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NEW SEARCH Consumer Behaviour on Impulse Buying
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R e s e a r c h R e p o r t o n I m p u l s e B u yi n g
Page 1
TABLE OF CONTENTS
Page 2
Title Of The Research Paper :
“
Impulsive buying behavior of consumers in Mumbai city
”
(FMCG SECTOR) withspecial reference to few selected malls and retail outlets (K-Star, R-
City, Inorbit ,City Center,Bigbazar, D-Mart) In Mumbai City .
There are many factors which affect Consumers ImpulseBuying Behaviour in FMCG market
but I am
only analysing marketer‘s driven factors which are
:
Price and discount
Advertising and sales promotion
Visual merchandising
Emotional attachment
Company
Income
Festival season
Purpose/Objectives :-
Most of the researches on impulse buying behaviour have been conducted in theWestern
society which is considerably more advanced than this. The main objective of thisresearch
paper is to explore the incidence of and difference of impulse buying behavior in mallsand
retail outlets in Mumbai city, with respect to factors such as product category, grocery bill
and number of products bought, and the shopper‘s gender
.The other objectives are as follows :-
To understand the reason of, why do people buy impulsively ?
To understand the consumer behavior while shopping in malls and retial outlets.
To identify the factor which influences consumer decision making process ?
To classify types of customers buying impulsively,with reference to age, gender, income,etc.
To understand the effects of different offers and discounts on impulse buying
To study who is the decision maker in impulsive purchasing?.

To study whether customers are satisfied after purchasing impulsively or not?
Page 3
Need For Study :-
Coupled with the prosperity of recent years, impulse purchasing has been on the
rise.Marketers capitalize on the phenomenon as they struggle to discern what makes a
consumermake an impulse purchase. This prompts towards the development of an effective
impulse purchasing model. Which cannot be achieved without first exploring the qualitative s
ide ofimpulse purchasing theory and its implications and definitions.A study conducted in
various branded retail outlets in 5 metro cities in India shows54% of all sales are actually
unplanned purchases. This is why the study of impulse purchase inIndian context is so
important.
Scope Of Study :-
The main scope of the study is restricted to few selected malls and retail outlets (K-Star, R-
City, Inorbit ,City Center, Bigbazar, D-Mart) In Mumbai City .
This study has been made to find the Impulsive Buying Behavior Customers in Mumbaicity.
Research Methodology :-
The research methodology was divided into two stages which involve two sources
forcollecting the data in order to achieve the objective of project.
Collecting data regarding the potential customers from retailers through retailersobservation
in the existing malls and retail outlets (k-star, r-city, inorbit ,raghuleela, bigbazar, d-
mart) within Mumbai city .
Collecting the primary data directly with the customer with the help of thequestionnaire
(Refer Annexure-1)
and personal interviews
.
A
hypothetical consumer impulse buying behaviour model (Refer Fig 5)
is
alsotaken into consideration ,which has been mentioned in conclusion and findings part
Page 4
ABSTRACT :-
Impulse purchasing has been a focus of marketing research since the sixties.Researchers have
attempted to explain impulse purchasing with the sciences of psychology andeven
philosophy. Previous research has failed to come up with a model for such, perhaps
becauseof the intangibility of psychological traits of impulsivity or the rationality in which
philosophyhas its roots in. Yet it is a prevalent phenomenon in the daily life of the average
consumer, youand me. There exists no model that serves as an effective predictor of an
impulse buy. It seemsthat the phenomenon of impulse purchasing has managed to evade.This
research is an attempt to find the resons for impulsive buying practice ofcustomers and also
the variables/factors that effects customer impulse buying behaviour inFMCG
sector considering malls and retail outlets in mumbai city . The impact of variousimpulse
buying factors like sales and promotions, placement of products, windowmerchandising,
effective price strategy etc on customer impulse buying behaviour has beenanalyzed.A
hypothetical model has created in this paper which has been taken into considerationfor our
research work on impulse buying beahviour of the consumers. This study focuses
onexplaining impulsive shopping through trends by testing the validity of hypothetical
relations between socioeconomic factors such as gender, wealth, age, presence of shopping
list ,size of billand impulse shopping. Qualitatively, this is a case study in which explores
what people purchaseand their personal reasons and justifications for such purposes at several
malls and retail outletsin Mumbai city. Quantitatively, I have set out to find predictors as
I,examine what makesshoppers open their wallets on the spot. The study is based on the
primary data collected frommalls and retail outlets (k-star, r-city, inorbit , raghuleela,
bigbazar,d-mart) within Mumbai citywith the help of structured questionnaire on ricter
scale, surveys and interviewsAfter the through analysis of the available data it has been found
out that since incomeof individual is increasing and more and more people are moving
towards western culture indressing sense, in eating etc so the purchasing power of the people
has really gone up and thusthe impulse buying of the commodities is on a great increment
mainly due to pricing strategies ofretail players and full of festivals throughout the year.
Page 5
INTRODUCTION :-
India is a growing economy with a real GDP growth rate of 8.5% . The real
privateconsumption expenditure has grown at an average rate of 8.4 percent per annum
during the lastfour years resulting in the emergence of a strong middle class with growing
purchasing power.This has resulted in people vying for a more comfortable and urbanized
lifestyle. The mushroomgrowth of coffee houses, eateries, supermarkets, etc., is a proof of
that ,In the past three decades,much research has been conducted internationally to define to
understand the psychological,economic and retail implications of such a trend. One area
of interest has been ―impulse buying‖. Impulse buying occurs when a consumer
experiences a sudden, often powerful
and persistent urge to buy something immediately. The impulse to buy is hedonically comple
x andmay stimulate emotional conflict. Also, impulse buying is prone to occur with
diminished regardfor its consequences.Marketers and retailers tend to exploit these impulses
which are tied to
the basic need for instant gratification. Recently several supermarkets have been established i
n theurban cities of India. The most prominent ones in Mumbai are K-Star, R-City,
InOrbitCityCenter, BigBazar, D-Mart. However, no study has been conducted in India to
study the buying behaviour of shoppers and what factors influence their decisions. Hence, the
researchershave decided to conduct an exploratory research to understand the general nature
of impulse buying in main supermarkets, malls, retailoutlets of Mumbai .Impulsive
purchasing
, generally defined as a consumer‘s
unplanned purchase which isan important part of buyer behavior. It accounts for as much as
62% of supermarket sales and80% of all sales in certain product categories. Though
impulsive purchasing has attractedattention in consumer research. Unfortunately, there is a
dearth of research on group-leveldeterminants.This research suggests that the presence of
other persons in a purchasing situation islikely to have a normative influence on the decision
to make a purchase. The nature of thisinfluence, however, depends on both perceptions of the
normative expectations of the individualswho exert the influence and the motivation to
comply with these expectations. Peers and familymembers, are the two primary sources of
social influence, often have different normativeexpectations.
