CHILDREN OF MARY IMMACULATE COLLEGE

22 Maysan Rd, Valenzuela, 1440 Metro Manila

FACTORS AFFECTING CUSTOMERS BEHAVIOR ON BUYING PRODUCTS

AND SERVICES AT LMR BAKERY COUNTRYSIDE

ATANACIO, MICHELLE

BARDE, NAHUM

CARPIO, JAZEL ANNE

ESTEBAN, KRISTIAN KYLE

GARDOCE, MICHAELLA

SORIANO, EDRIAN

FEBRUARY 18, 2020

 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

The customer is the foundation of any business' success.

Customer sets standards and preferences when it comes on purchasing

the product and service they wanted. The target audience depends on the

products and services that the business owners’ offering. Customers might

be young professionals, teenagers, parents or students. It is beneficial for

the business owners to know and understand customer’s preferences

before buying since it allows the business owners to create an even

stronger experience. One of the primary goals of any marketing strategy

should be to identify and meet the needs of the consumer. Providing great

customer service and good quality product will satisfy both the business

owners and the target market. Customers get proper service while the

business owners get proper revenue.

According to Shah (2010), consumers’ behavior refers to

the selection, purchase and consumption of goods and services for the

satisfaction of their wants. In buying products or services, there is always a

 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

reason why did an individual purchase that product or service and who

might influenced them on buying it. Consumers’ response has difference

for the same product, services, price and promotion. The researchers' aims

to understand what are the factors that affect consumer’s decision-making

process in buying products and services then how it affects individuals’

behavior.

Consumers buying behavior and decision-making on

buying products or services are strongly influenced by cultural, social,

personal and psychological factors. These factors caused customers to

develop personal product and service preferences. Also, consumer’s

behavior affecting by these factors should be carefully monitored

considering that there might be some changes with it. Culture factor has a

great impact on individuals’ product and service preferences. People react

based to the culture to which they belong, what they see from their

childhood automatically considered as culture. Every individual has

different sets of habits, beliefs and principles which can be developed from

family status and background. Social factors can be classified as reference

group, role in the society and social status. Every individual has someone

around them that can influence every decision that will be made
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Personal factors also influenced persons' buying decisions by

personal characteristics that are unique to each individual such as age,

occupation, gender, stage of life cycle, economic conditions, lifestyle and

personality. Personal characteristics are one of the reasons why

individuals’ preferences are changing continuously since the situation

changes too. The dominants of psychological factors include motivation,

perception and learning. It is difficult to measure considering the dominants

can change frequently. An individual comes to know about a product and

service only after he/she uses it. An individual who is satisfied with a

particular product or service will show capability of buying the same

product again.

Think before spending, this makes an individual a wise

consumer. The list of human needs and wants is endless and constantly

changes based from what is popular. Understanding the following factors

can make different business organization have the opportunity to develop

their marketing strategy. If the business organization failed to identify

different factors and analyze how the target market will respond to the

product or service, then the company might face trouble or worst, leads to

temporarily shutting down of the business.

 CHILDREN OF MARY IMMACULATE COLLEGE
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Conceptual Framework

INPUT PROCESS OUTPUT

Current Marketing Descriptive Research Identify and

Strategy understand the
Gathering Data different factors to
Different factors be able to think of
affecting new marketing
Questionnaire strategies to
maintain loyal
Customers need and Observations customers.
wants that should be
satisfied
Interviews
Customers preferences
Statistical tools such
as percentage and
graphs

Figure 1.INPUT-PROCESS-OUTPUT
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22 Maysan Rd, Valenzuela, 1440 Metro Manila

Statement of the Problem

This study aims to investigate how factors affect the behavior of

the customers on choosing products and services. Specifically, the

researchers would like to answer the following questions:

1. How does the demographic profile affecting the customers’ behavior in

choosing a product or service at LMR Bakery Countryside?

2. What are the factors that affect customers’ behavior on buying products

and services at LMR Bakery Countryside?

3. How customers’ family, friends and the community do affect the

decision on choosing a product and service?

Hypothesis

1. Consumer behavior can be affected by several factors. It can be

different from person to person based on his age, income, sex,

education and marital status. The researchers assume that the availability of

products is available to all since the business owners make a survey to

all prospects customers.

 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

2. Factors that affect customers’ behavior on buying products and services

such as social, cultural, personal and psychological.

3. Family plays an important role in most of our buying decisions. Our

selections are based upon several important considerations, many of them

influenced by our families and our roles in them. Whether it is your fashion

or food, family and friends are bound to have a limited but certain influence

upon your choice.

