Proceedings of 9th Asia-Pacific Business Research Conference

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Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Consumer Behavior to Buying Process of Orchids in Upper
North Provinces
Ayooth Yooyen
Research topic is Consumer Behavior to Buying Process of Orchids in Upper North
Provinces. The objectives of this research were to study the factors of marketing that
affecting with the selections for buying orchids and to investigate the personality of
consumer behavior in the Upper North. The data of this subject was collected
randomly by sampling 500 people buying the orchids. The results of the information
of marketing factors that affecting with consumers’ behavior were as follows: most
people gave the importance to Marketing Mix Factors (4Ps); most informant chose
high proficiency in The product factor, The price factor, The place factor and The
promotion factor: the product factor; the consumers chose popular producers and
species of orchids. There were modern and several orchids in shop which these were
guarantee quality. The price factor; the price was suitable with quality of products.
There were many prices of orchid and it included showing price tags clearly for
consumers’ decision. The place factor; the consumer would choose the believable
shops which showed the price tags. The promotion factor; sellers should have
politeness with the consumer. They could suggest knowledge and answer questions
about orchids well. There were beautiful packages (the colorful pot) for choosing. The
information of consumers’ behavior in buying the orchids in the upper North found
that most of samples grew sympodial orchid type the most- Cattleya labiata Lindl.
They usually bought orchids from shops which were near a market and bought them
mostly from orchids’ market. Hence, there was no regular shop for making decision.
They bought orchids from 1-2 shops per one time. Their purposes were to find new
colorful and strange orchids. They bought the orchids in uncertain time and date.
Most of them bought orchids more than 3 months per one time. Their budget in
buying per one time was 100-500 Baht from sellers by cash. They bought 1-3 trees
per one time. Most of samples were appreciated after buying orchids in moderate
proficiency. The recommendations from consumers for buying the orchids in the
upper North were as follows: they should set orchids festival; prepare the attractive
place; several of flowering-plants and namental plants. The consumers should buy
orchids from small shop because of its cheapness comparing to markets. The owners
were impolite with consumers when they asked for details. Most of consumers bought
orchids from non-Thai citizen that they did not know Thai language. Sellers should
suggest and educate the orchid knowledge to consumers. Uncertainty of time: close
and open.
1. Introduction
Thailand has many species of orchid proving that Thailand is suitable for growing
orchid. In addition, orchid species found in Thailand has its own unity which is
different from those from Latin America. Thailand has more than 1,000 orchid
species; found on the tree, mountain, and earth. In the past, countrymen planted
orchids by copying the nature; planting those orchids on trees. Planting orchids has
become commercialized by a western who was doing business in Thailand. He
started by building orchid house and brought in wild orchids from Latin America- as
the major source of orchid in the world- to the house. The orchid planting by building
orchid house has been widespread to elderly and wealthy people in the community.
The popular species were those from abroad; nevertheless, for Thai species, it is
popular only those are rare which has made them very expensive.
____________________________________________________________
Ayooth Yooyen (Ph.D), Faculty of Business Administration, Maejo University,
Email: ayooth@hotmail.com
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Nowadays, Thailand has reached the potential of growing orchid to the world
market as there has been more than 40 years of experiences, suitable geography,
efficient technology in planting, knowledge in developing new species with lower cost
when compared to those form other countries. Free trade policy as the result of
ASEAN has made orchid one of the key exporting products of Thailand. Thailand
has started to export orchid in 1965 and the number has been increased annually
until now. Thailand is the 3rd biggest exporters following Taiwan and Netherland. In
2014, the volume exported orchids was 24.6 million ton at 2,220 million baht (USD
63.42 million). The world flowering and ornamental plants is worth more than
500,000 million baht per year (USD 14,285 million) and the demand seems to
increase every year; implying that there is the big opportunity for orchid producers in
Thailand to export orchids to the world market.
However, in this study, the researcher is interested in consumption behavior in the
Upper Northern Part of Thailand; to what degree they are participating in buying orchids,
assuming Thailand as the world exporters; therefore, domestic consumption should be
ample. Moreover, the lower price as of the major producers in the world, and requiring small
spaces in planting, its beauty should have made it popular in the area. Therefore, the
purposes of the study are
1.to explore marketing factors toward orchids consumption
from the Upper Northern Part of Thailand.
2. to explore personal characteristics on orchid consumption in the Upper Northern
Part of Thailand
Scope of the study:
The population and area in this study are orchids buyers from the Upper
Northern Part of Thailand; i.e., Chiang Mai, Lumphun, Lampang, Payao and Chiang Rai.
