THE FACTORS INFLUENCING CONSUMERS INTENTION TO …

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* Master of Business Administration in General Management, Stamford International University, Academic Year 2016

THE FACTORS INFLUENCING CONSUMERS INTENTION TO PURCHASE PTT COOKING GAS (LPG)

Rattaporn Srinok*

ABSTRACT This research examines the factors that influence consumer’s satisfaction and product quality towards purchase intention of PTT Cooking Gas (LPG) in Bangkok, and to make a comparison with marketing responses to PTT product of the consumers with different demographic and understanding levels to intention to purchase PTT product brand. Furthermore, it is intended to apprise why PTT Public Company Limited became the number one whole sale distributor of Cooking Gas (LPG) in Bangkok.Keywords: consumer’s satisfaction, demographic, product quality, purchase intentions.

INTRODUCTION In the period time, every household usually cooked their meals with firewood and charcoal, which common and affordable. But they are inconvenient and complicate to find. Nowadays, an increasing of development creates many innovations, which have been adjusted from generation to another. With the innovation, the beginning of using Liquefied petroleum gas (LPG) replaces usability of both firewood and charcoal. LPG is generating from fuel refinery and gas separation. It helps household for cooking activities to be more convenience and cheaper. LPG becomes necessary matter in every household. The demand for using LPG spread in almost parts of the world (Jittraporn Teekaputti, 2013). This study will help in knowing the supplied quantities of production, the extent to deliver the product quality, demands for use LPG Cooking Gas, amount of transportation for delivery of product to every household in the Bangkok, Brand or Product Perception influence on the Customer Intentions, problems encountered during transportation to the manufacturer to the dealer and to household or may

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be the main cause come from bad condition of the vehicle transporting LPG cooking gas cylinders. Hence, the determination of the results will help in the improvement of service delivery, which will benefit the consumer and supplier for PTT Cooking Gas (LPG) container.

OBJECTIVES 1. To study the differences of demographic levels influencing the consumers’ intention to purchase PTT Cooking Gas (LPG) in Bangkok. 2. To study the differences levels of the product quality and consumer’s satisfaction which towards the intention to purchase PTT Cooking Gas (LPG). 3. To study that why PTT Cooking Gas (LPG) is becomes the number one wholesale distributor of Cooking Gas (LPG) in Bangkok. Areas and Limitation of the Study The population of this study is unlimited in context of household consumers; there could be anyone in the household and has experiences towards the delivery and consumption of PTT Cooking Gas (LPG) containers to household in districts of Bangkhen, Chatuchak, and Lat Phrao, Located in Bangkok, Thailand. Population and Sample It is estimated that there are 5,698,441 people in Bangkok (Statistical Office of Thailand). Hence, the sample size will consist of 400 people who using PTT Cooking Gas (LPG) containers in Bangkok to cover the scope in the identified aforementioned locations where the data will be collected from the visitors at shopping mall and markets from male and female genders, and the other demographics criteria set hereby in the questionnaire of this research. Data Collection Period The population of this research is limited to Thai Nationals who has prior experience for shopping and consumption of PTT Cooking Gas (LPG) containers from the period starting from October 2016 to December 2016.

RESEARCH HYPOTHESIS H0 Difference in demographics, consumer’s satisfaction and product quality

will not influence the intention to purchase PTT Cooking Gas (LPG). H1 Difference in demographic will influence the intention to purchase PTT

Cooking Gas (LPG).



H2 Difference in consumer’s satisfaction will influence the intention to purchase PTT Cooking Gas (LPG).

H3 Difference in product quality will influence the intention to purchase PTT Cooking Gas (LPG).

