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THE IMPORTANCE OF DEMOGRAPHIC FACTOR OF CONSUMERS ON

PURCHASING DECISIONS

Article · January 2019

DOI: 10.5281/zenodo.3694200

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 Socioeconomica – The Scientific Journal for Theory and Practice of Socio-economic Development
2019, 8(15): 1 - 12

Original Scientific Paper

DOI: dx.doi.org/ 10.5281/zenodo.3694200

THE IMPORTANCE OF DEMOGRAPHIC FACTOR OF

CONSUMERS ON PURCHASING DECISIONS

Adis Puška
Lecturer, College Lecturer, College of Computer Science and Business Communications
eMPIRICA, Brcko District, Bosnia and Herzegovina

Selma Berbić
Assistant, College of Computer Science and Business Communications eMPIRICA, Brcko District,
Bosnia and Herzegovina

Haris Bečić
Student, College of Computer Science and Business Communications eMPIRICA, Brcko District,
Bosnia and Herzegovina

Abstract

This work will explore the way demographic characteristics influence purchasing decisions on the
example of buying technical products. Research for this work was conducted in the area of northeast
of Bosnia and 192 examinees have filled out the questionnaire. After factor analysis were completed
allegations of purchasing decisions are grouped into six factors, but two factors discarded from
further analysis because the data collected for these factors were not reliable, as the results of values
of Cronbach’s Alpha indicators showed. Results of Multivariate analysis of variance (MANOVA)
showed that gender, income level and employment status of examinees significantly influence the
purchasing decisions among consumers. Analysis of variance (ANOVA) has further shown that females
who have income less than 400 KM and have less than 25 years the most of the time are dedicating to
purchasing decisions. The results of this analysis showed that the most satisfied with their purchasing
decisions are male respondents who have incomes of 400 and 800KM, and at the same time are
students and have less than 25 years.

Keywords : Consumer behavior, Buying decisions, Demographic factors, Factor analysis, Multivariate
analysis of variance
JEL Classification: C30, D10, J10
 Adis Puška, Selma Berbić, Haris Bečić
The importance of demographic factor of consumers on purchasing decisions

1. Introduction

Nowadays more and more importance is being given to the study of the importance of consumer
behavior in marketing. The environment in which companies are operating is increasingly changing
and is very difficult to fight for the customer and market share [Khaniwale, 2014]. Each company
must adapt to changes in the market in order to survive. Companies have to get to know their
customers and their purchasing decisions.
Consumer behavior is a complex process that involves a variety of activities including: search,
selection, purchase, use, evaluation of products and services in order to meet their needs and desires
[Belch & Belch, 2004]. Number of factors divided into internal and external factors, and which can
range from short-term to long-term emotional feelings, are affecting customer behavior [Hirschman,
1985]. Marketing experts have to understand the dynamics of internal factors that are influencing
consumers' decisions. These factors vary from person to person, from situation to situation;
therefore it is important to draw some generalizations of consumer behavior [Komal Prasad & Jha,
2014].
Main decisions that consumer returns are: what he buys (which products and services), how many
purchases (amount), where (place of purchase), the time spent shopping and payment methods
[Khaniwale, 2014]. This research is focused on the purchasing decision in the case of purchases of
technical goods. The aim of this research is to find out how consumers behave and how they are
deciding on buying technical equipment.

2. Theoretical Framework and Research Hypotheses

Consumer behavior involves the study of individuals, which method they are using to select
products, and how they are using the products and services to fulfill their desires. Consumer
behavior refers to all thoughts, feelings and actions that the individual has or had before or during
the purchase of the product, service or idea. Main activity in the study of consumer behavior is the
process of purchasing decision. The whole process of purchase decision making involves thinking
about what to buy, what brand is good or appropriate, where to shop from and when, how much
time to spend and at what intervals. Therefore, the end result of customer behavior is making a final
decision on the product choice, brand choice, choice of retailers, time of purchase, purchase amount
and frequency of purchase [Khaniwale, 2014].
Demographic, behavioral and psychographic factors help to understand consumers and their needs
[Kotler & Armstrong, 2007]. In marketing surveys demographic factors such as age, number of
household members, sex, income level and social class are used extensively, and are considered
good indicators for the study of consumer behavior [Iqbal, Ghafoor & Shahbaz, 2013]. Behavioral
factors refer to way consumer behaves, how they accept certain products, why they accept it, etc.
Psychographic factors are used for determining and evaluating the lifestyle of consumers, the ways
they use their activities, interests and opinions [Tam & Tai, 1998] in this research attention will be
on demographic characteristics of examinees.
When deciding on the purchase of various products consumers are making various efforts. The least
effort is invested in the purchase of food products, deciding when purchasing these products is done
automatically and without much thinking. When buying certain products like cars and some
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2019, 8(15): 1 - 12

