Consumer buying behaviour: the roles of price, motivation, perceived culture importance, and religious orientation

Consumer Behaviour issues have become more heterogeneous because of cultural differences. This phenomenon makes it progressively important to understand factors impacting it. As such, this study examined the determinants of consumer buying Behaviour among Saudis and expatriates living in Riyadh; this study discovered the role of price, motivation, perceived culture importance and religious orientation toward consumer buying Behaviour. The study utilises survey questionnaire for data collection from car agencies in Saudi Arabia. The data is analysed using Partial Least Squares (PLS-SEM) technique to test the hypotheses of the study. The empirical findings confirmed the direct relationship between price, motivation, perceived culture importance and consumer buying Behaviour. Besides, price and perceived culture importance were found significantly related to religious orientation. However, contrary to the hypotheses, it is found that the mediating role of religious orientation in the relationship between price, motivation, perceived culture importance and consumer buying Behaviour is not supported. The result is discussed in the context of addressing consumer buying Behaviour in Saudi Arabia. Corresponding author: Abdul Halim Abdul Majid Email addresses for corresponding author: editor@aessweb.com First submission received: 7th November 2017 Revised submission received: 4th February 2018 Accepted: 3rd May 2018 Introduction Nowadays there is a growing interest in the importance of consumer behaviour in the field of marketing. In today’s era of the ever-changing business environment, marketing becomes an important part of any organisation or business (Kaplan & Haenlein, 2009, Sangroya & Nayak, 2017, Singh & Islam, 2017). It contributes greatly to the success of an organisation, enable the creation of business awareness and enhances the level of customer relationship (Verhoef, 2003). Therefore, organisations cannot accomplish their objectives if they have scrawny marketing strategies. And when it comes to marketing strategies, the customer is always bound to be the core. From this, customers have a very crucial role in the success of any organisation since they are the people who generate revenue for the organisation by buying, using and influencing others to buy their products and services (Khaniwale, 2015). Hence, the aim of understanding consumer buying Behaviour is to know the buying decisions of consumers as well as to understand the steps involved in such decisions. Consumer Behaviour is more than just the physical purchase of products but rather covers a wide range of activities from the problem awareness stage through post-purchase Behaviour, ideas formulation, or experiences to satisfy their needs and desires (Orji, Sabo, Abubakar, & Usman, 2017). As the starting point of marketing strategy, any purchasing decision starts from the opportunity available for any products or services in the market aims to study the market and the customer as well (Kotler, 2010). To do so, many scholars were searching consumer buying Behaviour, as it is needed to be covered and investigated, especially in the third world countries rather than developing countries context (Echtner & Prasad, 2003, Lai, 2016, Sangroya & Nayak, 2017, Chowdhury & Shil, 2017, Khanfir, 2017). The theoretical framework of the current study is grounded on Journal of Business and Retail Management Research (JBRMR), Vol. 12 Issue 4 July 2018 www.jbrmr. com A Journal of the Academy of Business and Retail Management (ABRM) 178 the theory of reasoned action (TRA) which was established by (Fishbein & Ajzen, 1975), which is extended afterwards by Ajzen (1988) to the theory of planned Behaviour (TPB), however, this research applies TPB for the foundation. Preceding studies concentrated on the key constructs of the theory such as attitudes, subjective norms and intentions without adding external variables (Warburton & Terry, 2000). Consumer Buying Behaviour In the marketing context, it is quite difficult to make a purchase decision as a result of so many available options. Consumer Behaviour entails the study of people ’s needs, motivations, and thought processes used in choosing one product over another and the patterns of purchasing different goods and services (Orji et al., 2017). There are several factors in the background playing a significant role to take customers to the final decision. Therefore, it is very crucial for the marketing team to understand the factors that influence the customers purchasing process and buying decision (Khaniwale, 2015, Noel, 2017, Al-Salamin & Al-Hassan, 2016). In doing so, this paper tests empirically the relationship between various factors including Price, Motivation, Perceived Cultural Importance and its impact on the consumer buying Behaviour in Saudi Arabia. As there is no sufficient empirical research done on it. This study also incorporates religious orientation