International Research Symposium on Pure and Applied Sciences (IRSPAS)

Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/15650

Browse

Search Results

Now showing 1 - 8 of 8
  • Item
    Model for consumer purchasing behaviour of Generation Z
    (4th International Research Symposium on Pure and Applied Sciences, Faculty of Science, University of Kelaniya, Sri Lanka, 2019) Kahawandala, N.; Peter, S.
    The free market economy and the lifting of restriction of trade across national boundaries have provided the consumer, the opportunity to choose from an increasing product range. As the consumer is spoilt for choice, manufacturers face intense competition to catch the attention of the discerning customer. Generation Z consumers have been identified as unique as they are the first generation of digital natives who are born with digital chromosomes in their DNA. Therefore, this segment of the market differs in their characteristics, needs, attributes and work style from other generations. Their influence and economic power are expected to increase rapidly and their buying power is currently estimated as more than $44 billion. They spend approximately a quarter of their time online, but are known to selectively filter this digital information first, before making the purchase decision. In order to cater their demands with a proper strategy, it is important to investigate the determinant factors of these buyer’s, characteristics and actions. Although there are models like Technology Acceptance Model; theory in information system and theory of reasoned action; theory in social psychology which has been used previously to investigate purchasing behaviour, their ability to factor the unique characteristics of this market segment is questionable. The purpose of this paper is to develop and test an extended research model based on the Theory of Planned Behaviour (TPB) that identifies factors influencing the purchasing behaviour of generation Z. TPB is a well-known psychological theoretical framework which links one’s beliefs and behaviour. It states that attitudes towards behaviour, subjective norm, and perceived behavioural control together shape an individual’s behavioural intentions. The proposed extended model of TPB incorporates the additional constructs of market mavenism, technology self-efficacy and social identity to capture the specific characteristics of the Generation Z. Expert opinion from selected personnel in academia and industry were used to validate the proposed model. Implications of this validated model can be utilized to assist in predicting potential consumer adoption behaviour and in designing favourable shopping environments that are compatible with these specific consumer traits
  • Item
    Consumer behavior models and microfinance in Sri Lanka: A systematic review of literature.
    (International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Senasinghe, V.; Peter, S.
    Study of consumer behavior helps enterprises understand the psychology of the customers on how they make their purchase decisions. The objective of this paper is to present a comprehensive review of the literature on the models of consumer behavior. The studies on consumer behavior and consumer decision making have developed various theories and models to explain the consumer behavioral patterns. There are two types of cognitive models that are widely used. Analytical models provide a framework of the key elements that are purported to explain the behavior of consumers and prescriptive models provide a framework to organize how consumer behavior is organized. The theory of buyer behavior is an analytical model and it provides a sophisticated integration of various social, psychological and market influences on consumer decision making. There is, however, widespread questioning of the model’s validity due to the lack of empirical work. In the consumer decision model, many of the elements are similar to those presented in the buyer behavior model. However, the structure of presentation and relationship between the variables somewhat differs. The model is also critiqued to be too restrictive to adequately accommodate the variety of consumer decision making situations. Theory of reasoned action is a prescriptive model and it is a further development of the Fishbein model which proposed that a person’s overall attitude toward an object is derived from his beliefs and feelings about various attributes of the object. Theory of planned behavior which is an extension of theory of reasoned action is developed including an additional mediating variable between intentions and behavior. The model of goal directed behavior can be described as humanistic in its approach as it seeks to explore concepts introspective to the individual consumer rather than describe generic processes. Microfinance relates to the provision of financing to those traditionally unable to obtain funds due to lack of formal income sources. Due to the mushrooming of companies offering the product due to the low default and the high interest rates charged, assessing risk behavior of these customers have become critical. Misuse of the product may cause the entire industry to fail and deprive legitimate customers from obtaining much needed finance to uplift their economic status. In the literature, there are no models relating to the customer risk behavior in microfinance. Therefore, the general consumer behavior models are used to try and explain customer risk behavioral patterns in the microfinance. Though the contexts differ in these two instances, since the loans could also be considered as products and a customer is involved, the models used in consumer behavior are assumed to depict the same type of behavior in the microfinance industry as well.
  • Item
    A multi-pronged approach to assess informational efficiency of the Colombo Stock Exchange.
    (International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Upeksha, P. G. S.; Peter, S.
