Final RMB Project Report

7/31/2019 Final RMB Project Report

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Research Methods in Business Project

On

Factors influencing the Impulse Buying Behavior of

people

Submitted To Prof. A.K Jain

Group 08 - Section D

Ankush Mittal 184

Gunjan Jain 190

Kaustubh 199

Naved Siraj 207

Nayan Dilip Jain 208Rishabh Singhal 218


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Contents

1. Introduction . 1

2. Rationale of the Study .. 3

3. Purpose of the Study . 34. Literature Review . 4

5. Research Model . 4

6. Methodology 7

7. Questionnaire .. 7

8. Dependent Variable . 7

9. Independent Variable . 8

10.Sample .. 9

11.Analysis of Findings .. 9

12.Descriptive Statistics 9

13.Factor Analysis and Reliability .13

14.Regression Analysis .17

15.T-Test .20

16.Conclusions 23

17. Implications 24

18.Recommendations for Future Research .. 25

19.References 26


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Introduction

Stores are the place where buyers buy products whether its planned or unplanned purchase.

These stores sell hundreds and thousands of products daily and consumers are consuming

these products at the cost of their income. It only depends on the income of the person, thathow much and how many times he or she visits shopping stores to buy products. It is usually

seen that buyers purchase products which they have not planned and this phenomenon of

unplanned purchasing is termed as impulse buying. In previous researches, researchers and

scholars have tried to measure impulse purchasing of different types of products in multiple

shopping stores as it is reported by Bellenger et al. (1978); Du Pont (1965); Kollat and Willett

(1967), Prasad (1975); Williams and Dardis (1972).

Researchers found that impulse buyers usually do not set out with the specific purpose of

visiting a certain store and purchasing a certain item; the behavior occurs after experiencing an

urge to buy (Beatty & Ferrell, 1998), and such behaviors are influenced by internal states and

environmental/external factors. Research findings suggest that impulse buying accounts for

substantial sales across a broad range of product categories (Bellenger, Robertson &

Hirschman, 1978; Cobb & Hoyer, 1986; Han, Morgan, Kotsiopulos, & Kang-Park, 1991; Kollat&

Willet, 1967; Rook & Fisher, 1995; Weinberg &Gottwald, 1982). Since impulse buying is a

pervasive aspect of consumers behaviors and a focal point for strategic marketing plans (Rook ,

1987), it is worthwhile for retailers to understand factors within the retail setting that trigger

consumers impulsive reactions. Retailers can help customers to find the right products through

focused merchandising, intelligent store design and layout, and other visual merchandising

practices, such as product displays, packaging, and signage

This paper investigates the relationship between independent variables which are visual

merchandise, emotion, service and promotion with the attitudinal and behavioral aspects of

impulse buying behavior. This study attempts to explore the association that exists between thevariables involved, by tapping the responses of respondents from higher income group in the

Gurgaon region.

Increased disposable income as well as credit availability has resulted in increased impulse

buying habit among consumers in the retail environment as reported by Dittmar and Drury

(2000). In order to tap this behavior of impulse buying in the consumer, we have selected areas

in and around Gurgaon. We are intending to investigate that whether higher income group

having income greater than 12,000 Rupees have planned or unplanned buying behavior.

The basic questions we want to investigate in this research study are as follows:

Q1: What is the level of association between visual merchandise and impulse buying behaviorof consumers of higher income group having disposable income?

Q2: What is the level of association between environment and impulse buying behavior of

consumers of higher income group having disposable income?

Q3: What is the level of association between the service provided at the store and impulse

buying behavior of consumers of higher income group having disposable income?

Q4: What is the level of association between promotion and impulse buying behavior of

consumers?


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Rationale of the StudyIt is seen that shopping mall owners tried to exploit impulses, which are associated with the

basic need for instant satisfaction. A buyer in the shopping store might not specifically be

shopping for the confectionary goods like, sweets, chocolates, bubble gums, mints and biscuits.

However, related confectionary items displayed at prominent places will certainly attract

buyers attention and trigger impulse buying behavior in them. This phenomenon can easily beunderstood with the help of two principles/forces as a part of psychological review of literature,

which interprets impulses as the consequences of these competing principles/forces. These

principles are well presented in the papers of Freud (1956) and Mai,et al.(2002). These

principles are stated below:

a. First, the pleasure principle

b. Second, the reality principle

The pleasure principle is related to immediate satisfaction felt by consumer whereas the reality

principle is related to delayed gratification. There is always an ongoing competition betweenthese two forces represented as principles within the buyer when they enter a shopping 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

study of Rook (1987).

