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Making Sudden And Unplanned Purchases Marketing Essay

Impulse buying refers to making sudden and unplanned purchases. Most shoppers intermittently engage in impulse buying (Welles, 1986). It is predominant for certain product categories (Abrahams, 1997) and more than fifty percent of mall shoppers are found to buy products impulsively (Nichols et al., 2001) indicating the significance of impulse buying to retailer's profits. According to The Economist (2000), through product recommendations, Amazon.com was able to achieve an almost quarter of its sales by encouraging impulse purchases. Even retailer’s cross-selling strategies and retailers up-selling strategies are linked with Impulsive buying. Under cross-selling strategy, retailers try to sell additional or related products to the product the customer is going to buy or which is already purchased (Levy and Weitz, 2007). Upselling strategy refers to as a retailer’s effort to sell a better product to the customer than already intended to purchase.

Impulsiveness is a life style trait of some consumers (Rook, 1987). They perceive impulse buying as a normatively wrong and attempt to control their innate impulsive tendencies (Rook and Fisher 1995). Nevertheless, consumers experience stronger feelings about impulse purchases than planned purchases (Gardner and Rook, 1988). The intensity of these feelings varies depending upon the ability of the individual to control impulse buying urge (Rook, 1987). It is being found that impulse buyers are less likely to consider the consequence of impulse buying (Rook, 1987). They are willing to buy ideas spontaneously (Hoch and Loewenstein, 1991) and more prone towards instantaneous gratification of purchasing the product. Consumers surmount their self-control and make impulse purchases if they think that such purchases make them feel better (Baumeister 2002). High-arousal emotions such as excitement and pleasure drive the Impulse buyers than non-impulsive buyers (Verplanken et al., 2005). They sometimes reward themselves with self-gifts to alleviate their negative mood (Mick and DeMoss, 1990). Moreover, impulse buying is being considered as valued pastimes rather than a serious endeavor of acquiring goods (Hausman, 2000). However, both positive and negative moods have a relationship with the impulse buyer (Rook and Gardner, 1993). Helpfulness of service personnel at the store also influences consumer willingness to buy (Baker et al., 1992).

Impulse buying occurs in a short time span and may occur once or recur more than once for the same consumer (Dholakia, 2000) after exposure to the product (Hoch and Loewenstein, 1991). Such decisions of impulsive buying are done hastily and quickly (Rook, 1987). Since Impulse buying behavior is stimulus driven (Rook and Fisher, 1995 ), both internal and external factors influence impulse buying (Wansink, 1994).

Consumers develop an urge to exhibit impulse buying behavior when they are increasingly exposed to external stimuli (Iyer, 1989) such as promotional incentives (Dholakia, 2000), offering suggested coordination and/or related items displayed with the particular product being viewed (Internet Retailer, 2003) and pleasant shopping environment (Anna S M & Jochen Wirtz, 2008).

Internal characteristics of the individual drive them towards the impulsive buying behavior. These include the degree of impulsive buying tendency (IBT, Jones et al., 2003), cognitive and affective states (Youn, 2000), consumer judgments about the appropriateness of making an impulse purchase (Rook and Fisher, 1995) and demographic factors (Kazan and Lee, 2002).

Review of Literature

The impulse buying is unplanned purchase behavior (Applebaum 1951) and is considered as immediate and mindless reactive buying (Langer, E. & Imber, L. 1980). ImpulsiThe buying is seen negatively in the society and is believed to affect personal finance, post purchase satisfaction and even self-esteem (Rook & Hoch, 1985). Customers adopt an impulsive buying as an alternative strategy for decision making due to information overload Angela Hausman (2000). Those who indulge in shopping as recreational activity are usually impulse buyers (Rook 1987).

