International Business Project | Report

Running head: INTERNATIONAL BUSINESS PROJECT
International Business Project
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Chapter 1 – Introduction...........................................................................................................2
1.1. Background Overview......................................................................................................3
1.2. Problem Statement................................................................................................................5
1.3. Key Research Aims and Objectives..................................................................................6
1.4. Key Research Questions...................................................................................................6
1.5. How and why has the Project been selected?...................................................................7
1.6. Why is the Project Research Necessary?..........................................................................9
2. Review of Literature...............................................................................................................12
3. Chapter 3 – Research Methods...............................................................................................40
3.1. Research Philosophy.......................................................................................................40
3.2. Research Design..............................................................................................................41
3.3. Conceptual Framework...................................................................................................41
3.4. Data Collection...............................................................................................................42
3.5. Data Analysis..................................................................................................................42
3.6. Sample Size.....................................................................................................................43
3.7. Sampling Technique.......................................................................................................43
3.8. Limitations of the Project................................................................................................43
3.9. Ethical Factors for Consideration...................................................................................44
3.9.1. Voluntary Participation...............................................................................................44

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3.9.2. Informed Consent........................................................................................................44
3.9.3. Impersonal Survey Questions......................................................................................44
3.9.4. Survey undertaken keeping the Convenience of Research Participants in Mind........45
3.9.5. Project not connected to financial or profit Motives...................................................45
3.9.6. Project undertaken in an Honest and Transparent Manner.........................................45
3.9.7. No Bias or Discrimination...........................................................................................46
3.9.8. Online Survey undertaken at a time Convenient for the Research Participants..........46
3.9.9. Secondary Sources properly cited using Harvard Referencing...................................46
3.9.10. No Risk of Harm posed to the Research Participants.................................................46
3.9.11. Confidentiality and Privacy.........................................................................................47
3.9.12. Freedom of Expression................................................................................................47
3.9.13. No Profit Based Publication........................................................................................47
3.9.14. Avoidance of Political Lingo or Jargon......................................................................48
3.10. How is this Research going to be Useful and for whom?...........................................48
4. Chapter 4 – Discussion and Analysis.....................................................................................51
Research Findings......................................................................................................................51
4.2. Discussion.........................................................................................................................106
4.2. Thematic Analysis............................................................................................................115
4.2.1. Social Status influences Spending Behavior and Poor Financial Planning...................115
5.1. Recommendations.............................................................................................................127

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1. Chapter 1 – Introduction
The buying behavior of consumers is a subject of great interest among
international business researchers because this is seen to vary from
customer to customer. Buying behavior is seldom known to remain static and
how it manifests is something that depends greatly on the type and category
of the target audience that a specific business is seen to cater to (Dunn and
Norton 2014). When customers take the decision to spend their money on a
purchase, they usually tend to think long and hard before they actually go
ahead and buy what they want, so that they do not end up regretting what it
is that they buy. Products and services are usually purchased or availed on
the basis of their utility value, their accessibility and their ability to make the
life of the consumer more convenient than what it presently is. The buying
behavior of customers is also something that is seen to depend on the
nature or type of product that is purchased. For instance, customers have a
greater tendency to procure items or products that are needed around the
house compared to products which they like but which they could do without
in the present moment (Brown et al. 2014). As such utility value is the most
important consideration that is made at the time of purchase of a particular
product or service followed by the price of the same. If the product or service
is one that is characterized by a high utility value and if it available for a
reasonable or affordable price, then there will be a tendency among
consumers to make an increased purchase of that product or service
compared to a product that is highly priced and which may not be as useful
to own or to be in possession of (Goldstein et al. 2014).
The spending patterns or trends among consumers is something that is
seen to depend not only on the type or category of the product or service
that is being availed but also on the age of the consumer. For instance, older
customers are seen to make wiser or more pragmatic decisions about the
purchase of a product while younger customers are seen to make purchases