In this paper we are interested in finding associations among variables (see Research model and

sub models) regarding spending of upper income group people regardless of linkages of these

variables to different impulse buying patterns related to diversified groups of buyers.

This paper will certainly add value to the existing knowledge base and simultaneously give us

courage to indulge in further advance researches in the field of management sciences. This

study is also useful for retailers and manufacturers who want to improve their understanding

regarding consumer impulse buying behavior. This study will provide information as to why

visual merchandising, emotion, service and promotion should be considered an important

component of a strategic marketing plan in support of sales increase and positive

store/company image. This study will also provide insights to retailers about types of visual

merchandising that can influence consumers impulse buying behaviors. The way in which the

mentioned factors will eventually be displayed and promoted at the store level is an important

consideration in the buying function as well as in the strategic marketing plan.

Purpose of the Study

Young consumer group have gained significant importance from marketers as they havegrowing purchasing power; their money attitude also has been changing with relatively easy

access to credit cards (Schor, 1998). Therefore, the consumer behavior of an important sector

of the young consumer group, college students, is worth to be researched. Retailers try to find

variables that influence shoppers impulse buying urges and decisions and attempt to control

these influencing variables through strategic marketing and merchandising activity. The

purpose of the research study is to test the association of the independent variables that are;


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merchandise, service, emotion and promotion with the dependent variable that is; impulse

buying behavior of consumers.

Literature ReviewMarketing and consumer researchers over the period of forty years have tried to grasp the

concept of impulse buying and defined this terminology in their own perspectives, for whichsome research findings are discussed here.

In a research conducted by Cobb and Hoyer (1986), impulse buying was defined as an

unplanned purchase and this definition can also be found in the research of Kollat and Willett

(1967).

In another research by Rook (1987) reported that impulse buying usually takes place, when a

consumer feels a forceful motivation that turns into a desire to purchase a commodity

instantly. Beatty and Ferrell (1998) defined impulse buying as instantaneous purchase having

no previous aim or objective to purchase the commodity. Stern (1962) found that products

bought on impulse are usually cheap.

With increasing competition, retailers strive to ensure that their stores are appealing to theirtarget markets. As retailers are finding it increasingly difficult to create a differential advantage

on the basis of merchandise alone, the store itself plays an important role for market

differentiation. The correlation between consumers beliefs about the physical attractiveness of

a store and patronage intentions (Darden, Erdem, & Darden, 1983) suggests that the visual

aspect of the store may be significant in relation to the consumers choice of a store and buying

behavior. Since many retailers use visual presentation of the store/companys offering in order

to encourage customers buying behaviors, this fact was expected to be found in the consumer

and marketing literature. However, the literature does not include a coherent approach or

provide significant coverage for this subject. If first impressions and appearance are important

indicators of store image, then store window displays must play an important role in a

consumers decision whether or not to enter the store. However, classifications of store image

components in the literature are almost entirely related to the in-store merchandise

placement. Display communications, which frequently happen to influence consumers buying

behavior, are not considered (Fernie, 1996; Fernie&Fernie, 1997). Buttle (1988) referred to

visual merchandising as a neglected area in fashion marketing research. This neglect does not

signify that this area is unworthy of academic research, but may indicate that since visual

merchandising concerns perceptions of creativity, an area which is difficult to test; researchers

may have difficulty in analyzing it meaningfully.

Research Model

The impulse buying process starts with product awareness. Impulse buyers begin browsing

without having an intention to purchase a certain item or visiting a certain store. As consumers

browse, they are exposed to the stimuli, which triggers customers urge to buy on impulse.

When impulse buyers feel the desire to buy, they make a purchase decision without searching

for information or evaluating alternatives. At this stage of the impulse buying process,

consumers feel an irresistible urge to buy regardless of their prior intention. Then, consumers


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may experience positive or negative consequences by the post-purchase evaluation after the

purchase on impulse. In fact some consumers have reported dissatisfaction with a product, but

maintain satisfaction that the purchase was made (Maclinnis& Price, 1987; Sherry, 1990).