I. Environmental or external factors

Retailers try hard to increase their sales through better product display and packaging (Jones et al., 2003). Modern day developments like 24-hour stores, Teleshopping and online shopping have increased the avenues for impulse buying (Kacen & Lee, 2002). Peck and Childers (2006) suggest that individual and environmental touch related factors increase impulsive purchase decisions. The customer’s self-assessment about the appropriateness of engaging in impulse shopping behavior and the presence of a good shopping environment significantly influence consumer buying behavior (Ogenyi Omar, Anthony Kent 2001). Even retailer’s cross-selling strategies and retailers up-selling strategies are linked with Impulsive buying. Under cross-selling strategy, retailers try to sell additional or related products to the product the customer is going to buy or which is already purchased (Levy and Weitz, 2007). Upselling strategy refers to as a retailer’s effort to sell a better product to the customer than already intended to purchase.

Price

Already in 1962 Stern suggested that those products with a low price or a short product life (fashion for us) will be more likely to be bought on impulse. As per the survey conducted by Ernst & Young (January 2000) even for online purchases price plays a major role in impulsive buying. It is believed that price encourages impulse buying in two ways. Price reductions, cost savings, or sales promotions can persuade an unintended purchase (Laroche, Pons, Zgolli, Cervellon, & Kim, 2003). The price factor is so important that a higher price may curb the impulse purchase (Thaler, 1985, 1999)

Variety

Customers make a decision to buy or not to buy a particular garment in two stages. In the first stage, they pick up the garments for trial based on fabric, style, color and pattern. The final decision to buy is influenced by apparel Fitting and how well it looked at the body (Molly Eckman et al. 1990). In addition, there exists a relation between variety seekers and impulsive buyers (Sharma Piyush 2009).

Display

Stern (1962) identified nine factors namely low prices, mass distribution, self-service, mass advertising, prominent store displays, low marginal need for an item, short product life, smaller sizes or lightweight, and ease of storage which influence purchase decision. He identified store displays as one of the most influential factors for impulsive buying. Similar studies have shown the importance of product display in product sales (Antony C. Cunningham, Norman J. O’Connor 1968).

The product that is seen most prominently is most likely purchased (Wilkinson, Mason, & Paksoy (1982). The position on the shelf improves the likelihood of consumer noticing the product which is not a part of their shopping list and improves the product sales considerably. (Iyer, 1989). Research (Desmet & Renaudin, 1998) indicates that it is not the size or the number of products which face the consumer but the position of the product on the shelf which decides its sale. Andrews (1999) suggests that direct-response advertisements motivate and give reasons for consumers to indulge in impulsive buying. The impact of in-store POP is felt across the world including the developing countries. Point of Purchase displays in the stores influence up to 70 % of unplanned buying decisions (Cosgrove, 2002; Lee, 2002).

There are many recent studies, which contradict the above findings and suggest that today’s Customers are more sophisticated and once powerful tool in the hands of retailers has lost its impact. The customers have developed immunity towards POPs as a result of continuous exposure (Miller, 2002). Also, a study by Andrew G. Parsons, (2003) supports the earlier study and concludes that traditional tools like fashion shows and display do not produce results either in store visits or sales.

Brand

In the civilized world, the purpose cloths are not restricted to keep us warm. They also communicate personality, the status of an individual (O’cass 2000). Thus, individuals want to purchase only those branded products that enhance their personal image in the society (Aaker 1999)

The bonds developed between a brand and the individual can be due to practical reasons such as an obligation or investment or due to emotional reasons such as liking, love or even addictive obsession (Fehr and Russell, 1991, Sternberg 1986, cited in Fournier, 1998). A study published in the Journal of Consumer Research (June 2008) has revealed that if customers are diverted while shopping, then they are more susceptible to make impulsive purchases for one brand over another.

“Of all the marketing variables it is the brand which received the most attention by consumers and is a key influence of their perceptions of quality” (De Chernantony & McDonald, 2003).

