Psychological Factors towards Purchasing Decision among Students in School of Business

Innovation and Technopreneurship

Nurul Amanina Binti Rugiman

School of Business Innovation and Technopreneurship

Abstract
The purpose of this study is to examine the relationship between psychological factors towards
purchasing decision among the students of School of Business Innovation and Technopreneurship,
Universiti Malaysia Perlis. A quantitative method was used in this study for data gathering. 150
questionnaires were distributed to the students in School of Business Innovation and
Technopreneurship, Universiti Malaysia Perlis. The psychological factors are motivation and needs,
perception, and beliefs and attitude.
Keywords: Motivation and needs, perception, purchasing decision

INTRODUCTION Students are a standout amongst the most

critical markets for some organizations that
Understanding students in purchasing
based on the size and characteristics of the
decision is vital for marketers in concocting
market. For advertisers to get and achieve
proper promoting procedures to suit their target
contributions, students are an important
customer. Nowadays, decision on purchasing
segment for them. This is because advertisers
has become turned out to be more mind
will always see the various options that
boggling and is viewed as essential for
students do, including first-choice purchases
students. This is because of the fast difference
without effects.
in the focused worldwide business
environment. Students are being exposed to Psychological factors play important role
advertising, news sources, and direct mailing to determine the consumer behavior.
that give the information because a large Nowadays, students often make purchases on
portion of it has an excessive number of something and continue to make purchase
blended messages. decisions where many do not know that there
are factors that lead them to make purchases
In this era of globalization, students are
and purchase decisions. From a psychological
experiencing the increasingly complex tide of
perspective, a consumer who purchases a
change, either in terms of socio-economic or
product will buy again once the consumer feels
socio-cultural aspects. This change leads to a
the goods are satisfying. If the purchased item
change in lifestyle because of technological
does not satisfy them, the user will not repeat
developments that make the market in a
the action. In the process of making a
country more complex from day to day.
purchasing decision, strategy plays an

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
important role for users to make decisions. marketing tools such as eco labels, eco brands,
Students will think first before buying whether and environmental ads. In this way, consumers
the selection of products is best or not for them. will always look at the types of goods that are
relevant to the interests of the environment.
This paper was conducted to study
Users can be helped to be more aware and
psychological factors and purchasing decision
know about the importance of nature with a
among students in School of Business
scheme such as eco label scheme that can
Innovation and Technopreneurship. This paper
promote environmental use.
discusses the relationship between motivation
At the same time, personal, social,
and needs, perception, and beliefs and attitude
cultural, psychological, product and price
towards purchasing decision. This study is
variables affect the purchasing decision process
conducted to the following research questions:
(Suroto, Fanani, & Nugroho, 2013). Cultural
1. What is the psychological factors variables include employment, religion,
towards purchasing decision among education and income. The cultural element
the students of School of Business that can determine the decision-making process
Innovation and Technopreneurship? is a traditional value or belief that adds to
2. Is there any relationship between certain behavior within a group. Psychological
psychological factors (motivation and factors such as motivation, perception, learning
needs, perception, beliefs and attitude) and memory can allow users to communicate
towards purchasing decision among with the social atmosphere to recognize
the students of School of Business feelings, collect and analyze some information,
Innovation and Technopreneurship? form opinions, ideas, and take action.
Individual characteristics involving ways of
Literature Review
life, occupations, financial conditions, identity,
Purchasing Decision:
and self-idea of the idea can influence one's
obtaining choices.
Factors that are beyond the control of
users having direct or indirect effects on their
Motivation and Needs
way of life often affect their purchasing
decisions (Yakup & Jablonsk, 2012). One of
As indicated by S. Lee (2010), the
these examples is a cultural factor in which
purchaser's motivation to shop in specific
culture persuades the behavior, beliefs and the
stores because of a few factors, for example,
way they learn by communicating or observing
sensible costs, quality products, or sorts of
other societies. Consumer decision making is
items offered. Motivation is a group of
usually against the product. The process
mechanisms to control the development toward
introduced at the beginning of the analysis is an
the target motif. Motives is interior energy that
identification problem, a problem in gathering
guides one's activities towards satisfying or
information, as well as an assessment of choice.
accomplishing the objectives they need. It can
According to Sukri, Meterang, &
likewise demonstrate that buyers purchase the
Waemustafa (2016), consumers will be aware
items that they need and that craving makes
when making purchase decisions when they
them inspired to settle on buy choices to
have perceptions and awareness about the
purchase. In some cases, clients are particularly
existence of green products with green

