Peer Group Factors and the Purchase Decisions of Mobile Telephone Sets Among Youths in Nigeria

8/13/2019 Peer Group Factors and the Purchase Decisions of Mobile Telephone Sets Among Youths in Nigeria

1/9

IJRIME Volume 2, Issue 9 (September-2012) ISSN: 2249-1619

International Journal of Research in IT, Management and Engineeringwww.gjmr.org 1

PEER GROUP FACTORS AND THE PURCHASE DECISIONS OF

MOBILE TELEPHONE SETS AMONG YOUTHS IN NIGERIA

Solomon Agada A.Department of Economics and Business Studies

Redeemers University, (RUN) Mowe, Ogun State, Nigeria.

ABSTRACT

Buying decisions are critical to both the individual and institutional consumers and as a result

certain groups tend to influence buying decisions by individual consumer and the institutional

consumer like peer groups and decision making units (DMUs) respectively. The present study

examines group factors and how they affect purchase decisions of mobile phone sets by youths in

Nigeria. The study was carried out in Lagos State cosmopolitan city with a sample of 500 youths

selected randomly and administered questionnaire designed by the researcher. The study

analyzed purchase factors inducing purchase of mobile phone sets by youths such peer group

dynamics, functional and hedonic factors. This was carried out with use of Statistical Package

for Social Sciences (SPSS Version, 17.0). In view of a paucity of relevant literature about

Nigeria specifics, the study reveals vital marketing and socio-economic benefits for all policy

makers. Peer groups have a significant influence on psychological and social adjustments for

group members describe instances where an individual feels indirectly pressured or induced into

adjusting their behaviour to suit that of their peers. Youth tendency to take up acts and

indulgences due to peer pressure are well documented and such pressures cannot be isolated

from buying behaviours.

Keywords : Youth, Purchases, Decision, Telephone, Nigeria.

INTRODUCTION

Consumers purchases involve enormous decision synthesis and information dynamics. These

include information cues from both the internal and external environment. Messages received as

a result of the consumers exposure to information overload (Herbert, 1971) poses a lot of


2/9



decision making challenges for the consumer. As a result some purchase decisions are made

under pressure or what Beatty and Ferrell (1998) regard as impulsive buying under economic or

social group pressures.

During the decision-making process, consumers tend to be rational in thinking. However, there

can be factors, such as time and the pressure by peers that cause consumers to rationalize the

decision-making process to make purchase decisions and therefore exhibit irrational

consumption behavior, called "impulse buying" (Mowen & Minor, 1998). This behavior is more

prevalent when consumers are traveling. When tourists visit some attractions, they not only

appreciate the local culture and experience the traditions, but also are drawn to the merchandise

that is representative and characteristic of the local culture. The decision-making is snappy under

the influence of being in a foreign place and the encouragement of companions or peer groupmembers during the trip. Without planning, tourists often make unneeded purchases or ones

exceeding their budgets culminating in both budget and psychological rationalization (Wu-

Chung Wu & Tzung-Cheng Huan, 2010)

Consumer make purchases for several reasons including hedonistic and functional goals

(O'Curry& Strahilevitz 2001). Hedonic consumption refers to situations in which the product or

service is experienced for fun, pleasure, arousal, or excitement (Hirschman & Holbrook 1982).

Functional products or services provide utilitarian benefits whereas some products or services

may possess both functional and hedonic value simultaneously for most people and in different

circumstances. The functional or hedonic nature of a given product or service may differ based

on; (a) individual consumption preferences and purposes, (b) situations, and (c) the role of

buyer/user. (Hirschman & Holbrook 1982).

Encarta.msn.com (2010) defines a peer group as a social group consisting of humans and are an

informal primary group of people who share a similar or equal status and who are usually of

roughly the same age, tended to travel around and interact within the social aggregate. Membersof a particular peer group often have similar interests and backgrounds, bonded by the premise of

sameness (Wolf Sun, 2008). Generally, an earlier definition of a group in literature by Krech and

Crutchfield (1948) see a group as two or more people who bear an explicit psychological

relationship to each other Krech et al(1962) cited in Benneth and Kassarjian (1993),


3/9



corroborated the definition and elaborated the definition of a group as persons who are

interdependent upon each other such that each members behaviour potentially influences the

behaviour of each of the other and include the sharing of an ideology: a set of beliefs, values,

and norms which regulate their mutual conduct.

