Cb Final Project Analysis

8/3/2019 Cb Final Project Analysis

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CONSUMER BEHAVIOR IMPULSE BUYING

BEHAVIOR

SUBMITTED TO: SUBMITTED BY:

PROF.SHALINI SINGH ANJALI SRIVASTAVA-JIML-10-015

ADITI SINHA-JIML-10-FS-001DEEPTI MAHAWAR-JIML-10-RM-001

GEET HEMNANI-JIML-10-RM-002


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Introduction

Impulsive purchasing, generally defined as a consumers unplanned purchase which is an

important part of buyer behavior. It accounts for as much as 62% of supermarket sales

and 80% of all sales in certain product categories. Though impulsive purchasing has

attracted attention in consumer research. Unfortunately, there is a dearth of research ongroup-level determinants.

This research suggests that the presence of other persons in a purchasing situation is likely

to have a normative influence on the decision to make a purchase. The nature of this

influence, however, depends on both perceptions of the normative expectations of theindividuals who exert the influence and the motivation to comply with these expectations.

Peers and family members,are the two primary sources of social influence, often have different normative

expectations. Thus, it has been evaluated two factors that are likely to affect the

motivation to conform to social norms:

a) The inherent susceptibility to social influence andb) The structure of the group

Group cohesiveness refers to the extent to which a group is attractive to its members. The

theory proposed by Fishbein and Ajzen helps conceptualize these effects. This theoryassumes that behavior is a multiplicative function of expectations for what others consider

to be socially desirable and the motivation to comply with these expectations.


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RESEARCH PLAN

RESEARCH DESIGN:

A research design is a very important part of research. It is a master plan specifying the

methods and procedures for collecting and analysing the needed information.

EXPLORATORY RESEARCH:

Having an effective exploratory research, the information gathered will act as a platformto conduct a non biased and thorough conclusive research.

1) Secondary Literature Study:

While keeping in mind the validity and authenticity of the information, data was collectedfrom websites and printed documents (journals, news articles and books).

To gather the required information for this study, we used two various sources of data.

We followed the secondary literature review. We found various research papers and

different articles weve found on internet which helped us a lot to achieve relevantresearch objectives. The analysis of secondary literature also helped the research team to

know different possible aspects of this research which probably was within veil until now.

2) Descriptive design: (CROSS SECTIONAL)

Here we have done the descriptive design survey with the help of questionnaire that wasformed on the basis of research objectives. We have done the descriptive design survey

that by getting filled questionnaire by respondents.

Here we have formed various research hypotheses. Then we have tried to describe thesample that we are going to select to test the various research hypotheses by deciding who

is going to provide the information for testing, what type of questions to be asked to these

respondents, how we can approach to these respondents, how we will select the sample ofthese respondents, when we will approach these respondents, and in which way we will

collect the information.

We chose to use cross sectional descriptive design because of the constraint of time.These surveys are used to study a sample of a population at a single point in time.


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Sampling

Target population: As mentioned above, our target population would be college going

students (both girls and boys.) and the people going for shopping of the concerned brandsSampling Frame: Our sampling frame would be the Malls of Lucknow- FunRepublic,Saharaganj,River Side etc.

CONVIENIENCE SAMPLING and shopping mall intercept would be used asthe sampling design to collect the information.

QUESTIONNAIRE FORMULATION

The questionnaire formulation was done keeping in mind the relevant concept of scales

and scaling technique.

SCALE OF MEASUREMENT:A scale may be defined as any series of items that are arranged progressively according to

value or magnitude, into which an item can be placed according to its quantification. Its aspectrum of series of categories. The purpose of scaling is to represent, an items place in

that spectrum.

Measurement scale is used to measure a variable so as to the information collected ismathematically analyzable.

Nominal scale : it is a simple scale where the numbers assigned to objects serveas labels for identification or classification. This scale has been used in case of

gender, age groups, monthly income groups, occupation and family structure.

Interval scale: this scale not only arranges objects or alternatives according totheir magnitude but also this ordered arrangement in units of equal intervals. It

gives an idea about the distance between alternatives. The distance is fixed but

zero is arbitrary. It is a rating scale.

SCALING TECHNIQUE:

Summated ratings method: the likert scale was used in this research. It is a unipolar scalewith neutral mid point.