technical equipment purchase is preceded by a long deciding and consideration of various options
and ultimately make the final purchasing decision [Markovina, Kovacic & Radman, 2004].
Decisions that require strategic deciding are very specific and are characterized by: high
involvement in decision-making, long-term resources acquiring and budget available for the
purchase of other goods and services [Kos Koklič & Vida, 2009]. Sometimes the purchase of
technical equipment requires major efforts in the decision-making process.
The level of decision making, which comes before the purchase is a very important factor in
marketing research. Based on the obtained data about the level and complexity of decision making
for individual product it is possible to conduct market segmentation and determine the targeted
market where each company will operate. During market segmentation consumers can be divided
according to the degree of involvement in the process to consumers of high, medium and low
involvement. Using that is possible to create marketing messages to targeted consumers that will
have the greatest impact on purchasing decision. Also, data on the involvement of consumers may
be used to customize products. Previous researches have shown different behavior of consumers
when purchasing depending on their involvement [Beatty & Smith, 1987].
The purchase decision-making process that consumer goes through includes following phases
[Engel & Blackwell, 1978]:
1. recognition of the problem,
2. search for information,
3. estimating alternatives,
4. purchasing decision and
5. behavior after the purchase.

The first phase begins with the need or the recognition of the problem. This is followed by a search
for alternatives that includes seeking information from various sources, internal and external
environment, such as experience. The third phase involves consumer criteria in calculating benefits
subjected to evaluating alternatives. When a decision is made, the consumer enters the fourth phase
where the purchase of selected alternatives takes place. The final step involves post-purchase
evaluation and consumer behavior after the purchase [SueLin, 2010].
Many factors influence the purchasing decision making. Demographic factors play an important
role in the purchasing process. Income, age, occupation, and other demographic factors may
influence decision-making [Anderson & Gaile-Sarkane, 2008]. Iqbal Ghafoor & Shahbaz, (2013) in
their work showed that the following demographic factors influence the selection of shops in which
to do the purchase: the level of education, occupation, income level, number of household members.
Sharma & Kaur (2015) in their work proved that sex and marital status significantly affect the way
of purchasing. Alooma & Lawan (2013) in their study showed that demographic factors: age, sex,
marital status, occupation, education and income are the key variables that influence consumer
behavior. Mazloumi, Efteghar, Ghalandari, Saifi, & Aghandeh, (2013) in their study demonstrated
that gender, education, marital status, activity and age play an important role in the buying behavior
of consumers. In accordance with these and other works following hypotheses are set in this work:
• H1 - There are significant differences in the purchasing decision-making with regard to
gender
 Adis Puška, Selma Berbić, Haris Bečić
The importance of demographic factor of consumers on purchasing decisions

• H2 - There is a significant statistical difference in the purchasing decision making with

regard to the amount of household income
• H3 - There is a significant statistical difference in the purchasing decision-making with
regard to examinees level of education
• H4 - There is a significant statistical difference in the purchasing decision-making with
regard to the examinees employment status
• H5 - There is a significant statistical difference in the buying decisions with regard to the
examinees age
• H6 - There is a significant statistical difference in purchasing decisions with regard to the
number of household members among the examinees

MANOVA analysis is going to be used for proving that hypothesis.