LITERATURES REVIEW The Purchase Intentions for Consumers in the selection of Shoes (Wang, 2014). The results determine the female consumers who have higher purchase intentions for the selection of shoes have substantial higher assessment of shoes features in style, color, materials, collectability, and name of brand image in comparison to those who have lower purchase intentions of shoes. Furthermore, the customers with higher purchase intentions in the selection of shoes have rationale attitude, belief, norms and behavior control in comparison to those who have lower purchase intention in the selection of shoes. The results also determine in the overall significance for the youth females, consumers aged between 18 to 35 years old have substantial higher purchase intentions in comparison to the elder consumers. In addition to this, the more shoes quantity and higher shoes purchase frequency consumers have, the higher purchase intentions of shoes would perceive. Product Quality The idea of product quality can be expressed in two components which includes the Quality Objectives and Perceived Quality. (Brunsø et al., 2005). The objectives of the quality objectives refer to the measurements and monitoring of products features, product performance, durability, technical characteristics, among other products. Comprehensive features, Product quality, and features of a product or service which tolerates its capacity to satisfy ascribed or implied, which can be also explained in other words as, quality maybe defined as a product i.e. “Fitness for use” or “conformance to requirement”. (Russell & Taylor, 2006.) One of the classical practical implication of product quality to be witnessed with the Tata Motors commitment which Tata is striving to achieving the business excellence while offering the best of services in its product wise i.e. Car and community well-being ensure meeting the highest standards of product quality and its service (Hanno & Christian, 2009).



Consumer’s Satisfaction The prime objective of marketing is to satisfy the consumer needs while understanding the factors which influence consumer buying behavior. One of the most important elements of consumer behavior research leads to analysis of the purchasing behavior to be titled as “information processing perspective” (Holbrook & Hirschman, 1982). The model states, the customer decision making process comprises of satisfaction, requirements, and diversity in behaviors. The Factors which influences the motivation and the process can be categorized and detailed as per the following (Engel, Blackwell & Miniard, 1995) - Need Recognition: The understanding of difference between the desired situation and the current situation which lets the customers for the intake process. - Search Alternatives: Explore the information for the purchase intentions, including internal (memory) and external sources. - Pre-purchase alternative evaluation: To gauge alternates which could fulfill the needs and deliver the required benefits that can meet and deliver the estimated benefits. - Purchase: Offers the option to be chosen with product or service. Brand Loyalty Brand loyalty is an essential way encourages the individual in which his or her needs or wants to gets the necessary attributes which becomes the prime requirement or develop as a habit in the long term. In line with (Holt, 2004) “brand faithfulness could be the consumer’s willingness to be that has a brand when opposition occur trashing with choices that might be thought to be just as beautiful had not the individual as well as brand distributed a brief history”. Additionally, they convey his or her faithfulness by giving a larger write about in their wallets and handbags for their high-value brand names or perhaps service providers as well as by means of making word-of-mouth recommendations. These behaviors can right impact success. That ensures that investigator acknowledges, brand faithfulness becoming dependent on the two attitudinal as well as behavior qualities of customers as well as the two things tend to be just as important coming from brand faithfulness perspectives. PTT Cooking Gas LPG Brand The LPG supplied by PTT has wide variety of applications. The consumption of LPG satisfies the requirements of automobiles, household appliances, hospitality due to its refined contents and user-friendly



applications. It’s also available for the industries which requires the constructional equipment such as welding machines, metal smelting machines, ceramics cutting machines, etc. available in various range of containers starring from 4, 7, 15 and 48 Kgs respectively (PTT, Online, n.d.). PTT Cooking Gas (LPG) stove and parts PTT has designed its LPG gas stove kits and accessories to meet and satisfy the requirements of the modern family adding up features which are easy-to-use and comes with the best safety standards for house appliances. 1. Gas stove: comes in a portable package with easy to setup facility anywhere comes in a 4 color box. The package dimension is 300 x 385 x 160 mm and 100 mm. 2. Hobs: comes with brown box packaging, which is the best suitable for big families and small setup restaurants. The Pipes are made of high quality plastic with obvious display of the orange logo for PTT describes the high quality of products, intended mainly to serve customers with complete satisfaction offering pipe of 1.5 meters with two jackets packed in bright green color (PTT, Online, n.d.).

Figure 1. Variety of size containers of PTT Cooking Gas (LPG) and PTT Cooking Gas (LPG) stove and parts (PTT, Online, n.d.)

