The Role of Business Location and Social Environment in Determining the Type of Business
Keywords:
Business Location, Community Social Environment,, Type of Business, Consumer BehaviourAbstract
The first step taken by business people in starting a business is to understand and determine the type of business to be carried out and consumer behaviour in running a business. Consumer behaviour is more or less influenced by psychological factors that will identify the way individuals receive and communicate with their environment and its impact on decision making. Understanding this basic concept aims to make it easier for businessmen to prepare strategies for effective marketing strategies in dealing with volatile consumer behaviour in the purchasing decision process. The research was conducted for analytical and exploring purposes to investigate the impact on the right type of business and consumer behaviour from the aspects of location and the social environment of the community around the place of business. This research can be categorized as explanatory research or confirmatory research which uses multiple linear regression analysis and path analysis as analytical techniques with Type of Business as the dependent variable (Y), Business Location (X1) and Community Social Environment (X2) as independent variables, and Consumer Behaviour (Z) as an intervening variable. The results of this research suggest that the Community Social Environment (X2) has the greatest influence when compared to Business Location (X1) on Consumer Behaviour (Z) in making purchasing decisions on a type of business product (Y).
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