Furthermore, I am grateful to all the instructors at CMMU who deepened my understanding and expanded my knowledge. I would like to express my gratitude to all the Lao respondents who helped complete the questionnaires and conducted this study. I am grateful to my friends and colleagues who have helped and encouraged me to work on this research.
LAO CONSUMER BEHAVIOR AND KEY FACTORS INFLUENCING PURCHASE DECISION TO BEER PRODUCTS OF BEERLAO. According to ASEAN Economic Community (AEC) and beer market growth in Laos, this study aims to understand Lao consumer behavior and purchase decisions towards a specific beer brand, namely Beerlao, which has gained a largest market share in Lao beer market. The research adapts the theories of demography and marketing mix to describe Lao consumer behavior and purchase decisions about Beer Lao beer products.
This research uses the quantitative instrument by administering 100 questionnaires to Lao people who have lived in Vientiane. Moreover, brand reputation is the marketing mix factor that influences Lao consumers' purchasing decision towards Beerlao.
INTRODUCTION
- Background
- Statement of Problem
- Study Objectives
- Scope of Study
- Expected Benefits
Therefore, it proves that the Lao beer market is growing every year and is an interesting market for investors to export their beer products to Laos. In the current beer market in Laos, there are only two large companies that produce and market beer products. Laos is one of the attractive beer markets in Southeast Asia due to population expansion, urbanization, increasing income levels, economic growth and relatively high per capita beer consumption.
Although the Lao beer market has only two producers, the consumption rate of Lao beer is higher than some countries in Asia. The important key to success in the Lao beer market is to understand Lao consumer behavior. Therefore, the author would like to study the Lao consumer behavior and purchase decision towards a well-known beer brand in order to find the significant factors that influence the majority of Lao beer drinkers to choose the famous local beer brand.
The scope of this research is to find key factors that influence Laos consumers' purchasing decision and consumer behavior towards the Beerlao brand. The author aims that the findings of this study will help investors and marketers understand Lao consumer behavior and entice them to purchase their beer products.
LITERATURE REVIEW
Background of Beerlao
Currently, the company's beer production capacity is 210 million liters per year and its market share is about 98% of the national beer market in Laos. From the highest market share in the Lao beer industry, it proves that Beerlao is the most famous beer product in Laos.
Definition and Model of Consumer Behavior
- External Influences
- Internal Influences
- Marketing Strategy
- Consumer Decision Process
Family consists of two or more people who are related by blood, marriage, or people who live together (Schiffman & Kanuk, 2007, p. 316). A group is characterized as a set of norms, values or beliefs shared by two or more people who have certain implicit or explicit relationships with each other such that their behavior is interdependent (Hawkins et al, 2004, p. 224). Motivation is the main driver of all human behavior and something that moves individuals (Sheth & Mittal, 2004, p. 161).
Perception is the process by which individuals take in information from the environment and then select, manipulate, and interpret that information. Therefore, strong drives, the use of motivational cues, and the provision of positive encouragement can increase demand for the product. An attitude is a learned tendency to behave toward a particular object in a consistently positive or negative way (Schiffman & Kanuk, 2007, p. 232).
Feelings or emotional reactions to a thing indicate the affective component of an attitude, while one's bias to respond in a certain character to an object or activity is the behavioral component of an attitude (Hawkins et al, 2004, p. 387 ). The marketing strategy is defined in terms of the marketing mix or 4Ps; it includes product features, price, communication, distribution and services to be offered to higher value customers.
Related Literature
Chavasiri (2008) did a research on Factors Affecting Consumer Demand for Beer in Hat Yai, Songkha province. He found that the majority of the sample group were males aged 18 - 25, who graduated at the bachelor's level and had a monthly income of about 5,000 to 10,000 Thai Baht. A research by Purapa (2013) studied a brand equity and satisfaction towards marketing mix which influenced an exploratory buying behavior tendency in Singha beer and studied the relationship between buying behavior in Singha beer and buying behavior tendency in it the future.
He conducted a survey in the Bangkok metropolis with a sample size of 400 consumers over the age of 20 who had ever bought and drank Singha beer. As a result, the majority of Singha beer consumers were women aged between 20 and 27, who had a bachelor's degree, were employed as a private company and had a monthly income of more than 30,000 Thai baht. However, consumers who had different gender, age, education, occupation and average income had the same buying behavior for Singha beer. The reason was that Singha beer was a well-known brand across all walks of life and had various distribution channels.
The reputation of the Singha brand mad consumers remember its brand; moreover, Singha beer brand was referred to Thai identity, which crazy consumers are proud and excellent. In addition to taste, price and brand, the beer company's image is also an important factor.
