors are related to cultural, social, personal and also of psychological nature. The consumers belonging to different social or national cultures and groups tend to reflect different consumption behaviour towards different products and services (BOSE, 2010). Purchasing and consumption habits of the consumers reflect significant disparities relating to the national and social cultures to which they belong to. Therefore, people are inclined to focus on the procuring of such brands, of products and services, that tend to be procured by those belonging to a certain cultural or group setting identified as communities (Khan, 2007). Herein, consumers tend to follow a certain cultural trend, popular within a region or nation, in the decision making of purchasing a specific product or service brand. In addition to cultural factors, the buying habits of individual consumers are also potentially influenced by the perceptions and suggestions provided by the members of a reference group (Kumar, 2009). Ideas and thoughts generated by the reference groups tend to significantly influence the buying behaviour of the consumers pertaining to the related group. Owing to the above factor, it is observed that consumers relating to a specific reference group tend to reflect the same type of consumption and buying habits related to products and services (Sokolowski, 2013). It is understood that other than friends and colleagues, reference groups with significantly higher influence is the family of the individual consumers. They considerably influence the mind-set of the consumers. Family groups play a considerable part in shaping an individual’s personality, attitudes, and opinions which in turn contribute in governing the purchase decisions of that particular consumer (Kengthon, 2011). Product and service brands are also selected by consumers in such mind-sets that are increasingly associated with one’s ranking in the larger society. Other factors relating to the demographic variables include: age, income and lifestyles of the consumers. These factors tend to reflect an increasing influence on the purchasing behaviour of the individuals (Reid and Bojanic, 2009). Thus people that belong to a younger generation have high income status and are adapted to affluent lifestyles, causing them to reflect different purchasing behaviour in contrast to the people relating to older age groups; which are those with lower income profiles, less affluent, or prefer moderate lifestyles. Finally, on the psychological side, parameters like learning and experience gained by individuals; as well as including the perceptual and motivational factors tend to significantly influence the consumers in deciding to purchase a product or service (Tyagi and Kumar, 2004). 1.3 Consumer Behaviour of Thai Consumers towards Luxury Brands An evaluation based on behaviour patterns of the Thai consumers, relating to the purchase of luxury products and services, increasingly reflects that the people tend to purchase those products and services in order to enhance their social status and superiority amongst other consumers and social groups. Luxury products are procured by the Thai consumers due to the fact that they believe it helps in enhancing their social prestige and class. To make their position enviable to others (Lu, 2011). According to observation, purchasing decisions of the Thai consumers relating to the product and service brands, luxury or otherwise, is significantly governed by the reference groups related to the individual. For example, the person’s family or friend circle (Gao, 2005). The above influence relates to the purchasing behaviour of Thai consumers relating to luxury products as effective gift items to be given to close family members and friends. Relating to the motivational factors, the Thai consumers believe that such brands produce an increasing quality of products to the market (Ratneshwar and Mick, 2005). Thus high quality product, and their brands, are largely favoured by the consumers because they offer comfort and convenience to the customers. Factors like increased price of the luxury products and their ability to enhance their existing social status are highly influential in helping Thai consumers decide on buying those products (Jain & Griffith, 2011). The Thai consumers do not mind paying a premium price for the luxury products, if it would help in gaining enhanced quality and comfort compared to other products that cost less. These consumers are found to care less of celebrity figures in endorsing the product and service brand (Hoyer et al., 2012); but on the contrary tend to give importance to the exclusiveness and uniqueness of to the product and service brands. In ways that these items contribute to differentiating their position in the larger society and in the respective social and consumer class (Boyle, 2009). Moreover, the aesthetic qualities, such as style and design, are also motivational factors that govern the purchasing behaviours of the consumers towards luxury products (Kotler, 2009). The young Thai consumers carry different types of behaviour, such as they would choose to save costs by choosing the purchase through importers rather than retailers. Overall, the behavioural patterns of the Thai consumers, relating to the buying of the luxury products, are observed to be largely influenced by the western cultures (Hawkins and Mothersbaugh, 2009). 