A STUDY ON IMPULSE BUYING BEHAVIOUR OF...

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Volume 4, Number 3, July September’ 2015 ISSN (Print):2279-0934, (Online):2279-0942 PEZZOTTAITE JOURNALS SJ IF (2012): 3.735, SJ IF (2013): 5.020, SJ IF (2014): 5.996 International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1781 | Page A STUDY ON IMPULSE BUYING BEHAVIOUR OF CUSTOMER OF ANAND IN SHOPPING MALLS WITH REFERENCE TO BIG BAZAR AND D-MART Snehal J. Bhatt 30 Dr. Kerav Pandya 31 ABSTRACT Impulse buying is defined as unplanned purchase. Sometimes, impulse buying is situational, conditional. Marketers are always interested in gaining information what makes impulse buying possible. The present study focuses on finding the product, which are most oftenly purchased impulsively and factors responsible for impulsive buying. For the present study, 400 mall shoppers were selected from malls of Anand city and questionnaire is administered. The study find out 8 factors responsible for impulse buying. The study also find out that majority of the customers buy FMCG items impulsively followed by Clothing. KEYWORDS Impulse Buying Behaviour, Shopping Malls, Big Bazar, D-Mart etc. INTRODUCTION An impulse purchase or impulse buying is an unplanned decision to buy a product or service, made just before a purchase. One who tends to make such purchases is referred to as an impulse purchaser or impulse buyer. Research findings suggest that emotions and feelings play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well-crafted promotional message. Impulse buying is defined as ―an unplanned purchase‖ that is characterized by ―Relatively rapid decision- making and A subjective bias in favor of immediate possession‖ (Rook & Gardner, 1993). Marketers and retailers tend to exploit these impulses, which are tied to the basic want for instant gratification. For example, a shopper in a supermarket might not specifically be shopping for confectionary. However, candy, gum, mints and chocolate are prominently displayed at the checkout aisles to trigger impulse buyers to buy what they might not have otherwise considered. Impulse buying can also extend to more expensive items such as automobiles and home appliances. Automobiles in particular are as much an emotional purchase as a rational one. This in turn leads auto dealers all over the world to market their products in a rapid-fire, almost carnival-like manner designed to appeal to emotion over reason. Impulse buying disrupts the normal decision making models in consumers' brains. The logical sequence of the consumers' actions is replaced with an irrational moment of self-gratification. Impulse items appeal to the emotional side of consumers. Some items bought on impulse are not considered functional or necessary in the consumers' lives. Preventing impulse buying involves techniques such as setting budgets before shopping and taking time out before the purchase is made. LITERATURE REVIEW Research scholars have taken a very keen interest in impulse buying for the past sixty years (Clover, 1950; Stern, 1962; Rook, 1987; Peck and Childers, 2006). Abratt and Goodey (1990) found that the examination of impulse buying in supermarkets could be of much interest to the manufacturers as well as retailers worldwide. Piron (1991) attempted to define the impulse buying by reviewing the past research works and found that the earlier studies revealed impulse buying very similar to unplanned purchasing (Clover 1950, West 1951), and forwarded his findings with managerial interests in mind. The managerial interest mainly refers to the focus on the product sales. Therefore in the earlier studies only the purchases were investigated and not the consumers traits. The researchers have suggested that impulse purchases can be further classified depending on the consumer's experiencing emotional and / or cognitive reactions. From 1950 to 2010, many researches have been conducted on impulse purchasing. Some common variables are identified in these researches. The more time an individual has, the longer time he or she spends browsing the shopping environment (Beatty and Ferrell, 1998). Gender has specific influence on impulse buying such as women tend to be more impulsive than men (Giraud, 2001). If consumers are in a good mood, they tend to reward themselves more generously and tend to be more impulsive (Giraud, 2001). The notion of materialism indicates that individuals who use product acquisition as a self-completion strategy tend to be more impulsive (Dittmar, 2001). Young generation is more impulsive than others are, age of buyers from 18 to 40 are generally 30 Assistant Professor, Indukaka Ipcowala Institute of Management, Gujarat, India, [email protected] 31 Associate Professor, C.K.S.V.I.M., Gujarat, India, [email protected]

Transcript of A STUDY ON IMPULSE BUYING BEHAVIOUR OF...

