Impact of Store Size on

Impulse purchase

1

Introduction

Unplanned purchases are defined as purchase made in a store that are

different from the consumer planned to made prior to entering the store.

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

Abratt and Goodey(1990) define impulse buying as a purchase

decision made in-store with no explicit recognition of a need for such a

purchase prior to entry into the store. Organized retail stores are designed in

a manner so as to appeal to the senses of the consumers into making Impulse

purchases. Even the mom- and-pop shops are being designed with soft music

and serene environment which appeal to customers’ emotions. The increasing

disposable income of the consumers is also adding to the increase in Impulse

purchases by the customers. New technologies, such as teleshopping channels

and Internet, act as catalysts of consumer’s impulse buying behavior as they

increase both the accessibility to products and services, and the ease with

which impulse purchases can be made(Kacen and Lee,2002)

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 as ageing a logical sequence of consumers’

action. Some of the items bought on impulse are not considered functional or

necessary to the consumers. Unplanned purchase implies a lack of rationality

or alternative evaluation. Unplanned purchase can be further subdivided into

two categories. i. Reminder Purchases-would occur when a consumer notices

Band-Aids in a store & remember that she is a almost out at home .ii) Impulse

Purchase would occur when a consumer sees a candy bar in the store &

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purchases it with little or no deliberation as the result of a sudden, powerful

urge to have it.

The stimuli is the basic structure to which an individual

responds. The product, package advertisement, or sales presentation have a

major impact on the nature of the mental processes that are activated and an

the final meaning assigned to the message.

Various in-store stimuli attract the mind of a customer to fulfill his

various needs and fancies (Kollat and Willett,1967). For example, marketers

and retailers prominently display candies, chocolates, battery cells and other

small ticket items to motivate the customers to purchase the goods, that they

would not have otherwise purchased. Customers also purchase products

which stimulate their interests.

In-store stimuli, such as product display, product price ,large

variety, store ambience, etc. ,from the core reasons that influence consumers

to purchase on impulse. In-store stimuli are possible only for big and medium

–sized organized retail stores. Small-sized retail stores, are less capable of

attracting Impulse purchase. A prominent reason is that customers can

choose the products themselves in a big store. Also, the big stores are quite

spacious and well-fit to attract purchase from a customer. This is particularly

true in India where small-sized stores are not designed in a supermarket like

manner and the store keeper fulfills the customer’s order rather than

allowing him to go inside and pick the goods for himself.

However, a problem with the big-sized retail stores is that owing to

the heavy investment in the store ,the turnover of the store (and it partially

refers to impulse sales) must also be sufficiently high to justify the

investment. In other words, as the store size increases ,it becomes necessary

that the Impulse purchase also increase correspondingly to the turnover of

the store.

In the context of our research, the ratio of Impulse purchase to the

total spending should also be competitive as compared to a medium or a small

sized store. Therefore, we make an attempt to study the influence of the store

size on Impulse purchase. While there have been many studies (e.g., Kollat and

willet.1967) on the influence of in-store stimuli on impulse buying, these

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studies do not consider how customer Impulse purchase would differ across

various store sizes. The study also contributes by identifying various insightful

strategies for an organized retailer to attract more Impulse purchases.

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Objective

1) To Know the size of the store has a positive influcence on the amount of

impulse purchases made by the cutomers.

2) To Know the type of stimuli has a positive influence on customer’s

impulse purchase made from stores of different size.

3) To Know the type of items has a positive influence on customer’s impulse

purchase made from stores of different sizes.

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Research Methodology

Data Collection:

In this study, survey method was used to collect data. The

Questionnaire was developed in a simple manner which asked the

respondents the size of their planned and unplanned purchases as well as the

categories of items that they purchased in an unplanned manner. The money

spent on planned and unplanned purchases was used as a measure of size of

the planned and unplanned purchases. The data was collected using simple

random sampling from various small-medium and big sized fifteen retailers

in Islampur. Every third customer to the size was sampled. The store size was

coded as small, medium and big according to the size of the store. all the

small size (such as kirana stores) coded as ‘1’ The medium sized

supermarkets and bazaars were coded as ‘2’ and the big-sized stores were

coded as ‘3’.