Service

Agarwal and Schmidt (2003) conclude that the listening ability of the service personnel significantly influences the impulsive buying decision of the customers. Anna S. Mattila, Jochen Wirtz (2008) studied that perceived crowding and employee friendliness affects unplanned buying. The extended services offered by retail stores like loyalty schemes, and loyalty cards affected consumer feelings resulting in loyalty (Steyn, P et al 2010). Study by Kuvykaite Rita (2009) observes that change in life styles has increased self-service and attractive packaging aid to induce impulsive buying. Whereas self-service stores fail to enhance customer purchase value in terms of money, both in short term and long term (J. Lee et al., 2001)

II Personal and Demographic factors

Individual Personality trait

Study by Cobb and Hoyer (1986) found that shopping life style and impulse buying behavior are closely related but this is true only for impulse buyers. Shopping lifestyle is exhibited by a purchaser who undergoes a series of personal responses and opinions about the purchase of products. The study also found that the impulse purchaser would not go about in picking the first brand spotted in the shopping mall. He falls in the middle of measurement tool used by researchers. A study conducted by Chou (2001); Han et al., (1991): Ko (1993) found that fashion involvement products are characterized by caste, repeated emotions and impulse buying consumer behavior. Fashion involvement products are apparels related to fashionable outfits. It seems that impulse buying may have a role in mood regulation process. It can be applied both for positive and negative mood conditions (Vohs & Faber, 2007). Study by Beatty and Ferrell (1998) revealed that individual difference variables such as IBT, shopping enjoyment and situational variables such as money and time availability influenced endogenous variables (urge to buy on impulse, in-store browsing and actual impulse purchases). Amanda Coley and Brigitte Burgess (2003) further showed that there exists a considerable difference between genders with respect to cognitive deliberation, unplanned buying, irresistible urge to buy, positive buying emotion and mood management. Even knowledge about new product and excitement promote impulse buying intention and behavior (Nukhet Harmancioglu et al. 2009). The study also found that consumers' excitement is positively related to impulse buying behavior. Further, impulse buying intention does not significantly mediate the relationship between impulse buying behavior and its antecedents. When one or more of the three antecedents (marketing stimuli, situational factors and impulsivity trait) are present at an adequate level than an irresistible urge to consume or consumption impulse is formed (Dholakia, 2000). The presence of peers influences impulsive buying and family member’s presence negates impulsive buying (X LUO. 2005) . Several research studies have indicated that customer personality traits can typify impulsive behavior(Beatty and Ferrell, 1998; Rook and Fisher, 1995; Weun et al., 1998). Study by Youn and Faber (2000) found that customer who lack cognitive controls do not indulge in purchases by impulse. Customers with high impulse buying tendency (IBT) are more likely to be affected by marketing stimuli such as promotional gifts, visual elements and advertisements. Customers are compelled to make impulse purchase when they experience irresistible urge to buy (Coley and Burgess, 2003).

The impulse buying involves intense feelings hence it is more of an emotional decision than rational and is directed towards immediate gratification (Hoch & Loewenstein1991).Whereas on the rational front it acts like a mechanism to reduce post purchase dissonance ( Babu & Gallayanee 2010)

Demographic factors

Impulse buying is dependent on factors such as income, age (Wood 1998), self-identity, gender (Dittmar, Beattie, & Friese, 1995) or emotional state of the customer (Rook and Fisher, 1995). Factors such as pocket money, gender and age influence IBT (Lin and Lin, 2005). The product category and involvement of the customer with that category influences impulsive buying to a greater extent (Jones et al. 2003). The knowledge of socioeconomic characteristics helps manufacturers decide on how to reach potential customers through image, price, point-of-sale material, competitions and bargain offers (Kennedy and Setchfield , 1984). Nguyen Yu K. Han et al (1991) showed that it was possible to predict the impulsive buying of apparels based on demographic variables and other shopping behaviors of customers. Helena M. De Klerk, Thea Tselepis (2007) found that most of the teenage girls were not happy with their apparel purchase decisions especially with respect to the fitting of the apparels due to their unrealistic expectations and lack of understanding about their body fit. Kwon and Armstrong (2002) suggested that the majority of the sports merchandise was bought purely based on identification with the team.

