Factor Analysis of the Variables Responsible for Shoppers Decisions

INTRODUCTION

The success in business mainly depends on understanding role of positive emotions, cognitive abilities and quality of service provided to customers. The customers must be satisfied and should be happy with the external as well as internal environment at shopping place. The business houses which take care of positive emotions of the customers are able to achieve their set financial targets in each financial year. The needs and choices of customers should be on top priority to achieve success in business. It has been a subject of research to find out liking and disliking of customers and expected responses of staff responsible for providing services in the shopping malls. It is very important to identify those cognitive abilities and emotions of the customers which will help to improve the quality of products and quality of service. Happiness is the emotion most people want to experience because it is positive and bring happy feelings like joy, surprise, fun, laughter, relaxation and serene or happiness. Emotions deliver positive feelings counteracting stress and allow for greater flexibility as well as ability to navigate conflict with others. It promotes more creativity and better ability to solve problems by using intellectual abilities. Surprise is the briefest emotion in length and considered to be neutral and not necessarily pleasant or unpleasant. Fear is an unpleasant feeling that can be the most traumatic and toxic of all emotions. Emotions are considered to be a biological state closely associated with nervous system which results in bringing physiological and psychological changes in the body and mind and can be noticed in the feelings and thought process of an individual. Mood, Temperament and Disposition are generally thought to be interrelated with emotions.

The data was collected from the customers who had purchased different items from Archies shops located in Danik Bhasker Mall, Race Course Road, Gwalior, M, P. The area for collecting sampling was Archies shop located in Danik Bhasker Mall, Race Course Road, Gwalior, M.P. The sampling was based on convenience sampling, because selected customers were those who consented to give their responses on the questionnaire. The data was collected by means of non-probability sampling. The sample size for the study was 120 customers being selected for the study who agreed to fill up the questionnaire from the total of 500 customers Reliability of questionnaire is a way of assessing the quality of the measurement procedure used to collect data. This self-structured questionnaire internal consistency was very high (Cronbach's alpha = 0.906). The self-structured questionnaire test-retest reliability indicates a good temporal concordance (Spearman rho = 0.868, p < 0.001). Factor analysis was applied to investigate the dominant factors of making shopping decisions, for doing so the Principal Component Analysis method has been used and the final solution was obtained by varimax Rotation method. Eleven purchase making variables were selected for this study namely happiness, sadness, Courtesy of staff, Staff knowledge about product, Quality of service, Past experience (memory), Color combination, Appearance of Equipment, Quality, Utility, Cost

The Analysis and interpretation of data Representing KMO and Bartlett's Test is presented in table no 1.

Table 1 represents the KMO (Kaiser-Meyer-Olkin) which is a measure to test sampling adequacy. BTS (Bartlett‘s Test of Sphericity) is a measure to test the null hypothesis that the obtained matrix is an identity matrix. Value of KMO range from 0 to 1. Zero indicates that the sum of partial correlation indicating diffusion in the pattern of correlation in this condition it may be concluded that factor analysis is appropriate. Value near to 1 indicates that pattern of correlation are relating compact, in this condition factor analysis is good. In this study KMO values was found .511, which is closer to 1 in comparison of 0. This shows that the developed factors are reliable. Already norms are available in case of KMO. As per the norms, in the present study, sample adequacy was found mediocre. In the present study relationship between the variables. Therefore factor analysis is appropriate.

Figure 1 shows the scree plot which is obtained by plotting the factors (along X axis) against their eigenvalue (along Y axis). This plot shows that only four factors have eigenvalues above elbow bent; hence only four factor have been retained in this study. Further varimax rotation with Kaiser Normalization have been used and the analysis of data is presented in table no.2.