Page 6
Thus, it has been evaluated two factors that are likely to affect the motivation toconform to
social norms:a)
The inherent susceptibility to social influence and b)
The structure of the groupGroup 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 theoryassumes that behavior is a
multiplicative function of expectations for what others consider to besocially desirable and
the motivation to comply with these expectations
Theory of Planned Behavior :-Theory of Reasoned Action
:-
Page 7
Conceptual Framework :-
Cobb and Hoyer (1986) and Kollat and Willet (1967) have defined impulse buyingsimply as
unplanned purchasing. Rook (1987) gave a narrow and more specific meaning toimpulse
buying, which included behavioral elements.The definition of impulse is as follows
―Impulse buying occurs when a consumer experiences a sudden, often powerful
and persistenturge to buy something immediately. The impulse to buy is hedonically
complex and maystimulate emotional conflict. Also, impulse buying is prone to occur with
diminished regard for
its consequences.‖ (Rook, 1987, p.191).
Impulse buying has been defined as a spontaneous, immediate purchase (Rook &Fisher,
1995) without pre-shopping intentions either to buy a specific product category or tofulfill a
specific buying task (Beatty & Ferrell, 1998). The impulse buying behavior occurs
afterexperiencing an urge to buy and tends to be spontaneous without a lot of reflection
(Beatty &
Ferrell, 1998). Since impulse buyers are not actively looking for a certain product and don‘t
have
prior plans or intention to make a purchase (Beatty & Ferrell, 1998; Weun, Jones, & Beatty,1
998), internal states and environmental/external factors can serve as cues to trigger
theirimpulse behavior.
Conceptual Definition :-
Based on the extant literature reviewed I have defined impulse buying as done by
Engel,Kollat, and Blackwell (1968) (as cited in Piron, 1991). Impulse buying is defined as a
buyingaction undertaken without the problem having been previously recognized or a buying
intentionformed prior to entering the store .
Operational Definition :-
Based on the literature review I plan to follow the following definition for the purposeof
research.Shoppers are asked upon exiting the store what items they purchased. For each
item,they are then asked some variant of the question when they decided to buy; before or
afterentering the store. The items purchased whose decisions were made after entering the
store areimpulse purchases
(Bellenger, Robertson, and Hirschman 1978).
Page 8
Pretest questioning is not used as it forces the shopper to recite formed intentions andcommit
the shoppers to their intentions (Pollay 1968). The problems with the post
purchaseoperational definition are that the incidence of impulse purchases may be
understated by theshopper in an effort to appear rational. However, this definition is easier to
operationalize because shoppers will be willing to give interviews once rather than twice (bef
ore and aftershopping) and it does not create the bias in the mind of the shoppers to follow
the intention thatthey stated in the pre-shopping interview
LITERATURE REVIEW :-
INDIA : The Research Context
According to the Economic Survey (2009-10), the real GDP growth rate of India has been
8.6% per annum in the last 5 years and the per capita income has grown by 7.4%. The
real
private
consumption expenditure has grown at an average rate of 7.4 percent per annum duringthe
last four years resulting in the emergence of a strong middle class with growing
purchasing power and with increase in the working population and simultaneous decrease in t
he share ofdependent population has declined, the disposable incomes and current
consumption hasincreased. This increase in consumer spending has led to more shopping and
consequently
has justified a research into the incidence and nature of impulse purchases. Also, with changi
ngdemographic trends,gender roles in purchase behaviour have changed considerably in
urbanIndia with women being more active in shopping now.The following section will
summarize previous research on impulse shopping.Initialrecognition of the phenomenon can
be traced back as early sixties. The most primitive impulse purchasing perspectives
focused on external factors that might induce the phenomenon. H. Stern(1962) described
factors that might influence impulse purchasing, which he described as adecision to buy a
product while they are in the store:
Page 9
Price
Marginal need for product or brand
Mass distribution
Self service
Advertising
Prominent store display
Short product life
Small size
Ease of storage (Stern).Kollat and Willet (1967) defined the first categories of impulse
purchases as follows:Brand decided; category decided; product class decided; general need
recognized (i.e. need
a birthday gift); general need not recognized. The latter has no planning whatsoever and is the
refore recognized as pure impulse purchasing (Bayley). The phenomenon regained attention
in theeighties, where the experiential aspect of impulse shopping itself began to be explored.
Engeland Blackwell defined impulse
purchasing as ―a buying action undertaken without a problem
previously having been recognized or buying intention been formed before entering the
store.‖(Engel.) This is the
most widely accepted definition of impulse shopping.Most of the researches on impulse
buying behaviour have been conducted in the Westernsociety which is considerably more
advanced than India. The objective of this research paper isto explore the incidence of and
difference of impulse buying behavior in supermarkets malls andretail outlets in Mumbai ,
with respect to factors such as product category, grocery bill and
number of products bought, and the shopper‘s gender.
Page 10
CONSUMER BUYING BEHAVIOR :-Definition:
Consumer behavior refers to the mental and emotional process and the
observable behavior of consumers during searching, purchasing and post consumption of a pr
oduct orservice.Consumer behavior involves study of how people buy, what they buy, when
they buy andwhy they buy. It blends the elements from psychology, sociology,
sociopsychology,anthropology and economics. It also tries to assess the influence on the
consumer from groupssuch as family, friends, reference groups and society in general.Buyer
behavior has two aspects: the final purchase activity visible to any observer andthe detailed or
short decision process that may involve the interplay of a number of complexvariables not
visible to anyone.
Factors Affecting Consumer Buying Behavior :-
Consumer buying behavior is influenced by the major three factors:1. Social Factors2.
Psychological Factors3. Personal Factors.
A. Social Factors :-
Social factors refer to forces that other people exert and which affect consumers‘
purchase behavior. These social factors can include culture and subculture, roles and family,
social class and reference groups.
Example:
By taking into consideration Reference group, these can influence/ affect theconsumer buying
behavior. Reference group refers to a group with whom an individual identifiesherself/
himself and the extent to which that person assumes many values, attitudes or behaviorof
group members. Reference groups can be family, school or college, work group,
clubmembership, citizenship etc.