Age

An individual’s impulsive behavior tendencies have also been related to demographic characteristics such as a consumer’s age. Based on a national sample of adults in the United States, Wood (1998) found an inverse relationship between age and impulse buying overall. However, the relationship is non-monotonic — between the ages of 18 and 39 impulse buying increases slightly and thereafter declines. This is consistent with Bellenger et al. (1978) who found that shoppers under 35 were more prone to impulse buying compared to those over 35 years old. Research on trait impulsiveness indicates that younger individuals score higher on measures of impulsivity compared to older people (Eysenck et al., 1985) and demonstrate less self-control than adults (Logue& Chavarro, 1992) demonstrate. Because impulsiveness is linked to emotional arousal, this finding concerning the relationship between age and impulsiveness is consistent with studies of emotions and emotional control. Research shows that older individuals demonstrate greater regulation of emotional expression than do younger adults (Lawton, Kleban, Rajogopal, & Dean, 1992). These findings suggest that as consumer’s age, they learn to control their impulsive buying tendencies.

Income

The source of income plays a role in deciding whether the customer spends on high priced products or lower priced products. Customers with lower regulatory resources were ready to spend more on high priced products than those with more regulatory resources (Vohs and Faber, 2003). Less conservative young persons from the high - income class were more materialistic and were impulsive buyers (Abhigyan Sarkar 2008). However, study of Muhammad Ali Tirmizi et al., (2009) found that high income group of young people showed no association of having high impulse buying tendencies. These views are contradicting. According to Dittmar & Drury (2000), cost-economic model may not fit impulse buying behavior; however, psychological model may better do so.

Need for the study

More than 50% of the sales worldwide are impulsive purchases. Most of the researches in this area are conducted in Western countries (Cobb & Hoyer, 1986; Kollat & Willett, 1967; Rook, 1987). Since, impulsive buying is a complex phenomenon involving many social and cultural factors, many researchers have made an attempt to understand its significance in varied contexts like in Australia, Hong Kong, Malaysia and Singapore (Kacen and Lee, 2002),), Great Britain (Bayley and Nancarrow, 1998; Dittmar et al., 1995; McConatha et al., 1994), Singapore (Shamdasani and Rook, 1989), South Africa (Abratt and Goodey, 1990) and Vietnam (Mai et al., 2003)* including developing countries (Abratt & Goodey, 1990; Mai et al., 2004; Roberts & Martinez, 1997). Many retail theories, which worked well in the developed world, have failed in India.

A study by (Bellenger et al., 1978) has found that apparel shopping is frequently purchased by impulse and is prevalent in most product classes. Park and Lennon (2004) found out that Teleshopping of apparels was positively associated with Teleshopping exposure and Para social interactions. The Indian apparel sector is having tremendous potential and research studies pertaining to this sector with respect to impulse buying have not been carried out. This gives an opportunity to undertake this study.

Rationale for selection of geographic area for the study

Today, the Indian retail industry in value at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015 [1] . Still the industry is fragmented and dominated by unorganized players. Many Indian corporate houses are establishing malls and supermarkets to tap this emerging market. The retail industry in India is in cross roads. One side is the untapped market with huge scope for profits and the other side is heavy initial investments, stringent government regulation with respect to foreign investments, limited markets due to changing demographics, infrastructure bottlenecks .Etc.

The Indian demographics are witnessing a significant change. Most of the people in India are younger with a median age of 24 years [2] . The lifestyle of many urban residents has changed due to increased per capita income, preference for nuclear families and increasing working-women population. This has resulted in frequent purchases by individuals and families.

After the liberalization, customers are exposed to many national and international products and brands. The whole concept of shopping has changed and customers are expecting better retail formats, products and services. To cater to this segment many shopping centers, multi-storied malls and huge complexes have been set up offering shopping, entertainment, food and related services all under one roof.

Every retailer is trying to sell the same set of brands, services and product merchandise. The retailers are designing their offerings to attract, retain customers and to differentiate. The tools include mannequin display, lighting, music and special discounts to make customers buy the items that are not on their purchase list.

