Consumer Confidence Index Predict Behavioral Intention To Purchase

Abstract

Despite widespread attention given to measuring consumer confidence index (CCI), the mechanism by which consumers behavioural spending intention is influenced by the CCI is less well understood. We aim to evaluate the link between consumer confidence and consumer spending intention by proposing three objectives: (1) to identify different categories measuring consumer confidence, (2) to examine the correlation among the categories; perceived personal finance (PPF), perceived consumer price (PCP), and perceived economic situation (PES), and whether these correlations are significant, and (3) to examine the causal effects of PPF, PCP and PES on consumer’s behavioural intentions: to buy house, to buy vehicle, and to go for holidays. This study collected data from 500 Malaysian consumers via survey monkey and used various statistical techniques; EFA, correlation, and logistic regression analysis, to analyse the data. The results reveal the significant correlation between these factors except the correlation of PCP with other factors. Additionally, the causal effects revealed that consumer’s personal finance and general economic situation of the country made significant contributions to the prediction of consumer intentions to buy house and to go for holidays, whereas consumer price does not significantly predict the behavioural intention at all. The results suggest that consumers’ personal finance is consistent and a significant predictor of behavioural intentions to buy products/services.