Significance of the Study

The results of this research study will generally contribute

to LMR Bakery Countryside and specifically to the following:

a. BUSINESS OWNER, in charge in making decisions in LMR

Bakery Countryside. Business owner are going to think of

another strategy to attract new and more customers and the

current customers will be stayed loyal to LMR Bakery

Countryside.

b. STAFF, knows how to take good care of loyal customers and

gives good quality service. Staff is following what the business

owner told them to do. Running the errands of the business and
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22 Maysan Rd, Valenzuela, 1440 Metro Manila

usually having a physical contact with the customers

considering they know how to react on different attitudes of

customers they might encounter.

c. CUSTOMER, are the key to success of a business. The

customers are able to give reactions or feedbacks about how

good are the quality of foods and services in LMR Bakery

Countryside,

d. COMMUNITY, study aims to inform every individual that there

are such factors affecting consumers buying behavior.

e. RESEARCHERS, will have a deeper understanding to the topic

and have more knowledge how factors affecting on decision-

making when an individual will buy products and services.

f. RESPONDENTS will ask their selves what are their preferences

when buying a product or service.

g. FUTURE RESEARCHERS may find related information that can

help them through conducting their own research papers.

 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

Scope and Delimitations

The study mainly focused on the factors affecting the

customers’ behavior regarding on buying products and services. The

researchers will only provide facts and information that supports the study

The researchers will be able to emphasize the factors on buying products

and services at LMR Bakery Countryside due to customers’ perceptions.

The researchers choose LMR Bakery Countryside customers to be the

subject of their study because it will be easier for the researchers to

conduct a survey and observe the subject’s behavior.

The study will be conduct at 132 Maysan Road Valenzuela City.

There will be thirty (30) respondents that will be involved in the study.

Specifically, fifteen (15) female customers and fifteen (15) male customers

will be encountered during the survey. They are the selected respondents

considering the study is mainly focuses on the factors affecting customers

behavior in buying products and services specifically to those customers

on the said branch of bakery.

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Definition of Terms

a. Customer - The customer is the buyer of the sellers’ product

for resale who purchased from through a wholesaler or other

intermediate reseller. Customer is important in business

because without them, business have nothing to offer in others,

business often honor the adage " the customer is always right"

because happy costumer are more likely to award repeat

business to companies who meet or exceed their need,

although consumer are defined as those who consume good

and service.

b. Customers’ preferences - Customer preferences always have

expectations, likes, motivation, and inclinations that drive

consumer purchasing decisions. This satisfaction with those

costumers after they've purchased the item. Consumers’ value

can be determining by how consumer utility compares between

different items. These preferences of consumed are dictated by

their personal taste, culture, and many other factors.

 CHILDREN OF MARY IMMACULATE COLLEGE
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c. Marketing Strategy - Combines all of marketing goals into one

comprehensive plan for reaching prospective consumers and

turning them into customers of the products or services the

business.

d. Customers’ Behavio - Is the study how individual customer,

groups or organizations select a good and service to satisfy

their needs and wants. It renders the actions of consumers in

the market place some consumer play various role in the market

place, the customers buy particular products their need in the

market place and how best to present the goods and product to

the consumers.

e. Decision-Making - the process of coming up with a solution, an

option, or a choice. A good example is the decision-making of

the Management to gain profit by investing to larger projects.

Decision-making is the process of choosing, it helps the

researchers to determine how does costumer decided on what

they want to buy and how costumer choosing a product. This

has helped researchers to determine how well consumers value

the product.
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f. Cultural Factors - circumscribe the lay of moral values,

traditions, languages, beliefs, nation, community or other

defined group of people. The researchers used cultural factors

to conduct how consumers are optimizing their product selection

behavior.

g. Social factors - refers to belief, social status, values,

communication and other social factors which influences

someone's life style. It helped the researchers to determine

what a consumer's behavior would be according to his or her

state of life or how he or she would interact with the person.

h. Personal Factors - strongly influences their buying behaviors.