In this process, consumers are influenced by internal states and external factors that trigger

their impulse purchase behavior. Since impulse buyers do not set out with a specific goal to buy

a certain product or visit a certain store, while browsing and being exposed to the stimuli,impulse buyers feel the desire for the products by being aware of the products, and this desire

can be created by internal statement/mood or/and external stimuli. The awareness of the

products, which can satisfy the desire, can be achieved by attractive visual presentation of

merchandise that provides information regarding new products, fashion trends, or coordination

tips.

.

Model

Browsing

(ProductAwareness)

CreateDesire

PurchaseDecision

Post-

purchaseevaluation

Merchandise

Service

Emotion

Available

money

Impulse

Buying

Behavior

Internal Factors/Cues

Mood/ Need/ Desire

Hedonic PleasureCognitive/ Affective

Evaluation

External factors/Cues

Visual Merchandising

EnvironmentMoney

Service


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The above diagrammatical research model can be written in a mathematical form and the

mathematical model of this research is stated below:

ImpBBc, t = o + 1 Merchandisec, t + 2 Servicec, t + 3 Emotion c, t + 4 Promotionc, t + c, t

The mathematical equation given above has the following interpretations, given in the table

below:

= constant

= model error

c= consumer

t= buying at a particular time

HypothesisThe hypotheses formulated after review of the literature are given below:

H1: Visual Merchandise has a strong association with the impulse buying behavior of the

consumers.H2: Emotion of consumers has a strong association with the impulse buying behavior of the

consumers.

H3: Service provided to the customers has a strong association with the impulse buying

behavior of the consumers.

H4: Promotion has a strong association with the impulse buying behavior of the consumers.


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METHODOLOGY

Operational definition of Variables

Dependent Variable

The dependent variable of this study was consumers impulse buying tendency.

Two questions measuring college students impulse buying tendency were included in the

survey (Table 1, questions- 2 and 4). These questions were developed through references to

previous studies on impulse buying (Beatty &Ferrel, 1998; Han, 1987; Rook & Hoch, 1985;

Weun et al, 1997; Youn& Faber, 2000). Responses were measured using a five-point Likert

scale, which ranged from strongly disagree=1 to strongly agree=5.

Table 1: Empirical Support for the questionnaire

Strongly

disagree

Disagree Neither agree

nor disagree

Agree Strongly

Agree

I usually find great pleasure in shopping

I have difficulty controlling my urge to buy when I see

a good offer

I feel a sense of excitement when I make an impulse

purchase.

I frequently make an unplanned purchase

When shopping with companions, I buy more

products.

I tend to enter a store when I am attracted by an eye-

catching window display.

I tend to choose which store to shop in depending on

eye-catching window displays.

Attractively arranged store stimulates me to buy

more than planned.

I get an idea of what I want to buy after looking

through in-store form/mannequin displays

If I see an interesting promotional offer (reduced

price, sales promotion, and etc.) on in-store signs, I

tend to buy.

Friendly and skilled staff often talks me into buying a

product I didnt plan to buy

Nice music can induce me to buy more.

Attractive aroma (of sweets, fresh fruit and

vegetables, etc.) can frequently induce me to buy

more.

Accessibility of products affects my unplanned

buying.

Specially arranged and particularly attractive display

will attract my attention and may induce my

unplanned purchasing


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Shelf arrangement (e.g. products within hand reach)

affects my unplanned purchasing.

Product popularity is frequently a reminder for

unplanned purchase.

Larger quantity of the same merchandise displayed in

one place will attract my attention and induce my

unplanned purchasing.Point-of-sale events (demonstrations, degustation,

etc.) can induce my unplanned purchase

Promotion affects my impulse buying behavior

I usually shop more when I am happy

Home delivery of products increases my unplanned

purchase

Monetary promotions stimulate more impulse buying

Ease of self-selection of products stimulates more

impulse buying

Easy credit stimulates more impulse buying

Independent Variables

Independent variables of this study were visual merchandising, promotion, emotion and service

provided. It was hypothesized that these variables influence shoppers to buy on impulse. In

other words, these four types of visual merchandising will influence consumers impulse buying

behavior. Each independent variable was comprised of at least three questions designed to

measure each variable. Responses were recorded using five-point scale with choice options of

strongly disagree=1 to strongly agree=5.

