1

CHAPTER 1

INTRODUCTION

The “Bird of Gold from 1000 years ago is destined to fly again,” as the great Indian middle

class bulges upward into the consumption sweet spot. These words from Mckinsey Global

Institute report (May, 2007) point towards a paradigm shift in the Indian market‟s

consumption pattern. This also leads towards the conclusion that with India‟s continuation on

its current high-growth path over the next two decades, the market is bound to undergo a

major transformation. The change is going to be more evident as the income levels are going

to increase thrice leading to India‟s climb from its position as the twelfth-largest consumer

market today and become the world's fifth-largest consumer market by 2025.The market

liberalization, which is leading to this change in consumers‟ behaviour is going to be one of

the major contributor in transforming retail and its emergence as a key sector. The following

chapter presents the evolution of organized retail in India and the related phenomenon of

consumer behaviour i.e impulse buying as an outcome.

1.1 ORIGINS OF ORGANIZED RETAIL IN INDIA

The emergence of organized retail in India dates back to the pre-independence era when the

country‟s established business houses, mostly textile majors, ventured into the retail arena

through company-owned or franchisee outlets. There were also exclusive tailoring shops, for

instance, that ultimately expanded their span of operations to become leading regional

fashion retailers – Mumbai‟s Charagh Din, Kolkata‟s Burlington, Delhi‟s Mohanlal and Sons

and Bangalore‟s PN Rai, to name a few. It is worthwhile to mention that southern India took

the lead not only to establish the organized retail chains in the food and grocery (F&G)

segment but also in the consumer durable segment.

This expedition of expansion of organized retail was further facilitated by developments in

the real estate scenario as the country‟s first 5 00,000 sq.ft. Shopping centre from Mangal

Tirth Estate called Spencer Plaza came up in 1990. This was to be followed nearly a decade

2

later by Mumbai‟s Crossroad mall (150,000 sq.ft.) from Piramal Holdings and New Delhi‟s

Ansal Plaza (200,000 sq.ft.) from Ansal Properties & Infrastructure in 1999.

As such the ongoing journey of organized retail in India can be broadly classified into four

main phases.

* Retail Initiation (pre 1990s)

* Retail Conceptualization (1990-2005)

* Retail Expansion (2005-2010) and

* Retail Consolidation (2010 onwards)

Retail Initiation:

The initial evolution of modern retail in India primarily transpired through established textile

major‟s forward integration in retail. This phase was essentially dominated by the

manufacturers establishing their presence in retail. The key players during this era included

Bombay Dyeing, the Raymond Group, the S Kumars Group and Bata to name a few. Central

and State Government departments and co-operative bodies such as the Public Distribution

System, Mother Dairy, Kendriya Bhandar, Super Bazar, etc., also played a key role in the

India retail market as prominent retailers. Besides, these early years also saw emergence of

regional chains primarily in the southern region and some of these chains later established

their nationwide presence.

Among major textile houses that made an early mark, Bombay Dyeing is prominent to

mention. The Group‟s activity goes back to the late years of 1800 when Bombay Dyeing

started a chain of over 600 Exclusive Brand Outlets (EBOs) across India. The Raymond

Group on the other hand was set up in 1925 and was another textile major, which ventured

into retailing in the 1950s and eventually became one of the country‟s major retailers, with a

number of apparel brands in its folds. It is pertinent to mention that today Raymond has over

390 stores across 180 cities in India. Founded in 1948, the S. Kumars Group represents yet

another textile major, which was a pioneering retail venture of India.

3

Apart from textile and fashion houses, a number of organized food and grocery (F&G)

businesses have a long history like the Bangalore-based F&G chain, Nilgiri‟s, that started in

the early 1900s as the bakery chain, it is today one of the finest retail chains in southern India

that works on both company owned and franchisee store models. Another major F&G player,

Foodworld, was the first national retail chain from the RPG Group. Despite being a Kolkata-

based business house, the first Foodworld supermarket was set up in Chennai in 1996.

Figure 1.1: Phases of Organized Retail

Source: Technopak Analysis Pvt. Ltd

These remained the only organized retailers in the country for quite a long time, till the post

1990‟s period saw a fresh wave of entrants in the retailing business.

Retail Conceptualization:

The threshold of the 1990s saw a new beginning in the retailing business. This time around it

was not the manufacturers looking for an alternative sales channel, but pure-play retailers

who entered the retail market, to expand pan-India, for instance Pantaloons, Shoppers Stop

and Lifestyle. It is interesting to note that most of the new retailers in this era focused mainly

on apparel and other related fashion categories.

4

An important occurrence during this time was the liberalization of the Indian economy and

opening of entry opportunities for foreign brands/retailers. The first generation of

international brands to make an entry during this phase included McDonald‟s, Benetton, Levi

Strauss, VF Corporation, Adidas, Reebok and Nike, to name a few.

Retail Expansion:

As the name suggests, this is perhaps the most active phase of the Indian retail industry in

terms of growth, entry of new players and development of new formats. A growing middle

class, increasing disposable income as well as a large and young consumer population has

resulted into a rapid growth in the Indian retail market.

Having realized the vast potential of the relatively untapped domestic market, large industrial

conglomerates like Mahindra and Mahindra, Reliance, Tata, Aditya Birla and Essar entered

the Indian retail arena during this period. Most of these groups committed large investments

in the retail sector and planned to establish pan- India brands which enjoyed significant

success in the following years. Their success brought in global retailers such as Metro AG,

Max Retail, Shoprite, Hypercity, etc. and more recently the retailing giants like Carrefour,

Tesco and Zara have also forayed their Indian entry and are optimistic about their growth in

this market, whereas others like Bharti-Walmart, Spar, Debenhams and Mother Care have

already established their presence here.

Apart from large conglomerates and international retailers, a number of regional players

particularly in the supermarket segment have also geared up activity. The period has seen the

emergence of new formats like cash and carry, large format discounters, food courts,

multiplexes, children‟s play zones and gaming zones.

On the real estate front there has been a frenetic activity with a large number of malls

proposed/developed across major metros‟ and upcoming tier-II-cities. The size of the malls

has also undergone rapid transformation from an average size of 150,000-200,000 sq.ft. to

5000,000-1,000,000 sq.ft.

This rapid growth has also attracted the luxury product segment in an environment of

economic liberalization along with rising purchasing power parity (PPP) index of domestic

5

consumers. The most important categories of luxury goods, which have attracted the

consumers are high-end automobiles, electronics and other home improvement products,

besides fashion, lifestyle and fine dining. Global luxury brands (such as Louis Vuitton, Hugo

Boss, Salvatore Ferragamo, etc.) were retailed in India from late 1990s. However, till about

2005 they were retailed only through franchisee agreements, due to the absence of any policy

permitting Foreign Direct Investment (FDI) in single brand retail. With the FDI policy 2005-

2006 allowing single-brand foreign retailers to assume a stake upto 51% in a joint venture

with a local firm, the successive years saw entry of several premium brands (Giorgio Armani,

Versace, Gucci, etc.) mostly through joint ventures.

Despite these developments the luxury retail did not show the kind of growth envisaged. One

of the main reasons for this was the lack of a luxury retail environment. There was an evident

lack of premium spaces for premium brands which as a result of which the early entrants

restricted their presence to star category hotels in key cities only. More recently, exclusive

retail space options like The Collection at UB City, Bangalore and DLF Emporio in Delhi,

surfaced, other than star hotel plazas showing evident signs of growth.

Retail Consolidation:

The phase now anticipated in the wake of the ongoing global turmoil is one of consolidation.

According to a recent KPMG report (Indian Retail: Time to Change Lanes), the organized

retail sector witnessed an 11% decline in sales in 2008. Considering the challenges faced by

the industry at present, retail chains are likely to focus on consolidations to cut costs and

survive in the market. In the present scenario, companies are increasingly concentrating on

strengthening existing operations while assessing growth options through consolidation.

1.2 ORGANIZED RETAILING AS AN EMERGING SECTOR

India is one of the largest emerging markets in terms of population and purchasing power and

has been identified as the third most attractive retail destination globally from among thirty

emergent markets (A.T., Kearney, 2010). The statistics have revealed that retailing as a

whole contributes to 10% of India‟s GDP, and almost 8% of total employment (Report by

Research and Markets, 2011). Thus, suggesting the fact that the Indian retail industry has

strong linkages with the economic growth and development of the economy. Hence,

6

liberalization of the economy, rise in per capita income, improved infrastructure, growing

consumerism, retail attributes and effective marketing strategies of the retailers are the

factors which have a key role in the development of organized retail in India.

While referring to the evolution of organized retail, it can be said that with the relaxation of

policies and introduction of market liberalization, the sector started emerging into one of the

potential growth areas of Indian economy. It is so due to the fact that this sector drew

benefits of liberalization, as the government encouraged higher inflow of FDIs into the

country. During that time almost 90-95% of the retail sector was unorganized, thereby giving

an opportunity to the sector to flourish by encouraging many Indian industrialists to enter

into organized retail sector. Therefore, the sector reached its peak growth in 2006, due to the

acceptance of the organized retail formats by the consumers, as there was greater exposure to

foreign brands. Consequently, the retail shopping districts started developing and more

shopping centres, lifestyle malls and shopping complexes emerged offering the people

shopping, entertainment and food chains at the same place. This concept first took shape in

tier I cities but soon it spread into tier II and III cities as well.

As per the data released by ICI (Investment Commission of India), the organized retail

market size was to the tune of US$12.1billion in 2006, accounting for 4.6 per cent of the total

retail segment. This late diffusion and low share of modern retail has been mainly

attributable to the severe restrictions on foreign direct investment (FDI) for retailing in our

country till the end of 2005. The demand side characteristics such as moderately high

economic growth, ever expanding middle and upper class consumer base, high urbanization

rate, increasing share of women in workforce and greater availability of personal credit have

been the key factors favourable for a greater penetration of modern retail in the economy. In

January 2006, India allowed foreign companies to own up to 51 per cent in single-brand

retail joint ventures (JVs) thereby further pushing the growth of organized retail. This trend

has continued till date and the growth in organized retailing in the present decade may be

gauged by the rise in number of shopping malls, which is also an evident indicator of growth

in the sector.

7

On a global platform, organized retail captures about 52% of total retail sales with developed

nations like US, UK, Germany and France constituting 80% or more of total Retail sales

(Indian Retail Industry report, May 2010). Whereas, in India the organized retail market is

estimated at US$ 26 billion and accounts for approximately 6% of the overall retail market

(Technopak, 2011), which highlights tremendous potential for growth in this particular

sector. However, it is projected to grow to US$ 84 billion by 2016, at a CAGR of 26%

(Technopak, 2011) as shown in the figure 1.2 below. Presently, with the relaxation of FDI

norms pertaining to the retail sector, the modern retail market is expected to grow at a faster

rate.

Figure1.2: Organized Retail Market in $ US bn

84 CAGR 26%

CAGR 21% 26

10

2010 2011 2016

Source: Technopak Analysis (2011)

In addition, there has been a creeping internationalization of retailing in the recent past. As

home markets have saturated, the big modern retailers from developed countries have started

turning to new emerging markets like India. However this development has a flip side, as

concerns have been raised that the growth of modern retail is going to have an adverse

impact on retailers in the unorganized sector. However, a recent study (2008) undertaken by

the Indian Council for Research on International Economic Relations (ICRIER) and

commissioned by Department of Industrial Promotion and Policy (DIPP), Ministry of

Commerce & Industry, Government of India has shown that there is going to be a positive

sum game in the retail sector in India where both organized and unorganized retail segments

8

are going to not only coexist but also grow substantially in size. Therefore, it is expected that

a positive environment is likely to be prevalent in the economy driving the organized retail

on a high growth path.

Figure: 1.3 Organized Retail Penetration

Total Retail 2009-10A 2014-2015P

Rs.18.3trillion Rs. 36.9trillion

Growth in Organized Retail

Organized Retail ORP Rs. 1.2 trillion Rs. 3.4 trillion

6.4 percent 9.1 percent

From the above, it can be inferred that the Indian retailing sector is at a point where the

growth of organized retailing as well as consumption by the Indian population is set to take a

higher trajectory. This growth can be seen in the form of multiple modern formats being

opened up in urban as well as semi-urban areas.

1.3 GROWTH DRIVERS OF ORGANIZED RETAIL IN THE COUNTRY

Indian retail is witnessing a confluence of several favourable factors such as steady economic

growth, favourable demographics, easy availability of credit, investments in infrastructure

creation, and supply of real estate and malls. This, coupled with low penetration has created a

base for the next big leap of growth for the organized retailing industry. The organized retail

in India is at the helm of action with robust growth in the economy trickling down to every

segment in the country and the direct beneficiary of this effect is the consumer. In the last

few years, the country has seen evolution of a large and growing consumer group, with tastes

and preferences vastly different from the older set of consumers. The new consumer group is

across the country and is well-equipped to lap up modern retailing trends. Aiding the robust

9

demand scenario, created by the attractive consumer set, is the investment in supply chain

and real estate that will take organized retail across the country.

The driving forces for the retail sector have been increasing over a period of time. An

increase in the level of urbanization, increase in participation rate of women in the labour

force, taste and personal consumption expenditure have contributed to the growth of retail

industry in India. Broadly, the key drivers of growth of organized retail in modern India can

be classified into two main factors:

1. Demand Side Factors: These are the factors which originate from the consumer and help

in driving organized retail.

2. Supply Side Factors: These are the factors which initiate from the retailers and help in

driving organized retail.

1.3.1 DRIVERS OF ORGANIZED RETAIL IN INDIA - DEMAND FACTORS

1.3.1.1 Growing Young Population

India is one of the youngest and largest consumer markets in the world with a median age of

around 25 years, which is the lowest when compared with other countries like U.S, China,

Indonesia, Brazil, Japan and Germany (HSBC and Business Today, March 2010). According

to the US Census Bureau, India‟s median age is going to be 28 by 2020. It is expected that

over 53% of the population will be under the age of 30 by 2020, which means that the

potential for the Indian retail segment will be enormous

(http//www.dnb.co.in/IndianRetailIndustry/Overview.asp). The population in this age group

is more dynamic as their consumption pattern is driven by wants rather than needs. Thus, the

organized retailing, which thrives on lifestyle products, is expected to receive a boost

because of the young population by 2020. A large proportion of the working-age population

translates to a lucrative consumer base vis-à-vis other economies of the world, placing India

on the radar as one of the most promising retail destinations of the world.

10

Table 1.1: Proportion of Young Population

Country India China Indonesia US Brazil Japan Germany

Age

Below 25

years

53% 42% 30% 30% 29% 27% 26%

Source: HSBC and Business Today (March, 2010)

1.3.1.2 Rising Disposable Income

The consumer of today, whom the multinationals are targeting, is popularly known as the

aspiring India where the middle income segment is growing faster than ever. As, the

economy is opening new avenues for employment in IT/ITES and other sectors where

employees are provided attractive compensation packages and perks, it has resulted in an

increase in disposable income. Thus, favourable demographics and increasing incomes have

changed the face of Indian consumerism with the Indian middle-class redefining lifestyle

patterns due to adoption of western culture and increased brand consciousness.

Owing to a rise in urban population as well as a rapid per capita income growth, the

aggregate urban consumption in India has been growing steadily over the past few years. The

NSSO survey report of 2011 explicitly states that the monthly per capita expenditure

(MPCE) level of the urban population has been on an average 88% higher than the rural

counterparts. This rise in monthly per capita expenditure level is also one of the important

drivers of organized retail.

Therefore with an increase in the disposable income, there has been a shift from save attitude

to spend attitude and since large varieties of products of different brands (domestic as well as

international) are available in malls, Indian consumer is moving from local kirana shopping

to Mall shopping. (Ernst & Young Research-2009).

11

Figure 1.4: Confluence of Favourable Factors

Source: ICRIER Retail Report 2008, Angel Research

1.3.1.3 Increasing proportion of working women resulting in higher discretionary

spend

The number of working women, as a percentage of the total female population, has risen

from approximately 12% in 1961 to close to 25% in 2005 ( Edelweiss Report, 2008). Further,

there has been a 20% increase in the number of working women in the last decade (Dun and

Growing Young Population

Rising Disposable Income

Increasing number of working women

Changing Consumer preferences and shopping habits

Demand Side Factors

Retail Supply Side Factors

Real Estate Development

Easy Availabilty of Credit

Development of Supply chain improving efficiencies

Government Regulations

12

Bradstreet Research, 2008). This has resulted in growing disposable income, which in turn

has lead to an increasing retail spend. It is estimated that the propensity to spend in case of

working women is 1.3 times higher as compared to housewives. Also, the buying behaviour

of working women differs from that of housewives. This has resulted into rising income

levels of the female population thereby opening a whole new genre of retailing formats and

products, catering exclusively to women. Further, the increase in the number of working

women has fuelled the growth in sale of discretionary items. In 2008 India‟s working

population (in the 15-49 years age group) constituted around 53% of the population as

compared with 48.6% in UK, 49% in US, and 53% in Russia

Figure 1.5: Working Women Demographics

Source: US Census Bureau

It has been viewed that in households with working women there is a greater work pressure

and increased commuting time, this has resulted in the focus being shifted to convenience

and comfort and an increased trend of shopping at malls.

1.3.1.4 Changing consumer preferences

Over the years, consumer awareness about quality and price of products/services has

increased due to increasing level of literacy in the country and growing exposure to the

developed nations via satellite television or overseas work experience. Consumers are

13

increasingly becoming more vocal about the quality of products/services that they expect

from the market. This awareness has made the Indian consumers seek more reliable sources

for purchases, and hence, the logical shift to buying from organized retail chains with

established corporate backgrounds and pronounced accountability.

The consumers also prefer to buy from a place, where their feedback is more valued. The

organized retail format promises consumers better quality and better shelf-life for products

due to their excellent storage facilities and anti-tampering checks. An important factor

attracting consumers towards formal retailing mechanisms such as hyper marts and

departmental stores is the shopping experience. These shopping outlets allow consumers to

explore their choices and touch and feel the products in a comfort of glitzy and energetic

environment, something a kirana or mom and pop stores have never been able to offer.

In the last four to five years, the Indian market has witnessed a strong shift towards branded

products. The revenue from essential commodities has been steadily falling over the years,

whereas the consumption of discretionary products has been growing at a healthy pace. In

addition to this category, the share of communication, entertainment and personal care

consumption has also shown a rising trend over the years. Indian consumers have now begun

to believe that branded goods signify better quality and offer greater value for money, and are

not just for the elite class. Moreover, the rising reach of media coverage is enhancing

consumer awareness about products, their prices and services, which further is likely to

encourage growth in the organized retail segment. Therefore, the retailers need to take

advantage of this growth and aim to grow, diversify and introduce new formats.

The consumers‟ mindset is a paradox of value and lifestyle. For modern retail to succeed, it

has to effectively cater to both these aspects effectively. Though, with rising disposable

incomes, the consumers will adopt modern retail willingly, however this adoption is bound to

depend on how well the needs of service, quality, and value perceptions are met. Hence,

modern retailers are investing substantially in logistics, and supplier networks, to ensure that

they get products at the best possible prices (by eliminating wastage and middlemen) and in

the best packaged forms, to attract the value buyer. They are offering the best possible

14

brands, best quality, and best service, either individually or through joint ventures, to attract

the lifestyle buyers also.

Thus, change in consumer lifestyle with a steep rise in the value of time, change in the Indian

family structure from large joint families to nuclear ones, and an increasing level of quality

awareness have made the case for organized retailing stronger. The traditional retailing

format has largely been limited to meeting the changing requirements of the consumers.

Nowadays, the consumers, however, want value, convenience and a wide variety of

offerings, coupled with a pleasant shopping experience. This paradigm shift has created an

opportunity for modern retailing formats to emerge and plug the existing gaps.

Hence from the above, it may be inferred that the prime reason for a paradigm shift in the

shopping attitude of the Indian consumer is the change in their preferences and tastes. Due to

the increasing use of IT and telecom, Indian consumers have become aware of brands and

shop for lifestyle and value brands according to the need and occasion. Consumers will

continue to drive the growth in the organized retail by expanding the market and compelling

retailers to widen their offerings in terms of brands and in terms of variety. (Dun and

Bradstreet, 2008)

1.3.2 DRIVERS OF ORGANIZED RETAIL IN INDIA—SUPPLY SIDE FACTORS

1.3.2.1 Easy Availability of Credit

There has been a radical change in the Indian consumers' mindset regarding credit. With the

easy availability of credit and declining interest rates, personal credit has witnessed growth.

The boom in financing has resulted in an increase in spending on housing and consumer

durables such as two-wheelers and cars. In addition, the use of plastic money (credit and

debit cards) has increased significantly in the last three four years. In fact the ease of

payments (ability to spend without cash) due to the use of credit and debit cards, has also led

to an increase in total spending on shopping and eating out. Indian consumers are

increasingly using credit cards for shopping as well as dining. According to Euro monitor,

India is the second fastest growing Financial Cards market in the Asia-Pacific region. They

account for over 45 per cent of retail expenditure and are expected to touch 65 per cent over

15

the next three to five years (Business Line, August 2010). Thus, with the acceptance and

increase in the number of electronic data converter machines installed in retailing outlets,

credit and debit cards have further enhanced the organized retail.

To capture the growing consumption, banks and lending institutions have designed and

customized loans to suit the requirements of consumers. Personal loans have become the

order of the day and the competition in the space has only made it better for the consumer.

Attractive rates and convenient repayment options have made available a lot of money in the

hands of people, which is also driving the consumption.

1.3.2.2 Real Estate Development

According to the 2011 Census, the urban population has grown to 377 million showing a

growth rate of 2.76% per annum during 2001-2011 which clearly indicates that the level of

urbanization in the country as a whole has increased from 27.7% in 2001 to 31.1% in 2011.

Historically cities and towns have been the driving force of overall economic and social

development. Currently over 335 million people of India reside in cities and towns, which

translates to around 30% of the total population

(http://www.scribd.com/doc/63436279/Emerging-Pattern-of-ion-in-India). The rapid growth

in urbanization along with the availability of real estate has further facilitated organized retail

in India.

As retail and real estate are the booming sectors of India in the present times, both these

sectors are mutually dependent on each other. This is corroborated from the fact that through

1990‟s organized retail in India added only 1 million sq. feet. of space and as a result, in

1999 it had just 3 shopping malls. However, from 2001 the pace gathered great momentum

as 10 million sq.feet was added in 2003 alone. By the end of 2006, the total mall space rose

to 28 mn.sq.feet. with an average annual addition of 3.9 mn.sq.feet. Post 2006, on an average

8 mn.sq.feet. retail space has been added annually, taking the mall space to over 52

mn.sq.feet by the end of 2009. Between 2010 and 2012, the organised retail real estate stock

has been more than double from the existing 41 mn.sq.ft. to 95 mn.sq.ft. The supply of

organized retail space across key cities dropped 83% in 2012, according to a report released

by real estate consultancy CB Richard Ellis (CBRE) South Asia Pvt. Ltd. Approximately 2.5

16

million sq.ft. of fresh retail space has entered the market in 2012, mainly in Bangalore,

Kolkata and Pune as compared with over 15 million sq.ft. in 2011, according to the Indian

Retail Market View report (2012). However, 2012 continued to witness an increase in

transaction activity and retailer expansion. Despite the significant drop in prime retail space

supply, the market saw retailers pursuing expansion plans and increasing their presence in

tier I as well as tier II and III cities.

The Delhi NCR region continued to be the preferred destination for international brands

launching their flagship outlets in the country, across categories such as fashion, food and

beverage and luxury, the report has suggested. Additionally, demand for prime high-street

locations in Mumbai is likely to increase in the coming few months due to the increasing

interest of international brands. Therefore, there is a lot of untapped potential in terms of

retail space and this year by year increase in retail space has also been driving the growth of

organized retail.

1.3.2.3 Development of Supply Chain involving efficiencies

The existing traditional supply chain in India has a minimum of five intermediaries between

the producer and the end consumer. At every level of intermediation, wastage occurs, adding

to cost of the product. Obviously, each intermediary tries to make profits on the goods sold,

which ultimately increases price of the product. Under the modern supply chain channel,

retailers reduce the number of intermediaries to a maximum of three as against minimum of

five in the traditional formats mentioned above by extending their presence, control to the

wholesale operations and establishing direct linkages with the producers. Many retailers also

source from Agriculture Produce Marketing Committee (APMC) markets, which also help in

reducing 1-2 intermediaries. These initiatives have not only resulted in reduced wastage and

lower prices, but have also allowed the retailers to exercise a greater control over the quality

of the final product, which is a key value proposition for the ultimate consumer. Increasingly,

retailers are also exploring contract farming in rare and high-value products to ensure captive

and continued supply.

Further analyzing the supply chain initiatives, it has been seen that large players like

Reliance Retail, Pantaloon Retail, and Bharti-Walmart are planning large-scale investments

17

in the back-end processes. These investments are likely to boost efficiency for their

wholesale cash-n-carry businesses and also allow better margins in the front-end retail

businesses. Reliance Retail is investing nearly INR 80 bn in backward integration, market

development, and location sourcing. It has entered into an exclusive arrangement with Blue

Star, a major in central air conditioning and commercial refrigeration, for supply of

refrigeration and cold room systems for its Reliance Fresh outlets. Pantaloon Retail has set

up a dedicated subsidiary for this purpose. This leads to the conclusion that a good sourcing

strategy plays a key role in managing cost. Retailers not only need to procure products at the

right price, but also need to sustain cost advantage over time. (Ernst & Young, 2009). Today

with consumers showing a greater orientation towards experimentation in their purchasing

habits, most retailers are going ahead with promotions, new product introduction and

localized assortment. As a result retailers have lower inventory, which has also reduced their

storage costs. This in turn has helped to ensure elimination of non-value added inventory and

remnants and thereby improving shelf availability.

1.3.2.4 Government Regulations

The Indian government has not focused on retail as an industry. Until now, there are no

specific rules and regulations to be followed by retail companies. However, there are certain

laws that the retailers need to follow, which are general in nature and pertain to the

establishment of stores and conduct of the activities. These laws are as follows: Shop and

Establishment Act , 1948, Standards of Weights and Measures Act, 1976 ,Provisions of the

Contract Labour (Regulations and Abolition) Act, 1970,The Income Tax Act, 1961, Customs

Act, 1962,The Companies Act, 1956.

Apart from the above Acts, the companies also follow certain regional rules and regulations

on the basis of the store locations. In some regions regulations are imposed on the organized

retailers to restrict their expansion and promote regional retailers; for instance, the Tamil

Nadu government has imposed a 10% surcharge on organized retailers and the West Bengal

government has been asking mall developers to reserve 10% space for unorganized retailers.

Retailers are also required to take necessary approvals from local bodies to carry on with

their business. There is no single window for clearances, and companies have to go to

18

different agencies to get approvals, which is one of the biggest hurdles that the segment

faces. (Dun and Bradstreet, 2008)

In the last two decades India has opened up its economy in a slow but steady manner to

private as well as foreign investment. This has influenced the Indian economy and has gone a

long way in making it a lucrative consumer market. The government has also overcome

initial reservations towards opening up of retail sector and has opened it to FDI in a series of

moves which have been exhibited below in the FDI policy Milestone.

Finally, in the year 2012, the government has allowed 100% FDI in single as well as multi

brands paving way for an ultimate growth of organized retail in India.

Figure 1.6: FDI Policy Milestone

1991 1997 2006 2008 2010 2012

Source: Aranca Research

Thus, it has been inferred that a combination of the demand and supply side factors is the key

driver of a 42% CAGR in organized retail over FY07-11. Therefore from the above, it may

be predicted that the organized retail has a potential to achieve sustainable growth due to two

LIBERALISATION Indian Economy opened FDI up to 51% allowed under the automatic route in select priority sectors

FDI up to 100% allowed under the automatic route in cash and carry (Wholesale)

FDI up to 51% allowed with prior government approval in ‘single Brand Retail’

Government mulled over the idea of allowing 100% FDI in single brand retail and 50% in multi brand retail

Government proposing to allow FDI in multi brand retail

Government allows 100% FDI in single and multi brands

19

major factors: consumer/demand side and retailer/supply side. (Source: ICRIER Retail

Report 2008, Angel Research)

1.4 CHANGING CONSUMER NEEDS AND BEHAVIOR

“Customer is King” this has been a common proverb in marketing. It holds true even today

as consumers are the major beneficiaries of the retail boom. The entire concept of retailing

has been redefined in terms of both its structure and fundamental changes in consumer

behaviour on account of demographic, psychographic and socio-economic factors. This

paradigm shift has been visible in Indian consumers also. A few decades back, the Indian

consumer saved most of his income, purchased the bare necessities and rarely indulged

himself into unplanned shopping. However, in the present scenario, with increased income,

availability of credit cards, exposure to the shopping culture of the west and a desire to

improve standard of living, the Indian consumer has been spending not only to meet

utilitarian needs but also hedonic needs to a large extent. Therefore, organized retail with its

variety of products and multitude of malls and supermarkets has added fuel to this addiction

and a new mentality, which in turn is driving the growth of organized retail in India.

This new mentality of consumers is a result of many factors, which include wider choice and

variety available in terms of products, quality and prices. The trend is further reflected in the

increasing share of categories like Personal Care, Healthcare, Jewellery and Watches, Sports

and entertainment goods in the overall pie of Modern Retail as shown in figure 1.7 below.

Thus, the availability of large assortment of products is leaving an impact on consumption

structure of Indian consumers. This variety seeking behaviour of consumers has led to the

place of shopping being shifted from local market to the stores in malls.

A detailed study of this new mall culture has exhibited that there are multiple factors like

space, ambience, convenience etc that are drawing customers towards the shopping centres.

In addition, enhanced shopping experience, better packaging, hygienic environment and

value added services rendered by organized retail stores have raised the expectations of

consumers. In addition to the factors mentioned above, an increase in leisure time is another

factor that has changed the consumption pattern radically during last century (Dittmar,

Beattie, & Friese, 1996). All these developments suggest that the Indian consumer market is

20

changing like never before and the factors such as time pressure, increased mobility, a rise in

number of working women, and greater discretionary income have reduced the time and

effort of the consumers in planning what to buy (Cobb & Hoyer, 1986; Williams & Dardis,

1972) leading them to have multiple shopping motives other than just buying a product in

need.

Thus from the above, it can be inferred that retailing has become much more than mere

merchandising. It is about reflecting customers‟ desires and aspirations, and forging long-

lasting relationships with them. As the Indian consumers have evolved, their expectations

have also undergone a paradigm change as each time they expect more as they step into a

store. Therefore, the concept of shopping has undergone a change in terms of format as well

as consumer buying behaviour, ushering in a revolution in shopping. The consumer choices

and preferences and overall consumer behaviour have always played an important role in

shaping market trends and have thus influenced the evolution of organized retailing in India.

However, after reaching an identifiable stage of development, organized retailing has also

started influencing the way the consumers look at the market, not only in terms of choice of

products and services, but also in terms of the overall shopping experience .

Figure 1.7: Market break up by revenues

Source: PWC-Jan 2011, Aranca Research

38.15%

2.90%

2.70%

9.90%

0.80%

2%

9.10%

3.40%

6.40%

11.50%

7.30%

2.80% 3.10%Textiles

Jewellery

Watces

Footwear

Health & Beauty

Pharmaceuticals

Consumer Durables

Mobiles

Furnishings

Food &Grocery

Catering Services

Books,music & gifts

21

This clearly suggests that the changing pattern of consumer behaviour is influencing retailing

in India, especially organized retail. As a matter of fact, personal and social factors such as

needs, perceptions, attitudes, interests, opinions, activities and lifestyles mostly influence

consumer behaviour in a rapidly changing retail environment. Traditional demographic

variables cannot identify the complete characteristics of an evolutionary retail market, as

consumers in the same demographic group have diverse psychographic makeup. Therefore,

psychographic factors influencing consumer behaviour need to be understood more closely

by organized retailers.

These dramatic changes in consumer behaviour have made it imperative for the marketers to

have an in-depth knowledge about various dimensions which link retailing and consumer

behaviour. So, it is necessary to understand the changing shopping patterns as well as the

behaviour of the consumers. It is a big challenge for retailers and marketers to differentiate

themselves and devise new marketing strategies to attract and retain customers. Therefore, it

has become necessary for retailers to be aware of shoppers‟ motivations and understand ways

of attracting the consumers (Sinha and Banerjee, 2004).

Retailing organizations have so far overlooked the positive contribution psychology could

make to their success. As most of the purchase decisions are now made at the point of sale, a

major influencing factor is the environment, where the shopper perceives a one-to-one

relationship with the store and optimizes his or her time. To make the environment appealing

and attractive for the shopper, the categorization of products has to be personalized as

everything that the customers see and feel within a store arouses interest and desire. There

are numerous studies which indicate that product displays, colour, store layout, music,

lighting and cleanliness have a strong impact on the customers‟ choices and preferences. It

has become an essentially important element in the retailing industry especially in apparel

stores, supermarkets, shopping malls etc. All these cues have a psychological influence on

the customers‟ mind which triggers impulse purchases. Therefore, every marketer needs to

pay attention so that the customers are retained. This phenomenon is going to lead towards a

change in the attitude of consumers resulting into rewards for the organized retail industry.

22

1.5 IMPULSE BUYING BEHAVIOUR

A study of consumer behaviour has always been an area of fervent interest for the

researchers. It aims at understanding what the consumers buy, why they buy, when and how

they buy. From this it can be deduced that the phenomenon relates to understanding the

pattern of behaviour. However, every consumer does not follow the set pattern and there is

deviation from the normal decision making models in which the logical sequence of the

consumers' actions is replaced with a moment of self gratification. This momentary deviation

results in unplanned decision to buy a product or service which is made just before a

purchase. Impulse buying is one such type of consumer behaviour which is attractive and

fascinating for many retailers and marketers. To encourage impulse buying in the organized

retail sector, marketers need to understand that it is a distinct kind of consumer behaviour.

For this purpose there is a need to understand the consumer decision making models.

Typically, consumers are considered to go through five stages in a purchase decision process

(Bettman,1979).In continuation of the previous work ,Engel and Blackwell(1982) have

designed a general model to explain consumer decision-making (Figure 1.8).According to the

model, consumers process information in five stages or sub processes before making a

consumption decision which includes problem or need recognition, search for alternative

solutions, evaluation of the alternatives, purchase of the chosen alternative and finally, the

review of decision made in light of its performance (Engel & Blackwell, 1982). Each of

these stages takes place with a goal in mind and the need for that goal defines how and to

what extent it will occur.

While understanding these stages and their relation to the consumption behaviour, coupled

with a review of literature, it is evident that this model of consumer decision-making has not

considered an important stage, the impulsivity stage. This stage, involving emotional

processes, should appear directly after the problem recognition stage.

If impulsivity is stronger, then the search stage and the alternative evaluation stage relating to

relevant consequences is by-passed altogether. Figure 1.9 shows the adjusted model, which

has attempted to illustrate how impulsivity is an essential part of the decision making

process.

23

Impulse buying differs from “regular” buying behaviour in an individual, as it does not

follow the normal process of purchase behaviour. Impulse buys are generally not based

solely on need, but rather on identity and symbols associated with the item. The information

seeking stage and evaluation of options are quickly bypassed or excluded when a customer

buys on impulse.

Figure 1.8: Engel and Blackwell Model of Consumer Decision Making

Sou

Source: Engel and Blackwell (1982)

Impulse buying as a marketing tool is a concept that has been explored since the 1950‟s.

Overtime, scholars have looked at what qualifies as impulse buying and observed it in

different contexts. As a pervasive and distinctive aspect of consumer lifestyle, impulse

buying today is a widespread phenomenon in the marketplace and for that reason it has

become a focal point for considerable marketing activities (e.g. Gardener & Rook, 1988;

Rook, 1987; Rook and Hoch, 1985).Therefore, researchers have devoted substantial

endeavours to conceptualise multifaceted phenomenon of impulse buying like Stern (1962)

has indicated that impulse buying can be used as synonym for unplanned buying where there

Search For Alternative Solutions

Evaluation of Alternatives

Purchase

Post purchase use and Reevaluation of chosen Alternatives

Problem Recognition

24

is no planning in advance. Rook in 1987 added another dimension to it by concluding it as an

unplanned purchase which happens when a consumer is exposed to a stimulus and

experiences a positive affect which means that impulse buying identifies a distinctive

psychological behaviour that differs drastically from the contemplative modes of consumer

choice.

Fig 1.9: The Adjusted Engel and Blackwell Model of Consumer Decision Making

Source: Engel & Blackwell (1982).

However, a more comprehensive concept was proposed by Piron (1991) according to which

impulse buying is a purchase that is unplanned, the result of an exposure to a stimulus, and

decided on-the-spot. This purchase results in the customer experiencing emotional and/or

cognitive reactions. According to the above concept there are four important characteristics

of impulse buying i.e. unplanned, exposure to the stimulus, immediate and emotional and/or

cognitive reactions. Impulse buying is an unplanned purchase as the consumers‟ decision to

buy the product is made at the spur of the moment and is not in reaction to a previously

Desire (Need Recognition)

Search For Alternative Solutions

Evaluation of Alternatives

Purchase

Post Purchase Use and Evaluation

Impulsive Behavior

25

known problem or an intention made before the entry of the shoppers into the store. Exposure

to the stimulus is the second important characteristic of impulse buying behaviour. Here the

stimulus is considered as a catalyst, which drives the consumer to be impulsive in purchase.

The third feature of impulse buying is the immediate nature of the buyer as the consumer

makes a purchase decision immediately without caring about its consequences. Finally,

emotional and/or cognitive reactions are experienced by the consumers and these determine

guilt or disregard for future consequences. Similar concept of impulse buying was given by

many other researchers (Hodge, 2004; Chien-Huang and Hung-Ming, 2005).

Beatty and Ferrell (1998) have also added that impulse buying is made without any pre-

shopping intentions either to purchase a particular product category or to accomplish a

particular buying activity. Moreover, impulse buying takes place when a shopper experiences

an urge to purchase and is likely to be spontaneous in action. This is so because impulse

buyers are not keenly searching for a particular product and don‟t have prior plans or intent

to purchase. The impulse buying phenomenon was further linked to hedonism by Bayley and

Nancarrow (1998) in their study in which the researchers have regarded it as a sudden,

compelling, hedonically complex buying behaviour where the swiftness of an impulse

decision process excludes thoughtful and deliberate consideration of information on

alternatives and choices.

Several complementary models of purchase behaviour have been proposed in consumer

research such as Utility-maximization, decision making, behavioural-influence, hedonic, and

meaning-transfer perspectives. However, impulse buying behaviour does not conform to the

rational, economic or decision making perspectives in consumer behaviour; and instead it is

associated with a complex hedonic psycho-social motivations and low-effort, feeling based

decision-making. According to Park, et al (2006), Bayley and Nancarrow (1998), Impulse

buying behaviour is a sudden, compelling, hedonically complex buying behaviour in which

the rapidity of an impulse decision process precludes thoughtful and deliberate consideration

of alternative information and choices.

Thus, various studies on impulse buying suggest that this phenomenon takes place when a

person makes an unintended, unreflective and immediate purchase. The purchase is

26

unintended since it is made during shopping with no pre-shopping plans to purchase that

product. Moreover, the shopper is not actively searching for that product. It is the sudden

urge to buy a product, after the individual sees it, that makes an impulses purchase an

unintended purchase. It is unreflective in the sense that it is made with very less evaluation of

the product without careful thinking. It is also immediate as the time interval between

watching a product and purchasing is very short. Thus, from the above it can be concluded

that impulse buying is a spontaneous and cognitively intensive action. This has also been

confirmed by the researchers in psychology who have opined that the process leads to

recreational shopping and impulse buying.

1.5.1 TYPES OF IMPULSE BUYING

Stern (1962) proposed the Impulse-Mix consisting of four distinct types of impulse buying,

namely pure, reminder, suggestive and planned impulse buying.

1. Pure impulse buying: This is actual impulse buying and differs from other impulse

buying behaviours. It is “novelty or escape” buying that changes the shopping pattern

routine. For example, a consumer who rarely buys gums and candies sees a new gum with

attractive packaging at the checkout while waiting in line at the grocery store and desires it

based on the packaging or new flavour. In this case, the purchase of the gum is considered

pure impulse because it is outside the normal purchase behaviour and satisfies an immediate

desire initiated by an emotional appeal.

2. Reminder impulse buying: This kind of impulse buying is based on past experiences and

knowledge about a particular item. For example, when customers see a specific product in a

shop, they recognize that item is almost out of stock at home, remember an advertisement, or

past decision making experiences and then make the purchase. Reminder impulse buying is

triggered by such previous factors.

3. Suggestive impulse buying: Suggestive impulse buying takes place, when customers see a

product for the first time and desire to buy it, even if they have no knowledge about it. The

difference between reminder and suggestive impulse buying is that consumers do not have

prior experiences or knowledge about a particular product and an evaluation of product

27

quality and functions is made during shopping. In addition, suggestive impulse buying can be

understood as “rational or functional” buying and distinguished from pure impulse buying,

which is triggered by emotional factors.

4. Planned impulse buying: While entering a shop, the consumers already have a shopping

list, however, they expect to buy extra items because of special price promotions or coupons,

and this is referred to as planned impulse buying.

Figure 1.10: Different Types of Impulse Buying

Level of Emotional Appeal

Source: Stern (1962)

It is pertinent to mention that although there are distinct types of impulse purchases, however

any of these categories could occur in the retail environment.

1.5.2 THEORIES OF IMPULSIVE BUYING

1.5.2.1 The Emotional/Impulsive Decision Making Theory

Impulsive buying is based and theoretically decorated on the emotional or impulsive decision

making approach to consumer decision-making by Schiffman and Kanuk (2007). This

approach suggests that consumers are expected to link their feelings or emotions like joy,

love, fear, hope, sexuality, fantasy with some of their purchases or possessions. Consumers

buy on impulse with less focus on searching, deliberating and evaluating options because

they are driven by their emotions. Park et al. (2006) have found that if a store does not have a

distinct product offering or a pricing strategy, the retailer can position himself differently

from competitors by developing emotional relationships between the store environment and

customers. Even though a consumer is in a negative emotional state before entering a store,

he or she may become emotionally boosted by the store environment and expend more

Planned Impulse Buying

Reminder Impulse Buying

Suggestive Impulse Buying

Pure Impulse Buying

28

money than intended. All these point towards the fact that impulse buying largely is an

unconscious buying behaviour which is driven by an emotional force outside the control of

an individual.

1.5.2.2 The Consumer Decision Making Model

This model generally reveals the cognitive component of consumers but to some extent, it

also reflects the emotional component of the consumers. Impulsive buying is mostly

influenced by the input component, which comprises of the marketing activities of

organizations and the socio-cultural inputs. The marketing activities vary from the product

(like its package, size and guarantees), to media advertising and other promotional efforts

(like pricing policies), to the distribution. These efforts can range from macro level (like

mass media) to micro level (like in-store advertisements, point-of-purchase displays, in-store

promotions and enjoyable in-store shopping environments). The retailers have an opportunity

to boost their sales through impulse buying by incorporating well planned marketing

strategies. Another influencing factor is the socio-cultural environment which also plays an

important role in stimulating the consumers towards spontaneous and immediate purchases.

It includes a broad range of non-commercial influences like family, peers or friends and

some non-commercial sources like culture, subculture and social class (Schiffman and

Kanuk, 2007).

Recognition of the need for balance of different but complementary roles that reasons and

emotions play in the active and reactive experiences of consumption is imperative in

understanding the dynamics of the impulse buying phenomenon and the inner conflict

between the two motives (Youn, 2000). Therefore, impulse buying in the present study has

taken into consideration both the models, as both the emotional as well as the cognitive

elements contribute towards it.

1.6 IMPORTANCE OF IMPULSE BUYING IN ORGANIZED RETAIL

Impulse buying is a ubiquitous and distinct aspect of consumers‟ lifestyle and accounts for a

large volume of product sales every year (Hausman,2000).Over the years, impulse buying

has also been made easier by innovations, such as credit cards, telemarketing, and home

shopping networks (Rook 1987). Retailers have realized the importance of this phenomenon,

29

and through store layouts, product packaging, and in store promotions, they have tried to

encourage consumers to be impulsive in stores (Dholakia, 2000).

In the last decade, rapid developments in the retail scenario have substantially changed the

landscape of consumer behaviour. The retailing sector in India has undergone significant

transformation in the past 10 years. There has been a tremendous increase in the number of

entrants in the organized retail sector. As a result of this, the organized retail is growing,

market is increasingly becoming more competitive with the consumers and retailers having

more choices to make. In such a scenario, the purchase of goods or services includes a

number of factors which may affect each decision, thereby making it more complex for

consumers today than in the past. Therefore, in such a case where the behaviour and needs of

the consumer are changing every now and then, it is important to understand the reasons that

stimulate them to make immediate and instantaneous purchases. There are many studies

which reveal that most of the purchases made in supermarkets and malls are on impulse

(Lewis,1993; Abrahams,1997; Levy and Weitz,2004; Nicholaset.al,2001) thereby suggesting

that most of the sales in organized retail set ups rely on purchases that are unplanned and

made instantly on impulse apart from the planned purchases. Due to this rising competition

in the organized retail sector, there is a need to understand how the consumers make the final

decision when they purchase a product.

The consumers purchase decision process can be distinguished in three ways (Levy and

Weitz, 2004): extended problem solving, limited problem solving, and habitual decision

making. Extended problem solving is a purchase decision process where consumers devote a

lot of time and effort prior to the purchase. This process has a certain degree of financial,

physical, and social risks attached to it. Limited problem solving occurs among quick

purchase decisions where little room is left for information search and product evaluation.

Finally, habitual decision making is a purchase decision process where little time and effort

is involved because of a repeated buying pattern, which is commonly linked to brand and

store loyalty. Impulse buying is seen as limited problem solving as the buying decision is

made on the spot by the consumers and hence little/no time is spent on information search

and product evaluation. In order to encourage (impulse) purchases, the recognition of a need

30

has to be stimulated. This means that the customers have to be presented certain cues to

create instant desire to buy, which would lead to impulse buying.

It has been seen that impulse purchases have higher incidence in modern formats as these are

larger in size and customer is free to move around and browse the merchandise as compared

to over- the-counter traditional formats. Therefore, the first step in driving impulse purchase

is to make the customer aware of the product. Since the product is not a part of the

customer‟s shopping list in case of impulse purchase, the product needs to remind the

customer of a need or create an excitement or urge to buy.

Impulse buying is a phenomenon which has multiple antecedents attached to it. These

include attractive display of products, sales promotion strategies, effective packaging, and

availability of time, money, shopping companion, personal factors, emotions, hedonism and

cognitive processes. To encash impulse purchases the retailers in the organized retail set up

have to take care of all these factors.