    With the dynamic nature of the capital market environment, understanding informational efficiency of financial markets has become crucial. Efficient market is one in which prices fully reflect the available information. An implication of an efficient market is that no excess returns can be made from the available information, since it has already been reflected on the current prices. Efficient markets where information can be trusted, channeled to market participants, absorbed and reflected in the stock prices, are important characteristics that global investors look for when deciding to invest, especially in the emerging markets. The objective of this study is to assess the market efficiency of the Colombo Stock Exchange (CSE), Sri Lanka, which is one of the emerging markets in the world. In the post millennium period, a number of studies that have assessed market efficiency at the CSE. However, after the end of the Sri Lankan civil war, the economy underwent dramatic change with the indices showing rapid growth and achieving new heights. Therefore, due to the difference in the sentiment and behavior of the market and investors post conflict, it would be prudent to review whether the results seen previously for weak form and semi-strong form of efficiency still holds. In order to test for weak form efficiency, existence of any correlations of share returns are evaluated. This is done by testing the autocorrelation nature of the selected time series. In order to assess semi-strong efficiency, ‘Event study’ methodology is applied. In event study, the following approaches have been used to derive the abnormal returns. Arbitrage Pricing Theory (APT) Model is a multifactor model. It permits the researchers to choose the best factors. However, it cannot explain variation in asset return in terms of a limited number of easily identifiable factors. Capital Asset Pricing Model (CAPM) accounts for systematic risk. However, it imposes an additional restriction (the intercept equals the risk-free rate) that the variance of the error will be larger than in the market model. Market Model is the vastly used and widely accepted method in short return windows in the event studies. Market Model usually outperforms CAPM. GARCH Model estimates volatility. It is a preferred method because, with asset returns volatility seems to vary during certain periods of time. It further aims to minimize errors in forecasting by accounting for errors in prior forecasting, enhancing the accuracy of ongoing predictions. Taking into consideration the context of the local stock exchange, market participation, and institutional activity, two alternative methods were identified to derive the abnormal returns, i.e. Market Model and GARCH Model. The study expects to use dividend announcements as the primary informational source, and it is expected to identify whether evidence of abnormal returns is shown after the announcement, in order to determine whether CSE is semi-strong efficient.
  • Item
    Customer perceived quality management practices and organizational performance: Case of private healthcare sector in Sri Lanka.
    (International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Sowmiya, B. A.; Peter, S.
    Quality in a healthcare organization is three dimensional: patient quality is what patients say they want, professional quality is what professionals believe patients need (outcome and process), and management quality is the optimisation of resources to provide patients what they want and need, without waste, errors or delay, and within the policy and legal regulation. Therefore, Patient perceived quality is the overall service quality of healthcare organization. Perceived service quality is the customer’s judgment about the service’s overall excellence, based on perceptions of what is received and what is given. Most studies on quality however, have focused on the manufacturing with relatively less focus on the service sector. In Sri Lanka, private healthcare services have flourished with even the middle to lower income people patronizing their services. This growth has had a positive effect on public healthcare service in raising their standards and service level from what they were previously. The study investigates the impact of customer perceived quality management (QM) practices on organizational performance in selected private healthcare providers. The study assesses the extent to which customer perceived QM components have been implemented in these hospitals and to identify which of these customer perceived QM components are associated with improvement of performance at these hospitals. The study was restricted to the Western Province which the Private Health Services Regulatory Council reveals has over 40% of the private hospitals in the country. Hence, the sample included a total of eight healthcare service providers which comprised some of the leading healthcare providers in Colombo. Many previous studies have focused on the customer-perceived quality in services. Parasuraman in his study on customer-perceived quality, reduced the original ten factors that he identified to five: tangibles, reliability, responsiveness, assurance, and empathy. This SERVQUAL model has been successfully used to assess quality in the services industry including the healthcare sector. In general, many studies have found the application of SERVQUAL to be reliable in the health-care context. This study used the SERVQUAL model as a basis to assess the private healthcare sector in the country. It should be noted that interpretation and operationalization of some of the variables were adjusted to suit the local context. Dimensions of SERVQUAL model, reliability, responsiveness, assurance, empathy and tangibles were assessed while performance was measured using both financial as well as non-financial indicators. The study found significant evidence to establish a relationship between customer perceived QM components and organizational performance of healthcare firms. The regression analysis results suggest that customer perceived QM components, reliability, responsiveness, assurance, empathy and tangibles all contributed to the improved performance. The results of the study can be used by hospitals to better understand customer needs and thus enhance the levels of patient satisfaction.
