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European Journal of Business and Management www.iiste.org
ISSN 2222-1905 !aper" ISSN 2222-2#$9 %nline"
&ol.'( No.5( 2015
'9
Factor Analysis of Consumer Behaviour in Jewellery Business: An
Empirical Study on Bangladesh
Mimnun Sultana !arag Jafar Siddi)ue* Saiful Islam
S+,ool of Business and E+onomi+s( nited International niersit/( ,aa( Banglades,
* E-mail of t,e +orresponding aut,or parag34us.uiu.a+.4d
Abstract
,is stud/ anal/ses ma6or determinant fa+tors t,at drie +onsumers w,ile pur+,asing 6ewelr/ in Banglades,. It is
4ased on fa+tor anal/sis t,roug, a sure/ of )uestionnaire performed using S!SS software. ,e e/ findings
figures out t,ree ma6or fa+tors of +onsumer 4e,aior- %perational and mareting 7a+tors( !er+eied 8ualit/( and
Seri+ea4ilit/ and onforman+e. :dditionall/( result +onfirms ma6or group of +onsumers are middle aged
female ,ousewies( w,o prefers to 4u/ plain gold. Su+, stud/ is rarel/ aaila4le in t,e +onte;t of Banglades,.
7indings are important for t,e entrepreneurs and poli+/ maers of 6ewelr/ industr/.
Keywords: Jeweller/ Business( onsumer Be,aiour( Banglades,( 7a+tor :nal/sis
! "ntroduction
onsumer 4e,aiour is t,e stud/ of ,ow people 4u/( w,at t,e/ 4u/( w,en t,e/ 4u/ and w,/ t,e/ 4u/. It
attempts to understand t,e 4u/er de+ision pro+essesarger 6eweller/ 4usinesses are
+apa4le or offering a larger line of produ+ts to easil/ meet t,e wants of +ustomers( and are a4le to 4e effi+ient int,e operations of produ+tion and distri4ution. Smaller 6eweller/ +ompanies +ontinue to ,ae a ,old in t,e maretdue to t,e fa+t t,at +ost is not t,e main fa+tor in t,eir retail of 6eweller/. ,e/ also offer spe+ifi+ pie+es t,at are
indiiduali?ing to a +onsumer( as well as uni)ue lines.
Banglades, is traditionall/ nown as t,e produ+er of finest )ualit/ gold ornaments and 6ewelleries
wit, long e;perien+e. ,e estimated num4er of artisans in Banglades, ranges 4etween 20 to $0 t,ousands and
,ae e;perien+e ranging from 1-$5 /ears. Banglades, sin+e its in+eption in 19'1 ,as not imported an/ gold till
date. ,e gold so imported was meant to 4e distri4uted t,roug, t,e Jewellers :sso+iation. ,is stud/ wille;plore t,e fa+tors and trends s,aping +onsumer 4e,aiour and t,e wa/s mareters and regulators +an use t,is
information.
Jeweller/ 4usiness +an pla/ a great role in Banglades,i e+onom/. @oweer( t,is se+tor was rarel/
e;plored earlier 4/ t,e resear+,ers. ,e aim of t,is stud/ is to learn ,ow +onsumers per+eie 6eweller/ and ,ow
t,is affe+ts t,eir 4e,aiour. ,e fo+al point of t,is resear+, is in t,e +onsumer and ,is
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e;perien+es( to 4e more spe+ial and uni)ue an?iger( 200A4"( to e;press t,eir personalit/( as a status s/m4ol( or
to fulfil t,eir ps/+,ologi+al needs Nia and Judit,( 2000".
Jeweller/ industr/ is ,ig,l/ +/+li+al in nature and t,at is mostl/ drien 4/ t,e in+reasing wealt,.
Jeweller/ +an 4e defined as +reden+e good. It refers to t,at t,e dominant produ+t attri4utes( su+, as t,e leel of
)ualit/( are ,ard to estimate een after using it( t,us t,e/ are taen 4/ trust. Num4ers of internal and e;ternalfa+tors influen+e t,e pur+,ase 4e,aiour of t,e +onsumer in t,is industr/.
