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Studying the Impulse Buying Behaviour of Urban Women in Leading

Departmental Stores of Karachi

Research Project Report


Final Proposal WS 2016-17

Module RESEARCH METHODS- MEF 2.2

Hochschule Rhein-Waal, University of Applied Sciences


Faculty of Society and Economics

Supervised by:
Prof. Dr. Gernot Mueller

Submitted by:

Abid Zain Alam


(Matriculation # 20391)
Syed Zuhair Hussain Naqvi
(Matriculation # 20466)

Due Date: 19.02.2017

Research Methods MEF 2.2 1


Research Methods MEF 2.2 2
1. Table of Contents
2. Introduction: .................................................................................. 5

2.1 Background & Problem Statement: ............................................. 5

2.2 Research Objectives & Questions: .............................................. 6

2.3 Significance & Limitations of Research: .................................... 7

3. Literature Review: ......................................................................... 9

3.1 Impulsive Buying Behaviour: ..................................................... 9

3.2 Forms of Impulsive Behaviour: ................................................. 11

3.3 Reasons of Impulsive Behaviour:.............................................. 12

3.4 Factors Influencing Impulse Buying: ........................................ 12

3.4.1 Internal Factors: .................................................................. 12

3.4.2 External Factors: ................................................................. 13

3.4.3 Situational Factors & Impulsive Buying: ........................... 13

3.4.4 Customer Segmentation in Terms of Impulsiveness: ......... 15

4. Conceptual & Theoretical Framework: ....................................... 15

4.1 Conceptual Framework: ............................................................ 15

4.2 Theoretical Framework: ............................................................ 17

4.2.1 The Nicosia Model: ............................................................ 17

4.2.2 Theory of Reasoned Action: ............................................... 18

Research Methods MEF 2.2 3


4.2.3 Motivation Need Theory: ................................................... 20

4.3 Research Hypothesis: ................................................................ 21

5. Methodology:............................................................................... 22

5.1 Research Approach: .................................................................. 22

5.2 Definition of Variables: ............................................................. 22

5.2.1 Impulsive Buying Behaviour: ............................................. 22

5.2.2 Visual Merchandising: ........................................................ 23

5.2.3 Attractive Price: .................................................................. 25

5.2.4 Sales Promotion: ................................................................. 25

5.2.5 Emotional Attachment: ....................................................... 26

5.2.6 Electronic Media: ............................................................... 27

5.3 Data: .......................................................................................... 28

5.3.1 Instrumentation: .................................................................. 28

5.3.2 Population and Sample: ...................................................... 29

5.3.3 Determination of Sample Size: ........................................... 29

5.4 Econometric Approach: ............................................................. 30

5.4.1 Estimates of the Model Parameters: ................................... 31

5.4.2 Predicted Values and Residual: .......................................... 31

5.4.3 Significance Testing of Each Variable: .............................. 32

6. REFERENCES ............................................................................ 33

Research Methods MEF 2.2 4


2. Introduction:
Impulse buying is referred as a buying Behaviour which
accentuates that the buyers usually take buying decisions on an
unintentional basis. When consumers go to a store in order to
purchase a product, the core elements which influence their buying
decision are certainly the cost and benefit propositions associated
to all the available products in the market. Moreover, the pattern
with which consumers purchase products on a day-to-day basis is
also significant in order to explicate the phenomenon of impulsive
decision making in purchasing a particular commodity.

2.1 Background & Problem Statement:


Researchers have contemplated rigorously on comprehending the
impulse buying phenomenon associated to diverse type of
commodities in multiple shopping markets. Williams and Dardis
(1972); Du Pont (1965) Bellenger et. al. (1978).

This study has been focused on impulsive buying Behaviour of


urban woman in leading departmental stores in Karachi.

As Karachi is consist of diversified cultures, there are some areas


where due to lack of development and education, it is less prevalent
that women go for shopping. Whereas, in educated and developed
areas situation is different and usually markets are being crowded

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with women as compared to men.