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1781 |P a g e

A STUDY ON IMPULSE BUYING BEHAVIOUR OF CUSTOMER OF ANAND

IN SHOPPING MALLS WITH REFERENCE TO BIG BAZAR AND D-MART

Snehal J. Bhatt30 Dr. Kerav Pandya31

ABSTRACT

Impulse buying is defined as unplanned purchase. Sometimes, impulse buying is situational, conditional. Marketers are

always interested in gaining information what makes impulse buying possible. The present study focuses on finding the

product, which are most oftenly purchased impulsively and factors responsible for impulsive buying. For the present study,

400 mall shoppers were selected from malls of Anand city and questionnaire is administered. The study find out 8 factors

responsible for impulse buying. The study also find out that majority of the customers buy FMCG items impulsively followed

by Clothing.

KEYWORDS

Impulse Buying Behaviour, Shopping Malls, Big Bazar, D-Mart etc.

INTRODUCTION

An impulse purchase or impulse buying is an unplanned decision to buy a product or service, made just before a purchase. One

who tends to make such purchases is referred to as an impulse purchaser or impulse buyer. Research findings suggest that

emotions and feelings play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well-crafted

promotional message. Impulse buying is defined as ―an unplanned purchase‖ that is characterized by ―Relatively rapid decision-

making and A subjective bias in favor of immediate possession‖ (Rook & Gardner, 1993).

Marketers and retailers tend to exploit these impulses, which are tied to the basic want for instant gratification. For example, a

shopper in a supermarket might not specifically be shopping for confectionary. However, candy, gum, mints and chocolate are

prominently displayed at the checkout aisles to trigger impulse buyers to buy what they might not have otherwise considered.

Impulse buying can also extend to more expensive items such as automobiles and home appliances. Automobiles in particular are

as much an emotional purchase as a rational one. This in turn leads auto dealers all over the world to market their products in a

rapid-fire, almost carnival-like manner designed to appeal to emotion over reason.

Impulse buying disrupts the normal decision making models in consumers' brains. The logical sequence of the consumers' actions

is replaced with an irrational moment of self-gratification. Impulse items appeal to the emotional side of consumers. Some items

bought on impulse are not considered functional or necessary in the consumers' lives. Preventing impulse buying involves

techniques such as setting budgets before shopping and taking time out before the purchase is made.

LITERATURE REVIEW

Research scholars have taken a very keen interest in impulse buying for the past sixty years (Clover, 1950; Stern, 1962; Rook,

1987; Peck and Childers, 2006). Abratt and Goodey (1990) found that the examination of impulse buying in supermarkets could

be of much interest to the manufacturers as well as retailers worldwide. Piron (1991) attempted to define the impulse buying by

reviewing the past research works and found that the earlier studies revealed impulse buying very similar to unplanned purchasing

(Clover 1950, West 1951), and forwarded his findings with managerial interests in mind. The managerial interest mainly refers to

the focus on the product sales. Therefore in the earlier studies only the purchases were investigated and not the consumers traits.

The researchers have suggested that impulse purchases can be further classified depending on the consumer's experiencing

emotional and / or cognitive reactions.

