Effective of Discounting Strategy on Buyers Reddiness

8/10/2019 Effective of Discounting Strategy on Buyers Reddiness

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TABLE OF CONTENTS

Research Report on Impulse Buying Page 1



Title Of The Research Paper :

“Impulsive buying behavior of consumers in Mumbai city” (FMCG SECTOR) with

special reference to few selected alls and retail o!tlets ("#Star$ R#Cit%$ &nor'it $Cit% Center$

Bi'aar$ *#Mart) &n M!'ai Cit% +There are an% factors which affect Cons!ers &p!lse

B!%in Beha,io!r in FMCG ar-et '!t & a onl% anal%sin ar-eter.s dri,en factors which are /

• Price and discount

• dvertising and sales promotion

• !isual merchandising

• "motional attachment

• #ompany

• Income

• $estival season

Purpose%Ob&ectives :'

Most of the researches on ip!lse '!%in 'eha,io!r ha,e 'een cond!cted in the

0estern societ% which is considera'l% ore ad,anced than this+ The ain o'1ecti,e of this

research paper is to e2plore the incidence of and difference of ip!lse '!%in 'eha,ior in alls

and retail o!tlets in M!'ai cit%$ with respect to factors s!ch as prod!ct cateor%$ rocer% 'ill

and n!'er of prod!cts 'o!ht$ and the shopper.s ender+The other o'1ecti,es are as follows /#

To !nderstand the reason of$ wh% do people '!% ip!lsi,el% 3

To !nderstand the cons!er 'eha,ior while shoppin in alls and retial o!tlets+

To identif% the factor which infl!ences cons!er decision a-in process 3

To classif% t%pes of c!stoers '!%in ip!lsi,el%$with reference to ae$ ender$ incoe$etc+

To !nderstand the effects of different offers and disco!nts on ip!lse '!%in

To st!d% who is the decision a-er in ip!lsi,e p!rchasin3+

To st!d% whether c!stoers are satisfied after p!rchasin ip!lsi,el% or not3

Research Report on Impulse Buying Page (



)eed $or *tudy :'

Co!pled with the prosperit% of recent %ears$ ip!lse p!rchasin has 'een on the rise+

Mar-eters capitalie on the phenoenon as the% str!le to discern what a-es a cons!er a-e an ip!lse p!rchase+ This propts towards the de,elopent of an effecti,e ip!lse

p!rchasin odel+ 0hich cannot 'e achie,ed witho!t first e2plorin the 4!alitati,e side of

ip!lse p!rchasin theor% and its iplications and definitions+

A st!d% cond!cted in ,ario!s 'randed retail o!tlets in 5 etro cities in &ndia shows

567 of all sales are act!all% !nplanned p!rchases+ This is wh% the st!d% of ip!lse p!rchase in

&ndian conte2t is so iportant+

*cope Of *tudy :'

The ain scope of the st!d% is restricted to few selected alls and retail o!tlets ("#Star$ R#

Cit%$ &nor'it $Cit% Center$ Bi'aar$ *#Mart) &n M!'ai Cit% +

This st!d% has 'een ade to find the &p!lsi,e B!%in Beha,ior C!stoers in M!'ai cit%+

Research Methodology :'

The research ethodolo% was di,ided into two staes which in,ol,e two so!rces for

collectin the data in order to achie,e the o'1ecti,e of pro1ect+

• Collectin data reardin the potential c!stoers fro retailers thro!h retailers

o'ser,ation in the e2istin alls and retail o!tlets (-#star$ r#cit%$ inor'it $rah!leela$

'i'aar$ d#art) within M!'ai cit% +

•Collectin the priar% data directl% with the c!stoer with the help of the

4!estionnaire +Refer nne,ure'1- and personal inter,iews .

A hypothetical consumer impulse buying behaviour model +Refer $ig /- is also

ta-en into consideration $which has 'een entioned in concl!sion and findins part




*TR#T :'

&p!lse p!rchasin has 'een a foc!s of ar-etin research since the si2ties+

Researchers ha,e attepted to e2plain ip!lse p!rchasin with the sciences of ps%cholo% and

e,en philosoph%+ 8re,io!s research has failed to coe !p with a odel for s!ch$ perhaps 'eca!se

of the intani'ilit% of ps%choloical traits of ip!lsi,it% or the rationalit% in which philosoph%

has its roots in+ 9et it is a pre,alent phenoenon in the dail% life of the a,erae cons!er$ %o!

and e+ There e2ists no odel that ser,es as an effecti,e predictor of an ip!lse '!%+ &t sees

that the phenoenon of ip!lse p!rchasin has anaed to e,ade+

This research is an attept to find the resons for ip!lsi,e '!%in practice of

c!stoers and also the ,aria'les:factors that effects c!stoer ip!lse '!%in 'eha,io!r inFMCG sector considerin alls and retail o!tlets in !'ai cit% + The ipact of ,ario!s

ip!lse '!%in factors li-e sales and prootions$ placeent of prod!cts$ window

erchandisin$ effecti,e price strate% etc on c!stoer ip!lse '!%in 'eha,io!r has 'een

anal%ed+

A h%pothetical odel has created in this paper which has 'een ta-en into consideration

for o!r research wor- on ip!lse '!%in 'eah,io!r of the cons!ers+ This st!d% foc!ses on

e2plainin ip!lsi,e shoppin thro!h trends '% testin the ,alidit% of h%pothetical relations

'etween socioeconoic factors s!ch as ender$ wealth$ ae$ presence of shoppin list $sie of 'ill

and ip!lse shoppin+ ;!alitati,el%$ this is a case st!d% in which e2plores what people p!rchase

and their personal reasons and 1!stifications for s!ch p!rposes at se,eral alls and retail o!tlets

in M!'ai cit%+ ;!antitati,el%$ & ha,e set o!t to find predictors as &$e2aine what a-es

shoppers open their wallets on the spot+ The st!d% is 'ased on the priar% data collected fro

alls and retail o!tlets (-#star$ r#cit%$ inor'it $ rah!leela$ 'i'aar$d#art) within M!'ai cit%

with the help of str!ct!red 4!estionnaire on ricter scale$ s!r,e%s and inter,iews

After the thro!h anal%sis of the a,aila'le data it has 'een fo!nd o!t that since incoe

of indi,id!al is increasin and ore and ore people are o,in towards western c!lt!re in

dressin sense$ in eatin etc so the p!rchasin power of the people has reall% one !p and

th!s the ip!lse '!%in of the coodities is on a reat increent ainl% d!e to pricin

strateies of retail pla%ers and f!ll of festi,als thro!ho!t the %ear+




I)TRO34#TIO) :'

&ndia is a rowin econo% with a real G*8 rowth rate of <+57 + The real pri,ate

cons!ption e2pendit!re has rown at an a,erae rate of <+6 percent per ann! d!rin the last

fo!r %ears res!ltin in the eerence of a stron iddle class with rowin p!rchasin power+

This has res!lted in people ,%in for a ore coforta'le and !r'anied lifest%le+ The !shroo

rowth of coffee ho!ses$ eateries$ s!perar-ets$ etc+$ is a proof of that $&n the past three decades$

!ch research has 'een cond!cted internationall% to define to !nderstand the ps%choloical$

econoic and retail iplications of s!ch a trend+ One area of interest has 'een =ip!lse

'!%in>+ &p!lse '!%in occ!rs when a cons!er e2periences a s!dden$ often powerf!l and

persistent !re to '!% soethin iediatel%+ The ip!lse to '!% is hedonicall% cople2 and

a% sti!late eotional conflict+ Also$ ip!lse '!%in is prone to occ!r with diinished reard

for its conse4!ences+Mar-eters and retailers tend to e2ploit these ip!lses which are tied to the

'asic need for instant ratification+ Recentl% se,eral s!perar-ets ha,e 'een esta'lished in the

!r'an cities of &ndia+ The ost proinent ones in M!'ai are "#Star$ R#Cit%$ &nOr'it

Cit%Center$ BiBaar$ *#Mart+ ?owe,er$ no st!d% has 'een cond!cted in &ndia to st!d% the

'!%in 'eha,io!r of shoppers and what factors infl!ence their decisions+ ?ence$ the researchers

ha,e decided to cond!ct an e2plorator% research to !nderstand the eneral nat!re of ip!lse

'!%in in ain s!perar-ets$ alls$ retailo!tlets of M!'ai +&p!lsi,e p!rchasin$ enerall% defined as a cons!er.s !nplanned p!rchase which is

an iportant part of '!%er 'eha,ior+ &t acco!nts for as !ch as @7 of s!perar-et sales and

<7 of all sales in certain prod!ct cateories+ Tho!h ip!lsi,e p!rchasin has attracted

attention in cons!er research+ nfort!natel%$ there is a dearth of research on ro!p#le,el

deterinants+

This research s!ests that the presence of other persons in a p!rchasin sit!ation is

li-el% to ha,e a norati,e infl!ence on the decision to a-e a p!rchase+ The nat!re of this

infl!ence$ howe,er$ depends on 'oth perceptions of the norati,e e2pectations of the indi,id!als

who e2ert the infl!ence and the oti,ation to copl% with these e2pectations+ 8eers and fail%

e'ers$ are the two priar% so!rces of social infl!ence$ often ha,e different norati,e

e2pectations+

Research Report on Impulse Buying Page /



Th!s$ it has 'een e,al!ated two factors that are li-el% to affect the oti,ation to

confor to social nors/

a) The inherent s!scepti'ilit% to social infl!ence and

') The str!ct!re of the ro!p

Gro!p cohesi,eness refers to the e2tent to which a ro!p is attracti,e to its e'ers+

The theor% proposed '% Fish'ein and A1en helps concept!alie these effects+ This theor%

ass!es that 'eha,ior is a !ltiplicati,e f!nction of e2pectations for what others consider to 'e

sociall% desira'le and the oti,ation to copl% with these e2pectations

Theory of Planned ehavior :'

Theory of Reasoned ction :-




#onceptual $rame6or7 :'

Co'' and ?o%er (D<@) and "ollat and 0illet (D@) ha,e defined ip!lse '!%in

sipl% as !nplanned p!rchasin+ Roo- (D<) a,e a narrow and ore specific eanin to

ip!lse '!%in$ which incl!ded 'eha,ioral eleents+The definition of ip!lse is as follows

=&p!lse '!%in occ!rs when a cons!er e2periences a s!dden$ often powerf!l and persistent

!re to '!% soethin iediatel%+ The ip!lse to '!% is hedonicall% cople2 and a%

sti!late eotional conflict+ Also$ ip!lse '!%in is prone to occ!r with diinished reard for

its conse4!ences+> (Roo-$ D<$ p+DD)+

&p!lse '!%in has 'een defined as a spontaneo!s$ iediate p!rchase (Roo-

Fisher$ D5) witho!t pre#shoppin intentions either to '!% a specific prod!ct cateor% or to

f!lfill a specific '!%in tas- (Beatt% Ferrell$ D<)+ The ip!lse '!%in 'eha,ior occ!rs after

e2periencin an !re to '!% and tends to 'e spontaneo!s witho!t a lot of reflection (Beatt%

Ferrell$ D<)+ Since ip!lse '!%ers are not acti,el% loo-in for a certain prod!ct and don.t ha,e

prior plans or intention to a-e a p!rchase (Beatt% Ferrell$ D<H 0e!n$ Iones$ Beatt%$

D<)$ internal states and en,ironental:e2ternal factors can ser,e as c!es to trier their

ip!lse 'eha,ior+

#onceptual 3efinition :' Based on the e2tant literat!re re,iewed & ha,e defined ip!lse '!%in as done '% Enel$

"ollat$ and Blac-well (D@<) (as cited in 8iron$ DD)+ &p!lse '!%in is defined as a '!%in

action !nderta-en witho!t the pro'le ha,in 'een pre,io!sl% reconied or a '!%in intention

fored prior to enterin the store +

Operational 3efinition :'

Based on the literat!re re,iew & plan to follow the followin definition for the p!rposeof research+

Shoppers are as-ed !pon e2itin the store what ites the% p!rchased+ For each ite$

the% are then as-ed soe ,ariant of the 4!estion when the% decided to '!%H 'efore or after

enterin the store+ The ites p!rchased whose decisions were ade after enterin the store are

ip!lse p!rchases (Bellener$ Ro'ertson$ and ?irschan D<)+




8retest 4!estionin is not !sed as it forces the shopper to recite fored intentions and

coit the shoppers to their intentions (8olla% D@<)+ The pro'les with the post p!rchase

operational definition are that the incidence of ip!lse p!rchases a% 'e !nderstated '% the

shopper in an effort to appear rational+ ?owe,er$ this definition is easier to operationalie

'eca!se shoppers will 'e willin to i,e inter,iews once rather than twice ('efore and after

shoppin) and it does not create the 'ias in the ind of the shoppers to follow the intention that

the% stated in the pre#shoppin inter,iew

9IT"RT4R" R"!I" :'

I)3I : The Research #onte,t

Accordin to the Econoic S!r,e% (#D)$ the real G*8 rowth rate of &ndia has

'een <+@7 per ann! in the last 5 %ears and the per capita incoe has rown '% +67+ The real

pri,ate cons!ption e2pendit!re has rown at an a,erae rate of +6 percent per ann! d!rin

the last fo!r %ears res!ltin in the eerence of a stron iddle class with rowin p!rchasin

power and with increase in the wor-in pop!lation and si!ltaneo!s decrease in the share of

dependent pop!lation has declined$ the disposa'le incoes and c!rrent cons!ption hasincreased+ This increase in cons!er spendin has led to ore shoppin and conse4!entl% has

1!stified a research into the incidence and nat!re of ip!lse p!rchases+ Also$ with chanin

deoraphic trends$ender roles in p!rchase 'eha,io!r ha,e chaned considera'l% in !r'an

&ndia with woen 'ein ore acti,e in shoppin now+

The followin section will s!arie pre,io!s research on ip!lse shoppin+&nitial

reconition of the phenoenon can 'e traced 'ac- as earl% si2ties+ The ost priiti,e ip!lse

p!rchasin perspecti,es foc!sed on e2ternal factors that iht ind!ce the phenoenon+ ?+ Stern

(D@) descri'ed factors that iht infl!ence ip!lse p!rchasin$ which he descri'ed as a

decision to '!% a prod!ct while the% are in the store/

Research Report on Impulse Buying Page ;



• 8rice

• Marinal need for prod!ct or 'rand

• Mass distri'!tion

• Self ser,ice

• Ad,ertisin

• 8roinent store displa%

• Short prod!ct life

• Sall sie

• Ease of storae (Stern)+

"ollat and 0illet (D@) defined the first cateories of ip!lse p!rchases as follows/