The first independent variable was Emotion. Three questions (Table 1, questions- 1, 3, 21) were

developed to determine whether emotion of the customers affected their impulse buying

behavior. Responses were recorded using five-point scale with choice options of stronglydisagree=1 to strongly agree=5.

The second independent variable was Merchandise. Seven questions (Table 1, questions- 6-9,

15, 16, 18) were developed to determine whether visual merchandise affected the impulse

buying behavior. Responses were recorded using five-point scale with choice options of

strongly disagree=1 to strongly agree=5.

The third independent variable was Promotion. Five questions (Table 1, questions- 10, 17, 19,

20, 23) were developed to determine whether money available with the customers affected

their impulse buying behavior. Responses were recorded using five-point scale with choice

options of strongly disagree=1 to strongly agree=5.

The last independent variable was service provided to the customers. Eight questions (Table 1,

questions- 5, 11-14, 22, 24, 25) were developed to determine whether service provided to the

customers affected their impulse buying behavior. Responses were recorded using five-point

scale with choice options of strongly disagree=1 to strongly agree=5.


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Sample

College students overspending has grown as they have more purchasing power than before

with relatively easy access to credit cards (Schor, 1998). In fact, they have grown up with debt

and use it freely (Roberts & Jones, 2001). Therefore, the consumer behavior of an important

sector of the young adult consumer group, college students, is worth researching. The samplegroup for this research survey was selected from students enrolled in Management

Development Institute, Gurgaon. Because the majority of students in this College are men, the

majority of respondents were expected to be men.

Analysis of the findings

This section provides a detailed description of the data analysis and discussion of research

findings as a result of various statistical tests. Data were collected via self-administered survey

in Management Development Institute and entered into an Excel file. The data file was

imported from Excel to the Statistical Packages for Social Sciences (SPSS) software for analysis.

Statistical methods used for the data analysis in this study were descriptive statistics and

frequency tests, principal component analysis and reliability tests, and regression analyses.

Descriptive Statistics

First, a descriptive statistical analysis was conducted to examine whether or not there was an

error in the data entry. Kurtosis and Skewness of the variables was evaluated for each of the

variables (both dependent and independent).

The descriptive analysis for independent variable- Emotion was found as shown below:

N Minimu

m

Maximu

m

Mean Std.

Deviation

Skewness

Statistic Statistic Statistic Statistic Statistic Statistic Std.

Error

Em3 123 1 5 3.56 .925 -.403 .218

Em2 123 1 5 3.46 1.002 -.543 .218

Em1 123 1 5 3.13 1.138 -.158 .218

Valid N

(listwise)123


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Kurtosis

Statistic Std. Error

Em3 -.157 .433

Em2 -.115 .433

Em1 -.719 .433Valid N (listwise)

The descriptive analysis for independent variable Merchandising was found as shown below:

N Minimu

m

Maximu

m

Mean Std.

Deviation

Skewness


Error

M5 123 1 5 3.64 .841 -.922 .218

M1 123 1 5 3.44 .959 -.475 .218

M4 123 1 5 3.37 .970 -.541 .218

M3 123 1 5 3.24 .935 -.202 .218

M6 123 1 5 3.14 .908 -.145 .218

M7 123 1 5 3.06 .952 -.115 .218

M2 123 2 5 3.02 .983 .388 .218

Valid N

(listwise)

123


Kurtosis


M5 .845 .433

M1 -.576 .433

M4 -.373 .433

M3 -.791 .433

M6 -.917 .433M7 -.901 .433

M2 -1.133 .433

Valid N (listwise)


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The descriptive analysis for dependent variable Impulse buying behavior was found as shown

below:


N Minimu

m

Maximu

m

Mean Std.

Deviation

Skewness


Error

D2 123 1 5 3.11 1.010 -.280 .218

D1 123 1 5 3.01 .988 -.224 .218

Valid N

(listwise)123


Kurtosis


D2 -.889 .433

D1 -1.122 .433

Valid N (listwise)

The descriptive analysis for independent variablepromotion was found as shown below:


N Minimu

m

Maximu

m

Mean Std.

Deviation

Skewness


Error

P4 123 1 5 3.92 1.013 -.893 .218

P5 123 2 5 3.71 .637 -.435 .218

P2 123 2 5 3.66 .675 -.435 .218

P1 123 2 5 3.48 .899 -.488 .218

P3 123 1 5 3.24 1.041 -.089 .218

Valid N

(listwise)123


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Factor Analysis and Reliability

Three to eight items were constructed to measure each variable under study.