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
worried about elements, for example, price, require that thing, they will be motivated to
quality of products, or types of the products settle on a choice to purchase.
they offer. However, there are additionally
consumers who could not care less about what Perception
they are purchasing in light of the fact that for
them the merchandise they purchase are the Perception is the manner by which
same as various sorts. consumers comprehend their general
Religious motivation seems to be the most surroundings in light of data got through their
believable factor in delineating the impact of senses. As indicated by Connolly (2010),
religion on consumer behavior. Truth be told, buyers are unknowingly assessing their needs,
religious inspiration factors are building and qualities and desires, and after that, they utilize
estimating the impact of religion on human the appraisal to pick, organize and clarify
behavior (Muhamad & Mizerski, 2010). This stimulus. That way, consumers can settle on
can be brought up when a Muslim make a their purchasing decision more sorted out and
purchasing decision where they hold meet their fulfillment. Perception is
immovably to religion and they are fundamentally an organism, which depicts a
exceptionally worried about things that did not person's apparent picture, which they anticipate
have Halal certificate. This is because Islam from any item. For instance, consumers put
does not enable Muslims to purchase non-halal positive perception on an item to settle on their
products and in addition day-by-day purchasing decision. For them, the great items
necessities. Thusly, it can be presumed that in their eyes will be their decision.
religious motivation extraordinarily affects According to Erasmus, Donoghue, &
Muslims to settle on buying decisions. Dobbelstein (2014), purchase decisions are
Likewise with different religions. They have then impacted by different elements that add to
their own convictions where these components the view of consumer risk, especially the kind
will affect their buying behavior. of risks and how the risks are eventually
There are a couple of purposes for why an addressed and settled. Positive perception of
individual purchases anything. He/she may the item rely upon item qualities that are
have a couple of bolstered grounds based on essential to the consumers regarding item
which he/she chooses to go for a purchase shapes, colors, materials, and setups. For
decision. These reasons might be alluded as instance, operationalize real household
motives. As indicated by Khaniwale (2015), decisions are the part of the financial plan
motive means the inward main impetus that accessible for the buy, which extremely
arranges human/purchasers' activities towards confines their discussion of the intricacy to
tending to the necessities or achievement of the financial risk.
reasonable point. In every basic decision-
making process, some motives plays role, not Beliefs and Attitude
only one. Among them is the item itself. There
are numerous reasons why a person picks an Marketers are attracted to the belief that
item. A few people purchase goods because of individual formulate particular items and
their day-by-day needs. In the event that they services since they shape product images and
brands that influence purchase behavior

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
(Yakup & Jablonsk, 2012). If some beliefs are RESULTS AND DISCUSSION
wrong and inhibit purchases, marketers need to
launch a campaign to correct it. In addition, Overview of Data Gathered:
people have an attitude about religion, politics, 150 questionnaires were distributed to the
clothing, music, food, and others. It is always students in School of Business Innovation and
believed by behaviorist users that individual Technopreneurship, Universiti Malaysia Perlis
actions can be predicted by their attitude and 150 questionnaires were collected back,
(Cherian & Jacob, 2012). The behavior which representing 100% response rate.
predictor relies entirely on the attitudes of the
users found to be related to their personal Demographic Data:
knowledge and experience. There are a few The results shows that the number of male
endeavors to build the ability to anticipate and female respondents is 54 and 96
individual activities and different components respectively and resulted 36% of the
have additionally been proposed to include respondents are male, and 64% are female. The
factors that can be delegated dismantling or majority respondents are aged between 22 to 24
situational. Formation of attitude and action is years old (84%), followed by aged between 19
found to be a responsibility to the development to 21 years old (58%), and 25 to 27 years old
of value but its effect on behavior in real life (8%). For the year of the study, there are
circumstances. This identifies with the idea that respondents 75 (50%) for Year 2 and Year 3,
there is a need to change the attitude of which is researcher, has already divided the
consumers towards the product that overall questionnaire equally for Year 2 and Year 3.
impacts their decisions. most of students are conducted by Malay which
has shown high number of respondents is 78
Research Methodology (52%) and following with Chinese and Indian
respondents show of 60 (40%) and 12 (8%)
Motivation respectively. Meanwhile, there have shown 78
and needs (52%) respondents are Islam, 42 (28%) are
Christian, 18 (12%) are Buddhist and the rest
12 (8%) respondents are Hindu.
Perception Purchasing
decision

Dependent Variable
Beliefs and
attitude

Independent Variables

Figure 1: Theoretical Framework

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
Reliability Analysis:

Table 1: Results of Reliability Test

Variables Number of Items Items Cronbach’s
Items Dropped Recorded Alpha
Motivation and Needs 5 - - 0.701
Perception 5 - - 0.656
Beliefs and Attitude 5 - - 0.642
Purchasing Decision 5 - - 0.723

Reliability analysis of each variable was coefficient alpha values for all factors are
validated using the Cronbach’s Alpha scale. ranged from 0.642 to 0.723 and it is indicated
The Cronbach’s Alpha is determined in Table as a good inter-item consistency for each factor.
1 together with each dependent variable,
Purchasing Decision and independent variables Descriptive Analysis among All Variables:
item namely Motivation and needs, Perception,
and Beliefs and attitude. The Cronbach’s

Table 2: Descriptive Analysis

Variables Mean Standard Deviation
Motivation and Needs 3.7800 0.60501
Perception 3.8560 0.55520
Beliefs and Attitude 3.9107 0.53372
Purchasing Decision 3.9907 0.52703