In Karachi, the normal trend which is being observed in purchasing


of clothing and apparel for the whole family regardless of gender,
women do the shopping. Random observation has proven that
women end up buying more apparel items than actually
envisioned. As already discussed above, buying Behaviour and
patterns of male and female greatly differs. Normally, men are in
charge of buying expensive goods whereas women go for small
items. However, females do make decisions approximately for
more than half of familys purchase.

Trend of shopping in departmental stores varies as compared to


normal shops because when women go for shopping in
departmental stores they surround themselves with many different
products and unintentionally buy irrelevant stuff as well for which
they had not planned. Considering this factor, stores are taking
advantage and continuously enhancing the selling strategy which
increases the irrational buying Behaviour of women.

2.2 Research Objectives & Questions:


The emphasis of this study would be to analyze and evaluate those
factors which influence urban women to demonstrate impulsive
buying Behaviour. It also has been observed that, generally

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impulsive buying is escalating amidst the urban women especially
in leading departmental stores.

What is the trend among urban woman regarding impulse


buying?
What are the reasons or causes for impulsive buying
Behaviour?
What are the effects of variables mentioned below on
womens impulsive buying Behaviour?

Retailers create an appealing outlook of their stores according to


the choice of target markets due to tough competition. It is difficult
to create a competitive/comparative advantage by only
merchandise; so retailers are finding ways to create differentiation
at their store(s). Since visual representation of store/product that is
being offered to encourage customers purchase Behaviours.
Visualization tools play an important role and are being considered
as an intermediate step in transforming data into insight. If
appearance and first impressions are highly affecting indicators of
impulse purchase, then this means that a consumers decision of
purchasing a product critically depends upon products window
display at a particular store.

2.3 Significance & Limitations of Research:

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The results obtained through this research will assist in
understanding the significance of those factors which affect the
buying Behaviour of the urban women. Furthermore, it will
elucidate the importance of the elements pertaining to the
merchandising practices followed by the departmental stores and
the manipulative tendency of those elements in determining the
frequency of purchases made by a consumer.

The explication of consumer buying pattern has always remained


a crucial element for marketers, and impulsive buying is a
phenomenon which plays an important role in shaping up the
consumers buying pattern.

The limitations which were specified by the researchers are asunder:


The researchers have explicated that the sample size was
small, which means that there might be a few restricting
elements which would hinder the aspect of generalizing the
findings of the research to the target population.
The time constraint in conducting the research limited the
researchers to perform an extensive and meticulous study.
The responses provided by the respondents might have
tested their memory because some of the questions asked
by the researchers were bound to place the respondents in
a situation where they had to recall their past experiences.

Research Methods MEF 2.2 8


The questionnaire used quantitative method. Therefore, it
would have been effectual if qualitative measures would
also have been implemented for the study.
There is also the element of the respondents filling up the
questionnaire in haste due to the time constriction imposed
by their respective schedules of routine life.

There is a possibility that the respondents might have not asked for
the researchers assistance if they have encountered any ambiguity
in explicating the research questions because numerous factors.
For instance, their comprehension level could have been a factor
for this particular limitation.

3. Literature Review:
This part of research provides in-depth review of literature that is
related to impulse buying: definitions and characteristics of
impulse buying and normative assessments of impulse buying
Behaviour as well as factors and cues influencing impulse buying
Behaviour.

3.1 Impulsive Buying Behaviour:


Consumers possess differing decision making criteria,
furthermore; these criteria have been generalized by marketers as
variety seeking, quality seeking, brand consciousness, information

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seeking, price sensitivity, novelty or fashion seeking and many
more. These styles are formulated in a consumer through cognitive
and rational means, and they always have an enduring effect on a
specific consumers purchasing pattern and is referred as
purchasing approach.