From 1950 to 2010, many researches have been conducted on impulse purchasing. Some common variables are identified in these

researches. The more time an individual has, the longer time he or she spends browsing the shopping environment (Beatty and

Ferrell, 1998). Gender has specific influence on impulse buying such as women tend to be more impulsive than men (Giraud,

2001). If consumers are in a good mood, they tend to reward themselves more generously and tend to be more impulsive (Giraud,

2001). The notion of materialism indicates that individuals who use product acquisition as a self-completion strategy tend to be

more impulsive (Dittmar, 2001). Young generation is more impulsive than others are, age of buyers from 18 to 40 are generally

30Assistant Professor, Indukaka Ipcowala Institute of Management, Gujarat, India, [email protected] 31Associate Professor, C.K.S.V.I.M., Gujarat, India, [email protected]

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1782 |P a g e

impulsive (Mai et al., 2003). Culture has an influence on impulse buying at both the regional and the individual levels (Mai et al.,

2003).

Marketers should promote a good store layout to maximize the convenience of the consumer (Crawford and Melewar, 2003). A

well-trained salesperson can decrease frustration by guiding and aiding the consumer in the purchase process and activate impulse

buying behavior (Crawford and Melewar, 2003). Store atmospherics is important to stimulate impulse purchase (Crawford and

Melewar, 2003). Store managers can look at a number of environmental design variables to increase stimulation in their shops.

Impulsiveness sometimes depends on store type (Wong and Zhou, 2003). For example, it has been shown that many impulse

purchases take place in grocery shops.

The availability of money is a facilitator in the impulse buying process (Mai et al., 2003), since it increases the purchasing power

of the individual. If the individual does not have enough money, he or she will avoid the shopping environment altogether.

Consumers have propensity to buy impulsively (Jones et al., 2003). Browsers usually make more unplanned purchases than

nonbrowsers (Crawford and Melewar, 2003). Product price is another variable of impulse buying. Consumers tend to be more

impulsive when there are sales or product discounts, low marginal need for the item, short product life, smaller sizes, and ease of

storage (Wong and Zhou, 2003). The likelihood that a product will be purchased on an impulse depends on the product category.

It has been found that impulse buying occurs more in the case of hedonic products because of the symbolic meaning they convey

(Mai et al., 2003).

Shopping enjoyment is another variable, whereby individuals consider shopping as a form of recreation, do not stick to a buying

list, and therefore, tend to make many impulsive purchases (Sharma and Sivakumaran, 2004). Presence of others increases the

likelihood of impulse purchase. For example, when individuals are in a group, they tend to eat more (Luo, 2004). Individuals who

perceive self-discrepancy try to use material goods to compensate the discrepancy, have impulse buying tendencies (Luo, 2004).

These variables mainly influence the consumers to do the impulse purchase spontaneously.

Jayaraman Munusamy (2010) said that retailers have long realized the power of impulse buying, which had contributed a

significant amount of revenue to their offers. In this study, he examined the role of customer service, store environment, sales

promotion, and store communication and consumer mood in influencing impulse buying. The results of this study showed that

customer service, store environment and consumer mood have significant positive relationship with impulse buying among the

consumers who shop at the Shopping Malls.

RESEARCH METHODOLOGY

―A Study on Impulse buying behaviour of customer of Anand in shopping malls with reference to Big Bazar and D-Mart‖

OBJECTIVES OF STUDY

To study the products which are purchased impulsively?

To study the factors affecting impulsive buying.

To study the effect of sales promotion of impulse buying.

HYPOTHESIS

H0: Gender and product purchased impulsively are not related.

H1: Gender and product purchased impulsively are related.

RESEARCH METHODOLOGY

Table-1

Sample size 400

Type of sampling Convenient

Sampling Unit Customer of Malls

Area of research Anand

Type of research Descriptive research design

Method of Data collection Questionnaires

Type of Data use Quantitative

Sources: Authors Compilation

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1783 |P a g e

Demographic Profile

Table-2

Gender

Total Percentage (%) Male Female

Age 18-25Year 95 74 169 42.25%

26-40 Year 69 47 116 29%

41-55 Year 43 41 84 21%

Above 55 Year 20 11 31 7.75%

Occupation Businessman 45 02 47 11.75%

Service employee 51 25 76 19%

Student 69 58 127 31.75%

Retired 11 08 19 4.75%

Housewife 00 64 64 16%

Farmer 26 00 26 6.50%

Professional 25 16 41 10.25%

Income Less than 10,000 Rs 69 110 179 44.75%

10,000 to 20,000 Rs 60 29 89 22.25%

21,000 to 30,000 Rs. 52 18 70 17.50%

31,000 to 40,000 Rs. 25 03 28 7%

Above 40,000 Rs. 21 13 34 8.50%

Sources: Authors Compilation

Where are you buying product?