Principal component analyses with Varimax rotation were conducted for five variables(i.e.,

college students impulse buying tendency, college students buying behavior influenced by

visual merchandising, college students buying behavior influenced by promotion, collegestudents buying behavior influenced by service provided, college students buying behavior

influenced by emotion) to reduce these measures into factors. Components with Eigen values

over one for each of the five multi-item scales were extracted. Once the five sets of multi-item

measures were condensed to their components, internal consistency was checked using

Cronbachs alpha to ensure the reliability of data reduction.

The items representing the variable merchandising loaded into one factor with an eigen value

of more than one. The reliability test for internal consistency resulted in a Cronbach alpha of .79

indicating good internal consistency of the component.

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha

Based on

Standardize

d Items

N of

Items

.790 .789 5

Inter-Item Correlation Matrix

M1 M2 M3 M5 M6

M1 1.000 .592 .483 .532 .287

M2 .592 1.000 .495 .493 .346

M3 .483 .495 1.000 .341 .423

M5 .532 .493 .341 1.000 .291M6 .287 .346 .423 .291 1.000

The items representing the variable promotion loaded into one factor with an Eigen value of

more than one. The reliability test for internal consistency resulted in a Cronbach alpha of .64


Component Matrix

Component

1

M2 .808

M1 .799

M3 .749

M5 .679

M6 .546M7

M4


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Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of

Items

.641 .665 4


P1 P2 P3 P5

P1 1.000 .285 .342 .390

P2 .285 1.000 .174 .395P3 .342 .174 1.000 .402

P5 .390 .395 .402 1.000

The items representing the variable emotion loaded into one factor with an Eigen value of

more than one. The reliability test for internal consistency resulted in a Cronbach alpha of 0.722



Cronbach'sAlpha

Cronbach'sAlpha Based

on

Standardized

Items

N ofItems

.722 .720 3


Em1 Em2 Em3

Em1 1.000 .629 .382

Em2 .629 1.000 .372

Em3 .382 .372 1.000

Component Matrixa

Component

1

P5 .762

P1 .717P2 .646

P3 .636

P4

Component Matrixa

Component

1

Em1 .856

Em2 .852

Em3 .689


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The items representing the variable service loaded into 3 factors with an Eigen value of more

than one. The reliability test for internal consistency resulted in a Cronbach alpha of 0.722


Rotated Component Matrixa

Component

1 2 3

S1 .877

S2 .685

S7 .772

S6 .648

S5 .591

S8 .785

S3 .671

S4 .626

The items S1 and S2 loaded into component 1; S5, S6, S7 loaded into component 2 and S3, S4,

S8 loaded into the third component.

The reliability for each of these factors was found as shown below:

Inter-Item Correlation

Matrix

S1 S2S1 1.000 .399

S2 .399 1.000


Matrix

S5 S6 S7S5 1.000 .163 .207

S6 .163 1.000 .280

S7 .207 .280 1.000

Reliability Statistics for component 1

Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of

Items

.568 .570 2


Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of

Items

.652 .654 3


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S3 S4 S8

S3 1.000 .413 .312

S4 .413 1.000 .251S8 .312 .251 1.000

The items representing the dependent variable- impulse buying behavior loaded into one

factor with an Eigen value of more than one. The reliability test for internal consistency resulted

in a Cronbach alpha of 0.52.


Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of

Items

.521 .521 2


Matrix

D1 D2

D1 1.000 .352

D2 .352 1.000


Cronbach's

Alpha

Cronbach's

Alpha Based

onStandardized

Items

N of

Items

.580 .591 3

Component Matrixa

Component

1

D2 .822

D1 .822


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Regression analysis

Model Unstandardized

Coefficients

Standardized

Coefficientst Sig.B Std. Error Beta

(Constant) .231 .382 .605 .546

Merchandising -.191 .106 -.159 -1.795 .075

Emotion .595 .078 .595 7.583 .000

Promotion .219 .123 .153 1.774 .079

People Influence .115 .066 .124 1.749 .083

Convenience -.099 .093 -.083 -1.061 .291

Ambience .202 .102 .171 1.991 .049

Model Summary

Model

R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .722a

.521 .496 .58310

A multiple regression analysis was conducted for the hypotheses testing using impulse buying