It has been explicated that prior to the 1980s the observers of


consumer Behaviour had formulated a conception that the core
element based on which impulsive Behaviour is demonstrated by
a particular consumer is the product itself. However, this
elucidation changed considerably when Rook (1987) proposed that
consumer exhibit impulsiveness in their purchasing pattern not on
the grounds that a product compels them, but on the phenomenon
that the consumers possess an unlearned and un-programmed
propensity of indulging in impulsive buying. Furthermore, this
perceptive enabled the theorists to formulate the Dupont
methodology of gathering primary information. Additionally, this
particular paper represents impulsive buying as the acquisition or
procurement of those goods or services for which a consumer has
not made a conscious effort prior to actually purchasing them.

Beatty and Ferrell (1998) have contemplated on the notion that


impulsive Behaviour is shown by consumers because they are
unintentionally tempted towards a product which lacks a

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meticulous understanding of pre or post purchase Behaviour. They
also mentioned that, such type of consumer Behaviour lacks the
information gathering and substitute assessment phases of the
consumer decision making model which means that after need
recognition a particular move instantly towards the purchasing
phase skipping the aforementioned stages.

3.2 Forms of Impulsive Behaviour:


The marketers have coined various forms of impulsive Behaviour
which namely are; reminder impulse, planned impulse (impulsive
Behaviour which results from a pre-planned purchasing criterion),
pure impulse, and suggestion impulse. Reminder impulse
accentuates that a consumers purchases a commodity by vaguely
recalling that the commodity was included in the first phase but
was not included in the shopping catalogue. Planned impulse
emphasizes that a consumer exhibits this Behaviour while
purchasing through a per-planned criterion and is unintentionally
attracted to a commodity and purchases it. Pure impulse entails the
notion that a consumer when becomes aware of a product or a
brand, then an immediate yearning to acquire it triggers the
impulsive Behaviour. Finally, suggestion impulse states that a
consumer observes a particular product and despite of a non-
existent prior need intends to purchase it.

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3.3 Reasons of Impulsive Behaviour:
The significance of comprehending the necessity of contemplating
consumer Behaviour by the theorists and marketers lies in
identifying the reasons and motives based on which consumers
exhibit particular buying pattern, specifically the impulsive
pattern. Furthermore, Young and Faber (2001) have specified the
reasons and classified them as personal and environmental
features. The personal features as they have explained entail a
consumers mood, intention to reduce the tension, to seek a reward,
as a hobby, to socialize, and lesser control. The environmental
features physical store ambiance, shelf placement, product
packaging, and product imagery. Moreover, Beatty and Ferrel
(1998) have provided further features like product range at the
store, POS elements, music influences the consumers in myriad
ways which also them to exhibit impulsive Behaviour.

3.4 Factors Influencing Impulse Buying:


Some researches indicated factors affecting impulse buying
Behaviour and external as well as internal factors can result in
impulsive buying and some decisions are been made at purchasing
point. The impulse buying decision factors include pricing,
packaging, placing, and interest in product.

3.4.1 Internal Factors:

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Effect of a person and mood has been a well-known variable that
influences the impulsive purchasing (Gardner & Rook, 1988;
Rook, 1987; Rook & Gardner, 1993). Gardner and Rook (1993)
found out that 85% of their study, respondents had indicated a
constructive mood would be more positive to impulsive buying
than goes with the negative mood. Some Respondents stated that,
when they are in a positive mood, the feeling they had that time is
very unconstrained, the aspiration to reward themselves, and
higher energy levels. Gotwald and Weinberg (1982) initiate that
people with the mood of impulsive buying exhibited superior
feelings of enjoyment, eagerness, and happiness while Donovan
and Rossiter (1982) initiate that satisfaction was positively
connected with a like hood of lavishness (Jiyeon Kim 2003,p.16).

3.4.2 External Factors:


In previous researches visual merchandising or physical
attractiveness is more important than merchandise quality, price,
and selection.

