UNIVERSITY OF GONDAR

COLLEGE OF BUSINESS AND

ECONOMICS
DEPARTMENT OF MANAGEMENT
MBA PROGRAM

Course Tittle: marketing management

_____________________________________________________
course code:MAMM5011

Individual Assignment

PREPARED BY:
Ahmed Bashir Hassan IDNo:GUR/05054/12

Submitted To: Dr. Aschalew adane

Gondar, Ethiopia

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Q1 The study title is factors Which Influence the Buying Behaviors of Customers with Multiple
Regular Customer options in case of filtu town

Introduction
The main purpose of the study was to find out if the basic idea of issuing customer option still
holds in a situation where a customer owns two or more of such option, and which factors
possibly influence the buying behavior of such customers.

Customer option are issued to customers by several major shops as a marketing strategy to
strengthen customer relationship and for that matter the customer loyal buying behavior.

The study answered the following questions:

1. Does the basic purpose of customer option still holds in a situation where a customer has two
or more cards?

2. What factors influence the buying behavior of customers with multiple regular customer
options?

Limitation of study
This study is conducted Somali regional state specially filtu woreda and it concerned only in to
filtu woreda not includes other woreda in the region.

Literature
The theoretical framework presented in this chapter is divided into two parts. Firstly, buyer
behavior is discussed, more specifically the details of customer decision-making process. The
second part deals with creating values for customers which entice customers to buy repeatedly
from a particular shop (customer retention)

Buyer decision-making process: Research shows that customers go through a five-stage

decision-making process in any purchases made. The individual stages are summarised in the
diagram below followed by brief explanations. buyer decision-making process Information
Search Evaluation of Alternatives Need Recognition & Problem Awareness Purchase Post-
Purchase Evaluation 14 This model is very paramount for everyone who makes marketing
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decisions. The model compels marketers to consider the complete buying process rather than just
the purchasing decision. The model shows that customers go through five essential stages in
every purchase. However, in more frequent purchases, customers sometimes skip some of the
stages. For example, someone who is buying a favorite drink would recognize the need for thirst
and go straight to the purchase decision, skipping information search and evaluation. However,
the model is very important when it comes to understanding any purchase involving some detail
considerations (Jobber, 2001, p 65).

Creating Value for Customers/ Customer Retention After a customer has been able to determine
a solution to his needs and wants, the next line of action is where to visit for optimum services to
solve his problems. To make it simple, service providers or retailers are expected to offer good
measures that will entice customers to visit their shops. Most importantly, the retailers try to
establish a strong relationship with the customers such that they will continue to buy regularly
from their shops, instead of other competitors. Successful retailers, in this regard, are very much
concern about customer retention. Customer retention could be described as the activity that is
performed by organizations to establish long-term relationships with customers in order to
reduce customer defections (Jobber, 2001, p 689). When a customer is ready to make a buying
decision, individual retailers are expecting to be chosen over other service providers. However,
other service providers will also be ready to provide solutions to customers’ needs and wants.
Therefore, what makes a customer choose a particular retailer over others? Why customers
choose one shop over another is quite difficult to determine. Customers themselves do not have
much idea. Most of them are of the view that they visit a particular shop because the products or
services are better, but, in reality, it is because they trust the source which gave them the
information about the shop. Many factors determine why a customer will buy goods or services
from a particular service provider rather than other competitors (Abrams, 2008). 18 Studies show
that retailers who thoughtfully and effectively operate around the following five “pillars” end up,
not only satisfying customers but also retaining old customers and attracting new ones (Berry,
2001, p 66).

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Methodology

Research method
This study is mini research which is conducted descriptive method which describes the variables
of the study also the study uses quantitative method which the data is collected through
questionnaire.

Sample method
The study used convenience sampling method which is selected the sample from target
population through personal judgment which the researcher takes the decision of who will be
selected to sample of the study

Sample size
The study used the sample of 30 persons which is selected through personal judgment and this 30
people used to find the conclusion of the study

Data collection method

The study used quantitative method of data collection which conducted structured questionnaire
that gives to respondents in order to get final conclusion. The study conducted this method
because of its most appropriate method

Data analyzing method

The study used tabulation and charts in order to find the solution of study and other statistical
methods which facilitate to analyze the data.

Chapter four

Data Analyzing
Part one

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Basic information of the respondents: The first two questions are Gender, age and range of
responder. The purpose of these questions is to determine which responder qualifies for the
purpose of the study.

Table 1 gender of respondents

Item Female male Total

Gender 5 25 30
percentage 17% 83% 100%
Source:2020

This indicates that 5(17%) of the respondents are female and remaining 25(83%) respondents are
male which shows that the majority of respondents are male.

