Buying Behaviour of Hong Kong Consumers on Small Electrical Appliances

A STUDY OF THE BUYING BEHAVIOUR
OF HONG KONG CONSUMERS ON
SMALL ELECTRICAL APPLIANCES

TABLE OF CONTENTS
TABLE OF CONTENTS...................................................................................................................2
INTRODUCTION................................................................................................................................4
Background Information..................................................................................................................4
Statement of the problem.................................................................................................................4
Research aim and objectives............................................................................................................4
Research questions...........................................................................................................................4
Significance......................................................................................................................................5
LITERATURE REVIEW.....................................................................................................................5
Price and product design..................................................................................................................5
Advertising by considering factors like Durability and price..........................................................6
Ease of use feature of product..........................................................................................................6
Brand image by word of mouth........................................................................................................7
Relationship between concepts and consumer behaviour................................................................8
There is significant difference in male and female buying behaviour.............................................8
Research methodology.........................................................................................................................9
Introduction......................................................................................................................................9
Research design................................................................................................................................9
Data collection..................................................................................................................................9
Sampling method............................................................................................................................10
Data analysis...................................................................................................................................10
Reliability and validity...................................................................................................................10
Ethical consideration......................................................................................................................10
Limitation of research....................................................................................................................10
Data analysis.......................................................................................................................................11
Characteristics of sample................................................................................................................11
Gender distribution of respondents................................................................................................12
Age distribution of respondents.....................................................................................................12
Income distribution of respondents................................................................................................12
Education level distribution of respondents...................................................................................12
Occupation distribution of respondents..........................................................................................13
Descriptive statistics.......................................................................................................................13
Ease of use feature of product........................................................................................................15

Brand image by word of mouth......................................................................................................16
Hypothesis......................................................................................................................................17
Discussion, conclusion and recommendation....................................................................................18
REFERENCES...................................................................................................................................20
............................................................................................................................................................21
Questionnaire......................................................................................................................................21

INTRODUCTION
Background Information
China is now one of the leading electronics and electrical appliances consumer markets in
the world. As the purchasing power of residents, especially the middle class, continues to rise, the
demand for high quality small home appliances is considerable that is capable of meeting their daily
requirements and ultimately, raising living standards. While information technology products such
as smartphones are immensely popular on the mainland at present. The scale of small household
appliances still occupies an important position in nation’s electronic and electrical product market.
In Hong Kong, there are substantial number of manufacturers and traders engaged in handling these
products and they are devoting considerable efforts in developing the medium to high end of
market. Hong Kong trade development council recently conducted a questionnaire-based survey
with regard to the small home appliances in market. Findings of survey were the demand of middle
class consumers for small kitchen appliances which ranges wide, running from electric pressure
cooker, induction stoves and coffee machines, to electric stewing pots, yogurt makers and noodles
makers.
Statement of the problem
Research is conducted to know the buying behaviour of consumers on small electrical
appliances and to collect information on the way to increase competitiveness of the market in
intense competition
Research aim and objectives
Aim of research is to investigate the buying behaviour of customers of Hong Kong on small
electrical appliances.
1. To identify the factors affect consumer buying behaviour
2. To analyse the relationship between factors identified and buying behaviour.
3. To suggest recommendations based on the research results.
Research questions
1. What are the factors affecting consumer buying behaviour?
2. What are the factors identified in the relationship between buying behaviour ?
3. Suggest some recommendations based on research result.

Significance
The study aims to provide useful information for product and market development to attract Hong Kong consumers through the study of buying
behaviour on small electrical appliance. There are many brands in Hong Kong selling small electrical appliances including German Pool, Tefal,
Kenwood, Fortress, Braun, Philips, Cuisinart, etc. Therefore, information on the way to increase competitiveness in intense competition would be
useful.
LITERATURE REVIEW
Product design
According to Solomon, (2014) price and product design is the factor to which people give due importance while selecting any product. This is
because people have common intention to purchase products that have good design. Due to this reason now, a day’s more and more people are
attracting towards such kind of products at rapid rate. Economic condition of the nation and turmoil in global economy as well as failure of government
authorities are the one of the main factors that motivate people to buy cheaper products relative to dearer one. Andreyeva, Long and Brownell, (2010)
state that people tend to buy technologically advanced products and their spending on premium products also enhanced and along with this they also
want to buy product that appear good in design. This is because people lifestyle changed at fast rate and due to this reason they are prepared to spend
more and more money in order to maintain their status and lifestyle. This create an opportunity for the firms as multiple segments of customers
originate in the market on which firm can focus in single time.
Contrary to this Gottwalt and et.al., (2011) state that there are large number of customers that are purchasing products at low price and they will
not prefer to buy highly priced item which have good product design from the market. Economic condition of nations are not good. However, situation
become improved in comparison to previous years but still there is need to make economic environment better. Due to these poor economic conditions,
less jobs are created which have direct impact on people saving rate. This play decisive role in motivating customers to buy products at low price and
ignore highly priced products that have good design.