Peer pressure emanates from peer groups and refers to the influences exerted by a peer group in

encouraging a person to change his or her attitudes, values, or behavior in order to conform to

group norms. Such groups include social groups like membership groups, when the individual is

"formally" a member of a political party, trade union or a social clique. A person affected by

peer pressure may or may not want to belong to these groups.(wikkipedia)

In young people, peer pressure is prevalent. Youth peer pressure is considered as one of the

most common forms of peer pressure. It is particularly common because most youth spend large

amounts of time in static groups like schools and subgroups within them regardless of their

opinion of those groups. In addition to this, they may lack the maturity to handle pressure from

'friends'. Also, young people are more willing to behave negatively towards those who are not

members of their own peer groups whom they consider as the dissociative group.(wikkipedia)

The present study intends to examine peer group factors and the impact on consumers purchase

decision of mobile telephone sets among youths in Nigeria. Substantial literature reveals the preponderance of peer group factors such peer pressure on purchase decisions in certain

countries with few emphasizing on specific product study. Scanty information is available about

the concept in Nigeria. The author is also motivated by the rate of use of mobile telephone sets

(GSM sets) and the passion youths put into buying behaviour of various models and brands

which deserve a study of this phenomenon.

STATEMENT OF THE PROBLEM

Peer group factors pose a significant concern for marketers. Peer groups issues such as reference

groups, peer pressure, informal groups and groups dynamics, family, and role model-leadership

predictors of influence on members decisions especially purchases cannot be underestimated.


4/9



Deep involvement in group dynamics can lead to impulse buying. Welles (1986) finds that 90

percent of consumers admit to impulse buying. Bearden and Etzel (1982) from the consumer

behaviour perspective indicate that products and brands purchased by consumers are influence

by their reference groups. In addition, Bearden, Netemeyer, and Teel (1989), observed that the

ubiquitous and prevalent use of spokespeople in product and service endorsements is an

indication that individuals who are admired, whom people aspire to become like, and that belong

to special groups admired and aspiring by people can influence the purchase behaviour of

consumers.

Since peer group pressure result in unplanned buying (Stern, 1962) the formal decision making

process of the consumer is vitiated and may pose a problem to managing market demand. In the

opinion of Wood (1998), cited in Wu-Chung Wu and Tzung-Cheng Huan (2010), regard impulse

buying as unplanned, lacks thought and is accompanied by intense emotional drive. Wood alsoidentifies two types of impulse buying: an akratic impulse, in which consumers do not have

enough will power, and compulsive impulse buying. Iyer (1989) finds that both the shopping

environment and time pressure affect consumers impulse buying. Impulse buying often results

from external stimuli which arouse consumers new or perceived potential needs and form a

strong and sudden urge.

Borrowing a cue from a foremost quote by Robert Shiller (1995)People who interact with each

other regularly tend to think and behave similarly. The marketer would not be defiant in taking

facts like this as an opportunity to sharpen marketing strategies.

OBJECTIVES OF THE STUDY

The aim of this study is to examine the impact of peer group factors in purchase decision by

youths of mobile telephone sets in Nigeria. The study adopts the following specific objectives

accordingly.

i. To identify how group factors and dynamics affect youth purchase decisions of mobile

telephone sets in Nigeria;

ii. To examine the elements of group pressure that serve as predictors of purchase decisions

especially among youths in Nigeria;


5/9



iii. To identify brands and products purchase purposes that influence the buying behaviour of

youth peer groups in Nigeria;

iv. To make recommendations to marketers of mobile telephone sets in Nigeria about

effective marketing strategies owing from the fact that the youth populationconstitutes a large market segment for the sale of mobile telephone sets in Nigeria.

METHODOLOGY

A sample of 500 youths were randomly administered questionnaire in Lagos State, Nigeria by

mere sighting by the researcher of who may fall within the defined age bracket and/or exhibit

youthful tendency through dressing style, location of relaxation and meetings, institution of

occupation or type of mobile phone set in possession. Lagos state was selected for the study

because of its universality as a cosmopolitan city in Nigeria having a good representation of

Nigerians from all over the country particularly the active workforce (youths), who reside in the

city for secular jobs, employment search, and prospects for business and trading opportunities.