Brand decidedH cateor% decidedH prod!ct class decidedH eneral need reconied (i+e+ need a

'irthda% ift)H eneral need not reconied+ The latter has no plannin whatsoe,er and is there

fore reconied as p!re ip!lse p!rchasin (Ba%le%)+ The phenoenon reained attention in the

eihties$ where the e2periential aspect of ip!lse shoppin itself 'ean to 'e e2plored+ Enel

and Blac-well defined ip!lse p!rchasin as =a '!%in action !nderta-en witho!t a pro'le pre,io!sl% ha,in 'een reconied or '!%in intention 'een fored 'efore enterin the

store+>(Enel+) This is the ost widel% accepted definition of ip!lse shoppin+

Most of the researches on ip!lse '!%in 'eha,io!r ha,e 'een cond!cted in the 0estern

societ% which is considera'l% ore ad,anced than &ndia+ The o'1ecti,e of this research paper is

to e2plore the incidence of and difference of ip!lse '!%in 'eha,ior in s!perar-ets alls and

retail o!tlets in M!'ai $ with respect to factors s!ch as prod!ct cateor%$ rocer% 'ill and

n!'er of prod!cts 'o!ht$ and the shopper.s ender+

Research Report on Impulse Buying Page <



#O)*4M"R 4=I)> "?!IOR :'

3efinition:

Cons!er 'eha,ior refers to the ental and eotional process and the o'ser,a'le

'eha,ior of cons!ers d!rin searchin$ p!rchasin and post cons!ption of a prod!ct or

ser,ice+

Cons!er 'eha,ior in,ol,es st!d% of how people '!%$ what the% '!%$ when the% '!% and

wh% the% '!%+ &t 'lends the eleents fro ps%cholo%$ sociolo%$ sociops%cholo%$ anthropolo%

and econoics+ &t also tries to assess the infl!ence on the cons!er fro ro!ps s!ch as fail%$

friends$ reference ro!ps and societ% in eneral+

B!%er 'eha,ior has two aspects/ the final p!rchase acti,it% ,isi'le to an% o'ser,er and

the detailed or short decision process that a% in,ol,e the interpla% of a n!'er of cople2

,aria'les not ,isi'le to an%one+

$actors ffecting #onsumer uying ehavior :'

Cons!er '!%in 'eha,ior is infl!enced '% the a1or three factors/

D+ Social Factors

+ 8s%choloical Factors

J+ 8ersonal Factors+

. *ocial $actors :'

Social factors refer to forces that other people e2ert and which affect cons!ers.

p!rchase 'eha,ior+ These social factors can incl!de c!lt!re and s!'c!lt!re$ roles and fail%$

social class and reference ro!ps+

",ample:

Research Report on Impulse Buying Page 1@



B% ta-in into consideration Reference ro!p$ these can infl!ence: affect the

cons!er '!%in 'eha,ior+ Reference ro!p refers to a ro!p with who an indi,id!al identifies

herself: hiself and the e2tent to which that person ass!es an% ,al!es$ attit!des or 'eha,ior

of ro!p e'ers+ Reference ro!ps can 'e fail%$ school or collee$ wor- ro!p$ cl!'

e'ership$ citienship etc+

Reference ro!ps ser,e as one of the priar% aents of cons!er socialiation and

learnin and can 'e infl!ential eno!h to ind!ce not onl% sociall% accepta'le cons!er 'eha,ior

'!t also sociall% !naccepta'le and e,en personal destr!cti,e 'eha,ior+ For e2aple$ if fresher

st!dent 1oins a collee : !ni,ersit%$ he:she will eet different people and for a ro!p$ in that

ro!p there can 'e 'eha,ior patterns of ,al!es$ for e2aple st%le of clothin$ handsets which

ost of ro!p e'er prefer or e,en destr!cti,e 'eha,ior s!ch as e2cessi,e cons!ption of

alcohol$ !se of harf!l and addicti,e dr!s etc+ So$ accordin to how an indi,id!al references

hi : herself to that partic!lar reference ro!p$ this will infl!ence and chane his:her '!%in

'eha,ior+

. Psychological $actors :'

These are internal to an indi,id!al and enerate forces within that infl!ence her:his

p!rchase 'eha,ior+ The a1or forces incl!de oti,es$ perception$ learnin$attit!de and

personalit%+

",ample:

Attit!de$ is an end!rin oraniation of oti,ational$ eotional$ percept!al and

coniti,e processes with respect to soe aspect of o!r en,ironent+ Cons!er for attit!de

towards a 'rand on the 'asis of their 'eliefs a'o!t the 'rand+ For e2aple$ cons!ers of Son%

prod!cts iht ha,e the 'elief that the prod!cts offered '% Son% are d!ra'leH this will infl!ence

those c!stoers to '!% Son% prod!cts d!e to this attit!de towards the 'rand+

#. Personal $actors :'

These incl!de those aspects that are !ni4!e to a person and infl!ence p!rchase 'eha,ior+

These factors incl!de deoraphic factors$ lifest%le$ and sit!ational factors+

",ample:




Lifest%le is an indicator of how people li,e and e2press thesel,es on the 'asis of their

acti,ities$ interests$ and opinions+ Lifest%le diension pro,ide a 'roader ,iew of people a'o!t

how the% spend their tie the iportance of thins in their s!rro!ndins and their 'eliefs on

'road iss!es associated with life and li,in and thesel,es+ This is infl!enced '% deoraphic

factors and personalit%+

E++ A CEO or Manaer is li-el% to '!% ore foral clothes$ ties and shoes or 8*As and less

inforal clothes li-e 1eans as copared to a Mechanic or Ci,il enineer+ So accordin to their

lifest%le and profession$ the '!%in 'eha,ior of people differ fro one another+

#O)*4M"R 4=I)> 3"#I*IO) PRO#"** :'

3efinition:

Cons!er '!%in decision process is the processes !nderta-en '% cons!er in reard

to a potential ar-et transaction 'efore$ d!rin and after the p!rchase of a prod!ct or ser,ice+

#onsumer decision ma7ing process generally involves five stages:

Research Report on Impulse Buying Page 1(



Cons!er 'eha,ior is a st!d% of how indi,id!als a-e decisions to spend their

a,aila'le reso!rces (tie$ one% and effort) on cons!ption of related ites (0hat$ wh%$ when$

where and how the% '!% and !se s!ch prod!cts and ser,ices)+ Also we need to !nderstand$ wh%

cons!ers a-e the p!rchases that the% a-e3 0hat are the factors that infl!ence cons!er

p!rchases3 0hat is the chanin factors in o!r societ% that !ide s!ch p!rchase 'eha,ior+

The / stages of consumer decision process are:

Problem Recognition :'




8!rchase decision a-in process 'eins when a '!%er 'ecoes aware of an

!nsatisfied need or pro'le+ This is the ,ital stae in '!%in decision process$ 'eca!se witho!t

reconiin the need or want$ an indi,id!al wo!ld not see- to '!% oods or ser,ice+ There are

se,eral sit!ations that can ca!se pro'le reconition$ these incl!de/

K *epletion of stoc-

K *issatisfaction with oods in stoc-

K En,ironental Chanes

K Chane in Financial Sit!ation

K Mar-eter &nitiated Acti,ities

",ample:

&ts when a person reconies that she can not a-e a call fro her o'ile phone that.s

when she reconies that her phone has 'een daaed i+e+ the phone has hardware pro'les and

needs to 'e repaired or '!%in a new piece+

Information *earch :'

After the cons!er has reconied the need$ he : she will tr%in to find the eans to

sol,e that need+ First he will recall how he !sed to sol,e s!ch -ind of a pro'le in the past$ this

is called noinal decision a-in+ Secondl%$ a cons!er will tr% to sol,e the pro'le '% as-in

a friend or oes to the ar-et to see- ad,ice for which prod!ct will 'est ser,e his need$ this is

called liited decision a-in+

*ources of information include:

K 8ersonal so!rces

K Coercial So!rces

K 8!'lic so!rces

K 8ersonal e2perience

",ample: +contin!in fro pre,io!s-

The !ser of the phone after reconiin that her phone is daaed$ she will e,ent!all%

tr% to find o!t how she can repair her phone+ &f she cannot repair it herself she will as- a friend to




help o!t$ if the friend can not sol,e the pro'le she will o to o'ile repair shop$ if the% also

can not repair it then she will tr% to find which o'ile phone is ood and that can ser,e her need+

&n this process of inforation collection it will %ield awareness of set of 'rands of o'ile phones

she can '!%+

lternatives evaluation :'

Cons!ers. e,al!ates criteria refer to ,ario!s diensionH feat!res$ characteristics and

'enefits that a cons!er desires to sol,e a certain pro'le+ 8rod!ct feat!res and its 'enefit is

what infl!ence cons!er to prefer that partic!lar prod!ct+ The cons!er will decide which

prod!ct to '!% fro a set of alternati,e prod!cts dependin on each !ni4!e feat!re that the

prod!ct offers and the 'enefit he : she can et o!t of that feat!re+


0hen that !ser ot eno!h inforation concernin the different 'rands of o'ile

phones a,aila'le in the ar-et$ she will decide which -ind of a o'ile phone and 'rand she.s

oin to '!% dependin !pon her need for that partic!lar o'ile$ either a o'ile for !ltiedia

and entertainent$ sartphone or classic phone+

Purchase ction :'

This stae in,ol,es selection of 'rand and the retail o!tlet to p!rchase s!ch a prod!ct+

Retail o!tlet iae and its location are iportant+ Cons!er !s!all% prefers a near'% retail o!tlet

for inor shoppin and the% can willinl% o to a far awa% store when the% p!rchase ites

which are of hiher ,al!es and which in,ol,e hiher sensiti,e p!rchase decision+

After selectin where to '!% and what to '!%$ the cons!er copletes the final step of

transaction '% either cash or credit+


After selectin 'rand of the phone and odel fro different alternati,es of o'ile

phones$ she will a-e a final decision of where to '!%in that phone and a-e the final

transaction proced!res+

Post'purchase ctions :'

Cons!er fa,ora'le post#p!rchase e,al!ation leads to satisfaction+ Satisfaction with the

Research Report on Impulse Buying Page 1/



p!rchase is 'asicall% a f!nction of the initial perforance le,el e2pectation and percei,ed

perforance relati,e to those e2pectations+ Cons!er tends to e,al!ate their wisdo on the

p!rchase of that partic!lar prod!ct+ This can res!lt to cons!er e2periencin post p!rchase

dissatisfaction+ &f the cons!er.s percei,ed perforance le,el is 'elow e2pectation and fail to

eet satisfaction this will e,ent!all% ca!se dissatisfaction$ and so the 'rand and: or the o!tlet

will not 'e considered '% the cons!er in the f!t!re p!rchases+ This iht ca!se the cons!er to

initiate coplaint 'eha,ior and spread neati,e word#of#o!th concernin that partic!lar

prod!ct+


&f she decided to '!% a !ltiedia phone she will tr% to copare the 4!alit% of !sic

it pro,ides and pict!res ta-en if the% eet her e2pectations+ &f she will find that her e2pectation

are eet she will 'e satisfied$ if she fo!nd that there are ore additional feat!res that she did not

e2pect this o'ile phone to ha,e$ she will 'e delihted$ otherwise she will 'e dissatisfied+

#onclusion :'

0e can see ip!lse 'eha,io!r do not ha,e a place if '!%ers 'eha,ior follow s!ch

s%steatic se4!ence+ A st!d% cond!cted in ,ario!s 'randed retail o!tlets in 5 etro cities in &ndia

shows 567 of all sales are act!all% !nplanned p!rchases+ This is wh% the st!d% of ip!lse

p!rchase in &ndian conte2t is so iportant+

Maslo6As ?ierarchy of )eeds :'




A'raha Maslow hierarch% of needs theor% sets o!t to e2plain what oti,ated indi,id!als

in life to achie,e+ ?e set o!t his answer in a for of a hierarch%+ ?e s!ests indi,id!als ai to

eet 'asic ps%choloical needs of h!ner and thirst+ 0hen this has 'een et the% then o,e !p

to the ne2t stae of the hierarch%$ safet% needs$ where the priorit% la% with 1o' sec!rit% and the

-nowin that an incoe will 'e a,aila'le to the re!larl%+ Social needs coe in the ne2t le,el

of the hierarch%$ the need to 'elon or 'e lo,ed is a nat!ral h!an desire and people do stri,e for

this 'elonin+ Estee need is the need for stat!s and reconition within societ%$ stat!s

soeties dri,es people$ the need to ha,e a ood 1o' title and 'e reconised or the need to wear

'randed clothes as a s%'ol of stat!s+

Self#act!alisation the realisation that an indi,id!al has reached their potential in life+ The

point of self#act!alisation is down to the indi,id!al$ when do %o! -now %o! ha,e reached %o!r

point of self#f!lfilent3




B!t how does this concept help an oranisation tr%in to ar-et a prod!ct or ser,ice3

0ell as we ha,e esta'lished earlier within this we'site$ ar-etin is a'o!t eetin needs and

pro,idin 'enefits$ Maslows concept s!ests that needs chane as we o alon o!r path of

stri,in for self#act!alisation+ S!perar-et firs de,elop ,al!e 'rands to eet the ps%choloical

needs of h!ner and thirst+ ?arrods de,elops prod!cts and ser,ices for those who want ha,e et

their estee needs+ So Maslows concept is !sef!l for ar-eters as it can help the !nderstand

and de,elop cons!er needs and wants+

Types Of uying ehavior :'