: large e;tent in +onsumers pur+,asing is dependent on t,eir in+ome. ,e +onsumers in+ome as a
so+ial +lass is anot,er internal fa+tor t,at ,as to 4e +onsidered 4e+ause it indi+ates t,e wealt, and status
,ierar+,/ of a person in t,eir so+iet/. u4ois C u)uesne 199$" note t,at in+ome is seen as a fa+tor t,at
+onstraints indiiduals in pleasing t,eir +onsumption needs. ,e role of gender towards pur+,asing lu;ur/ 4rand
produ+ts is +onsidered important from t,e prospe+t t,at women seem to pur+,ase lu;ur/ 4rand produ+ts more
often t,an men( simpl/ 4e+ause women s,op more t,an men. ,e lu;ur/ maret is astl/ in+reasing( and t,ere
,ae 4een signifi+ant +,anges towards +onsumer 4e,aiour.:not,er internal fa+tor( t,at is motiation( refers to a pro+ess t,at will lead +onsumers to do somet,ing
to a+,iee t,eir satisfa+tion. Motiation will influen+e +onsumers needs and wants( w,i+, ar/ oer situations
and time and posed different degree of effe+ts on t,e +onsumer Deid( 2002". It is a +omple; intera+tion( in
w,i+, indiidual responds to t,e different t/pes of internal and e;ternal stimuli Jones and >lo/d( 2005= :mar(
200A". In addition to it( per+eption is anot,er important internal fa+tor sin+e it relates to t,e persons sense ofpersonal identifi+ation and iewpoint @a+le/ and it+,en( 199#". !er+eption is a pro+ess related wit, ,ow+onsumers sele+t( organi?e( and interpret t,e p,/si+al sensor/ elements su+, as sig,t( sounds( and smells.
Normall/( it is lined wit, t,e +onsumers feeling toward t,e t,ing t,e/ want to ealuate Solomon( 200A".
@oweer( personalit/ influen+es peoples responses to t,eir enironment 4ased on t,eir personal
per+eptual( +ognitie( and emotional outloo ole and S+,roeder( 2001= >au and S,affer( 1999". In terms of
lifest/le( it is defined as patterns in w,i+, people lie and spend time and mone/ esi+ and !iri-Da6,( 200$". It
not onl/ refle+ts different modes of liing 4ut also will affe+t +onsumers +onsumption pattern. Moreoer( in
so+ial iew( personalit/ is learned( rat,er t,an in4orn and it mig,t interpla/ 4etween in4orn pro+ess and
enironment influen+e >au and S,affer( 1999". ,at is( lifest/le is deeloped to measure 4e,aiour as a fun+tion
of in,erent indiidual +,ara+teristi+ t,at ,ae 4een s,aped t,roug, t,e so+ial intera+tion of ps/+,ologi+al and
so+iologi+al fa+tors and past e;perien+e esi+ and !iri-Da6,( 200$".
In terms of t,e e;ternal fa+tors( as most people are liing in groups( group influen+e 4e+omes a fa+tor
t,at is a4le to influen+e t,e +onsumer pur+,ase 4e,aiour. ,is is 4e+ause people mig,t +oet ot,er peoples
4e,aiour and wis,es to 4e a part of it Solomon( 200A". Indiiduals mostl/ will ,ear ot,er peoples
re+ommendation and get information regarding produ+ts. In t,is situation( group referen+e is an important
intermediate to determine t,e +onsumer pur+,ase 4e,aiour Solomon( 200A".
Moreoer( enironmental +,ara+teristi+s ,ae also 4een argued as an important fa+tor influen+ing
+onsumer-4u/ing de+ision %ass and Julian( 200$". ime pressure( peer pressures( mood( aaila4ilit/ and
a++essi4ilit/( ease or diffi+ult/ of o4taining information( and 4udget influen+ed +onsumer pur+,ase 4e,aiour
:non/mous( 200F+". Besides t,at( +onsumer pur+,ase 4e,aiour +aused 4/ enironmental fa+tors +onsisted of
spe+ifi+ o++asions( usage situations( t,e wa/ t,e/ feel at t,at time( situational self-image( p,/si+al and so+ial
surrounding( temporal fa+tors and time Solomon( 200A".
