COMPARATIVE ANALYSIS OF FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR IN FORMAL AND INFORMAL RETAIL OUTLETS IN SOUTH-WEST NIGERIA
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Date
2017
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University of Ilorin
Abstract
Understanding the buying behaviour of consumers has been difficult for owners of retail outlets; it is
therefore a subject of debate in existing literature because of its unpredictable nature. This study
undertook a comparative analysis of factors influencing consumer buying behaviour in formal and
informal retail outlet in South-west, Nigeria. The objectives were to: (i) examine the differences in
the effect of cultural factors on consumer buying behaviour in formal and informal retail outlets; (ii)
determine the different effects of social factors on consumer buying behaviour in formal and
informal retail outlets; (iii) investigate the differences in the effect of demographic factors on
consumer buying behaviour in formal and informal retail outlets; and (iv) examine the differences in
the impact of psychological factors on the consumer buying behaviour in formal and informal retail
outlets in South-west, Nigeria.
The study adopted survey research design. The study population is infinite. Stratified sampling
technique was employed. A sample of 580 consumer respondents was selected based on Godden
model sample size determination formular for infinite population. Primary data were collected
through structured questionnaire and analysed using ordered logistic regression and t-test of mean
difference at 5% level of significance.
The findings of the study were that:
i. cultural factors have positive and significant effect on consumer buying behaviour in formal
and informal retail outlets with wald of 66.02 and 28.28; with p<0.01 and p<0.01
respectively and the t-test calculated 10.9027 and tabulated 1.644854 show that there is
significant difference in cultural factors in both retail outlets;
ii. social factors have significant effect on consumer buying behaviour in formal and informal
retail outlets with wald of 50.89 and 28.32; with p<0.01 and p<0.01 respectively and the
t-test calculated 12.1258 and tabulated 1.644854 show that there is significant difference in
social factors in both retail outlets;
iii. demographic factors are significantly different in both formal and informal retail outlets with
t-test calculated 12.2068 and tabulated 1.644854 and a positive significant effect on
consumer buying behaviour in formal and informal retail outlets with wald of 41.22 and
22.90; with p<0.05 and p<0.01 respectively; and
iv. psychological factors are significantly different in both formal and informal retail outlets
with t-test calculated 12.4119 and tabulated 1.644854 and a positive significant effect on
consumer buying behaviour in the formal and informal retail outlets with wald of 24.14
and 23.18; with p<0.01 and p<0.01 respectively.
The study concluded that all the four factors influencing consumer buying behaviour have positive
effects on consumer buying behaviour and they differ significantly in both formal and informal retail
outlets. Therefore, the study recommended that retailers should include in their marketing plan,
products that are favoured by cultural attributes and make available goods that are tailored towards
individual social needs. Management should also take into cognizance the most important
demographic and psychological factors as these create good impression in the minds of consumers
and also influence their buying behaviour.
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Keywords
COMPARATIVE ANALYSIS, CONSUMER BUYING BEHAVIOUR, FORMAL AND INFORMAL RETAIL OUTLETS, SOUTHWEST, NIGERIA