Page 11
Reference groups serve as one of the primary agents of consumer socialization andlearning
and can be influential enough to induce not only socially acceptable consumer
behavior but also socially unacceptable and even personal destructive behavior. For example,
if fresherstudent joins a college / university, he/she will meet different people and form a
group, in thatgroup there can be behavior patterns of values, for example style of clothing,
handsets whichmost of group member prefer or even destructive behavior such as excessive
consumption ofalcohol, use of harmful and addictive drugs etc. So, according to how an
individual referenceshim / herself to that particular reference group, this will influence and
change his/her buying behavior.
B. Psychological Factors :-
These are internal to an individual and generate forces within that influence
her/his purchase behavior. The major forces include motives, perception, learning,attitude an
d personality.
Example:
Attitude, is an enduring organization of motivational, emotional, perceptual andcognitive
processes with respect to some aspect of our environment. Consumer form attitudetowards a
brand on the basis of their beliefs about the brand. For example, consumers of Sony products
might have the belief that the products offered by Sony are durable; this will influencethose
customers to buy Sony products due to this attitude towards the brand.
C. Personal Factors :-
These include those aspects that are unique to a person and influence purchase
behavior.These factors include demographic factors, lifestyle, and situational factors.
Example:
Lifestyle is an indicator of how people live and express themselves on the basis of
theiractivities, interests, and opinions. Lifestyle dimension provide a broader view of people
abouthow they spend their time the importance of things in their surroundings and their
beliefs on broad issues associated with life and living and themselves.
This is influenced by demographicfactors and personality.
Page 12
E.g. A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and
lessinformal clothes like jeans as compared to a Mechanic or Civil engineer. So according to
theirlifestyle and profession, the buying behavior of people differ from one another.
CONSUMER BUYING DECISION PROCESS :-Definition:
Consumer buying decision process is the processes undertaken by consumer in regardto a
potential market transaction before, during and after the purchase of a product or service.
Consumer decision making process generally involves five stages:
Page 13
Consumer behavior is a study of how individuals make decisions to spend theiravailable
resources (time, money and effort) on consumption of related items (What, why, when,where
and how they buy and use such products and services). Also we need to understand,
whyconsumers make the purchases that they make? What are the factors that influence
consumer purchases? What is the changing factors in our society that guide such purchase
behavior.
The 5 stages of consumer decision process are:
Problem Recognition :-
Purchase decision making process begins when a buyer becomes aware of anunsatisfied need
or problem. This is the vital stage in buying decision process, because withoutrecognizing the
need or want, an individual would not seek to buy goods or service. There areseveral
situations that can cause problem recognition, these include:·
Depletion of stock·
Dissatisfaction with goods in stock·
Environmental Changes·
Change in Financial Situation·

Marketer Initiated Activities
Example:
Its when a person recognizes that she can not make a call from her mobile phone
that‘s when she recognizes that her phone has been damaged i.e. the phone has hardware
problems and needs to be repaired or buying a new piece.
Information Search :-
After the consumer has recognized the need, he / she will trying to find the means tosolve that
need. First he will recall how he used to solve such kind of a problem in the past, thisis called
nominal decision making. Secondly, a consumer will try to solve the problem by askinga
friend or goes to the market to seek advice for which product will best serve his need, this
iscalled limited decision making.
Page 14
Sources of information include:
·
Personal sources·
Commercial Sources·
Public sources·
Personal experience
Example: (
continuing from previous…
)
The user of the phone after recognizing that her phone is damaged, she will eventuallytry to
find out how she can repair her phone. If she cannot repair it herself she will ask a friend
tohelp out, if the friend can not solve the problem she will go to mobile repair shop, if they
alsocan not repair it then she will try to find which mobile phone is good and that can serve
her need.In this process of information collection it will yield awareness of set of brands of
mobile phonesshe can buy.
Alternatives evaluation :-
Consumers‘ evaluates criteria refer to various dimension; features, characteristics and
benefits that a consumer desires to solve a certain problem. Product features and its benefit i
swhat influence consumer to prefer that particular product. The consumer will decide
which product to buy from a set of alternative products depending on each unique feature that
the product offers and the benefit he / she can get out of that feature.
Example: (
)
When that user got enough information concerning the different brands of
mobile phones available in the market, she will decide which kind of a mobile phone and bra
nd
she‘s
going to buy depending upon her need for that particular mobile, either a mobile for
multimediaand entertainment, smartphone or classic phone.
Purchase Action :-
This stage involves selection of brand and the retail outlet to purchase such a product.Retail
outlet image and its location are important. Consumer usually prefers a nearby retail outletfor
minor shopping and they can willingly go to a far away store when they purchase itemswhich
are of higher values and which involve higher sensitive purchase decision.
Page 15
After selecting where to buy and what to buy, the consumer completes the final step
oftransaction by either cash or credit.
Example: (
)
After selecting brand of the phone and model from different alternatives of
mobile phones, she will make a final decision of where to buying that phone and make the fin
altransaction procedures.
Post-purchase Actions :-
Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with
the purchase is basically a function of the initial performance level expectation and perceived
performance relative to those expectations. Consumer tends to evaluate their wisdom on the p
urchase of that particular product. This can result to consumer experiencing post purchase
dissatisfaction. If the consumer‘s perceived performance level is below
expectation and fail tomeet satisfaction this will eventually cause dissatisfaction, and so the
brand and/ or the outletwill not be considered by the consumer in the future purchases. This
might cause the consumerto initiate complaint behavior and spread negative word-of-mouth
concerning that particular product.
Example: (
)
If she decided to buy a multimedia phone she will try to compare the quality of musicit
provides and pictures taken if they meet her expectations. If she will find that her
expectationare meet she will be satisfied, if she found that there are more additional features
that she did notexpect this mobile phone to have, she will be delighted, otherwise she will be
dissatisfied.
Conclusion :-
We can see impulse behaviour do not have a place if buyers behavior follow suchsystematic
sequence. A study conducted in various branded retail outlets in 5 metro cities inIndia shows
54% of all sales are actually unplanned purchases. This is why the study of impulse purchase
in Indian context is so important.