7inall/( t,e mareting mi; is also +onsidered an important e;ternal fa+tor. Mareting mi; is generall/nown as t,e GA!sH - produ+t( pri+e( promotion( and pla+e rnroos( 200'= otler and :mstrong( 200A".
Normall/ produ+ts +an 4e determined t,roug, feature( )ualit/ and )uantit/= and t,e rig,t 4alan+e 4etween t,ese
A! +an eit,er mae or 4rea a produ+t. 7or instan+e( +orre+t pri+ing strateg/ +an 4e +reated 4/ stud/ing t,e
produ+ts demand and maret segment= pla+ing t,e produ+t in t,e rig,t lo+ation +an greatl/ en,an+ed its
a++essi4ilit/ to +ustomers= w,ile t,e rig,t t/pe of promotion +an ensure t,at t,e target audien+e will 4e rea+,ed
to in+rease awareness( and t,us in+rease t,e +,an+e of t,e produ+t 4eing pur+,ased.
&! 'ethodology
,e purpose of t,is resear+, is to find out 4u/ing 4e,aiour of +ustomers towards 6eweller/ produ+ts wit,
spe+ial referen+e to ,aa New Maret. In t,is stud/( a des+riptie resear+, is used to identif/ t,e +,ara+teristi+s
of releant groups( su+, as +onsumers( sales person( organi?ations or maret areas. ,is resear+, +an 4e used to
estimate t,e per+entage of units in a spe+ifi+ population e;,i4iting +ertain 4e,aiour and to determine t,e+ustomer e;pe+tations related to t,e produ+t.
Non pro4a4ilit/ sampling te+,ni)ue ,as 4een adopted w,i+, relied on t,e personal 6udgment of t,e
resear+,ers. @en+e( a +onenient sampling te+,ni)ue was used as t,e num4er of +ustomers w,o pur+,ase
6eweller/ produ+ts are er/ few t,an an/ regular produ+t. onenient sampling is least e;pensie( least time
+onsuming( most +onenient 4ut t,ere +an 4e a sele+tion 4ias.
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!rimar/ data was +olle+ted from around F0 +ustomers from t,e ,aa New Maret 4/ sure/ met,od
t,roug, )uestionnaire. ,e >iert s+ale is used to indi+ate t,e degree of agreement or disagreement wit, a series
of )uestions from strongl/ agree to strongl/ disagree. ,e +ompetitie maret in+ludes :min Jewellers( &enus
Jewellers( :pan 6ewelers( SanandaJewellers( New Jaroa @ouse( imond world( :lanarNiaton( Sultana
Jewellers( and !uro4iJewellers. ,e se+ondar/ data was +olle+ted from 6ournals( te;t 4oos and t,roug, t,e
internet.,e data +olle+ted was anal/?ed using E;plorator/ 7a+tor :nal/sis E7:" wit, &arima; rotation. ,e
relia4ilit/ of t,e measures was tested using 4ot, t,e aiserKMe/erK%lin M%" measure of sampling ade)ua+/
MS:" and Bartletts test of sp,eri+it/. Moreoer( t,e relia4ilit/ of data also +,e+ed using +,ron4a+,s alp,a
alue. !arallel anal/sis is also performed in addition to t,e fa+tor anal/sis to retain e;a+t num4er of fa+tors
w,i+, trul/ represents t,e fa+tors for +onsumer 4e,aiour of 6eweller/ industr/.
(! %esult and )iscussion
,e )uestionnaire in+ludes two ma6or parts( first one is t,e general information a4out t,e respondent( and t,eot,er part is a4out different fa+tors inoles in pur+,asing 6eweller/. ,e general information part +ontains
demograp,i+ )uestions( e.g.( gender( age( mont,l/ in+ome and so on. ,ese demograp,i+s information proides
a +lear pi+ture to t,e readers a4out t,e respondents general information.