1. #omple, buying behavior: Cons!ers !nderta-e cople2 '!%in 'eha,ior when the%

are hihl% in,ol,ed in a p!rchase and percei,e sinificant differences aon 'rands+

Cons!ers a% 'e hihl% in,ol,ed when the prod!ct is e2pensi,e$ ris-%$ p!rchased

infre4!entl%$ and hihl% self#e2pressi,e+ T%picall%$ the cons!er has !ch to learn a'o!t

the prod!ct cateor%+

$or e,ample$ a personal cop!ter '!%er a% not -now what attri'!tes to consider+

Man% prod!ct feat!res carr% no real eanin/ a 8enti! 8ro chip$ s!per GA

Research Report on Impulse Buying Page 1;



resol!tion$ or es of RAM+ This '!%er will pass thro!h a learnin process$ first

de,elopin 'eliefs a'o!t the prod!ct$ then attit!des$ and then a-in a tho!htf!l

p!rchase choice+ Mar-eters of hih#in,ol,eent prod!cts !st !nderstand the

inforation#atherin and e,al!ation 'eha,ior of hih#in,ol,eent cons!ers+ The%

need to help '!%ers learn a'o!t prod!ct#class attri'!tes and their relati,e iportance$ and

a'o!t what the copan%s 'rand offers on the iportant attri'!tes+ Mar-eters need to

differentiate their 'rands feat!res$ perhaps '% descri'in the 'rands 'enefits !sin print

edia with lon cop%+ The% !st oti,ate store salespeople and the '!%ers

ac4!aintances to infl!ence the final 'rand choice+

(. 3issonance'reducing behavior: *issonance#red!cin '!%in 'eha,ior occ!rs when

cons!ers are hihl% in,ol,ed with an e2pensi,e$ infre4!ent$ or ris-% p!rchase$ '!t see

little difference aon 'rands+ For e2aple$ cons!ers '!%in carpetin a% face a

hih#in,ol,eent decision 'eca!se carpetin is e2pensi,e and self#e2pressi,e+ 9et '!%ers

a% consider ost carpet 'rands in a i,en price rane to 'e the sae+ &n this case$

'eca!se percei,ed 'rand differences are not lare$ '!%ers a% shop aro!nd to learn what

is a,aila'le$ '!t '!% relati,el% 4!ic-l%+ The% a% respond priaril% to a ood price or to

p!rchase con,enience+

After the p!rchase$ cons!ers iht e2perience postpurchase dissonance (after#

sale discofort) when the% notice certain disad,antaes of the p!rchased carpet 'rand or

hear fa,ora'le thins a'o!t 'rands not p!rchased+ To co!nter s!ch dissonance$ the

ar-eters after#sale co!nications sho!ld pro,ide e,idence and s!pport to help

cons!ers feel ood a'o!t their 'rand choices

0. ?abitual buying behavior: ?a'it!al '!%in 'eha,ior occ!rs !nder conditions of low

cons!er in,ol,eent and little sinificant 'rand difference+ For e2aple$ ta-e salt+

Cons!ers ha,e little in,ol,eent in this prod!ct cateor%Pthe% sipl% o to the store

and reach for a 'rand+

Research Report on Impulse Buying Page 1<



&f the% -eep reachin for the sae 'rand$ it is o!t of ha'it rather than stron 'rand

lo%alt%+ Cons!ers appear to ha,e low in,ol,eent with ost low#cost$ fre4!entl%

p!rchased prod!cts+

&n s!ch cases$ cons!er 'eha,ior does not pass thro!h the !s!al 'elief#attit!de#

'eha,ior se4!ence+ Cons!ers do not search e2tensi,el% for inforation a'o!t the

'rands$ e,al!ate 'rand characteristics$ and a-e weiht% decisions a'o!t which 'rands to

'!%+ &nstead$ the% passi,el% recei,e inforation as the% watch tele,ision or read

aaines+ Ad repetition creates brand familiarity rather than brand

conviction. Cons!ers do not for stron attit!des toward a 'randH the% select the 'rand

'eca!se it is failiar+ Beca!se the% are not hihl% in,ol,ed with the prod!ct$ cons!ers

a% not e,al!ate the choice e,en after p!rchase+ Th!s$ the '!%in process in,ol,es 'rand 'eliefs fored '% passi,e learnin$ followed '% p!rchase 'eha,ior$ which a% or a%

not 'e followed '% e,al!ation+

Beca!se '!%ers are not hihl% coitted to an% 'rands$ ar-eters of low#

in,ol,eent prod!cts with few 'rand differences often !se price and sales prootions to

sti!late prod!ct trial+ &n ad,ertisin for a low#in,ol,eent prod!ct$ ad cop% sho!ld

stress onl% a few -e% points+ is!al s%'ols and iaer% are iportant 'eca!se the% can

'e ree'ered easil% and associated with the 'rand+ Ad capains sho!ld incl!de hih

repetition of short#d!ration essaes+ Tele,ision is !s!all% ore effecti,e than print

edia 'eca!se it is a low#in,ol,eent edi! s!ita'le for passi,e learnin+ Ad,ertisin

plannin sho!ld 'e 'ased on classical conditionin theor%$ in which '!%ers learn to

identif% a certain prod!ct '% a s%'ol repeatedl% attached to it+

Mar-eters can tr% to con,ert low#in,ol,eent prod!cts into hiher#in,ol,eent

ones '% lin-in the to soe in,ol,in iss!e+ 8rocter Ga'le does this when it lin-s

Crest toothpaste to a,oidin ca,ities+ Or the prod!ct can 'e lin-ed to soe in,ol,in

personal sit!ation+ NestlQ did this in its series of ads for Tasters Choice coffee$ each

consistin of a new soap#opera#li-e episode feat!rin the e,ol,in roantic relationship

'etween two neih'ors+ At 'est$ these strateies can raise cons!er in,ol,eent fro a

Research Report on Impulse Buying Page (@



low to a oderate le,el+ ?owe,er$ the% are not li-el% to propel the cons!er into hihl%

in,ol,ed '!%in 'eha,ior+

2. !ariety' see7ing buying behavior: &t occ!rs in sit!ations where there are low#

in,ol,eent p!rchases '!t sinificant differences in 'rands+ & this sit!ation$ rather than

enae in lenth% pre#p!rchase s!r,e%s$ cons!ers$ if c!rio!s a'o!t a new 'rand or

dissatisfied cons!er with the prod!ct choice$ enae in switchin to another 'rand+ &n

s!ch sit!ations the ad,ertisin approach differs across firs+ Mar-et leaders often want to

enco!rae ha'it!ation and therefore eplo% conditionin strateiesH whereas challener

firs rel% instead on ind!cin cons!ers to switch and therefore eplo% ore coniti,e

approachesH these appeal to cons!ers on the 'asis of reasons for a-in the switch+

Introduction B Impulse or MythC

0h% do & alwa%s find % other and % nephew at Bi'aar$ when & cant find the

at hoe3 The reason is not that the distance is less than a -iloeter+ M% o$ an ideal pre% for

toda%s retail forat and % nephew at the ae of three is deeed to 'e a cons!er in his ownriht pla%s cat and o!se with % father.s liited salar%+ E,er% tie she p!rchased soethin

'i$ she coes !p with her silin face to console e and % dad with a sae old e2c!se+ She

had one for soe rocer% ites and end !p '!%in a new OTG+ E,er% tie whate,er proises

she ade to e$ she end !p repeated the sae stor% onth after onth+ This introspection of %

own fail% oti,ates e for the retrospection of others+

&p!lse '!%in happens when %o! et trapped in a '!ild!p sit!ation propaated '%

effecti,e retail co!nication or o!t of the ind disco!nt offers and %o! '!% witho!t thin-in

!ch a'o!t it+ &p!lse ites can 'e an%thin$ a new prod!ct$ saples or well#esta'lished

prod!cts at s!rprisin low prices+ Research cond!cted '% ni,ersit% of California trac-s J$

p!rchases ade '% 6$ c!stoers who were enaed in a shoppin trip in S re,eals that @<7

of their p!rchases were !nplanned+ A siilar research cond!cted in " '% 8oint of 8!rchase

Research Report on Impulse Buying Page (1



Ad,ertisin &nternational (8O8A&) re,ealed that 7 of the p!rchase decisions were ta-en on

spot in the store+

&p!lse '!%in is s!ch a s!dden phenoenon where instinct pla%s a predoinant role+

A c!stoer a-es a p!rchase witho!t proper plannin or prior hoewor-+ This is the scenario

that ar-eter and retailer tr% to capitalie and harness+

The% pro,ide s!ch ip!lsi,e sti!li which are pac-aed inno,ati,el% cl!''ed with

'asic needs and wants+ &n the nae of instant ratification and lor% c!stoers are often

,ictiied+ &nstincts are dri,en '% eotions and eotions are dri,en '% attit!de and perception+

Impulsive uying :'

=&p!lse '!%in has 'een considered a per,asi,e and distincti,e phenoenon in the

Aerican lifest%le and has 'een recei,in increasin attention fro cons!er researchers and

theorists (9o!n Fa'er$ $ p+D)>+ *espite the neati,e aspects of the ip!lse '!%in

'eha,ior fro past research$ definin ip!lsi,e 'eha,ior as an irrational 'eha,ior (Ainslie$

D5H Le,%$ D@H Roo- Fisher$ D5H Solnic-$ "annen'er$ Ec-eran$ 0aller$ D<)$

res!ltin fro a lac- of 'eha,ioral control (Le,%$ D@H Solnic- et al+$ D<)$ ip!lse p!rchases

acco!nt for s!'stantial sales across a 'road rane of prod!ct cateories (Bellener at al$ D<H

Co'' ?o%er$ D<@H ?an$ Moran$ "otsiop!los$ "an#8ar-$ DDH "ollat 0illet$ D@H

Roo- Fisher$ D5H 0ein'er Gottwald$ D<)+ A st!d% fo!nd that ip!lse p!rchases

represented 'etween 7 and @7 of all departent store p!rchases (Bellener et al+$ D<)+

Roo- and ?och (D<5) assert that ost people ha,e e2perienced an ip!lse p!rchase+ Other

research findins s!pport this assertion re,ealin alost 7 of respondents ha,e ade rocer%

p!rchases on ip!lse occasionall% (0elles$ D<@)$ and 'etween J7 and 57 of all p!rchasescan 'e classified '% the '!%ers thesel,es as ip!lse p!rchases (Bellener et al+$ D<H Co''

?o%er$ D<@H ?an et al+$ DDH "ollat 0illett$ D@)+

Earl% st!dies on ip!lse '!%in were ore concerned with the definitional iss!es

distin!ishin ip!lse '!%in fro non#ip!lse '!%in and attepted to classif% thet%pes of

Research Report on Impulse Buying Page ((



ip!lse '!%in into one of se,eral s!'#cateories (Bellener et al+$ D<H "ollat 0illet$ D@H

Stern$ D@)$ rather than to !nderstand ip!lse '!%in as a trait of cons!er '!%in 'eha,ior+

Therefore$ this approach enerated a theor% that inores the 'eha,ioral oti,ations of ip!lse

'!%in for a lare ,ariet% of prod!cts and$ instead$ foc!ses on a sall n!'er of relati,el%

ine2pensi,e prod!cts+ ?owe,er$ this t%pe of approach did not pro,ide s!fficient e2planations as

to wh% so an% cons!ers appear to act on their '!%in ip!lse so fre4!entl%+

Therefore$ researchers 'ean to re#foc!s attention on ip!lse '!%in 'eha,ior and to

in,estiate the 'eha,ioral oti,ations of ip!lse '!%in (Co'' ?o%er$ D<@H ?a!san$ H

8iron$ DDH Roo-$ D<H Roo- Gardner$ DJH Roo- Fisher$ D5H 0e!n$ Iones$ Bett%$

D<)+

The per,asi,eness of ip!lse '!%in$ e,en for relati,el% e2pensi,e prod!cts$ led

researchers to loo- at ip!lse '!%in as an inherent indi,id!al trait$ rather than a response to

ine2pensi,e prod!ct offerins (Co'' ?o%er$ D<@H Roo-$ D<)+ Recentl%$ researchers appear

to aree that ip!lse '!%in in,ol,es a hedonic or affecti,e coponent (8iron$ DDH 8!ri$ D@H

Roo- Fisher$ D5H 0enn et al$ D<)+ Toda%.s D6research s!ests that ip!lse '!%in

'eha,ior is !ch ore cople2 than pre,io!sl% concept!aliedH that this 'eha,ior stes fro

the desire to satisf% !ltiple needs that !nderlie an% t%pes of '!%in 'eha,ior (?a!san$

)+

Impulse B The Missing 9in7 :'

&p!lse '!%in alters the noral decision a-in od!les in cons!ers ental space

and rapt!re all cons!er 'eha,io!r ph%losophies+ Cons!er ental acco!ntin is a process '%

which a c!stoer codes$ cateorise and e,al!ate the financial o!tcoe of a choise+ &p!lse

!psets all the loical se4!ence of the cons!ers actions and then is replaced with an irrational

oent of self ratification and hence alterin the ae old tie#tested theories+ &p!lse ites

appeal to the eotional side of cons!ers+ Soe ites 'o!ht on ip!lse are not considered






satisfaction is ,er% iportant+ So the infl!encin interferences of s!ch factor cannot 'e neated+

&p!lse is not a S disease+

For half a cent!r% there has 'een a series of in,estiation cond!cted '% cons!er

researcher to in,estiate epirical e,idence of ip!lse$ e,en tho!h there hasnt 'een an%

sinificant 'rea- thro!h+

8rof+ *ennis 0 Roo- and 8rof+ Ro'ert I Fisher of ni,ersit% Chicao in the %ear D5

thro!h one of their article tr% to esta'lish a concept!al and epirical fraewor- of cons!er

&p!lse+ Theirs research tried to -not a relationship 'etween the cons!ers ip!lsi,eness trait

and associated '!%in 'eha,iors attri'!tes li-e deoraphic and ps%choloical factors+ The ost

proinent seent of the st!d% is s!ch relation 'ecoes sinificant onl% when cons!ers

considered that s!ch ip!lse is appropriate+ &p!lse is so an% occasions are followed '%

dissonance red!cin 'eha,ior+ Till date there has not 'een an% sinificant research on the

ip!lse 'eha,ior of &ndian cons!ers on the conte2t of retail re,ol!tion and which is alost

si!ltaneo!s and coincidental +

Impulse and Perception :'

8erception is a process '% which the indi,id!al selects$ oranies and interprets sti!li

into a eanin and coherent pict!re of the world+ The c!stoer who is e2posed to an% of s!ch

ar-etin sti!li or an ad,ertiseent$ the first refle2 that is initiated in the c!stoers ind is

-nown as sensation+ Sensation is recei,ed '% the fi,e senses of the c!stoer+ The attri'!tes that

trier sensation in the c!stoers ind can 'e prod!ct feat!re$ price$ and prootional

attracti,eness+ Opti! 4!ant! of sensational i2 that inites instinct is the a'sol!te

threshold+ This a'sol!te threshold !st enerate soe eotional eleent that will e,ent!all%

res!lt into ip!lse+

Impulse and ttitude :'

Research Report on Impulse Buying Page (/



Attit!de is a cople2 ental state of readiness$ oranied thro!h e2perience$ creatin a

d%naic infl!ence on the indi,id!als response to all o'1ects and sit!ations to which it is related+

Fish'ein e2tended odel Theor% of reasoned action e2plains the interrelationships of

ps%choloical factors and e2ternal factors that initiate p!rchase 'eha,ior+

SelfBelief E,al!ation U Attit!de

Self 8erception Referral Opinion U S!'1ecti,e Nor

Attit!de S!'1ecti,e Nor U &ntention to perfor action

The t6isted from of this theory in terms of impulse purchase H

Self Belief &nstant E,al!ation (opti! sensation) U Attit!de

Self 8erception Self Opinion (a'sol!te threshold) U S!'1ecti,e Nor

Attit!de S!'1ecti,e Nor U perfor ip!lse action

Impulse and Promotions :'

