CONSUMER BEHAVIOR IMPULSE BUYING BEHAVIOR

SUBMITTED TO: PROF.SHALINI SINGH

SUBMITTED BY: ANJALI SRIVASTAVA-JIML-10-015 ADITI SINHA-JIML-10-FS-001 DEEPTI MAHAWAR-JIML-10-RM-001 GEET HEMNANI-JIML-10-RM-002

Introduction
Impulsive purchasing, generally defined as a consumers unplanned purchase which is an important part of buyer behavior. It accounts for as much as 62% of supermarket sales and 80% of all sales in certain product categories. Though impulsive purchasing has attracted attention in consumer research. Unfortunately, there is a dearth of research on group-level determinants. This research suggests that the presence of other persons in a purchasing situation is likely to have a normative influence on the decision to make a purchase. The nature of this influence, however, depends on both perceptions of the normative expectations of the individuals who exert the influence and the motivation to comply with these expectations. Peers and family members, are the two primary sources of social influence, often have different normative expectations. Thus, it has been evaluated two factors that are likely to affect the motivation to conform to social norms: a) The inherent susceptibility to social influence and b) The structure of the group Group cohesiveness refers to the extent to which a group is attractive to its members. The theory proposed by Fishbein and Ajzen helps conceptualize these effects. This theory assumes that behavior is a multiplicative function of expectations for what others consider to be socially desirable and the motivation to comply with these expectations.

RESEARCH PLAN RESEARCH DESIGN:

A research design is a very important part of research. It is a master plan specifying the methods and procedures for collecting and analysing the needed information.

EXPLORATORY RESEARCH:
Having an effective exploratory research, the information gathered will act as a platform to conduct a non biased and thorough conclusive research.

1) Secondary Literature Study:

While keeping in mind the validity and authenticity of the information, data was collected from websites and printed documents (journals, news articles and books). To gather the required information for this study, we used two various sources of data. We followed the secondary literature review. We found various research papers and different articles weve found on internet which helped us a lot to achieve relevant research objectives. The analysis of secondary literature also helped the research team to know different possible aspects of this research which probably was within veil until now.

2) Descriptive design: (CROSS SECTIONAL)

Here we have done the descriptive design survey with the help of questionnaire that was formed on the basis of research objectives. We have done the descriptive design survey that by getting filled questionnaire by respondents. Here we have formed various research hypotheses. Then we have tried to describe the sample that we are going to select to test the various research hypotheses by deciding who is going to provide the information for testing, what type of questions to be asked to these respondents, how we can approach to these respondents, how we will select the sample of these respondents, when we will approach these respondents, and in which way we will collect the information. We chose to use cross sectional descriptive design because of the constraint of time. These surveys are used to study a sample of a population at a single point in time.

Sampling
Target population: As mentioned above, our target population would be college going students (both girls and boys.) and the people going for shopping of the concerned brands Sampling Frame: Our sampling frame would be the Malls of Lucknow- Fun Republic,Saharaganj,River Side etc.

CONVIENIENCE SAMPLING and shopping mall intercept would be used as

the sampling design to collect the information.

QUESTIONNAIRE FORMULATION
The questionnaire formulation was done keeping in mind the relevant concept of scales and scaling technique.

SCALE OF MEASUREMENT:
A scale may be defined as any series of items that are arranged progressively according to value or magnitude, into which an item can be placed according to its quantification. Its a spectrum of series of categories. The purpose of scaling is to represent, an items place in that spectrum. Measurement scale is used to measure a variable so as to the information collected is mathematically analyzable.

Nominal scale : it is a simple scale where the numbers assigned to objects serve
as labels for identification or classification. This scale has been used in case of gender, age groups, monthly income groups, occupation and family structure.

Interval scale: this scale not only arranges objects or alternatives according to their magnitude but also this ordered arrangement in units of equal intervals. It gives an idea about the distance between alternatives. The distance is fixed but zero is arbitrary. It is a rating scale.