Figure 1.11: Organized Retail set up- Malls- New Mantra for Success

31

Moreover, as there is a growing level of competition in the organized sector a keen

understanding of impulse buying provides insight to retailers, merchandisers, advertisers,

marketers, and even consumers as to which variables influence shoppers‟ impulse buying

urges and actions. Retailers are benefitted by having a better understanding of the reasons

why consumers buy impulsively and help them be better prepared in approaching the

consumer and completing the sale. Merchandisers get benefitted from this knowledge by

successfully enhancing floor and window displays. In addition, advertisers and marketers are

also benefitted by understanding the impact of emotions and thoughts and how advertising

can be used in-order to stimulate these factors. In addition to an increase in sales,

understanding consumers‟ impulse buying behaviour also benefits marketers in identifying

market segmentation and increasing consumer satisfaction. As for the consumer, they gain a

better understanding of which components influence impulse buying. This awareness helps

the consumers‟ learn to recognize and ultimately manage the desire to buy impulsively.

1.7 NEED FOR THE STUDY

In today‟s post-modern era shopping has become a social and leisure activity, reducing the

number of cognitively planned purchases made by consumers. Hedonic and pleasure driven

shopping endeavours have led to a rapid increase in impulse buying, making it common and

socially acceptable. In particular, impulsive buying entails a sudden urge to buy something

without intention or plan at an earlier time. This shows that impulse buying accounts for a

major portion of the buying patterns for consumer behaviour.

In a study by Abrahams (1997), it has been concluded that in certain product categories, the

purchases on impulse have reached 80% of the total purchases made. It is estimated that

more than 70% of all the supermarket-buying decisions are unplanned or impulse purchases

(Levy and Weitz, 2004). Nichols et al. (2001) have also inferred that over 50% of mall

shoppers buy items on impulse. Most of these purchases are made at the point of purchase

and point of sale and are the result of the marketing strategies adopted to increase or

maximize impulse sales or purchase for brands at retail. In the recent times the shopper‟s

decisions are no longer limited to in-store, however, POPAI‟s 2012 shopper engagement

Study has found that shoppers are making an overwhelming number of their purchasing

32

decisions in-store. In fact, the in-store decision rate has climbed from 70% in 1995 to 76% in

2012 out of which 55% are usually unplanned (POPAI Shopper Engagement study, 2012).

Also, according to Industry sources, 65-75% of the purchases are impulse purchases made at

the point of sale. Therefore, from the above studies it can be concluded that impulse buying

in the organized retail set up holds significance and hence proves the relevance of the present

study.

Although there have been studies to investigate the individual role of in store stimuli,

situational characteristics, personal factors , emotions and hedonic considerations in impulse

buying but none of the studies have provided an overall framework. A theoretical framework

proposed by Regina Virvilaite, Violeta Saladiene, Rita Bagdonaite (2009) has been put to test

after minor modification in the Indian conditions.

Despite the growing research interest in impulse buying, extant studies mainly focus on the

Western context. There exists a need to further explore the impulse buying behaviour in a

non-Western context, especially for the emerging countries as they are becoming lucrative

markets in the world. Hence, the present study aims to fill this research gap by examining

consumer‟s impulse buying behaviour in the modern Indian retail context. This study will

help the retailers to not only understand the underlying principles of consumer behaviour but

also help in planning the assortment of merchandise to be displayed, the marketing mix and

the promotion mix, visual merchandising and store layout so as to encourage impulse buying.

Figure 1.12: Mall Space Distribution in Delhi and NCR

Source: Knight Frank Research

36%

15%

29%

8%

12%Delhi

Noida

Gurgaon

Faridabad

Ghaziabad

33

Analyzing the market breakup by revenues (2010-2011) the various product categories

chosen for the present study are apparels, Books, magazines, CD‟s, Personal care products

and accessories. (Figure 1.6).Also, for the purpose of data collection shopping malls of Delhi,

Noida and Gurgaon in the NCR have been taken into consideration. This is due to the fact

that the total cumulative stock of mall space in Delhi-NCR is about17.87 mn.sq.ft. spread

across Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad and Faridabad. Amongst various

micro- markets in the NCR, Delhi is the foremost in terms of the organized retail formats.

Besides, owing to a larger population base as compared to other zones in the NCR and a

higher requirement of organized retail space, Delhi has the largest share of about 36% in the

total mall space of the NCR followed by Gurgaon, with a share of 29%, and Noida with a

share of 15%.(Figure 1.12)

1.8 CONCLUSION

Everyone buys and consumes impulsively at one-point or another (Rook & Fisher, 1995;

Welles, 1986) which implies that the findings of this study will be helpful in a wide range of

retail products and formats. Despite the fact that consumers hardly search for information or

evaluate a product when making an impulse purchase, they still need to get motivated before

making the actual purchase decision. The present study shall provide an overall framework

for understanding the phenomenon of impulse buying. In addition, it will create awareness

and understanding of the changing consumers‟ consumption pattern and also the critical

factors which have an impact on impulse buying. It would also help the retailers and

marketers to benefit and gain optimal satisfaction in the organized retail set up, as this

segment is growing at a fast pace.

1.9 OUTLINE OF THE STUDY

Chapter I gives an overview of the emerging concept of organized retail and the main

drivers of organized retail. The concept of impulse buying has also been deliberated in detail

in this chapter, further highlighting its role in the modern retail set up. Further, the relevance

of the study has also been discussed.

Chapter II presents the Literature Review, which sets the academic tone for the research. It

contains the review and a comprehensive discussion of the rich and diverse literature

34

available in the area of impulse buying and its antecedents namely In- Store Stimuli which

includes Attractive displays, Sales Promotion and Attractive Packaging; Situational factors

which include Time Availability, Money Availability and Shopping Companion; Personal

factors including the demographics and impulse buying tendency and also Emotions and

hedonic considerations.

Chapter III provides a theoretical framework for the model of impulse buying proposed in

the present study. The relevance of various antecedents and how they relate to impulse

buying is discussed in detail. The various antecedents discussed are: In- Store Stimuli,

Personal Factors, Situational Factors, Emotions and Hedonic Considerations and, Cognition.

Chapter IV outlines the research methodology which identifies the research questions. It

explains the objectives and procedures of carrying out the research. The framework utilized

in this study has been described along with the basis for its use. A detailed description of all

the research techniques that have been used for data collection and analysis in order to

conduct the study has been provided in this chapter. The main objectives of the study are:

1. To examine and analyze the role of in-store stimuli on impulse buying.

2. To conduct an impact analysis of situational and personal factors on impulse buying

behaviour.

3. To understand emotions and hedonic considerations vis-à-vis their role in impulse buying.

4. To study the effect of cognitive processes in impulse buying.

5. To empirically validate the proposed model and suggest strategic interventions for

effective usage of impulsive behaviour of customers.

For the purpose, data in the form of structured questionnaire has been collected from the

respondents who had made an impulse purchase at the shopping malls. The data collection

was undertaken in cities namely:

1. Delhi

35

2. Noida

3. Gurgaon

The chapter also entails a discussion regarding formation of research hypotheses and scope

of the study, research area, sampling, questionnaire designing, pilot survey, final data

collection and tabulation.

Chapter V is about analysis and interpretations of the results derived from applying various

relevant statistical tools and techniques to the data. The main tools that have been used to

conduct the study are:

1. Factor Analysis

2. Reliability Analysis using Cronbach‟s Alpha method

3. Correlation Analysis

4. Regression Analysis

5. ANOVA

6. Sobel Test

7. Baron and Kenny Linear Equation method

8. Independent t-test

Chapter VI is the last chapter of the study. It presents the summary of research findings and

also highlights the conclusions and suggestions emerging from the discussion.

36

References

A.T. Kearney (2010). “Expanding Opportunities for Global retailers” retrieved January 12,

2012 from http://www.atkearney.com/documents/10192/c00fc581-e576-4186-a18f-

4eaa6defa84b

Abrahams, Ben (1997, March 27), “It‟s All in the Mind”, Marketing, pp.31-33.

Bayley, G., and Nancarrow C. (1998), “Impulse purchasing: a qualitative exploration of the

phenomenon”, Qualitative Market Research: An International Journal, 1(2), pp. 99-114.

Beatty, S., Ferrell, E. (1998), “Impulse Buying: Modelling Its Precursors”, Journal of

Retailing, 74(2), pp.169-191.

Bettman, James R. (1979), An information Processing theory of Consumer choice, Reading

M.A : Addison Wesley.

Business Line August, May 11, 2010 retrieved January, 11, 2012 from

http://www.thehindubusinessline.com/industry-and-economy/banking/value-of-credit-card-

transactions-rises-29-in-august/article2526188.ece

Cobb, C.J. and Hoyer, W.D. (1986), “Planned versus impulse purchase behaviour”, Journal

of retailing, 62(4), pp.384-409.

Dholakia, U.M. (2000), “Temptation and Resistance: An Integrated Model of Consumption

Impulse Formation and Enactment”, Psychology and Marketing, 17(11), pp.955-982.

Dittmar, H., Beattie, J., and Friese, S. (1996), “Objects, decision considerations and self-

images in men‟s and women‟s impulse purchases”, Acta Psychologica, 93(1-3), pp. 187-206.

Dun and Bradstreet, 2008 retrieved May 15, 2012 from http:// www.dnb.co.in

Edelweiss Report (2008) retrieved May 20, 2011 from

http://www.indianrealtynews.com/page/5?s=birla

37

Emerging Pattern of Urbanization in India retrieved April 7, 2013 from

http://www.scribd.com/doc/63436279/Emerging-Pattern-of-ion-in-India

Engel, J. F., and Blackwell, R. D. (1982), Consumer behaviour (4th ed.). Hinsdale, IL:

Dryden Press.

Ernst and Young Research (2009) report retrieved February 8, 2012 from:

http://www.ey.com/IN/en/Industries/India-sectors/Retail---Wholesale/Retail_Library

Gardner, M.P., and Rook, D.W. (1988), “Effects of Impulse Purchases on Consumer

Affective states”, Advances in Consumer Research, 15, pp.127-130.

Hausman, A. (2000), “A multi-method investigation of consumer motivation in impulse

buying behaviour”, Journal of Consumer Marketing, 17(5), pp.403-419.

Hodge, R. (2004), “Factors influencing impulse buying during an online purchase

transaction”, unpublished Master‟s thesis, University of Waterloo, Canada.

HSBC and Business Today, March (2010) retrieved October 7, 2011 from

http://www.ipedr.com/vol1/6-B00008.pdf

Huang,C. L and Ming,H. L. (2005). An exploration of Taiwanese adolescents‟ impulsive

buying tendency. Retrieved April 17, 2007 from http://encyclopedia.com/doc/1G1-

131363637.html - 30k.

ICRIER Retail Report (2008) retrieved December8, 2010 from

http://www.icrier.org/pdf/Working_Paper222.pdf

Indian Retail Industry Report (2010) retrieved November 18, 2012 from

http://www.iseindia.com/ResearchPDF/Retail_Update1.pdf

Indian Retail Industry: Challenges, Opportunities and Outlook retrieved June 11, 2013

from http://www.dnb.co.in/IndianRetailIndustry/overview.asp

38

Indian Retail Market View Report (2012) retrieved April, 2013 from

http://www.indiannewsandtimes.com/2013/02/14/india-retail-market-view-2h-2012-

approximately-83-drop-in-prime-retail-space-supply-in-2012/

KPMG Report (2008). “Indian Retail Time to Change Lanes” retrieved October 17, 2011

http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Indian%20

Retail-%20Time%20to%20change%20lanes.pdf.

Levy, M., and Weitz, B.A. (2004), Retailing Management, (5th

edition), New York:

McGraw- Hill.

Lewis, G. (1993), “The Impulse Zone”, National Petroleum News, 85 (4), p. 24.

Mckinsey Global Institute, “The „Bird of gold‟: The rise of India‟s Consumer Market”

(May2007) retrieved April10, 2010 from

http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Consumer_Market.pdf

Nichols, J., Li, F., Roslow, S., Kranendonk, C., and Mandakovic, T. (2001), “Inter-

American perspectives from mall shoppers: Chile-United States”, Journal of Global

Marketing, 15(1), pp.87-103.

NSSO Household Expenditure Survey -66th

Round A Critique (2011) retrieved January

17, 2013 from http://re-emergingworld.com/blog/wp-content/uploads/2011/08/20-07-2011-

NSSO-Household-Consumer-Expenditure-Survey_Blog-Writeup-V21.pdf

Park, E. J., Kim, E. Y., and Forney, J. C. (2006),“A Structural model of Fashion-oriented

Impulse Buying Behaviour”, Journal of Fashion Marketing and Management, 10(4), pp.

433-446.

Piron, F. (1991), “Defining impulse purchasing”, Advances in Consumer Research,” 18, pp.

509-514.

POPAI Shopper Engagement Study (2012) retrieved January10, 2013 from

http://www.popai.com/engage/docs/Media-Topline-Final.pdf

39

Research and Markets (2011). “Retail Sector in India” retrieved April6, 2012 from

(http://www.researchandmarkets.com/research/796f2f/retail_sector_in_i)

Rook, D. W., and Fisher, R. J. (1995), “Normative Influences on Impulsive Buying

Behaviour”, The Journal of Consumer Research, 22(3), pp. 305-313.

Rook, D.W. (1987), “The buying Impulse”, Journal of Consumer Research, 14, pp.189-199.

Rook, D.W., and Hoch, S.J. (1985), “Consuming Impulses”, Advances in Consumer

Research, 12, pp.23-27.

Schiffman L.G., Kanuk L.L. (2007), Consumer Behaviour (9th ed.), New Jersey: Pearson

Prentice Hall.

Sinha,P.K. and Banarjee,A.(2004), “ Store Choice behaviour in an evolving market”,

International Journal of Retail and Distribution management,32(10),pp.482-494.

Stern (1962), “The Significance of Impulse Buying Today”, Journal of Marketing

,26(2),pp.59-62.

Technopak(2011).“Emerging trends in Indian Retail and Consumer” retrieved August 19,

2012 from http://www.lemoci.com/media/distributioninde2011.pdf

Virvilaite R., Saladiene V., and Bagdonaite R. (2009), “Peculiarities of Impulsive

Purchasing in the Market of Consumer Goods”, Inzinerine Ekonomika-Engineering

Economics (2), pp.1392-2785.

Welles, G. (1986), “We‟re in the Habit of Impulsive Buying”, USA Today (May 21), pp.1.

William, J., and Dardis, R. (1972), “Shopping Behaviour for Soft Goods and Marketing

Strategies”, Journal of Retailing, 48 (Fall), pp.32-41.

Youn, S.H. (2000). The Dimensional Structure of Consumer Buying Impulsivity:

Measurement and Validation. Unpublished doctoral dissertation, University of Minnesota,

Minneapolis.

40

CHAPTER 2

REVIEW OF LITERATURE

2.1 REVIEW

Consumer behaviour has always been an area of fervent interest for the researchers. It is an

important discipline of marketing and is aimed at studying what, why, when and how of the

consumers buying. From this, it can be inferred that the study of consumer behaviour relates

to understanding the pattern of behaviour. This behaviour is influenced by a number of

factors, including the environment to which the consumer is exposed and the personality that

each consumer possesses. The consumer's ability to make a purchase, or rather, the amount

of buying power also plays a major role in defining the behaviour. Therefore, a detailed study

on how and why consumers make purchase decisions is important, especially for marketers,

in order to help formulate and implement effective marketing strategies and gain success in

the marketplace.

Hence, in this context, the consumer‟s decision-making has been studied comprehensively

and the fundamental assumption to decision-making is the rational perspective of their

choices, where a selection is made after watchfully considering and evaluating the various

alternatives available. However, the consumers do not always follow these requirements of

rationality and sometimes make decisions without watchful consideration of the alternatives

available, with unsatisfactory information regarding the product, or without prior intention to

purchase that product (Tversky & Kahneman, 1981). Impulse buying is one such type of

behaviour which is attractive and fascinating for many retailers and marketers. It is a

spontaneous and cognitively intensive action, which is an ever-present and unique side of

consumers‟ routine. In marketing research impulse buying behaviour is a mystery marked as

deviation from standard buying behaviour together by the literature and the consumers, and

it is the impulse buying behaviour that explains huge sales of various products every year

around the globe (Kollat and Willet, 1967; Bellenger et al., 1978; Weinberg and Gottwald,

1982; Cobb and Hoyer, 1986; Rook and Fisher, 1995; Hausman, 2000).

41

The researchers from the field of marketing and consumer psychology have been trying to

grasp this concept of impulse buying since 1950‟s, when Clover (1950) first tried to analyze

impulse buying paving way to a multi-prospective research .Ever since, numerous

researchers from various fields, like consumer behaviour, economics, marketing and

psychology have contributed to this attention grabbing and multifaceted behaviour. The

review of literature has also depicted that early research was more focused on defining the

concept of impulse buying, differentiating it from non-impulsive buying and developing

framework for investigating impulse buying rather than identifying the factors that can

influence it (Youn & Faber, 2000).

The literature has further pointed out that this impulse-buying behaviour originates from a

desire to satisfy multiple needs that underlie many types of buying behaviour (Hausman,

2000) further suggesting that the behaviour occurs in response to a stimulus. When a

consumer is exposed to a stimulus suggesting that a need can be satisfied through the

purchase, the consumer engages in impulsive purchases although there is no prior

information of a new product or intention to purchase the item (Kim, 2003). This has made

the retailers conscious and they are continually trying to increase the number of impulse

purchases through store design, product displays, package design, and sales (Hoyer &

MacInnis, 1997). In addition to environmental stimuli, internal states can also influence

impulse buying, which include respondents‟ positive and negative feeling states and

environmental cues including retail settings, marketer controlled cues, and marketing mix

stimuli (Youn & Faber, 2000).

Earlier studies on impulse buying have identified that there are numerous factors that can

influence impulse buying behaviour. Stern (1962) has concluded that there are basically nine

factors that influence impulse buying among consumers which include low prices, mass

distribution, self-service, mass advertising, prominent store displays, low marginal need for

an item, short product life, smaller sizes or light weights and ease of storage. Other

determinants of impulse buying as identified by the literature include presence of others

(Luo, 2005), mood of buyer (Rook and Gardner, 1993; Beatty & Ferrell, 1998), trait

impulsiveness (Rook & Fisher, 1995; Weun et al., 1998; Jones et al., 2003), product category

impulsiveness (Jones et al., 2003), evaluation of suitability of engaging in impulsive buying

42

(Rook & Fisher, 1995), individual and environmental touch (Peck & Childers 2006), store

characteristics (Iyer, 1989; Rook & Fisher, 1995; Beatty & Ferrell, 1998; McGoldrick et al.,

1999; Tendai & Crispen, 2009; Virvilaite et al., 2009), self-identity (Dittmar et al., 1995;

Lee & Kacen, 1999), cultural orientation (Lee & Kacen, 1999; 2008; Mai et al., 2003; Jalees,

2009) and demographic characteristics such as gender (Rook & Gardner, 1993; Dittmar et al.,

1995; Mai et al., 2003; Coley & Burgess, 2003; Tirmizi et al., 2009; Jalees, 2009; Virvilaite

et al., 2009) and age (Helmers et al., 1995; Wood, 1998; Mai et al., 2003; Xu, 2007; Tirmizi

et al., 2009; Jalees, 2009; Virvilaite et al., 2009).

Utpal M. Dholakia (2000) has presented and validated a detailed theoretical framework of

consumption impulse formation process and also examined the role played by the

constraining factors in its enactment. Three antecedents to the Consumption impulse have

been posited in this model. The first relates to the visual exposure to the product (Hoch &

Loewenstein, 1991). Product presentation aspects such as attractive displays, tempting

graphics or copy, or associated sales promotions may also play an important part. For

instance, the role of physical proximity in impulse experience has been clearly documented

in experiments on delay of gratification (Mischel & Mischel, 1983). Physical proximity may

activate positive memories associated with the product's consumption in the past, and may

also serve to kindle desire for it. Similarly, temporal proximity is also a key stimulus in

formation of the Consumption Impulse (Loewenstein, 1990). The immediate availability of

the product for purchase or consumption may activate a latent need for some consumers,

thereby triggering the consumption impulse. In the Consumption Impulse Formation

Enactment model, these factors are called marketing stimuli, because marketers can control

the presentation of such stimuli to the consumers. Therefore, marketing stimuli represent the

first antecedent factor for formation of the Consumption Impulse. A second antecedent of the

consumption impulse is environmental, as well as personal and social factors surrounding a

particular consumption occasion. This antecedent is labelled as situational factors (Belk,

1975). One important category of situational variables pertains to environmental conditions

surrounding the particular consumption occasion. For instance, an individual receiving his or

her pay check may be more susceptible to experiencing the Consumption Impulse. A second

category of situational factors pertains to the consumer's current mood state. The third

antecedent factor in the model is the impulsivity trait of the consumer, which has been

43

extensively studied in social sciences, in a variety of contexts (e.g., Plutchik & van Praag,

1995; Watson & Clark, 1993).The present study has also taken into consideration these

factors included in the Consumption Impulse Formation Enactment model. Among the

various factors discussed in the present study pertaining to impulse buying, it has been found

that the in store environment plays a very critical role as is also revealed in the POPAI‟s

2012 shopper engagement study, which has found that shoppers are making an

overwhelming number of their purchasing decisions in-store. In fact, the in-store decision

rate has climbed from 70% in 1995 to 76% in 2012 out of which 55% are usually unplanned

(POPAI Shopper Engagement study, 2012).

From this, it can be concluded that the in store shopping environment is an important

determinant of impulse buying. It is constituted by micro variables which are specific to a

particular shopping situation. Factors such as in store background music ,store display, scent,

in store promotions, prices, shop cleanliness, shop density or congestion and store personnel

all make up the in store shopping environment among others. Zhou and Wong (2004) have

classified the in-store shopping environment into two distant effects i.e. the promotional

effect and the atmospheric engagement effect. The promotional effect consists of stimuli like

promotional discounts (coupons, multiple-item discounts and gifts) and cheaper prices, while

atmospheric engagement effect include stimuli of enjoyment and attractiveness like in-store

advertisements, store displays, background music, in-store scent, salesperson, shop crowding

etc.

The in-store information plays a substantial role in consumer impulsive decision-making, and

has more influence than in unplanned buying as compared to planned buying situations. The

in-store elements that have been associated with impulse buying include product selection,

store atmospherics (Verplanken and Herabadi, 2001), product pricing (Stern, 1962),

promotions, easy payments (Youn and Faber, 2000) and word-of-mouth (Lee and Kacen,

2008). Sonali Banarjee and Sunetra Saha (2012) have examined the effect of stimuli and

sensory cues resulting into impulse buying. The results of the study have also revealed that

among the stimuli, in store/window display is the most influential factor followed by

company display, disposable income, emotional attachment and quality. Among the sensory

cues, sight has been found to be the most important sensory organ while making a purchase

44

decision besides other factors like touch, taste and smell, which also have been identified as

important.

From the above therefore, it can be said that the shopping environment or atmosphere in the

form of product display and layout is one of the major factors influencing impulse buying

behaviour. This is so due to the fact that consumers do not search for impulsive products to

buy when they are shopping, instead the in-store stimuli, such as shelf positions and product

location, are the key determinants influencing consumption impulses (Stern, 1962; Rook and

Fisher, 1995). Also, the instantaneous nature of impulse buying implies that „the only

available information, aside from internal or memory-based information, is the external

information available in the shopping environment‟ (Lee and Kacen, 2008).This means that

impulse buying occurs due to an exposure to in-store stimulus (usually a product), which

assists the consumer to make a purchase decision by offering innovative ways of satisfying

needs (Kollat & Willett, 1969) and it occurs in a very short time (Stern, 1962; Piron, 1991).

Despite this the importance of window display in relation to consumers‟ buying behaviour

has received minimal attention in literature. However, since a consumers‟ choice of store is

influenced by the physical attractiveness of the store (Darden et. al, 1983) and the first

impression of the store image is normally created at the façade level, it has been suggested

that window display may influence, to some extent consumers‟ choice of store when they do

not set out with a specific purpose of visiting a certain store and purchasing a certain item.

The initial step to getting customers to purchase is getting them in door. Therefore, retailers

are placing increased importance on window displays to transform shoppers into consumers

(Diamond and Diamond, 1996).

In a study by Marriri Tendai and Chipunza Crispen (2009), the researchers have examined

the role of in store stimuli like crowding, in store scent, background music, ventilation,

coupons and vouchers, store display, advertisement and promotions, shop staff and price on

impulse purchase behaviour at the shopping mall and the results have revealed that in store

factors of economic nature such as price and coupons are more likely to influence impulse

buying than those with an atmospheric engagement effect. In another study by Abratt and

Goodey (1990), it has been observed that in-store stimuli like promotional practices increase

the likelihood of unplanned purchases. One such promotional practice is the use of surprise

45

coupons which have a psychological income effect on the consumers resulting in an increase

in the number of unplanned purchases in the store (Heilman et al., 2002; Marriri and Crispen,

2009).Other promotional practices include sale, low prices and free samples/gifts which set

off a desire in the minds of consumers resulting in an unanticipated purchase, which requires

abrupt purchasing act (Stern ,1962; Hirchman ,1985). Discount-sales also play an important

role in enhancing the unplanned purchases in a store (Dittmar, 2000; Grewal et al., 1998).

Youn and Faber (2000) in their study have also identified the causes of impulse buying

among consumers which includes money (money and credit cards), good deals (sale, low

prices and free samples/gifts) and events (holidays, leisure and vacation). Price reductions,

cost savings, or sales promotions can convince buyers to end up in an unintended purchase

(Laroche et al., 2003). However, low price is not always found healthy for impulse buying as

found by Dittmar and Beattie (1998). Marriri and Crispen (2009) in their study have also

concluded that unexpected cheap price is the most significant factor causing impulse buying

behaviour among consumers in shopping malls. They have further stated that individuals

with lower incomes make impulse purchases mostly due to economic reasons.

It has been seen in a number of studies that promotional activities enable the sellers to raise

unit sales of most of the products (Wilkinson et al., 1982; Chevalier, 1975; Woodside &

Waddle, 1975). In a similar manner, the in-store advertisements and promotions have also

proven records to amplify the magnitude of unplanned purchasing among consumers (Inman

et al., 1990; McClure & West, 1969). This fact has been reported by Marriri and Crispen

(2009) in their study, they have also found a significant relationship between attractive in-

store advertisements and impulse buying behaviour among consumers. Similarly, the results

of the research study conducted by (Virvilaite et al., 2009) have found that consumers buy

impulsively when their attention is engrossed by pleasant goods, discounts and attractive

advertisements.

Further, according to Millner (2002 )special offers and promotional schemes offered generate

a positive desire in the minds of the consumer .The consumer evaluates the impulse purchase

as a benefit on the whole and makes a purchase and such an act may even deliver a positive

post-purchase response (Adelaar et al., 2003). Thus, price and in-store promotions have an

impact on the buying decision of the consumer, as a low priced product and a favourable

46

promotional offer may generate an impulsive response. A study by Dong-Jenn Yang et. al

(2011) has suggested that corporate promotions, individual budget and personnel promotions

are positively correlated with impulse buying intention and that sales and promotions can

effectively predict impulse buying intention.

Apart from promotional elements, store layout has been identified as the most important

factor affecting impulse buying (Stern, 1962; Iyer, 1989). Further, Dholakia (2000) in his

study has also found that in-store impulsivity of consumers can be increased through store

layouts, in-store promotions and product packaging. Other studies by Kennedy (1970), Engel

et al. (1978) and Wilkinson et al., (1982) also found positive relationship between product

displays and sales. In addition to these factors, other factors affecting the consumers‟

likelihood of engaging in impulse buying have been identified as product characteristics,

customer characteristics and consumer activities. In a study by Inman et.al (2009) the results

have also indicated that displays have a very powerful impact on the unplanned purchases

along with the effect of hedonicity and inter purchase cycle. In addition, the impact of

customer characteristics has also been found to be significant except shopping with others.

The customer activities including shopping pattern, time spent shopping and payment type

also had a positive impact on the unplanned purchases.

The results of these studies have been effectively implemented in the markets. The retailers

today are actively engaged in increasing the magnitude of impulse purchases through product

and store displays, and packaging designs (Lee & Kacen, 2008; Jones et al., 2003; Hoyer &

MacInnis, 1997). They are improving their product mix and are designing the shopping

environment together with store displays in such a way that consumers are inclined to buy

more and more on impulse (Schiffman & Kanuk, 2007; Michon et al., 2005; Gutierrez,

2004).

Moreover, Samuel et.al (2012) in their study have indicated that respondents indulging in

impulse behaviour, are influenced by factors such as atmospheric cues, promotion, and

window display. Further, it has also been established that variable such as gender, age, family

income, religion and personality type significantly affect impulse behaviour. In a study by

Dr. Tauseef Ahmad (2011) it has been concluded that various impulse buying factors like

47

sales and promotions, placement of products, window merchandising, effective price strategy

etc have a significant impact on customer impulse buying behaviour. Besides these factors,

the role of customer service, store environment, sales promotion, store communication and

consumer mood have also been studied so as to analyze their influence on impulse buying.

The results of this study have clearly pointed towards the fact that customer service, store

environment and consumer mood have a significant positive relationship with impulse

buying among the consumers who shop at the malls.

Hamid Reza et. al (2012) have also tried to study the impact of main factors affecting

impulse buying behaviour. The various factors analyzed in the study were going for shopping

alone, environmental factors, seller‟s help and guidance, psychological factors, product, price

and promotional offers. The results suggest that at the time of purchase, the level of self-

esteem, irritability (impulsivity), the product type and promotional tools have a significant

impact on the impulse buying behaviour.

Further, several studies like (Usman Ghani and Yasir Kamal,2010; Alireza Karbasivar and

Hasti Yarahmadi,2011; Minal et. al ,2012; Sunil Kumar and Bhawna Mishra,2012, Esch et.

al ,2003) have revealed that product displays and promotional activities have a significant

influence on impulse buying. In an article “Attractive Displays attract consumers” by

Graham Croston importance of the role played by attractive displays in attracting the

customers has been emphasized.

In addition to the displays and sales promotion, packaging too has an important role in

impulse purchase, as it has also become an important means of marketing communication. In

a modern retail store, consumers directly face a meeting point where various product brands

are placed on shelves. According to Dhar (2007), packaging plays an important role at this

meeting point (also known as point of purchase), as this is the most important point of

interaction between brands and consumers; it is at this stage that the consumers decide which

brands to purchase. Also, in a study by Duncan (2005) it has been concluded that packaging

is the main instrument of communication with which companies can deliver brand messages

effectively. A research by Astri Cahyorini and Effy Zalfiana Rusfian (2011) has also

examined the effect of various dimensions of packaging design namely graphic design,

48

structure design and product information on the impulse buying behaviour and found that

packaging design affects impulse buying at the rate of 38% and among the various elements

graphic design is the key contributor. The role of packaging has also been highlighted in an

article titled “The Power of Packaging” in which the researchers have emphasized the

relevance of packaging as a marketing tool as it helps to drive the way consumers experience

a product. The authors said that packaging has a dual role, as it provides consumers with

right cues and clues- both at the point of purchase and during usage. The study has also

pointed towards the fact said that packaging plays a particularly vital role in categories which

are impulse. Masouleh et.al (2012) performed an extensive literature survey to detect

different purchasing factors influencing customers' behaviour and found that the factors can

be categorized in three different groups of personal, product and situational. The personal

factors further included education, feelings, self identity, novelty, excitement, fun and

demographics. The product related factors included design, discount, packaging, price,

distribution, advertisement and ease of storage; whereas the situational factors included

presence of others, culture, design of store, time available, local market condition, self

service and sales staff.

Thus, the discussion above leads to the fact that in addition to the in store stimuli, situational

and personal factors also exerts an influence on impulse buying behaviour. These

environmental and personal factors range from time available, money available, presence of

others, to in-store browsing (Dholakia, 2000). In a study by Dr.Aisha Moustafa El Meniawy

(2012), the author has integrated situational influences and personal characteristics and tried

to develop a model for impulse buying. The results of the study have revealed that store

environments, personal characteristics and moods are useful for the study of impulse buying

behaviour. The study has further demonstrated that a positive mood induced by store

environment appears to be a cause of consumers‟ impulse buying. Specifically, store

ambience and excitement induces positive moods, and in turn encourages impulse buying

While analyzing the factors, it has been seen that along with economic and social trends, time

is the biggest single factor for changes in shopping behaviour over the last 30 years. Many

people now work for longer hours, have less leisure time, shop in more stores and spend less

time in each of them. A recent European study has found that, of the 23 billion shopping

49

occasions last year across Europe, 39 per cent were carried out in less than 15 minutes and

the average spend was €25. This suggests that time pressure has a negative effect on impulse

buying behaviour of consumers, as lack of time develops frustration among consumers. Most

of the studies have revealed that more is the time available, higher is the chance for

unplanned buying (Iyer, 1989; Iyer et al., 1989; Inman, Winer, and Ferraro, 2009; Herrington

and Capella, 1995; Nicholls et al., 1997; Underhill, 1999, Anić and Radas, 2006(a),)

especially when there is no buying task (Beatty & Ferrell, 1998). Other additional buying

motivators in such a situation are the price discounts or sales (Parsons, 2003; Virvilaite et al.,

2009); store accessibility and sales staff (Aylott and Mitchell, 1998) as well as the location

(Hart and Davies, 1996).

Wu-Chung Wu and Tzung-Cheng Huan (2010) have explored the effects of purchasing

situations (time pressure, economic pressure) and personal characteristics (impulse,

conformity, gender) on students‟ impulse buying behaviour. This research has found that

respondents with high time pressure (limited time) or low economic pressure (larger budget)

are significantly more likely to engage in impulse buying behaviour. This study has also

found that female respondents‟ impulsivity and conformity are higher than that of male

respondents.

In addition to the time available, money availability also acts as a catalyst for impulse buying

process, as it raises the purchasing power of the consumer. If the consumer does not have

enough money in pocket, he or she will avoid browsing through the retail setting altogether

(Beatty &Ferrell 1998).Ying and Yiun –Jiun Hsieh (http://www.jimsjournal.org/20%20Ying-

Jiun%20Hsieh.pdf.) in their study have analyzed the causal relations among stimuli, affect

and impulse buying in the Taiwanese retail context. The study has considered three types of

individual and situational factors namely available time, available money and shopping

enjoyment and the affect component included both positive and negative emotions. The retail

store stimuli included the merchandise, service, environment and price components. The

results have revealed that the shoppers perceive store related attributes of merchandise and

service quality as must be, whereas they consider environment and price as attractive in

generating emotional responses. Thus, the time availability and money availability are

50

important factors which if absent prompt negative emotions but not necessarily arouse

positive emotional responses when present.

The literature has identified that the individual‟s shopping companion also has an influence

on the impulse buying behaviour. Peers and family members being the primary source of

influence have different normative expectations. Peers are more receptive to the urge of

purchasing and induce less pressure to monitor one‟s behaviour. This behaviour may refrain

him/her from engaging in impulsive purchases. The motivation to conform to social norms is

affected by the inherent susceptibility to social influence and the structure of the group

(cohesive or not cohesive) (Luo, 2005).

According to Zajonc‟s (1965) theory of social facilitation, the mere presence of others has a

significant influence on an individual‟s behaviour. In fact, the theory posits that „the mere

presence of others increases arousal and thereby, the frequency of dominant responses; being

the behavioural disposition that exist a priori‟. Research done by Argo et. al (2005)has

demonstrated that even a non-interactive social presence (other shoppers present at the mall)

also has an influence on the consumers. Their research is based on the Social Impact theory

as a theoretical framework and implies that the consumer‟s motives and emotions, cognitions

and beliefs, values and behaviours are impacted by the real, implied or imagined presence or

action of another person or group of people at the time of purchase. Some of their findings

suggest that when the social size increases beyond one person, the consumer experiences

more negative (less positive) emotions due to social crowding. This might refrain the

consumer from engaging in any kind of shopping, even impulsive one, and leave the

shopping centre. In addition, the consumers tend to buy more expensive and high quality

brands as the social size increases, thereby implying the need to appear superior in financial

terms and manifest a higher social status. In such cases, the probability to engage in

impulsive purchases enhances.

The presence of others thus also augments the possibility of impulse buying behaviour (Luo,

2004) whereas in contrast, the presence of others may also discourage the consumers to buy

on impulse as their behaviour may be perceived as irrational by the companion (Rook &

Fisher, 1995). It has also been revealed in a study by Mai et al. (2003) that individuals from

51

collectivist cultures are more satisfied with their impulse buying decisions when they are

accompanied by an important person at the time of shopping as compared to when they shop

alone. When consumers make purchases with others, they intend to obtain group identity and

meet the expectations of others and therefore behave or think in a way similar to other group

members (Wilkie, 1994).

Apart from the in store stimuli and situational factors, the emotions have been identified as

the other key factor which dominate the impulse buying process. By emotions we refer to “a

mental state of readiness that arises from cognitive appraisals of events or thoughts; has a

phenomenal tone; is accompanied by physiological processes; is often expressed physically

(e.g. gestures, posture, facial features); and may result in specific actions to affirm or cope

with the emotion, depending on its nature and meaning for the person having it”

(Bagozzi,1999).Although impulsive buying does not completely preclude information

processing, emotions play a key role in the impulse buying process (Weinberg and

Gottwald,1982) and may directly lead to impulse buying action (Beatty and

Ferrel,1998;Piron,1993;Rook,1987). This has also been confirmed by Gardner and Rook

(1988) that affect or mood as a variable influences impulse purchasing. In their study,85% of

survey respondents indicated to be more prone to impulse buying when in a positive mood

than in a negative mood, as the respondents have been reported to have a desire to reward

themselves and higher energy levels.

Thus, affect or mood has been identified as a variable that strongly influences a number of

actions including impulse purchasing. An individual‟s affect is influenced by his/her pre-

existing mood, affective disposition, and reaction to current environment encounters (Beatty

& Ferrell, 1998). In a positive mood (positive affect), one is more likely to engage in

approach behaviour than avoidance behaviour. It is so due to the fact that they have a feel of

freedom to act, and therefore produce behaviours that aim at maintaining a positive mood

state. Further, it is pertinent to mention that affect broadly includes moods, emotions and

feelings, therefore emotions as a factor has been analyzed as a contributor to impulse buying.

In this context, Sherman, Mathur and Smith (1997) have stated that the emotional state of the

consumer is an important determinant in their purchase behaviours. In their study, pleasure

52

has been associated with the amount of money spent and consumer affinity for the store.

Elizabeth C. Hirschman and Barbara B. Stern (1999) have also described and synthesized

findings across three different sets of literature dealing with emotion: (1) the cognitive

stream, (2) the hedonic consumption stream, and (3) the compulsive/addictive consumption

stream. The researchers have also presented a model of emotions and suggested novel

directions. O‟Neill and Lambert (2001) have also found that emotions have an influence on

people‟s reaction to the prices of products. Price would have less of an influence when

consumers are experiencing positive emotions. This explains impulsive purchase decisions

where the cognitive aspects are weaker than the affect factors. The Psychology literature has

identified Pleasure and arousal as the key emotions ,which have been analyzed by Donovan

and Rossiter (1982),who have concluded these emotions are significant mediators of

intended shopping behaviours including time spent in the store, interpersonal interaction

tendencies, willingness to return, and estimated monetary expenditures. The relationship has

been the strongest for pleasure state, whereas arousal increased the time spent in the store,

willingness to interact with sales personnel, and overspending in pleasant environments.

Further, while analyzing impulse buying behaviour, it has been pointed out by Dorothea

Baun and Andrea Groeppel Klein (2003) that it is stimulus controlled spontaneous buying

behaviour which is accompanied by strong positive emotions and low cognition control. Eun

Joo Park, Eun Young Kim, Judith Cardona Forney, (2006) while studying fashion oriented

impulse buying behaviour found that fashion involvement and positive emotion had

affirmative effects on impulse buying. Yingjiao Xu (2007) has used two emotional states in

the study namely pleasure and arousal and employed the Mehrabian and Russel (1974) SOR

model to study the impact of store environment on the impulse buying behaviour of adult

generation consumers. The results of the study have indicated that the relationship between

store environment and adult consumers‟ emotional states is moderated by personal factors

such as arousability and by situational factors such as time pressure. Further, in another study

by Grace Yuna Lee and Youjae Yi (2008), the effect of pleasure, arousal and perceived risk

has been studied on impulsive buying behaviour with the moderating effect of buying

impulsiveness trait. Regina W. Y. Wang and Ying-Chun Chen (2011) have shown that

positive emotional dimensions better arouse consumers' impulse buying desire as compared

to the negative emotional dimensions. The results of the study by A. Graa, M. Dani-elKebir

53

(2011) have suggested that a consumer's emotions can be a mediating factor in the impulse

purchase process. According to the results; pleasure has been associated with design, arousal

with perception of crowding, whereas dominance has been linked to the time spent in the

store.

The emotions influencing the type of behaviour such as impulsive buying include related

states that are characterized by common theme. Joy has often been considered almost the

same as happiness and has common features just like other high-arousal positive emotions

like amusement. Joy can be aimless and at the same time constitute readiness to engage in

action. Interest is often used interchangeably with curiosity, intrigue, excitement, and has

things in common with challenge and intrinsic motivation. Some researchers doubt whether

interest can be categorized as a basic emotion but in fact it is the emotion experienced most

frequently. Interest generates a feeling of desire for investigation, involvement, and

expanding the self. The mindset of this emotion is characterized by openness to new ideas,

experiences and actions. Love is often thought of not being a single emotion but rather

people experience varieties of love. Love experiences are made up of many positive emotions

like joy, interest, etc.

Positive emotions such as pleasure and excitement stimulate people rewarding themselves

(Beatty and Ferrel, 1998) and fulfil their need for instant gratification by buying the product

(Youn and Faber, 2000). Negative emotions, like feelings of depression or sadness, on the

other hand, may also stimulate impulse buying since buying the product helps consumers to

feel better (Rook, 1987). Gia J. Sullivan (2008) has found that there appears to be a causal

role of stress on impulse buying, such that participants who are stressed compared to those

who are not spend money more impulsively .Stress reaction represents “systematic individual

differences in the frequency and intensity of responding to situational cues with negative

emotional states (i.e., anxiety, anger, distress, and guilt)” (Youn and Faber, 2000:180). These

negative emotional states are experienced by individuals under everyday conditions (Bar-Tal

et al., 1998) and lead people to engage in behaviours that provide relief, such as impulse

buying (Faber and Christenson, 1996). Research has shown that consumers feel better after

experiencing an episode of impulse purchasing (Gardner and Rook, 1988), for highly stress-

reactive people, it is hypothesized that short-term gratification accompanied by impulse

54

would enhance their positive self-feelings and mood states and can act as a good mood

management function (Youn and Faber, 2000). Victoria Geneva (2010) in her master‟s theses

has tried to examine the factors like emotional state, self control and presence of others and

tested them in relationship to impulsive buying behaviour. The findings of the study have

indicated that the emotions and presence of others influence impulsive buying behaviour in a

positive way. Also, the lack of self control has a moderating effect on impulsive buying

behaviour.

Impulsive buying is often accompanied by intense feeling states and assumes a more hedonic

character (Holbrook and Hirschman 1982). Thus, suggesting that consumers indulging in

impulse buying phenomenon are significantly influenced by their hedonic needs. In

continuation to the assertions regarding impulse buying, Piron (1991) has commented that

impulse-buying satisfies hedonic desires and an emotional support need may be satisfied with

the social interactions present in the shopping experience. Since the goal of the shopping

experience is to satisfy hedonic needs, the products purchased during these excursions appear

to be bought without prior planning and represent an impulse-buying event (Kim, 2003).

Thus, people do not shop only in order to satisfy their needs but also because they may

simply enjoy shopping. The prospect that a shopping trip can make one feel better suggests

that shopping can also be considered as a way of improving moods. This also triggers

marketers‟ effort to make malls, stores and service encounters to give a better experience to

the consumers and make them feel good. In turn, improved mood lead to a host of desired

behaviours like higher willingness to shop, impulse purchases, longer stays, and satisfaction

(Mano, 1999). Shopping is suggested to be a highly effective mechanism for escaping from

negative feelings. Thus, there is an important role of hedonism. When consumers shop, they

experience both utilitarian and hedonic shopping value. Utilitarian shopping value involves

less risk propensity, heuristics, and goal fulfilment (Engel, Blackwell, and Miniard, 1993),

whereas hedonic shopping values involve entertainment and emotional benefits (Jin,

Sternquist and Koh, 2003; Babin et al., 1994). Jin et al. (2003) have defined hedonic

shopping value as “the degree to which consumers perceive emotional benefits through the

experience of shopping rather than simply through product acquisition” (p.381) and proposed

that recreational shoppers (i.e., consumers who enjoy shopping) are likely to experience high

55

levels of hedonic value. Further, in a study by Hausman (2000), it has been observed that

need for fun, novelty, and surprise are motives of impulse buying. As a result, consumers

who are more impulsive are more likely to shop for hedonic reasons than those who are less

impulsive. Astrid G. Herabadi, Bas Verplanken and Ad van Knippenberg (2009) in two

separate studies conducted have investigated the feelings and emotions associated with the

impulse purchases and found that emotional arousal and hedonic considerations are the main

drivers of impulse behaviour. While analyzing the impulse buying in Chinese context,

Chunling Yu and Mike Bastin (2010) have conducted an exploratory study and detected a

variety of hedonic needs that appear to motivate consumers in their impulse buying

behaviour, which are enjoyment and fun, novelty and escapism. Besides, according to Kim

and Eastin (2011) researchers have found that hedonic consumers are more likely to engage

in impulse buying. Thus, consumer's impulse buying is positively correlated with hedonic

motivations. Therefore, continuing the research in this field, Merima Cinjarevic, Kasim Tatic,

Srdan Petric (2011) have examined the influence of six broad categories of hedonic shopping

motivations (adventure, gratification, role, value, social and idea shopping) and fashion

consciousness. The findings of the study indicate that the strongest predictor for impulse

buying has been the adventure shopping followed by gratification shopping, value shopping

and idea shopping. However, role shopping, social shopping and fashion consciousness have

not been found to be significantly related to impulse buying behaviour. Recently, Gultekin

and Ozer (2012) investigated whether hedonic motives and browsing affect impulse buying

and examined the role of browsing as a mediator between hedonic motives and impulse

buying. The results of the study have shown that hedonic motives and its dimensions such as

adventure, gratification, and idea have a positive impact on impulse buying. The mediating

role of browsing between hedonic motives and impulse buying has also been identified. In

addition,Neda Irani and kambiz Heidarzadeh Hanzale (2011) while investigating the

mediating role of hedonic values as influencing factor on shopping experience found that

there were positive relationships between involvement and consumers buying tendencies and

hedonic value. Moreover, the results also revealed that the hedonic values have a positive

influence on the shopping satisfaction.