Table 2 represents the results of varimax rotation. It is evident from above table that first factors beaning impact on shoppers decision have been found to be past experience, colors combination, appearance of items, and cost of items as the loading value obtained is more than 0.7 or equal to 0.6. The second factors beaning impact on shoppers decision have been found to be quality and utility of items, as the loading value obtained is more than 0.7. The third factors beaning impact on shoppers decision have been found to be quality of service, as the loading value obtained is more than

0.7. The factor extracted and the variance explained by these factors are presented in table 3.

Total Variance Explained It can be seen from the above table that after rotation, is having percentage variance i.e. 21.02 for first factor, 15.62 for second factor, 13.25 for third factor, 11.24 for fourth factor and 9.813% for fifth factor respectively of the total variance. Thus, all these factors together explain 70.9% of the total variance. In order to develop a test battery to measure the variables responsible for decision making of shoppers, the eigenvalues for each factor is shown in table 3 for only those factors are retained whose eigenvalues are 1 or more than 1. Hence eigenvalue for the first four factors have been retained for analysis. The factor 1 derived through the analysis of data for developing test battery is presented in table no. 4.

The analysis of data of factor 1 explains why a person is attracted towards a shop in the mall. The loading values in the table are above or close 0.7 hence they are retained for the battery development. The Cost, Appearance of the equipment, Color combination and Past memory play an important role to buy items from retail shop. The cost is the variable which initiates the emotions of sadness or happiness as a person largely wants to buy things according to his or her budget. The appearance and color effect on shopping decision. The past experience related to a particular shop also affects a person to visit the shop again and again or choose from other options. Good past memories related to last shopping also decides the shopping decision. The factor 2 derived through the analysis of data for developing test battery is presented in table no. 5.

The analysis of data of factor 2 explains explains the actual reasons of spending money on purchase. The loading values in the table are above or close 0.7 hence they are retained for the factor battery development. The Subjects responded largely that they make decisions of shopping which ultimately depends on the utility and quality of products. The emotions obtained by factor 2 are examined by the reality of shopping decision. A person visiting the shop evaluates the cost, appearance of equipment, color combination and get feeling of happiness and surprise and on the other hand if the quality is poor and utility is less a person may get emotion of Sadness or disgust and finally affect his decision. The factor 3 derived through the analysis of data for developing test battery is presented in table no. 6.

The analysis of data of factor 3 explains the actual impact of quality of services and staff knowledge on purchase. The loading values in the table are above or close to 0.7; hence they are retained for the factor development. The factor 3 is really important for the shop owners to understand how to influence the shopping decision of shoppers with help of working staff. The sales team with better knowledge about the product is able to convince costumers to buy more than expected. The best explanation regarding the warranty, return policy always leaves significant mark on the shopper‘s decision. If they don‘t like the product, the sales team will replace it in minimum possible time. The way a sales team deals with their customers have

The analysis of data of factor 4 explains the actual impact of happiness on shoppers decision. The loading values in the table are above 0.7, hence it is retained for the factor development. Factor 4 is the emotion of happiness which costumer experience while making a purchase. Buying the best quality with suitable price would make a state of happiness for making a decision to buy items. It is further to state that Factor 1,2 and 3 have jointly contributed to the factor 4 as the decisions starts operating right from entering the shop and experiencing the emotions of buying within him/herself or not buying. Happiness in terms of shopping can be assessed on the basis of the cost, appearance, color, utility, good past memory, quality and friendly staff and knowledgeable sales teams in the respective shop. The total combination of factors having impact on shopper‘s decision is presented in table no. 8.

The above table reveals that the cost, appearances, color combination, past experience, utility, quality product, quality of services, staff knowledge and happiness contributes to shoppers decision.

A costumer is attracted towards a shop on these specific variables that are Cost, Appearance of the equipment, Color combination and Past memory. Costumer cognition in decision making process finds its root in product quality and utility. The sales team with better knowledge about the product convinces costumers to buy things. The best explanation product the sales team will replace it in minimum possible time. The way a sales team deals with their customers have an impact on shopper‘s decision. The last emotion felt on purchasing the items is Happiness as the other pre-request factors are completed.

The following conclusions may be drown: 1. It may be concluded that emotion of happiness and surprise have positive impacts, whereas emotion of sadness and fear have negative impact on Shoppers decision in purchasing. 2. It may further be concluded that cognitive qualities contribute to evaluate the cost, quality and appearance of items and hence finally have impact on shopper decision. 3. It may further be concluded that knowledge about products and quality of services of working staff have significant impact on shopper decision. 4. It may further be concluded that most significant factors contributing to the decision making of customers are colors combination, quality of product, happiness and service quality.

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Ph.D. Scholar, Jiwaji University, Gwalior