3.4.3 Situational Factors & Impulsive Buying:


The other external factor that tends of bring out the unplanned
buying is the situational factors, because when customer comes to
the shopping environment at the time of any situation they come

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in contact with the particular stimuli visual or physical (product or
promotion) and due to this customer go for the impulse buying. At
that particular moment the customer feels the need to purchase
specific product which has attracted his/her attention (Young
2000). Some of the researchers put together more importance to
the individual description of customer believing that these
individual acts are consistent in specific conditions. On the other
hand, situational variables stress that reliability in actions alter
depends on situation.

Moreover, the chances of unplanned buying increases when the


customer has more time available for shopping (Herrington and
Capella, 1995; Iyer, 1989; Iyer et al., 1989; Nicholls et al., 1997;
Ani & Radas, 2006(a), Underhill, 1999) most important when you
dont have any buying task (Beatty & Ferrell, 1998). The other
thing that motivates the consumers are the price discounts or sales
schemes (Parsons, 2003; Virvilaite et al., 2009); accessibility to the
stores and Behaviour of sales staff (Aylott& Mitchell, 1998) and
also the location of the store (Hart & Davies, 1996).

The product design, the approach the products are being displayed,
striking colors, aroma or music can gain the shoppers attention by
placing them in a such good mood and stimulating the
collaboration with the store atmosphere and thus unplanned buying

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occurs (Tai & Fung 1997; Oakes, 2000; Hart & Davies, 1996;
Donovan & Rossiter, 1982; Verplanken&Herabadi,2001).

3.4.4 Customer Segmentation in Terms of Impulsiveness:


Market segmentation and relation between situational factors and
impulsive buying Behaviour it will consequently expound the
significant research on consumer typology in terms of purchasing
impulsiveness. Since unplanned and planned purchasing Cobb and
Hoyer (1986) ascertain three customer categories: planners (do
purchase with the stated plan, brand and products category),
Partial planners (to some level planned purchase of product
regardless of specific brand) and impulsive buyers (neither plan
product category nor brand). Moreover, in terms of buying
practices and Behaviour.

Women consumer have a capacity of exhibiting greater instances


of impulsive Behaviour as compared to the male consumers.
Nevertheless, female consumers are essentially more planned in
their shopping approach despite of this fact they indulge in
impulsive Behaviour.

Conceptual & Theoretical Framework:

3.5 Conceptual Framework:

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The concept of impulse buying is defined multiple times in
previous researches by different researchers. Impulsive buying
Behaviour is expressed as an instantaneous purchasing response
(Rook & Fisher, 1995) exhibited without any earlier buying
preference towards a particular product or brand (Beatty & Ferrell,
1998). The phenomenon of impulsive buying implies that an
individual indulges in impulsive buying unintentionally because
the process of evaluating a products benefits is negligible in this
form of buying Behaviour.

Sales
Promotion

Emotional
Attractive Price H4 Attachment

H3 H5

Visual H2 BUYING Electronic


Merchandising H6 Media
BEHAVIOR

H1

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3.6 Theoretical Framework:
One of the main consequential factor that influences the consumer
buying pattern is the impulse buying an abrupt controlling and
insistent urge for buying, abrupt and immediate with no prior
intentions for shopping, either ends up in buying a specific product
or certain category of product to fulfil a buying task.

Beatty and Farrell have defined the impulse buying propensity


tendency to react quickly at a given incentive, without planning and
evaluation of consequences.