Lagos is equally known for its slogan Eko for Show (Lagos for Show), where consumers

compete under social pressures to buy and possess the latest fashionable (hedonic) or effective

(functional) products to reflect the states national slogan, Centre of Excellence.

The research instrument measured independent dimensions of group dynamics and peer group

conformity variables that affect the consumer purchase decisions in respect of the use of mobile

phone (GSM) sets in Nigeria. Analysis of relevant data was done with the use of Statistical

Package for Social Sciences (SPSS, Version 17.0). The descriptive analysis showed the

consumer demographics and an analysis of functional and hedonic demand features/factors that

informs consumer purchase of mobile phone set. Correlation and regression analyses were

carried out to show the relationship of peer group dynamics and how they predict the buying

behaviour of youths in the purchase of mobile phone sets in Nigeria respectively.

LITERATURE REVIEW.

Groups and Decision Making Processes


6/9



Group dynamics exist in any form of organization whether formal or informal. A group is a

collection of people who interact with each other on a regular basis over a period of time and

perceived themselves to be mutually dependent with respect to the attainment of common goal(s)

(Balogun & Obasan, 1999). According to them a groups can be termed as formal or informal

depending on the formation and legal authority structure backing its existence within an

organization. A formal group is characterized by formal procedures, legitimate existence, formal

leadership structure as depicted in the organizational chart, and policy back-up through the

organization charter or managerial decree (Balogun & Obasan, 1999). However, informal groups

emerge from non officially prescribed policy or plan of the organization and are usually small in

size compared to the formal group, having membership existence in very close proximity or

interactions and portend an autonomous subculture within the larger organization. Although, in

large formal groups there are likely to be several small informal cliques comprising of personalities with similar careers or interests (Burns, 1955).

The family is regarded as an involuntary group that an individual such as a consumer of a

particular product or service exhibits certain tastes and style in conformity with family norms.

Just like any group, the family supplies benefits to family members such as biological

maintenance, socialization, security, and a feeling of belongingness among members. The family

is perhaps the single most influential group in the determining the consumption behaviour of

individual (Benneth & Kassarjian, 1993).

Youth Peer Groups and Pressure Dynamics

Peer pressure describe instances where an individual feels indirectly pressured or induced into

adjusting their behavior to suit that of their peers. Youth tendency to take up smoking act and

indulgence in underage drinking are two of the best known examples of peer pressures.

Although, peer pressure is often accompanied with negative connotations, peer pressure can be

used in most cases positively especially where active participation by a person among his peers

help to create consciousness about career development among ambitious young people. Nigerianambitious youths tend to stay away from youths considered as no future ambitions (NFAs) and

aspire to belong and to be counted among youths who they term as having a future. Youths

define their class of friends and are bonded by their own codes which they adopt and use in

communicating with non members.


7/9



Youth is an alternative word to the scientifically-oriented adolescent and the common terms of

teen and teenager. Another common title for youth is young person or young people (Konopka,

1973). Peer groups have a significant influence on psychological and social adjustments for

group individuals (Erikson, 1968). Peer groups provide perspective outside of individuals

viewpoints. Members inside peer groups also learn to develop relationships with other in the

social system. Peers, particularly group members, become important social referents for

individuals (Newman, & Newman, 1976) in teaching members customs, gender roles, social

norms, and different ideologies (Youniss & Smollar, 1985).

Reference Groups and Consumer Purchase Decisions

Individuals would not feel comfortable on their own except they carry out an evaluation of their

lifestyles and principles with others. Festinger (1954) claims that in the organic nature of man,

man would try to evaluate his opinions and abilities and in the absence of any objectivemeasurement means or criteria, people evaluate their opinions and abilities by comparison with

the opinions and abilities of others. These people constitute the individuals point of reference

or reference group which he uses in determining his own judgments, preferences, beliefs and

behaviours. A reference group in a limiting case can be a single individual or a large aggregate of

persons which the person refers to in whole or partly to moderate his behaviour by putting up

either positive or negative reference attitude (Shibutani T., 1955) cited in Benneth and Kassarjian

(1993).