Besides the affect factors, the cognitive factors also exert key influence in triggering needs

and motivating the possibility of impulse buying behaviour. Although it is pertinent to

56

mention that affect and cognition are rather different types of psychological processes

consumers experience in a shopping situation. Affective process corresponds to the

emotional state involved, whereas cognitive process refers to mental structures and processes

involved in thinking, understanding and interpreting. The recognition of this combination of

thoughts and emotions, created and perceived by the consumer, is what has lead to the

present day understanding of impulse buying. The struggle between the inner emotional

desire to buy and the inner cognitive willpower not to buy is like a balance beam that can

shift at any moment and only a slight shift is needed in order to create a change. Emotional

desire and cognitive willpower work against each other and generate an uneven

impulsivity/self-control balance beam effect. As a consumer‟s emotional desire increases, the

cognitive willpower decreases thereby creating impulsivity, which results in an impulsive

buy if all other contributing factors remain constant (Youn, 2000). The study by David H.

Silvera , Anne M. Lavack and Frederic Kropp(2008) has supported the need to differentiate

between cognitive and affective facets of impulse buying tendencies, which have been

closely linked to escape from negative affective states. There are a few studies conducted

which have examined the role of cognition in impulse purchases. One such study has been

conducted by Chatzidakis et. al (2009) to examine how cognition enables people to proceed

with their impulses. The study has also applied the concept of neutralization, in, the manner

of a theory of motivated cognition and as taxonomy of pre and post behavioural

rationalizations. Yu Wen Wang (2005) while analyzing cognition has studied the moderating

effect of normative evaluation and habitual domain on impulsive buying. The results of the

study indicate that personal characteristic and hedonic shopping, cognitive response, have

significant influences on shopping enjoyment and impulsive buying behaviours. Besides, the

effect of habitual domain and normative evaluation are significant to moderate the

relationship between shopping enjoyment and impulsive buying behaviours.

Therefore, for a thorough understanding of consumer behaviour, researchers must recognize

that the consumers are influenced both by long-term rational concerns and short-term

emotional concerns, which affect their decision to purchase (Hirschman, 1985; Hoch and

Loewenstein, 1991). Therefore, the need for an integrated overview of the consumption

experience has been proposed and attempts made to synthesize and connect together the

57

complementary roles of reasoned actions and emotional reactions in consumer behaviour

(Hoch and Loewenstein, 1991; Holbrook et al., 1990).

Apart from the stimuli, situational factors, emotions and cognition the personal factors or

the consumers‟ characteristics have also been found to have a considerable effect on the

impulse buying behaviour. The consumer characteristics comprise of individual

characteristics or traits which enhance consumers‟ tendency to show impulsive behaviour.

These characteristics consist of individual‟s age, gender, culture, mood, materialism,

shopping enjoyment, impulsive buying tendency, and the perceived degree of self-

discrepancies (Parboteeah, 2005).

Age is among the imperative factor that predicts impulse buying behaviour in consumers.

This fact has been corroborated by several studies (Rawlings et al., 1995; Helmers et al.,

1995; Bellenger et al., 1978; Wood, 1998; Lee & Kacen, 2002; Gutierrez, 2004), which have

found that young buyers show more impulsivity in their purchases as compared to aged ones.

However, studies by (Mai et. al, 2003; Virvilaite et al., 2009; Jalees, 2009) have reported no

relationship between impulse buying and age of consumers.

Besides age, the literature has identified numerous studies on the effect of gender on

consumers‟ impulse buying behaviour. There are studies like (Kollat and Willett, 1967;

Melnikas and Smaliukiene, 2007; Jalees, 2009;Virvilaite et al., 2009; Selda basaran Alagoz

and Nezahat Ekici(2011) which have revealed that women are usually more impulsive than

men. On the contrary a few studies like (Cobb and Hoyer, 1986; Mai et.al, 2003) have

reported that men are more impulsive than women. However, Bellenger et al. (1978) and

Gutierrez (2004) have reported no relationship between gender and impulse buying. Further,

in a study on gender identity and impulse buying Dittmar et al. (1995) concluded that men

are likely to purchase instrumental and leisure products on impulse. These products give a

sense of independence and activity to them. Women on the other end are likely to purchase

symbolic and self-expressive products on impulse. The purchase of such products highlights

their emotional aspects. They further concluded that women show more impulsive buying

due to the emotional reasons and are attracted by an object and a desire for immediate

58

gratification resulting in impulse purchasing. The results of study by Dittmar et al. (1995b)

were supported latter by Coley and Burgess (2003) and Verplanken and Herabadi (2001).

Among many other factors higher level of income also determines the impulsivity of the

consumers. High income shoppers are more likely to show higher impulse buying tendencies

(Abratt & Goodey, 1990). A study by Mogelonsky (1994) logically advocates that the

phenomenon of impulse buying is basically for those consumers who are financially in a

position to afford it. With more income in hand, consumers face fewer constraints in order to

buy a product on impulse. Such high income consumers usually have a more open shopping

list that facilitates them to entertain themselves with rapid and unexpected buying ideas.

Hence, high income consumers shop on impulse more frequently as compared to the low

income shoppers. Lower income shoppers show less impulsivity in their purchases due to the

income block, however, this finding has been challenged by Woods (1998) who found no

relationship between the incomes and impulse buying behaviours of the consumers.

Mai et al. (2003) in a study in Vietnam discovered a significant linear relationship among the

income groups and impulse buying tendencies of the shoppers. They have recorded high

impulsivity in individuals with high income levels. Gutierrez (2004) found no evidence as

well as relationship as far as the family income and impulse purchases were concerned. More

so the finding of Bengtsson (2007) in terms of income and impulse buying were also in

consonance with Gutierrez (2004). In a study by Priyanka Verma and Rooble Verma (2012)

the impact of various impulse buying factors like advertising, sales promotions, personal

selling, public relations, direct marketing on customer impulse buying behaviour along with

the role of age, gender, education and occupation were studied. The results of the study have

revealed that females show more impulsive behaviour while purchasing in comparison to the

males. The results also show that the respondents do not show any difference as far as age is

concerned. In terms of education also, it has been seen that people having more knowledge

were more impulsive in their buying behaviour. In addition, it has also been seen that people

who are in better occupation show more impulsive buying behaviour because of their

affordability to purchase the products showing that there is association between the

occupation and impulsive buying behaviour.

59

While analyzing impulse buying in a different context, Alireza Chavosh et. al (2011) have

suggested a significant relationship between consumer characteristics (Gender, Age, Mood,

Materialism, Shopping enjoyment, Impulse buying tendency) and Singaporean consumers‟

impulse purchasing behaviour except for the variable of materialism which has no significant

relationship with their impulse purchasing behaviour. Moreover, the respondents have also

exhibited a significant relationship between product characteristics and consumers‟ impulse

purchasing behaviour.

The impulse buying behaviour may be in response to an environment which is likely to be

moderated by his or her characteristics. In fact, people differ in their degree of impulsive

buying tendencies; some people have high propensity to react to a sudden buying impulse,

whereas others do not respond to such stimuli. Beatty and Ferrell (1998) in their study on

consumer research have demonstrated that buying impulsiveness is a unique personal trait

that represents one‟s tendency to think and act in a distinctively, identifiable way. The

impulse buying tendency of an individual is the impression of consumer‟s trait (Rook &

Fisher, 1995). Highly impulsive buyers are more likely to react to spur-of-the-moment

buying stimuli, and are more open to unexpected buying ideas; they are triggered by physical

proximity to a desired product and are dominated by emotional attraction to the product as

well as the immediate gratification (Rook and Fisher, 1995). Hence, they experience buying

impulses more frequently and strongly than other buyers, and they are more likely to respond

positively to their buying impulses. Yet, even highly impulsive buyers do not respond to

every buying stimulus, because various intervening factors such as economic position, social

visibility, or time pressure may interrupt the shift from impulsive desire to impulsive

behaviour (Rook and Fisher, 1995).

Analysis of the previous research on impulse buying has been more focused on product

attributes, while the recent research emphasizes on the personal attributes of the buyer, which

has helped in classifying consumers into impulsive and non-impulsive buyers (Weun et al.,

1998; Young & Faber, 2000). In consistency with the literature of impulse buying in

psychology, many studies stress that impulse buying is an individual‟s personal trait (Chien-

Huang & Hung-Ming, 2005). Individuals are responsible for impulse buying as compared to

previous product-centred belief of researchers (Jalees, 2009) and therefore, impulsive buying

60

tendency is acknowledged as manifestation of the general impulsiveness (Rook and Fisher,

1995; Kacen & Lee, 2002; Weun, Jones& Beatty, 1998; Youn &Faber, 2000; Cobb& Hoyer,

1986). Trait impulsivity is a general term characterizing non reflective decision making,

without reasoning and evaluation of consequences (e.g. Eysenck& Eysenck, 1978; Weun,

Jones& Beatty, 1998). Michael A. Jones, Kristy E. Reynolds, Seungoog Weun and Sharon E.

Beatty (2003) have extended the notion of impulse buying tendency from a general

personality tendency to a more product specific variable. It has empirically assessed the

relationships among general impulse buying tendency, product specific impulse buying

tendency, product involvement, and impulse buying behaviour for two product categories.

The study has concluded that product specific impulse buying tendency results from

generalized impulse buying tendency and product involvement. The study by A. Foroughi,N.

Aishah Buang and M.Sherilou (2011) has also found a significant relationship between

impulse buying tendency, shopping enjoyment and in store browsing on impulse purchase.

In addition, some studies have analyzed the phenomenon in online context like Chien – Ju

Hung (2008), he has presented a dissertation on female online impulse buying. The

researcher has considered the external factors (situational and difference between

individuals) and internal factors (positive and negative emotions and in store browsing) on

impulse buying behaviour. The independent variables included five types of stimuli:

environmental stimuli, promotions and advertising, product related factors and impulse

buying tendency. The demographic factors like age, education, discretionary income,

occupation, online shopping experiences and number of hours surfing the internet. The

findings of the study have suggested that environmental stimuli have a positive influence on

online impulse buying, whereas promotions and advertising do not directly influence the

online impulse buying behaviour. It has also been suggested that the product related factors

play an important role in the online shopping environment, just like in the offline

environment. While considering the situational factors, browsing time on online shops has

exhibited a positive impact on the female online impulse buying behaviour. On the other

hand, the availability of more money has exhibited no influence on the females to buy

impulsively online. Besides, the mode of payments i.e. Credit Card payments also have not

exhibited any influence on the online impulsive behaviour. However, impulse buying

61

tendency has a positive effect on the online impulse buying behaviour whereas demographics

have not emerged as a significant contributor to the online impulse buying behaviour.

Similarly, in another study by Nikhil Jalan (2006) an attempt has been made to understand

the interaction between consumers‟ affective states and in store stimuli, with respect to

impulse buying. The study has also tried to examine the influence of internal factors viz.

emotions and personal traits and external factors viz. demographic, socio- economic,

marketer controlled and others. The results have indicated that an overall soothing shopping

atmosphere with apt lighting, mild fragrance and soothing music is generally preferred by

shoppers. Sales promotion has emerged as a good attraction for the consumers to buy

impulsively, but it has been a general opinion that shopping in sales is a stressful exercise.

The literature review has identified that there are a number of factors to impulse buying.

These factors can be classified under the following broad heads: In store Stimuli, Situational ,

Personal , Emotions and Hedonism and Cognition.

2.2 RESEARCH GAP

The above discussion on impulse buying and various factors affecting such behaviour

indicates that impulse buying is a very important aspect in the organized retail set up. There

is a growing relevance of organized retail with the coming up of FDI in India. It is a new area

of interest and therefore, research on impulse buying and its antecedents is of great

importance in this sector. Also, in the Indian context, not much work on impulse buying has

been done, necessitating an in depth study keeping in mind the demographic, psychographic

and behavioural pattern of the urban consumers. Although the in store stimuli have been

studied by various researchers, however, packaging as an in store stimulus has been largely

overlooked. Therefore, packaging has also been included as one of the factor in in store

stimuli. In addition, there is almost no study which has empirically investigated the role of

in-store stimuli, situational factors, personal factors, emotions and hedonic considerations

together on impulse buying in organized retail sector and the researches that provide on

overall framework of determinants are mostly on online impulse buying. Although , a

number of previous studies have examined the role of emotions on impulse buying but in the

present study another component, hedonic considerations has been added as it has an

62

emotional experience and the mediating role of emotions and hedonism is examined between

the in store stimuli and impulse buying.

Hence, the present study is an attempt to fill the gap identified above and focuses on the

impact of various antecedents on impulse buying behaviour. It would also be of great help for

the marketers and retailers to make new strategies for encouraging impulse buying.

63

References:

Abratt, R. and Goodey, D. S. (1990), “Unplanned Buying and In-store Stimuli in

Supermarkets”, Managerial and Decision Economics, 11(2), pp.111-122.

Adelaar, T., Chang, S., Lancendorfer, K. M., Lee, B. and Morimoto, M. (2003), “Effects

of Media Formats on Emotions and Impulse Buying Intent”, Journal of Information

Technology, 18, pp.247-266.

Ahmad, T. (2011), “The Impulse Buying Behaviour of Consumes For The FMCG Products

In Jodhpur”, Australian Journal of Basic and Applied Sciences, 5(11),pp. 1704-1710.

Alagoz, S.B. and Ekici, N. (2011), “Impulse Purchasing as a Purchasing Behaviour and

Research on Karaman”, International Research Journal of Finance and Economics, 66,

pp.172-180.

Anić, I., Radas, S. (2006a), “The impact of situational factors on purchasing outcomes in

the Croatian hypermarket retailer”, Ekonomski pregled, 57(11), pp.730-752.

Argo, J. J., Darren W. D., and Manchanda,R.V. (2005), “The Influence of a Mere Social

presence in a Retail Context”, Journal of Consumer Research, 32(2),pp. 207.

Aylott, R., and Mitchell, V. (1998), “An exploratory study of grocery shopping stressors”,

International Journal of Retail and Distribution Management, 26(9), pp. 362-373.

Babin, B. J., Darden, W. R., and Griffin, M. (1994), “Work and/or fun: Measuring hedonic

and utilitarian shopping value”, Journal of Consumer Research, 20(4), pp.644-656.

Bagozzi, R.P., Gopinath M. and Nyer, P.U. (1999), “The Role of Emotions in Marketing”,

Journal of the Academy of Marketing Science, 27(2), pp.184-206.

Banarjee, S.and Saha, S.(2012),“Impulse Buying Behaviour in Retail stores-Triggering the

senses”, Asia Pacific Journal of Marketing and Management Review, 1(2),pp.1-21.

Bar-Tal, Y., Cohen-Mansfield. and Golander, H.(1998), “Which Stress Matters? The

Examination of Temporal Aspects of Stress”, Journal of Psychology, 132 (5), pp. 569-576.

64

Baun D., and Klein A. G. (2003), “Joy and surprise as guides to a better understanding of

Impulse buying behaviour”, European Advances in Consumer research, 6, pp.290-299.

Beatty, S.E., and Ferrell, M.E. (1998), “Impulse Buying: Modelling its Precursors”,

Journal of Retailing, 74(2), pp.169-191.

Bellenger, D.N., Robertson, D.H. and Hirschman, E.C. (1978), “Impulse buying varies by

products”, Journal of advertising Research, 18(6), pp.15-18.

Bengtsson, D. (2007), “Impulsive shopping decisions- can they be predicted?” retrieved

October 5, 2011 from http://www.essays.se/about/thesis+on+impulse+buying/

Cahyorini, A. and Rusfian, E.Z.(2011),“The Effect of Packaging Design on Impulsive

Buying”, Journal of Administrative Science and Organization, ,pp. 11-21.

Chatzidakis, A., Smith, A., Hibbert, S.(2009), “Do I need it, do I, do I really need this?:

Exploring the Role of Rationalization in Impulse Buying Episodes”, Advances in Consumer

Research, Vol.36, pp. 248-253.

Chavosh, A. , Halimi, A.B. Namdar, J., Choshalyc, S.H. and Abbaspour, B.(2011), “The

Contribution of product and consumer characteristics to Consumer‟s Impulse Purchasing

Behaviour in Singapore”, Proceedings of 2011 International Conference on Social Science

and Humanity, Vol. 1, pp. 248-252, 2011.

Chevalier M. (1975), “Increase in sales due to in-store display”, Journal of Marketing

Research, 12, pp.426-431.

Cinjarevic, M., Tatic, K. and Petric, S. (2011), “See it, like it, buy it! Hedonic Shopping

motivations and Impulse buying”, Journal of Economics and Business, 9(1), pp. 3-15.

Clover, V. T. (1950), “Relative Importance of Impulse Buying in Retail Stores”, Journal of

Marketing, 25, pp.66–70.

Cobb, C. J. and Hoyer, W. D. (1986), “Planned Versus Impulse Purchase Behaviour”,

Journal of Retailing, 62(4), pp. 384-409.

65

Coley, A. and Burgess, B. (2003), “Gender Differences in Cognitive and affective Impulse

Buying”, Journal of Fashion Marketing and Management, 7 (3), pp.282-295.

Croston, G. , “Attractive Displays attract Customers”, retrieved from

http://www.gjplastics.co.uk/PDF-files/Attractive%20displays%20Attract%20Customers.pdf

Darden, W.R., Erdem, O. and Darden, D.K. (1983) , “A comparison and test of three

causal models of patronage intentions”, in Darden, W.R. and Lusc, R.F. (Eds), Patronage

Behaviour and Retail Management, North-Holland, New York, NY, pp. 29-43.

Dhar, Mainak. (2007), Brand Management, Singapore: John Wiley & Sons.

Dholakia, U.M. (2000), “Temptation and Resistance: An Integrated Model of Consumption

Impulse Formation and Enactment”, Psychology and Marketing, 17(11), pp. 955-982.

Diamond, J. and Diamond, E. (1996), Fashion advertising and promotion, Albany, New

York: Delmar.

Dittmar, H., and Beattie, J. (1998). Impulsive and excessive buying behaviour. In P.

Taylor-Gooby, Choice and public policy: Limits of welfare markets (pp. 123±144). London:

Macmillan.

Dittmar, H. (2000), “The role of self-image in excessive buying”, in A. Benson (Ed.), I shop,

therefore, I am ,Northvale, NJ: Jason Aronson Inc(pp. 105–132).

Dittmar, H., Beattie, J., Friese, S., (1995), “Gender identity and material symbols: Objects

and decision considerations in impulse purchases”, Journal of Economic Psychology, 16, pp.

491-511.

Donovan, Robert J. and John R. Rossiter (1982), “Store Atmosphere: An Environmental

Psychology Approach”, Journal of Retailing, 58, pp. 34-57.

Duncan, Tom. (2005), Principles of Advertising & IMC (2nd ed.), New York : Mc Graw

Hill.

66

Engel, J. F., Blackwell, R. D., and Miniard, P. W. (1993), Consumer Behaviour (7th ed.),

Fort Worth: Dryden Press.

Engel, J.F., Kollat, D.T., and Blackwell, R.D. (1978), Consumer Behaviour, New York:

Holt, Rinehart and Winston.

Esch, Rudolf,F. ,Redler, J. and Langer, T. (2003), „Effects of product category, brand

strength, and visual presentation formation of the efficiency of display promotion‟, in

ANZMAC Conference proceedings, adelaide (december), pp. 1831–1837.

Eysenck, S.B.G. and Eysenck, H.J. (1978), “ Impulsiveness and venturesomeness: Their

position in a dimensional system of personality description”, Psychological

reports,43,pp.1247-1255.

Faber, R.J. and Christenson, G.A. (1996), “In the Mood to Buy: Differences in the Mood

States experienced by compulsive buyers and other consumers”, Psychology and

Marketing,13, pp.803-820.

Foroughi , A. , Buang, A. and Sherilou, M. (2011), Exploring impulse buying behaviour

among Iranian tourists in Malaysia (Case Study). 2nd international conference on business

and economic research (2nd ICBER 2011) proceeding.

Gardner, M.P. and Rook, D.W. (1988), “Effects of Impulse Purchases on Consumer

Affective states”, Advances in Consumer Research, 15, pp.127-130.

Geneva, V. (2010), “The influence of emotions on impulsive buying behaviour in the

presence of others”, Master‟s Thesis, Erasmus University Rotterdam.

Ghani U. and Kamal Y. (2010), “The Impact of In-Store Stimuli on the Impulse Purchase

Behaviour of Consumers in Pakistan”, Interdisciplinary Journal of Contemporary Research

in Business , 2(8),pp.155-162.

Graa, A. and Dani-elKebir, M.(2011), “Application of Stimulus and Response Model to

Impulse Buying Behaviour of Algerian Consumer”, Serbian Journal of Management,7(1),

pp. 53-64.

67

Grewal, D., Krishnan, R., baker, J. and Borin, N. (1998), “The effect of store name, brand

name and price discounts on consumer evaluations and purchase intentions”, Journal of

Retailing, 74( 3), pp. 331- 52.

Gultekin, B. and Ozer, L.(2012), “ The Influence of Hedonic Motives and Browsing On

Impulse Buying”, Journal of Economics and Behavioural Studies, 4(3), pp. 180-189.

Gutierrez, B.P. (2004), “Determinants of Planned and Impulse Buying: The Case of the

Philippines”, Asia Pacific Management Review, 9(6), pp. 1061-1078.

Hart, C. and Davies, M. (1996), “The location and merchandising of non food in

supermarkets”, International Journal of Retail & Distribution Management, 24(3), 17-25.

Hausman, A. (2000), “A multi-method investigation of consumer motivations in impulse

buying behaviour”, Journal of Consumer Marketing, 17(15), pp.403-419.

Heilman, C.M., Nakamoto, K., Rao, A.G. (2002), “Pleasant Surprises: Consumer Response

to unexpected In-store Coupons”, Journal of Marketing Research, 39(2), pp.242-245.

Helmers, K.F., Young, S.N., and Pihl, R.O. (1995), “Assessment of measures of

impulsivity in healthy male volunteers”, Personal Individual Differences, 19(6), pp.927–935.

Herabadi, A.G, Verplanken, B. and Knippenberg, A. (2009), “ Consumption experience

of impulse buying in Indonesia: Emotional arousal and hedonistic considerations”, Asian

Journal of Social Psychology , 12, pp.20–31.

Herrington, J.D., Capella, L. M. (1995), “Shoppers reactions to perceived time pressure”,

International Journal of Retail & Distribution Management, 23(12), pp.13-20.

Hirschman, Albert. 1985, "Reflections on the Latin American Experience", in Leon

Lindberg and Charles S. Maier (eds.),The Politics of Inflation and Economic Stagnation,

Washington, DC: the Brookings Institution, pp. 53-77.

Hirschman, E.C. and Stern, B.B.(1999),“The roles of emotions in consumer

research”,26,pp.4-11.

68

Hirschman, E.C. and Holbrook, M.B. (1982), “Hedonic consumption: Emerging concepts,

Methods and propositions”, Journal of marketing, 46, pp 92-101.

Hoch, Stephen J. and George F. Loewenstein (1991), “Time Inconsistent Preferences and

Consumer Self-Control”, Journal of Consumer Research, 17, pp.492–507.

Holbrook, M.B., O’Shaughnessy, J., & Bell, S. (1990), “Actions and reactions in the

consumption experience: the complementary roles of reasons and emotions in consumer

behaviour”, Research in Consumer Behaviour, 4, pp. 131-163.

Hoyer, W. T., and MacInnis, D. (1997), Consumer Behaviour, Houghton Mifflin, Boston

MA.

Huang, C.L., Hung-Ming L. (2005), “An exploration of Taiwanese adolescents‟ impulsive

buying tendency” retrieved from http://encyclopedia.com/ doc/1G1-131363637.html - 30k

Huang, L.Y. and Hsieh , Y.J. “What Drives Consumer Impulse Buying? Evidence from a

Retail Setting in Taiwan”, retrieved from http://www.jimsjournal.org/20%20Ying-

Jiun%20Hsieh.pdf.

Hung , C.J.(2008), “The Analysis of Factors that Influence Female Impulse Buying During

Online Transactions”, Dissertation on MA Marketing ,University of Nottingham.

Inman, J., Winer, R., and Ferraro, R. (2009), “The interplay among category

characteristics, customer characteristics, and customer activities on in-store decision

making”, Journal of Marketing, 73, pp.19-29.

Inman, J.J., McAlister, L. and Hoyer, W.D. (1990), “Promotion signal: Proxy for a price

cut”, Journal of Consumer Research, 17(1), pp. 74-81.

Irani , N. and Hanzaee , K.H. ( 2011), “The Mediating Role of Hedonic value in Apparel

Shopping satisfaction”, World Applied Sciences Journal,12(10), pp.1715-1729.

Iyer, E. S. (1989), “Unplanned Purchasing: Knowledge of Shopping Environment and Time

Pressure”, Journal of Retailing, 65(1), pp.40-57.

69

Iyer, E. S., Park, C. W., Smith, D. C. (1989), “The effects of situational factors on in-store

grocery shop”, Journal of Consumer Research, 15(4),pp. 422-433.

Jalan, N. (2006), “Impulse Buying, Personality Traits, In-store Atmospherics, and Their

Interaction”, Dissertation Marketing, University of Nottingham.

Jalees, T. (2009), “An Empirical Analysis of Impulsive Buying Behaviour In Pakistan”,

Journal of Consumer Research, 5, pp.298-308.

Jin, B., Sternquist, B., and Koh, A. (2003), “Price as hedonic shopping”, Family and

Consumer Sciences Research Journal, 31(4), pp.378-402.

Jones, M. A., Reynolds, K.E., Weun, S. and Beatty, S.E. (2003), “The product-specific

nature of impulse buying tendency”, Journal of Business Research, 56 (7), pp.505-511.

Karbasivar, A. and Yarahmadi, H.(2012),“Evaluating Effective Factors on Consumer

Impulse Buying Behaviour”, Asian Journal of Business Management Studies, 2 (4),pp. 174-

181.

Kennedy, J.R. (1970), “The Effect of Display Location on the Sales and Pilferage of

Cigarettes”, Journal of Marketing research, 7, pp.210-215.

Kim Jiyeon (2003), “College Students Apparel Impulse Buying Behaviours in Relation to

Visual Merchandising”, Unpublished Masters Theses, University of Georgia.

Kim, S. and Eastin, M. (2011), “Hedonic tendencies and the online consumer: an

investigation of the online shopping process”, Journal of Internet Commerce, 10, pp. 68-90.

Kollat, D.T., and Willett, R.P. (1967), “Customer Impulse Purchasing Behaviour”, Journal

of Marketing Research, 4(1), pp21-31.

Kumar, S. and Mishra, B.(2012), “What Drives Impulse Buying?”, International Journal of

Management Sciences, 1(2),pp.114-123.

70

Laroche, M., Papadopoulos, N., Heslop, L. and Bergeron, J. (2003), “Effects of

subcultural differences on country and product evaluations”, Journal of Consumer

Behaviour, 2(3), pp. 232-247.

Lee G. Y. , and Yi Y. (2008), “The Effect of Shopping Emotions and Perceived Risk on

Impulsive Buying: The Moderating Role of Buying Impulsiveness Trait”, Seoul Journal of

Business, 14 (2), pp. 67-92.

Lee J.A., and Kacen J.J. (1999), “The relationship between independent and interdependent

self concepts and reasons for purchase”, Journal of Euro marketing, 8 (1/2),pp. 83-99.

Lee, J.A., and Kacen, J.J. (2008), “Cultural Influences on Consumer Satisfaction with

Impulse and Planned Purchase Decisions”, Journal of Business Research, 61, pp.265-272.

Loewenstein, G. F. (1990), “Reference points in intertemporal choice”, Unpublished

working paper, Centre for Decision Research, University of Chicago.

Louw,A. And Kimber, M., “The Power of Packaging”, retrieved from

http://wrm.tsc.k12.in.us/webpages/teacherpages/teachers/saware/Unit2-

ThePowerofPackaging.pdf

Luo, X. (2005), “How Does Shopping with Others Influence Impulsive Purchasing”, Journal

of Consumer Psychology, 15(4), pp.288-294.

Luo, X.M. (2004), “Grouped Dynamics of Impulse Buying: An Extended Social Facilitation

Perspective”, Advances in Consumer Research, 31, pp.431.

Mai, N.T.T, Jung, K., Lantz, G. and Loeb, S.G. (2003), “An Exploratory Investigation into

Impulse Buying Behaviour in a Transitional Economy: A Study of Urban Consumers in

Vietnam”, Journal of International Marketing, 11(2), pp.13-35.

Mano, H. (1999), “The influence of pre-existing negative affect on store purchase

intentions”, Journal of retailing, 75(2), pp. 149-172.

71

Masouleh, S.E., Pazhang, M. and Moradi, J.S.(2012), “What is Impulse Buying? An

analytical network processing framework for prioritizing factors affecting impulse buying”,

Management Science Letters (2), pp.1053-1064.

McClure, P.J. and West, E.J. (1969), “Sales effects of a new counter display”, Journal of

Advertising Research, 9(1), pp. 29-34.

McGoldrick , P. J, Betts, E. J, Wilson, A. F.(1999), “Modelling consumer price cognition:

evidence from discount superstore sectors”, The Service Industries Journal, 19,pp.171-193.

Mehrabian, Albert and James Rus s e l l (1974) , An Approach to Environmental

Psychology, Cambridge , Ma s s . : MIT Pr e s s .

Meniawy, A.M.E. (2012), “Personal Characteristics and Situational Influences affecting

consumers adoption of Impulse buying behaviour”, Proceedings 3rd International

Conference on Business and Economic research (3rd ICBER 2012 ) 12 - 13 March2012.

Golden Flower Hotel, Bandung, Indonesia.

Melnikas, B., and Smaliukiene, R. (2007), “Consumer vulnerability in pharmaceutical

market: Case of Baltic countries”, Journal of Business Economics and Management, 8(1),

pp.51-62.

Michon, R., Chebat, J.C., and Turley, L.W. (2005), “Mall atmospherics: the interaction

effects of the mall environment on shopping behaviour”, Journal of Business Research,

58(5), pp.576-583.

Millner, I. (2002a), “Burying the Myth of Impulse Buying”, Brand Strategy, September

(163), 38.

Minal, S., Sanjay, G., and Shrivastava Urvashi, S. (2012), “Effect Of Emerging Trends In

Retail Sector On Impulse Buying Behaviour-With Reference to Chhattisgarh Region”,

International Journal of Engineering and Management Sciences, 3(2), pp. 142-1451.

Mischel, H.N., and W. Mischel. (1983), “The Development of Children‟s Knowledge of

Self-Control Strategies”, Child Development, 54, pp. 603-619.

72

Nicholls, J. A .F., Roslow, S., Dublish, S. (1997), “Time and companionship: key factors in

Hispanic shopping behaviour”, Journal of Consumer Marketing, 14(2/3),pp. 194 -205.

O’Neill, R.M., and Lambert, D.R. (2001), “The Emotional Side of Price”, Psychology and

Marketing, 18 (3), pp.217‐237.

Parboteeah, D.V. (2005), “A model of online impulse buying: An empirical study”,

Dissertation, Washington state university.

Park, E. J., Kim, E.Y., and Forney, J .C. (2006), “A structural model of fashion-oriented

impulse buying behaviour”, Journal of Fashion Marketing and Management, 10 (4), pp.433 -

446.

Parsons, A. G. (2003), “Assessing the effectiveness of shopping mall promotions: customer

analysis”, International Journal of Retail & Distribution Management, 31(2), pp.74-79.

Peck, J. and Childers, T.L. (2006), “If I touch it I have to have it: Individual and

environmental influences on impulse purchasing”, Journal of Business Research, 59,pp.765–

769.

Piron, F. (1991), “Defining impulse purchasing”, Advances in Consumer Research,” 18, pp.

509-514.

Piron, F. (1993), “A Comparison of Emotional Reactions Experienced by Planned,

Unplanned and Impulse Purchasers”, Advances in Consumer Research, Vol. 20, 341-344.

Plutchik, R., and van Praag, H. M. (1995), “The nature of impulsivity: definitions,

ontology, genetics and relations to aggression”, in E. Hollander & D. Stein (Eds.),

Impulsivity and aggression, New York: John Wiley & Sons.

POPAI shopper Engagement Study (2012) retrieved from

http://www.popai.com/engage/docs/Media-Topline-Final.pdf

Rawlings, D., Boldero, J., and Wiseman, F. (1995). The interaction of age with

impulsiveness retrieved from: http://saicon2011.ciitlahore.edu.pk/Management/1252A.pdf

73

Reza, H., Hadjali, M.S. and Ardestani, M.S.(2012), “Exploring main factors affecting on

impulse buying behaviours", Journal of American Science ,8(1),pp.245-251.

Rook, D.W. (1987), “The buying Impulse”, Journal of Consumer Research, 14, pp. 189-199.

Rook, D. W., and Fisher, R. J. (1995), “Normative Influences on Impulsive Buying

Behaviour”, Journal of Consumer Research, 22 (3), pp. 305-413.

Rook, D.W., and Gardner, M.P. (1993), “In the mood: impulse buying‟s affective

antecedents”, Research in Consumer Behaviour, 6, pp.1-28.

Samuel ,Y.A., Donkor, S.A. and Awuah, J.B.(2012), “ Impulse Buying Behaviour among

students at the Marketing Department of Sunyani Polytechnic Ghana, West Africa”,

International Journal of Innovative research in management,1(2),pp.11-20.

Schiffman, L.G. and Kanuk L.L. (2007), Consumer Behaviour, Pearson Prentice Hall, New

Jersey.

Sherman, E., Mathur, A. and Smith, R.B. (1997), “Store Environment and Consumer

Purchase Behaviour: Mediating Role of Consumer Emotions”, Psychology and Marketing,

14 (4), pp. 361-378.

Silvera, D.H., Lavack, A.M., and Kropp , F.(2008), “ Impulse buying: the role of affect,

social influence, and subjective wellbeing”, Journal of Consumer Marketing, 25(1),pp. 25-

33.

Stern, H. (1962), “The Significance of Impulse Buying Today”, Journal of Marketing, 26(2),

pp.59-62.

Sullivan, G.J. (2008), “Stress, Emotion Regulation, and Impulse Buying (Senior Honors

Thesis)”, University of Denvar.

Tendai, M. and Crispen C. (2009), “In- store shopping environment and Impulsive

buying”, African Journal of Marketing Management, 1(4), pp.102-108.

74

Tirmizi, M. A, Kashif-Ur-Rehman, Saif, M. I (2009), “An empirical study of consumer

impulsive buying behaviour in local market”, European Journal of Scientific Research, 28(4)

pp. 522-532.

Tversky, A., and Kahneman, D. (1974), “Judgment under uncertainty: heuristics and

biases”, Science, 185, pp.1124±1131.

Underhill, Paco. (1999), Why we buy: the science of shopping, New York: Simon &

Schuster.

Verma, P. and Verma, R.(2012), An On-line field survey of the Impulse buying behaviour

of consumers in consumer non durable sectors in the Retail Outlets in the city of Indore”,

Research Journal of Management Sciences,1(4),pp.1-5.

Verplanken, B. and Herabadi, A. (2001), “Individual Differences in Impulse Buying

Tendency: Feeling and No Thinking”, European Journal of Personality, 15, pp.71–83.

Virvilaite R., Saladiene V., and Bagdonaite R. (2009) “Peculiarities of Impulsive

Purchasing in the Market of Consumer Goods”, Inzinerine Ekonomika-Engineering

Economics (2), pp.1392-2785.

Wang R. W. Y. and Chen Y.C. (2011) “Service dimensions for consumer emotions”,

Journal of the Chinese Institute of Industrial Engineers, 28(2), pp.134 – 145.

Watson, D., and Clark, L. A. (1993), “Behavioural disinhibition versus constraint: A

dispositional perspective”, in D. Wegner & J. Pennebaker (Eds.), Handbook of mental

control , Englewood Cliffs, NJ: Prentice Hall (pp. 506-527).

Weinberg, P., and Gottwald, W. (1982), “Impulsive Consumer Buying as a Result of

emotions”, Journal of Business research, 10 (1), pp.43-57.

Weun, S., Jones, M.A., and Beatty, S.E. (1998), “Development and validation of the

impulse buying tendency scale”, Psychological Reports, 82 (3), pp.1123-1133.

Wilkie, W. L. (1994), Consumer Behaviour (3rd ed.), New York: John Wiley and Sons.

75

Wilkinson, J.B., Mason, C. and Paksoy, C. (1982), “Assessing the impact of short-term

supermarket strategy variables”, Journal of Marketing Research, 19, pp. 72-86.

Wood, M. (1998), “Socio-economic status, delay of gratification, and impulse buying”,

Journal of economic psychology, 19, pp.295-320.

Woodside, A.G. and Waddle, G.L. (1975), “Sales effects of in-store advertising”, Journal

of Advertising Research, 15(3), pp. 29-33.

Wu W. C. and Huan T. C. (2010), “The effect of purchasing situation and conformity

behaviour on young students‟ impulse buying”, African Journal of Business Management

4(16), pp.3530-3540.

Xu, Y. (2007), “Impact of Store Environment on Adult Generation Y Consumers‟ Impulse

Buying”, Journal of Shopping Centre Research, 14(1), pp. 39-56.

Yang, D.J., Huang, D.C. and Feng, X. (2011), “A Study of the Factors that Affect the

Impulsive Cosmetics Buying of Female Consumers in Kaohsiung”, International Journal of

Business and Social Science, 2(24), pp.275-282.

Youn, S. and Faber, R. J. (2000), “Impulse buying: its relation to personality traits and

cues”, Advances in Consumer Research, 27, pp.179-185.

Youn, S.H. (2000). The Dimensional structure of consumer buying impulsivity:

Measurement and validation. Unpublished Doctoral dissertation, University of Minnesota,

Minneapolis.

Yu, C. and Bastin, M. (2010), “Hedonic shopping value and impulse buying behaviour in

transitional economies: A symbiosis in the Mainland China marketplace”, Journal of Brand

management, 18, pp.105-114.

Zajonc, R.B. (1965), “Social Facilitation”, Science,149,pp.269-274.

76

Zhou L., Wong, A. (2004), “Consumer Impulse Buying and In-Store Stimuli in Chinese

Supermarkets”, Journal of International Consumer Marketing, retrieved April 20, 2008

http:// www.ingentaconnect.com/conttent/haworth/jicm/2004/00000016/00000002/art00003.

77

CHAPTER 3

MULTIDIMENSIONAL FRAMEWORK OF

IMPULSE BUYING

The extensive review of literature has suggested that impulse buying is a phenomenon, which

has multiple antecedents. The studies have identified various factors having a significant

impact on impulse purchase behaviour such as attractive displays, sales promotion, attractive

packaging, time availability, money availability, the presence of shopping companion,

emotions and hedonic considerations, cognition as well as personal factors which include

age, gender, income and impulse buying tendency. Analysis of these factors has revealed that

some of them are external, which are controlled by the marketers, while others are internal

and within the consumer. However, it is critical to understand that as to how these factors are

interlinked to each other and together contribute towards the phenomenon of impulse buying.

This understanding is of utmost importance for the marketers and retailers in order to

strategize these variables and promote impulse buying in the organized retail formats.

Therefore, based on the association between the various factors a multidimensional

framework of impulse buying has been proposed in the study.

3.1 INSTORE STIMULI

3.1.1 Attractive Display And Impulse Purchase

The retailing business globally is experiencing favourable trends due to the ever-changing

nature of consumer tastes, consumption patterns and buying behaviours. Each retailer‟s

ability to sustainably sell his merchandise, therefore, largely depends on the strategic strength

of the marketing mix activities. Notwithstanding other marketing activities, in-store

marketing activities such as point-of-purchase displays and promotions, through background

music and supportive store personnel are all instrumental in winning the consumers as well

as encouraging them to spend more. Given the power of impulsive buying in enhancing

78

revenues and profits the marketers are trying to influence in-store decisions of their

potential consumers by creating enjoyable, attractive and modern state-of the-art

environments ranging from background music, favourable ventilation, freshened scent,

attractive store layout, in- store displays and persuasive shop assistance among other things.

This trend is more evidently visible in the shopping malls.

The store environments in the malls are intentionally designed to result in a pleasurable

consumer experience. According to POPAI (Point of Purchase Association International)

shoppers make an overwhelming number of their purchasing decisions in-store. In fact, the

in-store decision rate has climbed from 70% in 1995 to 76% in 2012 out of which 55% are

usually unplanned (POPAI Shopper Engagement study, 2012). This further suggests that

although there are many aspects involved in marketing products an increasingly important

decision is to understand and create a successful visual presentation at the point of sale which

highlights the extremely important role of display.

Visuals of product displays develop impressions at the first sight pushing the shoppers to buy

a product. In other words attractive store displays create an image in the minds of shoppers,

thereby making them to buy that product emotionally. Moreover, these displays make the

shopping environment exciting for shoppers to buy things with pleasant experiences.

Displaying a store‟s merchandise attractively at the point of sale tends to maximize sales

figures when placed in key positions within a store .Thus, point of sale displays are the

perfect solution to displaying a wide range of products, clearly indicating that an increased

impulse purchasing is not only because of the type of product being sold but also the way the

merchandise is being displayed. However, the most important aspect of successful in-store

displays is to understand the customers and their habits (Terrazas, 2006). This understanding

helps in developing strategic displays, which further help in increasing sales especially

through unplanned purchases by the consumers. This is so due to the fact that the display

provides information about new products, current trends, and coordination tips to the

customers. Window displays and end of aisle displays are of greater importance while

referring to impulse purchase. Window display in fact defines the store and gives an idea of

what the store is all about to the customer hence determining the entry of a customer into the

store or away from it and prevents unnecessary consumption of energy and time . It is an

79

effective tool to use when the image of the store needs to be changed. Window display is

emerging as the new mantra in retail and is fast changing from a dull, uninteresting

exhibition of wares in the store window to a dynamic form of advertising. Its importance lies

in the fact that it is the first point of contact between the store and the customer and offers a

chance to create the most critical first impression on the customer. Today more retailers are

placing increased importance on window display to attract passerby‟s attention and

ultimately transform shoppers into consumers (Diamond & Diamond, 1996).

Another form of in-store display which is an important antecedent to impulse buying

behaviour is mannequin display. Therefore, efforts need to be made continuously to reinforce

usage of in store form/mannequin displays and functions of signs to create favourable

shopping environments and influence consumers‟ both in-store responses and future store

choice decisions. There is no substantive evidence to indicate that window display leads to an

increase in sales. However, a number of cases have been noted wherein displays can increase

the rate of unplanned purchase in retail stores (Peak & Peak, 1977; Quelch, 1983)

In several studies (Abratt and Goodey, 1990; Gutierrez, 2004) product display has been

identified as an in store stimulus, which is used to encourage impulse buying. These studies

have found that displays can increase the rate of unplanned purchases and is one of the most

influential factors in impulse purchasing. The primary purpose of displays is thus to achieve

additional contact with the customers (Sullivan & Adcock 2002, p. 146; Tellis 1998, p. 235).

In another study by Kumar and Leone (1988) point of purchase displays has been found to be

very useful in stimulating sales. This is meant to provoke a buying impulse in the consumers

(Omar 1999, p. 287).

Retail displays have many beneficial effects if principals of modern store design are

understood and it is known which type of display to use and at which position it is to be

placed. It has been seen that shoppers are attracted to a well presented product and are

willing to accept the price for a higher value they perceive. In addition, retail display

increases the products' sales potential and stimulates impulse purchase securing bottom line

profits. It also keeps the brand uniform by keeping a consistent brand image across a broad

range of categories and formats. Much of the sales in retail shops depend upon impulsive

80

buying, as when a customer enters a shop, he or she is attracted by the merchandise on

display and makes a purchase. Therefore, good display of merchandise is one of the cardinal

time-tested principles for success in the retail industry and must be followed.

From the above, it is inferred that both the merchandise assortment and shopping

environment including store displays need to be improved to trigger impulse purchases.

Display has the potential to attract more customers than a hoarding or a television

advertisement. Moreover, it is pertinent to mention that it attracts the right kind of customers.

As a result of this, time and energy of the salesmen is also saved as they need not concentrate

on customers who might not be potential buyers. It is true in the present context, where in a

highly competitive environment; only those retailers who exceed the expectations of their

customers in terms of providing an enjoyable shopping experience can survive and become

successful.

In other words, displays aim at influencing customers‟ impulse buying. As a consequence

their effect should be maximized when using impulsively bought product categories and the

effect should be minimal under conditions where routine buying occurs. When consumers are

exposed to visual stimuli, they are more likely to make purchase decisions on impulse

thereby suggesting that these stimuli provoke a desire that ultimately motivates a consumer

to make an unplanned purchase decision upon entering the store. Hence, it suggests a

significant influence of visual stimuli on consumers‟ impulse buying behaviours.

Also, according to the concept of impulse purchase proposed by Desmet & Renaudin(1998)

impulsive consumers are not looking for an impulse purchase item, therefore, the store

display must be prominent and eye-catching so that the consumers notice the product.

However, the challenge is difficult as these consumers are becoming more immune to such

kinds of prominent displays since they are exposed to impulse offers on a regular basis.

Therefore, the marketers need to be more sophisticated in terms of new strategies of product

display because in today‟s world prominent display of many products has become easier

which has increased the competition in the market. Analysis of the developed countries

suggests that in these economies window display is a critical tool of marketing; however, in

India, it is in a nascent stage.

81

3.1.2 Sales Promotion and Impulse Purchase

Apart from the displays, promotional tools also play an important role in the impulse buying

phenomenon. Promotion is used to ensure that consumers are aware of the products that the

organization is offering. It is, undoubtedly, the most visible element of the marketing mix

(Govoni, Eng and Galper, 1986; Guiltinan and Paul, 1994; Lamb, Hair and McDaniel, 1992;

Pride and Ferrel,1989).

The promotional mix is the combination of the different channels that can be used to

communicate the promotional message to the consumers .The channels to be used are;

advertising, direct marketing, public relations and publicity, personal selling, sponsorship and

sales promotion (Rowley, 1998). One of most important channels among them is sales

promotion. It is a kind of in store-stimulus employed to increase unplanned purchases of

products. The techniques include in-store settings, on-shelf positions, price-off, sampling,

point-of purchase displays, coupons, samples demonstrations etc. It is a type of marketing

aimed either at the consumer or at the distribution channel.

It is the most important component of marketing budgets, in terms of magnitude and growth

rates. The increased importance of sales promotion as a strategic tool in mature consumer

markets has generated strong interest among practitioners in understanding the mechanisms,

effectiveness, and efficiencies of different sales promotion approaches (Huff and Alden,

1998). The retailing literature suggests that there are three major types of sales promotions:

consumer promotions, retailer promotions, and trade promotions. Consumer promotions are

promotions offered by manufacturers directly to consumers, retailer promotions are those

offered by retailers to consumers and trade promotions are the ones offered by manufacturers

to retailers or other trade entities (Blattberg and Neslin 1990). As the present study is

consumer centric, the promotions which are aimed at consumers have been analyzed.

