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An Analysis of Purchase Behavior of Generation Y in Kenya

Raymond Musyoka

,

Rahab Mugure Ng’ang’a

,

Hannah Wanjiku Wambugu

Raymond Musyoka 1
Rahab Mugure Ng’ang’a 2
Hannah Wanjiku Wambugu 3

  1. School of Business Administration, University of Nairobi, Kenya 1

  2. East Africa Portland Cement Co Nairobi, Kenya 2

  3. School of Business Studies, Presbyterian University of Eastern Africa, Kenya 3

Pages: 169-183

DOI: 10.18488/journal.62/2015.2.7/62.7.169.183

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Abstract:

Due to the unique buying behavior of Generation Y, it has become a target of research in developed and emerging markets. This is because, Generation Y comprises of a large demographic segment of consumers with high spending power. Despite this, the buying behavior of Generation Y is not well understood in Kenya. The buying behaviors of Generation Y in developed and emerging markets cannot be applied in developing countries like Kenya, given that factors considered important by Kenya’s Generation Y when making purchase decisions might be different from those in emerging and developed markets. The purpose of this study was to analyze the factors considered important when generation Y in Kenya is making a purchase decision. This knowledge is important because it could influence the marketing strategies of manufacturing firms in Kenyan market.  A random sample 1000 generation Y individuals was used, and their feelings about importance of each factor was rated using a Likert scale. Interviews were conducted using a structured questionnaire, and data was analyzed using descriptive statistics. Results indicated that generation Y in Kenya considers quality, price and durability of the product, efficiency and performance of brand, discounts offered and the company when selecting products/brands. The results further indicated that Generation Y got information when making purchase decision from testing and using the product (experience), friends and internet. It was also evident that respondents will recommend the same brand/product to another person and they make a repeat purchase of the same brand when satisfied after using a product. When dissatisfied with a product/service purchased, most of Generation Y consumers will switch to another brand and grumble to friends and relatives. Generation Y in Kenya considers investing in a business, buying a mobile phone and buying a laptop when they have extra cash as very important.
Contribution/ Originality
This study is one of the few studies which have investigated generation Y purchase behavior. For the first time, factors important to Generation Y purchase behavior in Kenya have been brought out. A part from the mean, standard deviation was computed to show the difference of importance of factors.

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Reference:

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( 291 ) Profitability of Commercial Bank on Interest Rate Deregulation
( 292 ) Gamification on Sales Force Performance in Nigeria Bottling Company
( 293 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 294 ) Factors that Influence Profitability of General Insurance Issuers in Indonesia
( 295 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 297 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 298 ) Impact of Asymmetric Government Spending on Real Balances Demand
( 299 ) Factors Influencing Human Capital in Ready Made Garments Industry in Bangladesh
( 300 ) Investigating the Impact of Business Alignment on Job Gratification in an Organization: The Case of a University in Egypt
( 301 ) External Debt and Nigeria's Sovereignty
( 302 ) The Colonialists & Indigenous Exchange Currency: Tracing the Genesis of Socioeconomic Woes in Postcolonial Nigeria
( 303 ) Migration as a Livelihood Strategy: The Case of Internal Migration in Ghana
( 305 ) An Empirical Evaluation of Cashless Systems Implementation in Ghana
( 306 ) Correlation between Financial Difficulties and Financing Strategies among Market Stallholders in Batangas City
( 307 ) Africa's Human Capital Development: Is Public Finance Management an Effective Strategy?
( 310 ) Regime Changes in the Volatility of Stock Markets
( 312 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 314 ) Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia
( 315 ) Study on the Effect of Foreign Investment on Anhuis Industrial Structure Optimization
( 317 ) Activity Cost Management and its Effect on Enterprise Productivity
( 318 ) Exploring the Asymmetric Linkage between Commodity Prices and Fiscal Performance in Nigeria
( 319 ) Assessing the Perceived Value of Customers for being Satisfied towards the Sustainability of Hypermarket in Malaysia
( 320 ) Effects of Socio-Cultural Diversity on the Performance of Private Health Care Organizations in Kogi State
( 321 ) Organizational Memory and Employee Performance in Federal Parastatals in Enugu State of Nigeria
( 323 ) The Effect of Corporate Social Responsibility Disclosure on Corporate Financial Performance
( 324 ) Family Leadership and Small to Medium Sized Enterprises Research and Development Investments
( 326 ) Rethinking Port Role as Transport Corridor under Symbiosis Theory-Case Study of China-Europe Trade Transportation
( 327 ) Can Small-Cap Active Funds Substantially Outperform the Market Over Time?
( 328 ) Analyzing the Financial Soundness of Kuwaiti Banks Using CAMELS Framework
( 329 ) Growing and Building: Collaboration of Urban Poverty Reduction Strategy
( 330 ) Issues of Unemployment in Nigeria: Effect of Real Exchange Rate and Inflation Interaction
( 331 ) Fiscal Reaction Functions and Public Debt Sustainability in Nigeria: An Error Correction Mechanism Approach
( 333 ) Exchange Rate Volatility, Foreign Exchange Market Intervention and Asymmetric Preferences
( 334 ) Consumers’ Behavioural Intention to Adopt Mobile Banking in Rural Sub-Saharan Africa Using an Extension of Technology Acceptance Model: Lessons from Zimbabwe
( 335 ) Value for Money (VFM) Audit and Public Sector Performance in Afikpo North Local Government Area of Ebonyi State, Nigeria
( 337 ) Seasonal Assessment of Relative Humidity, Ambient Air Temperature and CO2 Concentration Level in School Buildings of Kigali-Rwanda
( 340 ) What are the Contextual Influences of Bank Criminality in Osun East Senatorial District?
( 341 ) The Effectiveness of the Production of Healthy Rice in Comparison with other Rice Varieties in the Upper Northern Region of Thailand
( 343 ) Perceived Poverty and Alleviation Efforts of Kogi State Community and Social Development Agencies in Kogi State: An Empirical Investigation
( 344 ) Analysing the Financial Strength of Nigeria: An Approach to Estimate the Index of Financial Safety
( 345 ) The Role of Social Security Program for Enhancing Seniors Longevity
( 346 ) Externality Effects of Sachet and Plastic Bottled Water Consumption on the Environment: Evidence from Benin City and Okada in Nigeria
( 347 ) Re-Engineering Nigerian Economy through Human Capital Development: A Case of Manufacturing Firms In Southern Part of Nigeria
( 349 ) An Empirical Investigation of Real Exchange Rate Responses to Foreign Currency Inflows: Revisiting the Dutch Disease Phenomenon in South Asia
( 350 ) Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa
( 351 ) Management of The CFA Franc: What are the Fundamentals of the Real Exchange Rate in West African Economic and Monetary Union (WAEMU)?
( 352 ) Evaluating the Model of Demand for Money in Nigeria