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Factors Influencing the Customers Repurchase Decisions

Article · June 2016

DOI: 10.5251/ajsms.2016.[Link]

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 AMERICAN JOURNAL OF SOCIAL AND MANAGEMENT SCIENCES
ISSN Print: 2156-1540, ISSN Online: 2151-1559, doi:10.5251/ajsms.2016.[Link]
© 2016, ScienceHuβ, [Link]

Factors Influencing the Customers Repurchase Decisions

jia xin xu, Muhammad Ishfaq Ahmad and Rizwan Ali
1157196058@[Link]
School of Business Administration, Liaoning Technical University
m_ishfaq452@[Link]
School of Public Administration and Law, Liaoning Technical University
ali_m@[Link]
College of Science, Liaoning Technical University

ABSTRACT

This paper attempts to highlight the factors have potential influence on the customer repurchase
decision of cosmetic products in Pakistan. The study utilized the primary data of seventy five
respondents collected through the questionnaire by following the random sampling technique.
Authors employed the regression analysis and revealed that brand and product reliability does
have significant and positive influence on the customers repurchase decisions in Pakistan.
Authors also indentified that price of the product, Product durability and customers perceived
value does have insignificant positive influence on customers repurchase decisions.
Key Words: Brand, Product Reliability, Repurchase decision and product Durability.
INTRODUCTION products, it is necessary to examine number of
factors. Different scholars come with different factors
The current era of intensive competition,
influencing the repurchase decisions of the customer
understanding the consumer is a necessity for
like (Giovanis et al., 2013) argued that price is critical
marketers for their survival. Consumer usage and
factor in the repurchase decision of the customers.
buying of any product largely depend upon more than
Meanwhile J. J. Cronin (2000) empirically described
one factor like perception of the product, price, brand,
that perceived value is better variable to measure the
durability and reliability of the products. These days’
repurchase intention of the customers.
firms are putting their best efforts in marketing in
order to get customer attention and positive Problem Statement: Engel, Blackwell and Kollat
impression on customer’s mind (DICKENSON 1994). have developed in 1968 a model of consumer buying
This is why the identification determinants of decision process with the five steps of: Problem/need
repurchase is of critical importance to both recognition, information search, evaluation of
researchers and practitioners. By identifying and alternatives to meet this need, purchase decision and
responding that factors that shape customers post-purchase Decision.
repurchase Decision could be key to the success of
As companies are getting smart and smart day by
any kind of business.
day and learning from each other, they are also
Hellier et al.(2003) explained that in the existing responding these five stated steps. It is little complex
literature of the customer repurchase decision mostly for the companies to exactly find the factors that
studies are largely fragmented and few studies have influence the repurchase decisions of the customers
empirically tested a structure model on a verified due to more than one reason. Thanks to the
framework. No doubt post purchase evaluation plays technology, now a day’s customers have more
vital role in decision making process of all customers. information about the products, their prices and
Consumer evaluation of potential alternatives is all substitutes. Secondly as everyone in the market is
about selecting and evaluating each brand. trying to attract more and more customers and to
(Schiffman et al., 2008) explained Planning the wants to retain them.
selection is a list of products or brands that consumer
The purchase is only the visible part of a more
have in mind become familiar with remember and
complex decision process created by the consumer
accept. (Engle et al., 1978) document that consumer
for each buying decision he makes. In this article
feeling after purchase also show repurchase
authors made argument that besides
decision. In order to understand the consumer’s post
Engel, Blackwell and Kollat (1968) steps customers
purchase evaluation for repurchase intentions of
 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