It refers their occupation, age, income and lifestyle. It helped

researches to know the behavior of the costumers by their

status in life and by their age. Its like the social factors, they

defined themselves by their income. For example the rich and

poor person, poor individual can't buy the branded product and

the rich individual can buy branded and high quality products.
 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

i. Psychological Factors - is just like the social factors, its

influence their mental states. It helps the researchers to

determine their attitudes or behavior by their mental state on

buying products.
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References

Shah, A. (2010).Factors Affecting Consumer Behavior. Retrieved from:

https://productmanagement.buzz/index.php/2010/07/27/factors_affecti/

Radu, V. (2019). Consumer behavior in marketing – patterns, types,

segmentation. Retrieved from:

https://www.omniconvert.com/blog/consumer-behavior-in-marketing-

patterns-types-segmentation.html

Plaza, M., Sangalang R.A., and Siochi, J. (2017). Factors Influencing

Consumers’ Impulse Buying Behavior in the Fifth District of Cavite.

Retrieved from: https://xsite.dlsu.edu.ph/conferences/dlsu-research-

congress-proceedings/2017/EBM/EBM-I-005.pdf

Salvador, L. (2013). Determinants of Purchase Decisions and Consumers’

Willingness to Pay for Green Products. Retrieved from:

https://ejournals.ph/article.php?id=2305
 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

Vijalakshmi, S. and Mahalakshmi, V. (2013). An impact of consumer

buying behavior in decision making process in purchase of electronic

home appliances in Chennai (India): an empirical study. Retrieved from:

https://www.researchgate.net/publication/322931336_An_impact_of_cons

umer_buying_behavior_in_decision_making_process_in_purchase_of_ele

ctronic_home_appliances_in_Chennai_India_an_empirical_study

Mashao E.T and Sukdeo N., (2018). Factors that influence consumer

behavior in the purchase of durable household products. Retrieved from:

https://www.researchgate.net/publication/326994769_Factors_that_influen

ce_consumer_behavior_in_the_purchase_of_durable_household_product

Cabiao, C. (2013). 4 factors explain Filipino buying behavior. Retreived

from: https://www.rappler.com/business/38219-4-factors-explain-filipino-

buying-behavior

Fontanella, C. (2020). A Beginner's Guide to Customer Behavior Analysis.

Retrieved from: https://blog.hubspot.com/service/customer-behavior-

analysis
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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies after the

detailed search done by the researchers. The purpose of this literature

and study review is to provide the readers with the general overview about

what are the factors affecting customers’ behavior on choosing products

and service.

INTRODUCTION

Radu (2019), defined consumers’ on her blog Consumer

behavior in marketing – patterns, types, segmentation as the study of

consumers and the process used to choose, use and dispose of products

and services, including consumers’ emotional, mental and behavioral

responses. Studying consumer behavior is complicated but it is important;

these way business owners can understand what influences consumers’

buying decisions. By understanding how consumers decide on a product

they can identify the products that are needed and in demand. Also,

business owners can change the company’s’ marketing strategy. Studying

consumer behavior also helps business owners decide how to present

products in a way that can persuade the customers to purchase and

continue to buy the product.

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RELATED STUDIES

LOCAL STUDIES

In the study Factors Influencing Consumers’ Impulse Buying

Behavior in the Fifth District of Cavite conducted by Plaza, Sangalang and

Siochi (2017) in Cavite Philippines, they determined the type of impulse

buying behavior that the customers’ have and stated that there are two

factors: Internal and External factors. Internal factors include sex and net

monthly income while external factors include shopping enjoyment, in-

store atmosphere, in-store browsing, sales person and promotional

approach. The researchers concluded that both internal and external

factors have significant influence to buying behavior of the participants

when buying impulsively.

Salvador (2013), stated a low to moderate influence of personal

, social , economic, psychological factors consumers purchase decision

This means specific items are influential to one demographic but not to

another. Statistical analysis revealed a difference between income groups

and willingness to pay while psychological and economic determinant

were found to be significantly related to willingness to pay for green

products. This means affordability, income adequacy, motivations and

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environmental concerns are positively linked to willingness to pay. This

study added to the literature of green consumer behavior and provided a

consumers’ viewpoint to aid in the development of marketing strategies.

FOREIGN STUDIES

Thapa, 2012: Vijayalakshmi and Mahalkshmi, 2014 stated that

customers’ behavior study is based on consumer buying behavior, with

the customer playing the three distinct roles of user, payer and buyer. The

authors of this study revealed the factors that affects customers behavior

and these are: Personal, Special, Cultural and Psychological Factors.

After conducted a survey, the researchers determined that all the factors

that is stated above are strongly influencing customers’ behavior of Indian

consumers.

Mashao and Sakdeo (2018) identified that the product quality, products

features, cost of the product, brand reputation, advertisement and

previous experience on the product are affecting customers’ behavior on

choosing or buying products and services. Questionnaires were used as a

method for data collection and 60 respondents were considered.