The study would focus on problems and obstacles of orchids buyers in those provinces
which has been conducted during October 1, 2014- September 30th 2015.
Operational Definition:
Buying behavior refers to buying decision making and evaluating such decisions to
respond to wants and satisfaction of consumers per 6W1H concept.
Consumers refer to orchid buyers from the Upper Northern Part of Thailand during
October 1st, 2014-september 30th, 2015.
II.Literautre Review
The literature reviews comprise consumers’ behavior concept and marketing mix
concept. Then the theoretical framework would be introduced. There are many scholars
implying that consumers’ behavior definition should include the buying decision making
process (Sereerutt, 2011, p.114; Jaturongkakul, 2010, p.75), behavior in acquiring goods or
services (Sereerutt, 2011, p.114; Saikanit,2011, p.28; Bangkok University, 2009). Some
scholars mention that consumers’ behavior differences were based on personal
characteristics due to gender, age, profession, income level and so on (Bangkok University,
2009). Personal factors as in age, family life cycle, occupation, personal income, life styles,
psychological factors, motivation, learning, and belief and attitude have long been the major
factors in differentiating market or market segmentation for a long time.
Therefore, consumers ‘behavior refers to consumers’ behavior relating to buying and
using products or services via exchanging process. Such exchange has been conducted
through decision making process both before and after the transaction. Thus, consumers
refer to “one who gains the rights to own and use goods and services offered by the sellers.”
Sereerutt (2009) explains consumer behavior analysis as researching or exploring on
buyer’s behavior to identify buyers’ wants and their behaviors which benefits marketing
department in setting up strategic policy to satisfy consumer’s need/want. Those question
tools to analyze consumers’ behavior are 6Ws and 1H as shown in Table 1
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Table 1 6Ws and 1H Questions on Consumers’ behavior
6W2 and 1H
7 Os
Questions
1. Who is in the target
1. Target’s characteristics :occupants
Market?
2. What does the consumer 2. What buyers want (object) or product features
buy?
(product)
2. Why does the consumer
buy?
4.Who participates in the
3.Objectives in buying the products
buying?
5. When does the customer 4.Roles of influencer in buying decision comprises;
buy?
Organizations)
6. Where does the
consumer buy?
5. Buying opportunities
6. Channel of buying
7.How does consumer buy?
7. Operations or buying Process comprises: problems
awareness, data collection, choices
evaluation, buying decision making, feeling
after buying
(operations or buying process)
Source: Siriwan Sereerutt (2009 10)
Sereerutt has summarized that consumers’ behaviors refer to the studying of
individual’s buying decision process which involves using resources; i.e., money, time,
personnel and etc. Marketer must know who are the customers, why they want the
products/services, how they are making the purchase, where they can find the
products/services/ and how often they buy the products/services?
Schiffman and Knauk (2007, 7) mentions that consumers’ behavior refers to
the behavior of consumers in order to search, buy, use, evaluate and pay for
products and services that aims to respond to their needs.
Factors affecting consumers’ behavior are as follows:
1.Cultural factor determines needs and human behavior. Marketer is
interested in value in culture which refers to thoughts of each individual in the
society; in addition, they must be aware of the changing culture and utilize this
change to set up efficient marketing program . Culture can be divided into pure
culture, sub-group culture or tradition and social classes
2.Social factor involves daily activities which influences buying behavior
3.Reference group affects individual in their behavior, attitude and concept
toward life. Reference group can be family which is the highest important toward
attitude, value, and thought. This affects role and status that one has to play more
roles in a society.
4.Personal factor affects consumer behavior which depends on age, life cycle,
profession, progression in career, economic status, education, life pattern,
personality and own belief.
5.Psychological factors comprise internal and external psychological factor.
Internal factors are motivation, learning, attitude, perception and personality.
External factors are marketing factors, economic factors such as economics
condition, technology, political condition and so on.
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Philip Kotler (2003) explain consumers’ behavior by S-R theory (stimulus-response
theory) in the form of consumption model. This model explores motivation enticing buying
behavior. Marketer must create external factors to stimulates consumers’ wants (buyer’s
black box) which result in buyer’s response as follows:
1.Stimulus can be external or internal. This stimulus is the key factor in buying
decision; which marketer must give precedence to by providing external stimulus to entice
buyers to buy the product or service. It can be in the form of psychological factors (emotion)
which comprises of the following.