  • Item
    A conceptual framework to assess supply chain risk in the apparel industry.
    (International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Erandi, H.; Peter, S.
    Along with the advent of globalization and the championing of free trade together with improved communication and transportation systems, enterprises have the ability to source supplies from a globally distributed supply chain. However, on the flip side, due to the complexities in dealing with a dispersed network of suppliers, manufacturing companies are facing risks of disruption to their supply chains. As risk is very context dependent, it is important to identify supply chain risks in different contexts and industries. Sri Lankan apparel industry plays a major role in the country’s economy, making it vital for companies to engage in proper identification and assessment of these risks. Therefore, the objective of this study is to conceptualize a model to assess identified supply chain risks and thereby to generate an overall risk assessment score for an apparel manufacturing company. The initial base for risk identification is through the use of the Ishikawa model. The cause and the effect for supply chain risks were established by analysing the initial data collected and via industry experts, a list of risk classes and sub classes were formed. Thereafter, a modified version of risk numeric analysis model is used to setup each and every class weight where industry experts’ opinion is taken for calculating the appropriate weights. Instead of using Analytical Process Hierarchy (AHP) which was used in the original model, Analytical Network Process (ANP) is used to prioritize the identified risk classes. The decision to use ANP is due to its ability to consider the complex inter relationships and linkages between risk classes and sub classes during the prioritization process. Finally, an aggregate score is developed for the overall company in terms of the supply chain risks by using the scores obtained for each risk class. The model will highlight the different types of supply chain risks that an apparel manufacturing company may face and how a proper mechanism can be developed to quantify these risks. The model would facilitate the company to directly identify the magnitude of each and every supply chain risk and the risk distribution via the overall risk score of the company. The risk score can be used by managers as a flag or an indicator that signals the company about potential risks. Apart from that, this model can be used to compare historical figures to monitor and evaluate the overall risk scores of the company. Furthermore this risk score can be used to compare the company performance with other competitors’ score values and to analyse how competitive the company is within the industry.
  • Item
    Possibility of applying Industry 4.0 as a business process re-engineering tool: Case study from an apparel production plant
    (Faculty of Science, University of Kelaniya, Sri Lanka, 2016) Jayatilake, H.S.B.; Withanaarachchi, A.S.; Peter, S.
    The industrial revolution began with the mechanization of the textile industry, followed by the age of mass production and subsequently manufacturing going digital. The world is now gradually moving to the fourth industrial revolution which draws together Cyber-Physical Systems, the Internet of Things and the Industrial Internet of Things along with the concept of “smart factory”. The concept of fourth industrial revolution has originated from countries like Germany as “Industry 4.0”, as a government initiative, and from USA as “Industrial Internet Consortium” as an initiative from leading multinational organizations. This case study is based on real time analysis and the experiences in the operational function of an apparel manufacturing plant in Sri Lanka. The production plant is currently facing serious issues such as labor shortage, high labor turnover and weaknesses in inventory management which required an immediate process reengineering in order to become viable and sustainable business. The main objective of this case study is to identify the possibility of re-engineering the business process of the production plant by applying the concepts of Industry 4.0, rather than depending only on conventional process re-engineering concepts. Implementing smart factory concept in the apparel industry is still an emerging approach in Industry 4.0 which has been considered in this article as a novel approach. In order to attain the stated research objectives, a qualitative approach has been adopted in this study. Senior management and selected operational level employees, were interviewed using structured and unstructured questionnaires along with five months of self-observations in the production plant by the authors themselves and a detailed literature survey. The findings indicate that the plant has the necessary features to implement Industry 4.0. However, in terms of readiness to implement Industry 4.0, the plant is still in the initial stage. In conclusion, the production plant’s potential to be converted as a smart factory from its current position by resolving the major issues is assessed. It also discusses the capability of Industry 4.0 to become the new benchmark for smart factories, going beyond the concept of using business process reengineering to align the organization to adapt to the dynamic environmental changes taking place in the world currently.