Table 2 age of respondents

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2

18-25
26-32
15
33-40 source 2020
>40
10 this indicates that 15(30%) of the respondents are 18-25
ages, 10(33%) of respondents are between 26-32 ages,
2(7%) of respondents are between 33-40 ages and 3(10%)
of respondents are >40 ages. This shows that most
respondents age are between 18-25.

Part two

This part is main part of data analyzing which shows the opinion of respondents that we are
going to find the solution of the study.

Table 3

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I buy mostly from the shop which is closest to me. This question related to saving the time of
consumers

Item Strongly disagree Don’t agree Stronlyg Total

disagee know agree

I buy mostly 1 3 2 6 18 30
from the shop
which is closest
to me
percentage 3% 10% 7% 20% 60% 100%

Source 2020

This indicates that 1(3%) of respondents strongly disagree, 3(10%) of respondents disagree, 2(7)
of the respondents nether disagree nor agree,6(20) of the respondents agree and 18(60) of the
respondents are strongly agree. This shows that most of respondents prefer that to consume the
shop which closest to them.

Table 4

I buy mostly from the shop where the needed items can easily be located. This question related to
the consumers would prefer the shop which is located where all items can easily find.

Item Strongly disagree Don’t agree Strongly Total

disagee know agree
I buy mostly from the shop 3 1 4 22 30
where the needed items can
easily be located
Percentage 0% 10% 3% 13% 74% 100
%
Source 2020

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This indicates that 3(10) of respondents disagree, 1(3%) of respondents don’t know, 4(13%) of
respondents agree and 22(74%) of respondents strongly agree. This shows that consumer always
prefer the shop which is located center of town or where they can get every they want.

Table five

I buy mostly from the shop which offers low prices. This question related with price effects of
consumer buying behavior.

Item Strongly disagree Don’t agree Strongly Total

disagee know agree
I buy mostly from the shop 3 2 8 17 30
which offers low prices
Percentage 10% 7% 26% 57% 100
%
2020

This indicates that 3(10) of respondents strongly disagree, 2(7%) of respondents are disagree,
8(26) of respondents are agree and 17(57%) of respondents are strongly agree. This shows most
of respondents are agree that price effects consumer buying behavior which consumer prefer the
shop that gives smallest price in the market.

Table six

I buy mostly from the shop where I am treated with respect. This question related to
psychological satisfaction of consumer.

Item Strongly disagree Don’t agree Strongly Total

disagee know agree
I buy mostly from the shop 4 5 6 5 10 30
where I am treated with respect
Percentage 13% 17% 20 17% 33% 100
%
2020

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This indicates that 4(13%) of respondents strongly disagree, 5(17%) of respondents disagree,
6(20%) of respondents neither disagree nor agree,5(17%) of respondents agree and 10(33%) of
respondents strongly agree which is most respondents opinion. This shows that good treatment of
respondents effects the consumers buying behavior.

Table seven

I buy mostly from the shop which has the best rewards for loyal customers. This question related
to consumers may prefer the shop which knows that they are loyal consumer and offer rewards

Item Strongly disagree Don’t agree Strongly Total

disagree know agree
I buy mostly from the shop 1 10 19 30
which has the best rewards for
loyal customers
Percentage 3% 33% 64% 100
%
2020

This indicates that 1(3%) of respondents disagree, 10(33%) of respondents agree and 19(64%) of
respondents strongly agree which most opinion of respondents. This shows that most
respondents prefer the shops which gives reward to the loyal consumers.

Conclusion
Based on the outcomes of all the constructs and the discussion above, the following conclusion
can be made concerning factors which influence the buying behavior of customers with multiple
regular customer options.

The study shows that consumers always prefer the shops which located area which nearest to
them and I recommends the firms may find places which is always nearest to their targeted
consumer.

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The study shows that consumers always prefer the shops which offers lowest price in the market
and I recommend the firm always they should adopt cost switching strategy and they should
offer lowest price in the market in order they attract consumers.

Finally the study shows that the consumer prefer shops which gives them respect and reward in
the market, I recommend the firm always they should treat their consumer fair way and also
gives reward their loyal consumer in order they hold their consumer of the goods and services
they have.

