The decisions made by customers to purchase electronic products are highly dependent on the reputation of the particular brand within Malaysia (Rahman et al., 2020). The brand reputation often determines the product’s quality, reliability, and overall trustworthiness and significantly attracts customers. Research done by Mbete & Tanamal (2020) states that the psychological phenomenon of brand quality guides the decisions made by consumers to purchase a particular product, and it says that positive brand associations contribute to enhanced consumer perceptions.
Several studies have shown how the brand’s reputation influences the decisions made by consumers to purchase products in the market. The impact of brand reputation is undoubtedly crucial, especially in the competitive business environment of electronics. Besides determining the initial purchase of products, brand reputation also enhances and promotes the loyalty and post-purchase experiences of the brand (Mu & Zhang, 2021).
According to Miao et al. (2022), electronic products differ in performance and durability; hence, those with a positive reputation are trusted over others, and customers are more willing to make several purchases of identical products. In addition, social media and online reviews significantly enhance brand reputation and determine consumers’ views on which product to purchase. Some customers rely on the opinions and information of other people who have experience with the same brand to gauge whether the brand is worth buying.
Price Sensitivity and Purchase Decision
Various consumers have varying sensitivity to product prices that greatly influence their purchase decisions in Malaysia’s diverse electronic products in Malaysia. Consumers are always looking for budget-friendly products, and in addition to meeting their technological requirements, price sensitivity is an essential determinant of purchase decisions (Ivanov et al., 2021).
Electronic products are common appliances; hence, numerous companies produce similar appliances, but the difference comes in various features that determine the consumer purchase decision. A study by Aw et al. (2021) states that when choosing the type of product to purchase, consumers compare factors, including product specifications, features, and value, with the product’s price to determine and gauge its worth.
According to Zeng et al. (2022), the prices of products determine the purchase rate by consumers, and customers prefer the budget-friendly products that best serve their intentions. Businesses must analyze product prices deeply, considering how they may influence consumers’ purchase behaviour.
It is essential to ensure that the value of a product aligns with its price to increase the number of customers purchasing that product. Price-quality perceptions are significant in the business environment; hence, companies need to focus on providing quality products rather than lowering the cost of products without focusing on their value (Olson et al., 2021).
Perceived quality and purchase decision
Consumer behaviour largely depends on the relationship between purchase decisions and perceived product quality within Malaysia’s dynamic electronic products market. The perceived quality of these products determines the subjective product evaluation by consumers, influences their overall excellence, and entails factors including features, product durability, and performance (Stylidis et al., 2020). The perceived quality of products affects the customers’ decision-making process as they seek assurance that the product they choose will serve their expectations well with few or no limitations.
The quality of a product not only highlights the inherent characteristics of the product but also shows how committed the company is to offering quality, reliable, and innovative solutions. In addition to fostering loyalty and shaping the brand’s perceptions, perceived quality determines customers’ decisions when purchasing electronic products (Ling et al., 2023).
According to Sjödin et al. (2020), the technological advancements of electronic products change rapidly; hence, the perceived quality of a product is often weighed against the level of innovation. The perceived quality of a product is not merely about the tangible parts but also entails several intangible features, including the brand reputation, post-purchase support, and the customer service offered by the particular company. The customer’s decision-making process on the type of product to purchase is also influenced by positive quality perception that promotes positive word of mouth among consumers, encouraging more purchases.
In addition, customer satisfaction depends on the product’s perceived quality since customers satisfied with the quality of the product are more likely to make more purchases and eventually become loyal customers, as well as recommend the product to other people. Customer satisfaction with the product greatly determines their loyalty to that particular brand. Customers who are satisfied with the quality and operation of a product are more likely to invest in that product (Uzir et al., 2020).
Technological Trends and Purchase Decision
Consumers often look for updated products with the latest technology and are more likely to purchase an appliance with the latest technological advancement. In a study by Varadarajan et al. (2022), consumers judge the value of a product depending on the kind of technology it has, including the changes in the product’s functionalities, features, and innovations.
Global counterparts consumers are often interested in a product’s technology, and the latest technological advancement is the most preferred. Research conducted by Featherman et al. (2021) shows how diffusion of innovations theory determines consumers’ choices when purchasing products, stating that consumers are more likely to buy products they deem as technologically advanced. Businesses involved in electronic products must ensure that they incorporate the latest technologies to meet customer expectations in the constantly evolving technological landscape and stay updated with technological trends.
Technological trends significantly impact consumers’ decisions on purchasing products and their expectations regarding improved functionality and connectivity. Products that constantly integrate the latest technologies have the upper hand in the market environment over other products. Businesses must adopt the latest technologies in their products to ensure that innovation aligns with practicality in addition to meeting the demands of customers (Åström et al., 2022).