*able : Survey information
Age of the customer +o! of Customers ,ercentages
1#-25 9 15.00
2F-$$ 1A 2$.$$
$A-A1 1# $0.00
A2-A9 11 1#.$$50-5' A F.F'
5#-F5 $ 5.00
:4oe F5 1 1.F'
:4out $0L of t,e 6eweller/ +ustomers are $A K A1 /ears old. It is also o4sered t,at t,e age of t,e respondents
mainl/ +entrali?e in t,e range of 20 K A5 /ears old. @oweer( people more t,an 50 /ears do not prefer to go for
6eweller/ s,opping( see ta4le 1.
Fig : -ccupation of the customers
More t,an ,alf of t,e 6eweller/ +ustomers are female. 7rom t,e fig 1 it +an 4e seen t,at $AL of t,e total
+ustomers are ,ousewies. ustomers wit, o++upation seri+e and 4usiness +ome in t,e se+ond position( ea+, of
w,i+, +omprise of 25L of t,e respondents. In+ome range of t,e 6eweller/ 4u/ers aries widel/( ,oweerma6orit/ of t,e respondents range is B '5(000 to B 150(000( see fig 2.
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&ol.'( No.5( 2015
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Fig #: "ncome range of the customers
&er/ interestingl/( most of t,e people 4u/ 6eweller/ as an inestment. @oweer( people also 4u/ gold 6eweller/for wedding( for personal use and also as a gift. !eople usuall/ prefer to 4u/ 22 arat gold. ,ere are arious
t/pes of gold ornaments( e.g.( plain gold( +olour 6eweller/( stone setting 6eweller/ and fas,iona4le 6eweller/( are
aaila4le in t,e maret( still ,alf of t,e people 4u/s plain gold( see fig $. :mong t,e different t/pes 6eweller/
items +ustomers prefer ring( +,ain and ne+la+e.
Fig &: Jewelry Category
4.1 Factor analysis Results and discussion
,e respondents were ased to rate ,ow mu+, emp,asis was pla+ed on a set of aspe+ts w,en 4u/ing an/ gold
6eweller/. o find t,e fa+tors t,at t,e respondents +onsidered important w,en t,e/ 4u/ a 6eweller/ item E7: ,as
4een used. 7a+tor anal/sis is statisti+al approa+,es t,at +an 4e used to anal/?e inter relations,ips among a large
num4er of aria4les and to e;plain t,ese aria4les in terms of t,eir +ommon underl/ing dimensions fa+tors".
,erefore( using prin+ipal +omponent fa+tor anal/sis wit, arima; rotation( 20 +omponents( i.e. aspe+ts+onsidered 4u/ing an/ 6eweller/( were anal/?ed.
*able #: K'- and Bartlett.s *est
aiser-Me/er-%lin Measure of Sampling :de)ua+/. 0.F'5
Bartletts est of Sp,eri+it/
:ppro;. ,i-S)uare 5FA.$52
df 190
Sig. 0.000
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*able &: Factor analysis and reliability testing results
Factor "nterpretation $oading /ariables "ncluded in the Factor
Factor 1: Operational and marketing Factors ustomers respond positiel/ to manufa+turers
operational and mareting initiaties w,en=
!er+entage of arian+e e;plained 25.'5L 0.'9' is+ount is offered
:lp,a 0.#5$ 0.'A Deferen+es from preious +ustomersEigen alue 5.151 0.'15 S,op >o+ations are +onenient
0.F95 :aila4ilit/ of Stone 6ewelr/
0.F## Ena4ling redit ard 7a+ilit/
0.FF# :aila4ilit/ of Branded items
0.F2F E;pe+ted ountr/ of %rigin found
0.5'$ Delia4le +ommer+ial adertisement