8rootions and retail erchandisin is the fearsoe tool of eneratin sensation+ The

&ndia Retail wa,e has s!ppleented the rowth of Sales 8rootion+ More of ad,ertisin one%

is now po!rin into ar-etin and prootion of retail 'rands+ Most s!perar-et shel,es are a

'! with ore proos than erchandise and within the stric-in distance to h!nt a c!stoer+

Cateories incl!de$ rocer% ites$ 1!ices and 'e,eraes$ confectioner%$ leather oods$ cons!er

d!ra'les$ Apparels and 1ewelr% ites read% to aro!sed c!stoers appetite to cons!e+

On the other hand ore and ore retail cons!ers are read% for the 'est 'arain of their

lifetie+ Fro 'oth the frontiers retailer will enerate ip!lse+There can 'e se,eral other reasons

of s!ch retail prootional ania and the% are i,en as follows /#

D+ To 'rea- the cl!tter of rowin n!'er of retail 'rands

+ *eclinin 'rand lo%alt% and c!stoer 'ecoin ore prootional sensiti,e+

J+ Brand proliferation and low top of the ind recall

6+ Tendenc% to o 'ac- to !noranied retail+




Impulse B )o 9oo7ing ac7 :'

&n the idst of s!ch econoic ins!rrection new alls are coin e,er% da% and few

h!ndred ore are coin !p in the ne2t fi,e %ears+ M!ltiple retail forats ha,e spr!n !p across

different cities$ cit% horions are flooded with alls and shoppin cople2es+ More and ore

will penetrate in sei !r'anie and r!ral &ndia e!latin the 0al#Mart odel+

Retail cons!ptions in &ndia are aoth$ close to Rs $D 'illion+ This Rs $D

'illion will e2pect to 'ecoe RsDJ$5D 'illion in the ne2t few %ears+ This is the era of Oranised

retail and which is e2pected to row at 67 for the ne2t fi,e %ears+ &f we o '% the RA&

statistics$ &ndia will witness ip!lse p!rchases ao!ntin to Rs $ 'illion that is eno!h to

electrif% the whole of r!ral &ndia+ &n late D@s &ndia witnessed Green Re,ol!tion$ earl% D<s

witnessed 0hite Re,ol!tion$ Mall Re,ol!tion has 1!st 'e!n+ A,erae &ndian$ as cons!ers

'ecoe richer$ %o!ner$ ore a'itio!s and instincti,e than 'efore+ &ndian cons!ers are on the

f!ll stride in ters of their cons!ption le,els that can s!rpass S cons!ption le,el in ne2t

%ears+

&n the past decade the &ndian deoraphic pattern has chaned not onl% in ters of

incoe '!t also in ters of socio#c!lt!ral attri'!tes and fail% lifec%cles+ The do!'le incoes

'ecoin a nor in !r'an areas$ increased ad,ertisin and sales prootion ha,e ade '!%in

ore achie,a'le and e2hilaratin to a larer portion of the pop!lation+ &n this conte2t no'od%

dares to as- weather s!ch prootional offer infl!ence ip!lse 'eha,ior aon !r'an c!stoer

or not+ Thro!h % diin!ti,e research endea,or & wo!ld li-e foc!s whether toda%s !r'an class

are carr%in the sae western s%ndroe &p!lse and are 'ecoin eas% pre% to the retail

'rands+

?= P"OP9" 4= IMP49*I!"9= C

• Soe sa% that it acts as a stress relie,er

• 8ercei,e it as the 'est '!% of that tie

• 8eople are capti,ated as an a!dience




• Cons!ers ha,e e2tra one% in their '!det

• Brea-thro!h

recent poll game reveals that more than <@D of people have acted impulsively.

?uman beings are high'class than animalsE but are also affected and led by emotion.

They become e,cited 6hen the hormone is inspired. 9i7e6iseE they are frustrated 6hen

6or7 or life is obstructed. They al6ays e,pect ne6 mattersE 6hich is entirely different

6ith other creatures. ?o6everE 6hen the endeavor collapses in front of harsh realities

or the final result is different from their original plansE they al6ays act impulsively.

*ome people succeedE but alsoE some failed. hat follo6s behind impulse may be pain

and regret. =et if you as7 me 6hether to behave 6ithout considerationE I have to admit

as 6ell. 9ife that is planned regularly is not meaningful. Inhibition of natural impulses

may cause psychological problemsE 6hich has been proved by many events. *o 6hat 6e

need to do is to be balanced bet6een reason and emotion.

omen are much easier than men to become impetuous. They smile 6hile

gettinne6 content &obE move 6hile 6atching the movieE and also cry 6hile encountering

failure. ny6ayE the biggest similarity almost on every 6oman is they e,pect to be

stylish at any time. They loo7 at their 6ardrobes regularlyE trying to find 6hat is

lac7ing. orld'reno6ned brands are busy in focusing on 6omenAs clothesE handbags

and shoes. It becomes natural to see a 6oman spend most of her hard'earned money in

the latest styles of attires or handbags. hen 9ouis !uittonE >ucciE #hanel and Prada

6al7 into the realm of top fashionE so many 6omen may brea7 their credit cards to

o6n a piece from them. $e6 females can re&ect an elegant F stylish product. "ven

though they brought a limited amount of money to shoppingE they al6ays stretch their

hands to ban7 cards. #onfronting fashionE every 6oman is impulsiveG

omen get content if receiving the hottest styles. They splurge their stylish

loo7s. ?o6everE 6hat seems unfortunate is vogue hits people in an incredible speed. e

6ill never 7no6 6hat it changes in the ne,t minute.

hen the ne,t trend is stirred upE previous most popular style costing people a

hefty high price becomes nothing e,pect an out'dated item that 6ill have to fad from

fashion 6orld. omen begin to doubt previous impulse for 6hether it is valuable.

Research Report on Impulse Buying Page (;



$ashion is an endless 6ayE 6hich e,tends to every corner of the 6orld. hat can not be

predicted is 6hich 6ay it tends to advance at the ne,t turn. $or those of you 6ho follo6

all things and everything fashion is relatedE this is a dangerous &ourney. *o turn bac7

and harmoniHe impulse 6ith senseG

MP I994*TRTI)> IMP49*" *?OPPI)> :'

#ategories of impulse buying :'

Research Report on Impulse Buying Page (<



The !nderstandin of ip!lse p!rchasin was reatl% ipro,ed thro!h Sterns (D@)

identification of fo!r distinct classifications of ip!lse p!rchasin/ planned$ p!re$reinder and

s!estion ip!lse p!rchasin+ &p!lse '!%in or as soe ar-eters prefer to call it !nplanned

p!rchasin is another cons!er p!rchasin pattern+ As the ter iplies$ the p!rchase was not

specificall% planned+ The process is rather widespread and a% ha,e sinificant iplications for

the ar-eter

&t is diffic!lt for ar-eters to aree on a definition of ip!lse '!%in+ Fo!r t%pes of

ip!lse p!rchases ha,e 'een cited/

1- Pure impulse: A no,elt% or escape p!rchase which 'rea-s a noral '!%in pattern+

(- *uggestion impulse: A shopper ha,in no per,io!s -nowlede of a prod!ct sees the ite for

the first tie and ,is!alies a need for it+

0- Reminder impulse: A shopper sees an ite and is reinded that the stoc- at hoe needs

replenishin or recalls$ an ad,ertiseent or other inforation a'o!t the ite and a per,io!s

decision to p!rchase

+

6) Planned impulse: A shopper enters the store with the e2pectations and intention of a-in

soe p!rchasers on the 'asis of price specials$ co!pons$ and the li-e+

0hile ost ar-etin research has treated ip!lse p!rchasin sipl% as !nplanned

soe aintain that it is an traditional process in which the !re to ratif% an ip!lse tri!phs

o,er the rational parts of the ind+ &n this ,iew fi,e critical eleents see to distin!ish

ip!lsi,e fro non ip!lsi,e cons!er 'eha,ior+ First the cons!er has a s!dden and

spontaneo!s desire to act$ in,ol,in a ar-ed di,erence fro per,io!s 'eha,ior+ Second$ this

s!dden desire to '!% p!ts the cons!er in a state of ps%choloical dise4!ili'ri! where he feels

teporaril% o!t of control+ Third$ the cons!er a% e2perience ps%choloical conflict and

str!le weihtin the iediate satisfaction aainst the lon ter conse4!ences of the

p!rchase+ Fo!rth$ cons!er red!ces their coniti,e e,al!ation of prod!ct feat!res+ And Fifth

cons!ers often '!% ip!lsi,el% witho!t an% reard for f!t!re conse4!ences+




&t has 'een s!ested that the e2planations of wh% cons!ers enae in s!ch

ip!lsi,e '!%in are that the% do not realie the conse4!ences of their 'eha,ior that the% are

copelled '% soe force to '!% e,en tho!h the% realie the dire conse4!ences and that in spite

of the !ltiate pro'les of '!%in$ the% are ore intent on f!lfillin present satisfaction+

?ow does cons!er feel after ip!lse p!rchasin3 The st!d% indicates that ip!lse

'!%in is an effecti,e tactic for 'rea-in o!t of an !ndesira'le ood state s!ch as depression$

fr!stration or 'oredo$ Ninet% percent of respondents felt soewhat to e2treel% happ% after

s!ch p!rchases indicatin a per,asi,e iediate ratification fro it+ There was soe

a'i,alence howe,er with alost 6 percent soewhat to e2treel% !ilt% o,er$ their ost

recent ip!lse p!rchase+

The ",tent Of Impulse uying :'

There are se,eral st!dies which ha,e indicated the sinificant and rowin trend toward

!nplanned p!rchasin$ ?ere are soe of the concl!sions on the e2tent of ip!lse '!%in /#

1- More than JJ percent of all p!rchase in ,ariet% and dr!stores are !nplanned+

(- One half of '!%in decisions in s!perar-ets are !nplanned

0- Thirt% nine percent of all departent store shopper and @ per cent of all disco!nt store

shoppers p!rchased at least one ite on a !nplanned 'asis+

These stateents are soewhat decei,in in that no distinction is ade 'etween the

,ario!s -inds of ip!lse p!rchases possi'le for cons!ers+ Altho!h an% cons!ers a% not

!se a shoppin list$ their prod!ct and 'rand p!rchases are certainl% rational (as & ha,e defined it)

and ost pro'a'l% fit into the reinder and planned ip!lse cateories rather than the p!re and

s!estion ip!lse t%pes+

The iportant point for ar-eters is that there is a lare ao!nt of decision a-in

occ!rrin at the point of p!rchase+ Th!s$ as far as the retail decision a-er is concerned ip!lse

'!%in can 'e praaticall% defined as p!rchasin res!ltin fro a decision to '!% after the

shopper has entered the store (or perhaps sipl% t!rned on their tele,ision at hoe to shop ,ia

ca'le)

#?R#T"R*TI#* O$ IMP49*I!" 4=I)> :'




nplanned$ Spontaneo!s and intense !re to '!% the p!rchaser often inorin the

conse4!ences+

0itho!t !ch prior -nowlede of the prod!ct or intension to '!%+

A -ind of eotional and irrational p!rchase often for reasons li-e f!n$ fantas% and social

and econoic pleas!re

Cons!er often reret their p!rchase after p!rchasin

Roo- (D<) identified ip!lse '!%in 'eha,ior with descriptors s!ch as a

spontaneo!s$ intense$ e2citin$ !re to '!% with the p!rchaser often inorin the

conse4!ences+ 0hile ore recent research in this area disc!sses ip!lse '!%in as a trait

rather than as a classification of a p!rchase decision$ researchers aree that cons!ers ,ar%

in their ip!lse#'!%in tendenc% (8!ri$ D@H Roo- Fisher$ D5)+ 0itho!t ha,in prior

inforation of a new prod!ct or intention to p!rchase a certain ite$ a cons!er is e2posed

to sti!li$ s!estin that a need can 'e satisfied thro!h the p!rchase+ 9o!n and Fa'er

() identif% se,eral different t%pes of internal states and en,ironental:sensor% sti!li

that ser,e as c!es for trierin ip!lse '!%in+ &nternal c!es incl!de respondents. positi,eand neati,e feelin states+ En,ironental:sensor% c!es encopass atospheric c!es in

retail settins$ ar-eter#controlled c!es$ and ar-etin i2 sti!li (9o!n Fa'er$ )

)ormative "valuations $or Impulse uying ehavior :'

8ast research shows that planned '!%in 'eha,ior res!lts in acc!rate decisions$ '!t

ip!lsi,e 'eha,ior res!lts in decision errors$ (?alpern$ D<H Iohnson#Laird$ D<<)

increasin possi'ilities of neati,e conse4!ences (Co'' ?o%er$ D<@H Roo-$ D<H0ein'er Gottwald$ D<)+ These neati,e e,al!ations of ip!lse '!%in 'eha,ior

possi'l% ste fro ps%choloical st!dies of ip!lsi,eness that characterie ip!lsi,e

'eha,ior as a sin of iat!rit% res!ltin in a lac- of 'eha,ioral control (Le,%$ D@H

Solnic- et al+$ D<) or as an irrational$ ris-%$ and wastef!l 'eha,ior (Ainslie$ D5H

Le,%$D@H Solnic- et al+$ D<)+




?owe,er$ soe research on ip!lse '!%in 'eha,ior indicates that ip!lse '!%ers do

not consider their ip!lsi,e p!rchases as wron and report e,en fa,ora'le e,al!ations of

their 'eha,iors+ Specificall%$ in Roo-.s and Fisher.s (D5) st!d% of =Trait and norati,e

aspects of ip!lsi,e '!%in 'eha,ior>$ a relati,el% sall n!'er of respondents (onl% 7)

reported feelin 'ad a'o!t their ip!lse '!%in$ '!t a lare n!'er of respondents (6D7)

reported that the% act!all% felt ood a'o!t their ip!lse p!rchases+ One e2planation for this

phenoenon is that cons!ers '!% prod!cts for a ,ariet% of non#econoic reasons$ s!ch as

f!n$ fantas%$ and social or eotional pleas!re+ Soe cons!ers e,en see shoppin as retail

therap%$ as a wa% of ettin o,er the stresses of a wor-in da% or sipl% a f!n da% o!t

(?a!san$ ) s!pportin the hedonic odification for ip!lse '!%in +

P9))"3 !* IMP49*I!" 4=I)> :'




!isual Merchandising :'

is!al erchandisin$ or ,is!al presentation$ is the eans to co!nicate a

store:copan%.s fashion ,al!e and 4!alit% iae to prospecti,e c!stoers+ =The p!rpose of