According to the International Chamber of Commerce‟s (ICC) International Code of Sales

Promotion Practices, consumer-oriented sales promotion encompasses techniques like

sampling which include any method used to deliver an actual or trial size product to

consumers”( Shimp, 1993). It is generally considered the most effective way of generating

trial, though it is the most expensive (Belch and Belch, 1995). Another technique included in

82

consumer promotions is the use of coupons which again is a promotional device that provides

cent-off savings to consumers upon redeeming it (Shimp, 1993, p.496) and these coupons can

be disseminated to consumers through newspapers and magazines, direct mail and packages.

Further these promotions also include premiums and price off. A premium is an offer of

merchandise or services either free or at a low price that is used as an extra incentive for

buyers (Belch et al, 1995, p.494). Several forms of premium offers, serving different

purposes exist which includes free-in-the-mail premiums, in-and on pack premiums, and self-

liquidating premiums whereas price-off is a reduction in a brand‟s regular price. According

to Blair and London (1981), the major reason for marketers to use the price-off reduction is

that such type of deal usually presents a readily apparent value to shoppers, especially when

they have a reference price for the brand and therefore they are able to recognize the value of

the discount. In addition, there are certain other consumer promotion tools which include

techniques like bonus packs including extra quantities of a product that a company offers to

consumers at the regular price by providing larger containers or extra units, refunds and

rebates which is a practice wherein the manufacturers give cash discounts or reimbursements

to consumers who submit proofs of purchase”( Shimp,1995,p.520),contests and sweepstakes

where the consumers get a chance to win cash, merchandise or travel prizes. However, there

are some differences between the two practices. A contest is a promotion where consumers

compete for prizes or money on the basis of skills or ability. In a sweepstake, winners are

determined purely by chance. Finally, consumer promotion tools also include event

sponsorship where a company develops sponsorship relations with a particular event. A large

number of events these days use sponsorship support to offer more exciting programs and to

help settle rising costs. Sponsorship allows to reach specifically targeted niche markets

without any waste. In addition, it is a powerful complement to other marketing programs,

having a dramatic influence on customer relations.

There is sufficient evidence for the fact that promotion is an important tool for triggering an

impulse purchase. According to the Yankee Group (November, 2000), 75% of survey

respondents have indicated that a “special sale price” motivated them to make a spontaneous

purchase. In addition, Ernst & Young (January, 2000) has also reported that 88% of impulse

purchases were because shoppers found products that were offered at a good price or on sale.

83

Besides, the literature supports the fact that high impulse buyers are more likely to be

susceptible to external stimuli such as advertisements, visual elements and promotional gifts

as compared to low impulse buyers (Youn and Faber, 2000).This fact has also been analyzed

in a study by Schindler (1989),wherein it is suggested that price promotions activate

consumers‟ smart shopper feelings, which has been described as an ego-expressive aspect of

a price resulting from the excitement of getting a good deal. Prior research has also supported

the idea that feeling of being a smart shopper is a significant outcome of responding to a

price promotion (Babakus, Tat and Cunningham, 1988). Marketers, therefore use sales

promotions as an external stimulus to evoke consumer feelings and it in turn saves money,

as by using price promotions the consumers response is likely to increase (Schindler,

1989).In addition, Miller (1998) has observed that in-store marketing programs have

flourished with words like „free‟, „economy‟, „extra‟, „more‟, „value‟, „saving‟, and „bargain‟

thereby promoting ideas of value for money and reinforcing the shoppers‟ self concept as a

„rational consumer‟.

Overall, the literature pertaining to the behaviour of shoppers in the traditional marketplace

suggests that the excitement of finding a good deal is likely to lead consumers to buy more

(Morris, 1987; Rose, 1988). Therefore, susceptibility to sales promotions causes consumers

to experience feeling of excitement and being exposed to such stimuli eventually triggers an

inducement to buy more. Thus, sales promotion activities help to stimulate the customers‟

appropriate psychological reactions and promote their impulse to buy.

Considering the above mentioned facts, nowadays, retailers understand the significance of

impulse buying phenomenon and attempt to attract more customers through incentives that

makes them impulsive in stores. While impulse buying generates a large amount of product

sales every year ( Hausman, 2000), it is important for marketers and managers to plan more

effective strategies to increase consumers‟ impulsive buying in order to make more profit.

Therefore, a study of customer behaviour in response to sales promotion techniques in retail

stores deserves a great deal of attention than it has been given so far, as a lot of energy and

money is being spent on sales promotional activities without factual knowledge of what these

84

really accomplish. Therefore, understanding the dynamics of sales promotions and how they

trigger purchase intentions including spontaneous purchases need scholarly attention.

3.1.3 Attractive Packaging and Impulse Purchase

JO DIKHTA HAI WOH BIKTA HAI! Was the line for marketers sometime back but, the

phrase has now changed to JO ACHA DIKHTA HAI WOH HI BIKTA HAI!

In recent years, packaging has developed beyond its original function from being merely a

means of product protection to playing a key marketing role in developing shelf appeal,

providing product information and establishing brand image and awareness. In simple terms

packaging is defined as the technology and art of preparing a commodity for convenient

transport, storage and sale (Jahre and Hatteland, 2004) so much so that it is one of the most

important factors in purchase decisions made at the point of sale (Prendergast and Pitt, 1996).

Shimp (2000) has also stated that the retail store environment is a brand‟s contact point in

delivering its messages to consumers regarding the products and services offered. It is

estimated that 60 to 70% of decisions to buy certain brands of packaged products are made

while the consumer is inside the store. In a modern retail store, consumers directly face a

meeting point where various brands are displayed on shelves. According to a study by Dhar

(2007), packaging plays an important role at this meeting point (also known as the point of

purchase), as this is the most important point of interaction between brands and consumers; it

is at this stage that consumers decide which brands to purchase. This has been further

supported by Duncan (2005) who has stated that packaging is the main instrument of

communication with which companies can deliver brand messages. Therefore, the packaging

needs to be perceived as a highly important marketing communication tool in communicating

the brand message, and has to be utilized to the fullest at the point of purchase in order to

attract consumer attention.

From the packaging literature, it has been seen that packaging fulfils multiple purposes in

relation to a firm‟s external activity. It can be considered as an integral part of the product

and is the first point of contact with the brand for a consumer product (Rundh, 2005) and

plays a key role in the modern retail set up. In the context of organized retail, the shopping

85

experience can be substantially enhanced by the colour graphics and visual merchandising

effects of attractive packaging. Although, the previous studies have shown that the

managerial focus toward packaging has increased, a review of marketing literature reveals

that there are few theoretical contributions in the area of packaging and relatively fewer

efforts in relation to its impact on the marketing function such as consumer behaviour

(Rundh, 2005) especially impulse buying. In a research by Silayoi and Speece (2004) the

researchers have stated the importance of packaging design as an emerging communication

and branding device in the competitive market. The study has inferred that the elements of

packaging are the main factors in the assessment and decision of household products

purchases. In addition to it, Juwita (2008) has also commented that, in addition to promotion,

packaging design also affects impulsive buying in the retail sector. In a study by

Natakusumah (2009) it has been revealed that the packaging design of the product has an

important influence on the brand choice in the mind of teenage consumers, which points

towards the fact that packaging design as a point of appeal for consumers is highly beneficial

for the brand.

Retail experts call packaging a first moment of truth as there is only one chance to make a

first impression and this impression must be a creative and memorable one so that the

customers attention is attracted leading to an impulse purchase. In accordance with the above

description, the present study has aimed to analyze the impact of visual and informational

aspect of packaging proposed by Silayoi and Speece (2004) on impulse buying behaviour .As

packaging‟s role in the marketing mix has gained momentum, research into this area has

become increasingly important. Therefore, product packaging has become a critical

component for marketers today.

As impulse buying phenomenon is gaining importance in the shopping malls, it is imperative

for the marketers to understand how packaging contributes to such purchase behaviour. Since

impulse buying is caused by both internal as well external factors so marketer needs to make

efforts towards the proper placement of attractively packaged goods to elicit consumer

responses.

86

3.2 SITUATIONAL FACTORS

In addition to the in store stimuli, situational factors also exert an important influence on the

impulse buying behaviour of the consumers. Situational factors refer to both environmental

and personal factors that are present when the consumer makes the impulse purchase

(Dholakia, 2000). These factors include the time available, money available, presence of

others, and in-store browsing.

3.2.1 Time Availability and Impulse Purchase

Theoretically it has been identified that a consumer goes through five stages in the decision-

making process, which include motivation, need or problem recognition, information search,

alternative evaluations, and final purchase (Engel et al., 1993). During the decision-making

process, the consumers use rational thinking. However, there are factors, such as time and the

encouragement of peers, which cause consumers to abbreviate the decision-making process

to make purchase decisions and therefore exhibit another type of consumption behaviour,

called "impulse buying" (Mowen and Minor, 1998).

The time availability variable relates to feeling of shoppers about amount of time, which a

person has available in one day and it is opposite of time pressure (Beatty & Elizabeth

Ferrell, 1998).In a study by (Beatty & Smith, 1987), it has been found that time available has

positive effect on buying behaviour. On the other hand, time pressure has a negative effect on

unplanned purchases and tends to reduce them as reduced time alters individuals‟ mood and

impedes their search activities while shopping. Specifically, limited time available for

shopping leads to frustration and negative reactions to the surrounding environment, which in

turn generates negative emotional states. However, ample amount of time available for

shopping does not guarantee to bring forth positive emotional states. In other words, the time

a consumer has for shopping determines whether he or she will be impulsive.

Beatty and Ferrell (1998) in their study have advocated that there is strong influence of

available time on impulse buying. Therefore, sellers must attempt to affect the time shoppers

think they have available in the store. The retailers do this by making shopping more

efficient, such as by helping the buyer in finding their planned items more quickly.

87

Consequently, as consumer spent more time in shopping environment, they are more likely to

make more impulse buying as unplanned buying has become part of consumer society today.

It is so due to the fact that individuals buy goods and services with discretionary income

intentionally, but without prior planning (Mesrinata, 2009).Consumers who have low

entertainment values for shopping are more efficient, spend less time in the store, and see a

lower net benefit of engaging in unplanned purchasing.

Therefore, it is said that happy shoppers are both born and made. The challenge for the

marketers is to find the ones who are made and get them in the store more often and also

make all the shoppers happy once in the store. For example, if merchandise is laid out poorly

and the consumer has to search for his or her planned items it will result in lesser time to

browse for potential impulse items, which in turn leads to more frustration with the

experience in the store. Thus, it is all the more important for the marketers and retailers to

understand the criticality of time and accordingly manage the aesthetics in the shopping

malls so that the customer is exposed to most attractive cues in a short span of time available

and induce them to buy spontaneously and result in an impulse purchase.

3.2.2 Money Availability and Impulse Purchase

According to Beatty and Ferrel (1998) money availability is “the amount or budget an

individual perceives she or he has on that day” (p. 176). The authors have connected money

availability directly with impulse buying as money acts as a facilitator for purchasing the

desired good. It produces more positive affect and less negative affect while shopping, and as

a result, there is an increased possibility of impulse buying.

In the impulse buying process, availability of money has an important role, for example it

can be a facilitator (Beatty & Elizabeth Ferrell, 1998), as it increases the buying power of the

people. If the people don‟t have required money, they avoid buying and the shopping

environment. Studies have also revealed that when individuals have money available, it leads

to positive affect and this positive affect influences impulse buying, however, some

researches have also indicated that with the availability of money, people tend to avoid

impulse buying (Heidarizade and Taherikia, 2010).

88

Consumers' perception of money available to them is also influential in the consumer

decision making process. Perception of greater money availability tends to reduce the

potential for negative feelings about the environment and produce more positive feelings

while shopping. The positive feelings, in turn, generate more urges to buy impulsively and

feelings of greater financial resources also directly influence whether these urges are

fulfilled. The amount of available funds is thus an encouraging factor to buy on impulse as

the feeling of having more money allows purchasing without having second thoughts. The

feeling of having more money creates a better shopping mood; hence a positive mood state

increases thereby increasing the chances of impulse buying (McGoldrick, 2002).

Perceived money available for consumers is also influenced by the recency of their pay check

or other financial windfalls thus, retailers tie their sales events to paydays or tax return

periods. As a result of this, the retailers are strategizing to make more money available

through easy credit lines or discounts tied to opening a charge or buying something on that

particular shopping trip.

In the shopping malls today most of the payment is usually made with non-cash, i.e. with a

credit or debit card or money transfer. In research on impulse buying, the availability and use

of credit cards has been viewed to be encouraging impulse buying. As Dittmar & Drury

(2000) in their study have pointed out that the payments by credit card do not really feel like

spending money. The large ratio of credit card purchases made online is considered as a

factor increasing susceptibility to impulse buying .Therefore, it is in the interest of all the

retailers to accept credit card payments so as to encourage impulse buying.

3.2.3 Shopping Companion and Impulse Purchase

Studies have shown that the environment plays a key role in influencing the consumers to

buy on impulse. In addition to it, the companions for shopping also exert an influence on the

buying decisions. It has been seen that most people are accompanied by companions when

they visit shopping malls, these shopping companions may include friends, family members

and colleagues. While making a purchase, the consumer receives a kind of reassurance from

the shopping companion that he or she is making the right decision. Thus, a shopping

companion is a kind of stimulus in the impulse purchase process that creates a favourable

89

environment for the consumer to make a purchase which was not planned earlier. The

shopping companions play a motivating role in stimulating impulse purchase. When a

customer is in a state of mind where he or she has not planned the purchase and is a little

doubtful, the positive feedback about the product under consideration motivates the customer

to make the final purchase decision.

When consumers make a purchase in the presence of others they try to conform to group

identity and meet the expectations of others and behave or think in a similar way as other

group members. The presence of other people in a retail setting therefore has variable effects

on impulse purchases for example contact with others has an informational element and

influences the cognitive aspect of impulse buying (Silvera et al, 2008) which may sometimes

decrease the probability of buying on impulse.

The presence of others in a purchasing situation influences the decision to make a purchase.

Consumers believe that other people‟s opinion and behaviours are credible and they also use

others‟ behaviours as justification for their own or as visible indicators for socially desirable

activities. Moreover, shopping with others may be due to social motivations (e.g., fun,

enjoyment, and company) or assistance motivations (e.g., moral support for decisions and

product expertise/information). In the case of impulsive buying, the social aspect takes

prevalence as a motivation for engaging in such behaviour. Peers and family members being

the primary source of influence have different normative expectations. Peers are more

receptive to the urge of purchasing and induce less pressure to monitor one‟s behaviour.

Monitoring the behaviour may refrain one from engaging in impulsive purchases. The

motivation to conform to social norms is affected by the inherent susceptibility to social

influence and the structure of the group (cohesive or not cohesive) (Luo, 2005).

Literature has revealed that the presence of others can increase the likelihood of an impulse

purchase (Luo, 2005). On the other hand, the presence of others can have a deterring effect

on the consumers, when they feel that the behaviour will be perceived as being irrational

(Rook and Fisher 1995). In such cases, the consumers choose to make the purchase when

they are alone. However, marketing research suggests that shopping with others leads to

positive outcomes. A number of research attempts have pointed out that spontaneous

90

behaviour becomes particularly likely when consumers feel a strong degree of group

cohesiveness and thus, consumers experience enhanced feeling of readiness for impulse

decisions. From the above, it is inferred that presence of companions while shopping has an

influence on the shopping behaviour and is thus chosen as one of the situational factors

affecting impulse purchase.

3.4 THE ROLE OF EMOTIONS AND HEDONISM IN PURCHASE BEHAVIORS

As it has been seen that the prevailing paradigm used to describe consumer behaviour is the

rational choice model that treats preferences as the outcome of a cognitive process focusing

on the utilities and values. Consequently, most consumer researches have been

predominantly cognitive in nature, and the factor often neglected in this approach is the role

of affect, which has received minor attention. A wide range of purchase behaviours are well

described by this utilitarian view, yet for a more complete understanding of consumer

behaviour, it must be recognized that people are influenced by both long term rational

concerns as well as by short term emotional factors (eg. Batra, 1986; Hirschman & Holbrook,

1982; Hoch & Loewenstein , 1991; Shiv & Fedorikhin, 1999; Van der Pligt et. al, 1998).

Recent developments in social and consumer psychology have suggested that affect plays a

central role in the decision making process (Kunda, 1999; Pham,1998). A study by Holbrook

and Hirschman (1982) has stressed upon the importance of considering behavioural domains

typified by richer emotive experience (emotions such as: love, hate, fear, anger, joy, sadness

etc. ) than simply pleasant or unpleasant affect , and that consumption must be seen as

involving a steady flow of fantasies, feelings, and fun by what is known as the “ experiential

view”. A substantial amount of research has shown that affect is a broader term and

significant factor of consumer behaviour and includes moods, feelings and emotions

(Bagozzi et. al, 2002; Cohen &Areni,1991; Havlena & Holbrook, 1986; Hoch &

Loewenstein , 1991; Pham, 1998; Rook,1987). The positive affect and negative affect are

two distinguishable dimensions, which are orthogonal to one another. It is pertinent to

mention that the Consumers' emotions or affective states are regarded as potent internal

triggers for impulse buying (Watson & Tellegen, 1985).

91

Indeed, the relationship between pleasant emotions and purchasing behaviours is relatively

well supported in the retail literature (Donovan and Rossiter 1994). In particular, the

Mehrabian-Russell model (1974), which explains the relationship between environments,

intervening variables, and behaviours relevant to retail setting using a Stimulus-Organism-

Response paradigm, has received the widest usage to explain shopping emotions in consumer

behaviour research. One such type of behaviour which is mainly associated with emotions is

impulse buying.

The impulse buying process occurs as a result of creating affect through the classical

conditioning of positive feelings toward the product. When the consumer encounters a

product, processes the information about it holistically and reacts with an extremely strong

positive affect an impulse buy takes place (Burroughs, 1996).Impulse buying can be

considered a type of hedonic consumption with a primary purpose to obtain pleasure and

gratification in shopping. Therefore, along with the role of emotions they have an

experiential view.

In addition to emotions, hedonism also plays a significant role in the impulse buying

phenomenon. Hedonic shopping value refers to the level of perceptions where shopping is

considered emotionally useful through positive feelings. This fact has also been confirmed by

a number of studies (Piron, 1991; Rook, 1987; Hausman, 2000), which support that impulse

buying satisfies many hedonic desires. Moreover, Ramanathan and Menon (2006) have

asserted that the reason behind impulse buying is hedonic gratification. This has also been

reported by Herabadi et al., (2009) who have also found a significant relationship between

hedonic motives and impulse buying. Arnold and Reynolds (2003) in their study have

emphasized the importance of hedonic motives for inducing impulse buying and suggested

that there should be studies focusing on the relationship between the types and intensity of

hedonic motives and impulse buying. In view of that, there are conceptual studies supporting

the relationship between hedonic motives and impulse buying (Peck and Childers, 2006). The

literature (Cobb and Hoyer, 1986; Hausman, 2000; Rook, 1987; Rook and Fisher, 1995;

Thompson, Locander and Pollio, 1990; Ramanathan and Menon, 2006; Peck and Childers,

2006) has recognized the influence of hedonic motives on impulse buying. As a result,

consumers going shopping with hedonic motives may buy products without prior intention

92

(Tauber, 1972). In the present time, as the needs of the consumers have become more

diverse, the studies have focused on the hedonic shopping value.

3.5 COGNITION AND IMPULSE PURCHASE

Along with the role of emotions, it is also important to mention the role of cognition.

Cognition is one of the most important factors that determine affect resulting in positive

purchase intentions and behaviours. Another stream of studies (Lutz, 1982) claims that

thinking and feeling are two independent systems. According to Bitner (1992) cognition is a

necessary but not sufficient condition to elicit emotions and consequently impulse buying.

However, Zajonc and Markus (1984) have contended that emotion can take place without

cognitive processes. Therefore, the role of cognitive processes on impulse buying is subject

to further studies.

Cognitive process refers to mental structures and processes involved in thinking,

understanding and interpreting. The cognitive factors along with the affective ones are the

influences in triggering needs. The recognition of this combination of thoughts and emotions,

created and perceived by the consumer has lead to the present day understanding of impulse

buying. While retailers recognize this as important, there is a lack of empirical evidence as to

how the shoppers‟ in-store experience in terms of their perception of store atmosphere and

the cognitive responses influences their shopping behaviour. Most of the studies concentrate

on how the stimuli elicit emotional responses which in turn influence the shopping outcomes.

There are a few studies which indicate the role of cognition in shopping behaviour. The study

by David H. Silvera, Anne M. Lavack and Frederic Kropp (2008) has supported the need to

differentiate between cognitive and affective facets of impulse buying tendencies. Therefore,

there is a need to understand how cognition influences the impulse purchase behaviour.

3.6 PERSONAL FACTORS

3.6.1 Impulse Buying Tendency and Impulse Purchase

Existing research on impulse buying suggests that impulsiveness is a trait. The origin of this

point of view is in psychology, as it is stated that a person‟s general impulsivity is seen as

93

affecting impulse purchases. The basic assumption behind these studies is that individuals

vary in their tendency to buy on impulse. Impulse buying tendency is defined as the “degree

to which an individual is likely to make unintended, immediate and unreflective purchases”

(Jones et al. 2003, p. 506).

In addition to environmental factors, the internal factors also have a significant role in

increasing the tendency to impulse buying as well (Beatty and Ferrell, 1998; Verplanken and

Herabadi, 2001; Harmancioglu et al. 2009). These factors are based on the personality of the

consumer. So, the main focus lies on the individual and not on the external environment. In

this regard, the internal stimuli and the personal characteristics which encourage them to

impulse buying are very important to investigate.

In fact, people differ in their degree of impulsive buying tendencies; some people have high

propensity to react to a sudden buying impulse, whereas others do not respond to such

stimuli. Beatty and Ferrell (1998) in their study on consumer research have demonstrated that

buying impulsiveness is a distinctive personal trait that represents one‟s tendency to think

and to act in a distinctive, identifiable way. Highly impulsive buyers are more likely to react

to spur-of-the-moment buying stimuli, they are more open to unexpected buying ideas; they

are triggered by physical proximity to a desired product and are dominated by emotional

attraction to the product as well as the immediate gratification (Rook and Fisher 1995).

Hence, they experience buying impulses more frequently and strongly than other buyers and

are more likely to respond positively to their buying impulses. Yet, even highly impulsive

buyers do not respond to every buying stimulus, because various intervening factors such as

economic position, social visibility, or time pressure may interrupt the shift from impulsive

desire to impulsive behaviour (Rook and Fisher 1995).

Several studies have investigated the role of buying impulsiveness trait within different

contexts and demonstrated that buying impulsiveness trait is strongly linked to impulsive

buying behaviours. Rook and Fisher (1995) in their study have suggested that consumers‟

appropriateness of engaging in impulsive buying in a particular situation is moderated by

individuals‟ buying impulsiveness trait.

94

The results of the study by Youn and Faber (2000) have also revealed that consumers with a

higher IBT are more likely to be affected by marketing stimuli such as advertisements, visual

elements, or promotional gifts and thus engage in in-store browsing and tend to respond more

frequently on urges to buy impulsively. Thus, the impact of impulse buying tendency has

been analyzed on impulse buying.

3.6.2 Age, Gender, Income and Impulse Buying

The impulse buying behaviour also shows variations with respect to the personal factors

which include age, income and gender. Many studies have examined the relationships of

demographic variables and impulse buying behaviour. In one such study, Bellenger et al.

(1978) have examined the relationship between the tendency of impulse buying and

demographic characteristics such as age, gender, race, and income, and found that impulse

buying is only related to age and is found to be greater in the under-35 and over-65 age

groups. Similar to Bellenger et al.‟s (1978) study, Underhill (1999) has also found that the

tendency of impulse buying for both genders is similar and approximately 60 to 70% of

purchases in supermarket by both genders are on impulse. The author has also commented

that for many women there are psychological and emotional aspects to shopping that are just

absent in men. Women are generally more patient and inquisitive than men about purchase

decisions and they take pride in their ability to select the perfect item.

Lin and Chuang (2005) have examined individual differences in buying impulsiveness trait

and found that highly impulsive adolescents engage in more impulsive buying behavior than

low impulsive adolescents. The results have also pointed out that buying impulsiveness trait

is significantly correlated with gender, age, and the amount of pocket money available.

Further analysis of literature has suggested that the difference among the consumers in terms

of consumer impulsivity on the basis of demographics partly reflects the fact that typically

men and women shop for different kind of products and the income levels of the consumers

also affect the impulsive behaviour. In addition, the age factor is an important determinant of

the impulse buying behaviour as studies have suggested that mostly the young shoppers

engage in such type of behaviour. Therefore, these findings have important implications for

95

the marketers and retailers. They need to try and identify consumers and segment them on

these bases so as to make maximum profit by encouraging impulse purchases.

3.7 Proposed Theoretical Framework

Most of the researches undertaken in the past for analysing impulse buying, have investigated

the effect of one or more limited factors affecting this behaviour and no research has

investigated the concurrent effect of all stimuli, demographic, situational, personal and

psychological factors together. Hence, in the present research a theoretical framework has

been proposed that includes all the aforementioned factors and explains their concurrent

effect on the impulse buying. Based on the literature reviewed, the following research gaps

have been identified as under:

1. There is almost no study which has empirically investigated the role of in-store stimuli,

situational factors, personal factors, emotions and hedonic considerations together on impulse

buying in organized retail sector.

2. The researches which provide an overall framework of determinants are mostly in online

context.

3. There are very few studies which have been done in Indian context on impulse buying.

4. Only a few researches have been conducted, which link emotions and cognitions along

with the role of intermediates.

5. Previous studies have examined the role of emotions on impulse buying but in the present

study another component of hedonic considerations has been added, as it has an emotional

experience.

This study explores a framework of impulse buying in conjunction with store environmental

stimulation and situational aspects of consumption in the shopping malls. The findings of the

study are expected to add to the existing literature by providing insight into consumers‟

impulse buying behaviour. Understanding impulse buying behaviour offers retailers guidance

in developing strategies that create shopping opportunities. These marketing strategies may

help retailers to manage and encourage their purchase intentions. The benefits include an

96

increased market share for retailers and positive perceptions of impulse buying by

consumers. Consumers are expected to benefit from the findings of this study by being more

aware of the factors affecting their own impulse buying behaviours.

97

REFERENCES:

Abratt, R. and Goodey, D. S. (1990), “Unplanned Buying and In-store Stimuli in

Supermarkets”, Managerial and Decision Economics, 11(2),pp. 111-122.

Arnold, M. J. and Reynolds, K. E. (2003), “Hedonic Shopping Motivation”, Journal of

Retailing, 79(2), pp. 77-95.

Baba,S. and Fedorikhin,A. (1999), “Heart and Mind in Conflict: The Interplay of Affect

and Cognition in Consumer Decision Making”, Journal of Consumer Research, 26

(December),pp. 278-292.

Bagozii, R., Gurhan Canli , Z. and Priester , J.(2002) The Social Psychology of Consumer

Behavior .1st ed., Open University Press.

Batra, R. (1986). Affective advertising: Role, processes, and measurement. In R. A.

Peterson, W. D. Hoyer, & W. R. Wilson The role of affect in consumer behaviour: Emerging

theories and applications. Toronto: Lexington Books.

Beatty, S., Ferrell, E. (1998), “Impulse Buying: Modelling Its Precursors”, Journal of

Retailing. 74(2), pp. 169-191.

Beatty, S.E. and Smith, S.M. (1987), “External search efforts: an investigation across

several product categories”, Journal of Consumer Research, Vol.14, pp. 83-95.

Belch, G.E. and Belch, M.A. (1995), “Introduction to advertising and promotion: An

integrated marketing communication perspective”, in Richard D. Irwin Inc., 3rd

Ed.,

Chicago, IL, USA.

Bellenger, D.N., Robertson, D.H. and Hirschman, E.C. (1978), “Impulse buying varies by

products”, Journal of advertising Research, 18(6), pp.15-18.

Bitner, M.J. (1992), “Services capes: the impact of physical surroundings on customers and

employees”, Journal of Marketing, 56, pp.57–71.

98

Blair, E. A. and London, L. (1981), “The Effects of Preference Price in Retail

Advertisements”, Journal of Marketing, 45(2), pp. 83-93.

Blattberg, Robert C., and Scott A. Neslin (1990), Sales Promotion: Concepts, Methods,

and Strategies, Englewood Cliffs, NJ: Prentice-Hall.

Burroughs, J.A. (1996), “Product Symbolism, Self meaning, and holistic matching: The role

of Information Processing in impulsive buying”, Advances in Consumer Research, 23,pp.

463-469.

Cobb, C. J. and Hoyer, W. D. (1986), “Planned versus Impulse Purchase Behaviour”,

Journal of Retailing, 62(4), pp.384-408.

Cohen, J. B.,and Areni, C. S. (1991) Affect and Consumer Behaviour. In T. S. Robertson &

H. H. Kassarjian (Eds.), Handbook of Consumer Behaviour (pp. 188-240). Englewood Cliffs,

NJ: Prentice Hall.

Desmet, P., and Renaudin, V. (1998), “Estimation of product category sales responsiveness

to allocated shelf space”, International Journal of Research in Marketing, 15(5), pp.443-457.

Dhar, Mainak. (2007), Brand Management, Singapore: John Wiley & Sons.

Dholakia U.M. (2000), “Temptation and Resistance: An Integrated Model of Consumption

Impulse Formation and Enactment”, Psychology and Marketing, 17(11), pp. 955-982.

Diamond, J. and Diamond, E. (1996), Fashion advertising and promotion, Albany, New

York: Delmar.

Dittmar, H., and Drury, J. (2000), “Self-image – Is it in the bag? A qualitative comparison

between “ordinary” and “excessive” consumers”, Journal of Economic Psychology, 21(2),

pp.109-142.

Donovan, Robert J. and John R. Rossiter (1982), “Store Atmosphere: An Environmental

Psychology Approach”, Journal of Retailing, 58 (Spring), pp. 34-57.

99

Duncan, Tom. (2005), Principles of Advertising & IMC (2nd ed.), New York : Mc Graw

Hill.

Engel J.F., Blackwell R.D., and Miniard P.W. (1993), Consumer Behaviour (8th Ed.), Fort

Worth: Dryden Press.

Ernst & Young (January, 2000),“Global online retailing report”. Available from http://

www.heltrun .aueb.gr

Govoni, N., Robert,E. and Galper,M. (1986), Promotional Management, Englewood Cliffs

: Prentice Hall.

Guiltinan, J.P. and G.W. Paul (1994), Marketing Management- Strategies and Programs,

Mc.Graw-Hill International Edition, 5th edition, New York.

Gutierrez, B.P. (2004), “Determinants of Planned and Impulse Buying: The Case of the

Philippines”, Asia Pacific Management Review, 9(6), pp.1061-1078.

Harmancioglu, N., Finney, R., Z and Joseph, M. (2009), “Impulse Purchases of New

Products: An Empirical Analysis”, Journal of Product and Brand Management, 18, pp.27-

37.

Hausman, A. (2000), “A multi-method investigation of consumer motivation in impulse

buying behaviour,” Journal of Consumer Marketing, 17(5), pp.403-419.

Havlena, W. J., and Holbrook, M. B (1986), “The Varieties of Consumption Experience:

Comparing Two Types of Typologies of Emotion in Consumer Behaviour”, Journal of

Consumer Research, 13 ,pp. 394–404.

Heidarizade, K., and Taherikia, F. (2010), “The Causes of Impulse Buying: Evaluation a

Model in Iran”, Journal of Management Research.

Herabadi, A. G., Verplanken, B.and Knippenberg, A. V. (2009), “Consumption

Experience of Impulse Buying in Indonesia: Emotional Arousal and Hedonistic

Considerations”, Asian Journal of Social Psychology, 12, pp. 20-31.

100

Hirschman, E.C. and Holbrook, M.B. (1982), “Hedonic Consumption: Emerging

Concepts, Methods and propositions”, Journal of Marketing, 46, pp.92-101.

Hoch, S.J., and Loewenstein, G. F. (1991), “Time – inconsistent preferences and consumer

self-control”, Journal of Consumer research, 17(4), pp.492-508.

Hoch, Stephen J. and George F. Loewenstein (1991), “Time Inconsistent Preferences and

Consumer Self-Control”, Journal of Consumer Research, 17,pp. 492–507.

Huff, L. and Alden, D. (1998), “An investigation of consumer response to sales promotions

in developing markets: A three country analysis”, Journal of Advertising Research,38(3) pp.

47-56.

Jahre, M. and Hatteland, C. J. (2004), “Packages and physical distribution: Implications

for integration and standardisation”, International Journal of Physical Distribution &

Logistics Management, 34(2), pp. 123-139.

Jones, M. A., Reynolds, K.E., Weun, S. and Beatty, S.E. (2003), “The product-specific

nature of impulse buying tendency”, Journal of Business Research, 56 (7), pp.505-511.

Juwita, C.(2008), “The effect of Retail Consumer‟s attitude towards Sales promotion on

impulse buying behaviour”, University of Indonesia.

Kumar, V. and Leone, R. P. , “ Measuring the effect of Retail Store Promotions on Brand

and Store Substitution”, Journal of Marketing Research ,Vol.25 1,pp.78-185.

Kunda, Z. (1999) Social cognition: Making sense of people. Cambridge, MA: MIT Press.

Lamb, C. W., Joseph F. Hair Jr., and Carl McDaniel (1992),Principles of Marketing,

Southwestern Publishing Company.

Lin, C., and Chuang, S., (2005), “The effect of individual differences on adolescents‟

impulsive buying behaviour”, Adolescence, 40(159), pp 551-558.

Luo, X. (2005), “How does shopping with others influence impulsive purchasing”, Journal

of Consumer Psychology, 15 (4), pp.288–294.

101

Lutz, C.A. (1982), “The domain of emotion words on Ifaluk”, American Ethnologist, 9,

pp.113-128.

McGoldrick, P. J. (2002), Retail marketing, Berkshire: McGraw-Hill Education.

Mehrabian, Albert and James Rus s e l l (1974) An Approach to Environmental

Psychology. Cambr idge , Mass :MIT Pr e s s .

Mesrinata (2009) retrieved from http://fundamentaljournals.org/ijfpss/downloads/17-

Foroughi%20010612.pdf

Miller, D. (1998), A Theory of Shopping, Cambridge, UK.

Morris, C. J. (1987), “The operant conditioning of response variability: Free-operant versus

discrete-response procedures”, Journal of the Experimental Analysis of Behaviour, Vol.47,

pp.273-277.

Mowen, J.C. and Minor, M. (1998), Consumer Behaviour (5th ed.), Prentice-Hall, Upper

Saddle River, NJ.

Natakusamah(2009)retrieved from http://journal.ui.ac.id/index.php/jbb/article/view/970/893

Omar O. (1999), Retail Marketing, Prentice Hall.

Peak, H. S. and Peak, E. F. (1977), “Supermarket Merchandising and Management”,

Englewood Cliffs, Prentice Hall, NJ.

Peck, J. and Childers, T. L. (2006), “If I Touch it I Have to Have it: Individual and

Environmental Influences on Impulse Purchasing”, Journal of Business Research, 59(6), pp.

765-769.

Pham, M. T. (1998), “Representativeness, relevance, and the use of feelings in decision-

making”, Journal of Consumer Research, 25, pp.144–159.

Piron, F.,(1991), “Impulse buying and variety seeking: A trait-correlates perspective”,

Advances in Consumer Research, 18, pp.509-13.

102

POPAI shopper Engagement Study (2012) retrieved from

http://www.popai.com/engage/docs/Media-Topline-Final.pdf

Prendergast, G. and Pitt, L. (1996), “Packaging, marketing, logistics and the environment:

are there trade-offs?”, International Journal of Physical Distribution & Logistics

Management ,26 (6), pp.60-72.

Pride, O. and Ferrell O. (1989), Marketing: Concepts and Strategies (5th ed.),Houghton

Mifflin, USA, p. 683.

Quelch, J. A. (1983), “It‟s Time to Make Trade Promotion More Productive”, Harvard

Business Review, May/June, pp. 130–136.

Ramanathan, Suresh and Menon, G. (2006), “ Time-Varying Effects of Chronic Hedonic

Goals on Impulsive Behaviour”, Journal of Marketing Research, 43 (November),pp. 628-

641.

Rook, D. W. and Fisher, R. J. (1995), “Normative Influences on Impulsive Buying

Behaviour”, The Journal of Consumer Research, 22(3), pp.305-313.

Rook, Dennis, W. (1987), “The Buying Impulse”, Journal of Consumer Research, 14

September,pp.189-199.

Rose, R. L. (1988), “Frequent-flier plans become obsessions”, Wall Street Journal,

(September 6).

Rowley, J. (1998), “Promoting and marketing communications in the information

marketplace”, Library Review, 47(8), pp.383-387.

Rundh, B. (2005), “The multi-faceted dimension of packaging – Marketing logistic or

marketing tool? “, British Food Journal, 107 (9), pp.670-684.

Schindler, R. M. (1989), “The excitement of getting a bargain: Some hypotheses concerning

the origins and effects of smart-shopper feelings”, Advances in Consumer Research, Vol.16,

447-453.

103

Shimp, T.A. (1993), Promotion management and marketing communication, USA: Dryden

Press.

Shimp (2000), Terence A. Advertising Promotion: Supplemental Aspects of Integrated

Marketing Communications (Fifth Edition), Dryden Press, Fort Worth, TX.

Silayoi, P., and Speece, M. (2004), “Packaging and purchase decisions: An exploratory

study of the impact of involvement and time pressure”, British Food Journal, 106(8),pp. 607-

628.

Silvera, D.H., Lavack, A.M., and Kropp , F.(2008), “ Impulse buying: the role of affect,

social influence, and subjective wellbeing”, Journal of Consumer Marketing, 25(1),pp. 25-

33.

Sullivan, M., Adcock, D. (2002), Retail Marketing, London: Thompson, p.350 .

Tat, P., Cunningham, W. and Babakus, E. (1988), “Consumer Perceptions of Rebates”,

Journal of Advertising Research, 24(4), pp. 47-52.

Tauber, E.(1972), “ Why do people shop?”, Journal of Marketing,36, pp.46-49.

Tellis, G. J. (1998), Persuasion using Endorsers. Advertising and Sales Promotion Strategy,

USA: Addison-Wesley Longman Inc.

Terrazas, M. (2006), “In-store displays that work”, The Baker, [Online]10 (3). Retrieved 05

August 2008, from the World Wide Web: http://www.thebaker.co.za.

Thompson, Craig J., Locander, William B., and Pollio, Howard R. (1990), “The lived

meaning of free choice: An existential-phenomenological description of everyday consumer

experiences of contemporary married women”, Journal of Consumer Research, 17,pp. 346–

361.

Underhill, Paco (1999) why we buy: the science of shopping. New York: Simon and

Schuster.

104

Van Dijk, W. W., van der Pligt, J., and Zeelenberg. M. (1998), “Investigating the

appraisal patterns of outcome-related and person-related disappointment”, Manuscript under

review.

Verplanken, B. and Herabadi, A. (2001), “ Individual Differences in Impulse Buying

Tendency: Feeling and No Thinking”, European Journal of Personality, 15,pp. 71-83.

Watson, D., and Tellegen, A. (1985), “Toward a consensual structure of mood”,

Psychological bulletin, 98(2), pp.219.

Yankee Group (2000) survey retrieved from

http://www.scribd.com/doc/77304193/Literature-Review-for-Impulse-Buying

Youn, S. and Faber, R. J. (2000), “Impulsive Buying: Its Relation to Personality Traits and

Cues”, Advances in Consumer Research, Vol.27,pp.179-185.

Zajonc, R.B., and Markus, H. (1984), Affect and cognition: The hard interface. In C. E.

Izard, J. Kagan & R. B. Zajonc (Eds.), Emotions, cognition, and behaviour (pp. 73-

102). New York: Cambridge University Press.

105

CHAPTER 4

RESEARCH METHODOLOGY

4.1 RESEARCH PURPOSE

The research study has focused upon investigating the impact of key stimuli on consumers‟

buying behaviour. In the present research various factors affecting impulse buying viz.

display of products, attractive packaging, sales promotion, situational characteristics such as

time availability, money availability and shopping companion, personal factors including

age, gender, income and impulse buying tendency along with the effect of emotions,

cognition and hedonism have been analyzed in the modern retail format.

Impulse buying as a phenomenon holds relevance in organized retail as consumers in the

present scenario exhibit preference for shopping malls, which enable them to shop a variety

of products under one roof and offer shopping experience in terms of ambience and

entertainment. In such modern retail outlets, the retailers concentrate on attractive store

displays; introduce promotional schemes, attractive packaging and try to arouse consumer

emotions to encourage maximum sales. Therefore, the present study has tried to find out the

extent of contribution that each factor makes to impulse buying. This quantitative, non

experimental study has examined four hypotheses and has tried to analyze five research

questions using descriptive statistics, correlation, regression analysis, Independent t test and

ANOVA.

4.2 RESEARCH HYPOTHESES

Impulsive buying today is a common phenomenon in the organized retail sector. Typically,

impulsive buying occurs at the spot, that is, in the shopping environment where the store

stimuli serve as a type of information aid for those who go to the store without any

predetermination of what they need or buy, and once they get into the store, they are

reminded or get induced to buy that they may need after looking around the store. In other

words, consumer‟s impulse buying behaviour is a response made by being confronted with

106

stimuli, which provoke a desire that ultimately motivates a consumer to make an unplanned

purchase decision upon entering the store. The present study has considered attractive

display, sales promotion and attractive packaging as the in-store stimuli.

A study by Hoyer and Maclnnis (1997) has indicated that product displays have increased

impulse purchases. Other studies by Kennedy (1970), Engel et al., (1978) and Wilkinson et

al., (1982) have also found positive relationship between product displays and sales.

Another stimulus that has been found to have a significant impact on impulse purchase is

sales promotion. The promotional elements include surprise coupons, and unexpected

cheaper prices and discounts/ sales/specials. Promotions save money and earn the customers

more benefits, which trigger impulsive consumption. They also satisfy a consumer‟s

psychological perception. Also, in a study by Youn and Faber (2000) it has been concluded

that highly impulsive buyers are more reactive to marketing factors such as advertisements,

promotional gifts, and visual elements. There are numerous studies which indicate that

promotional offers increase the likelihood of impulse buying (Stern, 1962; Abratt and

Goodey, 1990; Marriri and Crispen, 2009; Liao et.al, 2009).

In a study by Usman Ghani and Yasir Kamal (2010), it has been suggested that product

display and attractive packaging are the main reasons for impulse purchases. Esch et. al

(2003) have also indicated that the effectiveness of display usage is moderated by the type of

product under promotion. Therefore, keeping in mind the conceptual framework hypothesis 1

has been proposed as:

H1: In-store stimuli have an influence on impulse buying.

On the basis of the literature mentioned above, hypothesis can be split into the following

three sub hypotheses:

H1a: Attractive Display has an influence on impulse buying.

H1b: Sales Promotion has an influence on impulse buying.

H1c: Attractive Packaging has an influence on impulse buying.

107

Another dimension which has been identified to have an impact on impulse purchase is the

situational factors. The situational factors include both the environmental and personal

factors, which are present when a consumer depicts impulse buying behaviour. These

environmental and personal factors range from time available, money available, the presence

of others, to in-store browsing (Dholakia, 2000). In the present scenario, people work for

longer hours, have less leisure time, shop in stores and spend less time in each of them.

Previous research has indicated that time pressure has a negative effect on impulse buying

behaviour of consumers, as lack of time develops frustration among consumers. The

availability of more time results in a longer stay in the shopping environment and creates

more chances of impulse buying (Beatty & Ferrel, 1998;Inman, Winer, and Ferraro,

2009;Park,Iyer,and Smith, 1989;Iyer, 1989; Iyer et al., 1989; Herrington and Capella, 1995;

Nicholls et al., 1997; Underhill, 1999, Anić and Radas, 2006).

Wu-Chung Wu and Tzung-Cheng Huan (2010) have explored the effects of purchasing

situations (time pressure, economic pressure) and personal characteristics (impulse,

conformity, gender) on students‟ impulse buying behaviour and found that respondents with

high time pressure (limited time) and low economic pressure (larger budget) are more likely

to engage in impulse buying behaviour.

In addition to time availability, money availability is another factor that acts as a catalyst for

impulse buying process, as it raises the purchasing power of the consumer. However, if the

consumers do not have enough money in pocket, they avoid browsing through the retail

setting and there are lesser chances of impulse purchase (Beatty & Ferrell, 1998).

The presence of others can also enhance the possibility of impulse buying behaviour (Luo,

2004). In contrast, the presence of others can also discourage the consumers to buy on

impulse as their behaviour may be perceived as irrational by the companion (Rook & Fisher,

1995). In another study by Mai et al. (2003) it has been concluded that individuals are more

satisfied with their impulse buying decisions, when they are accompanied by an important

person at the time of shopping as compared to when they shop alone.

108

Among the personal factors, the demographic factors also affect the impulse purchase. Age is

among the most imperative factors which predict impulse buying behaviour in consumers

(Bellenger et al., 1978; Wood, 1998). It has been found that young buyers show more

impulsivity in their purchases as compared to aged ones (Rawlings et al., 1995; Helmers et

al., 1995). Similar results have also been suggested by (Lee & Kacen,2002; Gutierrez,2004;

Virvilaite et al,. 2009; Jalees, ,2009) ,who have concluded that the younger individuals have

a greater tendency for impulse buying behaviour as compared to older individuals. However,

Sharma et al. (2009) have reported no relationship between impulse buying and the age of

consumers.

Literature has also identified numerous studies, which have researched the effect of gender

on consumers‟ impulse buying behaviour; however the results of these studies are

inconsistent. Kollat and Willett (1967) found that women buy more on impulse than men

while Bellenger et al. (1978) found no significant relationship between gender and impulse

buying. However, studies by (Cobb and Hoyer, 1986; Mai et al., 2003; Melnikas and

Smaliukiene, 2007; Jalees, 2009; Virvilaite et al., 2009) have reported that women are less

impulsive than men because women usually plan their shopping before entering into the

store.

Among many other factors higher level of income also determines the impulsivity of the

consumers. High income shoppers are more likely to show higher impulse buying tendencies

(Abratt & Goodey, 1990). A study by Mogelonsky (1994) has logically advocated that the

phenomenon of impulse buying is basically for those consumers who are financially in a

position to afford it. With more income in hand consumers face fewer constraints in order to

buy a product on impulse. Such high income consumers usually have a more open shopping

which in turn facilitates them to entertain themselves with rapid and unexpected buying

ideas. Hence, high income consumers shop on impulse more frequently as compared to those

with the low income shoppers. However, it is pertinent to mention that there are few studies

also which found no relationship among the income and impulse buying behaviors of the

consumers (Woods, 1998; Gutierrez, 2004).