3. Research Methodology

Research for of this paper was conducted in northeastern Bosnia and Herzegovina in the period
from January to May 2016. The aim of this study was to examine how respondents make their
purchasing decisions when buying technical products. Convenience sample was used for data
collection. For the realization of this research we have used online questionnaire placed on
scientific portal 1ka.si. Link of research was forwarded to Facebook pages of largest portals in the
region. 2,084 respondents have accessed online survey, and 192 respondents have completed the
questionnaire, that is 9.21%.
The questionnaire consisted of two parts. The first part contained questions about demographic
characteristics of respondents: sex, household income, education, employment status, age and the
number of household members. The second part of the questionnaire contained 21 statements to
which respondents should have answered ranging from "strongly disagree" to "strongly agree"
wherein Likert scale of 5 levels was used. Claims used in this group of questions are adapted from
the following works: Beatty & Smith (1987), Jeyakumar & Paul Robert (2010), Bui, Krishen and
Bates (2011) and Waheed, Mahasan & Sandhu (2014). Based on these works we have adjusted
claims for consumer behavior when purchasing technical equipment. Statistical analysis of the data
obtained in this study was performed using SPSS 20 software tool.
In this work following steps will be used:
1. Presentation of the demographic characteristics of respondents,
2. Grouping claims using factor analysis, and testing reliability of measurement scale of
collected data,
3. Testing hypotheses using multivariate analysis of variance (MANOVA)
4. Analysis of the influence of certain demographic characteristics of respondents in
purchasing decisions via analysis of variance (ANOVA).

In order to examine results of the factor analysis we will use indicators of Kaiser-Meyer-Olkin's
(KMO) adequacy of the sample and Bartlett's test of sphericity. KMO value ranges in the closed
interval from zero to one. If its value is less than 0.6 correlation matrix is not acceptable for factor
analysis. In Bartlett's test it is preferred that the level of significance is less than 0.05 (p <0.05).
[Puška, Maksimović & Fazlić, 2015]. During the implementation of factor analysis varimax
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 Socioeconomica – The Scientific Journal for Theory and Practice of Socio-economic Development
2019, 8(15): 1 - 12

rotation of factors and Kaiser Normalization will be used. Reliability of the scale of collected data is
tested using Cronbach's alpha coefficient whose results range from zero to one. If the value of this
indicator is close to zero, then these data are unreliable, and if they are close to one then they are
very reliable [Kozarević & Puška, 2015]. In order to accept a factor it is necessary that the value of
Cronbach's alpha is higher than 0.7 [Tavakol & Dennick, 2011].
MANOVA is a statistical test for comparison of variances of arithmetic means of several groups,
unlike the ANOVA analysis which hipper forms comparison of variances of arithmetic means of
only one group or a factor. These analyzes are used to answer the question: Do the changes in the
independent variable / s have significant effects on the change in the dependent variables [Grbić &
Puška 2015]? In conducting of these analyzes we will examine how the demographic characteristics
of respondents influence the purchasing decisions when buying technical products.
Testing of research hypotheses will be conducted at the level of inferential statistics of 0,05 (p <
0,05), which means that if the significance level is lower than the set level the null hypothesis as
accepted, otherwise the alternative hypothesis is accepted and the null hypothesis is rejected.

4. Research Methodology

During the presentation of research results firstly we will present the basic characteristics of the
respondents included in these results which are presented in Table 1.

Table – 1. Results of the demographic characteristics of the respondents

Demographic variables Frequency Percentage
1. Male 118 61,5%
Sex
2. Female 74 38,5%
1. Less than 400 25 13,2%
Household income in 2. 401-800 57 30,0%
KM 3. 801-1200 44 23,2%
4. More than 1201 64 33,7%
1. Primary education 6 3,1%
2. Secondary Education 86 44,8%
Level of education:
3. Higher education 32 16,7%
4. University degree 68 35,4%
1. student 53 28,0%
Employment status: 2. employed 99 52,4%
3. unemployed 37 19,6%
1. 15-24 64 33,3%
2. 25-40 103 53,6%
Age:
3. 41-54 22 11,5%
4. 55 and more 3 1,6%
1. 1-2 40 21,5%
Number of 2. 3-4 106 57,0%
household members: 3. 5-6 43 18,3%
4. 7 and more 6 3,2%
Source: Analysis results