,is!al erchandisin is to ed!cate the c!stoer$ to enhance the store:copan%.s iae$ and

to enco!rae !ltiple sales '% showin apparel toether with accessories> (Frins$ D$ p+

J6)+ Therefore$ each store:copan% tries to '!ild and enhance its iae and concept

thro!h ,is!al presentations$ which appeal to shoppers and !ltiatel% transfor the into

c!stoers '% '!ildin 'rand lo%alt% and enco!rain c!stoers. '!%in 'eha,iors+ is!al

erchandisin is defined as =the presentation of a store:'rand and its erchandise to the

c!stoer thro!h the teawor- of the store.s ad,ertisin$ displa%$ special e,ents$ fashion

coordination$ and erchandisin departents in order to sell the oods and ser,ices offered




'% the store:copan%> (Mills$ 8a!l$ Mooran$ D5$ p+ )+ is!al erchandisin ranes

fro window:e2terior displa%s to interior displa%s incl!din for displa%s and floor:wall

erchandisin as well as prootion sinae+ &t also 'roadl% incl!des ad,ertisin and

'rand:store loo (Mills et al$ D5)+ &n this st!d%$ howe,er$ onl% window displa% and in#store

displa% coprise of for:anne4!in displa%$ floor erchandisin and prootional sinae

were in,estiated+

!isual Merchandising in Relation to Impulse uying ehavior :'

&n#store 'rowsin a% 'e a lin- 'etween internal and e2ternal factors$ as an iportant

coponent in the ip!lse '!%in process as well as a lin- 'etween cons!ers. ip!lse

'!%in 'eha,ior and retail settins incl!din e2terior and interior displa%+ =&nstore 'rowsin

is the in#store e2aination of a retailer.s erchandise for recreational and inforational

p!rposes witho!t an iediate intent to '!%> (Bloch$ Ridwa%$ Sharrell$ D<$ p+D6)+

Iar'oe and Mc*aniel (D<) fo!nd c!stoers who 'rowsed in a store ade ore !nplanned

p!rchases than non#'rowsers in a reional all settin+ As a c!stoer 'rowses loner$

she:he will tend to enco!nter ore sti!li$ which wo!ld tend to increase the li-ehood of

e2periencin ip!lse !res+ This s!pports Stern.s (D@concept!aliation of ip!lse '!%in

as a response to the cons!er.s e2pos!re to in#store sti!li+ Shoppers a% act!all% !se a

for of in#store plannin to finalie their intentions (Roo-$ D<)+

The store sti!li ser,es as a t%pe of inforation aid for those who o to the store

witho!t an% predeterination of what the% need or '!%$ and once the% et into the store$

the% are reinded or et an idea of what the% a% need after loo-in aro!nd the store+ &n

other words$ cons!er.s ip!lse '!%in 'eha,ior is a response ade '% 'ein confronted

with sti!li that pro,o-e a desire that !ltiatel% oti,ate a cons!er to a-e an !nplanned

p!rchase decision !pon enterin the store+ The ore the store sti!li$ s!ch as ,is!al

erchandisin$ ser,es as a shoppin aid$ the ore li-el% the possi'ilit% of a desire or need

arisin and finall% creatin an ip!lse p!rchase (?an$D<H ?an et al+$ DD)+ The




iportance of window displa% in relation to cons!ers. '!%in 'eha,ior has recei,ed

inial attention in the literat!re+ ?owe,er$ since a cons!er.s choice of a store is

infl!enced '% the ph%sical attracti,eness of a store (*arden at al+$ D<J)$ and the first

ipressions of the store iae is norall% created at the faVade le,el$ it can 'e s!ested

that window displa% a% infl!ence$ at least to soe deree$ cons!ers. choice of a store

when the% do not set o!t with a specific p!rpose of ,isitin a certain store and p!rchasin a

certain ite+ The initial step to ettin c!stoers to p!rchase is ettin the in the door+

$actors%#ues influencing impulse buying :'

Few recent st!dies in,estiated the factors that affect ip!lse '!%in+ Researchers ha,e

s!ested that internal states and en,ironental:e2ternal factors can ser,e as c!es to trier

cons!ers. ip!lse 'eha,ior to p!rchase+ Research shows that sit!ational factors ha,e

practical and theoretical sinificance in that an% decisions are ade at the point#of#

p!rchase (Co'' ?o%er$ D<@) as a reflection of =low in,ol,eent> decision#a-in

strateies (?o%er$ D<6)+ The research on sit!ational infl!ence can 'e descri'ed as

e2ainin the relationship aon shopper characteristics and the feat!res of retailin or

point#of#p!rchase sit!ations+ Shopper characteristics iht incl!de in,ol,eent (Sith

Cars-%$ D@)$ attit!de (Reid Brown$ D@)$ and ethnicit% (Crispel$ D)$ while the

retailin feat!res co!ld incl!de o!tlet sie (Owen$ D5)$ retail forat (Fernie$ D@H Fernie

Fernie$ D)$ and store personalit% (A'ras$ D@H B!rns$ D)+

I)T"R)9 $#TOR* :'

• Mood of the indi,id!al$ positi,e ood triers ip!lsi,e '!%in




• Needs/ ip!lsi,e '!%in is ore a need than a want

• ?edonic pleas!re/ potential entertainent and eotional worth of shoppin

• Coniti,e:affecti,e

Affect or ood has 'een identified as a ,aria'le that infl!ences ip!lse p!rchasin

(Gardner Roo-$ D<<H Roo-$ D<H Roo- Gardner$ DJ)+ Roo- and Gardner (DJ)

fo!nd that <57 of their s!r,e% respondents indicated a positi,e ood wo!ld 'e ore

constr!cti,e to ip!lse '!%in than a neati,e ood+ Respondents stated that$ in a positi,e

ood$ the% had an !nconstrained feelin$ the desire to reward thesel,es$ and hiher ener%

le,els+ 0ein'er and Gotwald (D<) fo!nd that ip!lse '!%ers e2hi'ited reater feelins of

deliht$ enth!sias$ and 1o% while *ono,an and Rossiter (D<) fo!nd that pleas!re was

positi,el% associated with a li-ehood of o,erspendin+ A n!'er of st!dies in cons!er

'eha,ior show that ip!lse '!%in satisfies hedonic desires (8iron$ DDH Roo-$ D<H

Thopson$ Locander$ 8ollio$ D)+ &ndi,id!al cons!ers ip!lse '!%in 'eha,ior is

correlated with their desires to f!lfill hedonic needs$ s!ch as f!n$ no,elt% and s!rprise

(?irschan$ D<H ?ol'roo- ?irschan$ D<)+ &n addition$ eotional s!pport needs a%

also 'e satisfied '% the social interaction inherent in the shoppin e2perience+ For instance$

research findins indicate that cons!ers report feelin !plifted or eneried after ashoppin e2perience (Co'' ?o%er$ D<@H Roo-$ D<) s!pportin the recent concept of

ip!lse '!%in 'eha,ior as a trait oti,ated '% hedonic desire+ The hedonic ,al!e of

shoppin reflects potential entertainent and eotional worth of shoppin (Ba'in$ *arden$

Griffin$ D6)+ &t has 'een s!ested that shoppin witho!t specific intent$ a% 'e ore

sinificant than ac4!isition of prod!cts and can pro,ide a hihl% pleas!ra'le shoppin

e2perience (Maclinnis 8rice$ D<H Sherr%$ D)+ Since the oal of the shoppin

e2perience is to pro,ide satisfaction of hedonic needs$ the prod!cts p!rchased d!rin these

e2c!rsions appear to 'e chosen witho!t prior plannin and represent an ip!lse '!%in

e,ent+

"T"R)9 $#TOR*




• 0indows displa%

• is!al erchandisin

• &n#store for displa%

• 8rootional sinae

• E#coerce

Specific sit!ations and retail settins infl!ence 'oth in#store responses and f!t!re store

choice decisions 'eca!se of the chanin and adopti,e nat!re of e2pectations$ preferences$

and 'eha,ior (?a!san$ )+ For instance$ the findins of *arden et al+.s (D<J) st!d%

showed that cons!ers. 'eliefs a'o!t the ph%sical attracti,eness of a store had a hiher

correlation with a choice of a store than did erchandise 4!alit%$ eneral price le,el$ and

selection+ This s!pports the notion that cons!ers. choice of a store is infl!enced '% the

store en,ironent$ of which ,is!al erchandisin pla%s a ,ital role+ This ,iew is consistent

with Bowers. (DJ) o'ser,ation that people approach$ a,oid$ and create sit!ations in

accordance with their desires+ C!stoers. a,oid or lea,e retail settins that are stressf!l or

o'str!cti,e (Anlin$ Moran$ Stoltan$ D)+ The e2pectation:e2perience of positi,e

feelins enerall% leads to approach responses$ while a,oidance is associated with

e2pectations:e2perience of neati,e o!tcoes (*o,no,an Rissiter$ D<H Mehra'ian

R!ssel$ D6H Saeert 0in-el$ DH Tro%e$ D<5)+ Researchers ha,e s!ested that

,ario!s aspects of retailin en,ironents can infl!ence cons!er 'eha,ior+ "otler (DJ#

D6) asserts the sinificant role of ,ario!s retailin atospherics+ For instance$ !sic and

color ha,e 'een related to cons!er 'eha,ior (Bellii ?ite$ DH Millian$ D<@H 9alch

Spanen'er$ D) s!estin ,is!al erchandisin within the retail settins a%

infl!ence cons!er 'eha,ior as well+




$actors ffecting Impulse uying ehavior :'

Mar-eters ha,e lon reconied the sinificance of ip!lse '!%in+ Epirical st!dies

s!ch as Consumer Buying Habit Studies ( D@5 ) and Drugstore Brand Switching and Impulse

Buying (D@5) ha,e in,estiated the e2tent of !nplanned '!%in in s!perar-ets and dr!stores

and showed how different the incidences of ip!lse p!rchasin are (as cited in 8rasad$

D5)+The incidence of ip!lse '!%in is increasin ainl% 'eca!se cons!ers ha,e accepted

and adapted the ethods of '!%in to certain erchandisin inno,ations and d!e to this

interrelationship of '!%in to erchandisin$ ip!lse '!%in will onl% row sinificantl% (Stern$

D@)+ 0e offer the followin proposition+

Man% researches ha,e 'een carried o!t to st!d% the nat!re of ip!lse '!%in and

,ario!s factors that affect it+ &p!lse '!%in is infl!enced '% a ,ariet% of econoic$ sit!ational$

personalit%$ tie$ location and e,en c!lt!ral factors+ 8re,io!s researches ha,e eas!red the

ip!lse '!%in tendenc% in reards to '!%in =thins> not specif%in prod!ct cateories (Beatt%

and Ferrell$ D<H 8!ri$ D@H Roo- and Fisher$ D5)+ Researches ha,e also 'een cond!cted to

!nderstand the !nderl%in oti,ational factors 'ehind ip!lse '!%in+ Siilarl% researches ha,e

'een cond!cted to st!d% factors that oderate ip!lse '!%in 'eha,ior+ Cons!ers enae in

ip!lse '!%in to satisf% hedonic desires for f!n$ no,elt% and ,ariet%H also ip!lsi,eness is

correlated with cons!er.s desires to f!lfill self estee and self act!aliation needs (?a!san$

)+ Mai$ I!n$ Lant and Leo' (J) fo!nd that indi,id!alist orientation was tr!l% related toip!lse '!%in+ ?a!san () has also s!ested that ore ip!lsi,e cons!ers tend to ,iew

their '!%in decisions as ore la'orio!s+ Cons!ers. norati,e e,al!ations oderate the

relationship 'etween ip!lse '!%in trait and cons!ers. '!%in 'eha,ior (Roo- and Fisher$

D5)+ ?ere norati,e e,al!ation a% 'e !nderstood as cons!ers. 1!dents a'o!t the

appropriateness of a-in an ip!lsi,e p!rchase in a i,en '!%in sit!ation+

Transaction *iHe affecting Impulse uying :-

Stern (D@) has h%pothesied circ!stances that appear to 'e associated with the

occ!rrence of the 'eha,ior+ "ollat and 0illet (D@) !sed two eas!res of transaction sie/

n!'er of different prod!cts p!rchased and the rocer% 'ill+ The% fo!nd o!t that the increase in

sie of the rocer% 'ill and n!'er of p!rchases ade res!lted in an increase in !nplanned

ip!lse p!rchases+ Therefore$ & offer the followin proposition




>ender 3ifferences in Impulse buying :'

Se,eral pre,io!s researches on ip!lse '!%in ha,e paid soe attention to the role

ender pla%s in deterinin this 'eha,ior+ These researches show that en.s and woen.s

shoppin 'eha,io!r differs on an% le,els+ 8eter and Olson (D) disc!ss that en and woen

ha,e 'een fo!nd to process inforation differentl% (as cited in Cole% and B!ress$ J)$ relate

to and ,al!e aterial possessions differentl%$ p!rchase different ites for different reasons

(*ittar$ Beattie and Friese D5H *ittar$ Beattie and Friese$ D@) and approach shoppin tas-

differentl% (Berni$ DH Chier D)+"ollat and 0illet (D@) fo!nd that woen tend to enae

in ore ip!lse '!%in as copared to en+ &t is also ar!ed that woen 'eca!se of their

propensit% to shop ore in eneral$ a-e ore ip!lsi,e p!rchases (*ittar et al +$ D@H Roo-

and ?och$ D<5)+

On the other hand Co'' ?o%er (D<@) stated that woen are ore li-el% to e2hi'it

soe eleent of plannin 'efore enterin the store$ whereas en are ore li-el% to 'e ip!lse

shoppers+ ?a!san () did not find sinificant correlation 'etween ender and ip!lse

'!%in 'eha,ior+

*hopping 9ist and Impulse buying :'

St!dies cond!cted '% "ollat and 0illet (D@) indicated that one of the factors that

affects ip!lse '!%in is the presence of a shoppin list+ This howe,er onl% holds tr!e if the

transaction sie is reater than D5+ 0hen ore than D5 or prod!cts are p!rchased$ shoppers

ha,in a list a-e a saller percentae of !nplanned p!rchases+ ?owe,er$ when less than D5 or

prod!cts are 'o!ht$ the shoppin list does not affect the percentae of !nplanned p!rchases+

This was also st!died and confired '% A'ratt and Goode% (D)+ &n order to st!d% the effects

on the presence of a shoppin list on ip!lse p!rchase 'eha,hior$ & present the followin

proposition+




M)>"M")T PRO9"M TR)*9T"3 I)TO R"*"R#? OJ"#TI!"* :'