The changing demography coupled with economic independence at early ages making youngsters and middle aged to spend more on products like apparels, fashion accessories, mobiles and other gadgets. The problems faced by retailers are complex as customer preferences change every 25 km and for every 105 rise in price loyalties change. More number of customers prefer branded products over Unbranded. An estimate by McKinsey, the branded apparel market is worth $ 1 billion.

Goa is one of the established branded apparel markets. It is also a world tourist destination with more than 80% of the tourists visiting Goa among those who visit India. The population of Goa is metropolitan and customers from Goa have access to the latest fashion. Customers spend a good amount of money on apparels and fashion accessories, as they are one among the highest per capita states in India.

The Goa Government decision to attract more investments into the state without damaging the environment has opened door for non-resident Goans. For the last five years, retail has grown consistently at about eight to ten percent. Many companies and business establishments have shown interest in establishing restaurants, coffee shops, boutique shop, art galleries , salons, lifestyle stores, spas , destination stores, showrooms etc. resulting in increased completion.

We believed, selection of this location will help us to understand impulse buying of apparels by both Indian and Foreign nationals.

The study was conducted at Acron Arcade, Goa. This store was selected due to its location, type of merchandise, and access to heterogeneous customer groups from both India and foreign countries. The store is one of the Goa’s leisure retail destinations. It is located in Candolim, one of the prominent beaches of Goa. About 250,000 foreign visitors and about 500,000 [3] Indian tourists visit the beach every year. The store has about 2500 hotel rooms around giving easy access to tourists. The arcade attracts both locals as well as foreign tourists. The store deals in premium lifestyle products which include apparels, leather accessories, personal care products, fine arts , gift articles, books , home décor items and even furniture. The presence of many big departmental stores around it makes the study more relevant.

Objectives of the study

The objective of this study is to explore the incidence of impulse buying behavior with respect to factors such as promotion displays, variety, price, brands and service.

The following objectives have been set for the study:

To know whether promotion displays in store influenced customers to make on the spot unplanned purchases.

To understand whether, more variety of apparel in the shop influenced customers to buy impulsively.

To identify whether, the price of the apparels influenced customers to make impulsive purchases.

To discover whether, the brands available at the store made customers buy impulsively.

To study if the services offered at the outlet influenced customers to make impulse purchases.

Hypotheses of the study

There is no association between the display and impulsive buying behavior of apparels.

 H0: PId=PNId H1: PId≠ PNId

There is no association between variety and impulsive buying behavior of apparels.

H0: PIv=PNIv H1: PIv≠ PNIv

 

There is no association between price and impulsive buying behavior of apparels.

H0: PIp=PNIp H1: PIp≠ PNIp

There is no association between brands and the impulsive buying behavior of apparels.

H0: PIb=PNIb H1: PIb≠ PNib

There is no association between service and the impulsive buying behavior of apparels.

H0: PIs=PNIs H1: PIs≠ PNis

Where, PI= Impulsive buyer, PNI= Non-impulsive buyer, d= Display, v= Variety, p= Price, b=Brand, s= Service.

Research Methodology

This study made extensive use of both primary and secondary data .The variables used to study were displayed, variety, price, brand and service. These factors were finalized based on focus group interviews with retail managers. Five-point scale was used to measure the customer response. After a pilot survey, 200 respondents visiting the store were interviewed using a structured questionnaire. Due to response error, 27 questionnaires were rejected. The data were analyzed for 173 respondents using Chi square due to its versatile applications at the 5% significance level and with 1 degree of freedom.

One of the two interviewers was stationed at the supermarket exit to select a shopping party leaving the supermarket after making some purchases. The respondent was qualified by determining whether they were carrying any shopping packages and their willingness to participate in the research. After introduction, the second researcher administered the questionnaire through a personal interview. The questionnaire was completed and filled by the researcher herself. The interview was terminated by thanking the respondents for their participation.