perceived Value, Price, Brand Name, Reliability and that product price is the critical factor for the
Durability are more explanatory variables that purchase decision of the customer. Lee et al (2010)
influence the customers repurchase decision. observed how the consumer perception of the price
fairness influence their purchase decision and
Objective of the Study: The core objective of this
conclude that it has strong predictor for the consumer
study is to find the factors that shape the repurchase
repurchase decision.
decisions of the customers for the cosmetic products
in Pakistan. Authors are hypothesizing that the According to Khraim (2011, as cited in Aker, 1991),
perception of the product made by the effective the price has a significant impact on consumer
marketing, Price, Brand, durability and reliability do repurchase
have significant influence on the customer
(Shah et al., 2012) defines purchase intention is a
repurchase Decision in cosmetic products in
decision making process that examines the reason to
Pakistan.
buy a particular brand by consumer. Generally brand
The significance of this study can be realized from is all about name and symbol. It is very effective tool
the fact there are few studies available in the existing to create good and positive image in the customers
literature that explains the repurchase Decision of the mind. Brand has vital role in creating loyal customers
customer for the cosmetic products in the Pakistani and retaining companies’ market share. Loyal
context. This study is an effort to fulfill the existing customer not only does the repurchase of the
literature of the Decisional marketing in Pakistani products but also recommend the brand to others.
context especially in the cosmetic products. Secondly They are doing brand marketing with the good word
this study also helps managers and markets to let of mouth without any cost. (Erics, et al., 2012)
customer repurchase their products by keeping eyes explains that customer pay more price for particular
on the proposed factors. brand over the similar products. (Molla & Licker,
2001) explained brand loyalty resulted in repurchases
The importance of the study perceived value is
which ultimately enhance the company growth and
equally important for researchers and practitioners.
profitability.
The objective of customer perceive value research is
to explain, analyze and conclude empirically There is strong relationship exist between brand
measureable the value that enterprises create for name and repurchase intention of the customers
their customers and link these insights to further (Arslan & Altuna, 2010; chi et al., 2008; Tariq et al.,
marketing constructs. V. A. Zeithaml (1988) defined 2013). Zeeshan (2013) examined how brand image
Customer perceived value as “the customers overall influence the purchase decision for the men and
assessment of the utility of a product, based on concluded that it has significant and positive
perceptions of what is received and what is given”. J. influence on the purchase decisions of the men.
J. Cronin (2000) empirically stated that customer Results of Hernández and Küster (2012) also reveal
perceived value is the best predictor of the that attitude toward brand has positive and significant
repurchase decision of the customers because influence on the purchase intentions.
perception is overall assessment of the benefits
Suggested Variables
received from the product or service depends on gain
and loss assessment. He further explained the 1- Consumer Repurchase Decision (Dependent
benefits in the form of service quality and a series of Variable)
psychological benefits. W. B. Dodds (1991) explain
2- Perceived Value (Independent Variable)
these benefits in the form financial and non-financial
terms. Woodruff (1997) documents that customer 3- Price (Independent Variable)
perceived value plays vital role in customer
repurchase intention in future. 4- Brand (Independent
Variable)
Price is defined as the money that customers paid to
get the products or services or the benefits they 5- Durability (Independent Variable)
received (Kotler and Armstrong, 2010). Levy & Weitz, 6- Reliability (Independent Variable)
(2012) document that companies must retain the
loyal customers who are willing to pay even high Data and Methodology
prices for their favorite brand and do not buy the Authors target population for this study would be the
cheap products. Wickliffe & Pysarchik (2001) argued biggest city of the Punjab Lahore. Lahore is a big and

25
 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

capital city of the Punjab. By reading the existing easy and convenient sampling technique. Authors
literature authors develop the following hypotheses distributed 100 questionnaires among the cosmetic
customer in Lahore out of them 75 questionnaires get
H1- Customer Perceived value do have influence
back. We asked 21 questions altogether with the
the customer repurchase intentions
demographic questions to measure the studied
H2- Price of the product does matter for the variables.
repurchase decision of the customer
Authors used the SPSS for the analysis purpose and
H3- Brand name has role in the repurchase run the regression anlysis on the following equation
decision of the customers.
Customer repurchase Decision= a+ B1Perceived
H4- Durability of the product is factor that Value+ B2 Price + B3 Brand Name+ B4 Durability +
influence the customers repurchase decision. B5 Reliability + e
H5- Product Reliability affects the repurchase RESULTS AND DISCUSSION
decision of the customer.
First of all authors measure the descriptive statistics
Authors employ the primary data to analyze the to examine the sample distribution and descriptive
suggested variables. For the data purpose, Authors statistics of the studied variables
employed the random sampling techniques as it is
Table-1 Gender Wise Sample Profile

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 38 50.7 50.7 50.7

Female 37 49.3 49.3 100.0

Total 75 100.0 100.0

Figure-1 Gender wise Sample Profile

The above table-1 reveals gender wise profile of the 51 percent females participated in our study and 49
sample. From this table we examined that there were percent were males.