Appendix

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This is questionnaire of study title of Factors Which Influence the Buying Behaviours of
Customers with Multiple Regular Customer options. This study is for educational purpose please
fill the following question with full of carefully

Thank you

Part one: personal information

Item female male 18-25 26-32 33-40 >40

Age
Gender

Part two: respondent opinion regarding to consumer buying decisions

Item Strongly disagre Don’t agree Strongly

disagree e know agree
I buy mostly from the shop
which is closest to me
I buy mostly from the shop
where the needed items can
easily be located
I buy mostly from the shop
which offers low prices
I buy mostly from the shop
where I am treated with
respect
I buy mostly from the shop
which has the best rewards for
loyal customers

Reference

Abrams,Rhonda.2008,USATODAYAvailable:http://www.usatoday.com/money/smallbusiness/col
umnist/abrams/2008-03- 14-why-customers-buy_N.htm (Accessed on 12.12.2011) Barnett,
Shirley. & McIlroy, Andrea. 2000, Building customer relationships: do discount cards work?

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Managing Service Quality, Vol. 10 Iss: 6, pp.347 – 355 Available:
http://www.emeraldinsight.com/journals.htm?articleid=842707&show=html (Accessed on
9.12.2011) Berry, Leonard. L. 2001, Harvard Business Review on Customer Relationship
Management, Harvard Business School Publishing Corporation Boedeker, Mika. 1997,
Relationship marketing and regular customer cards: daily

Q2 Marketing environment and local challenges

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The marketing environment refers to all internal and external factors, which directly or indirectly
influence the organization’s decisions related to marketing activities. Internal factors are within
the control of an organization; whereas, external factors do not fall within its control. The
external factors include government, technological, economical, social, and competitive forces;
whereas, organization’s strengths, weaknesses, and competencies form the part of internal
factors. And I am conducting to this question in the Somali regional state especial in filtu
woreda

Classification marketing environment and their local challenges

1. Micro environment

Micro environment refers to the environment, which is closely linked to the organization, and
directly affects organizational activities. It can be divided into supply side and demand side
environment. Supply side environment includes the suppliers, marketing intermediaries, and
competitors who offer raw materials or supply products. On the other hand, demand side
environment includes customers who consume products. And the following is classification of
micro environment and their local challenges

A Suppliers:

It provides raw material to produce goods and services. Suppliers can influence the profit of an
organization because the price of raw material determines the final price of the product.
Organizations need to monitor suppliers on a regular basis to know the supply shortages and
change in the price of inputs. Since the local merchants have small business they don’t have
actual supplies which effects both supplier and consumers and when the price of raw materials
increase the supplier may shift to an other firm and it effect the previous consumer of that
supplier.

 B Marketing Intermediaries:

It helps organizations in establishing a link with customers. They help in promoting, selling, and
distributing products. And this includes reseller, distributers, marketing agencies and financial
agencies all this has effect the provability of the organization and the local merchants has some

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impacts regarding to this issues. Most of resellers find cheapest firm in order they get much
profit and they were not actual consuming secondly most impact in this local area is lack
infrastructure there no suitable roads which makes in order to deliver the goods town to another
town it may take three day with 250 KM and the rain season there no any car can moveable since
the road is not good. Thirdly financial agencies which facilitate to forward money some place to
an other and this local area theirs no enough financial agencies which facilitate the buying of
goods.

C. Competitors:

It helps an organization to differentiate its product to maintain position in the market.

Competition refers to a situation where various organizations offer similar products and try to
gain market share by adopting different marketing strategies and in the local area there is a lot of
competitors with some industry which the firms always effects the selling price of the goods and
mostly effect the second movers since always pricing depends on the first mover.

D. Publics

There are wide range of other organizations and individuals in a firm’s micro-environment who
can directly affect its marketing activities. Most of the times, these publics governs smooth
functioning of the organisations. Company’s image is tarnished badly if any of these variables of
the public’s propagates a negative image about the company. Therefore many companies
develop a public relations department to establish constructive relations with the publics. And
this effect the company images and profitability since the public are all elements that effects the
organization existence for example consumers which can make good image to the company and
public is most micro environment element that effects to the organization and this local area
firms gives consideration to the public to have good image and being in the market long time.

2. Macro Environment

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Macro environment involves a set of environmental factors that is beyond the control of an
organization. These factors influence the organizational activities to a significant extent. Macro
environment is subject to constant change. The changes in macro environment bring
opportunities and threats in an organization. And macro environment classified in the following
factors which have effect the gain of the organization.

Classification of Macro Environment and the local challenges

A, Demographic environment: is the scientific study of human population in terms of elements,

such as age, gender, education, occupation, income, and location. It also includes the increasing
role of women and technology. These elements are also called as demographic variables. Before
marketing a product, a marketer collects the information to find the suitable market for the
product. And those mentioned on the above all effects the firm gaining market share. The firm
should consider which age they are considering. Gender of their consumers, education level,
income and soon all this the should consider and local firm have impacts regarding to this issues
since most of the local people is low income level, low level of education all this effects their
buying decision since the people they don’t have enough knowledge money and soon and this
causes to consume all old fashion goods.