Page 16
Maslow’s Hierarchy of Needs
:-
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individualsin
life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim
tomeet basic psychological needs of hunger and thirst. When this has been met they then
move upto the next stage of the hierarchy, safety needs, where the priority lay with job
security and theknowing that an income will be available to them regularly. Social needs
come in the next levelof the hierarchy, the need to belong or be loved is a natural human
desire and people do strive forthis belonging. Esteem need is the need for status and
recognition within society, statussometimes drives people, the need to have a good job title
and be recognised or the need to wear branded clothes as a symbol of status
….
Page 17
Self-actualisation the realisation that an individual has reached their potential in life.
The point of self-
actualisation is down to the individual, when do you know you have reached your point of
self-fulfilment?But how does this concept help an organisation trying to market a product or
service?Well as we have established earlier within this website, marketing is about meeting
needs
and providing benefits, Maslows concept suggests that needs change as we go along our path
ofstriving for self-actualisation. Supermarket firms develop value brands to meet the
psychologicalneeds of hunger and thirst. Harrods develops products and services for those
who want have mettheir esteem needs. So Maslows concept is useful for marketers as it can
help them understandand develop consumer needs and wants.
Types Of Buying Behavior :-
1.
Complex buying behavior:

Consumers undertake complex buying behavior when theyare highly involved in a purchase
and perceive significant differences among brands.Consumers may be highly involved when
the product is expensive, risky, purchasedinfrequently, and highly self-expressive. Typically,
the consumer has much to learn aboutthe product category.
Page 18
For example
, a personal computer buyer may not know what attributes to consider.Many product features
carry no real meaning: a "Pentium Pro chip," "super VGAresolution," or "megs of RAM."
This buyer will pass through a learning process, firstdeveloping beliefs about the product,
then attitudes, and then making a thoughtful purchase choice. Marketers of high-
involvement products must understand theinformation-gathering and evaluation behavior of
high-involvement consumers. Theyneed to help buyers learn about product-class attributes
and their relative importance, andabout what the company's brand offers on the important
attributes. Marketers need todifferentiate their brand's features, perhaps by describing the
brand's benefits using printmedia with long copy. They must motivate store salespeople and
the buyer'sacquaintances to influence the final brand choice.
2.
Dissonance-reducing behavior:
Dissonance-reducing buying behavior occurs whenconsumers are highly involved with an
expensive, infrequent, or risky purchase, but seelittle difference among brands. For example,
consumers buying carpeting may face ahigh-involvement decision because carpeting is
expensive and self-expressive.
Yet buyers may consider most carpet brands in a given price range to be the same. In thiscase
, because perceived brand differences are not large, buyers may shop around to learnwhat is
available, but buy relatively quickly. They may respond primarily to a good priceor to
purchase convenience.After the purchase, consumers might experience
postpurchase dissonance
(after-sale discomfort) when they notice certain disadvantages of the purchased carpet brand
orhear favorable things about brands not purchased. To counter such dissonance,
themarketer's after-sale communications should provide evidence and support to
helpconsumers feel good about their brand choices
3.
Habitual buying behavior:

Habitual buying behavior occurs under conditions of lowconsumer involvement and little
significant brand difference. For example, take salt.Consumers have little involvement in this
product category
—
they simply go to the storeand reach for a brand.
Page 19
If they keep reaching for the same brand, it is out of habit rather than strong brandloyalty.
Consumers appear to have low involvement with most low-cost, frequently purchased
products.In such cases, consumer behavior does not pass through the usual belief-attitude-
behavior sequence. Consumers do not search extensively for information about the brands,
evaluate brand characteristics, and make weighty decisions about which brands
to buy. Instead, they passively receive information as they watch television or readmagazines.
Ad repetition creates
brand familiarity
rather than
brandconviction.
Consumers do not form strong attitudes toward a brand; they select the brand because it is
familiar. Because they are not highly involved with the product, consumersmay not evaluate
the choice even after purchase. Thus, the buying process involves
brand beliefs formed by passive learning, followed by purchase behavior, which may or may
not be followed by evaluation.Because buyers are not highly committed to any brands,
marketers of low-involvement products with few brand differences often use price and sales
promotions tostimulate product trial. In advertising for a low-involvement product, ad copy
shouldstress only a few key points. Visual symbols and imagery are important because they
can be remembered easily and associated with the brand. Ad campaigns should include
highrepetition of short-duration messages. Television is usually more effective than
printmedia because it is a low-involvement medium suitable for passive learning.
Advertising planning should be based on classical conditioning theory, in which buyers learn
toidentify a certain product by a symbol repeatedly attached to it.Marketers can try to convert
low-involvement products into higher-involvementones by linking them to some involving
issue. Procter & Gamble does this when it linksCrest toothpaste to avoiding cavities. Or the
product can be linked to some
involving personal situation. Nestlé did this in its series of ads for Taster's Choice coffee, eac
hconsisting of a new soap-opera-like episode featuring the evolving romantic
relationship between two neighbors. At best, these strategies can raise
consumer involvement from alow to a moderate level. However, they are not likely to propel
the consumer into highlyinvolved buying behavior.
Page 20
4.
Variety- seeking buying behavior:

It occurs in situations where there are low-involvement purchases but significant differences
in brands. I this situation, rather thanengage in lengthy pre-purchase surveys, consumers, if
curious about a new brand ordissatisfied consumer with the product choice, engage in
switching to another brand. Insuch situations the advertising approach differs across firms.
Market leaders often want toencourage habituation and therefore employ conditioning
strategies; whereas challengerfirms rely instead on inducing consumers to switch and
therefore employ more cognitiveapproaches; these appeal to consumers on the basis of
reasons for making the switch.
Introduction
–
Impulse or Myth?
Why do I always find my mother and my nephew at Bigbazar, when I can't find themat
home? The reason is not that the distance is less than a kilometer. My mom, an ideal prey
fortoday's retail format and my nephew at the age of three is deemed to be a consumer in his
own
right plays cat and mouse with my father‘s limited salary. Every time she purchased
something
big, she comes up with her smiling face to console me and my dad with a same old excuse.
Shehad gone for some grocery items and end up buying a new OTG. Every time whatever
promisesshe made to me, she end up repeated the same story month after month. This
introspection of myown family motivates me for the retrospection of others.Impulse buying
happens when you get trapped in a buildup situation propagated byeffective retail
communication or out of the mind discount offers and you buy without thinkingmuch about
it. Impulse items can be anything, a new product, samples or well-established products
at surprising low prices. Research conducted by University of California tracks
30,000 purchases made by 4,200 customers who were engaged in a shopping trip in US
reveals that 68%of their purchases were unplanned. A similar research conducted in UK by
Point of PurchaseAdvertising International (POPAI) revealed that 70% of the purchase
decisions were taken onspot in the store.Impulse buying is such a sudden phenomenon where
instinct plays a predominant role.A customer makes a purchase without proper planning or
prior homework. This is the scenariothat marketer and retailer try to capitalize and harness.