109

Also, the impulse buying behaviour may be in response to an environment, which is likely to

be moderated by his or her characteristics. In fact, people differ in their degree of impulsive

buying tendencies; some people have high propensity to react to a sudden buying impulse,

whereas others do not respond to such stimuli. Yet, even highly impulsive buyers do not

respond to every buying stimulus, because various intervening factors such as economic

position, social visibility, or time pressure may interrupt the shift from impulsive desire to

impulsive behaviour (Rook and Fisher, 1995). Foroughi et.al (2011) has also found a

significant relationship between impulse buying tendency, shopping enjoyment and in store

browsing on impulse purchase. Thus, hypothesis 2 is proposed as follows:

H2: There is a significant impact of situational and personal factors on impulse buying.

As the proposed hypothesis includes two distinct dimensions, therefore it has been split into

two sub hypotheses H2a and H2b:

H2a: There is a significant impact of situational factors on impulse buying.

H2b: There is a significant impact of personal factors on impulse buying.

From the literature presented above, the hypothesis H2a has further been divided into three

sub-hypothesis.

H2a1: There is a significant impact of time on impulse buying.

H2a2: There is a significant impact of money on impulse buying.

H2a3: There is a significant impact of shopping companion on impulse buying.

Similarly, the hypothesis H2b has also been propounded further into four sub hypotheses:

H2b1: Age has a significant impact on impulse buying.

H2b2: Gender has a significant impact on impulse buying.

H2b3: Income has a significant impact on impulse buying.

H2b4: Impulse buying tendency has a significant impact on impulse buying.

110

Emotions dominate the impulse buying process. Although impulsive buying does not

completely preclude information processing, emotions play a key role in the impulse buying

process (Weinberg and Gottwald, 1982) and directly lead to impulse buying action (Beatty

and Ferrel, 1998; Piron, 1993; Rook, 1987). The emotional state of the consumer is an

important determinant in their purchase behaviours (Sherman, Mathur and Smith, 1997;

O‟Neill and Lambert, 2001). Eun Joo Park, Eun Young Kim, Judith Cardona Forney, (2006)

have found that fashion involvement and positive emotion had positive effects on consumers'

fashion-oriented impulse buying behaviour with fashion involvement having the greatest

effect. In addition, Grace Yuna Lee and Youjae Yi (2008) have also identified the effect of

pleasure, arousal and perceived risk on impulsive buying behaviour. Regina W. Y. Wang

and Ying-Chun Chen (2011) in their study have suggested that positive emotion dimensions

arouse consumers' impulse buying desire significantly as compared with negative emotion

dimensions.

Positive emotions such as pleasure and excitement may stimulate people rewarding

themselves (Beatty and Ferrel, 1998) and have them fulfil their need for instant gratification

by buying the product (Youn and Faber, 2000). Negative emotions, like feelings of

depression or sadness, on the other hand, may also stimulate impulse buying since buying the

product helps consumers to feel better (Rook, 1987).

When consumers shop, they experience both utilitarian and hedonic shopping value.

Hedonic shopping value involves entertainment and emotional benefits (Jin, Sternquist and

Koh, 2003; Babin et al., 1994). Studies by (Hausman, 2000); Herabadi et.al, 2009); Yu and

Bastin (2010) also have indicated that hedonism has an impact on impulse buying. Based on

the above studies, hypothesis 3 is proposed as under:

H3: Emotions and hedonic considerations enhance the impulse buying behaviour.

The affective and cognitive factors are the influences in triggering the needs and also

impacting the possibility of impulse buying behaviour. Affect and cognition are rather

different types of psychological responses depicted by the consumers in a shopping situation.

Affective process corresponds to the emotional state involved whereas cognitive process

111

refers to mental structures and processes involved in thinking, understanding and

interpreting. The recognition of this combination of thoughts and emotions, created and

perceived by the consumer, has led to the present day understanding of impulse buying.

There are a few studies like Chatzidakis et. al (2009),Amanda Leigh Coley(2002) which have

examined as to how cognition plays a role in impulse purchases. Thus, hypothesis 4 is

proposed as follows:

H4: Cognitive processes have an impact on impulse buying.

4.3 RESEARCH OBJECTIVES

Keeping in view the hypotheses framed for the study, the following five research objectives

were set forth:

1. To examine and analyze the role of in-store stimuli on impulse buying.

2. To conduct an impact analysis of situational and personal factors on impulse buying

behaviour.

3. To understand emotions and hedonic considerations vis-à-vis their role in impulse

buying.

4. To study the effect of cognitive processes in impulse buying.

5. To empirically validate the proposed model and suggest strategic interventions for an

effective usage of impulsive behaviour of customers.

4.4 QUESTIONNAIRE DESIGN AND DEVELOPMENT

Since the study is consumer centric, the primary data has been collected using the field

survey method. For the purpose, a structured questionnaire was developed, pretested and

personally administered to the target population of the people who had made purchases at the

shopping mall. The questionnaire was developed using a seven point scale, which has

enabled respondents to make clear and quick judgments and at the same time achieve

accurate measurements.

112

There were 73 items in the questionnaire containing the following items:

Impulse buying (5 items)

Stimuli which include attractive display, sales promotion and attractive packaging (22items)

Situational Factors include Time availability, Money Availability and Shopping Companion

(10 items)

Personal factors including Age, Gender, Income and Impulse Buying Tendency (12 items)

Emotions and Hedonic Considerations (17 items) and

Cognition (7 items)

4.4.1 Impulse Buying

1. As I was shopping, I bought things I did not intend to purchase.

2. I made unplanned purchases while shopping.

3. When I saw something that really interested me I bought it without considering the

consequences.

4. It was fun to buy spontaneously.

5. I avoided buying things that were not on my shopping list.

4.4.2 Stimuli

4.4.2.1 Attractive Display

1. I tend to enter a store when I am attracted by an eye catching display.

2. I feel compelled to enter the store when I see an interesting window display.

3. I tend to choose which store to shop in depending on attractive window display.

4. I tend to rely on store displays when I make a decision to purchase.

113

5. Specially arranged and particularly attractive display attracts my attention and induces

unplanned purchasing.

6. Larger quantity of same merchandise displayed in one place attracts my attention and

induces me to purchase.

7. Proper shelf arrangement (eg. Products within hand reach) affects my unplanned

purchasing.

8. Symmetrical arrangement of products attracts my attention..

9. A colourful display sets my mood and feelings and affects my purchasing.

4.4.2.2 Sales Promotion

1. Buying products with promotional offers (reduced prices, free gifts) deals makes me feel

good.

2. I am more likely to buy a product if it has a promotional offer (reduced price, free gifts) on

the label.

3. I enjoy buying products with promotional offer (reduced price, free gifts).

4. I have a positive attitude towards promotional offer (reduced prices, free gifts).

4.4.2.3. Attractive Packaging

1. The visual design of the product packaging attracts my attention.

2. Colourful product packaging induces me to buy.

3. The size of the packed product attracts my attention.

4. The variety of packaged product induces me to buy.

5. The material of the packaged product attracts my attention.

6. Detailed product information on the package induces me to buy.

7. Producer mentioned on the package induces me to buy.

114

8. Country of origin induces me to purchase a particular product

9. Brand mentioned on the package attracts my attention and induces me to buy.

4.4.3 Situational Factors

4.4.3.1 Time Availability

1. I shopped in my spare time.

2. I hurried to complete my shopping on time.

3. I usually had as much time as I needed to complete my shopping quickly.

4. I felt pressured to complete my shopping quickly.

3.4.3.2 Money Availability

1. I afforded to make any unplanned purchases.

2. I was on a tight budget for shopping.

3. I had enough extra money so that I could spend a little lavishly if I found something I

really liked.

4.4.3.3 Shopping Companion

1. I bought more as I was accompanied by family members.

2. I bought more as I was accompanied by friends.

3. I bought more as I was accompanied by colleagues.

3.4.4.4 Personal Factors

4.4.4.1 Impulse Buying Tendency

1. I often buy things spontaneously.

2. “Just do it” describes the way I buy things.

115

3. I often buy things without thinking.

4. I often buy things without thinking.

5. Buy now, think about it later describes me.

6. Sometimes I feel like buying things promptly.

7. I buy things according to how I feel at that moment.

8. I carefully plan most of my purchases.

9. Sometimes I am a bit careless about what I buy.

4.4.4.2 Demographics

1. Gender a) Male b) Female

2. Age a)Less than 20 b) 21-30 c) 31-40 d) 41-50 e) Above 50

3. Annual Income a) upto 5 lac b) 5-10 lac c) Above 10 lac

4.4.5.1 Emotions and Hedonic Considerations

4.4.5.1.1 Emotions

1. While shopping at the mall I was excited.

2. While shopping at the mall I was enthusiastic.

3. While shopping at the mall I was distressed.

5. While shopping at the mall I was upset.

6. While shopping at the mall I was irritated.

4.4.5.1.2 Hedonism

1. This shopping trip was truly a joy.

2. I continued to shop not because I had to, but because I wanted to.

3. I felt out of this world on my shopping trip.

4. The time spent shopping was truly enjoyable.

116

5. I enjoyed being occupied with exciting new products.

6. I enjoyed this shopping trip for its own sake, not just for the items I may have purchased.

7. I had a good time because I was able to act promptly.

8. During the trip, I felt the excited.

9. While shopping, I was able to forget my problems.

10. While shopping, I felt a sense of adventure.

11. My shopping trip was not a very nice time out. Rs

4.4.5.2 Cognition

1. I make a list when I go shopping and buy only what is on the list.

2. I rarely buy impulsively.

3. When I think about my buying behaviour, I consider myself to be an impulse buyer.

4. People who know me consider me to be an impulse buyer.

5. When I go shopping, I buy things that I had not intended to purchase

6. If I see something that I think I need, I buy it even though I went shopping for other

purposes.

7. I tend to spend money as soon as I earn it.

4.5 PRETESTING AND FINAL INSTRUMENT

The pretesting of the final questionnaire was done by collecting responses from 150

respondents in shopping malls of Delhi, Noida and Gurgaon out of which only 116 responses

were found useful. The purpose of conducting the pilot study was to establish the relevance

of the instruments and the degree of accuracy to give the desired results. The respondents for

117

the pilot study consisted of customers who had made an impulse purchase in the following

categories: Apparels, Personal care products, accessories, books, magazines and CD‟s at the

shopping malls in the areas of Delhi, Noida and Gurgaon. Based on their responses,

reliability tests were done to check the reliability and usability of the instrument. For this

purpose Cronbach‟s alpha coefficient for each item has been calculated using Statistical

Package for Social Sciences (SPSS) version 19.0. The results of the data analysis suggested

that all the variables have coefficient value over the Nunnally‟s (1978) recommended internal

consistency threshold of 0.70, thereby concluding that the scale scores were relatively

reliable for respondents in this study. Also, for measuring the dimensionality of the items of

impulse buying, data reduction technique of principal component analysis has been used.

This multivariate technique used through SPSS is most appropriate for the present study as it

involves the examination of interrelationship among the variables so as to reduce large

number of dimensions into few manageable and meaningful sets (Stewart, 1981).The test of

appropriateness of a factor analysis is a KMO measure of sampling adequacy where high

values (>0.6) indicate its relevance for further analysis.

The results of the pilot survey have suggested that the questionnaire was too lengthy and the

respondents were hesitant to fill it up. The bipolar scale used for the measurement of

emotions was not understandable by most of the respondents. Previous researches on impulse

buying Sherman, Mathur and Smith,1997; Donovan and Rossiter,1982; Yingjiao Xu,2007;

Grace Yuna Lee and Youjae Yi ,2008; A. Graa, M. Dani-elKebir ,2011) with emotions as a

factor and as a mediator have used PAD( Pleasure- Arousal-Dominance) scale. However,

some researchers have argued that several limitations impede the bipolar framework‟s

application to consumption-related emotion studies in retailing. For example, Yalch and

Spangenberg (2000) have posited that dominance does not relate to behaviour. Most

importantly, the results have suggested that bipolar conceptualization is deficient in

interpreting consumer emotions and might result in the occurrence of neither pleasant nor

unpleasant states (Babin, Darden, & Babin, 1998). Thus, several studies (e.g., Jang &

Namkung, 2009; Lee, Lee, Lee, & Babin, 2008; Yalch & Spangenberg, 2000) have suggested

two independent unipolar dimensions, that is, positive and negative affect, instead of a

pleasure and arousal scheme is more relevant in examining their relationship with

behavioural outcomes. Therefore, another survey of related literature was done and the

118

emotions scale was redrafted so as to develop an effective and more reliable measuring

instrument. Thus, the data was subjected to techniques like reliability analysis, exploratory

factor analysis for the purpose of scale purification.

The final instrument was framed using a seven point scale consisting of 60 statements

covering the following dimensions vis-à-vis: Impulse Buying, Stimuli, Situational Factors,

Personal Factors, Emotions, Hedonic Considerations and Cognition. All the dimensions were

measured on a scale of 1 to 7 where 1 represents Strongly Disagree and 7 represents Strongly

Agree.

The various measurement items are presented in the following section:

4.5.1 Impulse Buying

1. As I was shopping, I bought things I did not intend to purchase.

2. I made unplanned purchases while shopping.

3. When I saw something that really interested me I bought it without considering the

consequences.

4. It was fun to buy spontaneously.

4.5.2 Stimuli

4.5.2.1 Attractive display

1. I tend to enter a store when I am attracted by an eye catching display.

2. I tend to choose which store to shop in depending on attractive window display.

3. I tend to rely on store displays when I make a decision to purchase.

4. Specially arranged and particularly attractive display attracts my attention and induces

unplanned purchasing.

119

5. Proper shelf arrangement (eg. Products within hand reach) affects my unplanned

purchasing.

6. Symmetrical arrangement of products attracts my attention.

7. A colourful display sets my mood and feelings and affects my purchasing.

4.5.2.2 Sales Promotion

1. Buying products with promotional offers (reduced prices, free gifts) deals makes me feel

good.

2. I am more likely to buy a product if it has a promotional offer (reduced price, free gifts) on

the label.

3. I enjoy buying products with promotional offer (reduced price, free gifts).

4. I have a positive attitude towards promotional offer (reduced prices, free gifts).

4.5.2.3 Attractive Packaging

1. The visual design of the product packaging attracts my attention.

2. Colourful product packaging induces me to buy.

3. The size of the packed product attracts my attention.

4. Brand mentioned on the package attracts my attention and induces me to buy.

4.5.3 Situational Factors

4.5.3.1 Time Availability

1. I shopped in my spare time.

2. I hurried to complete my shopping on time.

3. I usually had as much time as I needed to complete my shopping quickly.

120

4. I felt pressured to complete my shopping quickly.

4.5.3.2 Money Availability

1. I afforded to make any unplanned purchases.

2. I was on a tight budget for shopping.

3. I had enough extra money so that I could spend a little lavishly if I found something I

really liked.

4.5.3.3 Shopping Companion

1. I bought more as I was accompanied by family members.

2. I bought more as I was accompanied by friends.

3. I bought more as I was accompanied by colleagues.

4.5.4 Personal Factors

4.5.4.1 Impulse Buying Tendency

1. I often buy things spontaneously.

2. “Just do it” describes the way I buy things.

3. I often buy things without thinking.

4. I see it, I buy it describes me.

5. Buy now, think about it later describes me.

6. Sometimes I feel like buying things promptly.

7. I buy tings according to how I feel at that moment.

8. Sometimes I am a bit careless about what I buy.

4.5.4.2 Demographics

1. Gender a) Male b) Female

2. Age a)Less than 20 b) 21-30 c) 31-40 d) 41-50 e) Above 50

121

3. Annual Income a) upto 5 lac b) 5-10 lac c) Above 10 lac

4.5.5 Emotions and Hedonic Considerations

4.5.5.1 Emotions

1. While shopping at the mall I was excited.

2. While shopping at the mall I was enthusiastic.

3. While shopping at the mall I was distressed.

4. While shopping at the mall I was upset.

5. While shopping at the mall I was irritated.

4.5.5.2 Hedonic Considerations

1. I continued to shop not because I had to, but because I wanted to.

2. I felt out of this world on my shopping trip.

3. The time spent shopping was truly enjoyable.

4. I enjoyed this shopping trip for its own sake, not just for the items I may have purchased.

5. I had a good time because I was able to act promptly.

6. During the trip, I felt the excited.

7. While shopping, I was able to forget my problems.

8. While shopping, I felt a sense of adventure.

4.5.6 Cognition

1. I make a list when I go shopping and buy only what is on the list.

2. I rarely buy impulsively.

3. When I think about my buying behaviour, I consider myself to be an impulse buyer.

122

4. People who know me consider me to be an impulse buyer.

5. When I go shopping, I buy things that I had not intended to purchase

6. If I see something that I think I need, I buy it even though I went shopping for other

purposes

7. I tend to spend money as soon as I earn it.

4.6 SAMPLING

In order to determine the sample size a number of techniques were applied. As the total

number of the population sample (mall shoppers) was generally unknown, a convenient

sampling method was deemed appropriate. In this research data had to be collected from the

respondents at the point of sales in the shopping malls of Delhi, Noida and Gurgaon and that

too in the specific product categories of Accessories, Apparels, Personal care products and

Books, Magazines, CD‟s. Therefore, the population in this case was indefinite and could not

be determined by calculating the footfall from the malls. So, it was difficult to identify the

population.

The sample size was calculated by using the sampling by proportions method with a 95

percent confidence interval and a margin error of 3 percent. To confirm that the sample size

of 1065 was adequate, calculations for sample size determination by proportions were made

as follows. The data was collected from the respondents who had made an impulse purchase

at the shopping malls in the categories of apparels, accessories, personal care and Books,

Magazines, Cd‟s. By using a filter question in the pretesting data, it was determined that 53%

of the mall shoppers made an impulse purchase. Also, it has been found in a study by Nichols

et.al (2001) that 50 % of mall shoppers buy on impulse. Therefore, the value of π was

considered to be 0.53. The precision of D in this study is 0.03 for 95% percent confidence

level.

The sample size has been arrived at by using formula (Malhotra and Dash, 2009):

π (1-π)z

2 0.53(1-0.53)(1.96)

2

n = D2 = (0.03)

2 = 1063.269= 1065(app.)

123

Where π = population proportion estimated from secondary sources or pilot survey.

Z= value associated with the level of confidence (95%).

D= desired level of precision.

Further, the percentage of malls in Delhi, Noida and Gurgaon is 36%, 15% and 29%

respectively (Knight Frank Research).

Therefore, data collected from Delhi = 45/100*1065= 479

Data collected from Noida = 18.75/100*1065=200

Data collected from Gurgaon=36.25/100*1065=386

As per the above mentioned formula the data was collected from 1065 respondents out of

which data from 700 respondents was found to be useful. Out of 479 respondents, 315 were

found useful, out of 200 respondents from Noida, 118 were found useful and out of 386

respondents, 267 were found to be useful. This means that the response rate was 65.72

percent.

As a part of literature review, it has been found that majority of researchers (Muhammad Ali

Tirmizi et al. 2009; Grace Yuna Lee & Youjae Yi 2008; Fleur J.M. Laros & Jan- Benedict

E.M . Steenkamp 2005; Amanda Leigh Coley 2002) have used a sample size of 100 to 500

respondents to carry out their research.

4.7 DATA TABULATION, STATISTICAL TOOLS AND TECHNIQUES USED FOR

PROCESSING

The various statistical tools that were used for conducting the study are:

4.7.1 Measure of Central Tendency (Mean)

This measure is mainly used for summarizing the essential features of a series and enabling

the data to be compared. It is amenable to algebraic treatment and is used in further statistical

calculations.

124

In this study, measure of central tendency (Mean) was used in order to identify the point

about which items have a tendency to cluster.

4.7.2 Measure of Dispersion (Standard Deviation)

An average can represent a series only to some extent and cannot reveal the entire story of

the phenomena under study. It fails to give an idea about the scatter of the value of the items

of a variable in the series around the true value of an average. In order to measure this scatter,

statistical dispersion is calculated.

4.7.3 Correlation Analysis:

Correlation is a statistical device, which helps in analyzing the closeness of a relationship

between the variables. It, therefore, is directed towards measuring the degree of association

of two variables. That is why it has been used to examine the relationship between impulse

buying, time availability, money availability, shopping companion, impulse buying tendency,

attractive display, packaging, sales promotion, age, gender, income.

4.7.4 Regression Analysis

Regression Analysis is a statistical tool with the help of which the estimates of the dependent

variable are derived from the values of one or more independent variables. It is used for

finding the „line of best fit‟ for one dependent variable based on one or more independent

variables. The formula for regression analysis is

Y=a+bx

Where,

Y=dependent variable

X=independent variable

In the present study, regression has been used as a tool for studying the relationships among

the variables involved in the research process and hence the dependent and independent

variables have been assigned according to the relationship to be analyzed.

4.7.5 Percentage Analysis

This technique has been applied to examine the percentage of the product category purchased

and the demographic profile of the respondents.

125

4.7.6 Reliability Analysis of Measurement Scales

The reliability analysis of various measurement scales was done using Cronbach‟s Alpha

method. The Alpha values of all the scales were above 0.7. All those variables that were over

the Nunnally‟s (1978) recommended minimal internal consistency threshold of 0.70 have

been considered reliable for use.

4.7.7 Factor Analysis

Factor analysis is a statistical method used to find a small set of unobserved variables (also

called latent variables, or factors) which can account for the covariance among a larger set of

observed variables (also called manifest variables).This multivariate technique used through

SPSS (19 version) is the most appropriate for the present study, as it involves the

examination of inter relationship among variables so as to reduce large number of

dimensions into few manageable and meaningful sets (Stewart,1981).The study has used R

mode principal component analysis with a varimax rotation (Kakati and Dhar,2002) as the

number of subjects was greater than the number of variables. Varimax rotation is the best

orthogonal rotation procedure (Stewart, 1981) as it minimizes the number of variables with

high loadings on one factor, thereby enhancing the interpretability of the factor (Malhotra,

2002, p.595).For the purpose of describing the underlying factor structure, „the eigen value

one criterion‟ has been used to determine the number of components to be extracted for

further analysis (Stewart 1981, Sharma, Kaur and Gupta 2001). The test of appropriateness of

a factor analysis is KMO measure of sampling adequacy where high values (>0.6) indicate its

relevance for further analysis.

4.7.8 Analysis of Variance (ANOVA)

ANOVA or Analysis of Variance is used to compare the means of more than two

populations. It uncovers the main and interaction effects of classification of independent

variables on one or more independent variables. In the present study, the data was subjected

to ANOVA test in order to analyze the variation in impulse buying tendency with respect to

the age and income groups.

126

4.7.9 Independent t Test

The independent t test is used to compare the mean of one sample with the mean of another

sample in order to see if there is statistically significant difference between the two. In the

present study, the data was subjected to Independent t test in order to analyze whether the

sample of males and females differ with respect to impulse buying tendency.

4.7.10 Baron and Kenny Linear Equation Method

In addition to statistical analysis mentioned above, the study has also attempted to find out

the mediation effect of emotions and hedonism on the In store stimuli and its three

dimensions namely attractive display, sales promotion and attractive packaging. For this

purpose Baron and Kenny‟s Linear equation method (1986) has been followed. According to

the author‟s guidelines, in order to verify the existence of mediation effect, the following

conditions have been assured:

(1) The predictor variable should be affected by the mediator in the first regression

equation.

(2) The predictor variable should be affected by the dependent variable in the second

equation.

(3) The mediator variable should affect dependent variable in the third regression

equation.

(4) The strength of link between predictor and outcome is significantly reduced when

mediator is added to the model.

4.7.11 Sobel Test

In addition to these results, the mediation effect was further tested using Sobel

Test(Sobel,1982). The purpose of this test was to verify whether a mediator carries the

influence of an independent variable to dependent variable. The Sobel Test measures Z

value.

Where, Z- value = a*b/SQRT (b2*sa2 + a2*sb2).

127

This formula requires the unstandardized regression coefficient (a) and the standard error (sa)

of the relationship between the independent variable a, and the unstandardized regression

coefficient (b) and standard error (sb) of the path from the mediator to the dependent variable

Thus, the present research has been undertaken by using advanced statistical techniques like

Factor Analysis, Correlation Analysis, Regression Analysis, ANOVA, Independent t test,

Baron and Kenny Linear Equation Method and Sobel Test to obtain comprehensive results

from the primary data. A detailed data analysis has been presented in Chapter V, outlining

the key findings of the study.

128

References:

Abratt, R. and Goodey, D. S. (1990), “Unplanned Buying and In-store Stimuli in

Supermarkets”, Managerial and Decision Economics, 11(2), pp.111-122.

Anić, I., Radas, S. (2006a), “The impact of situational factors on purchasing outcomes in the

Croatian hypermarket retailer”, Ekonomski pregled, 57(11), pp.730-752.

Babin, B. J., Darden, W. R., and Babin, L. A. (1998), “Negative emotions in marketing

research: Affect or artifact?”, Journal of Business Research, Vol.42, pp.271-285.

Babin, B. J., Darden, W. R., and Griffin, M. (1994), “Work and/or fun: Measuring hedonic

and utilitarian shopping value”, Journal of Consumer Research, 20(4), pp.644–656.

Baron, R. M. and Kenny, D. A. (1986), “The Moderator-Mediator Variable Distinction in

Social Psychological Research – Conceptual, Strategic, and Statistical

Considerations”, Journal of Personality and Social Psychology, 51(6), pp. 1173–1182.

Beatty, S.E. and Ferrell, M.E. (1998), “Impulse Buying: Modelling its Precursors”, Journal

of Retailing, 74(2), pp.169-191.

Bellenger, D., Robertson D. H., and Hirschman E. C. (1978), “Impulse Buying Varies by

Product”, Journal of Advertising Research, Vol.18 (December), pp. 15–18.

Chatzidakis, A., Smith, A., Hibbert, S.(2009), “Do I need it, do I, do I really need this?:

Exploring the Role of Rationalization in Impulse Buying Episodes”, Advances in Consumer

Research, Vol.36, pp. 248-253.

Cobb, C. J. and Hoyer W. D. (1986), “Planned Versus Impulse Purchase Behaviour”,

Journal of Retailing, Vol.62 (Winter), pp. 67–81.

Coley,A.L.(2002),“Affective and Cognitive processes involved in Impulse Buying”,

Thesis,Masters of Science, University of Georgia.

129

Dholakia U.M. (2000), “Temptation and Resistance: An Integrated Model of Consumption

Impulse Formation and Enactment”, Psychology and Marketing, 17(11), pp. 955-982.

Donovan, R.J. and Rossiter, J.R. (1982), "Store atmosphere: An environmental psychology

approach”, Journal of Retailing, Vol. 58(Spring), pp. 34-57.

Engel,James F.,David T. Kollat and Roger D. Blackwell(1978),Consumer Behaviour,

Hinsdale,IL: Dryden Press.

Esch,Rudolf,F. ,Redler,J. and Langer,T. (2003), „Effects of product category, brand

strength, and visual presentation formation of the efficiency of display promotion‟, in

ANZMAC Conference proceedings, adelaide (december), pp. 1831–1837.

Foroughi , A. , Buang A. and Sherilou M., (2011), “Exploring impulse buying behaviour

among Iranian tourists in Malaysia (Case Study),” 2nd international conference on business

and economic research (2nd ICBER 2011) proceeding.

Ghani U. and Kamal Y. (2010), “The Impact of In-Store Stimuli on the Impulse Purchase

Behaviour of Consumers in Pakistan”, Interdisciplinary Journal of Contemporary Research

in Business , 2(8),pp.155-162.

Graa,A. and Kebir,M.D.(2012), “Application of Stimulus and response model to impulse

buying behaviour of Algerian Consumer”, Serbian Journal of management,7(1),pp.53-64.

Gutierrez, B.P. (2004), “Determinants of Planned and Impulse Buying: The Case of the

Philipinnes”, Asia Pacific Management Review, 9(6), pp.1061-1078.

Hausman, A. (2000), “A multi-method investigation of consumer motivations in impulse

buying behaviour”, Journal of Consumer Marketing, 17(5), pp.403-417.

Helmers, K.F., Young, S.N., and Pihl, R.O. (1995), “Assessment of measures of

impulsivity in healthy male volunteers”, Personality and Individual Differences, 19(6),

pp.927–935.

130

Herabadi, A. G., Verplanken, B.and Knippenberg, A. V. (2009), “Consumption

Experience of Impulse Buying in Indonesia: Emotional Arousal and Hedonistic

Considerations”, Asian Journal of Social Psychology, Vol.12, pp.20-31.

Herrington, J. D., Capella, L. M. (1995), “Shoppers reactions to perceived time pressure”,

International Journal of Retail & Distribution Management, 23(12), pp.13-20.

Hoyer, W .T. and MacInnis, D. (1997), Consumer Behaviour, Houghton Mifflin, Boston

MA.

Inman, J., Winer, R.S., and Ferraro, R. (2009), “The interplay among category

characteristics, customer characteristics, and customer activities on in-store decision

making”, Journal of Marketing, Vol.73, pp.19-29.

Iyer, E. S. (1989), “Unplanned Purchasing: Knowledge of Shopping Environment and Time

Pressure”, Journal of Retailing, 65(1), pp. 40-57.

Iyer, E. S., Park, C. W., Smith, D. C. (1989), “The effects of situational factors on in-store

grocery shop”, Journal of Consumer Research, 15(4),pp. 422-433.

Jalees,T.(2009), “An Empirical Analysis Of Impulsive Buying Behaviour In Pakistan”,

Journal of Consumer Research, 5, pp. 298-308.

Jang, S., and Namkung, Y. (2009), “Perceived quality, emotions, and behavioural

intentions: Application of an extended Mehrabian–Russell model to restaurants”, Journal of

Business Research, Vol.62,pp. 451-460.

Jin, B., Sternquist, B., and Koh, A. (2003), “Price as hedonic shopping”, Family and

consumer Sciences Research Journal, 31(4), pp.378-402.

Kacen, J. J., and Lee, J. A. (2002), “The Influence of Culture on Consumer Impulse Buying

Behaviour”, Journal of Consumer Impulse Buying Behaviour, 12 (2), pp. 163-176.

Kakati, Rinalini Pathak and U.R. Dhar (2002), “Competitive Strategies and New Venture

performance”, Vikalpa, Vol. 27, No. 3 (July-September), pp. 13-24.

131

Kennedy, J. R. (1970), “The Effect of Display Location on the Sales and Pilferage of

Cigarettes”, Journal of Marketing Research, Vol.7 (May), pp.210-215.

Kollat, D. T. and Willet R.P. (1967), “Consumer Impulse Purchasing Behaviour”, Journal

of Marketing Research, Vol. 4( February), pp. 21–31.

Laros, F. M., & Steenkamp, J-B. E. M. (2005), “Emotions in consumer behaviour: a

hierarchical approach”, Journal of Business Research 58, 1437–1445.

Lee, G.Y. and Yi, Y. (2008), “The Effect of Shopping Emotions and Perceived Risk on

impulse buying: The Moderating Role of Buying Impulsiveness Trait”, Seoul Journal of

Business, 14(2), pp.67-92.

Lee, Y. K., Lee, C. K., Lee, S. K., and Babin, B. J. (2008), “Festival scapes and patrons'

emotions, satisfaction, and loyalty”, Journal of Business Research, Vol. 61, pp.56-64.

Liao S.L., Shen Y.C. and Chu C. H. (2009), “The effects of sales promotion strategy,

product appeal and consumer traits on reminder impulse buying behaviour”, International

Journal of Consumer Studies, Vol. 33, pp. 274-284.

Luo, X.M. (2004), “Grouped Dynamics of Impulse Buying: An Extended Social Facilitation

perspective”, Advances in Consumer Research, Vol.31,p. 431.

Mai, N.T.T, Jung, K., Lantz, G. and Loeb, S.G. (2003), “An Exploratory Investigation into

Impulse Buying Behaviour in a Transitional Economy: A Study of Urban Consumers in

Vietnam”, Journal of International Marketing, 11(2), pp.13-35.

Malhotra and Dash (2009), Marketing Research, 5th

edition, Prentice Hall (July 17, 2009)

Melnikas, B.,and Smaliukiene, R. (2007), “Consumer vulnerability in pharmaceutical

market: Case of Baltic countries”, Journal of Business Economics and Management, 8(1),

51-62.

Mogelonsky, M.(1994), “Poor and Unschooled, but a Smart Shopper”, American

Demographics, 16 (7), pp.14-15.

132

Nicholls, J. A .F., Roslow, S., Dublish, S. (1997), “Time and companionship: key factors in

Hispanic shopping behaviour”, Journal of Consumer Marketing, 14(2/3),pp.194 -205.

Nichols, J., Li, F., Roslow, S., Kranendonk, C. and Mandakovic, T. (2001), “Inter-

American perspectives from mall shoppers”, Journal of Global Marketing, Vol. 15 No. 1, pp.

87-103

Nunnally, J.C. (1978), Psychometric theory (2nd

Ed.),New York: McGraw-Hill.

O’Neill, Regina M. and David R. Lambert (2001), “The Emotional Side of Price”,

Psychology & Marketing, 18 (3), pp. 217-237.

Park, E. J., Kim, E. Y. and Forney, J. C. (2006),”A Structural model of Fashion-oriented

Impulse Buying Behaviour”, Journal of Fashion Marketing and Management, 10(4), pp.

433-446. Retrieved, May 16, 2007, from http://www.emeraldinsight.com/1361-2026.htm

Park. C.W., Iyer, E.S. and Smith, D.C. (1989), “The effects of situational factors on in-

store grocery shopping behaviour: The role of store environment and time available for

shopping”, Journal of Consumer Research, 15 (March), pp.422-433.

Piron, F. (1993), “A Comparison of Emotional Reactions Experienced by Planned,

Unplanned and Impulse Purchasers”, Advances in Consumer Research, Vol. 20, 341-344.

Rawlings, D., Boldero, J., and Wiseman, F. (1995), “The interaction of age with

impulsiveness and venturesomeness in the prediction of adolescent sexual behaviour”,

Personality and Individual differences, Vol.19,pp. 117–120.

Rook, D. W. (1987), “The buying Impulse”, Journal of Consumer Research, 14 (2), pp.189-

199.

Rook, D. W. and Fisher, R. J. (1995), “Normative Influences on Impulsive Buying

Behaviour”, The Journal of Consumer Research, 22(3), pp.305-313.

133

Sharma, p., Sivakumaran, B. and Marshall, R. (2009), “Exploring impulse buying in

services vs. products – towards a common conceptual framework”, Advances in Consumer

Research – Asia-Pacific Conference Proceedings, 8, pp.195–196.

Sharma, A., Kour, R. and Gupta, B. (2001), “The effects of price, brand name and store

name on buyers‟ perception of product quality: an integrative review”, Journal of Marketing

Research,26(3),pp.351-357.

Sherman, E., Mathur, A. and Smith, R.B. (1997), “Store Environment and Consumer

Purchase Behaviour: Mediating Role of Consumer Emotions”, Psychology and Marketing,

14 (4),pp. 361-378.

Sobel, M. E. (1982), “Asymptotic confidence intervals for indirect effects in structural

equation models”. Sociological Methodology, 13, pp.290–312.

Stern, H. (1962), “The Significance of Impulse Buying Today”, Journal of Marketing, 26(2),

pp.59-62.

Stewart, D.W. (1981), “The application and misapplication of factor analysis in marketing

research”, Journal of Marketing Research, Vol.18, pp.51–62.

Tendai M. and Crispen C. (2009), “In- store shopping environment and Impulsive buying”,

African Journal of Marketing Management, 1(4), pp.102-108.

Tirmizi, M.A. and Iqbal, K.R.M. S (2009), “An Empirical Study of Consumer Impulse

Buying Behaviour In Local Markets”, European Journal of Scientific Research, 28(4),

pp.522-532.

Underhill, Paco. (1999), Why we buy: the science of shopping, New York: Simon &

Schuster.

Virvilaite R., Saladiene V., and Bagdonaite R. (2009), “Peculiarities of Impulsive

Purchasing in the Market of Consumer Goods”, Inzinerine Ekonomika-Engineering

Economics (2),pp. 1392-2785.

134

Wang, R.W.Y. and Chen, Y.C.(2011),“Service dimensions for consumer emotions”,

Journal of the Chinese institute of industrial engineers ,28(2) ,pp.134-145.

Weinberg, P. and Gottwald, W. (1982), “Impulsive consumer buying as a result of

emotion”, Journal of Business research, 10(1), pp. 43-57.

Wilkinson, J.B., Mason, C. and Paksoy, C. (1982), “Assessing the impact of short-term

supermarket strategy variables”, Journal of Marketing Research, Vol.19 (February), pp. 72-

86.

Wood, M. (1998), “Socio-Economic Status, Delay of Gratification, and Impulse Buying”,

Journal of Economic Psychology, Vol.19, pp.295–320.

Wu W. C. and Huan T. C. (2010),“The effect of purchasing situation and conformity

behaviour on young students‟ impulse buying”, African Journal of Business Management

4(16), pp.3530-3540.

Xu, Y. (2007),“Impact of Store Environment on Adult Generation Y Consumers‟ Impulse

Buying”, Journal of Shopping Center Research, 14(1), pp.39-56.

Yalch and Spangenberg (2000), “The Effects of Music in a Retail Setting on Real and

Perceived Shopping Times”, Journal of Business Research, Vol.49, pp139-14.

Youn, S. and Faber, R. J. (2000),”Impulse buying: its relation to personality traits and

cues”, Advances in Consumer Research, Vol.27, pp. 179-185.

Yu, C. and Bastin, M. (2010), “Hedonic shopping value and impulse buying behaviour in

transitional economies: A symbiosis in the Mainland China marketplace”, Journal of Brand

Management, 18, pp.105–114.

135

CHAPTER 5

DATA ANALYSIS AND FINDINGS

This chapter presents a detailed statistical analysis of the data to achieve the objectives and

hypotheses framed for the study. In the beginning, profile of the sample has been discussed

giving an overview about the key characteristics of respondents of the study, followed by the

product category purchased on impulse by the respondents at the shopping malls. The chapter

also entails determination of the reliability and construct validity for the scales used in the

study. In addition, the content, discriminant and convergent validities of the constructs have

also been addressed.

5.1 DEMOGRAPHIC PROFILE OF RESPONDENTS:

The demographic profile of the respondents has been presented in tables 5.1to 5.3

mentioning the gender, age and income group of the respondents. Analysis of the table 5.1

reveals that out of 700 respondents, 49.14% respondents are males where as 50.9% are

females. Thus, there is an equitable representation of gender.

Fig.5.1: Gender

Male49%Female

51%

Male

Female

136

Table 5.1: Gender Wise Representation

S.No Gender Number of Respondents %age

1 Male 344 49.14

2 Female 356 50.90

Total 700 100.00

Table 5.2 below represents the age wise presentation of respondents. Majority of the

respondents are in the age group of 21-30 representing 35.9%, followed by 31-40(24.4%),

41-50(19.9%), less than 20(14%) and lastly above 50(5.9%).

Figure 5.2: Age Wise Details of Respondents

Table 5.2: Age Wise Distribution

S.No Age Group Number of Respondents %age

1. Less than 20 98 14

2. 21-30 251 35.9

3. 31-40 171 24.4

4. 41-50 139 19.9

5. Above 50 41 5.9

Total 700 100.00

As far as annual household income of respondents is concerned, it is clear from the table 5.3

that maximum number of respondents (36%) have an annual household income upto 5 lac

followed by 5-10 lacs (35.7%) and last group of above 10 lac income contributes

approximately (28.3%) respectively.

Fig.5.3: Annual Household Income

14%

35.9%

24.4%

19.9%

5.9%

0

50

100

150

200

250

300

Less than 20 21-30 31-40 41-50 Above 50

137

Table 5.3: Annual Household Income Wise Representation of Respondents

S.No Income Group Number of Respondents %age

1. Upto 5 lac 252 36.0

2. 5-10 lac 250 35.7

3. Above 10 lac 198 28.3

Total 700 100.00

5.2 PRODUCT CATEGORY PURCHASED

Among the various product categories chosen for the study, it has been found that maximum

impulse purchase in the shopping malls is in the product category of apparels. This is

followed by personal care products, accessories, Books, Magazines and CD‟s, which has

been presented in the table 5.4 below.

Fig.5.4: Product category Purchased

36% 35.70%28.30%

0%

10%

20%

30%

40%

upto 5 lac 5-10 lac Above 10 lac

50.85%

25.71%

15.71%

7.70%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

138

Table5.4: Product categories purchased on Impulse

S.No Product Purchased Number of Respondents Percentage

1. Apparels 356 50.85%

2. Personal Care 180 25.71%

3. Accessories 110 15.71%

4. Books, Magazines, CD‟s 54 7.7%

Total 700 100

5.3 DATA PURIFICATION RESULTS

Prior to the main stage of data analysis, the collected data was purified by subjecting it to

various statistical tests. In data purification stage, the reliability of the scale has been

measured by calculating Cronbach‟s alpha coefficient for each scale. The validity of the scale

has been confirmed by measuring content and construct validity also. Finally, the dimensions

of in store stimuli and situational factors have also been identified by using data reduction

technique of exploratory factor analysis. These tests have been discussed in detail below:

5.31 Reliability Analysis:

Reliability of the scale refers to the reproducibility of instruments. It is the extent to which a

scale produces consistent results if repeated measurements are made. Approaches for

assessing reliability include the test-retest reliability, alternate forms, and internal consistency

methods.

In test-retest reliability respondents are administered identical sets of scale item at two

different times in nearly equivalent conditions as much as possible; and in alternate form,

two equivalent forms of the scale are constructed and the same respondents are measured at

two different times, usually two to four weeks apart. The accuracy of both these methods

rests on the assumption that the participants are fundamentally the same (i.e., they possess

the same true score of the scale) during the two test periods. One common problem in these

two approaches is that completing the scale the first time can change the way respondents

complete the scale second time (DeCoster 2005).

In the present study the internal consistency reliability has been used to calculate the

reliability of the scale. The most popular of these reliability estimates is Cronbach Alpha.

Calculating Cronbach Alpha coefficient is the most commonly used procedure to estimate

139

reliability. It is highly accurate and has the advantage of only requiring a single application of

the scale (De Coster, 2005). Therefore, in the present study Cronbach‟s Alpha coefficient for

each item has been calculated by using SPSS (Statistical Package for Social Sciences).

Cronbach‟s Alpha is calculated by using the equation given below:

α = Nγ

1+γ (N-1)

Where α is the Cronbach‟s Alpha, N is the number of items in the scale, and γ is the mean

integer item correlation. The Cronbach‟s Alpha coefficient varies from 0 to 1 and a value of

0.6 or less indicates unsatisfactory internal consistency (Malhotra and Dash, 2009). The

results suggest that all of the variables were found to have coefficient value over the

Nunnally‟s (1978) recommended internal consistency threshold of 0.70 as indicated in the

tables 5.9 to 5.19. The results of the descriptive statistics tables indicate that the scale scores

are relatively reliable for respondents in the study.

5.32 Assessing Validity

The main objective of assessing validity is to confirm that the rating scale truly reflects the

underlying variable which is to be measured. The validity of the scale can be assessed in

several different ways, including examination of a scale‟s content or face validity. Face or

content validity represents the extent to which the contents of the measurement scales seem

to tap all relevant facets of an issue, which have an influence on respondent‟s attitude.

Another measure of validity is construct validity. Construct validity assesses the nature of the

underlying variables measured by the scale. It can be assessed quantitatively by computing

its correlation with measures of the other constructs. Finally the criterion validity examines

whether the measurement scales performs as expected in relation to other variables selected

as meaningful criteria. Therefore, in the present study the face and content validity of the

data has also been confirmed through internal checkups and extensive discussion with the

experts. The higher Kaiser Meyer-Olkin values of multidimensional scales such as In store

stimuli (KMO=0.838 and variance explained 47.165%), Situational factors (KMO= 0.717

and variance explained 66.296%) gave required adequacy of the data, thereby proving the

construct validity as presented in tables 5.7(a, b) and 5.8(a,b) respectively. Further,

discriminant validity of the data has been proven by the correlation matrix among the

140

constructs given in table 5.5. The results of the table have revealed that there is very low

correlation among the factors (R<0.5) thereby ensuring factorial validity.

Table 5.5: Discriminant Validity among constructs (Correlations)

Correlations

IS SF EH PF Cog

IS Pearson Correlation 1 .387** .484

** .435

** .467

**

Sig. (2-tailed) .000 .000 .000 .000

N 700 700 700 700 700

SF Pearson Correlation .387** 1 .237

** .316

** .229

**

Sig. (2-tailed) .000 .000 .000 .000

N 700 700 700 700 700

EH Pearson Correlation .484** .237

** 1 .312

** .411

**

Sig. (2-tailed) .000 .000 .000 .000

N 700 700 700 700 700

PF Pearson Correlation .435** .316

** .312

** 1 .413

**

Sig. (2-tailed) .000 .000 .000 .000

N 700 700 700 700 700

Cog Pearson Correlation .467** .229

** .411

** .413

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 700 700 700 700 700

Convergent validity results have proved that majority of the variable under the extracted

factors exhibit appropriate consistency(R>0.5)(Tables 5.4a to 5.4f)

Table 5.4a: Convergent Validity in case of factor (Time Availability)

T1 T2 T3 T4

T1 1

T2 .527** 1

T3 .627** .634** 1

T4 .293** .454** .563** 1

Correlation is significant at 0.01 level (2-tailed)

141

Table 5.6b: Convergent validity in case of factor (Money Availability)

M1 M2 M3

M1 1

M2 .598** 1

M3 .581** .638** 1

Correlation is significant at 0.01 level (2-tailed)

Table 5.6c: Convergent validity in case of factor (Shopping Companion)

SC1 SC2 SC3

SC1 1

SC2 .824** 1

SC3 .695** .724** 1

Correlation is significant at 0.01 level (2-tailed)

Table 5.6d: Convergent validity for factor Attractive Display

Dsp1 Dsp2 Dsp3 Dsp4 Dsp5 Dsp6

Dsp1 1

Dsp2 0.532** 1

Dsp3 0.502** 0.543** 1

Dsp4 0.612** 0.567** 0.682** 1

Dsp5 0.512** 0.602** 0.542** 0.859** 1

Dsp6 0.707** 0.621** 0.632** 0.763** 0.675** 1

Correlation is significant at 0.01 level (2-tailed)

142

Table 5.6e: Convergent validity for factor Sales Promotion

SP1 SP2 SP3 SP4

SP1 1

SP2 0.453** 1

SP3 0.510** 0.398** 1

SP4 0.580** 0.502** 0.562** 1

Correlation is significant at 0.01 level (2-tailed)

Table 5.6f: Convergent validity for factor Attractive Packaging

Pkg1 Pkg2 Pkg3 Pkg4

Pkg1 1

Pkg2 0.456** 1

Pkg3 0.544** 0.608** 1

Pkg4 0.551** 0.581** 0.522** 1

Correlation is significant at 0.01 level (2-tailed)

5.33 FACTOR ANALYSIS:

The multivariate data reduction technique of factor analysis has been used in the study. It

involved examination of inter-relationship among variables and reduction of variables into

few manageable and meaningful sets. Factor analysis was carried to simplify and reduce the

data by using Principal Component Analysis along with orthogonal rotation procedure of

varimax for summarizing the original information with minimum factors and optimal

coverage. The statements with factor loading less than 0.5 and Eigen value less than 1.0 were

ignored for the subsequent analysis.