1.1 Market stimulus refers to the controlled stimulus buy marketers used in
accompanied with marketing mix
1.2 Product stimulus includes product design, product packaging.
1.3 Pricing stimulus involves setting the price in accordance with its quality.
1.4 Distribution stimulus includes providing products/Services throughout.
1.5 Promotional stimulus can be in the form of regular advertisement,
providing discount and salesperson training.
1.6 Other stimulus refers to other stimulus that can not be controlled which
comprises: economic stimulus, technology stimulus, laws and political stimulus, cultural
stimulus
2.Buyer’s black box refers to buyers’ thought, feeling, attitude ; this is invisible to
marketers; therefore, the search for that black box is vital. Such black box can be influenced
by personal characteristics and buying decision process.
3.Buyer’s response can be product/service selection process, preference to brand,
age, gender, salesperson selection, time selection.
Theoretical Framework
Marketing Mix Concept
Suntiwong (2010, 23-27) defines 4P’s marketing mix as the mixture of pricing,
promotion, product and distribution channel in order to ensure the selling of the product or
services.
1 .Product has been designed to match with market needs which includes the shape,
the size and services related to the product. The most important part of product is its brand
and packaging.
2. Place; to put metaphorically if good products are not delivered to the right placewhere the customers are- the production of such products can be futile. Thus, when
considering production process, one must consider time, place and customers of such
products. Product mobility has done via market distribution which can be by institution,
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
middle men, until it reaches end users. The mobility can be one-step process or complex;
which one to use depends on marketing purpose of managers.
3.Promotion includes notifying, informing, selling the idea to customers. It can be
academic content to communicate with customers on what is selling where at what price.
Promotion can be personal promotion, personal selling- direct face to face relationship, and
mass selling.
4.Price must be set reasonably and correctly as it is the heart of 4P’s marketing mix.
Setting price involves market type, reaction of customers when offered markups or discounts
and term of sales.
III.Research Methodology
Data collection was done with samples residing in the Upper Northern Part of
Thailand; i.e., Chiang Mai, Lumphun, Lampang, Payao, and Chiang Rai. The
population was orchid buyers. The number of samples were determined without
acknowledging the exact number of population by using the following formula
(Wanichbuncha, 2011, p. 74):
n Z21-α/2 (1-pq)
e2
n = sample size
e = maximum number of errors
p = percentage expected rate 50%
q = (1-p)
Z21-α/2 = Z therefore at 95% confidence level z is equal to 1.96
therefore n = (1.96)2 – (๐ .5) (๐ .5)
(๐ .๐ 5)2
= 384.16 or 385
Therefore, the number of samples was 500 or 100 from each province.
The research Instrument
After creating data collection instrument from literature, the questionnaire was
created and divided into 4 parts: 1.personal information 2.Marketing factors affecting orchid
buying behavior in the Upper Northern Part of Thailand 3.Orchid buying behavior and
4.Recommendations from respondents.
The instrument was checked for its validity by distributing to research committee in
checking the completeness and suitability of content and has made proper adjustments.
Reliability was conducted to 20 samples to ensure its common content and used Cronbach
correlation as the following formula:
=
=
=
Confidence Coefficient
number of problems
=
variance score from each problem
=
variance score for the whole questionnaires
As Wanichbuncha suggested, alpha coefficient more than 0.70 was selected;
that is, the instrument is reliable.
Data collection was done by distributing questionnaires to samples from five
provinces (100 each) during October 1st-2014- August 31st 2015. Data Analysis
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
was 1)descriptive analysis to describe the respondents characteristics employing
frequency and percentage 2) weighted mean score (WMS) to explore orchid buying
behavior; this score was calculated for weight mean score by scoring system; 5the very most, 4 the most, 3 in different, 2 least and 1 the very least.
Score ranking can be divided into 5 levels as follows:
Level 5 has the average score between 4.21-5.00
Level 4 has the average score between 3.41-4.20
Level 3 has the average score between 2.61-3.40
Level 2 has the average score between 1.81-2.60
Level 1 has the average score between 1.00-1.80 respectively.
IV. Result of the study
The results of this study comprised 4 parts as follows: 1) frequency and percentage
of personal information 2) marketing factors affecting buying behavior 3) orchid buying
behavior and 4) recommendations on orchid buying
Part 1 Frequency and Percentage of personal information
Table 2 Frequency and Percentage of Respondents by Gender
Gender
Amount
Percentage
Male
255
51.0
Female
245
49.0
Total
500
100
Table 2 shows that the majority of respondents are male (51%) and there are 49% of
female or 245 female respondents.