Purchase Decision Making Criteria and Brand Purchase Factors

Generally speaking, a consumer goes through five stages in the decision-making process,

including motivation, needs or problem recognition, information search, alternative evaluations,

and final purchase (Engel et al.,1993). The decision to buy a particular product may be based on

individual consumption objectives such hedonic consumption which refers to situations in which

the product or service is experienced for fun, pleasure, arousal, or excitement (Hirschman and

Holbrook 1982) or functional which refers to products or services that provide utilitarian

benefits. Although some products or services may hold functional or hedonic value in the same

way for most people (e.g., auto repair vs, amusement parks), the functional/ hedonic nature of a

given product or service may differ based on (a) individual consumption preferences and

purposes, (b) situations, and (c) the role of buyer/user.


8/9



REFERENCES

Bearden, W O. & Michael, J. E (1982). Reference Group Influence on Product and BrandPurchase Decisions. Journal of Consumer Research. 9(September). 183-194

Beatty, S E, Ferrell E M, (1998). Impulse Buying Modeling its Precursors. Journal ofRetailing, 74(2): 169-191.

Bennett, P. D. & Kassarjian, H H. (1993). Consumer Behaviour: Foundation ofMarketing Series. New Delhi. Prentice-Hall.

Burns, T. (1955). The Reference of Conduct in Small Group Cliques and Cabals inOccupational Milieu. Human Relations, 9, 467-487.

Encarta.msn.com (2010).http://encarta.msn.com/dictionary_1861724592/peer_group.html. Retrieved 25

November 2010 .

Engel J F., Blackwell, R D., Miniard, P W. (1993). Consumer Behavior 7th

ed. FortWorth: Dryden Press. Erikson, E. H. (1968). Identity: Youth and crisis. New York: Norton. Hirschman, E, & Holhrook, M. (1982), "Hedonic Consumption: Emerging Concepts.

Methods and Propositions." Journal of Marketing. 46 (October), 92-101.Hopkins Press. Iyer, E S. (1989). Unplanned purchasing: Knowledge of Shopping Environment and

Time Pressure. J. Retailing, 65: 40-57. Konopka, G. (1973) Requirements for Healthy Development of Adolescent Youth.

Adolescence.VIII (31), p. 24. Krech, D., Ballachey, E. & Crutchfield R. (1962). Individual in Society. New York:

McGraw-Hill. Bourne, Francis S.(1957). Group Influence in Marketing and Public Relations, in Some

Applications of Behavioural Research. ed. R. Likert and S. P Hayes: Basel: UNESCO Leon, F. (1954). A Theory of Social Comparison Processes. Human Relations, 7(May,

1954), 117-140. Mowen J C, Minor M. (1998). Consumer Behavior 5th ed.. New Jersey: Prentice-Hall. Netemeyer, R G. & Teel, J E. (1989). Measurement of Consumer Susceptibility to

Interpersonal Influence. Journal of Consumer Research, 15(March), 473 481. Newman, B. M., & Newman, P. R. (1976). Early adolescence and its conflict: Group

Identity versus Alienation. Adolescence, 11, 261274. O'Cuny, S. & Strahilevit M. (2001). Probabiliiy and Mode of Acquisition Effect.s on

Choices between Hedonic and Utilitarian Options. Marketing Letters, 12 (February), 37-49

Shibutani, T. (1955). Reference Groups as Perspectives. American Journal of Sociology.60(May, 1955). pp. 562-569.


9/9



Shiller, R. J. (1995) Conversation, Information and Herd Behavior, American Economic Review 85, 181-185

Simon, Herbert (1971), Computers, Communication, and the Public Interest: TheJohnsHopkins Press.

Welles G (1986). We're in the habit of impulsive buying. USA Today , May 21. Wikipedia visited on 3 rd December, 2011. Wolf, Sun. (2008). Peer groups: expanding our study of small group communication.

Thousand Oaks, CA: Sage publications, Inc. Wood M. (1998). Socio-economic Status, Delay of Gratification, and Impulse Buying. J.

Econ. Psychol., 19: 295-320. Wu-Chung Wu & Tzung-Cheng Huan (2010). The Effect of Purchasing Situation and

Conformity Behavior on Young Students Impulse Buying. African Journal of Business Management 4(16), pp. 3530-3540

Youniss, J., & Smollar, J. (1985). Adolescent Relations with Mothers, Fathers, andFriends. Chicago: University Of Chicago Press.

Peer Group Factors and the Purchase Decisions of Mobile Telephone Sets Among Youths in Nigeria

Documents

Transcript of Peer Group Factors and the Purchase Decisions of Mobile Telephone Sets Among Youths in Nigeria