Page 21
They provide such impulsive stimuli which are packaged innovatively clubbed
with basic needs and wants. In the name of instant gratification and glory customers are often
victimized. Instincts are driven by emotions and emotions are driven by attitude and
perception.
Impulsive Buying :-
―Impulse buying has been considered a pervasiv
e and distinctive phenomenon in theAmerican lifestyle and has been receiving increasing
attention from consumer researchers and
theorists (Youn & Faber, 2000, p.179)‖. Despite the neg
ative aspects of the impulse buying behavior from past research, defining impulsive behavior
as an irrational behavior (Ainslie,1975; Levy, 1976; Rook & Fisher, 1995; Solnick,
Kannenberg, Eckerman, & Waller, 1980),resulting from a lack of behavioral control (Levy,
1976; Solnick et al., 1980), impulse purchasesaccount for substantial sales across a broad
range of product categories (Bellenger at al, 1978;Cobb & Hoyer, 1986; Han, Morgan,
Kotsiopulos, & Kang-Park, 1991; Kollat & Willet, 1967;Rook & Fisher, 1995; Weinberg
& Gottwald, 1982). A study found that impulse purchasesrepresented between 27% and 62%
of all department store purchases (Bellenger et al., 1978).Rook and Hoch (1985) assert that
most people have experienced an impulse purchase. Otherresearch findings support this
assertion revealing almost 90% of respondents have made
grocery purchases on impulse occasionally (Welles,
1986), and between 30% and 50% of all purchasescan be classified by the buyers themselves
as impulse purchases (Bellenger et al., 1978; Cobb &Hoyer, 1986; Han et al., 1991; Kollat &
Willett, 1967).Early studies on impulse buying were more concerned with the definitional
issuesdistinguishing impulse buying from non-impulse buying and attempted to classify
thetypes ofimpulse buying into one of several sub-categories (Bellenger et al., 1978; Kollat &
Willet, 1967;Stern, 1962), rather than to understand impulse buying as a trait of consumer
buying behavior.Therefore, this approach generated a theory that ignores the behavioral
motivations of
impulse buying for a large variety of products and, instead, focuses on a small number of rela
tivelyinexpensive products. However, this type of approach did not provide sufficient
explanations asto why so many consumers appear to act on their buying impulse so
frequently.
Page 22
Therefore, researchers began to re-focus attention on impulse buying behavior and
toinvestigate the behavioral motivations of impulse buying (Cobb & Hoyer, 1986; Hausman,
2000;Piron, 1991; Rook, 1987; Rook & Gardner, 1993; Rook & Fisher, 1995; Weun, Jones,
& Betty,1998).The pervasiveness of impulse buying, even for relatively expensive products,
ledresearchers to look at impulse buying as an inherent individual trait, rather than a
response toinexpensive product offerings (Cobb & Hoyer, 1986; Rook, 1987). Recently,
researchers appearto agree that impulse buying involves a hedonic or affective component
(Piron, 1991; Puri, 1996;Rook & Fisher, 1995
; Wenn et al, 1998). Today‘s 14
research suggests that impulse
buying behavior is much more complex than previously conceptualized; that this behavior ste
ms fromthe desire to satisfy multiple needs that underlie many types of buying behavior
(Hausman,2000).
Impulse
–
The Missing Link :-
Impulse buying alters the normal decision making modules in consumers' mental spaceand
rapture all consumer behaviour phylosophies. Consumer mental accounting is a process
bywhich a customer codes, categorise and evaluate the financial outcome of a choise.
Impulseupsets all the logical sequence of the consumers' actions and then is replaced with an
irrationalmoment of self gratification and hence altering the age old time-tested theories.
Impulse itemsappeal to the emotional side of consumers. Some items bought on impulse are
not consideredfunctional or necessary in the consumers' lives. Similarly why do I need an
OTG (Oven Toaster& Griller), when I already have a microven?Sometimes customers are not
able to express the selection of their brand and might not be aware of his internal decision
making. But an unconcious decision making process takes placein his mind which is
influenced by cognition and experience. Thus impulse buying behaviour isvery much tune
with the psychological and physiological need of the customer.According to American
Marketing Association
–
"A purchase behavior that is assumedto be made without prior planning or thought. Often, it
is claimed, impulse buying involves anemotional reaction to the stimulus object (product,
packaging, point-of-purchase display, orwhatever) in addition to the simple acquisition act.
Page 23
Many researchers all round the globe are conducting research on impluse
buying behavior of which Sunghwan Yi of University Guelph is one of
them. He is conducting studieson various strategies adopted by the shoppers to restrict their
impulse purchases.According to Yi, "If we can reduce the number of impulse purchases, we
can start toreduce the onset of compulsive behaviour," Another important objective to initiate
research onimpulse is to reduce the tendency of impulse because it can be converted into
compulsive behaviour. Make your customer dancing at your tunes.Jacqueline J. Kacen,
Professor of Department of Business Administration, University ofIllinois, carried out a
series of multi-country survey among the consumers of US, Australia andSouth-East Asia. He
has tried to find out cross-cultural factors influencing impulse
purchase behavior. The research abstract suggests, "Impulse buying generates over $4 billion
in annualsales volume in the United States. With the growth of e-commerce and television
shoppingchannels, consumers have easy access to impulse purchasing opportunities, but little
is knownabout this sudden, compelling, hedonically complex purchasing behavior in non-
Westerncultures." At this context a natural question arise if cross-cultural influences are at all
a factorthat may trigger consumer's impulses not neglecting or undermining other correlated
factors likeattitude, perception, personality, emotion, and Self-Image. Personal significance
of spotsatisfaction is very important. So the influencing interferences of such factor cannot be
negated.Impulse is not a US disease.For half a century there has been a series of investigation
conducted by consumerresearcher to investigate empirical evidence of impulse, even though
there hasn't been anysignificant break through.Prof. Dennis W Rook and Prof. Robert J
Fisher of University Chicago in the year 1995through one of their article try to establish a
conceptual and empirical framework of consumerImpulse. Theirs' research tried to knot a
relationship between the consumers impulsiveness traitand associated buying behaviors
attributes like demographic and psychological factors. The
most prominent segment of the study is such relation becomes significant only when consum
ersconsidered that such impulse is appropriate. Impulse is so many occasions are followed
bydissonance reducing behavior. Till date there has not been any significant research on
theimpulse behavior of Indian consumers on the context of retail revolution and which is
almostsimultaneous and coincidental .
