Globus An International Journal of Management & IT

A Refereed Research Journal

Vol 8 / No 2 / Jan-Jun 2017 ISSN: 0975-721X

BUYERS’ BEHAVIOR OF SELECT ELECTRONIC DURABLES WITH

SPECIAL REFERENCE TO ASMARA CITY - STATE OF ERITREA
*
Dr G.R. Vasantha Kumar
Abstract Introduction
Buyer’s behavior is an inter-disciplinary study The Consumer Durables industry in State of Eritrea
that has resulted from the advances in several consists of durable goods and appliances for
areas of the behavioral sciences. A study of this domestic use such as televisions, refrigerators, air
kind is needed to facilitate and understanding of conditioners and washing machines. Gadget such
buyers’ behavior of African nation which has as cell phones and kitchen appliances like
different types of culture, values, interest, and microwave ovens were also incorporated in this
economic background compared to Asian and group. The division has been spectacularly
European countries. The main aim of the study is important expansion in recent years, facilitated by
to identify the factors that influence the Buyers’ several drivers such as the emerging retail boom,
behavior on select electronics durable goods and real estate and housing demand, better disposable
also concentrate on evaluating the effectiveness profits and an overall augment in the level of
of the factors in State of Eritrea towards the wealth of an important section of the population.
buyer’s behavior. The core of the study centers on The Eritrean electronic markets are symbolized by
the level of purchasing behavior and satisfaction. major international players such as Sony,
Panasonic, LG, Nokia, Samsung, Blue Star, MIRC
Keywords: Buyer Behaviour, Electronic goods, Electronics, Philips, Whirlpool and etc.
Evaluating effectiveness, levels of purchase,
Buyer satisfaction. The objective of this paper is: to provide a
framework to study buyers’ behavior for durable
electronic goods in State of Eritrea. The electronic
industry help us to identify important
characteristics about electronic products like
television, mobile phones, washing machines,
camcorders, laptops, etc. First, electronic goods are
durable; and the consumers usually buy electronic
goods with the intention of keeping them for a long
period of time; further, the consumers buy
electronic goods looking for the need of
fulfillment, good features, good design, etc. Hence,
the purchase of electronic goods is highly based on
comparison of various factors which cannot
ascertain every characteristic of the electronic
goods before buying the product as far as our utility
function is concerned.

The main aim of the study is to identify the factors

that influence the Buyers’ behavior on select
electronics durable goods and also concentrate on
evaluating the effectiveness of the factors in State
of Eritrea towards the buyer’s behavior. Buyer’s
behavior is an inter-disciplinary study that has
resulted from the advances in several areas of the
behavioral sciences. The combined perspectives of
psychology, sociology, anthropology and
economics make positive contributions to our
understanding of buyer’s behavior.