4.2.1 The Nicosia Model:


This research is mainly focused on the well-known economic
model Nicosia Model. Frasesco Nicosia, a famous motivation
researcher carried-out the influential and comprehensive model
which deals with the buyer-Behaviour. Nicosia, has used the
techniques of basic flow charting and categorizes several stages
in decision process of buying. It focuses on the mode of
communication between a consumer and a brand. Buying process
starts with the need of the consumer, it can be driven by the
marketer (advertisements, promotions etc.) or from internal
stimuli. Second stage of this model is gathering information
related to the product which has attracted consumers attention.
Collection of information is a critical point because on the basis

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of this information, a consumer can make a judgement decision.
Third stage is evaluation of alternatives, here consumer focuses
on the attributes of the product and categorize them separately.
For example, if consumer wants to buy a mobile phone than
desired attributes would be better camera, battery life etc.
Because consumer pays close attention to attributes, marketers
take the advantage and according to market segmentation they
promote specific attributes. Through this customer develops a set
of brand beliefs and start differentiating according to the
attributes. Fourth stage is purchasing decision, on behalf of the
study which consumer already did in previous stages, these
factors help in finalizing the purchasing decision. Last stage is
post purchase Behaviour. It is not the end that consumer has
already bought the product, however it is the responsibility of
marketer to analyze the post purchase Behaviour because
customer tends to say good things for a product if they are
satisfied.

4.2.2 Theory of Reasoned Action:


The theory of Reasoned Action is basically an improvement and
extended theory on Information Integration Theory formed by
Martin Fishbein and Icek Ajzen. Theory of Reasoned Action is
focused on Behaviour. However, this theory states that there is
involvement of situations (or factors) that creates the boundary for

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influence of attitude towards Behaviour. Let suppose, if our
attitude driven us to go out for a movie but do not have money,
thus, lack of money is the factor which will detain away to go to
movie. Therefore, this theory forecast Behavioural intention and
also highlight those factors that stops the influence of attitude on
Behaviour. There are two main elements of this theory, attitude
and norms (also known as the expectations of other people).

This theory proves that consumers are always choose to act in


seeking their best interests and are rational actors. During the
decision-making process being specific is more crucial. A
consumer comply with specific action when specific result is
expected, however, there will be ability to change the mind and go
for different action plan. Marketers are trying their level best to
comply with this theory and shows consumer what they are
expecting from specific product. For example, Axe Body Spray
efficiently played with this concept by bridging its product with
women desirability. Secondly, this theory also focuses on the
importance of consumers going through the sales pipeline. There
are long lags between completion of action and initial intention
because it gives consumers plenty of space to reconsider the
outcome of the purchase.

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4.2.3 Motivation Need Theory:
Abram Maslow introduced his theory on hierarchy of needs in
1943 and from the beginning it was becoming popular in the entire
psychological community. In this theory, it is proven that action
of people for fulfilling their needs are based on pyramid priority
system divided into five parts. This is structured as: physiological
(survival), safety, love, esteem and self-actualization. Maslow
concluded that there is a hierarchical order between these needs.
It is also proposed by the progression principle that in order to shift
towards upper-level need, lower-level needs should be met. The
deficit principle claims that an individual takes such actions which
will result in satisfying unmet needs because there will be no
motivation if once a need is satisfied. The Motivation is the
fundamental factor that encourages a person in fulfilling their
needs. These five needs have direct impact on consumer
Behaviour and causes internal pressure. With delivering the
awareness to a product, every firm focuses to launch such
advertisements through which it creates its position in the
hierarchy of needs. Most of the times messages drafted by
companies are in such manner that it caters consumer needs or
their urgency. Nowadays, marketers are reacting more effectively
towards this theory because they are keep on creating artificial
need for consumers. Initially, consumers seek to fulfil their basic
needs (physiological needs) at the bottom and when an individual

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reaches the full potential of life, it is self-actualization at top.

3.7 Research Hypothesis:


From the discussion above, we can formulate hypotheses to be
tested using T- test distribution.