SCALING TECHNIQUE:
Summated ratings method: the likert scale was used in this research. It is a unipolar scale with neutral mid point. We have made use of five point likert scale in designing the questionnaires. With 4- Strongly Disagree 3- Disagree 2- Agree 1-Strongly Agree

LITERATURE REVIEW 1. Personal impulse buying

It began to investigate impulse buying in the beginning of 1950. Baum1951addressed that consumer was stimulated to impulse buying after they came into the store. Stern1962was the first scholar to suggest impulse mix to classify four kinds of impulse buying: pure, remind, suggest, and plan. Although most of research thought the mean of impulse buying was the same with unplanned buying. Rook 1987 argued successfully that impulse buying should be depicted it as extraordinary, exciting, hedonically complex and compelled buyer action. Beatty and Ferrell 1998 constituted a model as a precursors of impulse buying. They argued that situational variables time available and money available and individual difference variables shopping enjoyment and impulse buying tendency were found to influence a set of endogenous variables, including positive and negative affect and so on. Thomas 1997 also points to two emotional shifts that affect the buying habits. One is an increase in stress levels because consumers are out of their daily routine. The other is an increase in levels of anticipation and excitement. Crawford and Melewar 2003 explained retailers must create an environment that minimizes inherent stress and accentuates or at least maintains natural levels of excitement ,while also virtuously motivating impulse purchasing by reducing or eliminating barriers to purchase. In decades, scholars started to transfer the views on the characteristics of different consumers buying trends Engle, Blackwell and Miniard,2001 Beatty and Ferrell,1998 Wood,2005 the influence on impulse buying by different situation or culture Tai and Tam,1997 Mattila and Wirtz, 2001 Wood,2005 and began to try how to predict the potential of consumers impulse buying Kelly and Smith,2000 Omar and Kent,2001Crawford and Melewar,2003Robert and Jones,2001.

2. Social view of impulse buying

Hausman 2000 argues that impulse buying is a hedonic need predominantly motivated by achievement of higher order needs loosely grouped around Maslowshierarchy of needs. Efforts to satisfy the higher order needs in his hierarchy lead to different types of impulse buying behavior. He suggests that normative evaluations can reduce impulsive purchase behavior. Consumers act to suppress their nature impulsive traits to act in accordance with social norms. Crawford and Melewar proposed that given consumers basic value, attitude and behavior norm transform slowly, consumer would alter their view about surroundings and lifestyle. It means that consumer was devoted to be in the cycle of fashion and fad. Fashion oriented impulse buying occurs as consumers see the product in a new style and decide to buy it as refer to the awareness of the fashionability on an design or style and express their self-identity (Phau and Lo,2004) With the exposed frequency of fashion, different groups result to conformity and make fad be accepted by social

members. As a matter of fact, all things what consumers care are the social function and meaning, nor the value and essential function of products(Phau and Lo,2004). Consumers usually be influenced because of chasing fad and get pressure by social members so that they would make herding behaviors(Freidman ,1984) Wood 2005 proposed that retailers should not only care about the purchasing behavior in retail environment, but also understand consumers society more . Impulse buying would be influenced from discretionary income positively. Due to satisfy individuals social needs, consumer would make more impulse buying which make them feel excited and gratification. Consumers society includes consumers purchasing experience and characteristics of shopping environment. Peck and Childers 2006 started to address the times of touching with people by people would make more impulse buying, they found customers touch more with salesmen, they would increase the possibility of impulse buying. It explains impulse buying should relate with touch between people by people.

3. Herding view of impulse buying

Asch (1952) was the first psychologist scholar who proposed the herding behavior. However, most research investigates it on psychology and finance. Then, there are few researches on the marketing. Herding is defined as a group of consumers following each other into the same behavior over some period of time (Sias, 2002) Although all decisions they decide dont follow what they think on their mind., consumers would be influence more or conformity from other people and increase the frequency of impulse buying behavior (Lascu and Zinkhan, 1999Burnkrant and Cousineau, 1975). The herding research can be divided into four categories- informational cascades, investigative herding, reputation herding, fads, and characteristic herding(Bikhchandani and Sharma, 2000Sias, 2002) Baron and Byrn find consumers herding was due to people hope to be accepted and liked so that they make two conditions, one is Normative social influence, the other is Information social influence. Normative social influence means people expected to be accepted, admired and attempt to alter their behavior to satisfy others exceptions. Information social influence means when consumers come into a complex situation they would seek information or others ideas as the reference for deciding, due to simplify deliberating decision, and cause to rely on members and conform to members behavior. As a matter of fact, individual ponders on their purchasing decision, they usually adopt members or take a similar plan with social members in the cause of getting recognitions and satisfy the expectation which social members put on the role Wilkie,1994 Macinnis,1997 . That was the behavior pattern of consumers herding.