Findings and analysis:

Table No.1 gives the summary of the respondents .The majority of the respondents was aged between 26 and 35 and most of them had their annual income between 2 – 4 lakhs. The survey was slightly dominated by female members with 53%. Type of the buying among respondents was balanced, with a slight shift towards impulsive buying (55%).

Table No 1. Profile of the respondents

Age

%

15-25 yrs

18.5

26-35yrs

43

36 and above

38

Income

0-2 lakhs

28

2-4 lakhs

60

4 lakh and above

12

Gender

Male/Female

47/53

Buying Approach

%

Impulsive

55

Planned

45

Source: Primary data

Impact of display on impulsive buying

Source: Primary data

Retailers are seeking new ways to convert shoppers to buyers. Ads can get consumers into stores but it is usually some POP strategies which can make customers to buy the product. The main goal of POP displays is to influence and make customer to buy the product. Because of such POP strategies, majority of the consumers are making purchasing decisions at stores. POP materials are tickets to capitalize on the impulse buying behaviour. A POP display also establishes popularity of specific brands of products.

Table No.2 Impact of display on impulsive buying

Chi-Square Tests

Value

Df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

2.792

1

.095

Continuity Correction

2.294

1

.130

Likelihood Ratio

2.791

1

.095

Fisher's Exact Test

.118

.065

Linear-by-Linear Association

2.776

1

.096

N of Valid Cases

173

A Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 30.66.

Table No.2 shows the details of those who were influenced by POP displays. The values of χ2 = 2.792 suggests that there was no association between buying behavior and display. This finding is in contradiction to the earlier studies, which concluded that display influenced purchase decisions. However, supports the recent studies (Miller, 2002, Andrew G. Parsons, 2003) which propose that the impact of traditional tools like POP have lost their appeal.

Impact of Product Variety on impulsive buying

Source: Primary data

The role of variety on purchasing behaviour is shown in table No.3.It was observed that Variety influenced 63.6 % of the purchases and 54.9% of the customers purchased impulsively.

Chi-Square Tests

Value

Df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

8.140

1

.004

Continuity Correction

7.256

1

.007

Likelihood Ratio

8.306

1

.004

Fisher's Exact Test

.007

.003

Linear-by-Linear Association

8.093

1

.004

N of Valid Cases

173

A Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 27.95.

In instances where customers shop for a few number of items they plan well ahead and there are little chances of impulse buying. This can be because as customers plan for larger items they try to economize on their time and effort – hence impulse purchases. However, when customers shop for a large number of needed items or engage in random shopping, they are more inclined to engage in impulse buying. Our findings from table No 3 show that as the variety of products increases, the difference between actual and intended purchase decisions do vary as a result consumers indulge in impulsive buying to reduce the overload (χ2 =8.14 ) This finding supports the earlier studies Angela Hausman (2000).

Impact of Price on impulsive buying

Source: Primary data

The findings suggest that price played an important role in deciding whether customers brought impulsively or not. The proportion of respondents influenced by price was much more than those who were not. However, from the above graph it is clear that the proportions between planned and unplanned did not play very significant role (χ2 =0.05).This finding does not support the view of Stern 1962 that products with a low price or a short product life (fashion for us) will be more likely to be bought on impulse as the price of merchandise is maintained the same throughout the year irrespective of tourist season. In addition, one more reason could be that the prices of the brands offered by the store are slightly on higher side and price factor is so important that a higher price might have curbed the impulse purchase (Thaler, 1985, 1999)

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

.887

1

.346

Continuity Correction

.460

1

.498

Likelihood Ratio

.882

1

.348

Fisher's Exact Test

.432

.248

Linear-by-Linear Association

.882

1

.348

N of Valid Cases

173

A Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.21.

Impact of Brand on impulsive buying

Source: Primary data

Table No.5 shows the role of brand in apparels purchase. More than 59% of the respondents made their purchases because of their favorite brand.45.1percentage of the customers plan their purchases when they purchased their favorite brands. These findings are not significant (χ2= 0.619).