Of the total 192 respondents, 61.5% of respondents are males, while 38.5% are females. Observing
the household income of respondents, most of them have monthly household income of more than
1200 KM which is 33.7% of the respondents, next are respondents with a monthly household
income between 401 and 800 KM which is 30.0%, followed by respondents that have a monthly
 Adis Puška, Selma Berbić, Haris Bečić
The importance of demographic factor of consumers on purchasing decisions

household income between 801 and 1200 KM with 23.3%, and finally last group of respondents
with monthly household income of less than 400KM with 13.2%.
Educational background of respondents is that the most respondents are with a high school
education with 44.8%, followed by respondents who have a university degree with 35.4%, then
come respondents with higher education who are represented with 16.7%, while the least
respondents have a lower level of education who are represented with 3.1%. Observing the
employment status of respondents we can see that the most of respondents are employed with
52.1% followed by students with 27.9%, while there are the least respondents who are unemployed
with 19.5%.
When it comes to the age of respondents the most respondents are aged between 25 and 40 years,
with 53.6%, in second place are the respondents aged between 15 and 24 years with 33.3%,
followed by respondents aged between 41 and 54 years with 11.5% while the least respondents have
more than 55 years with 1.6%. When it comes to the number of the household members there are
the most respondents with 3 or 4 members in a household with 57.0%, then come those who have
one or two members in the household with 21.5% followed by respondents who have 5 or 6
members in a household with 18.3% while the least respondents have 7 or more members of the
household with 3.2% respondents.
After demographic characteristics of respondents covered in this research have been presented, we
will do grouping and analyzing collected data and determine whether they are acceptable for further
analysis. Grouping statements that are represented in the second part of the questionnaire will be
carried out by using factor analysis whose results are presented in Table 2. Apart from this analysis
the table will contain calculated values of Cronbach's Alpha indicators that will be used to
determine the reliability of measurement scale of the collected data.
The results of the factor analysis (Table 2) grouped claims in six factors. These factors explained
62.404% of the variance of the basic set which is a customary percentage that is present in social
researches (Kurnoga Živadinović, 2004). Value of KMO indicator is higher than the required 0.6
(KMO = .800), while the value of Bartlett's test is lower than set level of significance (p = .000),
which confirms the results of the factor analysis.
The first factor which is called "The role of the dealer in the purchase process," explains 27.458%
of the variance. This factor has grouped five statements which are mostly related to the role of
dealer in making purchasing decisions. Value of Cronbach alpha indicator is greater than 0.7 (.763)
so that can confirm the reliability of the scale of collected data for this factor. Second factor that has
been called "Satisfaction with purchasing decision", included four statements related to the
satisfaction of respondents with the decision on the purchase of technical equipment and this factor
explains 11.879% of the variance of the basic set. Results of Cronbach's alpha for this factor are
greater than 0.7 (.745) which confirms that the collected data are reliable for further analysis. The
third factor called "Searching for alternatives" included four statements that are related to the way
of looking for alternatives by the respondents. This factor explains 7.194% of the variance of the
basic set, and the value of Crobach's alpha is very close to the set level of confidence (.699) so we
can say that data that are grouped by this factor are reliable and acceptable for further analysis. The
fourth factor called "Purchase decision" includes three claims that are related to the way in which
respondents decide on the purchase of technical equipment. This factor explains 5.827% of the
variance of the basic set and the resulting value of Cronbach's alpha indicators is higher than the set

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2019, 8(15): 1 - 12

level of reliability (.730) which proves that the data grouped by this factor are reliable for further
analysis.
Fifth factor called "Previous experience" has grouped three claims related to previous experience
with the shop or device that has a positive impact on the purchasing decision. This factor explains
5.258% of the variance of the basic set, and value of Cronbach's alpha for this factor is low (.646),
so we can conclude that the data grouped by this factor are unreliable for further analysis. Low
value of Cronbach's alfa could be caused by a small number of questions, weak correlation between
the questions or heterogenic questions. Sixth factor called "Price and warranty" includes two items
related to the impact of price and product warranty on the purchasing decision. This factor explains
4.787% of the variance of the basic set and the value of Cronbach's alpha is very low for this factor
(.490) and, as with the previous factor it means that the data are unreliable and will not be used for
further analysis.