4. Culture study
Tai and Tam 1997compares the lifestyles of female consumers in Hong Kong, Taiwan, and China, which together make up Greater China. Their investigation revealed that significant differences exist among the three groups of female consumers in nine different areas. Taiwanese female consumers are especially brand-conscious and their consumption choices were not always based on function, but more on the prestigious image of imported foreign brands. Women in China, especially the younger ones, were quickly adopting new values and Western ideas. Luna and Gupta (2001) use the measures of evaluation most representative of ethic thought process to elaborate consumers culture, and proposed national culture is the most suitable way to discuss. Chinese culture advocates everything should stand in harmonious, judging the hour and sizing up the situation. it eliminate to bite more one can chew and consider to restrain their affection and emotion. Aaker and Maheswaran (1997) classify Chinese culture for four groups: a Integration: To emphasize on tolerance , harmonious, non-competition and intimate relationship; bConfucianism : to emphasize on respecting for seniority, shame and pay much attention to reputation; c A sense of compassion: empathy, patience polite and a sense of justice; and dMoral :To emphasize on moderate and utter innocence. Chinese traditional culture emphasizes thrift, diligence, and value consciousness. Chinas ruling party over the past four decades has also been extolling the virtue of thriftiness and discouraging a hedonic life style. As a result, it is socially desirable to save money and be a meticulous shopper in China..

Data Analysis The Reliability Analysis N 500 % 100.0

Cases Valid Exclud 0 .0 ed(a) Total 500 100.0 a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's N of Alpha Items .981 29 The data was found to be 98% reliable.

40.0%

g en der
m ale fem a le

30.0%

Percent

20.0%

29.83% 27.48%

28.99%

30.92% 27.86% 26.89%

10.0%
14.29% 13.74%

0.0% 20 -3 5 35-50 5 0-65 6 5 an d ab ove

ag e

Our sample size was 500 individuals of which 164 were aged between 20 to 35. 135 individuals were aged between 35 to 50 years. 130 individuals were aged between 50 to 65 years while the rest were above 65years. We have taken the age group as the basis of our analysis.

Price and effect on impulsive behaviour

100.0%

age
20-35 35-50 50-65 65 and above

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 53.8%

20.0%

45.5% 38.6% 24.6% 17.5%

0.0%

0.7%

strongly agree

agree

disagree

attractive_price_affects_buying

The analysis was done using the different age groups and how different factors influence the impulse buying behaviour of the individual. It is seen that the price plays a very important role in effecting the impulse buying behaviour amongst the age group 20 to 35 years of age. Various reasons can be attributed to it. Individuals between age group of 20 to 35 are either students or have newly started earning. Further such an age group consists of individuals who are bachelors or newly married with usually no kids and thus have high disposable income. But the income is not very high as they have just started earning or are students. Thus if they are offered something at lower prices they are going to buy it. We see that impulse buying behaviour decreases with age in terms of attractive prices. As the individuals move to 35 to 50 bracket they usually have kids and need to plan out their activities, thus they have their budgets fixed thus less likely to go in for impulse buying behaviour.

gender
male female 60.0%

Percent

40.0%
68.5% 63.7%

20.0%
36.3% 31.1%

0.0%

0.4%

strongly agree

agree

disagree

attractive_price_affects_buying

Difference in impulse buying behaviour is also noticed in terms of gender. Females are more likely to go in for impulse buying behaviour as compared to males as can be inferred from the data. Thus the shopkeepers must also take into account the differences in gender and placing of the product so that it can influence both the genders.

Discount and effect on impulsive Behaviour

100.0%

age
20-35 35-50 50-65 65 and above

80.0%

Percent

60.0%

40.0%

81.8% 71.8% 61.4% 54.5% 45.5%

20.0%

38.6% 28.2% 18.2%

0.0% agree disagree

discount

Further discounts are likely to induce individuals between age group of 20 to 35 to go in for impulse buying behaviour. The individuals in this age group tend to focus more on consumerism and have a high demand for things even though they may not be very essential. Thus discounts offer them an opportunity an opportunity to buy more at lower costs. Similarly they are the most influenced by the various schemes which marketers come out with. The impulse buying behaviour in terms of discounts as we see reduces with age with only 38.6% individuals above 65 years of age go in for impulse buying.

Effect of advertisement on impulsive Behaviour

100.0%

age
20-35 35-50 50-65 65 and above

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 53.8% 46.2%

20.0%

38.6% 24.6% 17.5%

0.0% agree disagree

advertisement

The advertisements are more likely to have influence on individuals between 20 to 35 years of age and this influence keeps declining with age with only 75% getting influenced by advertisements and go in for impulse buying behaviour and only 53% of individuals getting influenced by advertisements. Indias largest consuming class population of about 50 million (urban, top three socio - economic classes) is in the age band of 20-35 yrs. Most of them behave more like teenagers who are just about turning 15, as thats how long it has been since Indian markets have been liberalised. The same goes for the brands as well. As a society held back by scarcity and a self restrained value system built around it, suddenly opens up to the pangs of desire, in their attempt to be attractive to these consumers, brands too have realised that being youthful is the way to go.