The study of buyer’s behavior involves how

individuals and organization discovers, evaluate,
consume, and dispose of products and services. It
attempts to provide answers to the questions: Who
buys? When do they buy? Where do they buy?
Why and how do they buy? Three inter-related
*Ass. Professor, Department of Management & Marketing, College of Business and Economics, Halhale,
Asmara, Eritrea 5
activities comprise all the behavior of buyers: pre- study on Asmarian buyers’ behavior helps to know,
purchase activities, purchase activities, and where the good customers are, what they want,
consumption activities. These categories are true how they purchase and react to the product. The
for individual consumers and industrial consumers. study also helps to know, how various marketing
The basic theories and methods of analyses are activities are to be performed with regard to
essentially the same. The field of studying buyer’s various multi-cultural buying behavior.
behavior in State of Eritrea is relatively new
approach when compared with other marketing Objectives of the Study
studies. To analyze the demographic variables influencing
the level of buying the select electronic durable
Statement of the Problem goods among the Asmarian buyers.
Marketing is about satisfying consumers. Whether
companies seek to gain a competitive edge or Research Methodology
satisfy consumers’ needs, an understanding A research design of Asmara city is the detailed
of consumer behavior in State of Eritrea is a pre- blueprint used to guide a research study toward its
requisite of good practice. As Atticus Finch in objectives. The process of designing a research
Harper Lee's ‘To Kill a Mockingbird’ noted, "you study involves many interrelated decisions. The
never really understand a person until you consider most significant decision is the choice of research
things from his point of view and until you climb approach, because it determines how the
into his skin and walk around it", consumer information will be obtained. To design something
behavior theory provides glimpses of consumers’ also means to ensure that the pieces fit together.
point of view and allows companies to understand
consumers as individuals, information searchers The validity of research depends on the systematic
and decision-makers. Being in tune with Eritrea, method of collecting the data and analyzing them
consumers are a must for businesses. However, Jon in a sequential order. In the present study,
Weaver, the Marketing Manager at Bourn mouth extensive uses of both primary and secondary data
Borough Council thinks that understanding were collected systematically.
consumer’s wants is a big challenge. A new trend
has emerged in the world where more and more Field survey method was employed to collect
product outcomes are venturing as market offerings primary data from 1000 respondents living in and
in all kinds of businesses, agriculture and other around Asmara City, State of Eritrea. For this
useful areas. Due to the spread of innovations, purpose a well-structured questionnaire was used
technology and communication as well as new free for collecting the data.
trade practices that changes product offerings are
fast coming out of the web of traditional activities Sampling Method
to high level non-traditional activities especially, in First-hand information for the present Asmara city
the area of durability products. All these signs research has been collected from the respondents.
indicate that Eritrean buyers are responsive to For this purpose the universe comprised of the
changes and are well positioned to take advantage entire city of Asmara i.e. all the areas. Since, it was
of these situations. not feasible to study the entire Asmara; the
researcher drew a sample. To make the sample
A number of advances in the analysis of durability representative, researcher used Stratified random
have appeared. However, some areas of sampling technique. Therefore, researcher divided
misperception and inaccuracy with regard to the the entire Asmara into five zones as divided by the
implications of durability. It was learnt that not government of Eritrea on geographical basis. Four
many studies have been made on African nation’s areas from each zone were chosen at random and
buyers’ behavior related to durable goods. further four streets were randomly chosen from
Evidently, it is in the embryonic stage of each area, which were divided into two categories
development. Research in the area is scant and i.e. commercial streets and non-commercial streets.
issues are not yet clearly formulated and adopted From each selected area, the required number 25
coherently. Hence, the researcher has made an percent of households was selected based on
attempt to study buyers’ behavior in response to Judgment Sampling (or) Purposive Sampling by
select electronic durable goods confined to Asmara using some common criteria like reference groups,
city (capital of State of Eritrea) for the reasons of subject knowledge, occupational status and their
academic viability as well as purposeful attitude to co-operate for this study. This totaled
consideration. A study of this kind is needed to into one thousand respondents in all, which was
facilitate and understanding of buyers’ behavior of collected for the time period of one year. Hence, it
African nation which has different types of culture, is finally derived that the sample size chosen for
values, interest, and economic background this study was 1000 sample respondents.
compared to Asian and European countries. The

6
Sources of Data Collection multiple regression, a linear composite of
The study uses both primary and secondary data. explanatory variables is formed in such a way that
it has maximum correlation with an active criterion
Construction of Questionnaire variable. The main objective for using this
The key aspects of the present research to be technique is to predict the variability of the
studied were identified for the preliminary dependent variable based on its co-variants with all
interview (Pilot Study) with few selected the other independent variables. For example, in
respondents. The questionnaire so drafted was this study it might help in predicting how much an
circulated among some research experts and individual enjoys their products. Variables such as
research scholars for a critical view with regard to age, gender, and marital status, nature of the
the format, sequence, wording and the like. The family, educational qualification, occupational
questionnaire was drafted in the light of their status, income, and socio-economic status might all
comments. The questionnaire consisted of 30 contribute towards Asmarian buyers’ behavior and
questions, of which 20 referred to the Asmarian satisfaction. If the researcher collected data on all
buyers’ behavior in possessing durable goods (viz, of these variables, perhaps by surveying a few
digital camera, DVD player, iPods, mobile phone, hundred members of the public, the researcher
personal computer, refrigerator, television, washing would be able to see how many and which of these
machine, air conditioner, camcorder, iPhone, iPod variables gave rise to the most accurate prediction
video players, microwave, Home theatre, personal of Asmarian buyers’ behavior and satisfaction. It is
laptop and plasma TV). The last ten questions useful in predicting the level of the dependent
referred to the respondents' (and their household) phenomenon, if the levels of independent variables
demographic characteristics. The intent was to were given, the linear multiple regression problem
encompass those product categories, the is to estimate the coefficients β1, β2, β2, …….βj,
consumption of which can establish differences in and β0 such that expression,
the Asmarian buyers’ behavior of different people
of Eritrea. Not only were the usage and possession Y = β0 + β1 X1 + β2 X2 + ……………. + βj Xk
of a product analyzed, but also the type of the
consumed product, the importance of certain Provided a good estimate of an individual Y score
criteria when choosing and purchasing the product, based on the X scores.
usage frequency, satisfaction level, and also the
brand preference. Where,
Y = Level of influence on buying
behavior
Frame Work of Analysis X1 = Respondents Age
The core of the study being “A study on Buyers’ X2 = Respondents Gender
Behavior of Select Electronic Durables with X3 = Respondents Residence area
Special Reference to Asmara City - State of X4 = Respondents Marital Status
Eritrea”, the study centers around the independent X5 = Respondents Nature of Family
variables influencing the level of buyer behavior. X6 = Respondents Size of the Family
X7 = Respondents Educational level
Approach to Assess the Extent of Utilization X8 = Respondents Occupational
The differences in the extent of Asmara people Status
behavior related to electronic goods purchase by X9 = Respondents Monthly Income
different types of respondents based on their age, X10 = Respondents Wealth position
educational qualification, experience, income level, X11 = Respondents Reason for
family size, marital status, nature of family was
studied by means of Multiple Regression Analysis Purchase of Electronics
to ascertain the variables influencing the level of And β0 + β1 X1 + β2 X2 + ……………. + βj
buying behavior. Xk are the parameters to be estimated.

