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Impulse buying behavior thesis builder

Impulse buying behavior thesis builder variables associated with impulse

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Published: 23, March 2015

People go to stores or super stores where they procure products intentionally or unintentionally. As the stores or super stores have thousands of products for sale for daily use and people are procure these products depending on their income. Here the income factor of the person plays the important role, which shows that how many rounds of visit a customer can make to the shopping stores to purchase goods. Due to the facilities given by these stores people do go for purchases which they have not intended and this trend of unintentional purchasing is termed as impulse buying Behavior (Tirmizi et al, 2009).

It happens when people pay attention to retailers when they perform effective retail communication or provide mind blowing discount offers and without any thinking much about it, people purchase the goods.

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Impulse items can be anything, a new product, samples or well-established products at surprisingly low prices. Research conducted by University of California tracks 30,000 purchases made by 4,200 customers who were engaged in a shopping trip in US, reveals that 68% of their purchases were unplanned. A similar research conducted in UK by Point of Purchase Advertising International (POPAI) revealed that 70% of the purchase decisions were taken on spot in the store (Pramit Das, 2008).

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Impulse buying can be said as a situation where instinct plays a main role. A customer purchases product with no appropriate planning or prior homework. This circumstances is seen by marketer and retailer and they capitalize on this instinct of the purchasers to produce the environment in which customer attracts toward the items and purchase it even if it was planned or not. The marketers provide such innovatively design product with good packaging which automatically becomes customers need or wants. In this scenario or fulfillment of immediate satisfaction and brilliance it is the customers who are the direct victims. Instincts are driven by emotions and emotions are driven by attitude and perception (Pramit Das, 2008).

Researchers have done researches earlier to measure impulse purchasing of different types of products in multiple shopping stores as it is reported by Du Pont (1965);Williams and Dardis (1972); Kollat and Willett (19 67), Prasad (1975); Bellenger et al. (1978).

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In Pakistan there are four types of price indices; Consumer Price Index (CPI), Wholesale Price Index (WPI), Sensitive Price Index (SPI) and GDP Deflator, by which inflation is, calculated. Along with these indicators, the major importance is given to CPI to measure the inflation, which covers 375 items in 71 markets of 35 cities of the country (Economic Survey, 2006-07). In (1990-00) the average CPI was 9.71 and in (2000-07) it was 5.8.

Due to this in lowest income group the inflation rate was found to be 8.3 with the income ranging from below Rs. 3,000 up to Rs. 5,000 as compared to the upper income brackets having income of more than Rs. 12,000 have inflation rate of 7.3. with these statistics we can say that the purchasing power of the upper class have increased as compared to the lower class (Tirmizi et al, 2009).

Background of the Study:

Consumer behavior is the study of people’s behavior about purchasing the product. In this content marketer focus on consumers about when, why, how, and where people do or do not buy a product. The marketers perform this study to understand the Consumer’s decision making process individually and in groups both. Marketers focus on people characteristics such as demographics and behavioral variables to identify people’s wants. They focus on the area where people have certain needs what role does groups such as family, friends, reference groups, and society in general play in their decision making process. This study is also done by the view of psychology, sociology, social anthropology and economics. People behavioral study is based on consumer buying behavior, where a buyer is categorized in three different roles where he/she is the user, payer and buyer.

Consumer behavior, can also be categorized as Consumer Psychology, where it is a branch of Psychology, marketing and Organizational Behavior. In this consumers’ decision making processes is visualize by the marketers and they gather information from the environment to analyze consumer. We will focus ourselves on impulse consumer buying behavior

Impulse buying is a moment driven, spontaneous decision and behavior to purchase products due to sudden burst of emotions and feelings. In other words we can say that when a consumer decides to purchase anything on spot, falls in the category of impulse buying. This action is normally driven through very well placed, positioned products or splendidly manipulated advertisement and even in many cases point of sales assistance and guidance.

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Marketers are also influencing the consumers in impulse buying especially in big hyper marts, super marts and also in local kiryana stores. Even now they conduct special research to engage the consumers more in such activities which eventually results in findings that encourages impulse buying decisions And based on those facts and findings marketers and stores administrations try to implement their products and positions.

The modern retail industry have seen a positive exponential growth due to rapid changing lifestyle, purchasing power and buying pattern of Pakistanis in last decade or so. The exposure to western media has influenced a lot on Pakistani consumers especially who are affluent and also has access to western products and foods.

Due to people’s busy lifestyle, congestion on roads, overcrowded markets devoid of proper ventilation, inconsistent quality of products and variation in prices has forced the customers to visit those outlets where the disturbance is absent, even if the sellers charge a premium for relatively better quality environment.(Kazmi, 2009)

Utility Stores Corporation is the largest group of super marts which is being run in the country. D-mart in Karachi and Pace in Lahore are the other local supermarkets chains. Traditional kiryana stores and juma bazaars are the most popular retail points in Pakistan. Other super markets include My Store, Aghaz, and Naheed etc. Of these, less than a dozen are international chain or their affiliates such as Makro and Metro. Another national chain of supermarkets is that run by canteen stores department (CSD). (Meer, 2008)

Modern Trade Centre (also called Hypermarket) is a very large commercial establishment that is a combination of a department store and a supermarket that offers a variety of nonfood items, such as appliances, clothing, and services, in a vast space much larger than a regular supermarket. These modern trade centers as opposed to traditional retail shops offers self service with electronic billing and credit, large area (space), more stock keeping units, feature of bulk buying/ inventory management and offers discounts (frequently passing it out to customers).

The professional, well structured, hygienic and clean atmosphere, well stocked all-under-one-roof merchandise, professional and courteous staff and fresh stock of products is why more and more people prefer to shop at these modern retail stores.

To influence impulse buying these modern trade centers invest a huge amount of money in advertisements and marketing of their stores new offers, discount and other related activities. These MTCs use print, electronic media and billboards to boost up their campaign and generate positive response (Business dictionary, Kazmi, 2009).

Research Purpose:

Impulse buying behavior is experienced by most of us when we visit any hyper market. We discuss a lot of factors which provoke us in making such impulse purchases but it is still unknown that what the forces behind the generation of stimuli are when we make purchases impulsively.

We will also figure out whether the factors which are so often considered when we discuss impulse buying are actually involved in impulse buying or there are other factors that provoke us in purchasing undecided products.

Let’s take an example of environment of the store, which plays a vital role here, as the consumers who come for shopping here, have some sort of specifications of the product in their mind if not the brand itself and they make purchases accordingly. Now customer is influenced by in store ambiance, here interesting thing to note is that this in store atmosphere may have different associations to different customers and it may vary customer to customer, hence all the variables associated with impulse buying may or may not have the direct influence on customers when they are out for shopping. It presents an interesting area for consumer research and we will try to provide in depth analysis of all the variables associated with impulse buying.

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