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

Table-2 Marital Status Wise Sample Profile

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 29 38.7 38.7 38.7

Married 46 61.3 61.3 100.0

Total 75 100.0 100.0

Fig.2 Marital Status Wise Sample Profile

The above stated is the tabular and graphical 62 percent of the total sample. This is not unusual
presentation of the marital status wise sample profile. because in big markets normally couples go for the
From this authors examined that married shopping.
respondents are dominated over the single with the

Table-3 Income Wise sample Profile

Cumulative
Frequency Percent Valid Percent Percent

Valid 21000-30000 16 21.3 21.3 21.3

31000-40000 21 28.0 28.0 49.3

41000-50000 20 26.7 26.7 76.0

51000- and Above 18 24.0 24.0 100.0

Total 75 100.0 100.0

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

Above table shows the descriptive statistics of the the respondents have income bracket in between
respondents with respect to the income level. From (31000-40000) that carries the 28 percent of the
the table and graphic, authors found that majority of whole sample.
Table-4 Age wise Sample Profile

Cumulative
Frequency Percent Valid Percent Percent
Valid 20-30 Years 23 30.7 30.7 30.7

31-40 Years 27 36.0 36.0 66.7

41-50 Years 14 18.7 18.7 85.3
51 and Above 11 14.7 14.7 100.0
Total 75 100.0 100.0

Figure-4 Age wise Sample Profile

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

Table- 4 provides the information of the sample respondents were married. Young respondents with
regarding the age wise. Authors found that majority of the age bracket of 21-30 years followed by 31
the respondents belong to the age bracket of 31-40 percent of the whole population.
years this is the reason why the majority of the

Table-5 Education Wise sample Profile

Cumulative
Frequency Percent Valid Percent Percent
Valid Intermediate and Below 9 12.0 12.0 12.0
Bachelor Degree 26 34.7 34.7 46.7
Master and Above 40 53.3 53.3 100.0
Total 75 100.0 100.0

Figure-5 Education Wise sample Profile

Table five reveals the information regarding the intermediate or have lees education. As it is very
education level of the sample. Authors observed that common that education plays vital role in all kinds of
majority of the respondents are we’ll educated and at the decision making so re buying decision has no
least have master degree. And the second highest exception.
percentage of the respondents has bachelor degree.
Reliability Analysis
Only 12 percent of the respondents have the
Table-6 Reliability Analysis
[Link] Construct Number of Items Cronbach Alpha
1 PERCEIVED VALUE 2 0.71
2 Price 3 0.93
3 Product Durability 3 0.75
4 Product Reliability 2 0.77
5 Brand 3 0.74
6 Customers Repurchase Decision 3 0.75

As reliability analysis is a good to check the reliability results. Starting from the perceived value we
of the variables questions. We did this analysis for measure the perceived value with the help of two
our proposed variables and found very satisfactory questions and Cronbach alpha is 0.71 that is greater

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

than the benchmark, that confirms that our questions questions. Product Reliability having alpha 0.77 and
are enough reliable to measure the Perceived Value. is measured with the help of two questions. Brand
Price is measured through three questions and alpha is also good that us 0.74 and to determine
carried maximum alpha that is 0.93 that validates our Brand we asked 3 questions. Customer Repurchase
questions. Product Durability has alpha 0.75 that is Decision carried 0.75 this is lying the acceptable
also good enough and could be relied on these range
Table 7. Correlation analysis