Research

Problem

Research

Kuestions

Research

Ob&ectives

• To st!d% the

incidence of &p!lse

p!rchase decisions

with respect to fi,e

factors+

0hat is the incidence

of ip!lse p!rchase in

S!perar-ets$ retail

o!tlets and alls of

M!'ai 3

?ow does incidence

ip!lse '!%in ,ar%

d!e to the presence

of a shoppin list3

*oes increase in the

sie of rocer% 'ill

increase the incidence

of ip!lse p!rchase

decisions3

*oes ip!lse '!%in

increase as the n!'er of prod!cts p!rchase

increase3

&s the incidence of

ip!lse '!%in hiher

To st!d% the incidence

of ip!lse '!%in in

S!perar-ets of+

S!perar-ets$ retail

o!tlets and alls of

M!'ai

To st!d% whether

p!rchase intentions are

infl!enced '% factors

s!ch as the ender of

the shopper$ presence of

a shoppin list$ the

n!'er of prod!cts

p!rchased and the sie

of the rocer% 'ill+

'




aon ales than

feales3

?=POT?"*I* :'

Based on o!r disc!ssion literat!re re,iew$ we arri,ed at the followin h%potheses which we

wo!ld 'e testin /#

?ypothesis 1: Gender and p!re ip!lse p!rchasin are correlated+

?ypothesis (/ Ae and p!re ip!lse p!rchasin are correlated

?ypothesis 0/ 0ealth and p!re ip!lse p!rchasin are positi,el% correlated+

?ypothesis 2/ Rate of &p!lse '!%in increases with the sie of the 'ill

?ypothesis // Rate of &p!lse '!%in increases with the n!'er of different prod!ct 'o!ht+

?ypothesis 5/ There is association 'etween presence of shoppin list ip!lse '!%in

'eha,ior+

?ypothesis 8/ To!ris and ip!lse shoppin are positi,el% related+

?ypothesis ;/ Lone shoppers will 'e less li-el% to p!rchase on ip!lse+

Research Methodology :'

The research ethodolo% was di,ided into two staes which in,ol,e two so!rces for

collectin the data in order to achie,e the o'1ecti,e of pro1ect+

D+ Collectin data reardin the potential c!stoers fro retailers thro!h retailers

o'ser,ation in the e2istin alls and retail o!tlets (-#star$ r#cit%$ inor'it $rah!leela$

'i'aar$ d#art) within M!'ai cit% +

+ Collectin the priar% data directl% with the c!stoer with the help of the4!estionnaire +Refer nne,ure'1- and personal inter,iews .

A hypothetical consumer impulse buying behaviour model +Refer $ig /- is also

ta-en into consideration $which has 'een entioned in concl!sion and findins part




R"*"R#? 3"*I>) :'

&n this pro1ect multi stage sampling is !sed 'eca!se the total pop!lation was too lare

and d!e to tie constraint it was not practicall% possi'le to a-e a list of entire pop!lation +At

first stae & ha,e di,ided saple area wise and then f!rther di,ided it into incoe stat!s so that &

can et correct and related inforation+

Type Of Research :'

The research was of e2plorator% nat!re and in,ol,ed cond!ctin in#depth inter,iews of

shopper lea,in s!perar-ets to cr%stallie and 'etter !nderstand the pro'le at hand and a few

factors that affect it+

3ata #ollection Method :'

D+ *econdary 3ata :' Research papers were st!died and online li'raries s!ch as ISTOR$

EBSCO ?ost and 8alra,e Mcillan were ,isited+

+ Primary 3ata :' 0e collected inforation fro the s!'1ects '% eans of a s!r,e%+

F!rtherore the a1or techni4!e that we !sed to approach o!r s!'1ects was the intercept

techni4!e i+e+ approachin the witho!t prior notification or appointent+ 8ersonal

intercept inter,iews were !sed to collect inforation in a face to face sit!ation+ The

s!perar-ets alls and retail o!tlets co,ered were/ ("#Star$ R#Cit%$ &nOr'it$ Rah!leela$

Bi'aar $ *#Mart)

Measurement TechniLue :' A 4!estionnaire was desined to 'e adinistered d!rin the personal inter,iew+ Care

was ta-en to a,oid loaded$ do!'le 'arreled$ 'iased 4!estions+

*ampling Plan :'




• Population 3efinition :' Men and woen of ae D@ and a'o,e who ha,e shopped in

s!per ar-ets $alls and retail o!tlets in M!'ai in onth of Octo'er and No,e'er

d!rin da% tie+

• *ampling $rame :' Fi,e alls and s!perar-ets in M!'ai were selected nael% The

("#Star$ R#Cit%$ &nOr'it $ Rah!leela $ Bi'aar $ *#Mart)

*ample 3esign :'

• *ampling 4nit : ("#Star$ R#Cit%$ &nor'it $ Rah!leela$ Bi'aar$ *#Mart)

• *ampling *iHe : D 8otential C!stoers

• *ampling techniLue : M!ltistae Saplin

• *ampling area: Malls And S!perar-ets 0ith &n M!'ai Cit%

• #ontact Method/ 8ersonal Contacts+

*ampling Plan :'

The inter,iew was stationed at the alls s!per ar-et e2it to select a shoppin part%

lea,in the s!per ar-et after a-in soe p!rchases+ The respondent was 4!alified '%

deterinin whether the% were carr%in an% shoppin pac-aes and their willinness to

participate in the research+ After introd!ction the inter,iewes were adinistered the

4!estionnaire thro!h a personal inter,iew+ The 4!estionnaire was copleted and filled '% the

inter,iewer hiself+The inter,iew was terinated '% than-in the respondents for their

participation+




9IMITTIO)* :'

D+ 8eople in o!r co!ntr% are not ,er% !sed to research hence the% were not ,er% recepti,e or

did not -now how to respond to certain 4!estions+

+ As st!dents$ the researchers had liited ao!nt of reso!rces (tie$ one%$ etc) to spend

on this research+

J+ This research has 'een cond!cted in a fi,e alls and s!perar-ets of M!'ai the

findins cannot 'e e2tended to all the alls s!perar-ets in &ndia + ?ence the findins

are onl% applica'le to M!'ai+

6+ This research foc!ses on the incidence of ip!lse '!%in and a few factors affectin its!ch as ender of the shopper$ sie of the shoppin 'ill$ presence of a shoppin list and

the n!'er of ites p!rchased+ This does not s!est that these are the onl% factors that

infl!ence ip!lse '!%in decisions+

5+ Soe other infl!encin factors s!ch as in#store sti!li (co!nication i2$ shelf

placeent)$ cons!er traits other than ender$ sit!ational factors (ood$ tie$one%)

and norati,e traits of decision a-in ha,e not 'een st!died+ ?ence$ the findins of this

st!d% cannot 'e e2tended to those areas




*"#O)3R= R"*"R#? :'

The secondar% research done thro!h ,ario!s research papers and thro!h online li'raries s!ch

as ISTOR$ EBSCO ?ost and 8alra,e Mcillan i,es the followin inforation as shown in the

pie diara it answers the 4!estions as-ed to cons!ers of etro cities who often o shoppin

in alls and s!perar-ets few of the 4!estions as-ed are as follows /#

I rarely ever buy impulsively

I al6ays buy if I li7e it

hile moving around the store EI decide for purchase by loo7ing at the things

hile moving aroundE I often buy being tempted out of need 6hich has suddenly

evolved

Kuite often I regret after buying ne6 things

The answers to these 4!estions are presented in for of pie diara and it shows the followin

statistics /#






20D of sample people agree that they do purchasing by loo7ing at the things

/;D sample people believe that 6hile moving around

they are tempted out of need 6hich has suddenly evolved




(1D of sample people regret after buying ne6 things




/5D of sample people buy things 6ithout any intentions to purchase them

The 'elow is the data that has 'een collected and copiled fro certain research

papers reardin the deoraphic anal%sis of the respondents ainl% fo!nd in etro cities

who show ip!lse in their '!%in 'eha,ior +

3emographic profile of respondents found in secondary research :'

*escripti,e profile of respondents (nUD)

1. >ender :'

$ig 1 3emographic data for genders

The a'o,e raph inferences that ost of the tie ale enders are the one who oes

for ip!lse '!%in decision+i+e+ <<7 are ale respondents in research papers st!died while

feale coprises of onl% D7 of the toatal respondents st!died thro!h the research papers

which coprises of secondar% research +

Research Report on Impulse Buying Page /@



(. ge :'

$ig ( 3emographic data for age

Fro the raph a'o,e its easil% ,isi'le that the ae ro!p D<#5 are the one who o

a2i! ties for ip!lse '!%in since this is the ae ro!p when the% are ost acti,e ha,in

soe power of p!rchasin too+

0.Occupation :'

$ig. 0. 3emographic data considering their occupations

Fro the raph its clear that ost of the ip!lse '!%in is 'ein done '% st!dents

which coproises of 5D7 of total D respondents J7 is for the ser,ices pro,idin people

and 7 to the '!siness oriented person and at last onl% @7 coprises of ho!se wife.s+

*4R!"= O$ RI#" 4)I!"R*IT= :'

Research Report on Impulse Buying Page /1



The a'o,e is the report of rice !ni,ersit% on ip!lsi,e '!%in 'eha,ior in relation to

the (8*B) power i+e one% $distance i+e location of alls or retail o!t lets $'elief i+e taste

and prefrences

A s!r,e% of rice !ni,ersit%/ aericans with hih e4!alit% are ore prone to ip!lsi,e

'!%in

A'o!t @7 of s!perar-et sale and < 7 of l!2!r% oods sales are ip!lsi,e

The% ha,e low 8*B(power distance Belief) hence low self control and ha,e deree of

ip!lsi,e '!%in nat!re

?iher the 8*B less is ip!lsi,e '!%in

S 8*B is 6$R!ssia J$China < and &ndia

R"*49T* :'

Below are the res!lts of the h%pothesis considered in relation ,ario!s aspects of '!%in

'eha,ior $the res!lts are deri,ed on the 'asis of priar% data collected with the help of

4!estionire and personal inter,iews with the respondents +

?ypothesis 1/ >ender and pure impulse purchasing are correlated+

Specificall%$feales are ore li-el% to p!rchase on ip!lse+ This sees in accordance

with social stereot%pes of en 'ein practical and woen li-in to shop+ Accordin to

reression anal%sis statistical techni4!e !sed to find the association 'etween ender and ip!lse

'!%in 'eha,ior$ & fo!nd that woen ha,e ore tendencies to '!% on ip!lse as < per cent of

o!r feale respondents were fo!nd to 'e ip!lse p!rchasers where as onl% J< per cent of the

ale respondents showed ip!lse '!%in tendenc%+ This indicates that en plan well ahead

'efore enterin shoppin ar-ets than feales+ The% econoie on their tie and efforts and

stic- to their needs and decisions+ Feales do not plan e2tensi,el% 'efore enterin and are ore

inclined to 'e attracted to in#store sti!li+

Male Feale Col!n total

&p!lse D J< 5

8lanned J DD 6J

Research Report on Impulse Buying Page /(



Row total 5D 6 D

"ollet and 0illet (D@)$ woen p!rchase a hiher percentae of prod!cts on an

!nplanned 'asis 'eca!se the% a-e ore p!rchases+ 0hen the n!'er of p!rchases is held

constant$ en and woen ha,e the sae deree of s!scepti'ilit% to !nplanned p!rchasin+

?owe,er$ M% anal%sis indicates that in M!'ai alls and s!perar-et $the n!'er of prod!cts

p!rchased '% respondents has no affect on ip!lse '!%in tendenc%+ Th!s$ the ip!lsi,e

'eha,ior in the research can 'e attri'!ted to solel% to ender+ 0oen are ore s!scepti'le to

enae in ip!lsi,e 'eha,ior in s!perar-ets+ This findin is contrar% to what was fo!nd in thest!d% of &p!lse B!%in Beha,ior in ietan '% Mai$ I!n$ Lant Loe' (D)+ The% fo!nd

that en e2hi'ited a hiher ip!lse '!%in tendenc%'eca!se woen needed to plan all e2penses

caref!ll% so that their failies. odest incoe co!ld 'e spent =wisel%>+ & did not see this

happenin in M!'ai pro'a'l% 'eca!se o!r respondents ainl% 'eloned to class ha,in

incoe coforta'l% a'o,e the =odest> le,el+

?ypothesis (/ ge and pure impulse purchasing are correlated

The research shows that %o!n 'lood i+e the ae ro!p of (D@#6) is ore ip!lsi,e in

p!rchasin and also the Older fol-s with ore disposa'le incoe are ore li-el% ip!lse

p!rchasers+As the research was open for all the ae ro!p the findins are ore li-el% to 'e

correct +




?ypothesis 0/ ealth and pure impulse purchasing are positively correlated.