Rationale of the study

It is seen that shopping mall owners tried to exploit impulses,

which a associated with the basic need for instant satisfaction. A buyer in the

shopping store might not specially be shopping for the confectionery items

displayed at prominent places will certainly attract buyers attention and

trigger impulse buying behavior in them. this phenomenon can easily be

understood with the help of two principle/factors as a part of psychological

review of literature, which interprets impulses as the consequences of these

competing principles/factors

These principle are well presented in the papers of Fread (1956) & Mai ,et al

(2002) These principle are stated below.

i) First, the Pleasure Principle

ii) Second, the reality principle

The Pleasure principle to immediate satisfaction felt by consumer

whereas the reality principle is related to delayed gratification. There is always

an ongoing competition between these two forces represented as principle

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within the buyer when they enter in store with the intention to buy. As a

consequence impulse related behavior overcomes them because impulses are

usually difficult to resist and involve premeditated pleasurable experiences as

of a study of Rook(1987)

Role of in-store stimuli in Impulse Buying

In-store stimuli are promotional techniques employed to

increase unplanned (or subconsciously planned) purchases. These

techniques include in-store sitting, on-shelf positions, price-off promotions,

sampling, point-of-purchase displays, coupons, and in-store demonstrations.

Retailers try to increase the number of impulse purchase through store

design, product displays, package design and sales (Hoyer and

machnis,1997).

Studies (Cox,1970; Curhan, 1974; Wilkinson et al., 1982; and

Limentour et al.,1984)report a positive relationship between the total unit

sales of an impulse product brand having high consumer acceptance and the

amount of shelf space given for that brand. However, no relationship has

been reported between total unit sales of an impulse product brand having

low consumer acceptance and the amount of shelf space given for that brand.

On-shelf position also influences unit sales of supermarket

products (Sewell,1984; and Abratt and Goodey,1990).This is because the

consumers have a natural tendency to focus and perceive at eye level.

Displays can therefore, increase the rate of unplanned purchase in retail

stores (Peak and Peak,1977; and Auelch,1983).Many studies have been

conducted in an attempt to quantify the sale responsiveness of displays. All

the found that the displays increased the sales of the items exhibited .

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Literature Review

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. Such purchases ranges from small

(chocolate, clothing, magazines) to substantially large (jewelry, vehicle, work of

art) Impulse Buying as a purchase decision is discussed In detail by Kollet and

Willett,1967: Bellenger et al.,1978; and Abratt and Goodey (1990).

Rook and Gardner (1993) identify two important characteristics

of Impulse Buying, namely: rapid decision-making and a subjective bias in favor

of immediate because it is made while shopping, although the individual was not

actively looking for that item, had no pre-shopping task, such as looking for a gift

which satisfies the customer.

Kollet and Willet study is important as it attempts to explain

customer difference in unplanned purchasing behavior. However theses

studies are concentrated on supermarkets and big-sized organized retail

stores. In-store stimuli cab also occur in a relatively small-or medium-sized

store. Particularly these days even small stores lay emphasis on attractive

and elegant store designs. Therefore, in this research we study how the

impulse purchase behavior differs across various store size. Owing to the

high turnover in a big organized retail store, the impulse purchase must also

be proportionately high.

Kollat and willet (1967) General study of Impulse purchase

behavior In store of a national supermarket chain look into the influence of

external stimuli .Average customer purchase 50.5% of the products on an

unplanned basis;\the incidence of unplanned purchase varies greatly for

customers.

Popai/Du Pont (1977) Study of consumer buying habits look into

the influence of external stimuli.65% of all supermarket purchase decisions

were made in-store with over 50%of these being unplanned; Rate of

unplanned purchase differ for different product categories; Reasons for

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unplanned purchase-38%(Retail forces),29% (Manufacturer forces),24%

(world of mouth force),9% (other).