Table 3 Frequency and Percentage of Respondents by Age
Age
Amount
Percentage
less than 25
62
12.4
25 - 34 Years old
141
28.2
104
20.8
45 - 54 Years old
112
22.4
55 – 64 Years old
60
12.0
More than 65 Years old
21
4.2
Total
500
100
35 - 44 Years old
Table 3 shows that the majority of respondents are 25-34 years old group (28.2%),
the second biggest is 45-54 years old or 22.4%, the third is 35-44 years old (20.8%) and the
least is more than 65 years old (4.2%).
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Table 4 Frequency and Percentage of Respondents by Education
Educational Degree
Amount
Percentage
Less Than High School
55
11.0
High School
63
12.6
Diplomat (2years in university)
66
13.2
Bachelor
268
53.3
Master and Higher
48
9.6
Total
500
100
Table 4 shows that the majority of respondents hold bachelor degree in the number
of 268 (53.3%), diploma 13.2%, high school 12.6%, less than high school 11.0% and the
least is Master/higher (9.6%).
Part 2 Marketing Factors Affecting Orchid Buying Behavior
Table 5 Mean of Marketing Factors 4Ps affecting Orchid Buying Behavior
4Ps Marketing Factors
Mean
S.D.
Level of Importance
1.Product
3.52
very
.673
2. Place
3.51
.618
very
3. Price
3.43
.649
very
4. Promotion
3.30
.697
moderate
Total
3.44
.574
very
Table 5 shows that respondents gave precedence to product factors as the mean
score is highest (3.52), the second importance factor is place with the mean score of 3.51
and the least score is in promotion of 3.30 mean score.
Table 6 Mean of Product Factors Affecting Orchid Buying Behavior
Product
Mean
S.D.
Level
Importance
1. Orchid producer is well known
3.52
.850
very
2.There is new orchid species
3.52
.737
very
3.There are various organic orchids for sales
3.52
.739
very
4. The orchids products are guaranteed
3.52
.797
very
5. The orchid is popular
3.51
.758
very
Total
3.52
.673
very
of
Table 6 shows that respondents gave precedence to products in the level of “very”
importance (the total mean score of 3.52). When considering each dimension, it is found that
producers’ fame, modern species of orchid provided, and various type of orchids has the
same score of 3.52 and the least score is in orchid’s popularity of 3.51.
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Place
Table 7 Mean of Place Factors Affecting Orchid Buying Behavior
Mean
S.D.
Level
Importance
1. The location is convenient to go
3.67
.761
very
2.The shop is comfy and wide
3.66
.808
very
3.There is enough parking lot
3.63
.799
very
4.The shop is located in downtown
3.55
.790
very
5. The shop is well-known so it is trustworthy
3.53
.758
very
6.There is the visible sign of the shop name
3.50
.748
very
7.There are services to deliver orchids to3.34
buyers’ residence/shops
.852
moderate
8. There is store’s website containing orchid’s3.21
information for buyers
.902
moderate
Total
.618
very
3.51
of
Table 7 shows that respondents gave precedence to place factor in the level of ‘very’
importance (3.51). When considering each factors, it is found that location of the shop –
convenient to travel to- has the mean score of 3.67, the second highest was the shop is
comfy and wide (mean=3.66) and the least importance was there is shop website with the
mean score of 3.21.
Table 8 Mean of Price Factors Affecting Orchid Buying Behavior
Price
Mean
S.D.
Level of Importance
1. Price of orchid is suitable for its quality 3.53
.811
very
2.There is the variety of price to choose3.53
from
.753
very
3.There is the clear sign of price tag
3.51
.802
very
4. Price is negotiable
3.38
.891
moderate
5. Price is reasonable
3.22
.784
moderate
Total
3.43
.649
very
Table 8 shows that the total mean score regarding price factor is 3.43 (very
important), when considering each factors found that the highest score of 3.53 is in suitability
and variety of price. Clear price tag has the score of 3.51 and the least was price is
reasonable with the mean score of 3.22.
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Table 9 Mean of Promotion Factors Affecting Orchid Buying Behavior
Level
of
Mean
S.D.