&n other words$as incoe oes !p$ so does li-elihood of ip!lse shoppin 'eha,ior+

This h%pothesis is p!rel% acroeconoic in 'ac-ro!nd$ ipl%in that as incoe oes !p so

does cons!ption$ 'e it planned or ip!lse+ F!rtherore$ ip!lse '!%s are not li-el% to 'e

necessities in the all !nless the% are clothin+ &n this case$ the cons!er co!ld ,isit disco!nt

stores that en1o% larer econoies of scale instead

?ypothesis 2: Rate of Impulse buying increases 6ith the siHe of the bill


AGE &M8LS&E NON#&M8LS&E

nder D@ D6 @

D@#6 D< D

5#J6

J5#66 <

65#56 <

55 D6 DD



Shoppin 'ill is also a eas!re of transaction sie+ The Fi!re depicts that there is no

relationship 'etween !nplanned p!rchasin and shoppin 'ill+ Th!s we can confidentl% re1ect the

n!ll h%pothesis that ip!lse '!%in increases with the sie of the 'ill+

Fro the data we see that the correlation 'etween ip!lse p!rchase and shoppin 'ill

less than Rs+ D$ is 57+ The correlation for 'ill 'etween Rs+ D$ and J$ is 7 alost

no correlation+ ?owe,er for a 'ill sie a'o,e Rs+ J$D the correlation is neati,e+ This is for a

'ill sie !p to Rs+ @$+ For 'ill sie reater than Rs+ @$ we can e2trapolate fro the

o'ser,ed pattern that the correlation wo!ld ha,e 'een ore neati,e+

This is line with o!r findins relatin to the n!'er of prod!cts p!rchased in which we

fo!nd no correlation 'etween the n!'er of prod!cts and the ip!lse '!%in 'eha,ior (details

i,en a'o,e)+ Generall% we can concl!de that people who '!% ore will ha,e ore shoppin 'ill

and will 'e enain in less ip!lse '!%in+

?ypothesis /: Rate of Impulse buying increases 6ith the number of different product

The percentae of !nplanned p!rchases has no sinificant correlation with the n!'er

of different prod!cts 'o!ht '% shoppers in alls and s!per ar-ets in M!'ai as can 'e seen in

the Fi!re J

Research Report on Impulse Buying Page //



O!r findins e2plain that as the n!'er of different prod!cts a c!stoer intends to

p!rchase increases$ the difference 'etween act!al and intended p!rchase decisions do not ,ar%+

E,en tho!h the reater the n!'er of prod!cts p!rchased$ the reater the e2pos!re to in#store

sti!li '!t the n!'er of prod!cts 'o!ht on ip!lse do not increase+ ?ence$ & concl!de$ that in

instances where c!stoers shop for a larer n!'er of ites the% plan well ahead and there are

little chances of ip!lse '!%in+

This can 'e 'eca!se as c!stoers plan for larer ites the% tr% to econoie on their

tie and effort hence little or no ip!lse p!rchases+ ?owe,er$ when c!stoers shop for a few

needed ites or enae in rando shoppin$ the% are ore inclined to enae in ip!lse '!%in+

This is contrar% to what was fo!nd in pre,io!s researches ("ollet 0illet D@) which

indicated that as p!rchased ites increase the le,el of !nplanned ip!lse p!rchases also

increases+ 0e fo!nd no s!ch pattern in s!perar-ets and alls of M!'ai +

?ypothesis 5: There is association bet6een presence of shopping list F impulse buying

No sinificant association is fo!nd 'etween the two ,aria'les +There e2ist no

correlation 'etween the rate of !nplanned p!rchasin with the presence of shoppin list+0e

interpret that the shoppin list contains onl% 'asic ites and when people enter the s!per ar-et

the% enae in ip!lse '!%in+

?ence the research concl!des that the tendenc% of a cons!er to enae in ip!lse

'!%in has no association with the shoppin list +Also fro the Ta'le we can concl!de that

a1orit% of the people do not carr% shoppin list with the (657) or carr% it onl% soeties

(J57)+ This shows there is nat!ral tendenc% aonst shoppers not to carr% shoppin lists with




the+ Th!s we can confidentl% re1ect the n!ll h%pothesis that there is association 'etween

presence of shoppin list ip!lse '!%in

"#STAR R#C&T9 &NORB&T B&GBAWAR *#MART TOTAL

NEER D @ D 65

SOMET&MES 5 < D 5 J5AL0A9S J 5 @ 6

TOTAL D

Table 2

S?O8&NG L&ST NO S?O8&NG L&ST TOTAL

8LANNE* D5 5 6

&M8LS&E DJ 6 @

TOTAL < D

Table 3

"ollet and 0illet (D@) fo!nd that a shoppin list infl!ence p!rchases when ore than

D5 prod!cts are p!rchased+ &n this st!d%$ aonst those respondents who did '!% ore than D5

prod!cts onl% 667 co!ld 'e cateoried as ip!lse '!%ers and 6 7 of these were carr%in a

shoppin list+ Fro this we can concl!de no effect as s!ch of shoppin list on the rate of ip!lse

'!%in e,en when lare n!'er of different prod!cts is 'o!ht+

?ypothesis 8/ Tourism and impulse shopping are positively related+

Research done on to!rist ip!lse shoppin at airports indicates that to!rists are at a

state of ind that enco!raes p!re ip!lse '!%s$ e'odied in the Xtra,el stress c!r,e. '%




Schol,inc- (Crawford et al)+Th!s we accept the h%pothesis that To!ris and ip!lse shoppin

are positi,el% related

?ypothesis ;/ 9one shoppers 6ill be less li7ely to purchase on impulse+

This is loical 'eca!se the ore people in the part%$ partic!larl% dependents$ the ore

li-el% one% will 'e laid o!t at an% i,en tie+ 8!rchases iht 'e d!e to the infl!ence of

others$ e,en peer press!re+Th!s we accept the h%pothesis that Lone shoppers will 'e less li-el%

to p!rchase on ip!lse+

IMP49*I!" 4=I)>: #4R*"

• *ist!r's the o,erall financial '!det

• Often i,es prod!ct dissatisfaction and less alternati,es are considered

• 8eople who o for ip!lsi,e '!%in often ha,e post p!rchase reret

• &rrational decision a-in 'ein ore eotional

Impulse uying #an e a >ood Thing :'

hen To al7 On The Impulse ild *ide

B!%in thins on ip!lse is !s!all% disco!raed aainst in ost articles %o! read on

sart shoppin '!t soeties it a% act!all% 'e a ood thin+ nderstandin how rocers set !p

the stores in order to tept shoppers with ip!lse ites will help e,en the ost fr!al shopper

to en1o% a little wal- on the ip!lsi,e wild side+

Integrated Merchandising :'

E,er%one has 'een tepted '% what the rocer% store erchandisers refer to

as integrated merchandising. This is the practice of p!ttin related ites toether on a displa%

-ios-H s!ch as the reen 'eans with dried onions for 'ean casseroles+ Most cons!ers ,iew this

Research Report on Impulse Buying Page /;



t%pe of erchandisin as helpf!l 'eca!se of the con,enience of not ha,in to o loo- for the

sister ite+ &t also a-es it less li-el% that the ite will 'e forotten '% the cons!er+ Grocers

,iew interated erchandisin as ser,in a d!al p!rpose+ The c!stoer ,iews it as a

con,enience and it prootes cons!ers to '!% o!t of ip!lse$ increasin the total sale+

Other reas In >rocery *tore Pushing Impulse Items:'

• *ispla%s at the end of the aisles+

• Anno!nceents of price specials o,er the store interco+

• Saples that are 'ein coo-ed and entice !s with the aroa and silin so!nds+

• Fresh 'a-ed oods that ha,e stron aroatic powers o,er cons!er ip!lses+

• &ntrod!ctor% low prices on new prod!cts+

&f these ites are soethin %o! alread% planned on '!%in then o ahead and p!t it in

%o!r cart+ 0hen %o! et aro!nd to the area where the ite is norall% erchandised$ chec- o!t

the prices on the other 'rands to see if %o! can 'eat the price+ Man% ties ites placed in

interated -ios-s are hea,il% prooted with price red!ctions and are a sart p!rchase '!t do %o!

price coparisons reardless+

hen to uy '' Neeping It $un :'

&aine if e,er% tie %o! 'o!ht a new pair of shoes or pair of pants %o! p!rchased

the sae -ind 'eca!se the% were coforta'le and a ood price+ 9o!r enth!sias to o

shoppin wo!ld ost li-el% drop to ero+ That sae concept can a-e the difference in

%o!r attit!de a'o!t rocer% shoppin+ &f %o! alwa%s '!% the sae prod!cts then %o!r trip

to the store is pro'a'l% a real chore+ ?owe,er$ if %o! allow %o!rself to ind!le in soe

ip!lse '!%in then it -eeps %o!r rocer% trip a little ore interestin+ Tr% '!detin in a

little spl!re one% for tr%in o!t new prod!cts or '!%in soethin %o! norall% pass

on+

To avoid impulse buying from being a total 6aste of moneyE as7 yourself the follo6ing

Luestions:

Research Report on Impulse Buying Page /<



• ?ow will & !se it3

• 0hen will & !se it3

• 0h% a & '!%in it3

• &s the price reasona'le3

&f %o! ha,e sensi'le positi,e answers to those fo!r 4!estions$ then chances are %o! 1!st ade a

ood ip!lse p!rchase so o en1o% itY ?a,e f!n sa,in one% while %o! shopY

?eres a fe6 ideas to help 7eep those impulses under control G

• Alwa%s 7eep an ongoing list of thins %o! need to '!% on %o!r ne2t trip to an% store+

Re,iew the list 'efore %o! lea,e$ and ree'er to ta-e it with %o!Y

• Ma-e as fe6 trips to the store as possi'le each onth$ and a,oid the alls entirel%+

• Gi,e %o!rself a time limit for how 4!ic- to et in and o!t of the store$ alon with a

personal challene to not '!% an%thin thats not on %o!r list+

• Appl% % 2;'hour aiting Rule for all ip!lse p!rchasesH if 6< ho!rs after

LEA&NG the store$ %o! decide %o!+++

• Still need it+++

• Still want it+++

• Cant find is soewhere else for a 'etter price+++

• Can afford it+++

• And$ %o! cant !se a siilar ite at hoe$ or 'orrow one+++

T?EN o ahead and a-e the p!rchase+

• Nno6 6hat your budget is for iscellaneo!s ites each onth+ To help -eep trac-




of %o!r ip!lse p!rchases+++

• • "eep a list of an%thin e2tra %o! p!rchase thro!ho!t the onth on a sall sheet of

paper t!c-ed awa% in %o!r wallet$ or a sall notepad in %o!r p!rse+

• • "eep trac- of %o!r receipts in an en,elope at hoe so %o!ll -now how !ch %o!re

spendin as %o! o thro!h the onth+ 0hen %o!,e spent %o!r '!deted ao!nt for

the onth # no ore ip!lse (iscellaneo!s) p!rchasesY

• AN*$ if %o!,e s!ccessf!ll% passed '% that oreo!s new o!tfit (or that shin% new car

that costs as !ch as a ho!se sho!ldY)$ and dont e,en need to appl% the 6<#

0aitinR!le$ reward %o!rself for choosin a Better Life$ with a l!2!rio!s '!''le 'ath

toniht++

?o6 *ocial Media #an 9ead To Impulse uying :'

Toda%$ ore people than e,er are choosin to shop for prod!cts and ser,ices online+

The res!lt has 'een an increase in online ip!lse '!%in+ The rise of ip!lse '!%in on the

internet is d!e to a n!'er of shoppin feat!res s!ch as eas% access$ the a,aila'ilit% of an%

ore ites$ !se of credit cards$ and the s!ccess of ar-etin prootions and direct ar-etin+

B!sinesses are now !sin these edia sites s!ch as Twitter and Face'oo- to ar-et their

prod!cts+ B!sinesses ha,e 'een a'le to con,ince cons!ers to a-e ore ip!lse p!rchases and

therefore$ increase their online spendin+

0ith the asto!ndin pop!larit% of social#edia sites s!ch as Face'oo- where there are

a'o!t fi,e h!ndred illion !sers$ '!sinesses now ha,e another wa% to interact directl% with

potential c!stoers to proote their prod!cts and ser,ices and this interaction can reach illions

of online !sers+ Goole$ Face'oo-$ Twitter$ and other social edia o!tlets a-e it eas% for

'!siness ar-eters to trac- cons!er preferences$ 'eha,ior$ and trends$ which allow the to

directl% taret !sers and offer prod!cts and ser,ices the% specificall% want+ As well$ their

ar-etin strate% incl!des offerin special deals to f!rther enco!rae ip!lse '!%in+

0hen !tiliin social edia to reach online !sers$ ar-eters ha,e the a'ilit% to

sched!le specific capains when specific prod!cts are sellin well+ Since social#edia trends

are chanin all of the tie$ '!sinesses can trac- the eerin trends$ which i,e the the




a'ilit% to la!nch prootions that will ena'le the to ore s!ccessf!ll% sell their prod!ct or

ser,ice+

Now$ social sites are offerin eas% shoppin access+ Copanies are de,elopin

prootional tools to ta-e ad,antae of ip!lse '!%in fro the social sites pae or thro!h !ser

o'ile de,ices+ Copanies are now 'einnin to pro,ide a wa% for !sers to '!% their prod!cts

direct fro the social edia pae and social sites are ipleentin 'etter filters which ean the

tareted c!stoer can 'e reached !ch ore easil%+

As well$ 'eca!se these edia is now o,in into the o'ile world$ ar-eters can

reach cons!ers where,er the% are and at an%tie of the da% and niht+ Now$ as ore and ore

cons!ers are sent sales and s!pport inforation and et !pdates fro social#edia$ '!sinesses

can effecti,el% tailor ar-etin capains 'ased on their distinct shoppin ha'its and

preferences+ Man% anal%sts 'elie,e in the near f!t!re$ social edia paes will no loner 'e

controlled '% the !ser$ '!t the ar-eter will control their social sites followers and the

ad,ertiseents and prootions that appear on their social edia pae+

Social#edia has chaned the wa% '!sinesses ar-et their prod!cts and ser,ices+ 0ith

a few clic-s and a credit card$ cons!ers can '!% an% tie fro an%where+ The financial

iplication is there will 'e an increased rate of ip!lse '!%in which will res!lt in ore peopleta-in on ore de't+ Shoppin online !sin social sites has 'ecoe so eas% toda%$ the cons!er

!st de,elop pr!dent shoppin s-ills to a,oid acc!!latin too !ch credit card de't that can

e,ent!all% res!lt in financial r!in+




#O)#94*IO)* )3 $I)3I)>* :'

Since &ndian retail ar-et is contin!o!sl% increasin$ people are p!rchasin oods as

there is increase of incoe of coon people as well as chane in tastes and preferences of

cons!ers+ &t is iportant for the retail pla%ers to 'e a'le to !nderstand the different factors

affectin the e2tent in ip!lse '!%in 'eha,io!r+

• The research shows that ip!lse '!%in is a phenoenon coon aonst the feale

shoppers in M!'ai cit%+

•

The ipact of presence of shoppin list$ sie of the shoppin 'ill and n!'er of prod!cts p!rchased was fo!nd to 'e insinificant+

• The 'ill sie and the n!'er of ites p!rchased are two eas!res to define the

transaction sie+ O,erall$ 'oth of the t!rned o!t to ha,e no sinificant correlation with

ip!lse '!%in

• 0e fo!nd hih incidence of ip!lse '!%in in snac-s and confectionaries+

The research shows that ip!lse '!%in is a phenoenon coon aonst the feale

shoppers in M!'ai cit% + This can 'e 'eca!se !s!all% woen '!% for the whole fail%$ not onl%

for thesel,es+ So as the% shop the% are reinded of the ites needed '% others as the% coe

across the prod!cts in store and th!s '!% the+ Also woen enerall% ha,e reater tie on hand

to do shoppin as copared to enH hence increasin their tendenc% to enae in ip!lse

'!%in+ This has iportant iplications for the in#store placeent of prod!cts+ 8rod!cts with




which woen can 'e attracted to '!% on ip!lse$ s!ch as froen food$ spices and other

ho!sehold food ites$ sho!ld 'e proinentl% displa%ed in#store so as to enerate ip!lse

p!rchases+

The ipact of presence of shoppin list$ sie of the shoppin 'ill and n!'er of

prod!cts p!rchased was fo!nd to 'e insinificant+ E,en the people carr%in a shoppin list

enaed in ip!lse p!rchases+ This can 'e 'eca!se ost of the ites on the shoppin list were

collecti,e !se ites or those needed '% other people whereas personal !se ites were 'o!ht on

ip!lse+ Soe of the people were carr%in shoppin lists ade '% soeone else (who was not in

the shoppin part%) s!ch as the chef$ other#in#laws and spo!ses+

The 'ill sie and the n!'er of ites p!rchased are two eas!res to define the

transaction sie+ O,erall$ 'oth of the t!rned o!t to ha,e no sinificant correlation with ip!lse