Effect of promotional activities on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 53.8% 46.2%

20.0%

37.1% 24.6% 17.5%

0.0% agree disagree

1.4%

strongly disagree

promotional_activities

The same trend can be observed in other promotional activities with youths getting most affected by it as being about 82% of youths being affected by promotional activities. Those between 35 to 50 years of age are also influenced by the promotional activities. Thus the marketers must try to focus much on promotional activities as these promotional activities are likely to influence impulse buying thus improving their sales. Even hoardings and pamphlets are also likely to influence impulse buying behaviour in a positive manner.

100.0%

age
20-35 35-50 50-65 65 and above

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 53.8% 45.5%

20.0%

38.6% 24.6% 17.5%

0.0%

0.7%

strongly agree

agree

disagree

packaging

People of all age groups strongly considered packaging as important factor affecting their buying behaviour. 82%, and 75% of individuals are likely to be effected by packaging and their purchase decision is highly influenced by it. Thus the 4 Ps of marketing play an important role in inducing individuals to buy. They are likely to influence the impulsive behaviour and increase the volume of sales.

Effect of emotional attachment on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

40.0%

82.5% 75.4%

60.0% 53.8% 46.2%

20.0%

40.0%

24.6% 17.5%

0.0% agree disagree

emotional_attachment

If the individuals are emotionally attached to the product they are more likely to buy it. Thus the marketers should try to not only sell the tangible product but also provide services related to the individual so that they are more likely to be influenced by it. Giving not just what satifies the customers but providing them more value out of the product will attach emotional attachment to it which induces individuals to buy more of it and be loyal to the product.

Effect of Behaviour of Salesman on impulsive Behaviour

100.0%

age
20-35 35-50 50-65 65 and above

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 49.0%

46.2% 38.6% 24.6% 17.5% 4.8%

20.0%

0.0% agree disagree

strongly disagree

behavior_of_salesman

Behaviour of salesperson towards the customers is important factor influencing impulsive buying behaviour. Further the influence keeps declining with age as the customers start knowing their priorities and are more experienced themselves thus are less likely to be affected by behaviour of salesperson.

Effect of reference group on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

40.0%

20.0%

0.0% agree disagree

reference_groups

The reference group are likely to have most influence on the youth population with about 82% of individuals in the age group of 20 to 35 are going to be influenced by their peers, family members. This age group seeks social acceptance the most and their values and social system gets influenced by the society and the company they are likely to follow. Further such a reference group aspires for a certain social status and thus those individuals who represent that aspirational group are likely to influence the buying behaviour of the individual.

Effect of festival discounts on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

97.9%

100.0%

100.0%

40.0%
74.3%

20.0%
25.7%

0.0% agree

2.1%

disagree

festival_discounts

In India during the festive season the impulse buying behaviour increases and this is noticed in all age groups. All the individuals spend more during festive seasons and thus festive discounts induces individuals to buy more and more. 100% of individuals falling in age group of 35 to 50 and 50 to 65 go for impulsive buying in case of festive discounts. Even 65% of individuals above 65 years go for impulsive buying during such time period. Thus the marketers can likely increase their sales during festivity by coming out with attractive festive schemes.

Effect of popularity of product on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

40.0%

81.8% 75.4% 61.4% 53.8% 46.2%

20.0%

38.6% 24.6% 17.5%

0.0% agree disagree

0.7%

strongly disagree

popularity

The popularity of the product induces the individual to buy impulsive buying behaviour. 81% of the individuals between 20 to 35 years of age go in for buying products which are popular. Buying such products enhances self esteem. While individuals of higher age group go in for products which provide them higher utility than products which are popular as such. 0.3% of individuals of all age group disagree with the fact that they buy the products based on popularity.

Effect of changing trends on impulsive Behaviour

age
20-35 35-50 50-65 65 and above

100.0%

80.0%

Percent

60.0%

40.0%

82.5% 75.4% 61.4% 53.8% 46.2%

20.0%

38.6% 24.6% 17.5%

0.0% agree disagree

changing_trend

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

Conclusion
It is noticed that factors like prices, discounts, changing trends, advertisements affects the impulsive behaviour of the individuals with the greatest affect on the age group 20 to 35 years. The older age groups are less affected by it. In the festivity discounts it was noticed that individuals aged between 35 to 50 ande 50 to 65 years of individuals are likely to be affected by it indicating that the traditions play an important role in influencing the impulsive buying behaviour of the individuals in these age group. Gender wise it was seen that females were more prone to impulse buying than males.