Importance
1. Sales persons are nice
3.62
.867
very
Promotion
2. Sales persons are knowledgeable about3.60
the orchid
.935
very
3.Packaging is beautiful
3.54
.725
very
4.There is a give-away for the product3.15
(fertilizer, nurturing spray)
917
moderate
5. The advertisement is trustworthy
3.15
.866
moderate
6.Trifold about orchid shows the knowledge in3.07
taking care of orchid
.938
moderate
7. The product has the discount
2.99
.918
moderate
Total
3.30
.697
moderate
Table 9 shows that the total mean score of promotion factor is 3.30 or moderate
level. When considering each factor, it is found that the salesperson manner seems to be
the most important factor with the score of 3.62, the second highest was salespersons’
knowledge about orchid has the score of 3.60 and the least is having discount with the score
of 2.99.
Part 3 Orchid Buying Behavior
Table 10 Frequency and Percentage of Respondents Owning Orchid
Species
Sympodial:
Cattleyas,
Pophiopedilum
Amount
Oncidium,
Percentage
Dendrabrium,355
70.0
Monopodial: Vanda, Rhynchostylis
145
30.0
Total
500
100
Table 10 shows that the majority of respondents own sympodial in the number of 355
or 70% and the rest owns monopodial in the number of 145 or 30%.
Table 11 Frequency and Percentage of Respondents Owning Orchid by Species
Orchid Species
Cattleyas
Dendrabrium
Vanda
amount
284
147
102
Percentage
56.8
29.4
20.4
amount
216
353
397
Percentage
43.2
70.6
79.4
Rhynchostylis
99
19.8
401
80.2
Oncidium
42
8.4
458
91.6
Table 11 shows that respondents mostly own cattleyas (56.8%) the second biggest
was dendrabrium (29.4%), vanda (20.4%), rhynchostylis (19.8%) and oncidium (8.4%).
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Table 12 Frequency and Percentage of Respondents on Place to Purchase
Buying from
Amount
Percentage
Amount
Percentage
Shop near the market
Shop near the office
175
121
35.0
24.2
324
379
64.8
75.8
Shop new the residence
120
24.0
380
76.0
Street Stroll
121
24.2
379
75.8
Buy from colleagues
100
20.0
400
80.0
From orchid farm
5
1.0
495
99.0
Table 12 shows that the majority of respondents buy from shop near the market
(35%), the second was from the shop near the office (24.2%), near the residence (24.0%)
and the least from the orchid farm (1%).
Table 13 Frequency and Percentage of Respondents on Whether Buyers Have Regular
Shops
Shops
Amount
Percentage
Not regular shop
Regular
412
88
82.4
17.6
Total
500
100
Table 13 shows that the majority of respondents does not have regular orchid shop
(82.4$%), the rest was 17.6% (regular shop).
Number of shops
Table 14 Frequency and Percentage of Respondents
Amount
Percentage
1-2
3
324
107
64.8
21.4
4
33
6.6
More than 5
36
7.2
Total
500
100
Table 14 shows that majority of respondents buy from 1-2 shops (64.8%), the second
biggest was from 3 shops (21.4%), the third was from 5 shops (7.2%) and the least was from
4 shops (6.6%)
Table 15 Frequency and Percentage of Respondents by Purpose of Buying
Purpose of Buying
Amount
Percentag Amount
e
Percenta
ge
Unique and beautiful
284
56.8
216
43.2
Home decoration
Orchid’s Lover
284
145
56.8
30.0
216
355
43.2
30.0
Persuaded by friends
38
7.6
461
92.4
Others:
11
2.2
489
97.8
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Table 15 shows that the majority of respondents buy orchids because of its
uniqueness and beauty (56.8%), home decoration (56.8%), orchid’s lover (30%), friends’
recommendation (7.6%).
Day Period
Table 16 Frequency and Percentage of Respondent by Shopping Day
Amount
Percentage
Uncertain
Weekends
293
129
58.6
25.9
Pay Day
48
9.6
Holiday
16
3.2
Weekdays
14
2.8
Total
500
100
Table 16 shows that 58.6% of respondents buy orchid on any day of the week
(uncertain) 25.9% buy on weekends, 9.6% buy on pay day and 3.2 on holiday and only 2.8%
on weekdays.
Table 17 Frequency and Percentage of Respondents by Frequency of Orchid Buying
Amount (ค น )
Frequency
Percentage
Once a week
Once a month
33
75
6.6
15.0
3 times per month
100
20.0
More than 3 times per month
292
58.4
total
500
100
Table 17 shows that 58.4% of respondents buy orchids more than 3 times per month,
20.0% buy 3 times per month, 15% once a month and 6.6% once a week.