RESEARCH METHODOLOGY
- Model of Research Process
- Research Hypothesis
- Research Design
- Population and Sample Size
- Data Collection Method
- Questionnaire Design
- Data Analysis
For the production factor, the mean of "Beerlao beer tastes good" is 4.24, which is ranked higher, and its standard deviation is 0.73. The mean of "I just buy Beerlao the same as usual" is 4.06, which is ranked higher, and its standard deviation is 0.93. The mean value of "Beerlao beer is well-known and reputable" is 4.35, ranked higher, and its standard deviation is 0.77.
For the price factor, the mean of "Beerlao beer price is suitable for the quality" is 3.93, ranked higher, and its standard deviation is 0.79. Beerlao beer price is appropriate for the amount of beer” is 3.99 ranked higher and its standard deviation is 0.72. The aim is to add a greater variety of beer products to Beerlao, serving different target markets.
For sales promotion factor, the mean of “A price reduction can stimulate my demand to buy Beerlao beer” is 4.23, ranked as higher level, and the standard deviation is 0.81. The mean of "A banner ad can stimulate my demand to buy Beerlao beer" is 3.58, ranked as higher level, and the standard deviation is 0.94. The mean of "A TV commercial can stimulate my demand to buy Beerlao beer" is 3.47, ranked as fair level, and the standard deviation is 0.99.
The mean of "An online advertisement can stimulate my demand to buy Beerlao beer" is 3.36, ranked as fair, and its standard deviation is 0.94. The mean of "A print advertisement can stimulate my demand to buy Beerlao beer" is 3.33, ranked as fair level, and its standard deviation is 0.93. The average of "Sales representative can stimulate my request to buy Beerlao beer" is 3.70, ranked as.
This is one reason why a price reduction on Beerlao beer can stimulate the purchasing power of Lao consumers. Therefore, the brand reputation of Beerlao beer is the most important factor influencing the purchase decision of Lao consumers.
RESEARCH FINDINGS
The result of respondents’ demographic data
According to Table 4.1, it presents the results of the survey divided by respondents' gender, status, age, occupation, education and personal income. The smaller group of respondents' occupation is followed by employee in state enterprise (29%), business owner (12%), student (2%) and freelancer (1%). The largest group of respondents' education has a bachelor's degree (70%) followed by a master's degree or higher (19%), high school (10%) and less than high school (1%).
The result of respondents’ consuming behavior
From observation, some restaurants sell only two or three kinds of Beerlao beer; however, Beerlao Lager has remained on the menu at every restaurant. Moreover, most Lao consumers order Beerlao beer in a 640 ml bottle size, especially Beerlao Lager. The reason is that the price of Beerlao beer in bulk is cheaper than other brands.
This finding is consistent with a study by Chavasiri who researched the behavior of beer consumers in Hat Yai. The author notes that the majority of Lao consumers at restaurant always drink Beerlao beer with their friends, colleagues or family. This observation is consistent with the questionnaire result on the number of people to drink that the majority of respondents usually consume Beerlao with a group of people such as their friends or family.
Therefore, the highest number of people to drink is with about 3 to 5 people or more than that; it also reflects that the consumption per times is higher than 20,001 LAK because they drink with a large number of people. Table 4.3 shows a correlation between consumer behavior and three demographic factors, which are gender, age and income.
The result of marketing mix factors which influence buying
All these processes, the taste of Beerlao beer remains constant and meets Lao beer consumers. The mean of "The price of Beerlao beer is appropriate for the alcohol content" is 3.79, ranked as higher level, and its standard deviation is 0.78, while the mean of "The price of Beerlao beer is appropriate for the packaging" is 3.74, ranked as the highest level and its standard deviation is 0.93.
CONCLUSION AND LIMITATION
The analysis of consumers’ demographic data
The result of this study is that the majority of respondents are female, single and between the ages of 21 and 30 years old. However, the demographic factors that are correlative with the frequency of Beerlao consumption are that men consume Beerlao beer more often than women and beer consumers with a low income level LAK) tend to consume more Beerlao beer than other income levels.
The analysis of consumers’ behavior
The analysis of Marketing Mix factors
Limitation
Direction for future research
Recommendation for investors
The aim of this questionnaire is to investigate Laotian consumers' behavior towards Beerlao beer. The objective is to study the behavior of Lao consumers and the marketing network that influences the purchase decision for Beerlao beer. Marketing Mmix and Consumer Behavior', Kuwait Chapter of Arabian Journal of Business and Management Review Vol.2, No.12.
Sarun Purapa, (2013), “Brand Equity, Satisfaction towards Marketing Mix and Buying Behavior Affecting Consumer Buy Behavior Trend on Sigha Beer in Bangkok Metroplis”, SWUMBA Research Conference, 21 augustus.