as a mediator on the relationship between Price, Motivation, Perceived Cultural Importance and consumer buying Behaviour. Even though, the succeeding movement of consumer protection has enabled the urgent needs to detain the buying decisions of consumers and how consumers make their consumption decisions. Consumers’ preferences have been transforming over a prior of time with evolving trends and fashions. However, research to study the consumers buying Behaviour will reveal consumers’ preferences, and it will help marketing managers to evolve their marketing strategies align with consumers’ preferences. Therefore, this study is important for marketing officials and those firms which are doing business in KSA and particularly in Jeddah for effective market segmentation. Price Price refers to an element of exchange, or a deal that takes place among two parties normally indicate as a buyer and a seller, it denotes as what must be given up by the buyer to the seller to attain something presented (Ejye 1997). The impact of price and purchase Behaviour depends on the choice of the decisions, but, other factors can also influence, such as testimonials, price insensitivity, and willingness of a brand to be the favourite (Story & Hess, 2006). The techniques of sales promotions affect consumers before deciding; consumers consider whether a promotion exists that helps to decide which product to purchase when two products are equally attractive (Alvarez & Casielles, 2005). DelVecchio et al. (2007) invented that price frames affect perceptions of consumers’ promoted price and the value they carry at the promoted price. Previous studies have proved the effect of price on consumer buying Behaviour (Al-Salamin & Al-Hassan, 2016, Aschemann-Witzel, Jensen, Jensen, & Kulikovskaja, 2017, Huck & Wallace, 2015, Waheed, et.al. 2017). Based on the earlier discussion, the following hypotheses have been proposed: H1a: There is a relationship between price and consumer buying Behaviour H1b: There is a relationship between price and religious orientation H1c: Religious orientation mediates the relationship between price and consumer buying Behaviour. Motivation Maslow articulated the hierarchy of needs according to the five ranks of important needs. The elementary needs come at the bottom of the hierarchy which is physiological needs while at the top of the hierarchy are the needs of self-actualisation. Nonetheless, these needs do not need to be completely fulfilled. It is a global dilemma that the more we get, the lesser the proportion of satisfaction will be which is essential for upper needs to arise (Anderson et al., 1998). Above and beyond motivation, the decision-making process of the consumer is affected by numerous other factors in real life (Svatosová, 2013). Therefore, marketing experts should apprehend such effects and their relative importance permissible to be capable of making effectual marketing strategies. At this juncture, a significant role played by social conditions, demands and supplies, habits, and finally the selling techniques as well as technology. Staring from the thought process of buying till the purchase decision, the job of a marketing specialist is to recognise the process of stimulation in customers’ mind. Journal of Business and Retail Management Research (JBRMR), Vol. 12 Issue 4 July 2018 www.jbrmr. com A Journal of the Academy of Business and Retail Management (ABRM) 179 Moreover, the factors which influence consumer Behaviour divided into two groups, external and internal factors. External factors comprise of cultural, social and demographic factors while the internal factors contain subjective and psychosomatic factors. However, purchasing decision of each individual is inspired by four psychosomatic factors, which are; learning, motivation, perception, and attitude. From this, motivation is one of these factors that play a significant role when customers decide for ultimate purchase. However, it epitomises one of the factors which influence consumer buying Behaviour (Orji et al., 2017). Based on the earlier discussion, the following hypotheses have been proposed: H2a: There is a relationship between motivation and consumer buying Behaviour. H2b: There is a relationship between motivation and religious orientation. H2c: Religious orientation mediates the relationship between motivation and consumer buying Behaviour. Perceived Cultural Importance Keesing (1981) defined culture as a collective system of aptitude between a group of people involving individual’s beliefs, norms, values, and Behaviours. The ultimate outcome of culture is a set of beliefs which frequently detained by members of the culture. For instance, Prentice and Miller (1993) in their study found that merely a small proportion of college freshmen discover drinking alcohol is pleasant, while the most of them believed that majority of other freshmen adore drinking alcohol. In another research on personality by Terracciano et al. (2005), individuals from 49 cultures regarded a typical membe