V. Discussion of Results
This study aims to explore factors affecting organic orchid buying decision in the
Upper Northern Part of Thailand and to explore personal information affecting buying
behavior. The population were buyers of organic orchid in the upper Northern provinces
which are Chiang Mai, Chiang Rai, Lumphun, Lampang, and Payao.
The majority of respondents were male between 25-34 years old with bachelor
degree and work in private company with average salary between 10,001-20,000 baht per
month.
Regarding factors affecting buying behavior, it is found that product factor, place, and
price are considered to be very important while promotion is moderately important.
Regarding product aspects, the producers’ fame, various species of orchid, guarantee after
the purchase and new species of orchid seem to be very important for buying decision.
Price is considered to be very important as respondents views the price as reasonable,
suitable for its quality, various choices of prices, and clear price tag.
Place or distribution channel is considered to be very important factor. It is very
important that, location is convenient to go to, there is enough room in the shop, there is
enough parking lot and the shop located in downtown. In addition, the shop is well-known
and there is the standing out shop sign.
Promotion factor is considered to be very important also. The salespersons’ manner,
salespersons’ knowledge about orchid, including nice flowerpot are the key factors affecting
buying decision.
Proceedings of 9th Asia-Pacific Business Research Conference
5 - 6 November 2015, Bayview Hotel, Singapore, ISBN: 978-1-922069-87-0
Discussion of the results
1.Regarding marketing factors, it is found that product dimension is the key factors
as producer’s fame, variety of species, new species of orchids and guarantee services. The
results seem to comply with the study of Poorwiboonkit (2009) studying on marketing mix
on buying behavior of fruit juice in Chiang Mai.
2.Regarding price dimension, it is considered to be very important as price of orchid
is reasonable, and there are different orchids with different prices to choose from, price tags
are clear to buyers. This complies with the study of poorwiboolkit (2009).
3.The result of place and distribution channel complies with the study of Yotawong
(2010) studying on consumption behavior of CMU student on snack and dessert and that of
Poorwiboonkit (2009).
4. The results on promotion factors seem to be in accordance with the work of
Yotawong (2010) as promotion seems to be moderately important affecting buying decision.
There is no give-away in orchid buying, few advertisements, no trifold on orchid planting.
Recommendation
Based on the study, here are recommendations to orchid entrepreneurs: Product:
producers must focus on quality of orchids including developing new species to match with
growing demand. Pricing must be done strategically; that is, price must be reasonable or
match up with its quality. Clear price tags must be presented to buyers and sellers must
compare prices with competitors’ from time to time. Regarding distribution channel, it is
found that shop location is important and the size of shop should be wide enough and
located near downtown. The shop should be developed by itself to be the center of
knowledge in growing organic orchid and it can become tourist’s place. Road signs must
clearly state direction to the shop/farm. Promotional factors are salespersons’ manner and
knowledge including nice flowerpot for the orchids. It is recommended that the shop/farm
create some sort of membership system so that certain privileges can be provided to regular
customers like during the New Year. This is the way to build bond between customers and
sellers and increasing the sales volume. Training on orchids; i.e., new species, planting
process or nurturing process, to salesperson must be provided from time to time to increase
demand for orchids; trifold may be provided to buyers.
Reference
Bangkok University, 2004, Factors Affecting Consumers’ Behavior, retrieved from
www.siaminfobiz.com/mambo/index.pho
Jaturongkakul, A, 2000, Consumer Behavior, Bangkok: Thammasat University.
Phillip Kotler . 1994. Statigic Management Journal. University of Washington,
Bothell,
Washington, U.S.A. John Wiley & Sons, Ltd.
Poorwiboonkit, K, 2009, Buying Behavior on Fruit Juice in Chiang Mai, Independent Study
Working Paper, Chiang Mai University.
Saikanit, R, 1994, Economics Principles, Bangkok: Yearbook
Sereerut, S, 1995, Consumer Behavior, Learning Resource Center (Long Atkraweesuntorn)
Songklanakarin University.
Suntiwong, T, Marketing Principles, Bangkok: Thaiwattanapanich.
Wanichbuncha, K, 2001, Application of SPSS for Windows in Data Analysis (6th edition),
Bangkok: CK & S Studio.
Yotawong, Y, 2006, Snack Consuming Behavior of Chaing Mai University Students,
Independent Study, Chiang Mai University.
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