RESEARCH METHODOLOGY Population Size As per the statistical dept. of Thailand in the year 2015, the total population consist of Bangkok in the present is 5,698,441 people and the goal is to find the influencing factors and intentions for the consumption of PTT Cooking



Gas (LPG) (Fisher, 2007) has advised to have the sample size of 400 respondents if the population is known to consider the error margin. Sample Size The size of sample group in this study was calculated by using Taro Yamane (Yamane, 1967), which provides a formula to determine sample sizes with precision rate ± 5% (e = 0.5) and 95% equation. Research Instrument There has four parts of a survey questionnaire: The first part is multiple choices to contains personal information of the respondents; gender, age, education, career, income, marital status. The last part is focus on consumer’s satisfaction with the behavior in using the PTT product of respondents and also used the Likert scale questionnaire. The third part used the Likert scale questionnaire and there are concern with product quality and perceived quality which towards consumers of PTT product. The second part used the Likert scale questionnaire and there has focus on the consumer purchase intention of respondents in related to decision making with the consumer choose to use PTT Product. Primary Data The respondents in the research has been conducted in three main districts considering the Time and Budgetary limitations while choosing the respondents with densely populated while visiting the Retail Traditional Markets and Shopping Malls which includes in Chatuchak District i.e. Central Lat Phrao and Lung Perm Market. Lat Phrao District includes i.e. The 2nd bridge Market and Imperial World Lat Phrao. Bangkhen District includes i.e. Central Ramintra and Ramintra KM2 Market. Secondary Data The Secondary data in this research will serve the purpose of theoretical sources, with the view-point to have the research variables backed by the rationale of the research. It also allows the explore the information on the insights of the research topic which is either directly or indirectly being linked to it. The Research Journals, Theories, Articles have been considered as part of the Secondary data analysis to make the information real time interactive and significantly rationale.

RESEARCH FINDINGS Descriptive Statistical Analysis



Table 1. Frequency and percentage of demographic factor classified by Gender

Gender Frequency Percent

Male 126 31.50

Female 274 68.50

Total 400 100.00

Findings from Table 1, it is revealed that major group of respondents’ gender were female, there were 274 persons (68.50%) and followed by male gender, of 126 respondents (31.50%) respectively.

Table 2. Frequency and percentage of demographic factor classified by Age

Gender Frequency Percent

Under 20 years old20 to 30 years old31 to 40 years old41 to 50 years oldMore than 50 years old

17731758055

4.3018.3043.8020.0013.80

Total 400 100.00

Findings from Table 2, the leading majority range is 31 to 40 years old, accounts to 175 respondents (43.80%) which represents the majority of consumers choosing to use PTT Cooking Gas (LPG).

Table 3. Frequency and percentage of demographic factor classified by Education level

Education level Frequency Percent

Lower than high schoolHigh schoolDiplomaBachelor’s degreeHigher than bachelor’s degree

214224204109

5.3010.406.0051.0027.30

Total 400 100.00



Findings from Table 3, the highest numbers of majority respondents are 204 persons (51.0%) which hold the Bachelor’s degree respectively.

Table 4. Frequency and percentage of demographic factor classified by Area District

Area District Frequency Percent

Bangkhen DistrictChatuchak DistrictLat Phrao District

134133133

33.4033.3033.30

Total 400 100.00

Findings from Table 4, the first highest respondents were from Bangkhen District, accounts to 134 persons (33.40%). The second highest were 133 respondents (33.30%) with a tie in two districts of Chatuchak and Lat Phrao respectively.

Table 5. Distributions analyzed to the important factor influencing towards difference in consumer’s satisfaction will influence to consumer’s purchase intention levels when choosing to use PTT Cooking Gas (LPG)

Consumer’s satisfaction B Std. Error Beta t Sig.

1. Overall, I am satisfi ed with PTT Public Company Limited.

2. Overall, I am satisfi ed as a consumer to use PTT Cooking Gas (LPG).3. The product features are user friendly.4. PTT Public Company Limited keeps the customers updated about the information of existing or new products with improvements.5. Will you repurchase PTT Cooking Gas (LPG)?