B, Economic Environment:

Economic environment affects the organization’s costs structure and customers’ purchasing
power. The purchasing power of a customer depends on the current income, prices of the
product, savings, and credit availability. And this local area located in the border of Kenya and
Somalia which always the firms being effect is the exchange rate since the goods is coming from
Somalia and their normal currency is dollar and there is no official regulation of the exchange
rate which always effects the local firms for example if rate of exchange today is 1$=45
tomorrow it may become either 47 or 43 so this makes inflation so the price of goods is flexible
which always change and its impact to the local people. And there is also unemployment rate
which always effects the firm gaining economic opportunity.

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C. Natural Environment:

Natural environment consists of natural resources, which are needed as raw materials to
manufacture products by the organization. The marketing activities affect these natural
resources, such as depletion of ozone layer due to the use of chemicals. The corrosion of the
natural environment is increasing day-by-day and is becoming a global problem. The main
problem of natural environment which effects the marketing issues is drought, water flooding,
etc. since this area has only two raining seasons mostly is drought which makes to the people
displacement since most of the local is livestock they may find some place which have water.
And also in the raining seasons there may be water flooding which effect the local people and
this can cause losing of their assets and soon, and other natural problems in local area is the
raining seasons there is no moving of cars since the road is not spelt which causes inflation, lack
basic necessity to the house hold.

D, Socio-Cultural Environment:

Socio-cultural environment is constituted of institutions and other forces that influence society’s
basic values, perceptions, preferences, and behaviors. Therefore, it is important for the marketer
to have a complete understanding of the cultural values of a society in which he is doing business
or going to do his business. And also socio culture effects the profitability of firms since the
culture is norms and values of the people so that every that conducting business first must
consider the culture of that society and in this local area the culture effect the commercial issues
since now days the African nations culture shift to the western all African youth accept western
culture and in this local area old peoples may reject some that can be against to their culture
which being problem or opportunity to competitors in the industry.

E: Political-Legal-Regulatory Environment:

Political environment is one of the less predictable elements in an organization marketing

environment. The political environment consists of laws, government agencies, and pressure
groups that limit various organizations and individuals in a given society. All regulation that

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being accepted in the country wide is legal and every one must flow and in this local area being
most element that effects the firms since its located in the border and all goods coming from
other nations is illegal and this cause must of the time the merchants fallen all their wealth and
this first and for most element that effects the commercial or marketing issues.

F: Technological Environment:

Technological changes have brought numerous changes in human lives in all the fields.
Technology discoveries and developments create opportunities and threats in market. The
marketer has to keep in view today’s technology while formulating its marketing activities. And
technology changes day to day which the life of all of us but when it comes developing countries
it being problem the changes of the technology since the don’t have enough capital that worth the
new technology which exist in the era this also effects the local people since the technology
changes after day to day it being some ones problem or an other hand opportunity for example if
the today where using computer for recording transactions tomorrow may come a computer
which facilitate marketing issues such as online shopping this beings problem to local people
since don’t enough capital as well as knowledge to adopt this technology.

Q3 five local advertisement

Newspaper: Newspaper advertising can promote your business to a wide range of customers.
And news paper is advertisement technique option which we can promote our products but when
we look in this local area in not that much advantage to advertise your products since most of the
people can’t read as well as the young people are being busy on their smart phones and in this
local area people small attention to the news paper.

Magazine: Advertising in a specialist magazine can reach your target market quickly and easily.
And magazine is the journal that announced by every day which can get new information which
quick and acceptable but in this local area the rate of reader are too small when we look our
target audience this also is not acceptable in this local people sine the rate of readers are too
small.

Radio: Advertising on the radio is a great way to reach your target audience. If your target
market listens to a particular station, then regular advertising can attract new customers. And

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radio is most common that you can reach your target audience and is most media transaction in
this local area and we can say that radio is most and best advertisement technique in this local
area.

Television: Television has an extensive reach and advertising this way is ideal if you cater to a
large market in a large area which facilitate to see the kind of goods their color and most
attractive advertisement technique and in this local area is second one after radio which
commonly used to the local people and after time if may become the leading since the
technology is growing too fast.

Online: Being on the internet can be a cost-effective way to attract new customers. You can
reach a global audience at a low cost. Online shopping being adopted mostly in the world but in
our nation only consumer that you can gain is youth which mostly adopted now days in the
technology but when we look our internet connection and our government regulation it not
possible to adopt in this style of marketing but we can only use for advertisement so in this local
area we can say that it doesn’t exist online or social media advertisement.

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