0.5A5 olor of t,e produ+t as an important feature
0.5A$ onenient pur+,asing poli+/
0.$'1 Item is dura4le enoug, to +omplete e;pe+ted life
Factor 2: Perceived Quality ustomer per+eie )ualit/( on t,e 4asis of
!er+entage of arian+e e;plained 15.#1L 0.'91 Oeig,t of t,e 6ewelr/ item
:lp,a 0.'$' 0.'2A 8ualit/
Eigen alue $.1F2 0.5A5 rust on t,e manufa+turer
0.51# Et,i+s
0.50F !ri+e of t,e produ+t0.$5F onforman+e to desired design
Factor 3: Serviceaility and !on"ormance ustomers per+eption toward Seri+ea4ilit/ and
onforman+e=
!er+entage of arian+e e;plained 10.F9L 0.'55 iersified fa+ilit/ seri+e
:lp,a 0.FAA 0.F51 :aila4ilit/ of after sales seri+e
Eigen alue 2.1$# 0.A'F Importan+e of dealing wit, +ustomer
7irst we tried to ensure t,at t,e data were suita4le for fa+tor anal/sis. ,erefore( we tested all t,earia4les using 4ot, t,e aiserKMe/erK%lin M%" measure of sampling ade)ua+/ MS:" and Bartletts test
of sp,eri+it/. Desults of t,ese tests are presented in t,e ta4le 2. ,e M% measures t,e sampling ade)ua+/
w,i+, s,ould 4e greater t,an 0.5 for a satisfa+tor/ fa+tor anal/sis to pro+eed. If an/ pair of aria4les
,as a alue less t,an t,is( +onsider dropping one of t,em from t,e anal/sis. 7or our data( we o4tained( as seen
in t,e a4le( a M% alue of 0.F'5( w,i+, is good alue. Bartletts test is anot,er indi+ation of t,e strengt, oft,e relations,ip among aria4les. 7rom t,e ta4le 2( we +an also o4sere t,at t,e Bartletts test of sp,eri+it/ is
signifi+ant( i.e.( its asso+iated pro4a4ilit/ is less t,an 0.05. @en+e( M% and Bartletts est +onfirms t,at our
data is perfe+t for fa+tor anal/sis @air et al.( 199#".
,e fa+tor anal/sis of t,e 20 aria4les ,as /ielded t,ree fa+tors e;plaining 52.25L of t,e total arian+e.
:nal/?ing t,e fa+tor loading( i.e. t,e +orrelation of ea+, aria4le and t,e fa+tor( +an ,elp in deriing a new+onstru+t. In t,is +ase( a loading was +onsidered signifi+ant if it ,ad an a4solute alue ,ig,er t,an 0.$0. Sin+e we
,ad a fa+tor solution in w,i+, all t,e aria4les ,ad at least one signifi+ant loading on a fa+tor( we identified t,e
following t,ree fa+tors. a4le $ s,ows t,e results of fa+tor anal/sis.:s ta4le $ s,ows( 7a+tor 1 +aptures eleen items of %perational and Mareting 7a+tors t,at a++ounted
for 25.'5L of total arian+e. 7a+tor 2 +aptured si; items of !er+eied 8ualit/ t,at a++ounted for 15.#1L of total
arian+e( namel/( esign( !ri+e( rust( Oeig,t( 8ualit/( and Et,i+s. 7a+tor $ +omprised t,ree items ofSeri+ea4ilit/ and onforman+e t,at e;plained 10.F9L of total arian+e.
,e ron4a+,s P measure of relia4ilit/ for t,e t,ree fa+tors were 0.#5$( 0.'$'( and 0.FAA( respe+tiel/.
:lt,oug, P alue of 0.'0 and ,ig,er is often +onsidered t,e +riterion for internall/ +onsistent esta4lis,ed fa+tors
@air et al.( 199#"( Nunnall/ 19'#" suggests t,at P alue of 0.50 and 0.F0 is a++epta4le in t,e earl/ stages of
resear+,. Sin+e( ron4a+,s P alue for ea+, fa+tor is a4oe 0.50= 4ot, fa+tors are a++epted as 4eing relia4le for
t,e resear+,.