Advertising
As per views, of Ferraro and Price, (2013) there are number of firms that are doing advertisement of products by using number of factors. Apart
from this, price that heavily influence people purchase decisions and considered while advertising products. This is because customers not only want to
buy cheaper products but they also want durable products. By advertising products in specified manner through varied channels of communication like
TV, radio and online platform customers are attracted to buy a product. In current period customers, give priority to both price and durability of product
and due to this reason advertisement must be based on these two factors. Integrated advertisement must be given through all channels of advertisement
like TV, radio and online platform etc. It is very important to show in advertisement that product of the firm is durable and cheaper.
As per views of Cantallops and Salvi, (2014) in current time period firms that are advertising product through online platform are heavily
influencing consumer behaviour of people. This is because customers talk about products online and through use of advanced technology firms track
that communication and identify opinion that customers have about their products.
Ease of use feature of product
According to Darley, Blankson and Luethge, (2010) consumer behaviour of people is changing at fast pace and it became puzzling game for the
market players to determine their target customers and to retain them in the business. Apart from ease of use feature is another factor that make
competition more fierce then before. Firms that are dealing in electronic items like Vacuum cleaner are offering more innovative products to the
customers that ensure that people will be able to use products easily. People desired to make purchase these advanced products. This common
behaviour is observed in case of people under which due to low saving rate they strongly make purchase of electronic goods at low price with huge
technology advancement. This change face of competition. This is because earlier price was that factor to which people were giving much importance,
but now people are giving importance to ease of use factor while making purchase decisions. Thus, it can be said that ease of use feature of product
have influence on people buying decisions.
Contrary to this Wilson and et.al., (2012) state that there is no doubt consumer behaviour is changed tremendously in past couple of years and
not people prefer to buy products that are more advanced and have ease to use feature. However, still most of people are giving more important to price

factor then ease of use. This, is because their main objective is to fulfil their needs at any cost and to maintain saving rate at same time. Thus, trend can
be changed or relevant entity can give priority to ease of use over price only when economic conditions of the country will become more stronger then
today.
Brand image
According to Solomon, Russell-Bennett and Previte, (2012) good brand image increase chances of traction in sale of the firm product. Brand
image is a concept, which reflect positive or negative thinking that people have in respect to the product, or services that pass from one customer to
another. All these things create specific image of perception of product among customers about the product and this play decisive role in their purchase
decisions. People now days are giving much importance to brand image that product have in the market. It can be said that there decisions to large
extent are dependent on the positive or negative image is about the product in market. As per views of Schütte and Ciarlante, (2016) brand image and
memory retention power of customers are closely interlinked to each other. Means that whatever any individual hear about the product have strong
impression in its brain. When one goes to make purchase of relevant product then that impression that is about product in human brain works out and
play a decisive on individual buying decisions. Thus, it is very important for managers of the firms to ensure that they are only developing good image
of their products and services among customers.
Contrary to this Goel and et.al., (2010) state, that brand image does not significantly have impact on individual buying decisions. This is
because positive and negative news are prevailed about every product in the market. There are few products, which have good record of delivering
services to the customer and have strong positive image among them. This can be understand from simple example when one goes in the market to buy
a mobile phone one will gather information about different mobiles from varied people. Some people will communicated positive and some will
communicate negative views about product. The result of all these things will be that both sort of image of the specific brand will be created among
relevant person. This thing will be observed in case of other brands also. Hence, it can be said that all brands condition is equal and none of them can
be assumed in superior position. Thus, brand image does not have much influence on individual purchase decisions.

Relationship between concepts and consumer behaviour
Present literature concluded that five factors namely brand image, ease of use feature, advertisement and product design have impact on
consumer behaviour of people. All these factors and consumer behaviour are interrelated to each other. As per views of Chu and Kim, (2011) Past
researches reflect that product design factor determine whether individual will make purchase of product. Apart from this, ease of use feature have
significant impact on individual decisions to purchase a product. Usually, individuals take an advice from experts or friends and relatives before buying
any item. All these things have impact on individual purchase decisions. According to Ye and et.al., (2011) brand image of product and customer
behaviour are closely associated with each other. Firms must consistently make efforts towards developing positive brand image among customers
about product. In this regard, time-to-time changes must be made in the product portfolio and an attempt must be inform customers about these
changes. It is the change in the product design and feature factor as well as brand image that bring variation in consumer behaviour of people. As per
views of Cheung and Lee, (2012) better understanding of consumer behaviour help firms in developing strong marketing strategies and due to this
reason time to time research must be carried out on buying pattern of products by customers and accordingly alteration must be made in marketing
strategy of the business.
There is significant difference in male and female buying behaviour
According to Sattari, S and et.al., (2016) male and female buying behaviour is slightly different. It can be observed that in many homes women
take purchase related decisions. Women can be considered as one of economist of home and their focus is one on increasing saving rate within home.
This is because within specific amount they have to manage all expenses of business. It is possible only to manage expenses when strict control is
maintained on expenses that are made to purchase products for home. Thus, women consider number of factors for making purchase related decisions.
On other hand, males are less involved in making purchase of home products and due to this reason, they are not much informed about expenses that
are made at home. Hence, male often make more purchase and at higher price than females. It can be said that women follow cautious approach while
making decisions.
Contrary to this Solomon, (2014) state that there is no big difference in consumer behaviour of male and female. This is because in today era