Factors Influencing Buyer Behavior in Building Materials Trade

This research report examines the factors influencing buyer behavior in the purchase and use of building materials within the trade industry, with a specific case study on KJW Drylining Ltd. The report begins with a research proposal outlining the research aim, objectives, and questions, followed by a detailed literature review that explores the concept of buying behavior and various internal and external factors affecting consumer choices, such as economic conditions, regulatory changes, organizational goals, and structure. The methodology includes primary and secondary research methods, including surveys, to gather data. The report analyzes data, presents findings, and offers recommendations for attracting a larger customer base, emphasizing the importance of understanding buyer behavior in the industry. The report also includes an analysis of the factors that contributes to the project and initial review of literature.

Research Project
1

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
Research proposal............................................................................................................................1
Research project outline specification.........................................................................................1
Research project specification.....................................................................................................2
Matching of resources..................................................................................................................2
Factors that contributes to process of research project selection.................................................3
Initial review of literature............................................................................................................4
Plan and procedure.......................................................................................................................6
TASK 2............................................................................................................................................9
Research report................................................................................................................................9
Validity and reliability of data.....................................................................................................9
Questionnaire for business customers of Kjw Drylining Ltd......................................................9
TASK 3..........................................................................................................................................11
Interpretation and analysis of data.............................................................................................14
Findings and discussion.............................................................................................................23
Make recommendations and justify areas for further consideration..........................................24
REFERENCES..............................................................................................................................25
2

Illustration Index
Illustration 1: Theme 1...................................................................................................................17
Illustration 2: Theme 2...................................................................................................................18
Illustration 3: Theme 3...................................................................................................................20
Illustration 4: Theme 4...................................................................................................................22
Illustration 5: Theme 5...................................................................................................................24
3

TITLE
To assess the factors influencing the buyer behavior in the purchase and use of building
materials in the trade industry Case study on KJW DRYLINING LTD.
TASK 1
RESEARCH PROPOSAL
Research project outline specification
The behavior of consumer is defined as the purchase, selection as well as consumption of
the goods as well as services with the aim to satisfy their requirements. In present era, decision
with respect to purchase is affected by wide range of factors. At the time of buying customer
goes through series of steps. The initial step is related with search for product by the customer as
per their requirement. Following this, the next step is determining price of the product is made.
This is done to know whether the prices of goods are reasonable or not. Lastly, the analysis is
made regarding benefits which can be gained by using the product and thus decision to purchase
is taken by customers (Peter, 2010). There is existence of different factors that has impact on the
buyer behavior of the customers. This is comprised of cultural, personal, psychological as well as
social factors. The role of customers is increasing in determining the success of the organization.
This is due to the reason that, by making sales of the product as per customers need the firm can
creates its effective image in the market. Thus, it becomes essential for the organization to
develop product in accordance with the needs of target audience (Solomon, Russell-Bennett and
Previte, 2012). The culture, sub culture, social class, roles and status have huge impact on the
behavior of buyer towards purchase and use of building materials in trade industry.
In the present report, buying behavior of customers has been discussed with reference to
Kjw Drylining Ltd. The firm offers plastering as well as building services to the clients. There is
greater role of customer buying behavior in this industry. The decision to purchase is largely
influenced by different groups of people and the personal factors. The proposed research
includes primary as well as secondary research. For this, data will be gathered by implementing
several techniques. In addition to this, the report also covers analysis of the views of different
authors on the relevant subject matter.
Research aim
1

The aim of the study is to assess the factors influencing buyer behavior in the purchase
and use of building materials in the trade industry. For the purpose of attaining the aim of
research, certain objectives are required to be fulfilled which are enumerated below:
Research objectives
 To assess the concept of buying behavior in building material and trade industry
 To identify the factors affecting buying behavior of customers while making purchase
 To assess the importance of considering factors affecting buyer behavior by company
such Kjw Drylining Ltd
 To recommend the ways which can be adopted by trade industry to attract large number
of customers
Research project specification
For the purpose of attaining aim under proposed research, various research questions
have been devised which are enumerated below:
 What is the concept of buying behavior in building material and trade industry?
 What are key factors that have adverse impact on behavior of buyers while making
purchase?
 How important it is to consider factors affecting buyer behavior by company such as Kjw
Drylining Ltd?
 What are the alternative strategies that can be adopted by trade industry to attract huge
customer base towards organization?
Matching of resources
The proposed research aims at assessing the factors influencing buyer behavior in the
purchase and use of building materials in the trade industry. It provides detail knowledge
regarding the factors that have potential impact on the buyer's decision making for purchasing
and using products provided by Kjw Drylining Ltd (Del Aguila-Obra and Padilla-Melendez,
2006). For the purpose of making analysis, technique of survey has been taken into account as it
would assist in gaining deeper insight in the subject matter under research. The objectives of the
proposed research developed by researcher are as under:
 To assess the concept of buying behavior in building material and trade industry
 To identify the factors affecting buying behavior of customers while making purchase
2