Multiple Regression Analysis Review of Literature

Multiple regression is a statistical technique that Newman and Staelin (1971) in their research article
allows the researcher to predict someone’s score on entitled “Multivariate Analysis of Differences in
one variable on the basis of their scores on several Buyer Decision Time” focused on studying the
other variables. When there are two or more conventional demographic variables in explaining
independent variables, the analysis that describes the differences of buyers’ decision. The study
such relationship among the variables is called the results concludes that the respondent's own
multiple regression. This analysis is also adopted judgment or need to trust others, and, more
when one dependent variable is performing the importantly prior experience, which affected both
function of two or more independent variables. In information seeking and decision time. Secondly,

7
the decision process for one-half of the buyers of market” designed the framework evolved for
major consumer durables lasted only a week or so evaluating effectiveness of newer store format is
implies a rapid turnover of many active prospective necessary since it has a major impact on the overall
purchasers. Thirdly, information on most factors profitability of the retailing business. The study
significantly related to decision time typically is finally concludes that, customers in a developing
not readily available for marketers or media market such as India do not require the service
audiences. paraphernalia offered by many of the new store
formats emerging in the market and notes that this
Quails (1987) in his research article entitled may cast a serious doubt over the retail revolution,
“Household Decision Behavior: The Impact of which has taken shape in the Indian markets lately.
Husbands' and Wives' Sex Role Orientation”
focused to study the husband and wife decision Sudarsana and Rajarashmi (2004) in their research
behavior in buying of durable products. The study paper entitled “Buyer Behavior of Home
results found that household buying decision Appliances with special reference to Microwave
behavior is better explained in the context of a Products in Bangalore City” explored the market
theoretical network of systemic household condition and consumer behavior towards the
relationships rather than through a series of purchase of microwave durable electronic product.
bivariate family relationships. The study results that, 1. Electronics industry was
in its nascent stage of development till the 1970s. 2.
Benedict et al., (1999) in their study working paper Today, it is one of the fastest growing industries in
entitled “Consumer Behavior Research in the country. It has experienced a fast
Emerging Consumer Markets: The Case of the transformation towards the end of the century,
Optimum Stimulation Level in South Africa” which leads to the complete revolution in the
highlights the measurement invariance and Indian electronic sector. 3. Common consumers
nomological relations involving OSL in one of perceived Microwaves as a luxury item so it has to
Africa's most important ECMs - South Africa. change their perception in a big way in creating the
Their finding says that, many respondents are market potential. 4. All buyers are having different
challenged severely economically and tastes, likes, and dislikes and adopt different
educationally, many have probably never had a job behavior pattern while making buying decisions.
and some are illiterate and the results provide
evidence on the cross-cultural generalizability of Analysis
OSL and exploratory consumer behavior theory. Multiple Regression Analysis
They found a high degree of stability in the OSL The following analysis shows the relationship
structure across these four major ethnic groups in between the respondents’ level of influencing the
South Africa. buying behavior of durable electronic products and
the eleven independent variables that were studied.
Johnson and Selnes (2004) in their research article It was found that, all the eleven variables were
entitled “Customer Portfolio Management: toward closely associated with the level of influencing the
a Dynamic Theory of Exchange Relationships” buying behavior of durable electronic products of
highlights that the management of an entire the Asmarian consumers.
portfolio of customers who are at different
relationship stages requires a dynamic theory of The eleven variables used in multiple regression
exchange relationships that captures the trade-offs analysis are shown below. They are:
between scale of economies and lifetime customer
value. This article contributes to the understanding
 Age  Educational
of relationship management by developing a
qualification
typology of exchange relationship mechanisms and
 Gender  Occupational
a model of relationship dynamics and by simulating
status
the model to provide guidelines for customer
portfolio management. Finally, the study results  Area of  Monthly income
found that a key to the creation of value through residence level
closer relationships lies in bringing weaker  Marital status  Wealth status
relationships into a portfolio in the first place.  Nature of the  Reason for
Another finding is that firms that position family purchase of
themselves toward offerings with low economies of products
scale, such as personal services, must build closer  Size of the
relationships to create value. family
In order to measure the interdependence of the
Sinha and Banerjee (2004) in their research paper independent factors and their total contribution to
entitled “Store choice behavior in an evolving the level of influencing the buying behavior of the