Page 24
Impulse and Perception :-
Perception is a process by which the individual selects, organizes and interprets stimuliinto a
meaning and coherent picture of the world. The customer who is exposed to any of
suchmarketing stimuli or an advertisement, the first reflex that is initiated in the customer's
mind isknown as sensation. Sensation is received by the five senses of the customer. The
attributes thattrigger sensation in the customer's mind can be product feature, price, and
promotionalattractiveness. Optimum quantum of sensational mix that ignites instinct is the
absolutethreshold. This absolute threshold must generate some emotional element that will
eventuallyresult into impulse.
Impulse and Attitude :-
Attitude is a complex mental state of readiness, organized through experience, creating

adynamic influence on the individual's response to all objects and situations to which it is
related.Fishbein extended model 'Theory of reasoned action' explains the interrelationships
of psychological factors and external factors that initiate purchase behavior.SelfBelief +
Evaluation = AttitudeSelf Perception + Referral Opinion = Subjective NormAttitude +
Subjective Norm = Intention to perform action
The twisted from of this theory in terms of impulse purchase
;Self Belief + Instant Evaluation (optimum sensation) = AttitudeSelf Perception + Self
Opinion (absolute threshold) = Subjective NormAttitude + Subjective Norm = perform
impulse action
Impulse and Promotions
:-
Promotions and retail merchandising is the fearsome tool of generating sensation. TheIndia
Retail wave has supplemented the growth of Sales Promotion. More of advertising moneyis
now pouring into marketing and promotion of retail brands. Most supermarket shelves are
a buzz with more promos than merchandise and within the stricking distance to hunt a
customer.Categories include, grocery items, juices and beverages, confectionery, leather
goods, consumerdurables, Apparels and jewelry items ready to aroused customers appetite to
consume.
Page 25
On the other hand more and more retail consumers are ready for the best bargain of
theirlifetime. From both the frontiers retailer will generate impulse.There can be several other
reasonsof such retail promotional mania and they are given as follows :-1. To break the
clutter of growing number of retail brands2. Declining brand loyalty and customer becoming
more promotional sensitive.3. Brand proliferation and low top of the mind recall4. Tendency
to go back to unorganized retail.
Impulse
–
No Looking Back :-
In the midst of such economic insurrection new malls are coming every day and fewhundred
more are coming up in the next five years. Multiple retail formats have sprung up
acrossdifferent cities, city horizons are flooded with malls and shopping complexes. More
and morewill penetrate in semi urbanize and rural India emulating the Wal-Mart model.Retail
consumptions in India are mammoth, close to Rs 9,012 billion. This Rs 9,012 billion will
expect to become Rs13,512 billion in the next few years. This is the era of
Organisedretail and which is expected to grow at 40% for the next five years. If we go by the
RAIstatistics, India will witness impulse purchases amounting to
Rs 2,702 billion that is enough toelectrify the whole of rural India. In late 1960s India
witnessed Green Revolution, early 1980switnessed White Revolution, Mall Revolution has
just begun. Average Indian, as consumers become richer, younger, more ambitious
and instinctive than before. Indian consumers are on thefull stride in terms of their
consumption levels that can surpass US consumption level in next 20years.In the past decade
the Indian demographic pattern has changed not only in terms ofincome but also in terms of
socio-cultural attributes and family lifecycles. The double
incomes becoming a norm in urban areas, increased advertising and sales promotion have ma
de buyingmore achievable and exhilarating to a larger portion of the population. In this
context nobodydares to ask weather such promotional offer influence impulse behavior
among urban customeror not. Through my diminutive research endeavor I would like focus
whether today's urban classare carrying the same western syndrome "Impulse" and are
becoming easy prey to the retail brands.
Page 26
WHY PEOPLE BUY IMPULSIVELY
?
•
Some say that it acts as a stress reliever

•
Perceive it as the best buy of that time

•
People are captivated as an audience

•
Consumers have extra money in their budget

•
BreakthroughA recent poll game reveals that more than 90% of people have acted
impulsively.Human beings are high-class than animals, but are also affected and led by
emotion. They become excited when the hormone is inspired. Likewise, they are frustrated
when work or life isobstructed. They always expect new matters, which is entirely different
with other creatures.However, when the endeavor collapses in front of harsh realities or the
final result is differentfrom their original plans, they always act impulsively. Some people
succeed, but also, somefailed. What follows behind impulse may be pain and regret. Yet if
you ask me whether
to behave without consideration, I have to admit as well. Life that is planned regularly is not
meaningful. Inhibition of natural impulses may cause psychological problems, which has
been proved by many events. So what
we need to do is to be balanced between reason and emotion.Women are much easier than
men to become impetuous. They smile while gettinnewcontent job, move while watching the
movie, and also cry while encountering failure. Anyway,the biggest similarity almost on
every woman is they expect to be stylish at any time. They lookat their wardrobes regularly,
trying to find what is lacking. World-renowned brands are busy in
focusing on women‘s clothes, handbags and shoes. It becomes natural to see a woman spend
most of her hard-earned money in the latest styles of attires or handbags. When Louis
Vuitton,Gucci, Chanel and Prada walk into the realm of top fashion, so many women may
break theircredit cards to own a piece from them. Few females can reject an elegant & stylish
product. Eventhough they brought a limited amount of money to shopping, they always
stretch their hands to bank cards. Confronting fashion, every woman is impulsive!Women get
content if receiving the hottest styles. They splurge their stylish looks.However, what seems
unfortunate is vogue hits people in an incredible speed. We will neverknow what it changes
in the next minute.
Page 27
When the next trend is stirred up, previous most popular style costing people a heftyhigh
price becomes nothing expect an out-dated item that will have to fad from fashion
world.Women begin to doubt previous impulse for whether it is valuable. Fashion is an
endless way,which extends to every corner of the world. What can not be predicted is which
way it tends toadvance at the next turn. For those of you who follow all things and everything
fashion is related,this is a dangerous journey. So turn back and harmonize impulse
with sense!