 To assess the importance of factors affecting buyer behavior by company such as Kjw
Drylining Ltd
 To recommend the ways which can be adopted by trade industry to attract large number
of customers
Research questions on the basis of objectives framed are below:
 What is the concept of buying behavior in building material and trade industry?
 What are key factors that have adverse impact on behavior of buyers while making
purchase?
 How important it is to consider factors affecting buyer behavior by company such Kjw
Drylining Ltd?
 What are the alternative strategies that can be adopted by trade industry to attract huge
customer base towards organization?
Factors that contributes to process of research project selection
While making selection of research project, there existed certain factors which can
contribute in the study. In this regard, the major factor is the interest of the researcher. Further
with this, the analyst can carry out the analysis in an effective manner as he possesses interest in
the particular field (Dawes, 2008). In addition to this, because of lack of studies on particular
topic the researcher showed his interest in analyzing factors that affects the buyer’s behavior in
purchase and use of building material in trade industry. With the assistance, researcher can gain
knowledge regarding the phenomenon under the study. Furthermore, there are varied other
factors that affects the individual buyers behavior at the time of purchase and use of building
material in the trade industry such as cost, convenience and job prospects. All such factors help
in affecting the buying decision at the time of purchasing building materials. For instance, cost is
the factor that affects the buyer behavior because if the materials are available at the costly prices
then individuals are not able to purchase it and thus it affects the decision making process.
Similarly, convenience at the time of purchasing the material is essential otherwise it affects the
buying behavior of people.
Initial review of literature
This is considered as an essential section in any research. In this part, the researcher
performs deeper analysis on the subject matter. Under this, the information is collected through
3

secondary sources. This is considered as the basis with which further research is being carried
out. This part of research assists in building theoretical base in relation with the subject matter
under study. The section makes critical analysis of the information through which research gap
can be determined in an effective manner.
Concept of buying behavior
The buying behavior concept can be stated as the sum total of the attitudes and beliefs of
customers their preferences, intentions as well as decisions regarding the behavior of business
customers in order to make the purchase of goods and services. As per the view of Chen and
Barnes, 2007 it can be determined that the buyer behavior is a systematic approach that needs to
be followed by clients. It is done at the time customers enters the purchase process as well as
they make decisions to purchase the product (Chen and Barnes, 2007).
According to the opinion of De Mooij, 2010 consumer behavior is defined as the branch
which is concerned with varied stages through which customer goes. This is when customer goes
through before making any purchase of products and services for the end use (De Mooij, 2010).
However, consumer buying behavior can be effectively defined as the study on varied ways in
which individual clients, groups as well as business is required to select, purchase and use as
well as dispose the ideas in order to deliver effective products and services to clients and satisfy
their needs. Buying behavior can be effectively defined as the action of customers within the
market and different action in order to achieve them. However, it can be stated that buying
behavior of the customers are considered as a complex and dynamic issue which cannot be
defined in an effectual way.
There is standard model of consumer behavior which is comprised of methodical and
structured process. It can be states that habitual buying behavior process starts with the
recognition of need. Under this stage customer makes realization of unfilled need or want.
Further this is followed by the search for information about the particular product and services.
This relates with gathering of information so as to solve the issue. Later assessment is done and
decision is made about the purchase of the products. In addition to this after gaining experience
from purchase of product the decision as to post purchase is taken by the customer.
Factors affecting behavior of buyers
4

There are varied factors present that affect the buying behavior and it majorly impacts the
consumers at the time of making purchase decision. These factors are discussed underneath-
External environmental factors
 Economic conditions- It can be considered as the fluctuation in the money markets and
also the interest rates that have a major impact on the buying strategies of individual.
According to the view point of Young, Hwang, McDonald and Oates, 2010 it can be
stated that the interest rates and organizational buying have an inverse relationship as if
there is an increase in the interest rates it may bring about a decrease in the buying
behavior of clients (Young, Hwang, McDonald and Oates, 2010).
 Regulatory changes- As per the view of it can be stated as any changes in the corporate
laws, rules and regulations it also influences the individual to purchase. There are
different regulatory changes that affect the industry as the buying behavior of individual
changes according to change in new regulations (Factors Affecting Consumer Behavior,
2015).
 Political environment- It can be stated that a change of the government or policy has a
direct impact on the economic scenario and thus it ultimately changes the buying patterns
as well.
 Competition- As per the view of it can be identified that in today's business era
businesses are facing tough competition in order to stay in marketplace. Therefore, when
business adopts new product or service or they attain competitive advantage because of
their suppliers. Thus, it is essential for business to change it trends in order to change the
buying pattern of its clients accordingly.
Internal Organizational factors
 Organizations goals and objectives- However, it can be stated as business goals and
objectives are main components as to assess that clients will be attracted in order to make
the purchase. As per the opinion of Hawkins and Mothersbaugh, 2009 it can be said that
an organization main goal is to deliver quality products and thus they focus on the quality
issues than on price advantage (Hawkins and Mothersbaugh, 2009). Organizational structure- As per the view of Liu, Leach and Bernhardt, 2005 it can be
said that there are different hierarchical and management structures which vary from one
5

