This document outlines a research study aimed at understanding the factors that influence customers' switching behavior when purchasing paint. It plans to survey paint consumers in India to determine how customer satisfaction, switching costs, alternative product attractiveness, and promotions impact customers' intentions to switch brands and their actual switching behavior. The study will use structural equation modeling to analyze the data and test hypotheses about the relationships between these variables.
1. Business
Research
Methods
Team members:
Abhay singh Phogat (2201003)
Abhishekh Dubey (2201008)
Adarsh Chourasiya (2201009)
Aditya Gahoi (2201011)
Ankit Batra (2201024)
Anmol Kansal (2201029)
Ankit Singh (2202037)
2. Problem statement
Dulux paints is facing less revenue growth compared to the corresponding Industry growth in India
Objective
• To understand the primary factors considered by customers in buying a paint to make strategy to acquire new customers.
Symptoms
• Less market share
• Less repetitive orders by customers
3. Summary
This paper aims to define the factors that can influence switching behavior of paints consumer in building materials modern retail
channel.
The authors constructed a model containing the relationship between exogenous variables (consumer satisfaction, switching
cost, attractiveness of alternatives, and promotional factors) with endogenous variables (switching intention and switching
behavior).
The population in this study was consumers who bought paint products from building materials supermarkets in Greater Jakarta.
Sample of 160 respondents was analyzed using structural equation modelling (SEM) technique with software Lisrel 8.80.
The result of SEM analysis showed that switching intention significantly affected by consumer satisfaction and attractiveness of
alternatives, switching intention did not affected by switching cost and promotional factors and switching intention has significant
influence on switching behavior.
4. System outline
CS: Consumer Satisfaction;
SC: Switching Cost;
AA: Attractiveness of Alternatives;
PF: Promotional Factors;
SI: Switching Intention;
SB: Switching Behavior
The conceptual model illustrating the study's proposed hypotheses
H1: Consumer satisfaction has significant influence on switching intention.
• Switching costs was defined as fixed costs that consumers will incur when moving from one
supplier to another.
H2: Switching cost has significant influence on switching intention.
• The lack of availability of alternatives in the market can reduce the opportunity for consumers
to switch and the possibility to keep using the same product or service will increase and with the
company gain a competitive advantage
H3: Attractiveness of alternatives has significant influence on switching intention.
• In-store promotion known as the most important factor in influencing switching behavior [14].
H4: Promotional Factors has significant influence on switching intention.
• Switching intention is an idea based on Theory of Planning Behavior (TPB) and is the stage that
precedes switching behavior, and has a very strong relationship with the decision for actual
switching
H5: Switching intention has significant influence on switching behavior.
• An illustration of a conceptual model has been built to represent the abovementioned
hypotheses
Prasetya, P., Najib, M., Soehadi, A. W., & Djohar, S. (2019). How Principal Value and Retailer in the Paint Industry Context in Southeast Asian? A Literature Review. Economic Affairs, 64(2), 341-349.
5. Framework
A questionnaire to be
developed using Google
Forms and distributed via
SMS-blast
All variables to be
measured using a
multiple-item
measurement (indicators)
scale with a five-point
Likert-type response
format
The sample size to be
determined in this study
is based on the
Maximum Likelihood
estimation method that is
5 x the number of
indicators including
errors, this is the opinion
of SEM experts.
Lisrel 8.80 statistics
software to be used to
analyzed the data,
validated the scales and
test the hypotheses.
7. References
Factors Affecting Switching Behavior of Paints Consumers in Building Materials Modern
Retail Channel in Greater Jakarta, Mukhamad Najib
O. S. Al-Kwifi and Z. U. Ahmed, "An intellectual journey into the historical evolution of
marketing research in brand switching behaviour - past, present and future", Journal of
Management History, Vol. 21 No.2, (2015), pp. 172-193.
K. K. Govender, "Brand choice and brand switching: a case study of relocated consumers",
African Journal of Economic and Management Studies, Vol. 8 No. 4, (2017), pp. 441-461.