Customer Customer
Product Brand Repurchase Product Perceived
Price Durability Image Decision Reliability Value
Price Pearson 1 .015 .171 .010 .057 .103
Correlation
Sig. (2-tailed) .900 .143 .930 .627 .378
N 75 75 75 75 75 75
Product Pearson .015 1 .158 .027 .135 .064
Durability Correlation
Sig. (2-tailed) .900 .176 .819 .249 .588
N 75 75 75 75 75 75
*
Brand Image Pearson .171 -.158 1 .289 .123 .006
Correlation
Sig. (2-tailed) .143 .176 .012 .293 .959
N 75 75 75 75 75 75
* *
Customer Pearson .010 .027 .289 1 .289 .061
Repurchase Correlation
Decision Sig. (2-tailed) .930 .819 .012 .012 .602
N 75 75 75 75 75 75
*
Product Pearson .057 .135 .123 .289 1 .038
Reliability Correlation
Sig. (2-tailed) .627 .249 .293 .012 .748
N 75 75 75 75 75 75
Customer Pearson .103 .064 .006 .061 .038 1
perceived Correlation
Value Sig. (2-tailed) .378 .588 .959 .602 .748
N 75 75 75 75 75 75
*. Correlation is significant at the 0.05 level (2-tailed)
Table 7 describes the correlation among the studied correlation among all the suggested variables is
variables. From the correlation analysis authors positive but not significant except the brand image,
observed that all the variables are positively product reliability and customer repurchase decision.
correlated each other as it was expected and similar
Regression Analysis
with the line Arslan & Altuna, 2010; chi et al., 2008;
Tariq et al., 2013). Starting from the brand image and Authors run the regression analysis on the following
customer repurchase decision, authors observed that econometric model to check the relationship of the
the correlation among the brand image and suggested variables
repurchase decision is significantly positive as
Customer repurchase Decision= a+ B1Perceived
(0.289, 0.012). After that there is significant positive
Value+ B2 Price + B3 Brand Name+ B4 Durability +
correlation among the customer repurchase decision
B5 Reliability + e
and product reliability see the table-7. Overall

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

Table-8 Regression Analysis

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate
a
1 .452 .204 .146 1.62871

a. Predictors: (Constant), Customer Perceived Value, Brand , Product

Reliability, Price, Product Durability

This table shows the explaining power of the model which is good enough while the model R-square is 20
which is justified with the help of R and R-square. By percent.
having look at the R we can say with the confidence
that the explaining power of the model is 45 percent
b
Table 9 ANOVA Results of the regression

Model Sum of Squares df Mean Square F Sig.

a
1 Regression 46.884 5 9.377 3.535 .007
Residual 183.036 69 2.653
Total 229.920 74
a. Predictors: (Constant), Customer Perceived Value, Brand , Product Reliability, Price, Product Durability

b. Dependent Variable: Customer Repurchase Behavior

In table 9 ANOVA explains the overall significance of model is highly significant at (1%,5% and 10%) alpha
the model which could be observed with the level.
significance value that is (0.007). It means the overall
Table- 10 Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.268 2.698 1.211 .230
Price .041 .072 .062 .565 .574
Product Durability .073 .114 .071 .641 .524
Brand .366 .116 .354 3.163 .002
Product Reliability .337 .107 .348 3.160 .002
Customer Perceived Value .066 .110 .065 .605 .547
a. Dependent Variable: Customer Repurchase Behavior

The above posed table reveals the coefficient of the marketing literature that brand image has positive
individual variables suggested to check the influence influence on the loyalty of the customers that
on the customer repurchase decision. By examine ultimately comes from the repeated purchases.
the results, authors found that brand image has Similar as the brand image, regression results
highly significant and positive influence on the revealed that product reliability do have positive and
customer repurchase decision (0.336, 0.002) which is significant influence on the repurchase decision of
similar with Hernández and Küster (2012) and the customers evident as (0.34,0.00). Authors also
Zeeshan (2013). This could be explained with the examined that price do have positive influence on the
reason that loyal customers always want to buy their repurchase decision of the customers but not
brands and this is why it a great noise in the significantly as (0.041, 0.230). Similar product

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 Am. J. Soc. Mgmt. Sci., 2016, 7(1): 24-32

durability and customers perceived value matters for Hernández, A. and Küster, I. 2012, Brand impact on
the repurchase decision of the customers and purchasing intention. An approach in virtual social
contributes positively but not significantly. networks channels, Economics and Business Letters,
1(2):1-9
Conclusion
J. J. Cronin Jr., M. K. Brady and G. T. M. Hult, 2000.
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193-218.
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