Hypothesis testing was used as a method of analysis, wherein it was

found that factors stated above are the most common reason of consumer
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buying behavior. The findings indicated that gender has no significant

effect on their buying behavior.

RELATED LITERATURE

LOCAL LITERATURE

According to Cabiao, (2013), on her article 4 factors explain

Filipino buying behavior, Filipino consumers could be understood by

analyzing their product preference(s) for beauty, hygiene, health and

convenience. Cabiao (2013) shows what is matter to the local consumer,

Filipinos, when it comes on making decision on purchasing these are:

Filipinos like to look good, Germ protection need rises, We buy healthy

and Lifestyle to go.

Based on statistical studies conducted, 72& of women like to improve thie

hair and change their complexion. This percentage is supported as the

purchase growth of hair conditioners rises up to 12.6% in hand and body

lotion from June 2009 to June 2013. Also, the purchase of whitening body

lotion grew 8% compared to non-whitening lotion. In terms of being germ-

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free, Filipinos purchased 19% more hand sanitizers and 9% more baby

wipes from the same date. When it comes on being physically fit and

healthy lifestyle, several physical activities are promoted and practiced of

most of the Filipinos. Over the past years, sales of cereals increased up to

17%. 9% in yogurt while 6% in canned vegetable and biscuits. Most of the

Filipinos nowadays wanted to eat food that will not take too long to cook,

so in past five years, growth of purchase in ready-to-drink chocolate drinks

rises up to 21% and 17% in instant pasta. Quick and easy meal purchases

have also increased, 9% in instant noodles, 7% in instant pasta and

canned meat. The statistical study stated that most of Filipinos like to

purchase products that will be beneficial to them and way easier to use.

FOREIGN LITERATURE

Based on Shah, 2010), consumer behavior refers to the selection,

purchase of goods and service for the satisfaction of their wants. There

are several factors that can affect the customers’ behavior such as cultural

factors, social factors, personal factors and psychological factors.

Fontanella (2020) defined customers’ behavior as an individual's buying

habits, including social trends, frequency patterns, and background factors

influencing their decision to buy something. Businesses study customer

 CHILDREN OF MARY IMMACULATE COLLEGE
22 Maysan Rd, Valenzuela, 1440 Metro Manila

behavior to understand their target audience and create more-enticing

products and service offers. Customer behavior can be influenced by

three types of factors: personal, psychological, and social. Personality

Traits, an individual buying behavior is hardly influenced by their

personality, who they are as a person and how they react in different

environments. According to Fontabella (2020), customers psychological

responses is hard to predict for the reason that someone’s response on a

particular situation is based on perception and attitude that can change

every day. While in social trends can be peer recommendations, societal

norms, or cultural fads that are affecting the customer's decision.

SYNTHESIS OF RELATED LITERATURE ABD STUDIES

There are related varieties of literatures and studies providing on

knowing the factors affecting the consumers’ behavior when it comes to

buying products and services. The external and internal factors mainly

affect the consumers’ behavior to buy a goods and services to a specified

business market (Sanglang, et al). But it is specified on their study that

internal factor can greatly affects the consumers’ motivation in buying

products and services as it was simply relying on their net monthly income

during purchases. On some other hand, Shah (2010) introduced four

factors that can greatly influenced costumer's enthusiasm in buying

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products and services which are cultural factors, social factors, personal

factors and psychological factors.

Moreover, in a literature entitled "Filipino centennials: A new breed

of shoppers concerning how Filipino’s behavior in consuming was

affected" by Bong R. Osorio stated that the value is the biggest online

shopping driver, Filipino centennial are trying to e-commerce by managing

spend levels, Filipinos move between online and offline platforms as they

review options, ease and experience are important. Lastly, a study

conducted by a student proclaimed that the emotions consumers attach to

them, the central focus of much of the research dealt with the motivation

that leads to eventual purchased.

The studies and literatures that the researcher

presented were very useful for this study. Both local and foreign literatures

and studies is somewhat linked to each that can be a way for finding the

solution, which is the factors affecting the behavior of the customer on

choosing a product or services. The literature, both local and foreign,

focused on the factors that may affect one's behavior such as social and

cultural factors, personal factors, psychological factors, brand, price and

promotion, ads and communication.

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Given above the foreign and local studies found that the

customer preferred convenient and affordable product and services.

Where bargain item/s may satisfy the customer and also the enjoyment of

the customer may affect their behavior. The more they're happy with the

product or services the more they buy.