MAP ILLUSTRATING IMPULSE SHOPPING
:-
Page 28
Categories of impulse buying :-
The understanding of impulse purchasing was greatly improved through Stern's

(1962)identification of four distinct classifications of impulse purchasing: planned,
pure,reminder andsuggestion impulse purchasing. Impulse buying or as some marketers
prefer to call it
unplanned purchasing is another consumer purchasing pattern. As the term implies, the purch
ase was notspecifically planned. The process is rather widespread and may have significant
implications forthe marketerIt is difficult for marketers to agree on a definition of impulse
buying. Four types ofimpulse purchases have been cited:
1) Pure impulse:
A novelty or escape purchase which breaks a normal buying pattern.
2) Suggestion impulse:
A shopper having no pervious knowledge of a product sees the item forthe first time and
visualizes a need for it.
3) Reminder impulse:
A shopper sees an item and is reminded that the stock at home needsreplenishing or recalls,
an advertisement or other information about the item and a perviousdecision to purchase.4)
Planned impulse:
A shopper enters the store with the expectations and intention of makingsome purchasers on
the basis of price specials, coupons, and the like.While most marketing research has treated
impulse purchasing simply as unplannedsome maintain that it is an traditional process in
which the urge to gratify an impulse triumphsover the rational parts of the mind. In this view
five critical elements seem to distinguishimpulsive from non impulsive consumer behavior.
First the consumer has a sudden andspontaneous desire to act, involving a marked divergence
from pervious behavior. Second, thissudden desire to buy puts the consumer in a state of
psychological disequilibrium where he feelstemporarily out of control. Third, the consumer
may experience psychological conflict andstruggle weighting the immediate satisfaction
against the long term consequences of the
Page 29
purchase. Fourth, consumer reduces their cognitive evaluation of product features. And Fifth
consumers often buy impulsively without any regard for future consequences.It has been
suggested that the explanations of why consumers engage in suchimpulsive buying are that
they do not realize the consequences of their behavior that they arecompelled by some force
to buy even though they realize the dire consequences and that in spiteof the ultimate
problems of buying, they are more intent on fulfilling present satisfaction.How does
consumer feel after impulse purchasing? The study indicates that
impulse buying is an effective tactic for breaking out of an undesirable mood state such as de
pression,frustration or boredom, Ninety percent of respondents felt somewhat to extremely
happy aftersuch purchases indicating a pervasive immediate gratification from it. There was
someambivalence however with almost 40 percent somewhat to extremely guilty over, their
mostrecent impulse purchase.
The Extent Of Impulse Buying
:-
There are several studies which have indicated the significant and growing trend
towardunplanned purchasing, Here are some of the conclusions on the extent of impulse
buying :-
1)
More than 33 percent of all purchase in variety and drugstores are unplanned.
2)
One half of buying decisions in supermarkets are unplanned
3)
Thirty nine percent of all department store shopper and 62 per cent of all discount
storeshoppers purchased at least one item on a unplanned basis.These statements are
somewhat deceiving in that no distinction is made between thevarious kinds of impulse
purchases possible for consumers. Although many consumers may notuse a shopping list,
their product and brand purchases are certainly rational (as I have defined it)and most
probably fit into the reminder and planned impulse categories rather than the pure
andsuggestion impulse types.The important point for marketers is that there is a large amount
of decision makingoccurring at the point of purchase. Thus, as far as the retail decision maker
is concerned
impulse buying can be pragmatically defined as purchasing resulting from a decision to buy a
fter theshopper has entered the store (or perhaps simply turned on their television at home to
shop viacable)
Page 30
CHARACTERSTICS OF IMPULSIVE BUYING :-
Unplanned, Spontaneous and intense urge to buy the purchaser often

ignoring theconsequences.
Without much prior knowledge of the product or intension to buy.
A kind of emotional and irrational purchase often for reasons like fun, fantasy and socialand
economic pleasure
Consumer often regret their purchase after purchasingRook (1987) identified impulse buying
behavior with descriptors such as aspontaneous, intense, exciting, urge to buy with the
purchaser often ignoring the consequences.While more recent research in this area discusses
impulse buying as a trait rather than as aclassification of a purchase decision, researchers
agree that consumers vary in their impulsebuying tendency (Puri, 1996; Rook & Fisher,
1995). Without having prior information of a new product or intention to purchase a certain
item, a consumer is exposed to stimuli, suggesting thata need can be satisfied through the
purchase. Youn and Faber (2000) identify several differenttypes of internal states and
environmental/sensory stimuli that serve as cues for triggering
impulse buying. Internal cues include respondents‘ positive and negative feeling states.
Environmental/sensory cues encompass atmospheric cues in retail settings, marketer-
controlledcues, and marketing mix stimuli (Young & Faber, 2000)
Normative Evaluations For Impulse Buying Behavior :-
Past research shows that planned buying behavior results in accurate decisions, butimpulsive
behavior results in decision errors, (Halpern, 1989; Johnson-Laird, 1988)
increasing possibilities of negative consequences (Cobb & Hoyer, 1986; Rook, 1987; Weinbe
rg &Gottwald, 1982). These negative evaluations of impulse buying behavior possibly stem
from psychological studies of impulsiveness that characterize impulsive behavior as a sign ofi
mmaturity resulting in a lack of behavioral control (Levy, 1976; Solnick et al., 1980) or as
anirrational, risky, and wasteful behavior (Ainslie, 1975; Levy,1976; Solnick et al., 1980).
Page 31
However, some research on impulse buying behavior indicates that impulse buyers donot
consider their impulsive purchases as wrong and report even favorable evaluations of their
behaviors. Specifically, in Rook‘s and Fisher‘s (1995) study
of ―Trait and normative aspects ofimpulsive buying behavior‖, a relatively small number of
respondents (only 20%) reported
feeling bad about their impulse buying, but a large number of respondents (41%) reported
thatthey actually felt good about their impulse purchases. One explanation for this
phenomenon isthat consumers buy products for a variety of non-economic reasons, such as
fun, fantasy, andsocial or emotional pleasure. Some consumers even see shopping as retail
therapy, as a way ofgetting over the stresses of a working day or simply a fun day out
(Hausman, 2000) supportingthe hedonic modification for impulse buying .
PLANNED VS IMPULSIVE BUYING :-PLANNED BUYING :-
•
Well planned long term rational buying
•
Consumer gathers Complete knowledge of the product
•
Intention to buy
•
Accurate decision
•
Post purchase satisfaction.