tendency as a dependent variable and each of the independent variables as predictors in order

to see if there is relationships that were uncovered in a multiple context and to determine the

relative importance of the various type of influences on college students impulse buying

behavior. Hypothesis 1 was designed to test whether or not there was a significant relationship

between college students impulse buying behavior and visual merchandising. Hypothesis 2 was

constructed to determine whether or not there was a significant relationship between college

students impulse buying behavior and emotion of the consumers. . Hypothesis 3 was designed

to determine whether or not there was a significant relationship between college students

impulse buying behavior and any type of in-store promotional signage. Hypothesis 4 was

prepared to test whether or not there was a significant relationship between college students


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impulse buying behavior and influence of peer group on customers. . Hypothesis 5 was

designed to determine whether or not there was a significant relationship between college

students impulse buying behavior and convenience experienced by customers in store.

Hypothesis 6 was designed to determine whether or not there was a significant relationship

between college students impulse buying behavior and ambience of the store.

Output of Linear Regression Analysis

SPSS will generate quite a few tables in its results section for a linear regression. In this session,

we are going to look at the important tables. The first table of interest is the Model

Summary table. This table provides the R and R2

value. The R value is 0.722, which represents

the simple correlation and, therefore, indicates a high degree of correlation. The R2

value

indicates how much of the dependent variable, Impulse Buying Behavior, can be explained by

the independent factors. In this case, 52.1% can be explained, which is acceptable.

The next table is the ANOVA table. This table indicates that the regression model predicts the

outcome variable significantly well. How do we know this? Look at the "Regression" row and go

to the Sig. column. This indicates the statistical significance of the regression model that was

applied. Here, P < 0.0005 which is less than 0.05 and indicates that, overall, the model applied is

significantly good enough in predicting the outcome variable.

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 42.852 6 7.142 21.005 .000a

Residual 39.441 116 .340

Total 82.293 122

a. Predictors: (Constant), Ambience, Convenience, People_Influence, Emotion, Promotion,

Merchandising

b. Dependent Variable: BuyingBehavior

The table below, Coefficients, provides us with information on each predictor variable. This

provides us with the information necessary to predict Impulse buying behavior from all the

factors. We can see that Merchandising, Emotion, Promotion People_influence and Ambience

contribute significantly to the model (by looking at the Sig. column). By looking at the B column

under the Unstandardized Coefficients column we can present the regression equation as:

Impulse Buying Behavior = 0.231 + (-0.191)*Merchandising + 0.595*Emotion +

0.219*Promotion + 0.115*People_Influence + (-.099)*Convenience + 0.202*Ambience +


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Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig.B Std. Error Beta

1 (Constant) .231 .382 .605 .546

Merchandising -.191 .106 -.159 -1.795 .075

Emotion .595 .078 .595 7.583 .000

Promotion .219 .123 .153 1.774 .079

People_Influence .115 .066 .124 1.749 .083

Convenience -.099 .093 -.083 -1.061 .291

Ambience .202 .102 .171 1.991 .049

a. Dependent Variable: BuyingBehavior


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T-Test

T-test is used to test whether there is significant difference between the means of two groups; inthis case male and female.

Hypothesis:

H1: Visual Merchandise has a strong association with the impulse buying behavior of the

consumers.

H2: Emotion of consumers has a strong association with the impulse buying behavior of the

consumers.

H3: Service provided to the customers has a strong association with the impulse buying

behavior of the consumers.

H4: Promotion has a strong association with the impulse buying behavior of the consumers.

T-test analysis:

A t- test analysis was conducted to see the significant difference of means.

Means of the respective variables for male and female are:

1) Merchandising: Male 3.2243, Female: 3.7750

2) Emotion: Male 3.2960, Female: 3.9792

3) Promotion: Male 3.4626, Female: 3.9063

4) People Influence: Male 2.7570, Female: 3.7813

5) Ambience: Male - 3.2928, Female - 3.6667

Group Statistics

Gender

N Mean

Std.