Bellenger et al.(1978) Infuse of demographic factors on Impulse

Buying behavior and finding are Shoppers under 35 years of age were more

prone to impulse buying compared to those over 35 years old.

Johnson and williams (1984) General study on consumer Impulse

buying behavior study also highlights major differences between impulse

purchases for various product categories. 20% of purchasing decisions were

made inside the store; there were important differences between the product

categories.

Abratt and Goodey(1990) Influence of in-store stimuli and culture

on consumer impulse purchase behavior confirm the role of in-store stimuli

do affect unplanned purchase quite significantly; 70% of unplanned purchase

are due to promotional techniques, namely; point -of –sale, shelf signs, end-

of-aisles displays, and special

displays.25% of unplanned purchase are made when the respondent

‘remembered a need’ for the product.

Garder(1994) Influence of consumers’ mood on impulse buying

behavior this study finding is Consumer’s positive moods were more

conducive to impulse buying than negative moods.

Donovan et al. Consumer’s mood or emotional state influences

impulse buying behavior study also highlights Feeling of pleasure in the

shopping environment are positively related to impulse purchase behavior.

Rook and Fisher (1995) Self -identity and impulse buying behavior

and finding are Men reported more personal (independent) identity reasons

for their purchases whereas women reported more social (rational) identify

reasons.

Beatty and Ferrell (1998) Impulse purchasing tendency as a

consumer personality trait and finding of this studies is Consumer’s positive

moods was associated with the urge to buy impulsively.

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Wood (1998) Influence of age on impulse buying behavior this

studies finding is impulse buying increase slightly between the 18-39 years

of age and declined thereafter

Kacen and Lee (2002) Moderating influence of culture on

Consumer’s impulse buying behavior this study also highlights Individual

cultural difference factors systematically influence Impulsive purchasing

behavior.

Jones et al.(2003) Extends the notion of impulse buying tendency

from a general personality tendency to a more product-specific variable this

studies finding are Product –Specific conceptualization of the impulse buying

behavior was a better predictor of actual Impulse purchasing behavior.

A study published in the June 2008 issue of the Journal of Consumer

Research suggests that consumers are more susceptible to making impulsive

purchases for one brand over another if they are distracted while shopping. In

the study, Central Michigan University Psychology professor Bryan Gibson

surveyed college students by measuring their preference for a variety of soft

drinks, including Coke and Pepsi. Results of Gibson's study found that implicit

attitudes, or those that people may not be conscious of and able to verbally

express, predicted product choice only when participants were presented with a

cognitive task, suggesting that implicit product attitudes may play a greater role

in product choice when the consumer is distracted or making an impulse

purchase.

Theoretical Background

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Literature provides two explanation of the impulse buying

behavior (Abratt and Goodey,1990), namely exposure to in-store stimuli and

customer commitment. The exposure to in-store stimuli states that in- stimuli

produces impulse purchase simply because it acts as a reminder of the

shopping needs. According to kollat and Willett (1969), in-store stimuli assist

in making purchase decisions and offer consumers new ways of satisfying

needs.

Customer commitment hypothesis maintains that impulse

buying is in part attributable to incomplete measure of purchase plans (Kollat

and Willett,1969; and Abratt and Goodey,1990)concluded in a study of 600

supermarkets that some unplanned purchase were probably a result of

exposure to in-store stimuli. Other unplanned purchases are actually not

unplanned at all, but are caused by the way in which the behavior is usually

measured. If this is accepted, then the results of various studies measuring

unplanned purchase, using the interviewing technique referred by Kollat and

Willet(1967)would be inflated to the degree to which the unplanned

purchases made are not a result of exposure to in-store stimuli. In other

words, the customer-commitment hypothesis explains that these stimuli play

a vital role in reminding the consumer that certain products were

(Subconsciously) planned and should be purchased.

However, the two explanations support the role of in-store

stimuli in impulse buying. Therefore, we consider that buying in-store stimuli

influence impulse buying.

