An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market

Jalal Rajeh Hanaysha

doi:10.1108/prr-08-2017-0034

Abstract

Purpose The purpose of this paper is to examine the effects of corporate social responsibility, social media marketing, sales promotion, store environment and perceived value on a purchase decision in the retail sector. Design/methodology/approach A quantitative research methodology was used and the data were collected from 278 customers of retail stores in Malaysia. The collected data were analysed using SPSS 19 and structural equation modelling on AMOS. Findings The findings showed that corporate social responsibility has significant positive effects on a purchase decision, whereas sales promotion has a negative effect on purchase decision. The outcomes of this study also indicated that store environment has a significant positive effect on consumers’ purchase decisions. Contrary to expectations, the findings revealed that the effect of social media marketing on purchase decision is insignificant. Finally, the results showed that perceived value has a significant positive effect on a purchase decision. Originality/value The findings of this study contribute to an understanding of the importance of the selected factors in affecting a consumer’s purchase decision in the retail industry.

Highlights

In today’s continuously changing and dynamic business environment, it has become necessary for retail managers to clearly understand and foresee how different types of consumers behave when buying different products and services to fulfil their needs
This study aimed to examine the effects of corporate social responsibility, social media marketing, sales promotion, store environment and perceived value on purchase decision in the retail industry
The findings revealed that corporate social responsibility has a significant positive effect on purchase decision and this is in line with previous researches (Elg and Hultman, 2016; Green and Peloza, 2011)

Summary

Introduction

In today’s continuously changing and dynamic business environment, it has become necessary for retail managers to clearly understand and foresee how different types of consumers behave when buying different products and services to fulfil their needs. To establish a competitive advantage in the marketplace, several retailers have focused on creating favourable images about their brands in the minds of consumers to influence their purchase behaviour (Shamsher, 2015). Consumer behaviour emphasizes on understanding the purchase decision process of individual consumers and how they utilize their existing resources such as time, money and effort to get a product or service. The full terms of this licence may be seen at http://creativecommons.org/ licences/by/4.0/legalcode

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