Table-3

Frequency Percentage

D-Mart 172 43%

Big Bazar 201 50.25%

Both 27 6.75%

Total 400 100%

Sources: Authors Compilation

Interpretation: From the above data it is said that approximately (43%) of the people are buying product from D-Mart, (50.25%)

of the people are buying product from Big Bazar and (6.75%) of people are buying product from Both D-mart and Big Bazar.

How often do you visit D-Mart or Big Bazar?

Table-4

Frequency Percentage

Once per week 71 17.75%

2 to 3 times per Months 85 21.25%

Once per Month 62 15.50%

Whenever it necessary 182 45.50%

Total 400 100%

Sources: Authors Compilation

Interpretation: From the above data it is said that approximately (17.25%) of the people are visit D-mart or Big Bazar once per

week, (21.25%) of the people are visit D-mart or Big Bazar 2 to 3 times per month, (15.50%) of the people are visit D-mart or Big

Bazar once per month and (45.50%) of the people are visit D-mart or Big Bazar whenever it necessary.

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1784 |P a g e

Do you carry a shopping list?

Table-5

Frequency Percentage

Yes 286 71.50%

No 114 28.50%

Total 400 100%

Sources: Authors Compilation

Interpretation: From the above data it is said that approximately (71.50%) of the people are carry a shopping list and (28.50%) of

the people are do not carry a shopping list.

Which products do you buys impulsively from supermarkets?

Table-6

Sources: Authors Compilation

Interpretation: From the above data it is said that (20.22%) of the respondents shops FMCG products, (20.41%) of the

respondents shops Clothing‘s, (5.41%) of the respondents shops Electronics goods, (8.95%) of the respondents shops sports and

fitness related products, (7.74%) of the respondents shops education, (8.67%) of the respondents shops kids product, (8.95%) of

the respondents shops Jewelery/Watch/glasses, (10.90%) of the respondents shops Grocery, (8.76%) of the respondents shops

vegetable/ Fruits.

Analysis of Perceptions towards Impulsive Buying

Table-7

S. No. Likert scale Mean Remarks

1 Sales promotion (reduced prices, free gift, coupons, vouchers etc.) of product forces me to

buy impulsively.

3.8700 Agree

2 I buy impulsively on recommendation of sales people in malls. 3.3175 Agree

3 Product bayed impulsively are of low cost. 3.7850 Agree

4 Packaging of product attracts you to buy the products. 3.4250 Agree

5 Placing of product in store gains your attention towards it. 3.4800 Agree

6 Behavior of sales person affects your buying behavior. 3.3200 Agree

7 The person with whom you are going for shopping influences you‘re buying behavior. 3.2375 Agree

8 Popularity of product helps in impulse buying. 3.4050 Agree

9 You buy more at the occasion of festivals. 3.2300 Agree

10 Shopping is fun. 3.1125 Agree

11 I get an idea of what I want to buy after looking through in-store form/mannequin displays. 3.2350 Agree

12 I go shopping to change my mood. 3.2075 Agree

13 After I make an impulse purchase I feel regret. 3.2350 Agree

14 Many a times my impulse buying is governed by others. 3.2575 Agree

15 Impulse buying is a normal habit. 3.3325 Agree

16 Impulse buying behaviour is due to attractive advertising. 3.2425 Agree

17 Many a times I am not able to purchase required item due to impulsively bayed items. 2.9275 Disagree

18 I announce my impulsively bought item to my friends with pride. 2.7750 Disagree

Sources: Authors Compilation

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1785 |P a g e

Interpretation: From the above data it is said that people are disagree in only two statements {Many a times I am not able to

purchase required item due to impulsively bayed items & I announce my impulsively bought item to my friends with pride}.