0.05

0.08

0.080.06

0.05

0.02

0.02

0.020.02

0.02

0.12

0.15

0.180.15

0.10

2.56*

3.27*

3.85*3.13*

2.24*

.01

.00

.00

.00

.03

As shown in table 5, factors analysis which influences towards difference in consumer’s satisfaction levels will influence the intention to purchase PTT Cooking Gas (LPG) which consists of five factors which explains the variation of the consumer’s purchase intention levels ranked. The result in percentage accounts to 17.50 towards the intention to purchase PTT Cooking Gas (LPG).



Table 6. Distributions analyzed to the important factor influencing towards difference in product quality will influence to the consumer’s purchase intention levels when choosing to use PTT Cooking Gas (LPG)

Product quality B Std. Error Beta t Sig.

1. Comparing to PTT Cooking Gas (LPG) and those competitors in the market, PTT Cooking Gas (LPG) has higher safety standard and the best quality of (LPG).

2. The quality of PTT Cooking Gas (LPG) is outstanding. It doesn’t come with unusable additives.

3. PTT Cooking Gas (LPG) container comes with good combustion levels comparing to other brands.

4. Gas quality by PTT keeps the environment clean than other brands.

5. PTT Cooking Gas (LPG) container comes with the best product quality.

0.08

0.06

0.05

0.06

0.08

0.02

0.02

0.02

0.02

0.02

0.16

0.15

0.14

0.15

0.18

3.51*

3.20*

3.10*

3.57*

4.03*

.00

.00

.00

.00

.00

As shown in table 6, analysis determination on the factors influencing towards difference in product quality will influence the intention to purchase PTT Cooking Gas (LPG) have only five factors able to brief the variations in the consumer’s purchase intention levels. The result in percentages accounts to 31.9 towards the intention to purchase PTT Cooking Gas (LPG).

SUMMARY, CONCLUSION & RECOMMENDATION Summary In this research, there were 400 participants who have lived in Bangkok. Questionnaire surveys were used to collect the data. The samples were selected from 3 districts that were Bangkhen district, Lat Prao district, and Chatuchak district as non-probability sampling technique. The data was then be statistically analyzed and explained in form of frequency, percentage, mean, and standard deviation. The hypothesis was also tested by looking at variances between consumers’



demographic and their purchase intention towards PTT Cooking Gas (LPG) by implementing Analysis of Variance (t-test, F-test) at a significance level at.05 and testing factors affecting to the intention to purchase PTT Cooking Gas (LPG) by using Multiple Regression Analysis. Results The data on consumers’ demographic characteristic revealed that majority of the consumers of PTT Cooking Gas (LPG) were female (68.50%) most of them were at the age between 31 to 40 years olds (43.80%), having bachelor degree (27.30%) and working in private company (43.80%) the average income at 15,001 to 30,000 baht was contributed to about (37.40%) of total participants and about (50.30%) of them were single. For the hypothesis testing, the study on the differences of demographic levels towards the consumers’ intention to purchase PTT Cooking Gas (LPG) revealed that age, education level, occupation, monthly income, status and area district of the consumers resulted in the different level to the intention to purchase towards whenconsumers choosing to use PTT Cooking Gas (LPG) at a significance level at .05. In view of above, this testifies while accepting the H1 and rejecting H0 as the difference in demographics influences the customer’s intentions to purchase the PTT Cooking Gas (LPG). The factors that affected consumer’s satisfaction which towards consumers’ purchase intention PTT Cooking Gas (LPG) included: 1) The product features are user friendly, 2) Overall, I am satisfied as a consumer to use PTT Cooking Gas (LPG), 3) PTT Public Company Limited keeps the customers updated about the information of existing or new products with improvements, 4) Overall, I am satisfied with PTT Public Company Limited, and 5) Will you repurchase PTT Cooking Gas (LPG)?, respectively. In view of above, this testifies while accepting the H2 and rejecting H0 as the difference in customer satisfaction will influences the customer’s intentions to purchase the PTT Cooking Gas (LPG). Conclusion This research study explored the consumer’s intentions to purchase the PTT Cooking Gas (LPG). It helped revealing factors about consumer satisfaction and factors on product quality that can be used and applied for better development and improvement.



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