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

.619

1

.432

Continuity Correction

.399

1

.528

Likelihood Ratio

.618

1

.432

Fisher's Exact Test

.443

.264

Linear-by-Linear Association

.615

1

.433

N of Valid Cases

173

A Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 32.46.

This finding is not in line with many empirical studies which concluded that 75 % of consumers are planned buyers but among them more than 60% make brand purchasing decisions after they enter the store and 20% of shoppers switched from their intended brand in-store [4] .As it is explained that the shop offers exclusive brands at no markup price, this could not have any influence on the customers to buy. Suggesting that the customers are very much brand loyal or were not influenced by the brands available in the store.

Impact of Services on impulsive buying

Source: Primary data

Table No 6 shows the Role of services in unplanned apparel purchasing. 54.9 percent of the customers were impulsive buyers and 67.05 percent of the customers were influenced by the services.

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

21.388

1

.000

Continuity Correction

19.997

1

.000

Likelihood Ratio

21.840

1

.000

Fisher's Exact Test

.000

.000

Linear-by-Linear Association

21.264

1

.000

N of Valid Cases

173

A Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 37.87.

The findings were in line with the earlier studies (χ2 =21.388) which concluded that services influenced unplanned purchases ( Agarwal and Schmidt 2003 and Anna S Mattila et al 2006 and Steyn, P et al 2010).This also an indicator of growing importance of services.

Impact of Demographics on impulsive buying

Gender

Source: Primary data

This table indicates that men plan before entering shopping markets than females. Men (31.2%) economize on their time and efforts and stick to their needs and decisions. Females (13.2%) do not plan extensively before entering and are more inclined to be attracted to in-store stimuli.

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

32.021

1

.000

Continuity Correction

30.312

1

.000

Likelihood Ratio

33.013

1

.000

Fisher's Exact Test

.000

.000

Linear-by-Linear Association

31.836

1

.000

N of Valid Cases

173

a Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count is 36.52.

There is an association between Gender and type of buying (χ2 = 32.021). Majority of the fairer sex were impulsive buyers. This is in line with earlier study conducted by Amanda Coley and Brigitte Burgess (2003). Kollat and Willet (1967) found that women tend to engage in more impulse buying as compared to men. It is also argued that women because of their propensity to shop more in general, make purchases that are more impulsive.

Age

Source: Primary data

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Pearson Chi-Square

18.747

3

.000

Likelihood Ratio

20.040

3

.000

Linear-by-Linear Association

.629

1

.428

N of Valid Cases

173

a 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.66.

On further analysis, it was found that age played a major role in buying of apparels. Most of the impulsive purchases were made by young respondents aged between 15 yrs to 25 yrs. (χ2 = 18.747). This finding was natural as young spend maximum on their fashion apparels and tend to be carried away by the offers, peers and any promotional activity.

Income

Source: Primary data

The income of the customer decided largely how much she would spend and whether she can sustain after unplanned buying, study revealed the same. Income play a significant role in deciding whether the customer planned her purchases or brought impulsively (χ2 = 17.196 at 6 degree of freedom).The above findings are in line with the study conducted by The Tuyet Mai et al (2003).

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Pearson Chi-Square

17.196

3

.001

Likelihood Ratio

19.562

3

.000

Linear-by-Linear Association

15.966

1

.000

N of Valid Cases

173

a 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.21.

It is observed that the customers with higher income were impulsive buyers. Betty and Ferrel (1998) Abhigyan Sarkar (2008) in line with the earlier study conduct this finding. This could be because most of the customers were young and were on holiday with good amount to spend.

Conclusions

Though impulsive buying is seen negatively in the society, yet customers perceive to experience stronger feelings about impulse purchases than planned purchases. Modern day developments like 24-hour stores, teleshopping and online shopping have increased the avenues for impulse buying. Marketers use impulse buying as a strategy for cross selling and up selling of the products. It is stimulus driven and is believed to affect personal finance, post purchase satisfaction and even self-esteem. Customers adopt an impulsive buying as an alternative strategy for decision making due to information overload.

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