Factor Analysis

Table-8: KMO and Bartlett's Test

Kaiser-Meyer-Olin Measure of Sampling Adequacy .643

Bartlett's Test of Sphericity Approx. Chi-Square 518.743

d.f. 153

Sig. .000

Sources: Authors Compilation

Interpretation: From the above table it can be interpreted that the sample size is adequate (KMO value more than 0.6) and

Bartlett‘s value is less than 0.05 (0.000). It means factor analysis can be performed on the given data.

Table-9

Sources: Authors Compilation

From the above Table-8, factors are identified: Price consciousness, Excitement seeking, Advice taker, Reference Seeking,

Shopaholic, Conditional buying, Habitual, and Situational.

Hypothesis

H0: Gender and product purchased impulsively are not related.

H1: Gender and product purchased impulsively are related.

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1786 |P a g e

Table-10

S. No. Products Significance Remarks

1 FMCG product 0.099 H0: Accepted

2 Clothing‘s 0.954 H0: Accepted

3 Electronics goods 0.000 H0: Rejected

4 Sports and fitness 0.000 H0: Rejected

5 Education 0.823 H0: Accepted

6 Kids 0.000 H0: Rejected

7 Jewellery/Watch/glasses 0.025 H0: Rejected

8 Grocery 0.003 H0: Rejected

9 Vegetable/ Fruits 0.000 H0: Rejected

Sources: Authors Compilation

Interpretation: From the above data it is said that most of respondents buy impulsively FMCG products, clothing‘s, education and

other items are not very much.

FINDINGS

56.75% respondents are Male and 43.25% respondents are Female.

43% of the people are buying product from D-Mart, 50.25% of the people are buying product from Big Bazar and

6.75% of people are buying product from Both D-mart and Big Bazar.

17.25% of the people are visit D-mart or Big Bazar once per week, 21.25% of the people are visit D-mart or Big Bazar 2

to 3 times per month, 15.50% of the people are visit D-mart or Big Bazar once per month and 45.50% of the people are

visit D-mart or Big Bazar whenever it necessary.

34% of the people says their shopping is long {more than 3 hours}, 38.25% of the people says their shopping is Medium

{1-3 hours} and 27.75% of the people says their shopping is short {less than 1 hour}.

71.50% of the people are carry a shopping list and 28.50% of the people are do not carry a shopping list.

In mall impulse buying 20.22% of the respondents shops FMCG products, 20.41% of the respondents shops Clothing‘s,

5.41% of the respondents shops Electronics goods, 8.95% of the respondents shops sports and fitness related products,

7.74% of the respondents shops education, 8.67% of the respondents shops kids product, 8.95% of the respondents

shops Jewelery / Watch / glasses, 10.90% of the respondents shops Grocery, 8.76% of the respondents shops vegetable/

Fruits.

CONCLUSION

From the study, it is concluded that majority of the people buy products impulsively from mall like Big Bazar and D-Mart. It is

also found that most of the people go for shopping with a shopping list. Sales promotion in mall affect the customer buying

behavior, they buy more when see Discounts/ free coupons/ Vouchers. Thus it can be concluded that conclude that customer buy

impulsively is a normal habit. Most of people make impulse purchases.

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Volume 4, Number 3, July – September’ 2015

ISSN (Print):2279-0934, (Online):2279-0942

PEZZOTTAITE JOURNALS SJIF (2012): 3.735, SJIF (2013): 5.020, SJIF (2014): 5.996

International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals. 1787 |P a g e

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