We have made use of five point likert scale in designing the questionnaires. With

4- Strongly Disagree3- Disagree

2- Agree

1-Strongly Agree


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LITERATURE REVIEW

1. Personal impulse buying

It began to investigate impulse buying in the beginning of 1950.Baum1951addressed that consumer was stimulated to impulse buying after they came into

the store. Stern1962was the first scholar to suggest impulse mix to classify four kinds of

impulse buying: pure, remind, suggest, and plan. Although most of research thought themean of impulse buying was the same with unplanned buying. Rook 1987 argued

successfully that impulse buying should be depicted it as extraordinary, exciting,

hedonically complex and compelled buyer action. Beatty and Ferrell 1998 constituted amodel as a precursors of impulse buying. They argued that situational variables time

available and money available and individual difference variables shopping enjoyment

and impulse buying tendency were found to influence a set of endogenous variables,

including positive and negative affect and so on. Thomas 1997 also points to twoemotional shifts that affect the buying habits. One is an increase in stress levels because

consumers are out of their daily routine. The other is an increase in levels of anticipation

and excitement.Crawford and Melewar 2003 explained retailers must create an environment that

minimizes inherent stress and accentuates or at least maintains natural levels of

excitement ,while also virtuously motivating impulse purchasing by reducing oreliminating barriers to purchase.

In decades, scholars started to transfer the views on the characteristics of different

consumers buying trends Engle, Blackwell and Miniard,2001 Beatty and Ferrell,1998Wood,2005 the influence on impulse buying by different situation or culture Tai and

Tam,1997 Mattila and Wirtz, 2001 Wood,2005 and began to try how to predict the potential of consumers impulse buying Kelly and Smith,2000 Omar and

Kent,2001Crawford and Melewar,2003Robert and Jones,2001.

2. Social view of impulse buying

Hausman 2000 argues that impulse buying is a hedonic need predominantly

motivated by achievement of higher order needs loosely grouped around

Maslowshierarchy of needs. Efforts to satisfy the higher order needs in his hierarchylead to different types of impulse buying behavior. He suggests that normative

evaluations can reduce impulsive purchase behavior. Consumers act to suppress their

nature impulsive traits to act in accordance with social norms.Crawford and Melewar proposed that given consumers basic value, attitude and

behavior norm transform slowly, consumer would alter their view about surroundings

and lifestyle. It means that consumer was devoted to be in the cycle of fashion and fad.Fashion oriented impulse buying occurs as consumers see the product in a new

style and decide to buy it as refer to the awareness of the fashionability on an design or

style and express their self-identity (Phau and Lo,2004) With the exposed frequency of

fashion, different groups result to conformity and make fad be accepted by social


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members. As a matter of fact, all things what consumers care are the social function and

meaning, nor the value and essential function of products(Phau and Lo,2004).

Consumers usually be influenced because of chasing fad and get pressure by socialmembers so that they would make herding behaviors(Freidman ,1984)

Wood 2005 proposed that retailers should not only care about the purchasing

behavior in retail environment, but also understand consumers society more . Impulse buying would be influenced from discretionary income positively. Due to satisfyindividuals social needs, consumer would make more impulse buying which make them

feel excited and gratification. Consumers society includes consumers purchasing

experience and characteristics of shopping environment.Peck and Childers 2006 started to address the times of touching with people by people

would make more impulse buying, they found customers touch more with salesmen,

they would increase the possibility of impulse buying. It explains impulse buying shouldrelate with touch between people by people.

3. Herding view of impulse buying

Asch (1952) was the first psychologist scholar who proposed the herding behavior.

However, most research investigates it on psychology and finance. Then, there are few

researches on the marketing. Herding is defined as a group of consumers following eachother into the same behavior over some period of time (Sias, 2002) Although all decisions

they decide dont follow what they think on their mind., consumers would be influence

more or conformity from other people and increase the frequency of impulse buyingbehavior (Lascu and Zinkhan, 1999Burnkrant and Cousineau, 1975).

The herding research can be divided into four categories- informational cascades,

investigative herding, reputation herding, fads, and characteristic herding(Bikhchandani

and Sharma, 2000Sias, 2002)

Baron and Byrn find consumers herding was due to people hope to be acceptedand liked so that they make two conditions, one is Normative social influence, the other

is Information social influence. Normative social influence means people expected to be

accepted, admired and attempt to alter their behavior to satisfy others exceptions.Information social influence means when consumers come into a complex situation they

would seek information or others ideas as the reference for deciding, due to simplify

deliberating decision, and cause to rely on members and conform to members behavior.

As a matter of fact, individual ponders on their purchasing decision, they usuallyadopt members or take a similar plan with social members in the cause of getting

recognitions and satisfy the expectation which social members put on the

roleWilkie,1994Macinnis,1997 . That was the behavior pattern of consumersherding.