  • Item
    A behavioural model to assess risk behaviour of young adults
    (Faculty of Science, University of Kelaniya, Sri Lanka, 2016) Himasara, T.M.H.; Peter, S.
    Risk behaviour of young adults have progressively escalated over the past few decades. It generally emerges during adolescence, resulting from a sense of invulnerability, combined with boldness. Therefore, young adults for whom risk taking is a preoccupation of daily life, provide a normative sample for assessing risk behavior. Human risk behaviour has been analyzed mainly based on Western context while studies in the developing country setting is limited. The literature review suggests the need of a tool to evaluate the risk behaviour of young adults in a developing country setting and also the need to establish the relationship between individual characteristics, external stimuli and risk behaviour. The study aims to elicit factors that determine risk behaviour of young adults in Sri Lanka and how these factors can be used to develop risk profiles through a comprehensive model. The behavioural model of the determinants of risk behaviour suggests that this is determined by two individual factors, namely risk propensity and risk perception. Risk propensity was found to be positively related and risk perception was negatively related to risk-taking behaviour. It was further postulated that risk perception partially mediates the effect of propensity to take risk. The model was later extended to analyse the effect of risk on decision-making behaviour in organizational settings where the reconceptualised model describes the joint effect of both dispositional and situational factors on decision making along with organizational and problem characteristics. The reconceptualised model of risk behaviour has been used to form the basis of the model and it has been modified according to the Sri Lankan context by including the individual characteristics and excluding the specific organisational related elements. The individual characteristics influence risk preference while both risk preference and inertia will affect the risk propensity of an individual. The way the problem is framed is influenced by attitudes, beliefs, knowledge and experience. Furthermore, the value systems, norms and cultural ideologies form the social influence which affects the risk perception and finally together with risk propensity affects risk behaviour. The proposed model has been developed through review of literature, and interviews with a number of young adults with a dispersed set of individual characteristics and will be validated in the next phase.
  • Item
    “Save me”: Alternative payment method for in-app purchases
    (Faculty of Science, University of Kelaniya, Sri Lanka, 2016) Choxmi, S.; Peter, S.
    The mobile smart phone has become the most sought after technology tool, among the younger generation of the world. Sri Lanka is no exception with mobile penetration at more than 100% with growth of smart phone usage growing exponentially. Gaming with the aid of computers has become a billion dollar business and the wide usage of mobiles meant that a wider audience has now access to such tools. Companies are moving away from broad based advertising to more targeted direct advertising to capture market share. Use of mobile apps is widespread and the potential for companies to generate revenue streams by tapping into these applications have huge potential. The business strategy adopted by some developers is to offer the game for free while progress in levels of the game require in-app purchases to improve the gaming success and gain competitive advantage among players. In the perspective of the developers, in-app purchasing done by the gaming individuals is the main revenue stream. In developing countries like Sri Lanka, players of these games are reluctant or unable to spend money to purchase these inapps, since there is no financial benefit other than succeeding in the game. The other reason is that credit card details should be provided to purchase them. Most young people do not have or have access to credit card facilities. Thus, developers of game products are inhibited due to the lack of monetary incentive to build new gaming products and the players are inhibited by not being able to utilize the total advantages provided by the game. “Save – me” is a product designed to overcome these constraints by introducing an alternative method for payment and thus provide an incentive for mobile game developers to expand their market and increase their revenues, leading to the development of the information technology sector in the country. The current revenue models used by game developers include, selling the game for a fixed amount as a onetime fee, generating revenue from advertising while providing the game at no cost, and product or service providers financing the cost of the game through use of virtual coins. The models were evaluated using cost-benefit and sensitivity analysis. The latter was selected for its innovativeness and the ability to address the issue in a cost effective manner. The web portal solution includes three stakeholders. i.e. gamers, developers and manufacturers of goods and services targeting the gaming segment of the population. The process will commence with manufacturers / distributors assigning a discount to their products, in order to boost their revenue. Instead of giving customers the monetary discounts, the manufacturers will purchase virtual coins from “Save me”, and assign those coins to selected games on the portal. Customers who have registered on the portal, can earn these virtual coins instead of the discount, by progressing through the game and collecting these virtual coins. They can then exchange these virtual coins by going to their local supermarket which acts as a distributor and exchange the coins for the physical product that the manufacturer wants to promote. The game developers will be sharing the revenue via the purchases done by the players together with the portal owner.