H0 = There is no relationship between visual merchandising,


attractive price, sales promotions, emotional attachment, electronic
media and Impulsive buying Behaviour of women in Karachi.
H1 = There is relationship between visual merchandising,
attractive price, sales promotions, emotional attachment, electronic
media and Impulsive buying Behaviour of women in Karachi.
H2 = There is an impact of Visual merchandising on impulsive
buying Behaviour of women in Karachi.
H3 = There is an impact of Attractive price on impulsive buying
Behaviour of women in Karachi.
H4 = There is an impact of Sales promotions on impulsive buying
Behaviour of women in Karachi.
H5 = There is an impact of Emotional attachment on Impulsive
Buying Behaviour of women in Karachi.
H6 = There is an impact of Electronic media on impulsive buying
Behaviour of women in Karachi.

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4. Methodology:
Focus of this paper is to study the direct impact of Visual
Merchandising, Attractive Price, Sales Promotion, Emotional
Attachment and Electronic Media on Buying Behaviour. Here, the
variables visual merchandising, attractive price, sales promotions,
emotional attachment and electronic media in departmental stores
will be compared to normal shops. Multiple regression model should
be more suitable in order to study the relationship of these variables.
Visual merchandising, attractive price, sales promotions, emotional
attachment and electronic media will be independent variables
whereas Impulsive buying Behaviour would be dependent variable.

4.1 Research Approach:


The approach of this research is quantitative, where the cross-
sectional data will be gathered through primary sources and multiple
regression analysis will be carried out on the collected data to find
interdependencies of dependent variable or y, which is Impulsive
Buying Behaviour and dependent variables visual merchandising
(x1), attractive price (x2), sales promotions (x3), emotional
attachment (x4), and electronic media (x5).

4.2 Definition of Variables:

5.2.1 Impulsive Buying Behaviour:

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Impulsive buying is defined as an unplanned and instantaneous
purchase in the absence of any prior plan of shopping (Kim, 2003).

According to Stern (1962) Impulsive Buying Behaviour is


exhibited when a consumer make an inadvertent decision of
buying a good or service in contrast to making his decision with
regard to acquiring a commodity on diligent information searching
and substitute assessment. He also regarded impulsive purchasing
as synonymous terminology to impulsive buying.

Julie Z. Sneath (2009) also provide similar explanations and


considered impulse buying to be emotional in essence, the paper
describe impulse buying as spontaneous, non-deliberate or
unstructured decision to make a purchase which shows signs of
being more emotionally driven when compared to more thoughtful
decisions.

5.2.2 Visual Merchandising:


Visual Merchandising is defined as a set of tools and techniques
which are used to exhibit visual elements in an efficient way to draw
customers attention. Visual elements includes signage, colors,
positioning, store layouts, lighting etc. In addition, these are
considered as a way of visual communication in a market setting.

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According to Pegler (2006) attractive and efficient lighting in the
store is very effective and considerably low-cost technique in
attaining recognition and attention of a buyer. Moreover, prioritizing
a proper choice of lighting improves the gesture of surroundings.
Lighting influence the manner in which the space inside the store is
perceived and enhance the overall aura of the setting. Efficient
lighting techniques helps the retailers to create a pleasant
environment.

The main objectives of lighting are;


To attract customers attention
To develop a suitable mood for the merchandise
To amplify a positive visual image of the merchandise
To make the merchandise more accessible for thorough
examination from costumer

Another significant element of merchandising is interior design of


store as an engaging and appealing store design can have a positive
of impact on brands image and therefore affects profitability.
Signage is also a crucial factor of merchandising as it has broadened
its scope and applied to create distinctive outlook these days rather
than just providing primary information

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5.2.3 Attractive Price:
Another important factor is attractive pricing. Mostly, consumers
attract towards product line pricing or product bundling pricing.
Stores give consumers the choice to pay little more in order to get
options or extra features.

Pricing has a great impact on the Behaviour and perceptions of a


consumer (R. Hamilton & Chernev, 2013). It directly influence the
way how consumer perceive the level and fairness of the price
charged by retailers. If there is uncertainty that whether the charged
prices are justified, then consumers can delay their buying and there
is chance that the retailer can even loose his costumers.