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4. Culture study

Tai and Tam1997compares the lifestyles of female consumers in Hong Kong,Taiwan, and China, which together make up Greater China. Their investigation revealed

that significant differences exist among the three groups of female consumers in nine

different areas. Taiwanese female consumers are especially brand-conscious and their

consumption choices were not always based on function, but more on the prestigiousimage of imported foreign brands. Women in China, especially the younger ones, were

quickly adopting new values and Western ideas.Luna and Gupta (2001) use the measures of evaluation most representative of ethic

thought process to elaborate consumers culture, and proposed national culture

is the most suitable way to discuss. Chinese culture advocates everything should

stand in harmonious, judging the hour and sizing up the situation. it eliminate tobite more one can chew and consider to restrain their affection and emotion.

Aaker and Maheswaran (1997) classify Chinese culture for four groups: a Integration: To emphasize on tolerance , harmonious, non-competitionand intimate relationship; bConfucianism : to emphasize on respecting for

seniority, shame and pay much attention to reputation; c A sense ofcompassion: empathy, patience polite and a sense of justice; and dMoral:To emphasize on moderate and utter innocence. Chinese traditional culture

emphasizes thrift, diligence, and value consciousness. Chinas ruling party overthe past four decades has also been extolling the virtue of thriftiness and

discouraging a hedonic life style. As a result, it is socially desirable to save

money and be a meticulous shopper in China..

Data Analysis

The Reliability Analysis

N %

Cases Valid 500 100.0

Exclud

ed(a)0 .0

Total 500 100.0

a Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's

Alpha

N of

Items

.981 29

The data was found to be 98% reliable.


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age

65 and above50-6535-5020-35

Percent

40.0%

30.0%

20.0%

10.0%

0.0%

13.74%

30.92%

27.86%27.48%

14.29%

26.89%28.99%29.83%

female

male

gender

Our sample size was 500 individuals of which 164 were aged between 20 to 35. 135

individuals were aged between 35 to 50 years. 130 individuals were aged between 50 to65 years while the rest were above 65years. We have taken the age group as the basis of

our analysis.


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Price and effect on impulsive behaviour

attractive_price_affects_buying

disagreeagreestrongly agree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

45.5%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

The analysis was done using the different age groups and how different factors influence

the impulse buying behaviour of the individual.It is seen that the price plays a very important role in effecting the impulse buying

behaviour amongst the age group 20 to 35 years of age. Various reasons can be attributed

to it. Individuals between age group of 20 to 35 are either students or have newly startedearning. Further such an age group consists of individuals who are bachelors or newly

married with usually no kids and thus have high disposable income. But the income is not

very high as they have just started earning or are students. Thus if they are offeredsomething at lower prices they are going to buy it.

We see that impulse buying behaviour decreases with age in terms of attractive prices. Asthe individuals move to 35 to 50 bracket they usually have kids and need to plan out theiractivities, thus they have their budgets fixed thus less likely to go in for impulse buying

behaviour.


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attractive_price_affects_buying


Percent

60.0%

40.0%

20.0%

0.0%

36.3%

63.7%

31.1%

68.5%

female

male

gender

Difference in impulse buying behaviour is also noticed in terms of gender. Females are

more likely to go in for impulse buying behaviour as compared to males as can beinferred from the data. Thus the shopkeepers must also take into account the differences

in gender and placing of the product so that it can influence both the genders.


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Discount and effect on impulsive Behaviour

discount

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

45.5%

54.5%

28.2%

71.8%

18.2%

81.8%

65 and above

50-65

35-50

20-35

age

Further discounts are likely to induce individuals between age group of 20 to 35 to go infor impulse buying behaviour. The individuals in this age group tend to focus more on

consumerism and have a high demand for things even though they may not be very

essential. Thus discounts offer them an opportunity an opportunity to buy more at lower

costs.Similarly they are the most influenced by the various schemes which marketers come out

with. The impulse buying behaviour in terms of discounts as we see reduces with age withonly 38.6% individuals above 65 years of age go in for impulse buying.


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Effect of advertisement on impulsive Behaviour

advertisement

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

46.2%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

The advertisements are more likely to have influence on individuals between 20 to 35

years of age and this influence keeps declining with age with only 75% getting influenced

by advertisements and go in for impulse buying behaviour and only 53% of individualsgetting influenced by advertisements. Indias largest consuming class population of about

50 million (urban, top three socio - economic classes) is in the age band of 20-35 yrs.