Data Analysis:

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Table 1: Descriptive statistics of Respondent Characteristics

Attribute

Measured

Item Frequenc

y

Percentage%

Store Size

Small 10 25

Medium 15 37.5

Big 15 37.5

Age

20-29 12 30

30-39 20 50

>=40 8 20

Gender

Male 25 62.5

Female 15 37.5

Annual Income

<1Lakh 3 7.5

1-3 Lakh 15 37.5

3-5 Lakh 5 12.5

Not

Answered

17 44.5

Profession

Student 6 15

Housewife 12 30

Employed 16 40

Self-

employed

2 7.5

other 2 7.5

Purchase

Frequency

<1= time 16 40

2-3 time 16 40

4-5 time 4 10

>5 time 4 10

Accompanied with

Marital status

Alone 14 35

Family 13 32.5

Friends 13 32.5

Married 35 87.5

Unmarried 15 12.5

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In-store

stimuli(Yes)

Product

display

15 37.5

Product

Price

16 40

Large

Variety

7 17.5

Store

Ambience

1 2.5

Need of the

Hour

1 2.5

Departmental

Unplanned

Purchases

Apparel 2 5

Furniture 2 5

\home

Appliances

1 2.5

Electronics 1 2.5

Toiletries 6 15

Cosmetics 9 22.5

Sporting

Goods

1 2.5

Groceries 1 2.5

Toys 2 5

Fruits &

Vegetables

6 16

Footwear 9 22.5

Total 40 100%

Table 2 Influence of the Type of Stimuli on impulse purchase Across Various

Store Sizes.

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In-Store Stimuli

Store Size

Total

Small Medium Big

Product Display 2 3 10 15

product Price 6 4 6 16

Large variety 1 2 4 7

Store Ambiences 0 0 1 1

Need of the hour 0 1 0 1

Total 9 10 21 40

We analyzed the in-store stimuli across various

store size. The results are shown in Table 3. Table 3 shows that the product

price is the greatest stimulant of impulse purchase for small-sized stores. For

big stores, the product display and the product price influence customer

impulse purchase In other words, in-store stimuli of impulse purchase vary

across store size.

Table 3 Type of the Item Purchase on Impulse Across Various Store Sizes.

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Departments Store Size Total

Small Medium Big

Toiletries 3 2 1 6

Footwear 2 3 4 9

Cosmetics 3 4 2 9

Fruits & Vegetables 2 1 3 6

Total 10 10 10 30

From table 1, we found that toiletries, footwear,

cosmetics and fruits and vegetables were the most frequent items purchased

on impulse. Therefore, we analyze only these four categories across various

store sizes. The results are shown in Table.3 Toiletries and cosmetics formed

the largest categories of impulse purchases from small sized stores. Footwear

contributed the largest category of impulse purchases from big-sized stores.

Table 5 Demographics of Largest Impulse Purchase Categories

Demographics Toiletries Footwear Cosmetics Fruits &

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Vegetable

Gender

Female 3 4 4 2

Male 3 5 5 4

Age

<20 2 4 1 0

20-29 1 2 3 0

30-30 2 2 4 2

>=40 1 1 1 4

Profession

Student 1 1 2 1

Housewife 1 3 0 2

Employed 2 1 3 2

Self

Empl

oyed

1 2 4 0

Other 1 2 0 1

Marital Status

Married 5 6 6 5

Unmarried 2 3 3 1

Purchase

Frequenc

y

<=1 1 3 3 2

2-3 Times 2 2 2 2

4-5Times 2 2 2 2

>5 Times 0 2 2 0

Accompanied

with

Alone 2 3 5 2

Friends 2 4 2 3

Family 2 3 2 1

Total Unplanned 06 09 09 06

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Analyzed the demographics of these four categories of

impulse purchases as shown in table 5 the unplanned purchases were made

by females, except for cosmetics and fruits and vegetables category where

males made most of the purchases. males made most of the unplanned

purchase in cosmetics when they visited the store alone. most of these males

were married and above 30 years and most of the unplanned purchase took

place among the married people. however, when males were accompanied

with their friends, they purchased fruits and vegetables. most of the

unplanned purchase were made by service class people.