business to another (Liu, Leach and Bernhardt, 2005). Furthermore, there are also certain
businesses where the purchase decisions should be taken collectively by all the
departments of firm. Thus, it is essential for business to consider the guidelines in order
to make effectual decisions regarding the organizational structure and attain goals.
Importance of considering factors affecting buyer behavior by company such Kjw Drylining
Ltd
There is greater importance in considering the factors that affects the behavior of buyers.
As per the opinion of Shiau and Luo, 2012 it can be considered that the different factors which
have been identified are important for firm as it affects the buyer behavior in businesses. The
business customers need to make effectual decisions in order to attain varied factors so that
desired goals can be attained. The above identified factors help business to make implementation
of suitable strategies so that individual can make effectual purchase decisions. It is essential for
the business to take into account the factors that affects the buyer behavior in order to develop
the product in accordance with their needs and requirements (Shiau and Luo, 2012). Further this
would results in increasing the demand for the product in an effective manner. In addition to this
such would results in improving the sales as well as profitability of firm in a significant manner.
It has been determined that for the survival of business there is greater need to consider factor
that affects purchase decision as such assist in determining the individual behavior in an
appropriate manner.
Plan and procedure
An Important part of the research is to develop plan and procedure with which the
research can be carried out in an appropriate way. It assists in providing direction to the entire
research. For the proposed research, inductive approach would be used as it provides flexibility
within the structure related with findings as well as procedure of the research. Along with this,
the philosophy that will be employed in the proposed investigation is interpretivism. This is
because; it does not focus on development of hypothesis. There is existence of several methods
through which the researcher can gather information (Sondargaared, 2015). In the proposed
study, both the sources related with primary as well as secondary data collection would be
employed in order to gather adequate amount of data for investigation. In the present research,
primary data would be gathered through the technique of survey by using questionnaire. In this
6

regard, questions will be developed in structured form and would be asked to business customers
of Kjw Drylining Ltd. This includes managers of the different organizations. On the other hand,
secondary information would be collected from books, magazines, online articles as journals.
Further, for the purpose of analyzing the data thematic analysis would be used. In this, themes
will be developed and the responses of the respondents will be presented for the purpose of
drawing valid conclusion for the research.
The plan of the investigation along with the time required to accomplish is demonstrated below:
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12
Writing the research proposal
Reading and understanding the literature
Finalization of the objectives
Drafting the literature review
Collection of secondary data
Analyzing the secondary data
Development of research approach
7

Drafting of research methodology
Formulating the questionnaire
Arranging interviews
Conducting interview
Gathering of information
Findings of the Draft
Evaluation of the data
Finalizing other chapters
Draft findings chapter
Submission to tutor and awaiting feedback
Revising the final draft
Printing and binding
8

Submit
TASK 2
RESEARCH REPORT
Validity and reliability of data
For the purpose of accomplishing the research in an effective manner there is greater
importance in maintaining validity as well as reliability of information by the researcher. In order
to ensure this, the collection of data has been made from authenticated sources. For the purpose
of maintaining the validity, the researcher is required to make use of sources which are valid.
Further, it is important to conduct the investigation with the provided specification as such it
would act as an aid in drawing effective results from the research (Creswell, 2013). Along with
this, investigation needs to be carried out by taking into account ethical issues. Further, there is
greater importance in keeping the information which is gained from the managers of business
confidential. It is essential to implement research tools in an appropriate manner as such it will
result in collection of appropriate information (Crossman, 2014). In the proposed research,
analysis of data would be carried out through qualitative technique which includes thematic
analysis. For the purpose of gaining responses, questionnaire will be developed.
Questionnaire for business customers of Kjw Drylining Ltd
For the managers
(Kindly take few minutes to provide your responses. Your feedback is appreciated)
Demographic information
Name:
Age:
20-25 □
25-30 □
30-35 □
35-40 □
9