Most of them behave more like teenagers who are just about turning 15, as thats howlong it has been since Indian markets have been liberalised. The same goes for the brands

as well. As a society held back by scarcity and a self restrained value system built around

it, suddenly opens up to the pangs of desire, in their attempt to be attractive to theseconsumers, brands too have realised that being youthful is the way to go.


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Effect of promotional activities on impulsive Behaviour

promotional_activities

strongly disagreedisagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0% 1.4%

61.4%

37.1%

46.2%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

The same trend can be observed in other promotional activities with youths getting mostaffected by it as being about 82% of youths being affected by promotional activities.

Those between 35 to 50 years of age are also influenced by the promotional activities.

Thus the marketers must try to focus much on promotional activities as these promotional

activities are likely to influence impulse buying thus improving their sales. Evenhoardings and pamphlets are also likely to influence impulse buying behaviour in a

positive manner.


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packaging


Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

45.5%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

People of all age groups strongly considered packaging as important factor affecting their

buying behaviour. 82%, and 75% of individuals are likely to be effected by packaging and

their purchase decision is highly influenced by it.

Thus the 4 Ps of marketing play an important role in inducing individuals to buy. They are

likely to influence the impulsive behaviour and increase the volume of sales.


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Effect of emotional attachment on impulsive Behaviour

emotional_attachment

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

60.0%

40.0%

46.2%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

If the individuals are emotionally attached to the product they are more likely to buy it.Thus the marketers should try to not only sell the tangible product but also provide

services related to the individual so that they are more likely to be influenced by it. Giving

not just what satifies the customers but providing them more value out of the product will

attach emotional attachment to it which induces individuals to buy more of it and be loyalto the product.

Effect of Behaviour of Salesman on impulsive Behaviour


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behavior_of_salesman


Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

4.8%

46.2%49.0%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-50

20-35

age

Behaviour of salesperson towards the customers is important factor influencing impulsivebuying behaviour. Further the influence keeps declining with age as the customers start

knowing their priorities and are more experienced themselves thus are less likely to be

affected by behaviour of salesperson.


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Effect of reference group on impulsive Behaviour

reference_groups

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

65 and above

50-65

35-5020-35

age

The reference group are likely to have most influence on the youth population with about82% of individuals in the age group of 20 to 35 are going to be influenced by their peers,

family members. This age group seeks social acceptance the most and their values and

social system gets influenced by the society and the company they are likely to follow.Further such a reference group aspires for a certain social status and thus those individuals

who represent that aspirational group are likely to influence the buying behaviour of theindividual.


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Effect of festival discounts on impulsive Behaviour

festival_discounts

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

25.7%

74.3%

100.0%100.0%

2.1%

97.9%

65 and above

50-65

35-5020-35

age

In India during the festive season the impulse buying behaviour increases and this isnoticed in all age groups. All the individuals spend more during festive seasons and thus

festive discounts induces individuals to buy more and more. 100% of individuals falling

in age group of 35 to 50 and 50 to 65 go for impulsive buying in case of festive discounts.Even 65% of individuals above 65 years go for impulsive buying during such time period.

Thus the marketers can likely increase their sales during festivity by coming out withattractive festive schemes.


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Effect of popularity of product on impulsive Behaviour

popularity


Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

46.2%

53.8%

24.6%

75.4%

17.5%

81.8%

65 and above

50-65

35-5020-35

age

The popularity of the product induces the individual to buy impulsive buying behaviour.81% of the individuals between 20 to 35 years of age go in for buying products which are

popular. Buying such products enhances self esteem. While individuals of higher age

group go in for products which provide them higher utility than products which arepopular as such. 0.3% of individuals of all age group disagree with the fact that they buy

the products based on popularity.


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Effect of changing trends on impulsive Behaviour

changing_trend

disagreeagree

Percent

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

61.4%

38.6%

46.2%

53.8%

24.6%

75.4%

17.5%

82.5%

65 and above

50-65

35-5020-35

age

The changing trends in the environment and fashion induces younger age group to go infor impulsive buying behaviour to stay with the trend.


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Conclusion

It is noticed that factors like prices, discounts, changing trends, advertisements affects the

impulsive behaviour of the individuals with the greatest affect on the age group 20 to 35

years.The older age groups are less affected by it.

In the festivity discounts it was noticed that individuals aged between 35 to 50 ande 50 to

65 years of individuals are likely to be affected by it indicating that the traditions play animportant role in influencing the impulsive buying behaviour of the individuals in these

age group.

Gender wise it was seen that females were more prone to impulse buying than males.

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Cb Final Project Analysis