1.4 Factors Influencing Consumer Behaviour of Thai Consumers towards Luxury Brands When purchasing products from luxury brands, Thai consumers feel that owning such luxury brands contribute in helping to effectively express their position and values in the mass market. That is a major intention when purchasing. (Noel, 2009). Similarly, the Thai consumers tend to procure the luxury products in order to meet their materialistic needs, in terms of fulfilling the demands of style, beauty, as well as confirming their personal values and zeal to excel amongst others within their social class (Hawkins et al., 2010). The Thai consumers show greater interest in buying luxury products directly from the western companies rather than from their regional counterparts (Schiffman and Kanuk, 2010). Owing to the above reason, it is increasingly observed that import growth of luxury product brands from western countries has significantly increased in Thailand. The Thai consumers tend to frequently purchase luxury products on an increased basis, to meet their growing and fluctuating demands in a spontaneous fashion (Mooij, 2010). 1.5 Problem Statement The research aims to identify the connection of the global market competition in the luxury fashion market to the Thai fashion market. It thus aims to understand the different factors that tend to influence the decisions of the consumers in purchasing luxury brands within the global marketplace, and thereby aims at comparing the same to the Thai luxury fashion market. Different factors relating to the development of social status and position, preference for high quality and aesthetics, information gained from the peer groups, as well as their experience and income background is observed to identify how all of these factors influence the consumer’s purchasing decision. Based on the above information, this paper shall evaluate the factors influencing the purchase decisions of the consumers in the Thai market. (Turconi, 2008) 1.5.1 Research Questions a) What factors influence Thai people in buying luxury fashion brands? Age factor influencing purchasing behaviour in buying luxury fashion brands? Education Background factor influencing purchasing behaviour in buying luxury fashion brands? Income Level factor influencing purchasing behaviour in buying luxury fashion brands? b) What are the personal value and attitudes toward purchasing luxury good among Thai consumers? All the questions were made by the theoretical concepts as display the next chapter and the description that explains how these questions link the theoretical concepts will be showed in the Chapter3: Methodology. 1.6 Research Purpose and Objectives The purpose of the research is to understand and evaluate the different factors that influence the behaviour of the Thai consumers in buying luxury fashion brands. It also observes how age demographics influence the purchasing decision of the consumers. The paper will focus on evaluating whether the education background and the income level of the consumers influence the purchasing behaviour of luxury brands. Further, it aims to understand the manner in which the Thai consumers relate the purchasing of luxury brands to their personal values and attitudes. The objectives of the research study can be effectively enumerated with the following, Research the factors that influence the behaviour of the consumers in purchasing of luxury brands. Identify the influence of the specific age demographic of the consumers on their purchasing decisions. Evaluate the manner in which the educational background and income level of the consumers influence the purchasing actions of the consumers relating to luxury brands. Finally observing how Thai consumers tend to relate their personal values and attitudes in the process of purchasing luxury brands. 1.7 Framework The paper would focus on reviewing effective literatures conducted by experts relating to the field of current research in Chapter Two. It would focus on generating empirical discussions related to consumer behaviour and the factors influencing special focus of those markets. Chapter Three would essentially focus on evaluating the methodology that would be incorporated to help design the research to gain necessary inference of the current research activity. The use of secondary, primary and quantitative research styles would be dealt with, either independently or in combination to help formulating the research activity. Chapter Four would focus on the incorporation of research tools, which is quantitative, to help in conducting the analysis required to generate needed findings and discussion to correctly fulfil the research objectives. Finally Chapter Five would produce a summary of the results gained from the findings and analysis conducted according to the research issue. Thus, obtaining effective recommendations to help enhance the potential of regional luxury producers and merchandisers to help sustain a loyal customer base. References Belk, R.W., 2010. Research in Consumer Behavior. United Kingdom: Emerald Group Publishing. Chadha, R. & Husband, P., 2010. Cult of the Luxury Brand: Inside Asias Love Affair with Luxury. United States : Nicholas Brealey Publishing. Ma, T., 2014. Professional Marketing and Advertising Essays and Assignments. United Kingdom: Tony Ma. Turconi, S., 2008. Fast fashion lessons. Business Strategy Review, 19(2), 5-11 Read More