Social media and online reviews play a vital role in passing information on the advancement of technology and the products updated with the latest trends, making it a significant determinant of customer decision-making. Customer experiences and favourable reviews can sway potential buyers; therefore, companies need to have an in-depth understanding and capitalize on technological advancements to lure customers into purchasing their products, especially in the dynamic business environment of Malaysia.
Theoretical Framework
This study incorporates numerous theories that aid in understanding the various variables through an organized theoretical framework. Si & Chen (2020) proposed the theory of different innovations that makes it possible to identify how technological trends influence consumer purchase behaviour. Mahmood & Bashir (2020) articulated the brand equity theory that relates consumer purchase decisions and brand reputation. The pricing theory is another concept proposed by Bhutto et al. (2022) to aid in understanding the impact of price sensitivity on consumer purchase decisions. In addition, the perceived quality model proposed by Min et al. (2020) determines the assessment of the product’s success. Incorporating these theories together ensures the reliability and precision of the information obtained from the study on how consumer purchase decisions are determined by the variables under study within Malaysia.
CHAPTER THREE: RESEARCH RESEARCH METHODOLOGY
3.1 Introduction
In this chapter, the various methods used in the entire research to come up with findings are discussed in detail, including the techniques of data collection, the process of sampling, questionnaire formulation, and statistical analysis of the information obtained from the participants in the highly competitive and dynamic electronic products market of Malaysia.
3.2 Sampling process
The significance of the sampling process is to ensure the findings obtained from the study are relevant to the larger population in the electronic products market. The study aims for diversity; hence, a stratified random sampling technique will be implemented where the respondents will be placed in categories such as income level, age, and geographic location. The study’s target population is consumers who have purchased the products recently or are on the verge of buying them.
A confidence level of ninety-five per cent and an error margin of five per cent will be considered when determining the population sample size to ensure a high level of confidence in the results obtained from the study and provide room for any variability in the chosen population sample. In addition, before concluding on the results, more adjustments will be made to cater to the incomplete data and non-responses from the respondents.
Through online surveys and targeted interviews, it will be possible to ensure diverse information is collected from respondents during the recruitment process. Online interactions are a significant form of interaction among consumers; hence, online surveys will aid in collecting substantial information. Moreover, the study ensures the confidentiality and informed consent of the population under study by following the standard ethical considerations.
3.3 Data collection procedure
The data collection method employed by this study is significant as it targets obtaining in-depth information on consumer purchase behaviour within the electronic products market in Malaysia. The study will use a mixed-methods approach to get the respondents’ quantitative and qualitative data. The data will be collected primarily through questionnaires that are well structured to ensure the findings are reliable and applicable to the larger population. In addition, through this technique of data collection, testing the hypothesis and statistical analysis will be possible.
The qualitative data will be collected through online interviews and surveys. The information obtained from the questionnaires will play a crucial role in enhancing the results of the quantitative data, making it possible to effectively identify the influence of the variables on whether the particular product is worth purchasing.
The findings from the study will provide detailed information on the topic of study since the mixed-methods approach of data collection ensures substantial data is collected from the participants on how these factors influence their decisions to purchase electronic products in the dynamic electronic market of Malaysia.
3.4 Variables & measurements
Identifying and measuring the variables under study is essential to ensure the outcomes are relevant. In this study, past works of art will provide the validated scales used for the study, including perceived product quality, brand reputation, price sensitivity, and technological trends.
The reliability and trustworthiness of a product determine its reputation among consumers, hence providing for the brand reputation. Consumers’ responses to the changes made to the products’ prices will form the basis for monitoring price sensitivity among consumers. The appliance’s durability, features and overall performance will be the cornerstone of identifying the product’s perceived quality. With the changing technology, it will be possible to identify consumers’ choices on the kind of innovation they need, making it possible to monitor the impact of technological trends on consumer behaviour. The information obtained from measuring these variables will provide detailed insights into the study results and their applicability to the general population within the Malaysian electronic products market.
3.5 Statistical method
A comprehensive overview of the study results from the collected data will be accepted through a descriptive statistics approach that entails standard deviations and means. Through a correlation analysis, a better understanding of how the various variables relate will be possible. A regression analysis will be significant in understanding the impact of strength and direction on technological advancements, price sensitivity, brand reputation, and perceived quality and how it influences consumers’ purchase decisions.
The importance of the variables under study will be provided by the quantitative approach that will make it possible to test the study’s hypothesis. The thematic analysis of the qualitative data will provide more knowledge on the quantitative data, enhancing the study results. The mixed-methods approach used in the study delivers significant information on the variables and their influence on the choices made by consumers on the type of electronic appliance to purchase in Malaysia’s dynamic electronic products market.
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