Measuring consumption behaviour of shopping products among young Malaysian consumers : a theory of planned behaviour approach using structural equation modeling

Abstract

Since the evolution of human being from caves to the modern era of faster innovation, the consumption remains constant, but the trend and predictors of consumption have been noticed as a drastic and ever changing phenomena. Due to this volatile and ever evolving demand for consuming any product, it is of dire concern for companies to predict the factors influencing echo boomers’ behaviour ahead of its occurrence. Today, it has been challenging for business entities to explore about fickle behaviour of young consumers. Those who fail to go along with this challenge often collapse and eliminate from the screen of cut throat competition. Taking into account technological and communication breakthrough, the coin of globalization has been replaced with the newly emerged concept of Glocalization. It refers to a concept describing individual, product or service that reflects not only global standard but also local one. In this regard, multinational companies strive to monitor local demands in alien markets for their potential consumers. Malaysia is one of those developed countries, whose economy is bombarded with foreign outlets. However, not to forget that majority of Malaysian population is comprised of young generation with high tendency of consumption. Although research on culture and sub cultural norms have been conducted thoroughly to investigate relation to consumer behaviour, yet factors to modify this behaviour has received only slight attention in the marketing literature. However, this study focuses on variety of variables who predict the behaviour of young consumers of Malaysia. Theory of Planned Behaviour (TPB) is thought as one of the best theories to predict any behaviour. Due to versatile implication of Theory of Planned Behaviour, it has been chosen as underpinning theory for this research. Based on the theory, the three independent variables namely Money Attitudes, Socialization and Perceived Behavioural Control (PBC) have been rigorously studied and carefully gone through the literature, which has given variety of perspectives of these variables in different parts of the world. The mentioned variables have been explored while considering Intentions as a mediating variable and finally, the direct and indirect effect of these IVs on Consumption Behaviour. Data has been collected from Malaysian Young Consumers from different states and coded in SPSS for further analysis. Initially factor analysis has been conducted for items from all the variables, as items were adopted/adapted from different cultures. Once factor analysis done, reliability has been checked. Finally, Structural Equation Modeling has been used to conclude the best-fit model. The best-fit model shows that Money Attitudes and Socialization affects Consumption Behaviour after double mediation of Perceived Behavioural Control (PBC) and Intentions. In addition to this, it is clearly indicated that there is no difference of Consumption Behaviour between male and female. Working Young Malaysians and Malaysian Young Consumers who are students have shown the same Consumption Behaviour. However, Malay, Chinese and Indians have shown distinct Consumption Behaviour. The mentioned results lead towards the finding that Money Attitudes and Socialization plays a significant role in shaping up the Consumption Behaviour of Malaysian Young Consumers. The findings of this study are food for thought for academicians who can see that how variety of variables play strong role in giving dimension to the Consumption Behaviour of Malaysian Young Consumers. Additionally, marketers and industrialists can also get full benefit from the research by strategizing their advertising campaigns, marketing of their products and in the design and presentation of their goods and services.