Impulsive buying
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Impulsive buying Heidi Hellström, Senior lecturer Vaasa university of applied sciences, Finland
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Transcript of Impulsive buying
Impulsive buyingHeidi Hellström, Senior lecturer
Vaasa university of applied sciences, Finland
Definition
The behavior occurs after experiencing an urge to buy and it tends to be spontaneous and without a lot of
reflection. It does not include the purchase of a simple reminder item, which is an item that is simply out of
stock at home.” (Beatty, Ferrell 1998)
Definition
Spur of the moment, unplanned decision to buy, made just before a purchase.
(Business dictionary)
Choices made withoutconsidering the long term interest
Quick response to the STIMULUS
IT IS ALL ABOUT EMOTIONS !
Versus ”Compulsive shopping”
What are the reasons of an increasing trend of impulsive buying?
Possible reasons Rising disposable income Availability of credit Well done product placement and in-store promotions Shopping as a leisure activity Shopping malls More ?
QuestionWhich items are usully
purchased with impulse?
Food / Mobiles / Clothes / Cosmetics / etc.
IT IS ALL ABOUT EMOTIONS !
Theory definitions• Pure Impulsive Buying – The consumer is not looking for the product at all
but feels a strong emotional want. Low price is a common trigger to this category.
• Suggestion Impulsive Buying – purchase is not planned because the consumer
has no previous knowledge about the product
Broden&Söderberg 2011
Theory definitions• Reminder Impulsive Buying – about a particular advertisement or information
previously noticed by the consumer • Planned Impulsive Buying – consumer has in mind to buy something or some
sort of good but the choice of what kind of product, brand, size or price etc. has not been determined
Broden&Söderberg 2011
In summary: 3 main characteristics1. The purchase should be unplanned i.e. there is no buying intention prior to the entrance of the consumer into the store.
2. Stimulus is what triggers impulse buying whether it is reminder, environmental manipulations (Engel et al 1968, Lindstrom, 2009) or the buyers’ own thoughts (Hirschman, 1985).
3. The purchase decision is made on-the-spot i.e. an impulse purchase is spontaneous, sudden and occurs at the point of sale. This means that the purchase is made immediately after the buying decision.
Broden&Söderberg 2011
How to encourage impulsive buying?
1. The product• Low price – most efficient in many cases
• Products, which have short Product life cycle
• Small sized, light weighted products, which a are ease of storage
Broden&Söderberg 2011
2. In store display• Special exposure; the product is placed
somewhere out of the ordinary (pyramid)• Endcap • Throw exposure • Tie-ins
Broden&Söderberg 2011
Reference: Tendai&Crispen 2009
Customer survey results
FINDINGS?
4. Sales person• Tips for sales speach:– Previous consumer´s satisfaction examples– Drawing a image / brand promise– Scarsity:
• the products are sold out, if you don´t buy one now– Offer alternatives so the consumers feel like
they have made the decision themselves
Broden&Söderberg 2011