Finding

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1) Most of the impulse buyers (37.5%) belong to middle class with an

annual income ranging from one to three lakh per annum.

2) Most of the respondents were employed, married males in the age

group of 30-39 years.

3) Students hardly purchase on impulse.

4) Groceries and electronics attracted least unplanned purchases.

5) Fruits and Vegetables, Cosmetics, Footwear and toiletries contributed

the maximum to impulse purchase in terms of volume.

6) Incidence of impulse buying was common among the initial buyers as

compared to the frequent shoppers.

7) The product price is the greatest stimulant of impulse purchase for

small-sized stores. For big stores, the product display and the product

price influence customer impulse purchase and medium-sized

stores ,need of the hour influences customers to purchase on impulse.

8) The females who made unplanned purchases were mostly housewives,

usually above 30 years. the unplanned purchases took place when

these females were accompanied with their family or were alone.

9) Surprisingly, males made most of the unplanned purchases in

cosmetics when they visited the store alone. Most of these males were

married and above 30 years and most of the unplanned purchases took

place among the married people. when males were accompanied with

their friends, they purchased fruits and vegetables.

Suggestions:-

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1) High impulse purchase items (fruits and Vegetables, cosmetics,

footwear, toiletries, etc.,) that need to be displayed to the customer at

places where they attract maximum attention of the customers (such

as near billing point, or at the shelf level equal to the eye of the

customer).On the other hand, the low impulse purchase items can be

stored as lower shelf levels as compared to impulse purchase items).

Conclusion

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In this study, we attempted to extent the findings of previous study by

analyzing impulse purchase across various store sizes. Surprisingly, the

impulse purchases contribute more to total sales in medium-sized retail

stores rather then big-sized retail stores .Need of the hour was the main

factor that contributed to impulse purchase in medium-sized retail stores,

while product display and product prices were the major in-store stimuli in

large stores. For small-sized stores, product price was the main factor that

attracted impulse purchases. Also ,the product categories that attracted

impulse purchases were different in different stores. One of the reasons for

such a result could be that the customers perceive big retail stores to the

costlier than small stores. Moreover, there is hardly any difference in prices

of a big retailer and a medium-sized retailer thereby inhibiting customers to

purchase from a big retailer. And the convenience obtained in a big-sized

retail store is available in a medium-sized store also. As consumers mostly go

to these stores for purchasing groceries, big-sized retailers do not pose any

special advantage over small-sized retailers. For products apart from

groceries, even big-retailers do not keep as much variety as a specialized

small-or-medium-sized store.

References

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1.Abratt R and Goodey S D (1990), “Unplanned Buying and In Store Stimuli in

Supermarkets”, Managerial and decision Econimics,Vol.11,No.2 pp.111-121

2. Betty S E and Ferrel M E (1998), “Impulse Buying: Modeling Its

Precursors”, journal of retailing Vol.74,no.2.pp 169-191

3. Bellenger D N Robertson D H and Hirschman E C (1978), “Impulse Buying

Varies by product”, Journal of Advertising Research,Vol.18,pp.15-18

4.Hoyer W D and Maclnnis D J (1997),Consumer Behavior, Houghton Mifflin.

5.Kacen J T and Lee J A (2002),”The Influence of culture on customer

Impulsive Buying Behaviour”, journal of consumer psychology,Vol.12

No.2,pp. 163-176

6.Freud.s (1956) “Formulation on the two principles of mental Funtioning” in

the standard Edition of the complete psychological works of Sigmund &

A.freud, eds, London

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Topic:- Impact of Store Size on Impulse purchase

Index

1) Introduction

2) Objectives of the Study

3) Research Methology

4) Literature Review

5) Analysis & Findings

6) Conclusions

7) Bibliography

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