0! Conclusion
,is stud/ anal/?ed t,e important fa+tors to reeal t,e 6eweller/ +ustomer ps/+,olog/. ata used for t,is
resear+, was gat,ered using a )uestionnaire sure/ from new maret( ,aa. B/ anal/?ing t,e demograp,i+information( it ,as 4een o4sered t,at ma6orit/ of t,e +ustomers are female w,o are 4asi+all/ ,ousewife. ,ese
+ustomers are aged 4etween $A to A1 /ears. Moreoer( t,e +ustomers prefer to 4u/ plain gold instead of ot,er
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#A
fan+/ 6eweller/ items.
>ater on( to figure out t,e important fa+tors of pur+,asing gold was anal/?ed using e;plorator/ fa+tor
anal/sis. :s a result of anal/?ing t,e fa+tors t,at are +onsidered important in pur+,asing 6eweller/( it was
possi4le to identif/ t,ree main fa+tors 7a+tor 1 %perational and mareting 7a+tors( 7a+tor 2 !er+eied 8ualit/(
and 7a+tor $ Seri+ea4ilit/ and onforman+e.
,is stud/ +an 4e used as a er/ good instrument for t,e managerial de+isions maing in t,e 6eweller/4usiness. :s found from demograp,i+ anal/sis( t,e entrepreneurs and poli+/ maers in t,is 4usiness s,ould
fo+us t,eir mareting +ampaigns for t,e middle aged ,ousewies. :dditionall/( to en,an+e t,e 6eweller/
4usiness( managers +an wor on ot,er +ustomers groups as well. Identified t,ree ma6or fa+tors drie t,e
+ustomers w,en t,e/ pur+,ase gold 6eweller/. If t,e entrepreneurs design t,eir 4usiness eeping in mind t,ese
fa+tors( t,e/ +an easil/ in+rease t,e profita4ilit/ and maret s,are.
,is is a preliminar/ stud/ in +onsumer 4e,aiour in Banglades,i 6eweller/ maret. @oweer( it ,as
4een +ondu+ted for a spe+ifi+ maret on a limited num4er of respondents w,i+, +an 4e furt,er e;tended for a
4road area or region. ,ere is a potentialit/ of furt,er resear+, related to maret opportunities in lo+al andinternational area( worer sills deelopment( professionalism and t,eir impa+t on 4usiness. ,ese resear+,
+ontri4utions +an ,elp mae Banglades,i 6eweller/ industr/ to in+rease t,e maret s,are in t,e glo4al maret.
%eferences
Ba+,aus( . @illig( . and Oilen( D. 200'" G!redi+ting pur+,ase de+ision wit, different +on6oint anal/sismet,odsH( International Journal of Maret Desear+,.A9$". !p. $A1-$FA.Bago??i( D. C Oarsaw( >. 1990" Gr/ing to onsumerH Journal of onsumer Desear+, 1'( 2" pp. 12' K 1A0
Bla+well( D.( Miniard( !. and Engel( J. 200F" Gonsumer 4e,aiorH( Mason ,ompson
an?iger( !. 200Aa".G,e >u;ur/ Mareters DeportH. >u;ur/ Business( 2A"( 1-#.
an?iger( !. 200A4".nit/ Mareting pdate-200A.nit/ Mareting. Detrieed on Septem4er 1A( 2012( from
,ttpau( &. !. C S,affer( M. :. 1999". areer Su++ess t,e Effe+ts of !ersonalit/. Journal of areer eelopment
International( AA"( 225-2$0.Neal( .( 8uester( !. and !ettigrew( S. 200F" Gonsumer Be,aiour Impli+ations for Mareting Strateg/H 5t,
edition" Bers,ire M+raw-@ill
Nunnall/( J.. 19'#"( !s/+,ometri+ ,eor/( 2nd ed.( M+raw-@ill( New Ror( NR.
Deid( !. 2002". : riti+al Ealuation of t,e Effe+t of !arti+ipation in Budget arget Setting on Motiation.
Managerial :uditing Journal( 1'$"( 122-129.
Solomon( M. D. 200A". onsumer Be,aior - Bu/ing( @aing( and Being Ft, Ed.". pper Saddle Dier( NJ!renti+e @all.
Solomon( M. D. 200A". onsumer Be,aior - Bu/ing( @aing( and Being Ft, Ed.". pper Saddle Dier( NJ
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