The test of appropriateness of a factor analysis is KMO measure of sampling adequacy where

high values (>0.6) (Table 5.7a) indicate its relevance for further analysis.

143

Table 5.7a:KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .838

Bartlett's Test of

Sphericity

Approx. Chi-Square 2170.590

Df 105

Sig. .000

The following table 5.7b indicates that the 22 statements of in store Stimuli can be reduced

into three factors and the total cumulative variance explained by the resultant three factors is

47.165 percent.

Table 5.7b:Total Variance Explained

Compo

nent

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumulativ

e % Total

% of

Variance

Cumulativ

e % Total

% of

Variance

Cumulativ

e %

1 4.099 27.326 27.326 4.099 27.326 27.326 2.645 17.631 17.631

2 1.582 10.548 37.874 1.582 10.548 37.874 2.297 15.317 32.947

3 1.394 9.292 47.165 1.394 9.292 47.165 2.133 14.218 47.165

4 .937 6.247 53.412

5 .879 5.859 59.271

6 .814 5.425 64.696

7 .749 4.994 69.690

8 .716 4.772 74.462

9 .701 4.674 79.136

10 .612 4.082 83.217

11 .559 3.727 86.944

12 .552 3.679 90.624

13 .520 3.465 94.089

14 .479 3.192 97.281

15 .408 2.719 100.000

Extraction Method: Principal Component Analysis.

144

The following table 5.7c represents the factor loading of various measurement items of In

store stimuli and the validity of the constructs used for the study by using Cronbach‟s Alpha

method.

Table 5.7c: Factor Loadings and Composite Reliability

Constructs and Items

Loading Composite

Reliability

Attractive

Display

Disp1 I tend to enter a store when I am attracted by an

eye catching display.

0.570

0.716

Disp2 I tend to rely on store displays when I make a

decision to purchase

0.660

Disp3 Specially arranged and particularly attractive

display attracts my attention and induces

unplanned purchasing

0.685

Disp4 Proper shelf arrangement (eg. Products within

hand reach) affects my unplanned purchasing

0.597

Disp5 Symmetrical arrangement of products attracts

my attention.

0.627

Disp6 A colourful display sets my mood and feelings

and affects my purchasing.

0.520

Attractive

Packaging

Pkg1 1. The visual design of the product packaging

attracts my attention.

0.709 0.705

Pkg2 Colourful product packaging induces me to buy. 0.760

Pkg3 The size of the packed product attracts my

attention.

0.608

Pkg4 Brand mentioned on the package attracts my

attention and induces me to buy.

0.679

Sales

Promotion

Sp1 Buying products with promotional offers

(reduced prices, free gifts) deals makes me feel

good.

0.703 0.745

Sp2 I am more likely to buy a product if it has a

promotional offer (reduced price, free gifts) on the

label.

0.638

Sp3 I enjoy buying products with promotional offer

(reduced price, free gifts).

0.749

Sp4 I have a positive attitude towards promotional

offer (reduced prices, free gifts).

0.601

The data was subjected to reliability analysis using Cronbach‟s alpha method. Since the alpha

values of all the variables were above 0.7, the measurement scale therefore was deemed to be

145

reliable for use. Similarly, the data related to situational factors was also subjected to factor

analysis for dimension reduction and to find relevant factors.

Bartlett‟s test of sphericity indicated a Chi- square value of 2555.053 with 45 degrees of

freedom at significance level of 0.000, thereby confirming that the population correlation

matrix is not an identity matrix. Further, KMO value of 0.717(>0.6) confirms the

appropriateness of factor analysis to be used for identification of relevant variables (Table

5.8a)

Table 5.8a: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .717

Bartlett's Test of

Sphericity

Approx. Chi-Square 2555.053

Df 45

Sig. .000

The following table 5.8b indicates that the total cumulative variance explained by the

resultant three factors is 66.296 percent.

Table 5.8 b :Total Variance Explained

Compo

nent

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumulativ

e % Total

% of

Variance

Cumulati

ve % Total

% of

Variance

Cumulati

ve %

1 3.304 33.037 33.037 3.304 33.037 33.037 2.516 25.162 25.162

2 2.016 20.162 53.199 2.016 20.162 53.199 2.069 20.689 45.851

3 1.310 13.097 66.296 1.310 13.097 66.296 2.044 20.445 66.296

4 .778 7.780 74.075

5 .666 6.659 80.734

6 .570 5.702 86.436

7 .462 4.624 91.060

8 .371 3.711 94.772

9 .367 3.670 98.441

10 .156 1.559 100.000

The following table 5.8c represents the factor loading of various measurement items of

situational factors and the validity of the constructs used for the study by using Cronbach‟s

Alpha method.

146

Table 5.8c: Factor Loadings and Composite Reliability

Constructs and Items

Loading Composite

Reliability

Time T1 I shopped in my spare time. 0.735 0.777

T2 I hurried to complete my shopping on time. 0.827

T3 I usually had as much time as I needed to

complete my shopping quickly.

0.832

T4 I felt pressured to complete my shopping

quickly.

0.623

Money M1 I afforded to make any unplanned purchases 0.812 0.739

M2 I was on a tight budget for shopping. 0.754

M3 I had enough extra money so that I could spend

a little lavishly if I found something I really

liked.

0.796

Shopping

Companion

Sc1 I bought more as I was accompanied by family

members.

0.553 0.772

Sc2 I bought more as I was accompanied by friends. 0.908

Sc3 I bought more as I was accompanied by

colleagues

0.950

Varimax rotation results indicate that 10 statements relating to situational factors have been

minimized into three factors namely: Time availability, Money availability and Shopping

companion. The data was subjected to reliability analysis using Cronbach‟s Alpha method.

Since the Alpha values of all the scales have been calculated above 0.7, the measurement

scale is deemed to be reliable for use.

5.4 DESCRIPTIVE STATISTICS:

The present study has outlined impulse buying as a dependent variable and time availability,

money availability, shopping companion, attractive display, sales promotion, attractive

packaging, hedonism, cognition, emotions and impulse buying tendency as independent

variables. The following section deals with the adequacy mean scores, standard deviation and

reliability for all the measurement items. The tables (5.9 to 5.19) depict the mean, standard

147

deviations of various items in the scale along with their composite reliability for such

measurements using Cronbach‟s Alpha method.

Impulse Buying

Impulse buying has been measured using a standardized seven point scale given by (Weun

et.al, 1998). The scale consisted of 5 items, which after pretesting were reduced to 4 items.

Table 5.9: Impulse Buying

Construct Items Mean Standard

Deviation

Composite

Reliability

Impulse

Buying

As I was shopping, I bought things I did not intend

to purchase.

5.85 1.472

0.819

I made unplanned purchases while shopping. 5.16 1.601

When I saw something that really interested me I

bought it without considering the consequences.

5.53 1.274

It was fun to buy spontaneously 5.29 1.557

Overall mean 5.45 1.476

The impulse buying is close to higher side with overall mean value of 5.45 on a seven point

scale (1=strongly disagree to 7= strongly agree) as indicated in the table 5.9 above. The table

further indicates that while shopping at the mall respondents mostly make purchases, which

they had not intended to make. This is so due to the fact that the mean value for this variable

has been recorded the highest at 5.85 among all four items related to impulse buying.

Further, the statements were subjected to reliability test. The Cronbach alpha value for the

scale was calculated at 0.819 thereby validating the scale to be used for the conduct of study.

Time Availability

Time availability has been measured using a standardized scale originally developed by

Herington and Capella (1995). While analyzing the time availability factor it has been

observed that the mean values vary from 5.11 to 5.37 with an overall mean score of 5.265

indicating that customers who indulge into impulse buying spend more time shopping.

Moreover, values related to „Time Availability‟ in table 5.10 indicate that customers

shopping at the malls attach highest importance to shopping in spare time with a mean value

148

of 5.37. The composite reliability for the scale has been calculated at 0.777 which means the

scale is valid for the conduct of study.

Table 5.10: Time Availability

Construct Items Mean Standard

Deviation

Composite

Reliability

Time Availability

I shopped in my spare time.

5.37 1.563

0.777

I hurried to complete my shopping

on time

5.11 1.656

I usually had as much time as I

needed to complete my shopping

quickly.

5.28 1.595

I felt pressured to complete my

shopping quickly

5.30 1.548

Overall mean 5.265 1.3405

Money Availability:

Money Availability has been measured using a standardized scale developed by Beatty and

Ferrell (1995). As seen from the below table 5.11, this parameter has an overall mean score

of 5.466 indicating that customers availability of money is one key factor that leads to

impulse buying. The Cronbach Alpha value for the scale has been calculated at 0.739,

thereby validating the scale to be used for the conduct of study.

Table 5.11: Money Availability

Construct Items Mean Standard

Deviation

Composite

Reliability

Money

Availability

I afforded to make any unplanned

purchases.

5.35 1.315

0.739

I was on a tight budget for shopping. 5.61 1.283

I had enough extra money so that I

could spend a little lavishly if I found

something I really liked.

5.44 1.227

Overall mean 5.466 1.275

149

Shopping Companion:

The shopping companion parameter has been measured with a self developed scale which

was pretested. The mean values vary from 4.77 to 5.59 with an overall mean score of 5.053

indicating that most people are accompanied by family members while making impulse

purchase as the statement “I bought more as I was accompanied by family members” has a

high mean value of 5.59. The Composite reliability value for shopping companion came to be

0.772 for the three items thus representing the validity of the scale to be used for the study.

Table 5.12: Shopping Companion

Construct Items Mean Standard

Deviation

Composite

Reliability

Shopping

Companion

I bought more as I was accompanied

by family members.

5.59 1.539

0.772

I bought more as I was accompanied

by friends.

4.77 1.738

I bought more as I was accompanied

by colleagues.

4.80 1.899

Overall mean 5.053 1.725

Impulse Buying Tendency:

The impulse buying tendency has been measured using a standardized scale given by Rook

and Fisher (1995). While analyzing this parameter, it has been observed that the mean values

vary from 4.62 to 5.68 with an overall mean of 5.23 which indicates that customers with high

impulse buying tendency have greater probability of indulging into impulse buying. The

analysis of impulse buying tendency dimensions further indicates that people are not really

careless about making the purchase as this particular statement has a mean of 4.62 which is

the lowest and highest mean value of 5.68 is recorded for spontaneous purchase tendency of

impulse buyers. The composite reliability value of 0.912 supports the measurement of

impulse buying tendency using this scale.

150

Table 5.13: Impulse Buying Tendency

Construct Items Mean Standard

Deviation

Composite

Reliability

Impulse Buying

Tendency

I often buy things spontaneously. 5.68 1.226

0.912

“Just do it” describes the way I buy things. 5.28 1.574

I often buy things without thinking. 5.08 1.324

I see it, I buy it describes me. 5.02 1.378

Buy now, think about it later describes me. 5.18 1.370

Sometimes I feel like buying things

promptly.

5.56 1.250

I buy things according to how I feel at that

moment.

5.49 1.456

Sometimes I am a bit careless about what I

buy.

4.62 1.734

Overall mean 5 .23 1.414

Hedonism:

The hedonism parameter has been measured using a scale developed by Babin, Darden, and

Griffin (1994). Table 5.14 gives the mean values of the items measuring „Hedonism‟. On

closely analyzing the mean values, they range between 5.29 to 5.55 and the overall mean for

the items combined has been calculated at 5.44, which on a seven point rating scale indicates

that the customers have high desire to satisfy their hedonic needs while making impulse

purchases. From another perspective, it can be said that people who make impulse purchases

at the shopping mall have less inclination to satisfy their utilitarian needs. Also, the

Composite reliability for the eight items scale has been calculated at 0.908 thereby validating

the scale for the conduct of study.

151

Table 5.14: Hedonism

Construct Items Mean Standard

Deviation

Composite

Reliability

Hedonism

I continued to shop not because I had

to, but because I wanted to.

5.53 1.288

0.908

I felt out of this world on my

shopping trip.

5.40 1.409

The time spent shopping was truly

enjoyable.

5.48 1.359

I enjoyed this shopping trip for its

own sake, not just for the items I may

have purchased.

5.55 1.376

I had a good time because I was able

to act promptly.

5.46 1.314

During the trip, I felt the excited. 5.37 1.418

While shopping, I was able to forget

my problems.

5.44 1.366

While shopping, I felt a sense of

adventure.

5.29 1.432

Overall mean 5.44 1.3702

Cognition:

Cognition variable has been measured using a standardized scale developed by Youn (2000).

The mean values of cognition vary from 4.0 to 5.33(table 5.15) with an overall mean of 4.804

which indicates that people are somewhat less rational while making impulse purchase. Also,

it can be inferred from table 5.15 that people tend to buy things that are not planned earlier

even when they go shopping for other purposes as the statement “If I see something that I

think I need, I buy it even though I went shopping for other purposes” has the highest mean

of 5.33. The composite reliability value of 0.784 further supports the measurement of

perceived quality for using this scale.

152

Table 5.15: Cognition

Construct Items Mean Standard

Deviation

Composite

Reliability

Cognition

I make a list when I go shopping and buy only what is on the list 4.58 1.918

0.784

I rarely buy impulsively 4.43 2.094

When I think about my buying behaviour, I consider myself to

be an impulse buyer.

5.12 1.586

People who know me consider me to be an impulse buyer 5.26 1.513

When I go shopping, I buy things that I had not intended to

purchase.

4.91 1.474

If I see something that I think I need, I buy it even though I went

shopping for other purposes.

5.33 1.444

I tend to spend money as soon as I earn it. 4.00 2.057

Overall mean 4.804 1.7265

Attractive Display:

The attractive display has been measured using a multi –item scale developed by Kim

(2003), Han (1987) and Rook and Fisher (1995). Table 5.16 indicates that the mean values

for attractive display ranges between 5.46 to 6.03 and has a combined overall mean of 5.73

indicating high importance attached with attractive display. Also, the statement “I tend to

enter a store when I am attracted by an eye catching display” has the highest mean of 5.79

which means that people have a tendency to enter into the store on seeing an eye catching

display. Thus, good aesthetics in the form of attractive display of products induces impulse

purchase among the customers. The composite reliability was calculated at 0.846 for the six

items used.

153

Table 5.16: Attractive Display

Construct Items Mean Standard

Deviation

Composite

Reliability

Attractive

Display

I tend to enter a store when I am attracted by an eye

catching display.

5.79 1.072

0.846

I tend to rely on store displays when I make a decision to

purchase.

5.46 1.136

Specially arranged and particularly attractive display

attracts my attention and induces unplanned purchasing.

5.62 1.046

Proper shelf arrangement (eg. Products within hand reach)

affects my unplanned purchasing.

5.62 .966

Symmetrical arrangement of products attracts my

attention

5.91 1.076

A colourful display sets my mood and feelings and affects

my unplanned purchasing.

6.03 1.032

Overall mean 5.73 1.054

Sales Promotion:

The sales promotion parameter has been developed by referring to the scales given by Beatty

& Ferrel, 1998; Youn & Faber, 2000, Han, 1987; Rook& Hoch, 1985; Weun, Jones, &

Beatty, 1997. While analyzing it has been found that the mean values of sales promotion vary

from 4.55 to 5.31 with an overall mean of 5.015 indicating that discounts and offers induce

people to make impulse purchases. Furthermore, it can be said it is not necessary that people

buy products that are accompanied by promotional offers as the statement “I am more likely

to buy a product if it has a promotional offer (reduced price, free gifts) on the label” has a low

mean score of 4.55 respectively. The Cronbach Alpha for the scale has been calculated at

0.832 further validating the scale for the conduct of study.

154

Table 5.17: Sales Promotion

Construct Items Mean Standard

Deviation

Composite

Reliability

Sales

promotion

Buying products with promotional offers (reduced

prices, free gifts) deals makes me feel good.

4.99 1.925

0.832

I am more likely to buy a product if it has a

promotional offer (reduced price, free gifts) on the

label.

4.55 1.701

I enjoy buying products with promotional offer

(reduced price, free gifts).

5.31 1.554

I have a positive attitude towards promotional offer

(reduced prices, free gifts).

5.21 1.614

Overall mean 5.015 1.6985

Attractive Packaging:

The attractive packaging parameter has been measured by using the elements proposed by

Siloyi and Speece (2004). The mean values of attractive packaging vary from 5.7 to 5.9

indicating that it has an important role and acts as a catalyst for the customers who make

impulse purchases. The results of table 5.18 further indicate that colourful product packaging

and visual design attracts the customer‟s attention and induces them to buy as both these

statements have a high mean score value of 5.90. The composite reliability value of 0.715

further supports the measurement of attractive packaging using this scale.

Table 5.18: Attractive Packaging

Construct Items Mean Standard

Deviation

Composite

Reliability

Attractive

Packaging

The visual design of the product packaging attracts

my attention.

5.9 1.055

0.715 Colourful product packaging induces me to buy. 5.90 .976

The size of the packed product attracts my attention. 5.70 1.055

Brand mentioned on the package attracts my attention

and induces me to buy.

5.81 1.025

Overall mean 5.827 1.027

155

Emotions:

The emotion parameter has been measured using a scale developed by Beatty and Ferrell

(1998). The mean values of this parameter vary from 3.29 to 6.39 with an overall mean of

4.52, which indicate that people associate positive emotions more as compared to negative

emotions with impulse buying. The composite reliability has also been calculated at 0.732 for

the five items used.

Table 5.19: Emotions

Construct Items Mean Standard

Deviation

Composite

Reliability

Emotions

While shopping at the mall I was excited. 6.39 .781

0.732

While shopping at the mall I was enthusiastic. 6.07 .910

While shopping at the mall I was distressed. 3.29 1.876

While shopping at the mall I was upset. 3.35 2.045

While shopping at the mall I was irritated. 3.53 2.216

Overall mean 4.52 1.56

5.5 CORRELATION ANALYSIS:

Pearson correlation tests were conducted to see the correlations between the independent

variable and dependent variables. In addition to the Pearson correlation test, bivariate

analysis and multiple regression analysis were conducted for the hypotheses testing using

impulse buying as a dependent variable and in store stimuli, situational factors, personal

factors, emotions and hedonism, cognition as predictors of impulse buying. The analysis has

further tried to determine the relative importance of the various type of influences on the

impulse buying behaviour. This section presents the analysis of relationship between various

variables that were considered while conducting the study. The table 5.20 below gives the

correlation among the various variables affecting impulse buying phenomenon.

156

Table 5.20: Inter- Variable Correlation Matrix

Ib IS EH PF SF Ta ma Sc Ibt hed cog pkg sp Dsp em Gender

Age

income

Ib 1

IS .519**

1

EH .334**

.484**

1

PF .364**

.435**

.312**

1

SF .417**

.387**

.237**

.316**

1

Ta .388**

.428**

.369**

.317**

.779**

1

Ma .277**

.268**

.207**

.279**

.696**

.357**

1

Sc .226**

.124**

-.067 .085*

.594**

.117**

.251** 1

Ibt .367**

.441**

.294**

.973**

.322**

.312**

.299**

.092* 1

Hed

.418**

.567**

.717**

.363**

.319**

.421**

.215** .036 .362**

1

Cog

.265**

.467**

.411**

.413**

.229**

.372**

.129** -.034 .410**

.513**

1

Pkg

.368**

.673**

.468**

.352**

.311**

.327**

.228** .100** .349**

.523**

.339**

1

Sp .446**

.807**

.416**

.414**

.339**

.375**

.251** .110** .421**

.496**

.444**

.359**

1

Dsp

.458**

.722**

.349**

.350**

.325**

.329**

.256** .114** .353**

.440**

.355**

.433**

.449**

1

Em

.107**

.191**

.788**

.125**

.061 .157**

.107** -.123** .102**

.144**

.133**

.210**

.156**

.110**

1

Gender

.048 .063 .017 .028 .038 .014 .030 .044 .034

.063 .028 -.012

.077*

.062 -.035

1

Age

.053 .079* .163**

.267**

.037 .121**

-.029 -.045 .063

.066 .086*

.106**

.059 .068 .170**

-.284**

1

Income

.034**

-.009 .051 .283**

.007 .009 -.034 .019 .094*

.036 .070 .047 .000 -.005

.036 -.268**

.660**

1

In the above table ** stands for correlation is significant at the 0.01 level (2-tailed) and *

for correlation is significant at the 0.05 level (2-tailed).

157

5.6 REGRESSION ANALYSIS

Further, the data analysis has tried to study the effect of independent variables on dependent

variables. Therefore, this section deals with the analysis of the relationship between various

variables that have been considered while conducting the study.

5.6.1 Objective 1: To examine and analyze the role of in-store stimuli on impulse

buying.

Analysis of relationship between in store stimuli and impulse buying has been analyzed as

the first objective of the study. The in store stimuli include the variables attractive display,

sales promotion and attractive packaging. Therefore, a regression analysis was undertaken

with impulse buying as dependent variable and attractive display, sales promotion and

attractive packaging as independent variables. Analysis of the ANOVA table 5.21a indicates

that the p-value has been found to be statistically significant (p=0.000) thus leading to the

conclusion that there exists a linear relationship between the dependent and the independent

variable. The results of correlation analysis (table 5.20) have also indicated that attractive

display (dsp, r=0.458**,p<0.05), sales promotions(sp, r=0.446**, p<0.05),packaging (pkg,

r=0.368**,p<0.05) are significantly correlated with impulse buying. Therefore, it becomes

logical to regress these variables with impulse buying.

Table 5.21a:ANOVA: In store Stimuli and Impulse Buying

Model Sum of Squares Df Mean Square F Sig.

1 Regression 293.947 3 97.982 97.374 .000a

Residual 700.347 696 1.006

Total 994.295 699

a. Predictors: (Constant), spfs, pkgfs, dspfs

b. Dependent Variable: ib

The multiple regression model with all the three predictors namely (attractive display, sales

promotion and attractive packaging) produced Adjusted R² =29.3(table 5.21b) which

indicates that variation in impulse buying to the tune of 29.3 % is caused due to in store

stimuli. As can be seen in Table 5.21c, attractive display, sales promotion and attractive

packaging have significant positive regression weights thereby suggesting that all the

158

variables exert a positive influence on impulse buying. Further, it can be concluded from the

table 5.21c that display of products (β=0.379,p=0.000) has the highest impact on impulse

buying followed by sales promotion(β=0.317,p=0.000) and packaging(β=0.226,p=0.000)

inside the store.

Table 5.21b:Regression Analysis:Instore Stimuli and Impulse Buying

Model R

R

Square

Adjusted R

Square

Std. Error of

the Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .544a .296 .293 1.003 .296 97.374 3 696 .000

a. Predictors: (Constant), spfs, pkgfs, dspfs

Table 5.21c: Regression Coefficients: Instore Stimuli and Impulse Buying

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 5.461 .038 144.028 .000

Dspfs .452 .038 .379 7.117 .000

Pkgfs .270 .038 .226 11.912 .000

Spfs .379 .038 .317 9.979 .000

a. Dependent Variable: ib

The Regression equation can therefore be given as:

Ib= 5.461+.452Dspfs+.270Pkgfs+.379Spfs

Where Ib= Impulse Buying

Dspfs= Factor Score for Attractive display

Pkgfs= Factor Score for Attractive Packaging

Spfs= Factor Score for Sales Promotion

159

5.6.2 Objective 2: To conduct an impact analysis of situational and personal factors on

impulse buying behaviour

The objective outlined intends to analyze the impact of two different variables i.e. situational

and personal factors. Thus, the analysis has been presented in two sections.

5.6.2.1 Regression of Situational factors with Impulse Buying

The results of correlation analysis (table 5.20) indicate that situational factors are positively

correlated to impulse buying(r=0.417**, p<0.01). Also, time availability (r=0.388*,p<0.05),

money availability(r=0.277*,p<0.05) and shopping companion (r=0.226*,p<0.05) all the

variables have significant positive correlation with impulse buying. Therefore, a multiple

regression analysis was undertaken with impulse buying as dependent variable and time

availability, money availability and shopping companion as independent variables. The

ANOVA table 5.22a indicates a significant p-value (p=0.000) which means that there is a

linear relationship between the dependent and independent variable. The results (table 5.22b

and 5.22c) have indicated that situational factors cause 20.2 % variation in impulse purchase

behaviour as the Adjusted R square value is 0.202. Further analysis indicates that all the

components of situational factors have positive relationship with impulse buying (β= 0.369

for time, β= 0.205 for money and β= 0.165 for shopping companion) at (p=0.000, 0.000 and

0.000) respectively. Also, the Beta coefficient weights indicate that time has the highest

impact on impulse buying followed by money and shopping companion.

Table 5.22a:ANOVA: Situational Factors and Impulse Buying

Model

Sum of

Squares Df

Mean

Square F Sig.

1 Regression 204.086 3 68.029 59.918 .000a

Residual 790.208 696 1.135

Total 994.295 699

160

Table 5.22b:Regression Analysis: Situational Factors and Impulse Buying

R

R square

Adjusted R

Square

Std. Error

of

Estimate

R Square

Change

F Df

1

Df2 Sig.F

change

.453

.205

.202

1.066

.205

59.91

3

696

.000

Table 5.22c:Regression Coefficients: Situational Factors and

Impulse Buying

Odel

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 5.461 .040 135.591 .000

Tfs .440 .040 .369 10.908 .000

Mfs .244 .040 .205 4.896 .000

Scfs .197 .040 .165 6.065 .000

The Regression equation therefore is:

Ib= 5.461 +0.440tfs+0.244mfs+0.197Scfs

Where ib= Impulse Buying

tfs= Factor Score for Time Availability

mfs= Factor score for Money Availability

Scfs= Factor Score for Shopping Companion

161

5.6.2.2 Impact of Personal Factors on Impulse Buying

The correlation analysis (table 5.20) indicates that there is a positive correlation between the

personal factors and impulse buying (PF r=.364**, p<0.01). Therefore, to analyze the impact

of personal factors on impulse buying a multiple regression analysis was undertaken. The

personal factors include the age, gender, income and impulse buying tendency. The ANOVA

table 5.23a indicates a linear relationship between the dependent and independent variables

as the (p value = 0.000) is statistically significant.

Table 5.23c:Regression Coefficients: Personal Factors and Impulse Buying

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.562 .314 8.167 .000

Gender .108 .088 .045 1.227 .220

Age .067 .051 .063 1.327 .185

Income .044 .071 .030 .630 .529

Ibt .505 .049 .364 10.270 .000

Table 5.23a:ANOVA: Personal Factors and Impulse Buying

Model Sum of Squares Df Mean Square F Sig.

1 Regression 137.214 4 34.303 27.816 .000a

Residual 857.081 695 1.233

Total 994.295 699

a. Predictors: (Constant), ibt, gender, income, age

b. Dependent Variable: ib

Table 5.23b:Regression Analysis: Personal Factors and Impulse Buying

Mode

l R

R

Square

Adjusted R

Square

Std. Error of

the Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .371a .138 .133 1.110 .138 27.816 4 695 .000

a. Predictors: (Constant), ibt, gender, income, age

162

The results of correlation analysis (table5.20) also indicate that all the variable of personal

factors namely gender(r=.048, p>0.05), age(r=.053, p>0.05), income(r=.034, p>.05) and

impulse buying tendency(r=.364**, p<0.01) have positive relationship with impulse buying.

Table 5.23b presents the model summary which indicates that the variables of personal

factors namely age, gender, income and impulse buying tendency cause 13.3% variation in

impulse buying as the value of adjusted R square is 0.133. Further, the analysis of regression

coefficient (table 5.23c) reveal that among the personal factors only impulse buying tendency

(β=0.364, p=0.000) exerts a positive and significant influence on impulse buying. Age,

gender and income do not have a significant impact on impulse buying as their p- values are

0.185, 0.220 and 0.529 respectively.

The Regression equation for the above analysis can be given as:

Ib= 2.562+.108gender+.067age+.044income+ .505Ibt

Where Ib = Impulse Buying

Ibt= Impulse buying tendency

5.6.3 Objective 3: To understand emotions and hedonic considerations vis-à-vis their

role in impulse buying.

The correlation analysis table 5.20 indicates that there exists a positive correlation between

emotions and hedonism together (r=0.334**, p<0.01) and impulse buying. Therefore, it

becomes logical to regress these variables on impulse buying.

The objective has been statistically analyzed below in the table

Table 5.24a:ANOVA:Emotions,Hedonism and Impulse Buying

Model Sum of Squares Df Mean Square F Sig.

1 Regression 176.261 2 88.131 75.091 .000a

Residual 818.033 697 1.174

Total 994.295 699

a. Predictors: (Constant), em, hed

b. Dependent Variable: ib

163

Table 5.24c Regression Coefficients: Emotions , Hedonism and Impulse

Buying

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.258 .292 7.743 .000

Em .055 .040 .048 1.384 .000

Hed .541 .046 .411 11.852 .000

a. Dependent Variable: ib

While processing the data, it was intended to analyze the direct impact of emotions and

hedonism on impulse buying. Tables 5.24b and 5.24c represent the results of multiple

regression analysis. The Adjusted R square value of 0.175 (table 5.24b) indicates that

variation in emotions and Hedonism together cause a variation of around 18 percent in

impulse buying. Further the analysis of regression coefficients (table 5.24c) reveal that

hedonism (β=0.411, p=0.000) is a significant contributor towards increasing the impulse

buying. However the impact of emotions (β=0.048; p=0.000) is quite low but significant.

Hence, any effort to induce hedonic feeling and arousing emotions of the customers by the

retailers would result in increase in impulse buying. Also, a positive relationship between

emotions (r=.107**, p<0.01), hedonism (r=.418**, p<0.01) and impulse buying indicated in

table 5.20 further supports the results .

The regression equation can be given as:

Ib= 2.258+.055 Em+0.541 Hed

Where Em= Emotions

Hed= Hedonism

Table5.24b:Regression Analysis: Emotions,Hedonism and Impulse Buying

Mod

el R

R

Square

Adjusted R

Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .421a .177 .175 1.083 .177 75.091 2 697 .000

164

5.6.4 Objective 4: To study the effect of cognitive processes in impulse buying.

The ANOVA table 5.25a indicates that the p-value =0.000(p<0.05) is statistically significant

which means that there exists a linear relationship between the dependent variable (impulse

buying) and the independent variable (cognition). Further, the Adjusted R square value of

(0.069) in table 5.25b indicates that cognition exerts only 7% impact on impulse buying

which although quite low is significant. Also, the Beta coefficient table 5.25c indicates that

cognition has a positive influence on impulse buying as (β=0.265, p=0.000).

Table 5.25a:ANOVA: Cognition and Impulse Buying

Model Sum of Squares Df Mean Square F Sig.

1 Regression 69.995 1 69.995 52.858 .000a

Residual 924.300 698 1.324

Total 994.295 699

a. Predictors: (Constant), cog

b. Dependent Variable: ib\

Table 5.25c Regression Coefficients: Cognition and Impulse Buying

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 4.011 .204 19.656 .000

Cog .302 .042 .265 7.270 .000

Table 5.25b Regression Analysis: Cognition and Impulse buying

Mod

el R

R

Squar

e

Adjusted

R Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Chang

e df1 df2

Sig. F

Change

1 .265a .070 .069 1.151 .070 52.858 1 698 .000

165

5.6.5 HYPOTHESES TESTING

The study was designed with four basic assumptions, which were formulated as hypotheses.

Further, the hypotheses framed for the study were subjected to statistical tools to test and

validate the findings.

H1: In-store stimuli have influence on impulse buying.

The first hypothesis has been split into the following three sub hypotheses:

H1a: Attractive Display has an influence on impulse buying.

H1b: Sales Promotion has influence on impulse buying.

H1c: Attractive Packaging has influence on impulse buying.

The adjusted R square value of 0.293 from table 5.21b suggests that all the three variables of

in store stimuli together exert 29.3% influence on impulse buying. Further analysis of the

calculated “F” value from table 5.21b, 97.374 which is greater than the standard value of

2.60, suggests that in store stimuli have an impact on impulse buying. The Beta coefficients

(table 5.21c) also indicate that (β=0.379, p<0.05) for attractive display, (β=0.317, p<0.05) for

sales promotion and (β=0.266,p<0.05) for attractive packaging have a positive influence on

impulse buying. Therefore, all the sub hypotheses H1a, H1b and H1c are accepted.

H2: There is a significant impact of situational and personal factors on impulse buying.

The above hypothesis can be split up into sub hypotheses H2a and H2b:

H2a: There is a significant impact of situational factors on impulse buying.

H2b: There is a significant impact of personal factors on impulse buying.

Since the situational factors affecting impulse buying includes time, money and

companionship. Therefore, in order to validate H2a hypothesis, it has been further split into

three sub- hypotheses:

H2a1: There is significant impact of time on impulse buying.

H2a2: There is significant impact of money on impulse buying.

H2a3: There is significant impact of companionship on impulse buying.

The Adjusted R square value of 0.173(table 5.22b) has suggested that situational factors have

a significant effect on impulse buying and that 17.3% variation in impulse buying is

166

attributed to situational factors namely time, money and shopping companion. Further,

analysis of “F value” from table 5.22b suggests that the calculated value of 59.918 is greater

than the standard value 2.60, thereby confirming that situational factors do have an influence

on impulse buying. Moreover, Beta coefficients of time (β=0.369,p=0.000),

money(β=0.205,p=0.000) and shopping companion(β=0.165,p=0.000) in (table 5.22c)have

also pointed towards a positive relationship between the situational factors and impulse

buying, thereby supporting the sub hypotheses H2a1,H2a2,H2a3.

While validating the hypothesis H2b has also been split into four sub hypotheses:

H2b1: Age has significant impact on impulse buying.

H2b2: Gender has significant impact on impulse buying.

H2b3: Income has significant impact on impulse buying.

H2b4: Impulse buying tendency has a significant impact on impulse buying.

The results of table 5.23b and 5.23c have indicated that the variables of personal factors

namely age, gender, income and impulse buying tendency cause 13.3% variation in impulse

buying. Further, the analysis of “F” value in the table 5.23b suggests that calculated value

27.816 is greater than the standard value of 2.37, thus clearly indicating that personal factors

have a significant influence on impulse buying. However, the analysis of regression

coefficient table 5.23c indicates that among the personal factors only impulse buying

tendency (β=0.364, p=0.000) exerts a positive and significant influence on impulse buying.

Age, gender and income do not have a significant impact on impulse buying as their p-

values are 0.185, 0.220 and 0.529 respectively. Therefore, out of the four sub hypotheses

only H2b4 is accepted whereas H2b1, H2b2, H2b3 are rejected.

H3: Emotions and hedonic considerations enhance the impulse buying behaviour.

The Adjusted R square value of 0.175 (table 5.24b) indicates that variation in Emotions and

Hedonism cause a variation of around 18 percent in impulse buying. The calculated “F”

value 75.09 is greater than the standard value of 3.00, clearly pointing towards the fact that

the emotions and hedonism have a significant impact on impulse buying. Further the analysis

of regression coefficients (table 5.24c) has revealed that hedonism (β=0.411, p=0.000) is a

167

significant contributor towards increasing the impulse buying. However the impact of

emotions (β=0.048; p=0.000) is quite low but significant.

Hence, H3 is accepted.

H4: Cognitive processes have an impact on impulse buying

The adjusted R square value of 0.069 in the table5.25b points the fact that cognition causes

only 7% variation in impulse buying. Table 5.25c presents the β coefficient value, calculated

at 0.265 which signifies a positive relationship with impulse buying. Also, the calculated “F”

value, 52.858 from table 5.25b is greater than the standard value of 3.84 thereby indicating

the relationship between cognition and impulse buying to be significant.

Hence, H4 is accepted.

The affective and cognitive factors are the influences in triggering needs and also influence

the possibility of impulse buying behaviour. As a consumer‟s emotional desire increases

cognitive willpower decreases creating impulsivity, resulting in an impulsive buy if all other

contributing factors remain constant (Hoch and Loewenstein, 1991; Weinberg and Gottwald,

1982; Youn, 2000).This clearly indicates that impulse buying takes place when emotional

component overrides the cognitive processes thereby justifying the low value of Adjusted R

square value of 0.069.

5.7ANALYSIS OF IMPULSE BUYING TENDENCY WITH

DEMOGRAPHIC FACTORS

The result of the previous analysis of personal factors has indicated that impulse buying

tendency has a significant positive influence on impulse buying. However, to exactly identify

the target group in terms of demographics, an in depth analysis of demographic factors has

been conducted in consonance with the impulse buying tendency. Therefore, the data was

subjected to Independent t-test and ANOVA testing for analyzing the variance in impulse

buying tendency of the consumers with respect to demographics. The following table 5.26a

and 5.27b indicates that the mean value for females is 5.26 which is greater than males and

the relationship is significant (p<0.05). This means that females have more tendency to be

impulsive.

168

Table 5.26a: Descriptive statistics for gender

Group Statistics

gender N Mean Std. Deviation Std. Error Mean

Ibt Male 343 5.21 .845 .046

female 356 5.26 .876 .046

Table 5.26b: Independent t test for gender and impulse buying tendency

Levene‟s Test

for equality of

variances

t-test for equality of means

Ibt

F

Sig.

t

df

Sig.(2-

tailed)

Mean

Diff.

Std.

Error

of Diff

Lower

Upper

Equal variances

assumed

Equal variances not

assumed

.060 .003 .826

.827

697

696.

56

.003

.002

.054

.054

.065

.065

.182

.182

.074

.074

The following table 5.27 gives the ANOVA table for impulse buying tendency with respect

to age and income group. It is clear from the significance column (p-values) that there is

significant variation between groups in terms of both the parameters, hence the application of

Post hoc test has been applied to identify the homogeneous subsets of age and income

groups.

169

Table 5.27: ANOVA: Impulse Buying Tendency with respect to age and income group

Sum of

Squares

Df

Mean Square

F Sig.

Age

Between

Groups

6.858

4

.715

.965

.002

Within

Groups

514.626

695

.740

Total

517.484 699

Income Between

Group

16.505

2 8.253 11.482 .000

Within

Group

500.978 697 .719

Total 517.484 699

Post hoc Test

Once it was determined from ANOVA table that differences do exist among the means,

Tukey‟s honestly significant difference (Tukey‟s HSD) test which is a post hoc test was used

to determine which means differ. Table 5.27 above depicts the variance analysis of impulse

buying tendency on the basis of age group and income group.

Table 5.28 clearly indicates that impulse buying tendency is similar in age groups less than

20, 21-30 and 31-40 and is higher than in 41-50 and above 50 age groups. However, it is

highest in the age group 21-30.

Table 5.28 : Tukey’s HSD Homogeneous Subsets for age groups

Tukey Ba,b

Age N

Subset for alpha = 0.05

1 2

less than 20 98 5.30

31-40 171 5.32

21-30 251 5.38

41-50 139 5.19

above 50 41 5.16

170

The result of analysis of variance from table 5.27 has revealed that there is significant

variation between groups in terms of income groups. Further, from the table 5.29 it can be

interpreted that customers in the income group above10 lac have the highest impulse buying

tendency as compared to the customers having annual household income of upto 5 lac and 5-

10 lacs.

Table 5.29: Tukey’s HSD Homogeneous subset for Income group.

Ibt

Tukey Ba,b

Income N

Subset for alpha = 0.05

1 2

5-10 lac 250 5.07

upto 5 lac 252 5.23

above 10 lac 198 5.46

5.8 MEDIATION EFFECT OF EMOTIONS

From the statistical analyses, it has been proven that there exists a significant positive

relationship between the in store stimuli (attractive display, sales promotion, and packaging)

and impulse buying. Along, with the in store stimuli, emotions and hedonism have also been

found to be a significant contributor in impulse buying. Besides, the role of emotions in

consumption has been an issue that has created a lot of interest among researchers and the

level of research that has occurred between the boundaries of the economic discipline

regarding emotions is significant. However, what has been overlooked is the social aspect of

emotions, while most of the research done is concerned with the individual conceptualization

of emotions. Emotions are not simply internal events but are communicative acts and are also

addressed in the consumption environment of an individual (Parkinson 1996, Bearden et.al,

1989). In this context, it is a matter of discussion as to how the emotional state of an

individual influences his impulsive buying behaviour. Whether positive or negative

emotions, the two extremes of the emotional state, have a stronger effect has also been a

matter of debate for a long time among researchers and is still argued .However, in the

present study emotions have been found to have very less direct impact on impulse buying

behaviour. Along with emotions there is an important role of hedonism. Research has led to

171

the widespread acceptance that impulse buying behaviour is a result of emotional or hedonic

motivations. Hedonic shopping motives are concerned with hedonic fulfilment in the sense of

experiencing fun, excitement, and fantasy. A detailed review of literature has revealed that

emotions play a mediating role between the store environment and impulse buying.

Therefore, the analysis of mediated impact of emotions and hedonism has been undertaken to

understand its role in impulse buying.

Therefore, to find out the mediating effect of emotions and hedonism on in store stimuli and

impulse buying, Baron and Kenny‟s (1986) linear equation method has been followed.

According to this method, a variable may be considered a mediator to the extent to which it

carries the influence of a given independent variable (IV) to a given dependent variable

(DV). Generally speaking, mediation can be said to occur when (1) the IV significantly

affects the mediator, (2) the IV significantly affects the DV in the absence of the mediator,

(3) the mediator has a significant unique effect on the DV, and (4) the effect of the IV on the

DV shrinks upon the addition of the mediator to the model. However, the assessment of the

significance of the reduction of the relationship between the independent and dependent

variables cannot be assessed by a visual inspection of the coefficients. It has to be assessed

mathematically. The Sobel test has been a traditional method of testing the significance of

mediation effects. Newer methods that are similar to the Sobel test have been shown to have

higher power than the Sobel test (Mackinnon et al., 2002). The Sobel test is used in this study

because it is the most widely employed. The purpose of this test was to verify whether

mediator carries the influence of an independent variable to a dependent variable. The Sobel

test performs a statistical test to see if the indirect path from the independent variable to the

dependent variable is statistically different from zero. The test requires the unstandardised

regression coefficients for paths a and b and their standard errors, which are obtained by

running regression analysis. This test proposes the following equation for estimating indirect

effects:

Z-value = a*b/SQRT (b2*sa2+a2*sb2).

This formula requires the unstandardized regression coefficient (a) and the standard error (sa)

of the relationship between the independent variable a, and the unstandardized regression

coefficient (b) and standard error (sb) of the path from the mediator to the dependent

variable.

172

In store stimuli--- Emotions--- Impulse Buying

The impact of emotions as a mediator between the in store stimuli (independent variable) and

impulse buying (Dependent variable) has been studied in the following steps.

Table 5.30: Regression of Instore stimuli(IV) and Impulse buying(DV)

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .308 .324 .950 .343

IS .930 .058 .519 16.030 .000

Table 5.31 :Regression of mediator emotions and Instore Stimuli(IV)

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 3.044 .324 9.393 .000

IS .299 .058 .191 5.144 .000

It can be seen from table 5.30 and table 5.32 that the Beta coefficient for In store Stimuli

Impulse buying reduces from 0.519 to 0.517 when emotions is added to the regression,

suggesting that emotions may be exerting a mediating effect. The relevant values needed

for the Sobel test for mediation are In store Stimuli Impulse Buying: unstandardized

coefficient (a) =0.299, standard error (sa) = 0.058(Table 5.31) and Emotions Impulse

Buying, with Instore stimuli controlled: unstandardized coefficient (b) =0.010, standard

error (sb) =0.038 (Table5.32).

173

Table 5.32: Regression equation of instore stimuli on impulse buying controlling the

mediator emotions.

Display--- Emotions----- Impulse Purchase

Table 5.21c gives the regression coefficient (β=0.379) for display. Again regression analysis

has been performed with emotions as dependent variable and display as independent variable

controlling the mediator emotions.

Table 5.33: Regression of mediator emotions and display.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 3.716 .338 10.999 .000

Dsp .172 .059 .110 2.931 .003

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .279 .344 .810 .000

IS .928 .059 .517 15.676 .000

Em .010 .038 .008 .251 .000

Application of the Sobel approximate formula to these unstandardized coefficient and standard

error values yields the statistic Z = .2628, p = 0.792. So, according to this mediation analysis, it

is confirmed that emotions do not mediate the relationship between In store stimuli and

Impulse Buying.

It has further analyzed whether emotions mediate the relationship among the correlates of in

store stimuli namely attractive display, sales promotion and attractive packaging and impulse

buying.

174

Table 5.34: Regression equation of the predictor variable display on criteria impulse

buying controlling the mediator emotions

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.405 .392 3.584 .000

Dsp .647 .063 .361 10.215 .000

Em .077 .041 .067 1.905 .003

a. Dependent Variable: ib

It can be seen from table 5.21c and table 5.34 that the Beta coefficient for Display Impulse

buying decreases from 0.379 to 0.361 when emotions is added to the regression, suggesting

that emotions may exert a mediating effect. Further, application of Sobel test yields

Z=1.57, p=0.114 thereby suggesting that emotions do not mediate the relationship between

display and impulse purchase.

Sales Promotion---emotions----Impulse buying

The mediating role of emotions between sales promotion and impulse buying has also been

verified. It can be seen from table 5.21c and table 5.36 that the Beta coefficient for Sales

Promotion Impulse buying increases from 0.317 to 0.452 when emotions is added to the

regression, suggesting that emotions do not exert a mediating effect.

Table 5.35: Regression of mediator emotions on predictor sales promotion

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 3.868 .203 19.058 .000

Sp .166 .040 .156 4.178 .000

a. Dependent Variable: em

175

Table 5.36: Regression equation of predictor variable sales promotion on impulse

buying controlling the mediator emotions.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.499 .258 9.678 .000

Sp .551 .041 .452 13.284 .000

Em .042 .039 .036 1.071 .285

Packaging --- Emotions ----- Impulse buying

It can be seen from table 5.21c and table 5.38 that the Beta coefficient for Packaging

Impulse buying increases from 0.226 to .443 when emotions is added to the regression,

suggesting that emotions do not exert a mediating effect.

Table 5.37: Regression of mediator emotions on predictor packaging.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.996 .303 9.899 .000

Pkg .292 .051 .210 5.677 .000

a. Dependent Variable: em

176

Table 5.38: Regression equation of predictor variable packaging on criteria impulse

buying controlling the mediator emotions.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.267 .340 3.730 .000

Pkg .705 .055 .443 12.762 .000

Em .016 .040 .014 .408 .683

a. Dependent Variable: ib

After analyzing the role of emotions as a mediator, the mediating effect of

hedonism between in store stimuli, its correlates and impulse buying has also been

examined.

In store stimuli-----Hedonism------Impulse Buying

It can be seen from table 5.26 and table 5.40 that the Beta coefficient for In store Stimuli

Impulse buying decreases from 0.519 to .415 when hedonism is added to the regression,

suggesting that hedonism may exert a partial mediating effect.