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that are of a random nature (Ackermann and Palmer 2014). Younger
customers usually tend to buy what they like rather than what they need,
while with customers who are older, the tendency is always to ensure that
the money which is spent on the purchase of a product is done so with a
utility or purposeful end in mind. Hence scholars of international business
studies can notice a marked difference between the spending patterns of
older and middle aged customers in comparison to the spending patterns of
younger customers (Goldstein et al. 2014). The youth always live in the
moment, they get easily influenced by popular culture and social media and
as such the type of purchases that they make will not in any given way be
similar to the type of purchases that are made by their parents or
grandparents or very simply, customers who belong to an older generation
(Carrier et al. 2015).
This assignment engages in an investigation of the factors that are
seen to influence the spending behavior of people who are in their youth,
and whose idea of financial planning is quite poor. It is a fact well-known that
youngsters do not plan out their finances with the care and caution that
older people are seen to do, and more often than not, they tend to find
themselves in dire straits in the financial sense of the term, because they
haven’t saved money for a rainy day or because they have been spending
too indiscriminately on items that they took a fancy to but which they did not
really need to buy. In order to gain a thorough understanding of the topic,
the main objectives or aims of the study are drawn up, a number of key
research questions are raised, an in-depth review of literature is undertaken,
the research methods are properly detailed and outlined and the findings of
the study are discussed and analyzed. The study then concludes with a
number of important and useful recommendations that the youth of today
ought to take into consideration if they want to make wiser and useful
choices with regard to their purchases and if they wish to plan their finances
well enough.

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1.1. Background Overview
Spending behavior or buying behavior of customers is something that
needs to be taken cognizance of, not only by businesses catering to the
needs and requirements of their target audience, but by the customers
themselves. Customers need to be in control of their own spending habits if
they want to plan out and organize their finances in the manner desired.
Rash spending can lead to people becoming bankrupt or financially destitute
within a limited period of time and it is something that needs to be limited at
all costs. Businesses, when they pay attention to the buying behavior of
customers will be in a position to understand how products need to be
designed, manufactured and marketed in order to be appeal to the tastes
and preferences of customers. On the other hand, customers must pay
attention to their buying behavior to see how pragmatic they are when it
comes to their spending habits or when there are certain changes that they
need to bring about in this respect, so as to be able to avoid spending their
money on things that they like but which they do not really need.
As mentioned above the buying behavior of customers is seen to be
dependent on two important things, namely, the age of the consumer and
also the type or category of the product that is being purchased. Younger
customers tend to make ready or instant purchases of products while older
customers are generally seen to think things through before they actually go
ahead and make a purchase. They always want to be more careful about
how it is that they spend their money. Younger customers tend to spend
their money on products and services that are visually appealing and which
are likely to bring them instant pleasure while older customers tend to focus
on products that actually give value for the money or rate at which these are
made available in the market. The category or type of the product or service
that is being availed is also something that has a very strong influence on
the way that the behavior of the consumer manifests, at the time of
purchase. For instance, when it comes to a real estate purchase or

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investment, customers exercise a good deal of time, patience and caution
before they go through with the deal. The same can be applied when it
comes to the purchase of a service as essential as life insurance or medical
insurance. Customers, regardless of their age, tend to think things through
and opt for an insurance scheme or a type of profit that is in keeping with
the budget that they have in mind for the purchase and which is also likely to
reap good returns over the long term. All of this goes to show that the buying
behavior of customers is a complex and that there are many factors that are
likely to influence the buying behavior of consumers, regardless of the place
or location where the purchase is carried out.
The youth of a country or nation are for the most part characterized by
vibrant tastes, willful choices and a spontaneous tendency to spend money
as and how they deem it fit to do so. The youth are usually quite carefree
about the way by which they spend their money especially if they are in their
early twenties and do not have dependents or family members to take into
consideration at the time of spending. The youth of a country thus tend to be
far more precarious when it comes to making a purchase. They buy the
things that their heart desires, and more often than not spend their money
on items which later prove to not be of much value to them. The factors that
have an impact on the spending habit of the youth is something that
therefore makes for an interesting topic of investigation. It is a subject that is
worth studying in detail so that both youthful consumers and businesses that
cater to a youthful audience can benefit upon taking cognizance of such
behavioral trends. By taking a look at their own spending behavior, the youth
can analyze and understanding whether or not they are being impulsive
about their purchases, where it is that they need to cut down on spending
etc., while businesses can gain an understanding of how better they can
address the needs, requirements and the demands of their target audience,
especially if their target audience is seen to comprise primarily of people