Deviation

Std. Error

Mean

Merchandisingdimens

ion1

1 107 3.2243 .64645 .06249

2 16 3.7750 .75144 .18786

Emotiondimens

ion1

1 107 3.2960 .81435 .07873

2 16 3.9792 .61426 .15356

Promotiondimens

ion1

1 107 3.4626 .57030 .05513

2 16 3.9063 .46435 .11609

People_Influencedimens

ion1

1 107 2.7570 .81659 .078942 16 3.7813 .85574 .21394

Ambiencedimens

ion1

1 107 3.2928 .69847 .06752

2 16 3.6667 .58373 .14593


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Independent Samples Test

Levene's Test for Equality

of Variances

t-test for Equality of

Means

F Sig. t df

Merchandising Equal variancesassumed

.790 .376 -3.111 121

Equal variances not

assumed

-2.782 18.472

Emotion Equal variances

assumed

1.210 .274 -3.217 121

Equal variances not

assumed

-3.959 23.689

Promotion Equal variances

assumed

1.504 .222 -2.965 121

Equal variances not

assumed

-3.452 22.369

People_Influen

ce

Equal variances

assumed

.001 .978 -4.651 121

Equal variances not

assumed

-4.492 19.312

Ambience Equal variances

assumed

1.976 .162 -2.035 121

Equal variances not

assumed

-2.325 21.968


t-test for Equality of Means

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

Merchandising Equal variances

assumed

.002 -.55070 .17701

Equal variances not

assumed

.012 -.55070 .19798

Emotion Equal variances

assumed

.002 -.68322 .21237

Equal variances not

assumed

.001 -.68322 .17257


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assumed

.004 -.44363 .14964

Equal variances not

assumed

.002 -.44363 .12852

People_Influence

Equal variancesassumed

.000 -1.02424 .22021

Equal variances not

assumed

.000 -1.02424 .22804


assumed

.044 -.37383 .18369

Equal variances not

assumed

.030 -.37383 .16080


t-test for Equality of Means

95% Confidence Interval of

the Difference

Lower Upper

Merchandising Equal variances

assumed

-.90113 -.20027

Equal variances not

assumed

-.96589 -.13551

Emotion Equal variancesassumed

-1.10365 -.26278

Equal variances not

assumed

-1.03963 -.32680


assumed

-.73988 -.14739

Equal variances not

assumed

-.70990 -.17736

People_Influenc

e

Equal variances

assumed

-1.46020 -.58828

Equal variances not

assumed

-1.50100 -.54748


assumed

-.73749 -.01018

Equal variances not

assumed

-.70733 -.04033


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1) Merchandising:For the variable Merchandising, Levenes Test for equality of

variances shows that F (0.79) is not significant, therefore the Equal variances assumed

row will be used for the T-test. The score has to be 0.05 or less to be considered

significant. The Sig. 2-tailed value is 0.002, therefore there is a significant difference

between the means of the two groups.

2) Emotion: For the variable Emotion, Levenes Test for equality of variances shows that

F (1.21) is not significant, therefore the Equal variances assumed row will be used for

the T-test. The score has to be 0.05 or less to be considered significant. The Sig. 2-

tailed value is 0.002, therefore there is a significant difference between the means of

the two groups.

3) Promotion: For the variable Promotion, Levenes Test for equality of variances shows

that F (1.504) is not significant, therefore the Equal variances assumed row will be

used for the T-test. The score has to be 0.05 or less to be considered significant. The

Sig. 2-tailed value is 0.004, therefore there is a significant difference between the

means of the two groups.

4) People Influence: For the variable People Influence, Levenes Test for equality of

variances shows that F (0.001) is not significant, therefore the Equal variances

assumed row will be used for the T-test. The score has to be 0.05 or less to be

considered significant. The Sig. 2-tailed value is 0.0, therefore there is a significant

difference between the means of the two groups.

5) Ambience: For the variable Ambience, Levenes Test for equality of variances shows

that F (1.976) is not significant, therefore the Equal variances assumed row will be

used for the T-test. The score has to be 0.05 or less to be considered significant. The

Sig. 2-tailed value is 0.03, therefore there is a significant difference between the

means of the two groups.


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24

Conclusions

Impulse buying is a sudden and immediate purchase with no pre-shopping intentions either to

buy the specific product or to fulfill a specific buying task (Rook, 1987). Researchers have

attempted to determine if consumers who frequently engage in impulse buying behavior have

some common personality traits. This study further investigated some external factors that

influence impulse buying behavior. In attempt to examine this relationship, this study primarily

tried to explain the relationship between college students impulse buying behavior and factors

like merchandising, emotion, promotion and service.