Table – 2. Factor analysis of acceptability of collected data

Factor
1 2 3 4 5 6
I accept the tips given to me by a salesman .740
When I cannot decide what to buy I ask the seller .738
I ask sellers for additional information .722
Seller plays a significant role in the purchase of .676
technical products
I am looking for alternatives by visiting various shops .559
Factor 1. Role of the seller in purchasing process, explained variance = 27.458, Crobach’s alpha = .763
All the hard work that I put in the process of deciding .784
on the purchase of technical products has paid off
When I buy a device, I feel very satisfied .782
After purchasing I do not feel guilty conscience that I .694
could buy another product
I'm confident in my decision and am not changing it .600
Factor 2. Satisfaction with purchasing decision, explained variance = 11.879, Crobach’s alpha = .745
I ask my friends and acquaintances for help when .656
buying technical products
I am looking for alternatives on the Internet .619
It takes me days to decide on the purchase of technical .564
products
When I collect all possible alternatives I make the .521
decision at home
Factor 3. Looking for alternatives, explained variance = 7.194, Crobach’s alpha = .699
I make decisions on the purchase of technical .774
products at home
Usually I am not making decisions to purchase .744
technical products on my own
I am buying a new technical product only when old .599
one breaks or is outdated
Factor 4. Decision to purchase, explained variance = 5.827, Crobach’s alpha = .730
I am shopping only at certain stores where I have had .756
positive experiences from past purchases
When buying technical products I buy trusted brands .554
When shopping I know exactly which product I will .510
buy
Factor 5. Previous experience, explained variance = 5.258, Crobach’s alpha = .646
Price plays a key role in the purchase of technical .782
products
Warranty length has a very important role in .622
 Adis Puška, Selma Berbić, Haris Bečić
The importance of demographic factor of consumers on purchasing decisions

purchasing of technical products

Factor 6. Price and warranty, explained variance = 4.787, Crobach’s alpha = .490
KMO = .800, χ2 = 1077.792, Bartlett's Test of Sphericity = .000, explained variance = 62.404
Source: Analysis results

The results of the factor analysis have reduced the total number of claims from 21 to 16 that are
grouped in four factors. In further analysis only the first four factors will be used because they have
a reliable measurement scale, while last two factors are discarded from further analysis. Now we
will use MANOVA analysis to examine hypotheses identified in this paper.

Table – 3. Testing the hypothesis using MANOVA analysis

Respondents’ characteristics F-test Sig. Status of
hypothesis
Sex 5.172 .001 Accepted
Household income 1.973 .025 Accepted
Level of education .985 .462 Discarded
Employment status 2.340 .018 Accepted
Age 1.049 .403 Discarded
Number of household members 1.127 .336 Discarded
Source: Analysis results

The results of MANOVA analysis (Table 3) show that three hypotheses are accepted, and three
hypotheses are not accepted. This analysis showed that gender (F = 5.172, p = .001), household
income (F = 1.973, p = .025) and employment status (F = 2.340, p = .018) play an important role in
the purchasing decisions of the respondents. However, this analysis showed that the level of
education (F = .985, p = .462), age (F = 1.049, p = .403) and the number of household members (F
= 1.127, p = .336) do not play a significant role in purchasing decisions among the respondents
included in this research, and that among these variables, there are no significant differences
between their dimensions.
After testing hypothesis with MANOVA analysis we will use ANOVA analysis to examine the
impact of certain factors within the individual characteristics of respondents to determine how and
what factors respondents use when deciding on the purchase of technical equipment.
The results of the ANOVA analysis (Table 4) for the basic characteristic of respondents „Gender“
shows that there is a significant statistical difference in two factors: “The role of the dealer in the
purchasing process” (F = 7.466, p = .007) and “Decision of purchase” (F = 8.704, p = .004), while
in other two factors, there is no significant difference.
The ratio represents the arithmetic mean of the offered answers for certain dimensions of the basic
characteristics of respondents in this case those are members of male and female gender. These
relationships between factors are such that the female respondents have consulted more sellers, have
looked for more alternatives, and got along with more statements when making decisions on the
purchase of technical goods, while male respondents were more satisfied with their purchase
decision.
When it comes to basic characteristic „household income“ obtained results showed that at two
factors there is a significant statistical difference in the offered answers, and those factors are: "The
role of the dealer in the purchasing process" (F = 3.775, p = .012) and the "Decision to purchase"(F
= 2.717, p = .046), for other factors, there is no significant difference in the answers. The results
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2019, 8(15): 1 - 12