Table 5.39: Regression of mediator hedonism on predictor instore stimuli.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.160 .237 4.888 .000

IS .773 .043 .567 18.169 .000

a. Dependent Variable: hed

Fig. 5.5: Mediation effect of hedonism on instore stimuli and impulse buying

Hedonism

In store stimuli Impulse Buying

177

Table 5.40: Regression equation of the predictor variable instore stimuli on criteria

impulse buying controlling the mediator hedonism.

Model

Unstandardized coefficients

Standardized

Coefficients

T Sig. B Std.Error

(Constant) ,028 .324 .086 .931

Hed .241 .051 .183 4.737 .000

IS .744 .069 .415 10.725 .000

The relevant values needed for the Sobel Test for mediation are Instore stimuli Hedonism :

Unstandardized coefficient (a)= 0.773, Standard error(sa)=0.043(Table 5.39) and Hedonism Impulse

Buying, with instore stimuli controlled: unstandardized coefficient (b)=0.241, standard error

(sb)=0.051(Table 5.40).

Application of the Sobel approximate formula to these unstanardized coefficients and standard error

values yields the statistic Z=4.57,p=0.000. So, according to this mediation analysis, it has been

confirmed that hedonism significantly mediates the relationship between instore stimuli and impulse

buying, which confirms our partial correlation analysis of the same data.

Display----Hedonism----Impulse buying

It can be seen from table 5.21c and table 5.42 that the Beta coefficient for Display Impulse

buying decreases from 0.379 to 0.229 when hedonism is added to the regression, suggesting

that hedonism may exert a partial mediating effect.

Table 5.41: Regression of mediator hedonism on predictor display.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.017 .266

7.579 .000

Dsp .599 .046 .440 12.942 .000

178

Fig 5.6: Mediation effect of hedonism on display and impulse buying

Table 5.42: Regression of predictor variable display on criteria variable impulse buying

controlling the mediator hedonism

Model

Unstandardized coefficients Standardized coef

T Sig. B Std. Error Beta

(Constant) .848 .359 2.362 .018

Hed .418 .049 .318 8.515 .000

.410 .067 .229 6.126 .000

The relevant values needed for the Sobel test for mediation are Display Hedonism: Unstandardized

coefficients(a)=0.599, standard error(sa)=0.046(table 5.41) and hedonism Impulse buying, with

display controlled : unstandardized coefficient (b)=0.418, standard error(sb)=0.049(table 5.42).

Application of Sobel approximate formula to these unstandardized coefficient and standard error

values yields the statistic Z=7.13,p=0.000. So, according to this mediation analysis, it is confirmed

that hedonism significantly mediates the relationship between display and impulse buying, which is

in conformity with the earlier partial correlation analysis.

Sales Promotion------Hedonism------Impulse buying

It can be seen from table 5.21c and table 5.44 that the Beta coefficient for Sales Promotion

Impulse buying increases from 0.317 to 0.332 when hedonism is added to the regression,

suggesting that hedonism does not exert a mediating effect.

Hedonism

Display

Impulse Buying

179

Table 5.43: Regression of mediator hedonism on predictor variable sales promotion.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 3.137 .156 20.158 .000

Sp .459 .030 .496 15.075 .000

a. Dependent Variable: hed

Fig 5.7: Mediation effect of hedonism on sales promotion and impulse buying

Table 5.44: Regression of predictor variable sales promotion on criteria variable

impulse buying controlling the mediator hedonism

Model

Unstandardised Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant)

Hed

1.615

.334

.265

.049

.354

6.332

6.752

.000

.000

Sp .405 .046 .332 8.852 .000

Hedonism

Sales Promotion

Impulse Buying

180

Packaging------Hedonism-----Impulse Buying

It can be seen from table 5.21c and table 5.46 that the Beta coefficient for Display Impulse

buying increases from 0.226 to 0.312 when hedonism is added to the regression, suggesting

that hedonism does not exert a partial mediating effect.

Table 5.45: Regression of mediator hedonism on predictor variable packaging

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.742 .230 7.571 .000

Pkg .633 .039 .523 16.200 .000

a. Dependent Variable: hed

Table 5.46: Regression of predictor variable packaging on criteria variable impulse

buying controlling the mediator hedonism

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .731 .321 2.277 .023

Hed .336 .051 .255 6.613 .000

Pkg .497 .061 .312 8.091 .000

a. Dependent Variable: ib

In store Stimuli---Emotions +Hedonism----Impulse Buying

It can be seen from table 5.26 and table 5.48 that the Beta coefficient for In store Stimuli

Impulse buying decreases from 0.519 to 0.466 when hedonism+Emotions is added to the

regression, suggesting that hedonism may exert a partial mediating effect.

The relevant values needed for the Sobel test for mediation are In store Stimuli

Emotions+hedonism : unstandardized coefficient (a) =0.539 , standard error (sa) = 0.037(

181

table 5.47) and Emotions+Hedonism Impulse Buying with In store Stimuli controlled:

unstandardized coefficient (b) = 0.175, standard error (sb) = 0.059 ( table5.48).

Application of the Sobel approximate formula to these unstandardized coefficient and

standard error values have yielded the statistic Z =2.906, p = 0.003. So, according to this

mediation analysis, it is confirmed that Emotions+Hedonism (state - trait) significantly

mediates the relationship between In store Stimuli and Impulse Buying.

Table 5.47 Regression of mediator EH on predictor in store stimuli

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 2.088 .206 10.143 .000

IS .539 .037 .484 14.593 .000

Fig 5.8: Mediation of emotions and Hedonism between In store Stimuli and

Impulse Buying

Table 5.48: Regression of predictor variable in store stimuli on criteria variable impulse

buying controlling the mediator emotions and hedonism

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) -.057 .345 -.166 .868

EH .175 .059 .109 2.952 .003

IS .836 .066 .466 12.682 .000

Instore Stimuli

EH (Emotions+Hedonism)

Impulse Buying

182

Conclusion:

The main purpose to analyze the mediating effect of emotions and hedonism has been to

understand if they act as catalyst in impulse buying phenomenon. From the above mediation

effect analysis of emotions and hedonism, it has been inferred that hedonism mediates the

relationship between in store stimuli and impulse buying. The results above also indicate that

emotions do not mediate the relationship between in store stimuli, its correlates and impulse

buying. Also, emotions and hedonism when combined have a mediating role between in store

stimuli and impulse buying. Therefore, the results of the present study imply that the

marketers should try to manage the in store stimuli in such a manner that the hedonic desires

and emotions of the customers are satisfied in totality with greater focus on the hedonic

component.

183

References:

Babin, B.J., Darden, W.R. and Griffin, M. (1994), “Work and /or fun: Measuring hedonic

and utilitarian shopping value”, Journal of Consumer Research, 20 (March), pp.644-656.

Baron, R. M. and Kenny, D. A. (1986), “The Moderator-Mediator Variable Distinction in

Social Psychological Research – Conceptual, Strategic, and Statistical

Considerations”, Journal of Personality and Social Psychology, 51(6), pp. 1173–1182.

Bearden,W,R Netemeyer and J Teel(1989), “ Measurement of Consumer Susceptibility to

Interpersonal Influence”, Journal of Consumer research,15,pp.473-481.

Beatty, S.E. and Ferrell, M.E. (1998), “Impulse buying: Modelling its precursors”, Journal

of Retailing, 74 (2), pp. 169-191.

DeCoster J (2005). Scale construction notes. [online]. Available:www.stat-

help.com/notes.html. (Accessed 10 September 2008).

Han Y.K. (1987). Impulse buying behaviour of apparel purchasers. Unpublished master‟s

thesis, Colorado State University, Fort Collins.

Herrington, J.D. and Capella, L.M. (1995), “Shopping reactions to perceived time

pressure”, International Journal of Retail and Distribution Management, 23(12), pp. 13-20.

Hoch, S.J., and Loewenstein, G. F. (1991), “Time – inconsistent preferences and consumer

self-control”, Journal of Consumer research, 17(4),pp. 492-508.

Kim,J.(2003), “College Students Apparel Impulse Buying Behaviours in relation to visual

merchandising”, Thesis Submitted to the Graduate Faculty of The University of Georgia.

184

Mackinnon, D.P., Lockwood, C.M., Hoffman, J.M., West, S.G. and Sheets, V. (2002),“A

comparison of methods to test mediation and other intervening variable effects”,

Psychological Methods, Vol. 7 No. 1, pp. 83-104.

Malhotra, N.K. and Dash, S. (2009), “Marketing research: an applied orientation”, 5th

edition, Pearson Education,India,pp.372-375.

Nunnally,J.C.(1978), Psychometric theory(2nd

Ed.), New York: McGraw-Hill.

Parkinson, R. (1996),“Emotions are Social”, British Journal of Psychology, 87, pp.663-683.

Rook, D.W. & Fisher, R.J. (1995) “Trait and normative aspects of impulsive buying

behaviour”, Journal of Consumer Research, 22 (3), pp.305-13.

Rook, D.W. and Hoch, S.J. (1985),“Consuming impulses”, Advances in Consumer

Research, 12, pp.23-27.

Silayoi, P. and Speece, M.( 2004), “ Packaging and purchase decisions: An exploratory

study on the Impact of involvement level and time pressure”, British Food Journal, 106,pp.

607-628.

Sobel, M. E. (1982), “Asymptotic confidence intervals for indirect effects in structural

equation models”. Sociological Methodology, 13, pp.290–312.

Weinberg, P., and Gottwald, W. (1982) “Impulsive Consumer Buying as a Result of

emotions”, Journal of Business research, 10 (1), pp. 43-57.

Weun, S., Jones, M.A. and Beatty, S.E. (1998), “The development and validation of the

impulse buying tendency scale”, Psychological Reports, 82, pp.1123-1133.

185

Weun, S., Jones, M.A. and Beatty, S.E.(1997), “ A Parsimonious Scale to measure Impulse

Buying Tendency”, AMA Educators‟ Proceedings,8,eds.,William M. Pride and G. Tomas

M.Hult, American Marketing Association,pp.306-307.

Youn, S. & Faber, R.J. (2000), “Impulse buying: Its relation to personality traits and cues”,

Advances in Consumer Research, 27, pp.179-186.

Youn, S.H. (2000). The Dimensional structure of consumer buying impulsivity:

Measurement and validation. Unpublished Doctoral dissertation, University of Minnesota,

Minneapolis.

186

CHAPTER 6

SUMMARY, CONCLUSIONS AND

SUGGESTIONS

This chapter presents a synoptic view of the study, followed by the summary of key findings,

conclusion and suggestions. The chapter also presents the factors, which have limited the

scope of study. Based on the conclusions derived after an in-depth and comprehensive study,

inferences have been made about drivers of impulse buying and have also suggested some

strategies for the marketers so as to encourage impulse buying.

6.1 SYNOPTIC VIEW

Organized retailing is an emerging sunshine sector in India. This concept has become popular

in not only the big cities and metropolitans but is also making inroads into many semirural

areas as well, thereby, suggesting increase in the size of the Indian retail industry. In addition

to this, highly optimistic growth projections for this sector in the coming years are going to

attract huge investments, thereby suggesting massive growth opportunities. Even presently,

the organized retail market in India is estimated at US$ 26 Billion and accounts for

approximately 6% of the overall retail market (Technopak, 2011), further highlighting a

tremendous potential of growth in this sector. However, while analyzing the trends, in the

recent years, it can be said that there are various factors which have been responsible for its

growth like the introduction of FDI, urbanization, growth of nuclear families, changing

consumer behaviour, rising disposable income, rise in MPCE level, changing consumer

preferences, increasing acceptance and usage of plastic money, changing demographics and

availability of real estate. Among all these, the major factor responsible for the growth of

organized retail has been the changing consumer behaviour.

This is so due to the fact that the Indian consumer has undergone a remarkable

transformation. A few decades back, the Indian consumer saved most of his income,

purchased bare necessities and rarely indulged into unplanned shopping, whereas in the

present scenario, with increased income, availability of credit cards, exposure to the shopping

187

culture of the west and a desire to improve standard of living, the Indian consumer is

spending not only to fulfil utilitarian needs but also hedonic needs to a large extent.

Organized retail with a variety of products and multitude of malls and supermarkets is adding

fuel to the shopping addiction and this new mentality is in turn pushing the growth of

organized retail in India.

Thus, with the onset of modern retail, the Indian consumers now have more choices in terms

of products and categories to shop from. This trend is reflected in the increasing share of

categories like Personal Care, Healthcare, Jewellery and Watches, Sports and Entertainment

goods in the overall pie of Modern Retail. At the same time, retailers on their part are trying

to get maximum share of the consumers‟ wallet by offering broader product range and more

depth in the various product categories. This has not only lead to a highly competitive

scenario for the retailers but the customers are also in a dilemma due to the fact that the

decision making process has become complex due to the availability of a number of choices.

Despite the fact that decision making has become more complex in the present times, one of

the interesting phenomenons that have emerged in the Indian market is impulse buying. In

such a scenario, further complexities have emerged as the behaviour and needs of the people

are changing at a fast pace. Hence, it is important to understand that in such convolutions,

what are the reasons that stimulate the consumers to make immediate and instantaneous

purchases.

Therefore, the present study is an attempt to understand the role played by various

antecedents of impulse buying. The findings of the present study convey that retailers and

marketers should enhance the store environment with the help of attractive display of

products, introduce efficient sales promotion techniques and display attractive packaging at

the aisles in order to stimulate the consumers to engage in impulse purchase. Also, they need

to arouse consumers‟ emotions and hedonic desires.

The framework of the study includes six chapters:

In Chapter I an overview of the emerging concept of organized retail has been presented,

this is followed by the main drivers of organized retail. The concept of impulse buying has

188

been deliberated in detail in this chapter, further highlighting its role in the modern retail set

up. The chapter also presents a justification of the study in the present context.

Chapter II focuses on a detailed review of literature, which sets the academic tone for this

research. It contains the review and a comprehensive discussion of the rich and diverse

literature available in the area of impulse buying and its antecedents namely In Store Stimuli,

Situational factors, Personal factors and emotions and hedonic considerations. The different

sources which have been reviewed to build the research gap for the study are:

a. Research Papers and Articles in Journals

b. Published Books

c. Industry Reports

d. Thesis and Dissertations

e. Other Miscellaneous Articles

In Chapter III a theoretical framework for the model of impulse buying has been proposed.

The relevance of various antecedents and how they relate to impulse buying has been

discussed in detail. The various antecedents discussed in this chapter are: In- Store Stimuli

which include attractive display, sales promotion, attractive packaging, Personal Factors

which include age, gender, income, impulse buying tendency, Situational Factors which

include time, money, shopping companion, Emotions & Hedonic Considerations and

Cognition.

A detailed discussion on the research methodology has been presented in chapter IV, which

has helped in identifying the research questions. It explains the objectives and procedures of

carrying out the research. A detailed description of all the research techniques that have been

used for data collection and analysis in order to conduct the study has been deliberated in

detail in this chapter.

Chapter V is about analysis and interpretations of the results derived as a result of the

application of various relevant statistical tools and techniques to the data. The main tools

which have been used to conduct the study are: factor analysis, confirmatory factor analysis,

correlation analysis, regression analysis, Anova , T-test, Sobel test .

189

Finally Chapter VI, the last chapter of the study presents the summary of the research

findings and highlights the conclusions and suggestions emerging from the discussion.

6.2 OBJECTIVES OF THE STUDY AND THEIR ACHIEVEMENT

The study has been designed with five key research questions which have been formulated as

objectives. The following objectives have been worked out in the study.

Objective 1: To examine and analyze the role of in-store stimuli on impulse buying.

The first objective was to examine and analyze the role of in store stimuli on impulse buying.

In order to achieve this objective, regression analysis was undertaken with impulse buying as

dependent variable and in store stimuli as independent variable. The results of correlation

analysis (table 5.20) have also indicated that attractive display (dsp, r=0.458**,p<0.05),sales

promotions(sp,r=0.446**,p<0.05),packaging (pkg, r=0.368**,p<0.05) are significantly

correlated with impulse buying. Therefore, it becomes logical to regress these variables with

impulse buying.

The ANOVA table 5.21a indicates that there is a linear relationship between the dependent

and independent variable. The Adjusted R square value of 0.293(table 5.21b) has indicated

that in store stimuli explain 29.3%variation in impulse buying. The regression coefficients

(table 5.21c)have indicated that out of all the three factors namely display, sales promotion

and packaging β value for display ( 0.379) has been recorded to be the highest followed by

sales promotion (β=0.317) and packaging (β=0.226). There have been studies which have

indicated that the instore stimuli namely display (Marriri Tendai and Chipunza Crispen 2009;

Lee & Kacen 2008; Jones et al. 2003; Hoyer & MacInnis 1997; Minal et. al 2012) ,sales

promotion (Dittmar 2000; Grewal et al. 1998; Stern 1962; Hirchman,1985; Laroche et al.

2003; Inman et al. 1990; McClure & West 1969; Virvilaite et al. 2009; Millner 2002; Dr.

Tauseef Ahmad 2011) and packaging ( Usman Ghani and Yasir Kamal 2010; Astri Cahyorini

and Effy Zalfiana Rusfian 2011) have a positive impact on impulse buying.

190

Objective 2: To conduct an impact analysis of situational and personal factors on

impulse buying behaviour

The results of correlation analysis (table 5.20) indicate that situational factors are positively

correlated to impulse buying(r=0.417**,p<0.01). Also, time availability (r=0.388*,p<0.05),

money availability(r=0.277*,p<0.05) and shopping companion (r=0.226*,p<0.05) all the

correlates of situational factors have a significant positive correlation with impulse buying.

Therefore, firstly to analyze the impact of situational factors a regression analysis has been

undertaken wherein impulse buying has been the dependent variable and situational factors

as independent variable. The adjusted R square value of 0.202 (5.22b) has indicated that

situational factors cause variation to the tune of 20.2% in impulse buying.

Further analysis of table 5.22c indicates that all the components of situational factors have

positive relationship with impulse buying (β= 0.369 for time, β= 0.205 for money and β=

0.165 for shopping companion) at (p=0.000, 0.000 and 0.000) respectively. Also, the Beta

coefficient weights indicate that time has the highest impact on impulse buying followed by

money and shopping companion.

The correlation analysis (table 5.20) indicates that there is a positive correlation between the

personal factors and impulse buying (PF r=.364**, p<0.01).Further, it also indicates that the

correlation of gender(r=.048,p>0.05),age(r=.053,p>0.05),income(r=.034,p>.05) with impulse

buying although positive is not significant whereas the correlation between impulse buying

tendency(r=.364**,p<0.01) and impulse buying is both positive and significant.

The personal factors in the study include age, gender and income and impulse buying

tendency. A multiple regression analysis was undertaken to study the impact of personal

factors on impulse buying. The results of table 5.23b indicate that variation in impulse

buying to the tune of 13.3% is caused due to personal factors as the adjusted R square value

is 0.133. Further, the regression coefficient table 5.23c indicates that among the personal

factors only impulse buying tendency (β=0.364, p=0.000) exerts a positive and significant

influence on impulse buying. Age, gender and income do not exert a significant impact on

impulse buying as their p- values are 0.185, 0.220 and 0.529 respectively.

191

Objective 3: To understand emotions and hedonic considerations vis-à-vis their role in

impulse buying.

While processing the data, the direct impact of emotions and hedonism on impulse buying

has been analyzed. Tables 5.24b and 5.24c represent the results of this multiple regression

analysis. The Adjusted R square value of 0.175 (table 5.24b) has indicated that variation in

emotions and Hedonism cause a variation of around 18 percent in impulse buying. Further

the analysis of regression coefficients (table 5.24c) has also revealed that hedonism is a

significant contributor (β=0.411, p=0.000) towards increasing the impulse buying by

customers followed by emotions (β=0.048;p=0.000). Hence, any effort to induce hedonic

feeling by the retailers would result in proportionate increase in impulse buying. These

findings are in conformity with the findings of various studies (Sherman, Mathur and Smith,

1997; Dorothea Baun and Andrea Groeppel Klein, 2003; Grace Yuna Lee and Youjae Yi,

2008; Beatty and Ferrel, 1998; Hausman, 2000 ; Astrid G. Herabadi, Bas Verplanken and Ad

van Knippenberg, 2009; Chunling Yu and Mike Bastin, 2010; Kim and Eastin, 2011 ;Neda

Irani and kambiz Heidarzadeh Hanzale, 2011), which also suggest that emotions and

hedonism have an impact on impulse buying.

The results of correlation analysis indicate that there exists a positive correlation between

emotions and hedonism together (r=0.334**, p<0.01) and impulse buying. Further, it also

indicates that the correlation values calculated for emotions (r=.107**, p<0.01) and

hedonism (r=.418**, p<0.01) respectively are positive and significant which further support

the results.

Objective 4: To study the effect of cognitive processes in impulse buying.

The correlation table 5.20 indicates that there exists a positive correlation between cognition

and impulse buying (r=0.265**, p<0.01). Therefore, it becomes logical to regress cognitive

processes on impulse buying. Table 5.25b indicates that cognition (β= 0.265) is positively

correlated with impulse buying. The relationship between the two variables is of moderate

level. The Adjusted R square value of (0.069) indicates that impact of cognition on impulse

buying although significant is quite low.

192

6.3 HYPOTHESES VALIDATION

H1: In-store stimuli have influence on impulse buying.

The first hypotheses can be split up into the following three sub hypotheses:

H1a: Attractive Display has an influence on impulse buying.

H1b: Sales Promotion has an influence on impulse buying.

H1c: Attractive Packaging has an influence on impulse buying

The adjusted R square value of 0.293 from table 5.21b suggests that all three variables of in

store stimuli together exert 29.3% influence on impulse buying. Further analysis of the “F”

value from table 5.21b, clearly suggests that the calculated value of F, 97.374 is greater than

the standard value of 2.60, concluding that in store stimuli have an impact on impulse

buying. The Beta coefficients (table 5.21b) also suggests that (β=0.379,p<0.05) for attractive

display,(β=0.317,p<0.05) for sales promotion and (β=0.266,p<0.05) for attractive packaging

suggesting a positive influence on impulse buying. Therefore, all the sub hypotheses H1a,

H1b,H1c are accepted.

Hence, the first hypotheses stands ACCEPTED and VINDICATED.

H2: There is a significant impact of situational and personal factors on impulse buying.

The second hypothesis has been split into two sub -hypotheses H2a and H2b:

H2a: There is a significant impact of situational factors on impulse buying.

H2b: There is a significant impact of personal factors on impulse buying.

In order to vindicate the hypothesis H2a, it has further been split into three sub hypotheses:

H2a1: There is significant impact of time on impulse buying.

H2a2: There is significant impact of money on impulse buying.

193

H2a3: There is significant impact of companionship on impulse buying.

The R square value of 0.173(table 5.22b) has further suggested that situational factors have a

significant effect on impulse buying and that 17.3% variation in impulse buying is attributed

to situational factors namely time, money and shopping companion. Further, analysis of “F

value” from table 5.22b, 59.918 has suggested that the calculated value is greater than the

standard value of 2.60, thereby suggesting that situational factors do have an influence on

impulse buying. Moreover, Beta coefficients of time (β=0.369,p=0.000),

money(β=0.205,p=0.000) and shopping companion(β=0.165,p=0.000) (table 5.22c) also

indicate a positive relationship between the three and impulse buying, supporting the sub

hypotheses.

Further, the hypotheses H2b has also been split up into four sub hypotheses:

H2b1: Age has significant impact on impulse buying.

H2b2: Gender has significant impact on impulse buying.

H2b3: Income has significant impact on impulse buying.

H2b4: Impulse buying tendency has a significant impact on impulse buying.

The results of table 5.23b and 5.23c together point towards the fact that the variables of

personal factors namely age, gender, income and impulse buying tendency cause 13.3%

variation in impulse buying. Further, the analysis of “F” value from table 5.23b, 27.816 also

suggest that this value is greater than the standard value of 2.37, pointing towards the fact

thus suggests that personal factors have a significant influence on impulse buying. Also, the

regression coefficients table 5.23c indicates that among the personal factors only impulse

buying tendency (β=0.364, p=0.000) exerts a positive and significant influence on impulse

buying. Age, gender and income do not exert a significant impact on impulse buying as their

p- values of 0.185, 0.220 and 0.529 respectively are greater than the standard value of 0.05.

Therefore, only hypotheses H2b4 is accepted whereas H2b1, H2b2, H2b3 are rejected.

H3: Emotions and hedonic considerations enhance the impulse buying behaviour.

194

The Adjusted R square value of 0.175 (table 5.24b) indicates that variation in Emotions and

Hedonism cause a variation of around 18 percent in impulse buying. The “F” value 75.09

which is greater than the standard value of 3.00, also confirms that emotions and hedonism

together have a significant impact on impulse buying. Further the analysis of regression

coefficients (table 5.24c) reveal that hedonism (β=0.411, p=0.000) is a significant contributor

towards increasing the impulse buying. However the impact of emotions (β=0.048;p=0.000)

is quite low but is significant.

Hence, H3 is ACCEPTED and VINDICATED.

H4: Cognitive processes have an impact on impulse buying.

The adjusted R square value of 0.069 from (table5.25b) means that cognition causes only 7%

variation in impulse buying. Table 5.25c indicates that the β coefficient value is 0.265

signifying a positive relationship with impulse buying. Also, the “F” value is 52.858 from

table 5.25b is greater than the standard value of 3.84 thus indicating the relationship between

cognition and impulse buying to be significant.

Hence, H4 is ACCEPTED and VINDICATED.

6.4 ANALYSIS OF IMPULSE BUYING TENDENCY WITH DEMOGRAPHIC

FACTORS

Impulse Buying Tendency as a factor was found to have a significant positive influence on

impulse buying. The results have suggested that it is one of the critical factor among the

personal factors. Therefore, to understand and strategize the impulse buying phenomenon in

organized retailing, an in depth analysis was undertaken using ANOVA and independent t

test. The results of tables 5.26a and 5.27b have indicated that the mean value for females is

5.26 which is greater than males and the relationship is significant (p<0.05). This means that

females have more impulse buying tendency. The significance column (p-values) from table

5.27 has revealed that there is significant variation between groups in terms of age and

income groups; hence the application of Post hoc test would help in identifying the

homogeneous subsets of age and income groups.

195

After the determination from ANOVA table that differences do exist among the means,

Tukey‟s honestly significant difference (Tukey‟s HSD) test which is a post hoc test was used

to determine which means differ. Table 5.28 clearly indicated that impulse buying tendency

is similar in age groups less than 20, 21-30 and 31-40 and is higher than in 41-50 and above

50 age groups. Further, it has also been indicated that it is highest in the age group 21-30.

Result of the analysis of variance from table 5.27 has revealed that there is significant

variation between groups in terms of income groups. Further, from the table 5.29 it can be

interpreted that customers in the income group above10 lac have the highest impulse buying

tendency.

Therefore, the result of this analysis implies that females with annual household income

above 10 lac in the age group of 21-30 have the highest impulse buying tendency and the

marketer should develop strategies keeping in mind such particular demographics.

6.5 MEDIATION EFFECT OF EMOTIONS AND HEDONISM

Emotions are positive and negative and they play a role in consumption behaviour. However,

it has been a matter of debate for researchers that which of the emotions i.e. positive or

negative have a stronger effect. The present study, while analyzing emotions has concluded

that they have very less direct impact on impulse buying behaviour. Along with emotions,

hedonism plays an important role in stimulating impulse buying. Research has led to the

widespread acceptance that impulse buying behaviour is a result of emotional and hedonic

motivations (Babin et.al, 1994). The detailed review of literature has also revealed that

emotions and hedonism sometimes play a mediating role between the store environment and

impulse buying. Therefore, the mediation analysis was also performed to understand their

role in a realistic manner.

In this context, Baron and Kenny‟s linear equation method (1986) and Sobel test (Sobel,

1982) were applied to see the mediation effect of emotions and hedonism on in store stimuli,

its various dimensions and impulse buying.

196

In store stimuli--- Emotions--- Impulse Buying

The analysis was undertaken to see whether there exists any mediating effect of emotions on

in store stimuli and impulse buying in a series of steps as proposed by Baron and Kenny‟s

method. It can be seen from table 5.26 and table 5.28 that the Beta coefficient for in store

Stimuli Impulse buying reduced from 0.519 to 0.517 when emotions were added to the

regression, suggesting that emotions may be exerting a partial mediating effect. Further, the

results of Sobel test have indicated that emotions (state - trait) do not significantly mediates

the relationship between in store stimuli and Impulse Buying.

Further, to identify the relevant variables among in store stimuli for enhancing impulse

buying, the mediation test was further applied to individual variables of in store stimuli

namely Display, Sales promotion and packaging.

Display--- Emotions----- Impulse Purchases

In the present study, it has been concluded that display attracts consumers and is one of the

important stimulus that encourages impulse buying. Therefore, after analyzing the direct

impact, emotions as a mediator were added to enhance the impulse buying among

consumers.

It can be seen from table 5.21c and table 5.32 that the Beta coefficient for Display Impulse

buying decreases from 0.379 to 0.361 when emotions were added to the regression,

suggesting that emotions may have a partial mediating effect. Further, the results of Sobel

test indicate that emotions do not mediate the relationship between display and impulse

purchase.

Sales Promotion---emotions----Impulse buying

Similarly, it was seen whether emotions mediate the relationship between sales promotion

and impulse buying. It can be seen from table 5.21c and table 5.32 that the Beta coefficient

for Sales Promotion Impulse buying have increased from 0.317 to 0.452 when emotions

were added to the regression, suggesting that emotions do not exert a mediating effect.

197

Packaging --- Emotions ----- Impulse buying

Another analysis was undertaken to examine the mediating role of emotions between

packaging and sales promotion. It can be seen from table 5.21c and table 5.34 that the Beta

coefficient for Sales Promotion Impulse buying increased from 0.226 to .443 when

emotions were added to the regression, suggesting that emotions do not exert a mediating

effect.

The results have suggested that emotions do not have any mediating effect on in store

stimuli, its correlates and Impulse buying.

After analyzing the role of emotions as a mediator, the mediating role of hedonism was also

examined between the in store stimuli, its various dimensions and impulse buying.

In store stimuli-----Hedonism------Impulse Buying

Again, using the Baron and Kenny‟s method the mediating role of hedonism was checked

between in store stimuli and impulse buying. It can be seen from table 5.26 and table 5.36

that the regression coefficient for In store Stimuli Impulse buying decreases from 0.519

to .415 when hedonism is added to the regression, suggesting that hedonism may exert a

partial mediating effect. Application of the Sobel approximate formula to these

unstandardized coefficient and standard error values yields the statistic Z = 4.57, p = 0.000.

So, according to this mediation analysis, it is confirmed that Hedonism (state - trait)

significantly mediates the relationship between In store stimuli and Impulse Buying. This

confirms our earlier partial correlation analysis of the same data. In other words, there is

evidence of mediation.

After examining the mediating role of hedonism between in store stimuli and impulse buying

the mediating role of hedonism was also examined between the correlates of in store stimuli

namely display, sales promotion, packaging and impulse buying.

Display----Hedonism----Impulse buying

It can be seen from table 5.21c and table 5.38 that the regression coefficient for Display

Impulse buying decreases from 0.379 to 0.229 when hedonism is added to the regression,

198

suggesting that hedonism may exert a partial mediating effect. Application of the Sobel

approximate formula to these unstandardized coefficient and standard error values yields the

statistic Z = 7.13, p = 0.000. So, according to this mediation analysis, it is confirmed that

Hedonism (state - trait) significantly mediates the relationship between Display and Impulse

Buying. This confirms our earlier partial correlation analysis of the same data.

Sales Promotion------Hedonism------Impulse buying

It can be seen from table 5.21c and table 5.40 that the regression coefficient for Display

Impulse buying increases from 0.317 to 0.332 when hedonism is added to the regression,

suggesting that hedonism does not exert a mediating effect.

Packaging------Hedonism-----Impulse Buying

It can be seen from table 5.21c and table 5.42 that the regression coefficient for Display

Impulse buying increases from 0.226 to 0.312 when hedonism is added to the regression,

suggesting that hedonism does not exert a partial mediating effect.

In store Stimuli----- Emotions + Hedonism--- Impulse Buying

It can be seen from table 5.26 and table 5.44 that the regression coefficient for in store

Stimuli Impulse buying decreases from 0.519 to 0.466 when emotions +hedonism were

added to the regression, suggesting that hedonism may exert a partial mediating effect.

Application of the Sobel approximate formula to these unstandardized coefficient and

standard error values yields the statistic Z =2.906, p = 0.003. So, according to this mediation

analysis, it is confirmed that Emotions+Hedonism (state - trait) significantly mediate the

relationship between in store Stimuli and Impulse Buying. This confirms our earlier partial

correlation analysis of the same data.

However, when the in store stimuli have been analyzed as a variable the results have

suggested that emotions and hedonism together mediate the relationship between in store

stimuli and impulse buying. This further highlights the relevance of such in store stimuli,

which may enhance the emotion and hedonism among consumers and motivate them to go

for unplanned purchases.

199

6.6 CONCLUSIONS AND SUGGESTIONS

The purpose of this study has been to analyze the role of various antecedents of impulse

buying in the organized retail sector. Further, in the recent times, emotions have emerged as a

key variable having an impact on the consumption behaviour. Therefore, the study has also

tried to examine the mediating role of emotions and hedonism. Analysis of the results have

led to the conclusion that there are various factors which affect impulse buying in the

organized retail and in order to maximize the impulse sales , they have the potential to act as

the key drivers.

Since the study undertaken is customer centric and it has focused on the customer

psychology that drives him towards impulse purchases. Therefore, the main objectives of this

research has focused upon analyzing the impact of various antecedents on impulse buying

like in store stimuli, situational, personal , emotions, hedonism and cognition on impulse

buying and suggest a theoretical framework thereof, on the basis of results.

The data analysis has indicated that impulse buying in the organized retail sector has a

significant role. It has been found that in store stimuli encompass a very critical factor that

leads to impulse buying and among them the most important stimulus is sales promotion

followed by attractive display and packaging. Therefore, retailers and marketers should focus

their attention on improving the store environment to induce people to make an impulse

purchase and introduce efficient sales promotion techniques.

Also, among the situational factors, all the three dimensions time availability, money

availability and shopping companion have emerged as an important influence on impulse

buying. This implies that it is in the interest of the retailers to manage their merchandise in

such a manner that within the time pressure the customer is able to make maximum

purchases. It has also been observed that the mode of payment is also very critical and the

payment option of credit card, debit card payments also enhances impulse buying.

Furthermore, the concept of 24 hour retailing if introduced has a potential to provide an

opportunity to the consumers, as the effect of time constraints would not adversely affect the

impulse buying phenomenon.

200

Analysis of the personal factors has indicated that age, gender and income have no impact

on the impulse buying behaviour of consumers. Only the impact of impulse buying tendency

is significant. Further, the in depth analysis of demographic factors in consonance with

impulse buying tendency has lead to the conclusion that impulse buying tendency is higher

in females in the age group of 21-30, having annual household income of above 10 lac.

Therefore, marketers should devise strategies keeping in mind this particular target group for

encouraging impulse buying.

In addition to the in store stimuli, situational and personal factors, the results of the analysis

have also revealed that psychological factors like emotions, hedonism and cognitions also

play a role in impulse buying although less. It has been observed that people indulge in

impulse buying to satisfy their hedonic desires. The results above indicate that emotions do

not mediate the relationship between in store stimuli, its correlates and impulse buying.

However, hedonism mediates the relationship between in store stimuli, its correlates and

impulse buying. Also, emotions and hedonism when combined have a mediating role

between in store stimuli and impulse buying. Therefore, the present study implies that the

marketers should try to manage the in store stimuli in such a manner that the hedonic desires

and emotions of the customers are satisfied in totality with larger focus on the hedonic

component.

6.7 RESEARCH CONTRIBUTION

There has been extensive research on impulse buying phenomenon in the past. Most of the

studies on impulse buying have tried to build an understanding about the concept of impulse

buying, examining the influence of affect and cognition, the role of situational factors, the

role of store stimuli etc. individually. However, there has been no study which has examined

the overall comprehensive framework both theoretically as well as empirically. It is also

pertinent to mention that most of the frameworks of impulse buying have been tested in the

online environment. Furthermore, various studies which are mentioned have been conducted

in the Western context. Therefore, this study being more elaborate and comprehensive in the

Indian context would help understand the behavioural dimensions of consumers. This

understanding if managed efficiently has the potential to contribute significantly towards the

201

growth of organized retail sector. Further, it holds greater relevance in the present era when

the stage for organized retail has been already set with the introduction of 100% FDI in India.

This study also creates awareness and understanding of the changing consumers‟

consumption patterns and the critical factors which have an impact on impulse buying.

Besides, it would add to the literature on impulse buying in the field of marketing

psychology.

6.8 MANAGERIAL IMPLICATIONS

Results of this study suggest that highly stimulating and pleasant store environments lead to

enhanced impulse buying. The positive effect of a highly exciting store environment on

unplanned purchases is consistent with research in psychology suggesting that high arousal

lessens people‟s self regulation (Baumeister et al., 1998; Baumeister, 2002). High arousal

also tends to reduce people‟s ability to think through their actions (Leith and Baumeister,

1996; Tice et al., 2001). Hence, it is not surprising that store excitement can influence

consumers‟ spending patterns. Interestingly, familiarity with the store has a positive impact

on impulse buying, thereby suggesting that frequent buyers might be more prone to

unplanned purchases. A highly unfamiliar environment, on the other hand, might make

people more cautious of their actions, inducing higher levels of self-control than familiar

stores.

Further, these results indicate several implications for the industry as a whole. Firstly,

retailers should constantly work on creating a positive shopping environment. It is so because

atmosphere is the key in attracting and keeping consumers excited about the shopping

experience. Attractive décor with creative merchandising and showmanship of retailers tends

to create a marketing phenomenon. Appropriate lighting, music and aromas enhance mood

and emotion, which may trigger shoppers' affective tendencies to tip the balance beam

towards an impulsive direction.

Secondly, in-store displays and promotions, including advertisement of sales are effective in-

store communications. In-store stimuli are important influences of impulsive buying; more

successful is the degree of in-store stimuli, greater is the tendency to attract the attention of

the potential customers leading to greater likeliness of a decision to purchase without visiting

202

additional stores. Various marketing strategies need to be considered related to distribution

and promotions of products such as friendly and educated sales associates and well created

and interesting displays. Together they enhance cognitive states by increasing information

processing and assisting with deliberation, leading to less remorse after the purchase as well

as an increase in browsing time, directly increasing sales.

In addition impulsivity is closely linked to availability. Some items are more impulsive items

than others, merchandising these items in highly visible locations tends to increase

frequency of impulse purchases, for example, the presence of magazines at checkout stands

where high volume traffic is present increases the awareness of items and adds an

entertainment element to shopping.

Fourthly, store environment and time pressure are related factors contributing to impulse

buying. Creating wider aisles and effective information displays have the potential to take

care of the time pressures that exist in informational searches. Lesser pressure of time

decreases stress of shopping, directly increasing positive mood. It has been previously

established that positive mood has a direct positive influence on buying. Accordingly,

available time has a positive influence on in-store browsing. The retailers therefore might

attempt to influence the time available to the consumers in the store and thus make shopping

more efficient. This can be accomplished by aiding the shoppers in finding their planned

items more quickly.

Further, retailers have an opportunity to increase the level of temptation by removing

barriers. Presenting availability of credit, automatic teller machines, 24-hour retailing, price

and money back guarantees help in creating temptations thereby increasing impulse buying.

Also by providing easy credit lines or discounts tied to opening a charge card, retailers are

able to increase shoppers feeling of money availability. Further, retailers may also predict

increased profit, when they introduce sales events on paydays or tax return periods.

Lastly, retailers need to work on identifying and profiling their target market. Concentrating

primarily on the consumers who are most likely to purchase from their establishment is

extremely beneficial. This would help in effective time management, as lesser time is wasted

on those consumers who are least likely to be a part of their target market. By identifying

203

their target market, retailers may develop a thorough understanding of the needs of their

target market and further promote the products most likely to be sold in their stores. This

would also help the retailers in better identification of the more impulsive items.

Merchandising these items in the storefront windows, in the store aisles, by placing signage

to draw attention, or even placing them on sale can encourage selling these items more

efficiently. Drawing attention to impulse items and those items most likely wanted and

needed by the target market contribute largely to increased sales. Besides this, retailers

should also stress upon the quality of merchandise, variety of merchandise, and store décor

while attempting to attract and maintain patrons‟ attention.

6.9 RECOMMENDATIONS FOR FUTURE RESEARCH

The study although very comprehensive in nature does have implications for future studies

which are as follows:

Multiple measurement methods are needed for justifiability of the variety and intricacy of

consumer behaviour (e.g., participant observation, interviews, scenarios, protocols, etc.). An

optimal approach is to track the consumer over time in order to examine how, when, and

why. A panel study may also be another approach for conducting such research. In addition,

the sample can be expanded to include other geographical regions, as the organized retail is

growing in all parts of the country and can examine its impact on other cultures which can be

another area of topical interest.

The present research can be expanded to include demographic subcultures, social classes and

lifestyle factors as well in the personal factors. Future research might also explore impulse

buying within television, internet, telemarketing, direct mail shopping, and other non-store

formats. It would be useful to investigate in detail how various marketing factors (e.g., credit

cards, 24-hour retailing) affect impulse buying and which one has the strongest influence.

Future research may examine predictive dimensions which best differentiate impulsive

buyers from other consumers and also explore at what point impulse buying becomes

compulsive. Another interesting consideration for research would be to investigate how

204

impulse buyers justify their behaviour and at the same time, another issue that needs attention

is how consumers resist their consumption urges.

6.10 LIMITATIONS OF THE STUDY

All possible efforts were made to maintain objectivity; validity and reliability of the study yet

there are certain limitations. These are discussed as under:

1. Data collection using survey technique may have included errors. Although great care

was taken to ensure that respondents understood the statements in the questionnaire

exactly as the researcher desired them to be understood. However, errors due to

misunderstanding or simple data entry cannot be ruled out.

2. This study has been conducted by using convenience sampling and the sampling area

is restricted to Delhi, Noida and Gurgaon. However, other areas may have been

included to improve the study.

3. Data was collected over a short period of time.

205

References

Ahmad, T. (2011), “The Impulse Buying Behaviour of Consumes For The FMCG Products

In Jodhpur”, Australian Journal of Basic and Applied Sciences, 5(11), pp. 1704-1710.

Babin, B. J., Darden, W. R., and Mitch, G., (1994), “Work and/or fun: Measuring hedonic

and utilitarian shopping”, Journal of Consumer Research, 20(4), pp. 644-656

Baron, R. M. and Kenny, D. A. (1986), “The Moderator-Mediator Variable Distinction in

Social Psychological Research conceptual, Strategic, and Statistical Considerations”, Journal

of Personality and Social Psychology, 51(6), pp.1173–1182.

Baumeister, R. (2002), “Yielding to temptation: Self control failure, impulsive purchasing

and consumer behaviour”, Journal of Consumer research, 28(4), pp.670-676.

Baumeister, R., Bratslavsky, E., Muraven, M. and Tice, D. (1998), “Ego Depletion is the

active self a limited resource”, Journal of Personality and Social Psychology, 74(5), pp.

1252-1265.

Baun D., and Klein A. G. (2003), “Joy and surprise as guides to a better understanding of

Impulse buying behaviour”, European Advances in Consumer research, 6, pp.290-299

Beatty, S.E. and Ferrell, M.E. (1998), “Impulse Buying: Modelling its Precursors”, Journal

of Retailing, 74(2), pp.169-191.

Cahyorini, A. and Rusfian, E.Z.(2011), “The Effect of Packaging Design on Impulsive

Buying”, Journal of Administrative Science and Organization, pp. 11-21.

Dittmar, H. (2000), “The role of self-image in excessive buying”, in A. Benson (Ed.), I shop,

therefore, I am , Northvale, NJ: Jason Aronson Inc(pp. 105–132).

Ghani U. and Kamal Y. (2010), “The Impact of In-Store Stimuli on the Impulse Purchase

Behavior of Consumers in Pakistan”, Interdisciplinary Journal of Contemporary Research in

Business, 2(8), pp.155-162.

206

Grewal, D., Krishnan, R., baker, J. and Borin, N. (1998),“The effect of store name, brand

name and price discounts on consumer evaluations and purchase intentions”, Journal of

Retailing,74(3), pp. 331- 52.

Hausman, A. (2000), “A multi-method investigation of consumer motivations in impulse

buying behaviour”, Journal of Consumer Marketing, 17(5), pp. 403-417.

Herabadi,A.G. ,Verplanken,B. and Knippenberg ,A. (2009), “Consumption experience of

impulse buying in Indonesia: Emotional arousal and hedonistic considerations”, Asian

Journal of Social Psychology, 12, pp. 20–31.

Hirschman, Albert. (1985), “Reflections on the Latin American Experience”, in Leon

Lindberg and Charles S. Maier (eds.) The Politics of Inflation and Economic Stagnation,

Washington, DC: the Brookings Institution, pp. 53-77.

Hoyer, W T and MacInnis, D (1997), Consumer Behaviour, Houghton Mifflin, Boston MA.

Inman, J.J., McAlister, L. and Hoyer, W.D. (1990), “Promotion signal: Proxy for a price

cut”, Journal of Consumer Research, Vol. 17 No. 1, pp. 74-81.

Irani, N. and Hanzaee, K.H. (2011), “The Mediating Role of Hedonic value in Apparel

Shopping satisfaction”, World Applied Sciences Journal, 12(10), 1715-1729

Jones, M. A., Reynolds, K.E., Weun, S. and Beatty, S.E. (2003), “The product-specific

nature of impulse buying tendency”, Journal of Business Research, 56 (7), pp.505-511

Kim, S. and Eastin, M. (2011), “Hedonic tendencies and the online consumer: an

investigation of the online shopping process”, Journal of Internet Commerce, 10, pp. 68-90.

Laroche, M., Papadopoulos, N., Heslop, L. and Bergeron, J. (2003), “Effects of sub

cultural differences on country and product evaluations”, Journal of Consumer Behaviour,

2(3), pp.232-247.

207

Lee G. Y., and Yi Y. (2008), “The Effect of Shopping Emotions and Perceived Risk on

Impulsive Buying: The Moderating Role of Buying Impulsiveness Trait”, Seoul Journal of

Business, 14 (2), pp.67-92

Lee, J.A. and Kacen, J.J. (2008), “Cultural Influences on Consumer Satisfaction with

Impulse and Planned Purchase Decisions”, Journal of Business Research, Vol.61, pp.265-

272.

Leith, K. and Baumeister, R. (1996), “Why do bad moods increase self-defeating

behaviour? Emotion, risk taking and self regulation”, Journal of Personality and Social

Psychology, 71, pp.1250-1267.

