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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
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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.
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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.
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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).
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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
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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.
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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.
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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).
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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
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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
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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).
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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
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(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
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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.
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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
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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.
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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
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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.
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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.
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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).
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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
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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.
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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.)
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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
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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
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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%
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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).
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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
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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
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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.
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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.
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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.
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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.
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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.
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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,
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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.
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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.
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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
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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
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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
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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.
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