'!%in+ This shows that people who coe to a-e lare n!'er of p!rchases plan their

shoppin 'eforehand and hence enae in less ip!lse '!%in+ This a%'e 'eca!se the% ha,e

alread% spent so !ch tie spendin what the% had planned to '!%$ that there is little tie left to

a-e other !nplanned p!rchases+ & fo!nd hih incidence of ip!lse '!%in in snac-s and

confectionaries+ This a% 'e 'eca!se the% are placed near the co!nter or at ,isi'le places in the

S!perar-ets so as to attract people to '!% the+

0e also fo!nd froen food to 'e one of the rec!rrin ites on the list of !nplanned

prod!cts '% the respondents+ These incidences of ip!lse '!%in a% 'e 'eca!se the deep

freeers with transparent doors carr%in the froen food ites are placed riht at the entrance of

ost of the s!perstores$ hence catchin people.s attention as the% enter or a'o!t to lea,e the

store+ Th!s the iportance of in#store sti!li can 'e inferred fro o!r st!d% as we did not

specificall% test for their sinificance+ This can 'e the topic of f!t!re researches+

Ad,ertiseent of prod!ct in print and ,is!al edia$ ario!s prootional acti,ities

reardin prod!ct$ ?ordin and paphlets of prod!ct$ 8ac-ain of prod!ct$ 8lacin of prod!ct

in store$ Eotional attachent with prod!ct$ Beha,io!r of sales person$ 8op!larit% of prod!ct$

The person with who %o! are oin for shoppin are the ain factors for ip!lse '!%in

'eha,io!r which 'roadl% defines a'o!t the "motional appeal of advertisements.

ario!s schees li-e ('!% D et D free)$ Copati'ilit% of another prod!ct with the prod!ct %o!

are '!%in$ &nfl!enced '% other people$ "ind of prod!ct which %o! are '!%in +This shows that

iportance of infl!ence of other peoples on '!%in 'eha,io!r of c!stoers+




An% e,ent oranied '% oraniationE *ispla% of prod!ct in store$ 9o!r perception a'o!t

sa,in and in,estent$ Traditions and c!stos$ ,ario!s festi,al disco!nts on prod!ct$ which in

totall% shows the direct ipact prod!ct placeent in the stores in a retail o!tlet li-e *#Mart

Bi Baar+

8rice of prod!ct$ %o!r incoe stat!s$ and Standard of li,in$ which clearl% defines the

indi,id!al p!rchasin power++A,aila'ilit% of prod!ct$ Re4!ireent of prod!ct in festi,al season

which shows that disco!nt offers d!rin festi,al seasons attract c!stoers for their ip!lse

'!%in 'eha,io!r+ *isco!nt offers reardin prod!ct$ foc!sin on effecti,e price and disco!nt

strateies which is in 'ro!ht '% the retail pla%ers in order to attract there potential c!stoers+

Chanin trends in societ%$ special occasions which sinifies that how !ch toda% also

people i,e preferences to the traditions and rit!als d!rin festi,al season that it has created a

eotional 'ond which res!lts in ip!lse '!%in 'eha,io!r+

OverallE various internal and e,ternal factors affects the impulse buying behaviour

of the consumer 6hich is e,plained by the above findings

$ig./ Impulse uying ehavior Model


Eotional 'ondin andsae of prod!ct&n festi,als

Eotional appeal ofad,ertiseents

&ncoe of thec!stoer

8rod!ct placeentin the store

Brand iae of8rod!ct

IMP49*"

4=I)>

"?!IOR



$ig.5 Model Of #onsumer uying Process So!rce/ Ch!rchill 8eter (D<)+ 8D6


Effecti,e 8ricin anddisco!nt strate%

ario!s festi,alSeasonal disco!nts



$ig.8 Model Of Impulse uying Process So!rce/ Adapted fro Ch!rchill 8eter (D<)

Altho!h the st!d% was cond!cted on a sall pop!lation to find &p!lse B!%in

Beha,io!r of the cons!er in alls and retail o!tlets within M!'ai $ the findin of the

st!dies can 'e eneralied to the whole pop!lation+ &t can 'e ,er% coforta'l% inferred that$

'ased on the &p!lse B!%in Beha,io!r odel that has 'een fored shows

1. "motional appeal of advertisements

(. rand image of the product

0. Product placement in the store

2. Income of the customer

/. !arious festival seasonal discounts

5. "ffective pricing and discount strategy

8. "motional onding and usage of the product in festivals

Affects ip!lse '!%in 'eha,io!r of the cons!er ,er% strictl%+The &ndian ar-eters.

has to o a lon wa% to !nderstand the ip!lse '!%in 'eha,io!r as it is a ,er% s!'1ecti,e




and its depends on !ltiple factors$ '!t ar-eters can ta-e ad,antae for this 'eha,io!r and

in alost e,er% prod!ct cateor% ip!lse '!%in witness+

*OM" O*"R!TIO)* :'

• Rah!leela Mall at ashi$ M!'ai has onl% one entr% ate while ha,in two e2it ate for

a2i! e2pos!re to window displa% and trier ip!lsi,e '!%in

• At Bi Baaar in Che'!r the cashier co!nter soft drin-s$ chocolates$ soap$ wafers $

aaines$ -id soft to%s were -ept to trier cas!al ip!lsi,e '!%in

• 8se!do#pricin acts as one of the ain ip!lse enerator in ip!lsi,e '!%in in ost of

the shoppin alls of M!'ai cit%

$4T4R" R"*"R#? :'

& ha,e cond!cted an e2plorator% research to st!d% the nat!re of ip!lse '!%in in

Malls and retail o!tlets of M!'ai + ?owe,er$ the st!d% does not e2tend to pro,idin a ca!sal

relationship 'etween the ,ario!s factors$ hence f!t!re researches can cond!cted in those areas+

The factors st!died in the research incl!de the ender of the shopper$ sie of the

shoppin 'ill$ presence of a shoppin list and the n!'er of ites p!rchased+ F!t!re researches

a% incl!de sit!ational factors s!ch as ood$ tie and one%H cons!er traits and

norati,e traits+ The research s!ests no eoraphical difference in ip!lse '!%in+ ?ence it wo!ld

'e !sef!l to cond!ct f!t!re research in other etro cities of &ndia to e2aine the differences in

ip!lse '!%in 'eha,ior 'etween the different cities of &ndia + The st!d% was onl% confined to

the class of c!stoers who coe for shoppin in alls and retial o!tlets + F!t!re researches can




e2plore ip!lse '!%in in other socio#econoic classes of the pop!lation which are not so !ch

!sed to the odern forat of retailin and who a-e their p!rchases at rocer% stores onl%+

The findins of the research a% 'e iportant fro a theoretical perspecti,e$ 'eca!se it

contri'!te to a 'etter !nderstandin of ip!lse '!%in 'eha,ior fro the conte2t of a transitional

econo%+ The research also s!ests soe anaerial iplications reardin prootion of

ip!lse '!%in thro!h increased ph%sical and teporal pro2iit%+

I9IO>RP?= % R"$"R")#"* :'

• Alice ?anle% and Mari S+0ilhel (D)+Cop!lsi,e '!%in/ An e2ploration into self#

estee and one% attit!des+ ournal of economic !sychology DJ5#D<+

• An1a Schaefer Andrew Crane (I!ne 5).Addressin S!staina'ilit% and Cons!ption+

ournal of macro mar"eting .ol 5$ No+D$ @#+

• Ann Elia'eth Ericson$ (D) ni,ersit% of &owa =Antecedents of older adolescent.s

credit card enhanced spendin attit!de and self reported financin 'eha,io!r>+

• A,i, Shoha and Ma1a Ma-o,ec Brencic (J)+Cop!lsi,e '!%in 'eha,io!r+ ournal

of consumer mar"eting $ ol $ No++

• Celia ra% ?a%hoe$ La!ren Leach$ 8aela R+T!rner (D)+ *iscriinatin the n!'er

of credit cards held '% collee st!dents !sin credit and one% attit!des+ ournal of

#conomic !sychology $@6J#@5@+




• Gordon C+0inston (D<)+A new approach to econoic 'eha,io!r+ ournal of #conomic

behaviour and organi$ation$ <$5@#5<5+

• ?ans Ba!artner$ Ian Benedict E+M+ Steen-ap(D@)+ E2plorator% cons!er

'!%in 'eha,io!r/ concept!aliation and eas!reent+ International %ournal of &esearch

in mar"eting $ DJ$DD#DJ+

• Bhatt Monica and Iain +8+C=Cons!er Beha,io!r in &ndian Conte2t> First

Edition J$S+ Chand Copan% Ltd+$ J@D$Ra Naar$

• "otler 8hilip =Mar-etin Manaeent> Ele,enthEdition$ 8erson Ed!cation

( Sinapore) 8te+ Ltd+$ &ndian Branch$ 6< F+L+E+ 8ataparan1$ *elhi

• Ga!ta Neeran and Iain "o-il =Cons!er Beha,ior>$ 0isdo 8!'lication

*elhi

• http/::www+chinadail%+co+cn:en:doc:J#:5:contentZ@6+ht

• http/::www+indiainfoline+co:pefi:feat:cred+htl

• www+pantaloon+co

• www+scri'd+co

• www+f!t!rero!p+co

• www+ar-etresarch+co

))"4R"'1

K4"*TIO))IR"

?elloY & a a BMS st!dent of +E+S collee doin a st!d% on shoppin ha'its+ An% inforation%o! pro,ide is strictl% confidential and will solel% 'e !sed for acadeic p!rposes

Nae ++

Ae +

Gender # M9" $"M9"

Occ!pation +

0hat did %o! p!rchase at the all toda% *id %o! plan to p!rchase this *id %o! plan to p!rchasenot incl!din food fro the food co!rt3 Or a siilar ite 'efore %o! This BRAN* 'efore %o!(Last J ites) ENTERE* T?E MALL3 ENTERE* T?E MALL3


http://www.chinadaily.com.cn/en/doc/2003-09/25/content_267490.htm

http://www.indiainfoline.com/pefi/feat/cred.html

http://www.pantaloon.com/

http://www.scribd.com/

http://www.futuregroup.com/

http://www.chinadaily.com.cn/en/doc/2003-09/25/content_267490.htm

http://www.indiainfoline.com/pefi/feat/cred.html

http://www.pantaloon.com/

http://www.scribd.com/

http://www.futuregroup.com/



D)ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ 9ES NO 9ES NO)ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ 9ES NO 9ES NOJ)ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ 9ES NO 9ES NO

8lease list the ite n!'er ne2t to the reason that 'est descri'es the p!rpose of %o!r p!rchase

Gift & li-ed it&nfl!ence of others &t was on saleTo replace old ite &t was con,enientTo treat %self &t was soethin differentTo -ill tie So!,enier &t was ood ,al!e Other (please specif%) ZZZZZZZZZZZZZZZZZZZZZ

Accordin to %o! which of these factors affect %o!r ip!lse '!%in 'eha,ior for prod!cts which%o! ha,e p!rchased +

+ Stronl% aree # 6$ Aree #J$*isaree #$ Stronl% *isree#D)

2 0 ( 1

1. PRI#" )3 3I*#O4)T

i+ Attracti,e price of prod!ct affects % ip!lse '!%in 'eha,ior

ii+ *isco!nt offers reardin prod!ct attracts e

iii+ ario!s schees li-e ('!% D et D free) affects % '!%in 'eha,ior positi,el%+

i,+ A,aila'ilit% of disco!nted prod!cts oti,ates e to '!%+

(. 3!"RTI*"M")T )3 *9"* PROMOTIO)

,+ Ad,ertiseent of prod!ct in print and ,is!al edia attractse to '!%

,i+ ario!s prootional acti,ities reardin prod!ct oti,atesto '!% the prod!cts

,ii+ ?ordin and paphlets of prod!ct help e in ip!lse '!%in+

,iii+ An% e,ent oranied '% oraniation affects % '!%in 'eha,ior+

0. !I*49 M"R#?)3I*I)>

i2+ *ispla% of prod!ct in store attracts % attention+

2+ 8ac-ain of prod!ct attracts e to '% the prod!cts+

2i+ 8lacin of prod!ct in store ains % attention towards it+


* 3 *3



2ii+ Copati'ilit% of another prod!ct with the prod!ct %o! are '!%in

2. "MOTIO)9 TT#?M")T

+

i+ Eotional attachent with prod!ct is a oti,ational factor to '!% prod!ct

ii+ Beha,ior of sales person affects % '!%in 'eha,ior+

iii+ 8op!larit% of prod!ct increases recall ,al!e and helps inip!lse '!%in+

i,+ Chanin trend in societ% is a a1or factor in ip!lseB!%in

/. I)$94")#"R

i+ The person with who %o! are oin for shoppininfl!ences % '!%in 'eha,ior+

ii+ Coents of reference ro!p infl!ence % '!%in 'eha,ior+

iii+ "ind of prod!ct which i a '!%in

5. I)#OM"

i+ 9o!r incoe stat!s affects %o!r ip!lse '!%in 'eha,ior+

ii+ Standard of li,in has a role to pla% in '!%in prod!cts+

iii+ 9o!r perception a'o!t sa,in and in,estent

8. $"*TI!9 *"*O)

i+ Special occasion oti,ate e to '!%+

ii+ Re4!ireent of prod!ct in festi,al season propts e to '!%+

iii+ Traditions and c!stos triers % p!rchase decision

i,+ ario!s festi,al disco!nts on prod!ct ind!ces p!rchase of

prod!ct+

8. IMP49*" 4=I)> )ever Frequently

1+ & o shoppin to chane % ood+ D J 6 5+ & feel a sense of e2citeent when & a-e an ip!lse D J 6 5 p!rchase+J+ After & a-e an ip!lse p!rchase & feel reret+ D J 6 5




6+ & ha,e diffic!lt% controllin % !re to '!% when & see a D J 6 5ood offer+5+ 0hen & see a ood deal$ & tend to '!% ore than that & D J 6 5intended to buy.

'han" you for your participation Have a great day

PP")3I (:'

",hibit ('a.#ategoriHed Male Purchases.




",hibit ('b.#ategoriHed $eMale Purchases

",hibit ('c. Impulse Purchases as Percentage of Total.




",hibit ('d. Proportion of Impulse uyers #ategoriHed

by Residence and >ender.




Documents

Effective of Discounting Strategy on Buyers Reddiness