Retailers and Producers often overestimate the premium price


because of the lack of understanding of price image formation of
consumer (Leeflang and Wittink, 1996). The prior experiences of
consumer with a certain product provides a reference point and
defines the level of adaption that the consumer is willing, compared
to how the new incentives or features would be perceived by him
(Kalyanaram & Winer, 1995).

5.2.4 Sales Promotion:


Economists have carried out numerous studies to ascertain that why
the use of sales promotions is essential for retailers. Intertemporal

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Price Discrimination (IPD) is found to be one of the factors which
motivates retailers to apply this particular strategy, temporary price
discounts are introduced by retailers to differentiate between
heterogeneous consumers (Conslik et al., 1984).

When used efficiently, sales promotion strategy, sometimes can


even influence consumers choice of brands. Psychographic
variables of the personality brand and costumer has significant
impact on the relationship between buying Behaviour and point of
sale promotion. An additional factor is the negative effect that
owners of small shops face due to their inability to provide
competitive promotions as the bigger departmental stores, this gap
can have an impact the buying Behaviour of costumer, and
subsequently resulting in larger stores generating more profits.

The larger departmental store or super marts usually have the liberty
to initiate several types of sales promotions of high amount, like
price cuts, bonus packs, price schemes, free samples etc. which leads
to irrational buying Behaviour in costumers. These sales promotions
also results in repurchase Behaviour in costumers. (Ndubisi and
Moi, 2005).

5.2.5 Emotional Attachment:


A costumers attachment to a certain product is described as the

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charismatic emotional bond a costumer figures out with a product.
This type of attachment could be because of the brands
philanthropic activities or a special memory of costumer etc. This
phenomenon exhibit the emotional attachment or relevance of a
costumer to an object as he finds that object special and it means a
lot to him. Therefore, a costumer experience emotional gratification
when that object is available and hence affects the buying
Behaviour.

5.2.6 Electronic Media:


The decision process in a human mind is affected or influenced by
both the conscious and unconscious part of the brain, while the
impulsive Behaviour is dominated by unconscious part which is
rather an uncontrolled part of ones brain. The latest tools and
advancements in electronic media and marketing enables the
marketers to target the subconscious portion of ones brain, this
types of marketing sets the individual in a direction without him or
her being aware of it, for influencing decision making (Park &
Lenon, 2006). The subconscious mind is particularly targeted by the
current marketing and branding trends in TV commercials, social
media etc. We will try to find the relation between or the effect of
electronic media on the impulsive buying Behaviour of urban
women in leading departmental stores of Karachi.

Research Methods MEF 2.2 27


4.3 Data:

5.3.1 Instrumentation:
The nature of this study is quantitative where a cross-sectional
data will collected from primary sources in a single time reference.
The instrument for data collection in this research is going to be
survey questionnaires which will be circulated in leading
departmental stores of Karachi among different female shoppers
of different ages and backgrounds to get responses.

The development of the instrument is going to be in two stages,


where a preliminary questionnaire will be created initially and will
be examined for any kind of obscurity and vagueness by getting
responses from the women. The questionnaire will be modified
and improved by reducing found vagueness in the second stage.
Questionnaire will contain a set of approximately 21 close-ended
question related to impulsive buying Behaviour (dependent
variable) and five independent variables i.e. visual merchandising,
attractive price, sales promotion, emotional attachment and
electronic media. Each of which could be responded with strongly
disagree to strongly agree having weightage of 1 to 5, respectively.

The reliability of the developed instrument will be scrutinize by


calculating Cronbachs Alpha regarding the variables of the study

Research Methods MEF 2.2 28


by using R-Studio software package. According to Nunnally
(1978), the Cronbachs Alpha coefficient of dependent and
independent variables of more than 0.7 can be considered as
reliable.

5.3.2 Population and Sample:

Women having the ages between of 18 and 50 years, belonging to


middle and upper middle class, regardless of their occupation i.e.
working, non-working, student etc., living in urban setting and
shopping from leading departmental stores are the population for
our study. A sample size of 200 has been chosen to collect the data
for this research.