8
respondents in the study area, a step wise multiple products and this is statistically significant at 1%
regression models was used. The results of the and 5% level. The factors like Age, Size of the
analysis (simple regression and inter correlation family, Educational qualification; Occupational
matrix) were put into multiple regression analysis status, Monthly income and Reason for purchase of
and the details are shown in the table below: products are positively associated. On the other
hand, factors like Gender, Area of residence,
Multiple Regression Analysis of Buyers’ Marital status, Nature of family, and Wealth status
Behavior of Durable Electronic Products are negatively associated with the level of
influencing the buying behavior of durable
(Co-Efficient Table) electronic products.

Generally, a buyer can influence through several

sources like Personal influence (Family, Friends,
Neighbours, etc), Commercial influences
(Advertising, Salespeople, Retailers, Dealers,
Packaging, point-of-sale displays), and Public
influence (Newspapers, Radio, Television,
Consumer Organisations, and magazines. The
usefulness and influence of these aspects will vary
by product and by customer. However, according
to this study Asmarian buyers are mostly
influenced by personal variables like age, family
size, education, occupation and income. Hence, the
challenge for the marketing team is to identify
which sources and factors are most influential in
their target market.

References
1. William J. Quails (1987) “Household Decision
Behavior: The Impact of Husbands' and Wives'
The multiple linear regression component Sex Role Orientation”, Journal of Consumer
(Dependent Variable) is found statistically a good Research, September 1987, Vol. 14; page 264-
fit as R2 is 0.6 which shows that the independent 279.
variables contribute 60 % of the variations in the 2. Jan-Benedict, Steenkamp and Steven M.
respondents’ level of influencing buying behavior Burgess (1999) “Consumer Behavior Research
of durable electronic products and this is in Emerging Consumer Markets: The Case of
statistically significant at 1% level and 5% level. the Optimum Stimulation Level in South
The above table indicates that the co-efficient of Africa”, William Davidson Institute Working
factors like Age, Size of the family, Educational Papers Series, William Davidson Institute at
qualification; Occupational status, Monthly income the University of Michigan, 1999, Number
and Reason for purchase of products are positively 251.
associated. On the other hand, the co-efficient 3. Michael D. Johnson & Fred Selnes (2004)
values for the variables of Gender, Area of “Customer Portfolio Management: Toward a
residence, Marital status, Nature of family, and Dynamic Theory of Exchange Relationships”,
Wealth status are negatively associated with the Journal of Marketing, April 2004, Vol. 68, pp.
level of influencing the buying behavior of durable 1-17.
electronic products in the study area. 4. Piyush Kumar Sinha and Arindam Banerjee
(2004) “Store choice behavior in an evolving
Findings & Conclusion
market”, International Journal of Retail and
To measure the interdependent of independent
Distribution Management, 2004, Vol. 32;
factors and their total contribution to the level of
Number 10, page 482.
influencing the buying behavior of the respondent
5. Dr. G. Sudarsana Reddy and Ms. Rajarashmi
in the study area, a step wise multiple regression
P.S (2004) “Buyer Behavior of Home
was used. The multiple linear regression
Appliances with special reference to
component (Dependent Variable) is found
Microwave Products in Bangalore City”,
statistically a good fit as R2 is 0.60 which shows
Indian Journal of Marketing, January 2004,
that the independent variables contribute 60 % of
Vol. XXXIV; Number 1.
the variations in the respondents’ level of
influencing buying behavior of durable electronic