McClure, P.J. and West, E.J. (1969), “Sales effects of a new counter display”, Journal of

Advertising Research, 9(1), pp. 29-34.

Millner, I. (2002a),“Burying the Myth of Impulse Buying”, Brand Strategy,

September(163),p.38.

Minal, S., Sanjay, G., and Shrivastava Urvashi, S. (2012), “Effect Of Emerging Trends In

Retail Sector On Impulse Buying Behaviour-With Reference To Chhattisgarh Region”,

International Journal of Engineering and Management Sciences, 3(2), pp.142-145.

Sherman, Elaine, Mathur, A. and Smith, R.B. (1997), “Store Environment and Consumer

Purchase Behaviour: Mediating Role of Consumer Emotions”, Psychology and Marketing,

14 (4), pp.361-378.

Sobel, M. E. (1982), “Asymptotic confidence intervals for indirect effects in structural

equation models”. Sociological Methodology, 13, pp.290–312.

Stern,H. (1962), “The Significance of Impulse Buying Today”, Journal of Marketing, 26(2),

pp.59-62.

Technopak (2011) “Emerging trends in Indian Retail and Consumer” retrieved from

http://www.lemoci.com/media/distributioninde2011.pdf

208

Tendai M. and Crispen C. (2009), “In- store shopping environment and Impulsive buying”,

African Journal of Marketing Management, 1(4), pp.102-108.

Tice, D., Bratslavasky, E. and Baumeister, R. (2001), “Emotional distress regulation takes

precedence over impulse control: if you feel bad, do it”, Journal of Personality and Social

Psychology, 80(1), pp.53-67.

Virvilaite R., Saladiene V., and Bagdonaite R. (2009), “Peculiarities of Impulsive

Purchasing in the Market of Consumer Goods”, Inzinerine Ekonomika-Engineering

Economics (2), pp.1392-2785.

Yu, C. and Bastin, M. (2010), “Hedonic shopping value and impulse buying behaviour in

transitional economies: A symbiosis in the Mainland China marketplace”, Journal of Brand

Management, 18, pp.105-114.

209

BIBLIOGRAPHY

A.T. Kearney (2010). “Expanding Opportunities for Global retailers” retrieved January 12,

2012 from http://www.atkearney.com/documents/10192/c00fc581-e576-4186-a18f-

4eaa6defa84b

Abrahams, Ben (1997, March 27), “It‟s All in the Mind”, Marketing, pp.31-33.

Abratt, R. and Goodey, D. S. (1990), “Unplanned Buying and In-store Stimuli in

Supermarkets”, Managerial and Decision Economics, 11(2), pp.111-122.

Adelaar, T., Chang, S., Lancendorfer, K. M., Lee, B. and Morimoto, M. (2003), “Effects

of Media Formats on Emotions and Impulse Buying Intent”, Journal of Information

Technology, 18, pp.247-266.

Ahmad, T. (2011), “The Impulse Buying Behaviour of Consumes For The FMCG Products

In Jodhpur”, Australian Journal of Basic and Applied Sciences, 5(11), pp. 1704-1710.

Alagoz, S.B. and Ekici, N. (2011), “Impulse Purchasing as a Purchasing Behaviour and

Research on Karaman”, International Research Journal of Finance and Economics, 66,

pp.172-180.

Anić, I., Radas, S. (2006a), “The impact of situational factors on purchasing outcomes in

the Croatian hypermarket retailer”, Ekonomski pregled, 57(11), pp.730-752.

Argo, J. J., Darren W. D., and Manchanda, R.V. (2005), “The Influence of a Mere Social

presence in a Retail Context”, Journal of Consumer Research, 32(2),pp. 207.

Arnold, M. J. and Reynolds, K. E. (2003), “Hedonic Shopping Motivation”, Journal of

Retailing, 79(2), pp. 77-95.

Aylott, R., and Mitchell, V. (1998), “An exploratory study of grocery shopping stressors”,

International Journal of Retail and Distribution Management, 26(9), pp. 362-373.

210

Baba,S. and Fedorikhin,A. (1999), “Heart and Mind in Conflict: The Interplay of Affect

and Cognition in Consumer Decision Making”, Journal of Consumer Research, 26

(December),pp. 278-292.

Babin, B. J., Darden, W. R., and Babin, L. A. (1998), “Negative emotions in marketing

research: Affect or artifact?”, Journal of Business Research, Vol.42, pp.271-285.

Babin, B. J., Darden, W. R., and Griffin, M. (1994), “Work and/or fun: Measuring hedonic

and utilitarian shopping value”, Journal of Consumer Research, 20(4), pp.644-656.

Bagozii, R., Gurhan Canli , Z. and Priester , J.(2002) The Social Psychology of Consumer

Behavior .1st ed., Open University Press.

Bagozzi, R.P., Gopinath M.and Nyer P.U. (1999), “The Role of Emotions in Marketing”,

Journal of the Academy of Marketing Science, 27(2), pp.184-206.

Banarjee,S.and Saha,S.(2012),“Impulse Buying Behaviour in Retail stores-Triggering the

senses”, Asia Pacific Journal of Marketing and Management Review, 1(2),pp.1-21.

Baron, R. M. and Kenny, D. A. (1986), “The Moderator-Mediator Variable Distinction in

Social Psychological Research – Conceptual, Strategic, and Statistical

Considerations”, Journal of Personality and Social Psychology, 51(6), pp. 1173–1182.

Bar-Tal, Y., Cohen-Mansfield. and Golander, H.(1998), “Which Stress Matters? The

Examination of Temporal Aspects of Stress”, The Journal of Psychology, 132 (5), pp. 569-

576.

Batra, R. (1986). Affective advertising: Role, processes, and measurement. In R. A.

Peterson, W. D. Hoyer, & W. R. Wilson The role of affect in consumer behaviour: Emerging

theories and applications. Toronto: Lexington Books.

Baumeister, R. (2002), “Yielding to temptation: Self control failure, impulsive purchasing

and consumer behaviour”, Journal of Consumer research, 28(4), pp.670-676.

211

Baumeister, R., Bratslavsky, E., Muraven, M. and Tice, D. (1998), “Ego Depletion is the

active self a limited resource”, Journal of Personality and Social Psychology, 74(5), pp.

1252-1265.

Baun D., and Klein A. G. (2003), “Joy and surprise as guides to a better understanding of

Impulse buying behaviour”, European Advances in Consumer research, 6, pp.290-299.

Bayley, G., and Nancarrow C. (1998), “Impulse purchasing: a qualitative exploration of the

phenomenon”, Qualitative Market Research: An International Journal, 1(2), pp. 99-114.

Bearden,W,R Netemeyer and J Teel(1989), “ Measurement of Consumer Susceptibility to

Interpersonal Influence”, Journal of Consumer research,15,pp.473-481.

Beatty, S., Ferrell, E. (1998), “Impulse Buying: Modelling Its Precursors”, Journal of

Retailing, 74(2), pp.169-191.

Beatty, S.E. and Smith, S.M. (1987), “External search efforts: an investigation across

several product categories”, Journal of Consumer Research, Vol.14, pp. 83-95.

Belch, G.E. and Belch, M.A. (1995), “Introduction to advertising and promotion: An

integrated marketing communication perspective”, in Richard D. Irwin Inc., 3rd

Ed.,

Chicago, IL, USA.

Bellenger, D., Robertson D. H., and Hirschman E. C. (1978), “Impulse Buying Varies by

Product”, Journal of Advertising Research, Vol.18 (December), pp. 15–18.

Bengtsson, D. (2007), “Impulsive shopping decisions- can they be predicted?” retrieved

October 5, 2011 from http://www.essays.se/about/thesis+on+impulse+buying/

Bettman, James R. (1979), An information Processing theory of Consumer choice, Reading

M.A : Addison Wesley.

Bitner, M.J. (1992), “Services capes: the impact of physical surroundings on customers and

employees”, Journal of Marketing, 56, pp.57–71.

212

Blair, E. A. and London, L. (1981), “The Effects of Preference Price in Retail

Advertisements”, Journal of Marketing, 45(2), pp. 83-93.

Blattberg, Robert C., and Scott A. Neslin (1990), Sales Promotion: Concepts, Methods,

and Strategies, Englewood Cliffs, NJ: Prentice-Hall.

Burroughs, J.A. (1996), “Product Symbolism, Self meaning, and holistic matching: The role

of Information Processing in impulsive buying”, Advances in Consumer Research, 23,pp.

463-469.

Business Line August, May 11, 2010 retrieved January, 11, 2012 from

http://www.thehindubusinessline.com/industry-and-economy/banking/value-of-credit-card-

transactions-rises-29-in-august/article2526188.ece

Cahyorini, A. and Rusfian, E.Z.(2011), “The Effect of Packaging Design on Impulsive

Buying”, Journal of Administrative Science and Organization, pp. 11-21.

Chatzidakis, A., Smith, A., Hibbert, S.(2009), “Do I need it, do I, do I really need this?:

Exploring the Role of Rationalization in Impulse Buying Episodes”, Advances in Consumer

Research, Vol.36, pp. 248-253.

Chavosh,A. , Halimi,A.B. Namdar, J., Choshalyc, S.H. and Abbaspour, B.(2011), “The

Contribution of product and consumer characteristics to Consumer‟s Impulse Purchasing

Behaviour in Singapore”, Proceedings of 2011 International Conference on Social Science

and Humanity, Vol. 1, pp. 248-252, 2011.

Chevalier M. (1975), “Increase in sales due to in-store display”, Journal of Marketing

Research, 12, pp.426-431.

Cinjarevic, M., Tatic, K. and Petric, S. (2011), “See it, like it, buy it! Hedonic Shopping

motivations and Impulse buying”, Journal of Economics and Business, 9(1), pp. 3-15.

Clover, V. T. (1950), “Relative Importance of Impulse Buying in Retail Stores”, Journal of

Marketing, 25, pp.66–70.

213

Cobb, C. J. and Hoyer W. D. (1986), “Planned Versus Impulse Purchase Behaviour”,

Journal of Retailing, Vol.62 (Winter), pp. 67–81.

Cohen, J. B., and Areni, C. S. (1991) Affect and Consumer Behaviour. In T. S. Robertson &

H. H. Kassarjian (Eds.), Handbook of Consumer Behaviour (pp. 188-240). Englewood Cliffs,

NJ: Prentice Hall.

Coley A., and Burgess B. (2003), “Gender Differences in Cognitive and affective Impulse

Buying”, Journal of Fashion Marketing and Management, 7 (3), pp.282-295.

Coley, A.L. (2002),“Affective and Cognitive processes involved in Impulse Buying”,

Thesis,Masters of Science, University of Georgia.

Croston,G.,“Attractive Displays attract Customers”, retrieved from

http://www.gjplastics.co.uk/PDF-files/Attractive%20displays%20Attract%20Customers.pdf

Darden, W.R., Erdem, O. and Darden, D.K. (1983) , “A comparison and test of three

causal models of patronage intentions”, in Darden, W.R. and Lusc, R.F. (Eds), Patronage

Behaviour and Retail Management, North-Holland, New York, NY, pp. 29-43.

DeCoster J (2005). Scale construction notes. [online]. Available:www.stat-

help.com/notes.html. (Accessed 10 September 2008).

Desmet, P., and Renaudin, V. (1998), “Estimation of product category sales responsiveness

to allocated shelf space”, International Journal of Research in Marketing, 15(5), pp.443-457.

Dhar, Mainak. (2007), Brand Management, Singapore: John Wiley & Sons.

Dholakia U.M. (2000), “Temptation and Resistance: An Integrated Model of Consumption

Impulse Formation and Enactment”, Psychology and Marketing, 17(11), pp. 955-982.

Diamond, J. and Diamond, E. (1996), Fashion advertising and promotion, Albany, New

York: Delmar.

Dittmar, H. (2000), “The role of self-image in excessive buying”, in A. Benson (Ed.), I shop,

therefore, I am ,Northvale, NJ: Jason Aronson Inc(pp. 105–132).

214

Dittmar, H., and Beattie, J. (1998). Impulsive and excessive buying behaviour. In P.

Taylor-Gooby, Choice and public policy: Limits of welfare markets (pp. 123±144). London:

Macmillan.

Dittmar, H., and Drury, J. (2000), “Self-image – Is it in the bag? A qualitative comparison

between “ordinary” and “excessive” consumers”, Journal of Economic Psychology, 21(2),

pp.109-142.

Dittmar, H., Beattie, J., and Friese, S. (1996), “Objects, decision considerations and self-

images in men‟s and women‟s impulse purchases”, Acta Psychologica, 93(1-3), pp. 187-206.

Dittmar, H., Beattie, J., Friese, S., (1995), “Gender identity and material symbols: Objects

and decision considerations in impulse purchases”, Journal of Economic Psychology, 16, pp.

491-511.

Donovan, R.J. and Rossiter, J.R. (1982), "Store atmosphere: An environmental psychology

approach”, Journal of Retailing, Vol. 58(Spring), pp. 34-57.

Dun and Bradstreet, 2008 retrieved May 15, 2012 from http:// www.dnb.co.in

Duncan, Tom. (2005), Principles of Advertising & IMC (2nd ed.), New York : Mc Graw

Hill.

Edelweiss Report (2008) retrieved May 20, 2011 from

http://www.indianrealtynews.com/page/5?s=birla

Emerging Pattern of Urbanization in India retrieved April 7, 2013 from

http://www.scribd.com/doc/63436279/Emerging-Pattern-of-ion-in-India

Engel J.F., Blackwell, R.D., and Miniard P.W. (1993), Consumer Behaviour (8th Ed.),

Fort Worth: Dryden Press.

Engel, J. F., and Blackwell, R. D. (1982), Consumer behaviour (4th ed.). Hinsdale, IL:

Dryden Press.

Engel, J.F., Kollat, D.T., and Blackwell, R.D. (1978), Consumer Behaviour, New York:

Holt, Rinehart and Winston.

215

Ernst and Young (January, 2000), “Global online retailing report”. Available from http://

www.heltrun .aueb.gr

Ernst and Young Research (2009) report retrieved February 8, 2012 from:

http://www.ey.com/IN/en/Industries/India-sectors/Retail---Wholesale/Retail_Library

Esch, Rudolf, F., Redler, J. and Langer, T. (2003), „Effects of product category, brand

strength, and visual presentation formation of the efficiency of display promotion‟, in

ANZMAC Conference proceedings, adelaide (december), pp. 1831–1837.

Eysenck, S.B.G. and Eysenck, H.J. (1978), “Impulsiveness and venturesomeness: Their

position in a dimensional system of personality description”, Psychological reports,43,

pp.1247-1255.

Faber, R.J. and Christenson, G.A. (1996), “ In the Mood to Buy: Differences in the Mood

States experienced by compulsive buyers and other consumers”, Psychology and

Marketing,13,pp.803-820.

Foroughi, A. , Buang A. and Sherilou M. (2011), Exploring impulse buying behaviour

among Iranian tourists in Malaysia (Case Study). 2nd international conference on business

and economic research (2nd ICBER 2011) proceeding.

Gardner, M.P. and Rook, D.W. (1988), “Effects of Impulse Purchases on Consumer

Affective states”, Advances in Consumer Research, 15, pp.127-130.

Geneva, V. (2010), “The influence of emotions on impulsive buying behaviour in the

presence of others”, Master‟s Thesis, Erasmus University Rotterdam.

Ghani U. and Kamal Y. (2010), “The Impact of In-Store Stimuli on the Impulse Purchase

Behavior of Consumers in Pakistan”, Interdisciplinary Journal of Contemporary Research in

Business, 2(8), pp.155-162.

Govoni, N., Robert, E. and Galper, M. (1986), Promotional Management, Englewood

Cliffs : Prentice Hall.

216

Graa, A. and Dani-elKebir, M.(2011), “Application of Stimulus and Response Model to

Impulse Buying Behaviour of Algerian Consumer”, Serbian Journal of Management,7(1),

pp. 53-64.

Grewal, D., Krishnan, R., baker, J. and Borin, N. (1998), “The effect of store name, brand

name and price discounts on consumer evaluations and purchase intentions”, Journal of

Retailing, 74( 3), pp. 331- 52.

Guiltinan, J.P. and G.W. Paul (1994), Marketing Management- Strategies and Programs,

Mc.Graw-Hill International Edition, 5th edition, New York.

Gultekin, B. and Ozer, L. (2012), “The Influence of Hedonic Motives and Browsing On

Impulse Buying”, Journal of Economics and Behavioural Studies, 4(3), pp. 180-189.

Gutierrez, B.P. (2004), “Determinants of Planned and Impulse Buying: The Case of the

Philipinnes”, Asia Pacific Management Review, 9(6), pp.1061-1078.

Han Y.K. (1987). Impulse buying behaviour of apparel purchasers. Unpublished master‟s

thesis, Colorado State University, Fort Collins.

Harmancioglu, N., Finney, R., Z and Joseph, M. (2009), “Impulse Purchases of New

Products: An Empirical Analysis”, Journal of Product and Brand Management, 18, pp.27-

37.

Hart, C., and Davies, M. (1996), “The location and merchandising of non food in

supermarkets”, International Journal of Retail & Distribution Management, 24(3), 17-25.

Hausman, A. (2000), “A multi-method investigation of consumer motivation in impulse

buying behaviour”, Journal of Consumer Marketing, 17(5), pp.403-419.

Havlena, W. J., and Holbrook, M. B (1986), “The Varieties of Consumption Experience:

Comparing Two Types of Typologies of Emotion in Consumer Behaviour”, Journal of

Consumer Research, 13, pp. 394–404.

Heidarizade, K., and Taherikia, F. (2010), “The Causes of Impulse Buying: Evaluation a

Model in Iran”, Journal of Management Research.

217

Heilman, C.M., Nakamoto, K., Rao, A.G. (2002), “Pleasant Surprises: Consumer Response

to unexpected In-store Coupons”, Journal of Marketing Research, 39(2), pp.242-245.

Helmers, K.F., Young, S.N., and Pihl, R.O. (1995), “Assessment of measures of

impulsivity in healthy male volunteers”, Personal Individual Differences, 19(6), pp.927–935.

Herabadi,A.G. ,Verplanken,B. and Knippenberg ,A. (2009), “Consumption experience of

impulse buying in Indonesia: Emotional arousal and hedonistic considerations”, Asian

Journal of Social Psychology, 12, pp. 20–31.

Herrington, J.D., Capella, L. M. (1995), “Shoppers reactions to perceived time pressure”,

International Journal of Retail & Distribution Management, 23(12), pp.13-20.

Hirschman, Albert. (1985), “Reflections on the Latin American Experience”, in Leon

Lindberg and Charles S. Maier (eds.) The Politics of Inflation and Economic Stagnation,

Washington, DC: the Brookings Institution, pp. 53-77.

Hirschman, E.C. and Holbrook, M.B. (1982), “Hedonic consumption: Emerging concepts,

Methods and propositions”, Journal of marketing, 46, pp 92-101.

Hirschman, E.C. and Stern, B.B. (1999), “The roles of emotions in consumer

research”,26,pp.4-11.

Hoch, S.J., and Loewenstein, G. F. (1991), “Time – inconsistent preferences and consumer

self-control”, Journal of Consumer research, 17(4), pp.492-508.

Hodge, R. (2004), “Factors influencing impulse buying during an online purchase

transaction”, unpublished Master‟s thesis, University of Waterloo, Canada.

Holbrook, M.B., O’Shaughnessy, J., and Bell, S. (1990), “Actions and reactions in the

consumption experience: the complementary roles of reasons and emotions in consumer

behaviour”, Research in Consumer Behaviour, 4, pp. 131-163.

Hoyer, W .T. and MacInnis, D. (1997), Consumer Behaviour, Houghton Mifflin, Boston

MA.

218

HSBC and Business Today, March (2010) retrieved October 7, 2011 from

http://www.ipedr.com/vol1/6-B00008.pdf

Huang, C. L and Ming, H. L. (2005), “An exploration of Taiwanese adolescents‟ impulsive

buying tendency”, retrieved April 17, 2007 from http://encyclopedia.com/doc/1G1-

131363637.html - 30k.

Huang, L.Y. and Hsieh, Y.J. “What Drives Consumer Impulse Buying? Evidence from a

Retail Setting in Taiwan”, retrieved from http://www.jimsjournal.org/20%20Ying-

Jiun%20Hsieh.pdf.

Huff, L. and Alden, D. (1998), “An investigation of consumer response to sales promotions

in developing markets: A three country analysis”, Journal of Advertising Research,38(3) pp.

47-56.

Hung , C.J.(2008), “The Analysis of Factors that Influence Female Impulse Buying During

Online Transactions”, Dissertation on MA Marketing ,University of Nottingham.

ICRIER Retail Report (2008) retrieved December8, 2010 from

http://www.icrier.org/pdf/Working_Paper222.pdf

Indian Retail Industry Report (2010) retrieved November 18, 2012 from

http://www.iseindia.com/ResearchPDF/Retail_Update1.pdf

Indian Retail Industry: Challenges, Opportunities and Outlook retrieved June 11, 2013

from http://www.dnb.co.in/IndianRetailIndustry/overview.asp

Indian Retail Market View Report (2012) retrieved April, 2013 from

http://www.indiannewsandtimes.com/2013/02/14/india-retail-market-view-2h-2012-

approximately-83-drop-in-prime-retail-space-supply-in-2012/

Inman, J., Winer, R., and Ferraro, R. (2009), “The interplay among category

characteristics, customer characteristics, and customer activities on in-store decision

making”, Journal of Marketing, 73, pp.19-29.

219

Inman, J.J., McAlister, L. and Hoyer, W.D. (1990), “Promotion signal: Proxy for a price

cut”, Journal of Consumer Research, 17(1), pp. 74-81.

Irani, N. and Hanzaee, K.H. (2011), “The Mediating Role of Hedonic value in Apparel

Shopping satisfaction”, World Applied Sciences Journal, 12(10), 1715-1729

Iyer, E. S. (1989), “Unplanned Purchasing: Knowledge of Shopping Environment and Time

Pressure”, Journal of Retailing, 65(1), pp.40-57.

Iyer, E. S., Park, C. W., Smith, D. C. (1989), “The effects of situational factors on in-store

grocery shop”, Journal of Consumer Research, 15(4),pp. 422-433.

Jahre, M. and Hatteland, C. J. (2004), “Packages and physical distribution: Implications

for integration and standardisation”, International Journal of Physical Distribution &

Logistics Management, 34(2), pp. 123-139.

Jalan, N.(2006), “Impulse Buying ,Personality Traits, In-store Atmospherics, and Their

Interaction”, Dissertation Marketing, University of Nottingham.

Jalees, T.(2009), “An Empirical Analysis Of Impulsive Buying Behaviour In Pakistan”,

Journal of Consumer Research, 5, pp. 298-308.

Jang, S., and Namkung, Y. (2009), “Perceived quality, emotions, and behavioural

intentions: Application of an extended Mehrabian–Russell model to restaurants”, Journal of

Business Research, Vol.62,pp. 451-460.

Jin, B., Sternquist, B., and Koh, A. (2003), “Price as hedonic shopping”, Family and

Consumer Sciences Research Journal, 31(4), pp.378-402.

Jones, M. A., Reynolds, K.E., Weun, S. and Beatty, S.E. (2003), “The product-specific

nature of impulse buying tendency”, Journal of Business Research, 56 (7), pp.505-511.

Juwita, C.(2008), “The effect of Retail Consumer‟s attitude towards Sales promotion on

impulse buying behaviour”, University of Indonesia.

220

Kacen, J. J., and Lee, J. A. (2002), “The Influence of Culture on Consumer Impulse Buying

Behaviour”, Journal of Consumer Impulse Buying Behaviour, 12 (2), pp. 163-176.

Kakati, Rinalini Pathak and U.R. Dhar (2002), “Competitive Strategies and New Venture

performance”, Vikalpa, Vol. 27, No. 3 (July-September), pp. 13-24.

Karbasivar,A. and Yarahmadi,H.(2012),“Evaluating Effective Factors on Consumer

Impulse Buying Behaviour”, Asian Journal of Business Management Studies, 2 (4),pp. 174-

181.

Kennedy, J. R. (1970), “The Effect of Display Location on the Sales and Pilferage of

Cigarettes”, Journal of Marketing Research, Vol.7 (May), pp.210-215.

Kim Jiyeon (2003), “College Students Apparel Impulse Buying Behaviours in Relation to

Visual Merchandising”, Unpublished Masters Theses, University of Georgia.

Kim, S. and Eastin, M. (2011), “Hedonic tendencies and the online consumer: an

investigation of the online shopping process”, Journal of Internet Commerce, 10, pp. 68-90.

Kollat, D.T., and Willett, R.P. (1967), “Customer Impulse Purchasing Behaviour”, Journal

of Marketing Research, 4(1), pp21-31.

KPMG Report (2008). “Indian Retail Time to Change Lanes” retrieved October 17, 2011

http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Indian%20

Retail-%20Time%20to%20change%20lanes.pdf.

Kumar, V. and Leone, R. P. , “ Measuring the effect of Retail Store Promotions on Brand

and Store Substitution”, Journal of Marketing Research ,Vol.25 1,pp.78-185.

Kumar,S. and Mishra,B.(2012), “What Drives Impulse Buying?”, International Journal of

Management Sciences, 1(2),pp.114-123.

Kunda, Z. (1999) Social cognition: Making sense of people. Cambridge, MA: MIT Press.

Lamb, C. W., Joseph F. Hair Jr., and Carl McDaniel (1992), Principles of Marketing,

Southwestern Publishing Company.

221

Laroche, M., Papadopoulos, N., Heslop, L. and Bergeron, J. (2003), “Effects of

subcultural differences on country and product evaluations”, Journal of Consumer

Behaviour, 2(3), pp. 232-247.

Laros, F. M., and Steenkamp, J-B. E. M. (2005), “Emotions in consumer behaviour: a

hierarchical approach”, Journal of Business Research 58, 1437–1445.

Lee G. Y. , and Yi Y. (2008), “The Effect of Shopping Emotions and Perceived Risk on

Impulsive Buying: The Moderating Role of Buying Impulsiveness Trait”, Seoul Journal of

Business, 14 (2), pp. 67-92.

Lee J.A., and Kacen J.J. (1999), “The relationship between independent and interdependent

self concepts and reasons for purchase”, Journal of Euro marketing, 8 (1/2),pp. 83-99.

Lee, G.Y. and Yi, Y. (2008), “The Effect of Shopping Emotions and Perceived Risk on

impulse buying: The Moderating Role of Buying Impulsiveness Trait”, Seoul Journal of

Business, 14(2), pp.67-92.

Lee, Y. K., Lee, C. K., Lee, S. K., and Babin, B. J. (2008), “Festival scapes and patrons'

emotions, satisfaction, and loyalty”, Journal of Business Research, Vol. 61, pp.56-64.

Leith, K. and Baumeister, R. (1996), “Why do bad moods increase self-defeating

behaviour? Emotion, risk taking and self regulation”, Journal of Personality and Social

Psychology, 71, pp.1250-1267.

Levy, M., and Weitz, B.A. (2004), Retailing Management, (5th

edition), New York:

McGraw- Hill.

Lewis, G. (1993), “The Impulse Zone”, National Petroleum News, 85 (4), p. 24.

Liao S.L., Shen Y.C. and Chu C. H. (2009), “The effects of sales promotion strategy,

product appeal and consumer traits on reminder impulse buying behaviour”, International

Journal of Consumer Studies, Vol. 33, pp. 274-284.

Lin, C., and Chuang, S., (2005), “The effect of individual differences on adolescents‟

impulsive buying behaviour”, Adolescence, 40(159), pp 551-558.

222

Loewenstein, G. F. (1990), “Reference points in intertemporal choice”, Unpublished

working paper, Centre for Decision Research, University of Chicago.

Louw, A. and Kimber, M., “The Power of Packaging”, retrieved from

http://wrm.tsc.k12.in.us/webpages/teacherpages/teachers/saware/Unit2-

ThePowerofPackaging.pdf

Luo, X. (2005), “How Does Shopping with Others Influence Impulsive Purchasing”, Journal

of Consumer Psychology, 15(4), pp.288-294.

Luo, X.M. (2004), “Grouped Dynamics of Impulse Buying: An Extended Social Facilitation

perspective”, Advances in Consumer Research, Vol.31,p. 431.

Lutz, C.A. (1982), “The domain of emotion words on Ifaluk”, American Ethnologist, 9,

pp.113-128.

Mackinnon, D.P., Lockwood, C.M., Hoffman, J.M., West, S.G. and Sheets, V. (2002),“A

comparison of methods to test mediation and other intervening variable effects”,

Psychological Methods, Vol. 7 No. 1, pp. 83-104.

Mai, N.T.T, Jung, K., Lantz, G. and Loeb, S.G. (2003), “An Exploratory Investigation into

Impulse Buying Behaviour in a Transitional Economy: A Study of Urban Consumers in

Vietnam”, Journal of International Marketing, 11(2), pp.13-35.

Malhotra, N.K. and Dash, S. (2009), “Marketing research: an applied orientation”, 5th

edition, Pearson Education,India,pp.372-375.

Mano, H. (1999), “The influence of pre-existing negative affect on store purchase

intentions”, Journal of retailing, 75(2), pp. 149-172.

Masouleh, S.E., Pazhang, M. and Moradi, J.S.(2012), “What is Impulse Buying? An

analytical network processing framework for prioritizing factors affecting impulse buying”,

Management Science Letters (2), pp.1053-1064.

223

McClure, P.J. and West, E.J. (1969), “Sales effects of a new counter display”, Journal of

Advertising Research, 9(1), pp. 29-34.

MCGoldrick , P. J, Betts, E. J, Wilson, A. F.(1999), “Modelling consumer price cognition:

evidence from discount superstore sectors”, The Service Industries Journal, 19,pp.171-193.

McGoldrick, P. J. (2002), Retail marketing, Berkshire: McGraw-Hill Education.

Mckinsey Global Institute, “The „Bird of gold‟: The rise of India‟s Consumer Market”

(May2007) retrieved April10, 2010 from

http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Consumer_Market.pdf

Mehrabian, Albert and James Rus s e l l (1974) An Approach to Environmental

Psychology. Cambr idge , Mass :MIT Pr e s s .

Melnikas, B., and Smaliukiene, R. (2007), “Consumer vulnerability in pharmaceutical

market: Case of Baltic countries”, Journal of Business Economics and Management, 8(1),

pp.51-62.

Meniawy, A.M.E. (2012), “Personal Characteristics and Situational Influences affecting

consumers adoption of Impulse buying behaviour”, Proceedings 3rd International

Conference on Business and Economic research (3rd ICBER 2012 ) 12 - 13 March2012.

Golden Flower Hotel, Bandung,Indonesia.

Mesrinata (2009) retrieved from http://fundamentaljournals.org/ijfpss/downloads/17-

Foroughi%20010612.pdf

Michon, R., Chebat, J.C., and Turley, L.W. (2005), “Mall atmospherics: the interaction

effects of the mall environment on shopping behaviour”, Journal of Business Research,

58(5), pp.576-583.

Miller, D. (1998), A Theory of Shopping, Cambridge, UK.

Millner, I. (2002a), “Burying the Myth of Impulse Buying”, Brand Strategy, September

(163), 38.

224

Minal, S., Sanjay, G., and Shrivastava Urvashi, S. (2012), “Effect Of Emerging Trends In

Retail Sector On Impulse Buying Behaviour-With Reference To Chhattisgarh Region”,

International Journal of Engineering and Management Sciences, 3(2), pp.142-145.

Mischel, H.N., and W. Mischel. (1983), “The Development of Children‟s Knowledge of

Self-Control Strategies”, Child Development, 54, pp. 603-619.

Mogelonsky, M. (1994), “Poor and Unschooled, but a Smart Shopper”, American

Demographics, 16 (7), pp.14-15.

Morris, C. J. (1987), “The operant conditioning of response variability: Free-operant versus

discrete-response procedures”, Journal of the Experimental Analysis of Behaviour, Vol.47,

pp.273-277.

Mowen, J.C. and Minor, M. (1998), Consumer Behaviour (5th ed.), Prentice-Hall, Upper

Saddle River, NJ.

Natakusamah(2009)retrieved from http://journal.ui.ac.id/index.php/jbb/article/view/970/893

Nicholls, J. A .F., Roslow, S., Dublish, S. (1997), “Time and companionship: key factors in

Hispanic shopping behaviour”, Journal of Consumer Marketing, 14(2/3),pp. 194 -205.

Nichols, J., Li, F., Roslow, S., Kranendonk, C. and Mandakovic, T. (2001), “Inter-

American perspectives from mall shoppers”, Journal of Global Marketing, Vol. 15 No. 1, pp.

87-103

NSSO Household Expenditure Survey -66th

Round A Critique (2011) retrieved January

17, 2013 from http://re-emergingworld.com/blog/wp-content/uploads/2011/08/20-07-2011-

NSSO-Household-Consumer-Expenditure-Survey_Blog-Writeup-V21.pdf

Nunnally, J.C. (1978), Psychometric theory (2nd

Ed.), New York: McGraw-Hill.

O’Neill, Regina M. and David R. Lambert (2001), “The Emotional Side of Price”,

Psychology & Marketing, 18 (3), pp. 217-237.

Omar O. (1999), Retail Marketing, Prentice Hall.

225

Parboteeah, D.V. (2005), “A model of online impulse buying: An empirical study”,

Dissertation, Washington state university.

Park, E. J., Kim, E. Y., and Forney, J. C. (2006), “A Structural model of Fashion-oriented

Impulse Buying Behaviour”, Journal of Fashion Marketing and Management, 10(4), pp.

433-446.

Park. C.W., Iyer, E.S. and Smith, D.C. (1989), “The effects of situational factors on in-

store grocery shopping behaviour: The role of store environment and time available for

shopping”, Journal of Consumer Research, 15 (March), pp.422-433.

Parkinson, R. (1996), “Emotions are Social”, British Journal of Psychology, 87, pp.663-

683.

Parsons, A. G. (2003), “Assessing the effectiveness of shopping mall promotions: customer

analysis”, International Journal of Retail & Distribution Management, 31(2), pp.74-79.

Peak, H. S. and Peak, E. F. (1977), “Supermarket Merchandising and Management”,

Englewood Cliffs, Prentice Hall, NJ.

Peck, J. and Childers, T. L. (2006), “If I Touch it I Have to Have it: Individual and

Environmental Influences on Impulse Purchasing”, Journal of Business Research, 59(6), pp.

765-769.

Pham, M. T. (1998), “Representativeness, relevance, and the use of feelings in decision-

making”, Journal of Consumer Research, 25, pp.144–159.

Piron, F. (1991), “Defining impulse purchasing”, Advances in Consumer Research,” 18, pp.

509-514.

Piron, F. (1993), “A Comparison of Emotional Reactions Experienced by Planned,

Unplanned and Impulse Purchasers”, Advances in Consumer Research, Vol. 20, 341-344.

226

Plutchik, R., and van Praag, H. M. (1995), “The nature of impulsivity: definitions,

ontology, genetics and relations to aggression”, in E. Hollander & D. Stein (Eds.),

Impulsivity and aggression, New York: John Wiley & Sons.

POPAI shopper Engagement Study (2012) retrieved from

http://www.popai.com/engage/docs/Media-Topline-Final.pdf

Prendergast, G. and Pitt, L.(1996), “ Packaging, marketing, logistics and the environment:

are there trade-offs?”, International Journal of Physical Distribution & Logistics

Management ,26 (6), pp.60-72.

Pride, O. and Ferrell O. (1989), Marketing: Concepts and Strategies (5th ed.),Houghton

Mifflin, USA, p. 683.

Quelch, J. A. (1983), “It‟s Time to Make Trade Promotion More Productive”, Harvard

Business Review, May/June, pp. 130–136.

Ramanathan, Suresh and Menon, G. (2006), “ Time-Varying Effects of Chronic Hedonic

Goals on Impulsive Behaviour”, Journal of Marketing Research, 43 (November),pp. 628-

641.

Rawlings, D., Boldero, J., and Wiseman, F. (1995), “The interaction of age with

impulsiveness and venturesomeness in the prediction of adolescent sexual behaviour”,

Personality and Individual differences, Vol.19,pp. 117–120.

Research and Markets (2011), “Retail Sector in India” retrieved April6, 2012 from

http://www.researchandmarkets.com/research/796f2f/retail_sector_in_i

Reza, H., Hadjali, M.S. and Ardestani, M.S.(2012), “Exploring main factors affecting on

impulse buying behaviours", Journal of American Science ,8(1),pp.245-251

Rook, D. W. (1987), “The buying Impulse”, Journal of Consumer Research, 14 (2), pp.189-

199.

227

Rook, D. W., and Fisher, R. J. (1995), “Normative Influences on Impulsive Buying

Behaviour”, The Journal of Consumer Research, 22(3), pp. 305-313.

Rook, D.W. and Hoch, S.J. (1985), “Consuming impulses”, Advances in Consumer

Research, 12, pp.23-27.

Rook, D.W., and Gardner, M.P. (1993), “In the mood: impulse buying‟s affective

antecedents”, Research in Consumer Behaviour, 6, pp.1-28.

Rose, R. L. (1988), “Frequent-flier plans become obsessions”, Wall Street Journal,

(September 6).

Rowley, J. (1998), “Promoting and marketing communications in the information

marketplace”, Library Review, 47(8), pp.383-387.

Rundh, B. (2005), “The multi-faceted dimension of packaging – Marketing logistic or

marketing tool? “, British Food Journal, 107 (9), pp.670-684.

Samuel ,Y.A., Donkor, S.A. and Awuah, J.B.(2012), “ Impulse Buying Behaviour among

students at the Marketing Department of Sunyani Polytechnic Ghana, West Africa”,

International Journal of Innovative research in management,1(2),pp.11-20.

Schiffman, L.G. and Kanuk, L.L. (2007), Consumer Behaviour (9th ed.), New Jersey:

Pearson Prentice Hall.

Schindler, R. M. (1989), “The excitement of getting a bargain: Some hypotheses concerning

the origins and effects of smart-shopper feelings”, Advances in Consumer Research, Vol.16,

447-453.

Sharma, A., Kour, R. and Gupta, B. (2001), “The effects of price, brand name and store

name on buyers‟ perception of product quality: an integrative review”, Journal of Marketing

Research, 26(3), pp. 351-357.

228

Sharma, p., Sivakumaran, B. and Marshall, R. (2009), “Exploring impulse buying in

services vs. products – towards a common conceptual framework”, Advances in Consumer

Research – Asia-Pacific Conference Proceedings, 8, pp.195–196.

Sherman, E., Mathur, A. and Smith, R.B. (1997), “Store Environment and Consumer

Purchase Behaviour: Mediating Role of Consumer Emotions”, Psychology and Marketing,

14 (4),pp. 361-378.

Shimp, T.A. (1993), Promotion management and marketing communication, USA: Dryden

Press.

Shimp (2000), Terence A. Advertising Promotion: Supplemental Aspects of Integrated

Marketing Communications (Fifth Edition), Dryden Press, Fort Worth, TX.

Silayoi, P. and Speece, M.( 2004), “ Packaging and purchase decisions: An exploratory

study on the Impact of involvement level and time pressure”, British Food Journal, 106,pp.

607-628.

Silvera, D.H., Lavack, A.M., and Kropp , F.(2008), “ Impulse buying: the role of affect,

social influence, and subjective wellbeing”, Journal of Consumer Marketing, 25(1),pp. 25-

33.

Sinha, P.K. and Banarjee, A. (2004), “Store Choice behaviour in an evolving market”,

International Journal of Retail and Distribution management, 32(10),pp.482-494.

Sobel, M. E. (1982), “Asymptotic confidence intervals for indirect effects in structural

equation models”. Sociological Methodology, 13, pp. 290–312.

Stern, H. (1962), “The Significance of Impulse Buying Today”, Journal of Marketing, 26(2),

pp.59-62.

Stewart, D.W. (1981), “The application and misapplication of factor analysis in marketing

research”, Journal of Marketing Research, Vol.18, pp.51–62.

229

Sullivan, G.J. (2008), “Stress, Emotion Regulation, and Impulse Buying (Senior Honors

Thesis)”, University of Denvar.

Sullivan, M., Adcock, D. (2002), Retail Marketing, London: Thompson, p.350.

Tat, P., Cunningham, W. and Babakus, E. (1988), “Consumer Perceptions of Rebates”,

Journal of Advertising Research, 24(4), pp. 47-52.

Tauber, E. (1972), “Why do people shop?” , Journal of Marketing,36, pp.46-49.

Technopak (2011) “Emerging trends in Indian Retail and Consumer” retrieved from

http://www.lemoci.com/media/distributioninde2011.pdf

Tellis, G. J. (1998), Persuasion using Endorsers. Advertising and Sales Promotion Strategy,

USA: Addison-Wesley Longman Inc.

Tendai M. and Crispen C. (2009), “In- store shopping environment and Impulsive buying”,

African Journal of Marketing Management, 1(4), pp.102-108.

Terrazas M (2006), “In-store displays that work”, The Baker, [Online]10 (3). Retrieved 05

August 2008, from the World Wide Web: http://www.thebaker.co.za.

Thompson, Craig J., Locander, William B., and Pollio, Howard R. (1990), “The lived

meaning of free choice: An existential-phenomenological description of everyday consumer

experiences of contemporary married women”, Journal of Consumer Research, 17,pp. 346–

361.

Tice, D., Bratslavasky, E. and Baumeister, R. (2001), “Emotional distress regulation takes

precedence over impulse control: if you feel bad, do it”, Journal of Personality and Social

Psychology, 80(1), pp.53-67.

Tirmizi, M. A, Kashif-Ur-Rehman, Saif, M. I (2009), “An empirical study of consumer

impulsive buying behaviour in local market”, European Journal of Scientific Research, 28(4)

pp. 522-532.

230

Tversky, A., and Kahneman, D. (1974), “Judgment under uncertainty: heuristics and

biases”, Science, 185, pp.1124±1131.

Underhill, Paco (1999) why we buy: the science of shopping. New York: Simon and

Schuster.

Van Dijk, W. W., van der Pligt, J., and Zeelenberg. M. (1998), “Investigating the

appraisal patterns of outcome-related and person-related disappointment”, Manuscript under

review.

Verma, P. and Verma, R.(2012), An On-line field survey of the Impulse buying behaviour

of consumers in consumer non durable sectors in the Retail Outlets in the city of Indore”,

Research Journal of Management Sciences,1(4),pp.1-5.

Verplanken, B. and Herabadi, A. (2001), “ Individual Differences in Impulse Buying

Tendency: Feeling and No Thinking”, European Journal of Personality, 15,pp. 71-83.

Virvilaite R., Saladiene V., and Bagdonaite R. (2009) “Peculiarities of Impulsive

Purchasing in the Market of Consumer Goods”, Inzinerine Ekonomika-Engineering

Economics (2), pp.1392-2785.

Wang, R.W.Y. and Chen, Y.C.(2011),“Service dimensions for consumer emotions”,

Journal of the Chinese institute of industrial engineers ,28(2) ,pp.134-145.

Watson, D., and Clark, L. A. (1993),“Behavioural disinhibition versus constraint: A

dispositional perspective”, in D. Wegner & J. Pennebaker (Eds.), Handbook of mental

control , Englewood Cliffs, NJ: Prentice Hall (pp. 506-527).

Watson, D., and Tellegen, A. (1985), “Toward a consensual structure of mood”,

Psychological bulletin, 98(2), pp.219.

Weinberg, P. and Gottwald, W. (1982), “Impulsive consumer buying as a result of

emotion”, Journal of Business research, 10(1), pp. 43-57.

Welles, G. (1986), “We‟re in the Habit of Impulsive Buying”, USA Today (May 21), pp.1.

231

Weun, S., Jones, M.A. and Beatty, S.E. (1998), “The development and validation of the

impulse buying tendency scale”, Psychological Reports, 82, pp.1123-1133.

Weun, S., Jones, M.A. and Beatty, S.E. (1997), “ A Parsimonious Scale to measure

Impulse Buying Tendency”, AMA Educators‟ Proceedings,8,eds.,William M. Pride and G.

Tomas M.Hult, American Marketing Association,pp.306-307.

Wilkie W. L. (1994), Consumer Behaviour (3rd ed.), New York: John Wiley and Sons.

Wilkinson, J.B., Mason, C. and Paksoy, C. (1982), “Assessing the impact of short-term

supermarket strategy variables”, Journal of Marketing Research, 19, pp. 72-86.

William, J., and Dardis, R. (1972), “Shopping Behaviour for Soft Goods and Marketing

Strategies”, Journal of Retailing, 48 (Fall), pp.32-41.

Wood, M. (1998), “Socio-economic status, delay of gratification, and impulse buying”,

Journal of economic psychology, 19, pp.295-320.

Woodside, A.G. and Waddle, G.L. (1975), “Sales effects of in-store advertising”, Journal

of Advertising Research, 15(3), pp. 29-33.

Wu W. C. and Huan T. C. (2010), “The effect of purchasing situation and conformity

behaviour on young students‟ impulse buying”, African Journal of Business Management

4(16), pp.3530-3540.

Xu, Y. (2007), “Impact of Store Environment on Adult Generation Y Consumers‟ Impulse

Buying”, Journal of Shopping Centre Research, 14(1), pp. 39-56.

Yalch and Spangenberg (2000), “The Effects of Music in a Retail Setting on Real and

Perceived Shopping Times”, Journal of Business Research, Vol.49, pp139-14.

Yang, D.J., Huang, D.C., Feng, X.(2011), “A Study of the Factors that Affect the Impulsive

Cosmetics Buying of Female Consumers in Kaohsiung”, International Journal of Business

and Social Science, 2(24),pp.275-282.

232

Yankee Group (2000) survey retrieved from

http://www.scribd.com/doc/77304193/Literature-Review-for-Impulse-Buying

Youn, S. and Faber, R. J. (2000), “Impulse buying: its relation to personality traits and

cues”, Advances in Consumer Research, 27, pp.179-185.

Youn, S.H. (2000). The Dimensional Structure of Consumer Buying Impulsivity:

Measurement and Validation. Unpublished doctoral dissertation, University of Minnesota,

Minneapolis.

Yu, C. and Bastin, M. (2010), “Hedonic shopping value and impulse buying behaviour in

transitional economies: A symbiosis in the Mainland China marketplace”, Journal of Brand

management,18,pp.105-114.

Zajonc, R.B.(1965), “Social Facilitation”, Science,149,pp.269-274.

Zajonc, R.B., and Markus, H. (1984), Affect and cognition: The hard interface. In C. E.

Izard, J. Kagan and R. B. Zajonc (Eds.), Emotions, cognition, and behaviour (pp. 73-

102). New York: Cambridge University Press.

Zhou L., Wong, A. (2004), “Consumer Impulse Buying and In-Store Stimuli in Chinese

Supermarkets”, Journal of International Consumer Marketing, retrieved April20, 2008 from

www.ingentaconnect.com/conttent/haworth/jicm/2004/00000016/00000002/art00003