5.3.3 Determination of Sample Size:

Data collection will be done by applying non-random (convenience)


sampling method. The frequent use of this particular sampling
method in similar studies encouraged us to use the same in this
research. Sample size of 100 was determined by the following
formula proposed by Tabachnick & Ffidell (2001):

N 50 + 8m

Where; N=Sample size and m=number of independent variable.

For this study sample size of 90 or more was determined, as we have

Research Methods MEF 2.2 29


five predictor variables in our study, but for increasing accuracy a
total of 200 questionnaires will be circulated.

4.4 Econometric Approach:


A multiple regression analysis will be carried out on the collected
data from sample using the R-Studio software. The approximation
of structural equation is significant as it provides us with a crucial
intuition or sense on the interdependencies of variables. In the
presence of plural regressors in the regression equation
simultaneously and hence to examine the effects of all the
regressors in conjunction on the regressand (Brooks, Introductory
Econometrics, 2008). The following equation can be deduced for
p explanatory variable.

Yi = 0 + 1xi,1 + 2xi,2 + 3xi,3.+ 4xi,4 + 5xi,5 + i

Where; Y is the dependent variable in our case impulsive buying


Behaviour (IMB), x1, x2 , x3, X4 and x5 explanatory variables which
are Visual Merchandising (VM), Attractive Price (AP), Sales
Promotion (SP), Emotional Attachment (EA), and Electronic
Media (EM) respectively and i is the residual error. We can also
rewrite above equation as follows to make more intuitive sense
relevant to this study.

Research Methods MEF 2.2 30


(IMBi) = 0 + 1(VMi)+ 2(APi) + 3(SPi).+ 4(EAi) + 5(EMi) + i

The coefficient estimates 0, 1 5 in above equations are called


partial regression coefficient, which measures the partial reaction
of the given explanatory variable on the explained variable. For
example; 1 will quantify the effect of virtual merchandising on the
impulsive buying Behaviour after eradicating the effect of other
explanatory variables. In other words, each coefficient measures
the average change in the regressand holding all the regressors
constant at their average values.

5.4.1 Estimates of the Model Parameters:


The estimates of the coefficients are the values that reduces the
sum of squared errors for the sample. The letter b is used to
represent a sample estimate of a coefficient. Thus b0 is the
sample estimate of 0, b1 is the sample estimate of 1, and so on.

5.4.2 Predicted Values and Residual:


Following equation can be used to predict values from the model;

(IMBi^) = b0 + b1(VMi)+ b2(APi) + b3(SPi).+ b4(EAi) + b5(EMi) +


i

Where; the b values come from statistical software and the values
of independent variables are specified by us. A residual error (i)

Research Methods MEF 2.2 31


is the difference between an actual and a predicted value of y,
which can calculated as follows:
i = (IMBi) - (IMBi^)

5.4.3 Significance Testing of Each Variable:


To assure the accuracy of our model, it is necessary to test
significance of each variable, so that only those explanatory
variables remain within the multiple regression model which are
usefully contributing to the model. In other words, the idea is to
keep only those x-variables in the model which assist to project or
helpful in the explanation of y-variable. To determine which
particular x-variables are helping us predict y-variable and which
ones can be eliminated from the model, we are going to use t-test
of significance.

We have five x-variables in this study. For instance, to find out if


variable x1 is worthy regressor in this model we can check the
following hypothesis.

H0: 1 = 0
Hx: 1 0

Research Methods MEF 2.2 32


In case null hypothesis being true the variable x1 will not have any
impact on y and hence it will be eliminated from the model as there
is no evidence of linear relation between explained and explanatory
variable. The test will be done by using statistical software, which
will report p-values for all coefficients in the model. Every p-value
will be based on a t-statistic and can be computed by:

t*= (sample coefficient - hypothesized value) / standard error of


coefficient

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