A significant contribution of the present study is its elucidation of the relationship between

impulse buying and visual merchandising, which has been neglected in academic research

(Buttle, 1988). Despite the utilization of visual merchandising to improve desirability of

products and to encourage consumers buying behavior, a dearth of research exists that

investigates its influence on consumer buying behavior. The result of the present study proves

that there is a pivotal relationship between college students impulse buying behaviors and two

type of visual merchandising practices: in-store form/mannequin display and promotionalsignage. When consumers are exposed to these visual stimuli, they more likely make purchase

decisions on impulse. This suggests that these visual merchandising practices, serving as stimuli

that provoke a desire that ultimately motivates a consumer to make an unplanned purchase

decision upon entering the store, significantly influence consumers impulse buying behaviors.

In-store browsing appears to be positively affected by consumers impulse buying tendency,

and in turn, has a positive impact on consumers positive feelings and impulse buying urges

(Beatty & Ferrell, 1998). Despite the importance of this relationship, visual merchandising,

which was relevant of browsing, has received minimal attention from researchers. This study

showed usefulness of visual merchandising in understanding impulse buying.

Another important factor that affects impulse buying behavior is emotion. This study showsthat there is a significant association between customers emotion and their buying behavior. It

can be agreed that all four factors i.e. visual merchandising, emotion, promotion and service

provided are significantly inter-related and that relationship generates the influence on

consumers impulse buying behavior.

Implications

Impulse buying occurs when a consumer experiences a sudden, often powerful and persistent

urge to buy something immediately, and the impulse to buy is hedonically complex (Rook,

1987). Babin et al (1994) further asserted the hedonic value of shopping suggesting that it

reflects shoppings potential entertainment and emotional worth. It has been suggested that

browsing, or shopping without specific intent, may be more important than the actualacquisition of products and can provide a pleasurable shopping experience (Maclnnis & Price,

1987; Sherry, 1990). Therefore, in addition to exposing consumers to stimuli, such as retail

settings, browsing tends to produce positive feelings for many shoppers. These positive

feelings, produced by browsing, play a role as positive affects to encourage consumers impulse

buying behavior. Retail setting, such as visual merchandising, therefore, can influence

consumers impulse buying by providing information or reminding needs as well as producing


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25

positive feelings. At the stages of the impulse buying process, retailers can attempt to provoke

consumers desire for the products, and the awareness of the products, which can satisfy the

desire, can be achieved by browsing and being exposed to the stimuli, such as visual

merchandising.

The way in which merchandise will eventually be displayed and promoted at the store level is

an important consideration in the strategic marketing/merchandising plan. The findings of thisstudy provided information concerning the influence of visual merchandising on consumers

impulse buying behavior. The result signified importance of visual merchandising influences on

impulse buying behavior. Since in-store form/mannequin display and promotional signage

significantly influence college students impulse buying behavior, retailers should continuously

reinforce usage of in store form/mannequin displays and functions of signs to create favorable

shopping environments to influence consumers both in-store responses and future store

choice decisions.

Jarboe and McDaniel (1987, p. 47) suggest that not only are browsers important to the study of

impulse buyers, they are also likely to be effective word-of-mouth advertisers, peer

influencers, and trend setters, especially for socially visible products. Even though the impulse

buying process is speedy and done without prior information search and alternative evaluation,

customers perceive high value and satisfaction when the benefits, the satisfaction from

acquisition of the actual product or fulfillments of the desire from the internal states,

significantly outweigh the negative consequence (Hoch & Bradlow, 1999). The positive impulse

buying experiences contribute to establishing store loyalty and customers perceived value and

satisfaction influence future buying decisions. Effective visual merchandising practices can

influence consumers positive impulse purchase experiences.

Recommendations for Future Research

Because impulse buying behavior was strongly related to emotional/affective reactions and

behavior despite of the possible fact that it might have been more likely influenced by external

factors, the type of influence/response was somewhat difficult to determine by the survey

questionnaires. If consumers were aware of their responses to various situations, the influence

of different factors/events could have been directly examined. Therefore, combination of

quantitative and qualitative research methods (e.g., observational or experimental research

methods) is recommended for future research.

In addition, since impulse buying is phenomenon in a modern society, expended research with

various demographical and geographical groups are recommended.


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References

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Final RMB Project Report

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