that show the ratio are such that the statements related to buying decision, are the most used by
respondents with a monthly household income below 400 KM, and on second place are respondents
with incomes higher than 1200 KM. Based on these results we cannot say that the household
income plays a decisive role in the purchasing decision because the ones who have incomes
between 400 and 1200 KM are the least satisfied with their purchasing decisions because they also
use purchasing decisions the least.

Table – 4. Factors dependency on basic characteristics of the respondents

Respondents’
Factor Variance F-test Sig. Ratio
characteristics
The role of the dealer in the purchasing 4.546 .466 .007 1<2
process
Sex Satisfaction with purchasing decision .946 .496 .223 2<1
Looking for alternatives .347 .531 .467 1<2
Decision to purchase 7.500 .704 .004 1<2
The role of the dealer in the purchasing 2.278 .775 .012
3<4<2<1
process
Household
Satisfaction with purchasing decision .178 .283 .838 3<1<4<2
income
Looking for alternatives 1.664 .601 .054 2<3<4<1
Decision to purchase 2.389 .717 046 2<3<4<1
The role of the dealer in the purchasing process .851 .358 .257 4<2<3<1
Level of Satisfaction with purchasing decision .205 .320 .811 2<4<3<1
education Looking for alternatives 1.021 .581 .196 3<2<4<1
Decision to purchase 1.459 .642 .181 4<3<2<1
The role of the dealer in the purchasing process .267 .430 .651 3<1<2
Employment Satisfaction with purchasing decision 2.277 .784 .025 3<2<1
status Looking for alternatives .830 .315 .271 2<3<1
Decision to purchase 3.454 .036 .019 2<3<1
The role of the dealer in the purchasing process 1.052 .688 .171 4<2<3<1
Satisfaction with purchasing decision .638 .005 .392 3<2<1<4
Age
Looking for alternatives .266 .405 .750 3<2<4<1
Decision to purchase 2.199 .509 .060 2<3<1<4
The role of the dealer in the purchasing process .416 .682 .564 3<4<2<1
Number of
Satisfaction with purchasing decision .791 .274 .285 4<1<2<3
household
Looking for alternatives 1.254 .008 .115 4<2<3<1
members
Decision to purchase .781 .890 .447 4<2<1<3

Surce: Analysis results

The results obtained for the level of education of the respondents indicate that there is no significant
statistical difference in the answers for any of the factors. What is characteristic about these results
is that the purchasing decision is the most used by respondents who have lower levels of education,
while the order in other dimensions ranges differently in comparison to other factors. So the least
satisfied with the purchasing decision are the respondents with a University degree, respondents
with higher education contact sellers the least and do not make decision to purchase at home, while
respondents with higher education the least look for alternatives in the form of technical goods.
 Adis Puška, Selma Berbić, Haris Bečić
The importance of demographic factor of consumers on purchasing decisions