Table 2 shows the summary of all descriptive and needs (3.7800) and last is purchasing
statistics that are means and standard deviation decision (3.9907).
for all the variables that is tested in this study.
It is clearly presented that the mean for all
variables are in range from 3.7800 to 3.9107.
Among all the variables, the highest mean is
beliefs and attitude (3.9107) and the next is
perception (3.8560), followed by motivation Correlation Matrix:

Table 3: Correlation Matrix

Motivation Perception Beliefs and Purchasing
and Needs Attitude Decision
Motivation and 1.000
Needs
Perception .739 1.000
Beliefs and Attitude .556 .703 1.000
Purchasing Decision .392 .338 .572 1.000

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
Table 3 shows that the variables correlation
between one another was in range from 0.338,
the lowest score to the highest score, 0.739. The
correlation coefficient is beliefs and attitude,
0.572 which mean it has high correlation
among other variables with purchasing
decision. Regression Results:

Table 4: Regression Result:

Variables Beta t-ratio Sig.t
Motivation and Needs .261 2.657 .009
Perception -.306 -2.668 .008
Beliefs and Attitude .641 6.900 .000
R Square = .365
Durbin-Watson = 1.801
F = 28.033
Sig. F = .000
Condition Index = 29.631

Based on the regression analysis, the findings acceptance range of 1.5 and 2.5. It means that
showed that all the variables has significant there is no auto correlation problem in the data.
effect on the purchasing decision. The results Condition Index fell within the accepted range
of the regression analysis shows that (Condition Index = 29.631). F-value is found to
determinant factors affecting purchasing be significant at (Sig. F = 0.000). This
decision, motivation and needs was found to concludes that the regression model used in this
have significant effect (sig.t = .009). This study is adequate or in other words, the model
means that students purchasing decision were is fit.
affected due to the motivation and needs.
Perception play a role in influencing students Conclusion:
purchasing decision with significance level of
.008 and have negative beta of (-.306) on This study can be concluded that all
students purchasing decision. This indicates variables which are motivation and needs,
that students purchasing decisions were perception, and beliefs and attitude have
affected if the perception did not satisfy them. significant relationship towards students
Next, the regression analysis indicates that purchasing decision. This study shows the
Beliefs and Attitude have significant effect better understanding on students purchasing
(sig.t = .000). decision.
Motivation and needs, perception, and The findings reveal that students make
beliefs and attitude can only be explained purchasing decision for three reasons which
36.5% (R Square = .365) variation of students lead them towards the purchase decision which
purchasing decisions. The Durbin-Watson are motivation and needs, perception, and
statistic shows that the series correlation of beliefs and attitude.
residuals is 1.801, the value falls within the

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245
Limitations of the study: selected household purchase decisions.
Journal of Retailing and Consumer Services,
The limitation faced during conducted this 21(3), 293–305.
study is in term of to access with latest article. https://doi.org/10.1016/j.jretconser.2014.02.00
This is because most of latest article is not an 8
open access article, which is become a main
limitation in conducting any research Khaniwale, M. (2015). Consumer Buying
especially when this research is a self finance Behavior. International Journal of Innovation
research. and Scientific Research, 14(2), 278–286.

Recommendations for Future Research: Lee, S. (2010). Analysis of Relationships

E-commerce on Consumer Decision Making
Due to those limitation, the study suggest Motivation for Buying Goods Online.
some improvement for future research. Based
on the observation that is made by researcher, Muhamad, N., & Mizerski, D. (2010).
there is some recommendation suggested. First, The constructs mediating religions’ influence
the study suggest future research should add on buyers and consumers. Journal of Islamic
more variables in order to study purchasing Marketing, 1(2), 124–135.
decision. This is because, it can give https://doi.org/10.1108/17590831011055860
opportunity to show the best variables when the
variables used to conduct this research is many. Sukri, S., Meterang, N., & Waemustafa,
Moreover, the researcher can enlarge the W. (2016). Green Marketing and Purchasing
sample size and do the surveys other than Decisions among Teenagers. Australian
students to get know better the factors that Journal of Basic and Applied Sciences,
influence purchasing decision. (DECEMBER 2015).

Suroto, K. S., Fanani, Z., & Nugroho, B.

REFERENCES A. (2013). Factors influencing consumer ’ s
purchase decision of formula milk in Malang
Cherian, J., & Jacob, J. (2012). Green City. IOSR Journal of Business and
marketing: A study of consumers’ attitude Management, 9(3), 95–99.
towards environment friendly products. Asian
Social Science, 8(12), 117–126. Yakup, D., & Jablonsk, S. (2012).
https://doi.org/10.5539/ass.v8n12p117 Integrated Approach to Factors Affecting
Consumers Purchase Behavior in Poland and
Connolly, J. (2010). Retrieved January an Empirical Study. Global Journal of
22, 2010, from Management and Business Research, 12(15).
http://www.jimsmarketingblog.com

Erasmus, A. C., Donoghue, S., &

Dobbelstein, T. (2014). Consumer Services
Consumers’ perception of the complexity of

Electroniccopy
Electronic copyavailable
available at:
at: https://ssrn.com/abstract=3237245
https://ssrn.com/abstract=3237245