Analyzing the factors that influence the buying behaviour of consumers in Fuvahmulah when purchasing luxury products / Aishath Ahmed

Abstract

This is a dissertation prepared in partial fulfillment of the requirements for the Full-Time Masters in Business Administration from Villa College, Maldives in affiliation with the University of West of England. The main purpose of this study is analyzing the factors that affect consumer buying decision in making luxury purchase with regard to the consumers in Fuvahmulah City and to respond with the research question, four questions are formulated and tests have been carried out to find the significance of the questions. A literature review was done to analyze the factors theoretically. The researcher divides those factors into four categories known as demographic factors, social factors, product traits and psychological factors. A theoretical I conceptual frame work of the study was done. To respond with the research problem, a questionnaire consisting 21 questions were used to collect data. Questionnaire has been distributed to 50 individuals with the help of friends and three days were given for the individuals to return back the questionnaire. All the respondents return back the questionnaire and the sample size is 50. That is below 1% of the total population of Fuvahmulah. Since the data set is a firsthand raw data, each question is being presented and analyzed in chapter 4. Each question is targeted to analyze the factors that has been reviewed in chapter 2. The questions are being presented and analyzed with the help of tables, graphs and charts generated from SPSS. Moreover, to test the significance of the research questions mentioned in chapter 1, the Cross-tabulation method in SPSS in used. Findings were presented with the help of Chi-Square chart. Findings of the study showed that there is enough evidence to conclude that income of individual has significant relation with preference for high quality and branded goods. However, findings showed that there is no enough evidence to support that the occupation of individual has significant relation with the frequency of purchasing luxury items. Additionally, findings resulted that there is enough evidence to support that the age of individual has significant relation with searching for information regarding a luxury product. It also showed that there is enough evidence to support that the belief that goods with high price are of good quality have significant relation with repeat purchase of known brands The results of this analysis can be used to find the factors that correlate with specific buying behavior of individuals of Fuvahmulah. The findings may be useful for the businesses in developing marketing strategies of luxury goods and consumer goods.