Using the basic characteristic „The employment status of the respondents“ obtained results showed
that at two factors there is a significant statistical difference and those factors are: "Satisfaction with
purchasing decision" (F = 3.784, p = .025) and the "Decision to purchase" (F = 4.036, p = .019),
while the other factors, do not have significant difference in the answers. Results of the
relationships show that the students are the most satisfied with purchasing decisions, are looking for
alternatives the most, and make decisions at home, while employees contact sellers the most.
Unemployed contact the sellers the least, and are the least satisfied with the buying decision, while
employed respondents look for alternatives the least and do not make decisions to purchase at
home.
The results for the primary characteristic „Respondents age“ shows that there is no significant
difference in any of the factors. As for the relationship, respondents who have less than 25 years
contact sellers the most and look for alternatives, while the most satisfied with the decision are the
respondents who have more than 55 years. Results should be taken with some caution because there
were only three respondents with more than 55 years. Respondents aged between 41 and 55 years
are the least satisfied with the decision, and look for alternatives the least, while respondents aged
between 25 and 40 years the least decisions to purchase make at home.
Observing results obtained for the basic characteristic „Number of household members“ can be seen
that, there isn't significant difference for any of the factors. So it can be concluded that the number
of household members does not particularly effect on purchasing decision. As for the relationship
that the number of household members have on the purchasing decision, the respondents who have
1 or 2 members of the household use salesperson opinions the most, while respondents who have 5
or 6 members in the household are the most satisfied with purchasing decision. Respondents with
seven or more members of the household use purchasing decisions the least.

5. Conclusion

The aim of this paper was to examine all the basic characteristics of respondents that significantly
influence purchasing decisions. For the realization of this research we have used convenience
sample and online questionnaire placed on scientific portal 1ka.si, and link of research was
forwarded to Facebook pages of largest portals in northeastern Bosnia and Herzegovina. In this
way, respondents used in this study are Internet users of these portals. In this way we have collected
192 completed questionnaires. The questionnaire consisted of two parts, first part contained
questions about demographic characteristics of respondents: sex, household income, education,
employment status, age and the number of household members. The second part of the
questionnaire contained 21 statements to which respondents should have answered ranging from
"strongly disagree" to "strongly agree" wherein Likert scale of 5 levels was used.
Another objective of this paper was to determine how dimensions within the individual
characteristics of the respondents use certain factors. Factor analysis was used to group claims
related to purchasing decisions in factors. Conducted factor analysis grouped all claims in six
factors. However, the analysis of reliability of collected data has confirmed that there are two
factors with low value of the Cronbach's alpha and therefore these factors were not used in further
analysis. Busied on that, the number of claims related to the purchasing decisions reduced from 21
of them to 16.

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2019, 8(15): 1 - 12

The results of the MANOVA analysis showed that for the following basic demographic
characteristics there is a significant statistical difference which showed that gender, income level
and the status of respondents play a significant role in purchasing decisions. Three hypotheses are
proven in this research, while other three hypotheses are discarded, because it is proven that there is
no significant statistical difference in following basic characteristics of the respondents: level of
education, age and number of household members.
The implementation of the ANOVA analysis has found that female respondents consult more
sellers, look for more alternatives, and decisions to purchase make at home. Male respondents are
more satisfied with their purchase decision. Then it is proved that people with income less than 400
KM and people with low level of education spend most of their time on the purchasing decision.
Results of this analysis showed that students are the most satisfied with purchasing decisions, are
looking for most alternatives and make decisions to purchase at home, while employees contact
sellers the most. During the observation of the age structure, it has been noticed that respondents
who are younger than 25 years are contacting more sellers, and are looking for more alternatives.
Number of household members can be concluded that it does not particularly effect on the
purchasing decisions.
Based on these results it can be concluded that females who have income less than 400 KM and a
lower level of education and at the same time have less than 25 years, spent most of the time in
searching for alternatives. People who are male and have incomes higher than 800KM and are older
than 55 years, use purchasing decisions the least. The most satisfied with their purchasing decisions
are male respondents, who have incomes between 400 and 800km, and at the same time have a
lower level of education, while being students and have less than 25 years.
However, this study was conducted has its shortcomings which should be resolved in future studies.
The biggest drawback was the questionnaire because the claims about purchase decision-making
were too similar so it was not possible to group the reliable data as shown in the results of
Cronbach's Alpha. In future studies that will cover this topic it is necessary to determine the
variables or factors that are affecting the purchasing decision and make questionnaire based on
these factors. It is also necessary to include more subjects in research and cover a larger territory.
Despite all these disadvantages, this paper represents one of the first papers that explored
purchasing decisions in Bosnia and Herzegovina and that gave significant guidelines for future
researches that will be conducted in this area.

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Adis Puška, Selma Berbić, Haris Bečić

The importance of demographic factor of consumers on purchasing decisions

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