IMPULSIVE BUYING :-
•
Spontaneous unplaned irrational buying
•
Consumers buy just after the product awareness is induced
•
No intention to buy
•
Decision errors
•
Post purchase satisfaction not assured,often regret
Page 32
Visual Merchandising :-
Visual merchandising, or visual presentation, is the means to communicate a
store/company‘s fashion value and quality image to prospective customers. ―The purpose
ofvisual merchandising is to educate the customer, to enhance the store/company‘s image,
and to
encourage multiple sales by
showing apparel together with accessories‖ (Frings, 1999, p. 347).
Therefore, each store/company tries to build and enhance its image and concept through
visual presentations, which appeal to shoppers and ultimately transform them into customers
by build
ing brand loyalty and encouraging customers‘ buying behaviors. Visual
merchandising isdefined as ―the presentation of a store/brand and its merchandise to the
customer through theteamwork of the store‘s advertising, display, special events, fashion
coor
dination, and
merchandising departments in order to sell the goods and services offered by the
store/company‖
(Mills, Paul, & Moorman, 1995, p. 2). Visual merchandising ranges from
window/exteriordisplays to interior displays including form displays and floor/wall
merchandising as well as promotion signage. It also broadly includes advertising
and brand/store logo (Mills et al, 1995).In this study, however, only window display and in-
store display comprise of form/mannequindisplay, floor merchandising and promotional
signage were investigated.
Visual Merchandising in Relation to Impulse Buying Behavior :-
In-store browsing may be a link between internal and external factors, as an
importantcomponent in the impulse buying process as wel
l as a link between consumers‘ impulse buying behavior and retail settings
including exterior and interior display. ―Instore browsing is the in
-
store examination of a retailer‘s merchandise for recreational and informational purposes
without
an immediate
intent to buy‖ (Bloch, Ridgway, & Sharrell, 1989, p.14). Jarboe and McDaniel
(1987) found customers who browsed in a store made more unplanned purchases than non-
browsers in a regional mall setting. As a customer browses longer, she/he will tend to
encountermore stimuli, which would tend to increase the likehood of experiencing impulse
urges. This
supports Stern‘s (1962conceptualization of impulse buying as a response to the consumer‘s
exposure to in-store stimuli. Shoppers may actually use a form of in-store planning to
finalizetheir intentions (Rook, 1987).
Page 33
The store stimuli serves as a type of information aid for those who go to the storewithout any
predetermination of what they need or buy, and once they get into the store, they arereminded
or get an idea of what they may need after looking around the store. In other words,
consumer‘s impulse buying behavior is a response made by being confronted with stimuli
that
provoke a desire that ultimately motivate a consumer to make an unplanned purchase decisio
nupon entering the store. The more the store stimuli, such as visual merchandising, serves as
ashopping aid, the more likely the possibility of a desire or need arising and finally creating
animpulse purchase (Han,1987; Han et al., 1991). The importance of window display in
relation to
consumers‘ buying behavior has received minimal attention in the literature. However, since
aconsumer‘s choice of a store is influenced by the physical attractiveness of a store (Darde
n at al.,1983), and the first impressions of the store image is normally created at the façade
level, it can
be suggested that window display may influence, at least to some degree, consumers‘ choice
of a
store when they do not set out with a specific purpose of visiting a certain store and
purchasing acertain item. The initial step to getting customers to purchase is getting them in
the door.
Factors/Cues influencing impulse buying :-
Few recent studies investigated the factors that affect impulse buying.
Researchers havesuggested that internal states and environmental/external factors can serve
as cues to trigger
consumers‘ impulse behavior to purchase. Research shows that situational factors have
practical
and theoretical significance in that many decisions are made at the point-of-purchase (Cobb
&
Hoyer, 1986) as a reflection of ―low involvement‖ decision
-making strategies (Hoyer, 1984).The research on situational influence can be described
as examining the relationship amongshopper characteristics and the features of retailing or
point-of-purchase situations. Shoppercharacteristics might include involvement (Smith &
Carsky, 1996), attitude (Reid & Brown,1996), and ethnicity (Crispel, 1997), while the
retailing features could include outlet size (Owen,1995), retail format (Fernie, 1996; Fernie &
Fernie, 1997), and store personality (Abrams, 1996;Burns, 1992).
Page 34
INTERNAL FACTORS :-
Mood of the individual, positive mood triggers impulsive buying
Needs: impulsive buying is more a need than a want

Hedonic pleasure: potential entertainment and emotional worth of shopping
Cognitive/affectiveAffect or mood has been identified as a variable that influences impulse

purchasing(Gardner & Rook, 1988; Rook, 1987; Rook & Gardner, 1993). Rook and Gardner
(1993) foundthat 85% of their survey respondents indicated a positive mood would be more
constructive toimpulse buying than a negative mood. Respondents stated that, in a positive
mood, they had anunconstrained feeling, the desire to reward themselves, and higher energy
levels. Weinberg andGotwald (1982) found that impulse buyers exhibited greater feelings of
delight, enthusiasm,
and joy while Donovan and Rossiter (1982) found that pleasure was positively associated wit
h alikehood of overspending. A number of studies in consumer behavior show that impulse
buyingsatisfies hedonic desires (Piron, 1991; Rook, 1987; Thompson, Locander, & Pollio,
1990).Individual consumers' impulse buying behavior is correlated with their desires to fulfill
hedonicneeds, such as fun, novelty and surprise (Hirschman, 1980; Holbrook & Hirschman,
1982). Inaddition, emotional support needs may also be satisfied by the social interaction
inherent in theshopping experience. For instance, research findings indicate that
consumers report feelinguplifted or energized after a shopping experience (Cobb & Hoyer,
1986; Rook, 1987) supportingthe recent concept of impulse buying behavior as a trait
motivated by hedonic desire. Thehedonic value of shopping reflects potential entertainment
and emotional worth of shopping(Babin, Darden, & Griffin, 1994). It has been suggested that
shopping without specific intent,may be more significant than acquisition of products and can
provide a highly pleasurableshopping experience (Maclinnis & Price, 1987; Sherry, 1990).
Since the goal of the shoppingexperience is to provide satisfaction of hedonic needs, the
products purchased during theseexcursions appear to be chosen without prior planning and
represent an impulse buying event.
Page 35
EXTERNAL FACTORS
Windows display
Visual merchandising
In-store form display
Promotional signage
E-commerceSpecific situations and retail settings influence both in-store responses and future
storechoice decisions because of the changing and adoptive nature of expectations,
preferences, and
behavior (Hausman, 2000). For instance, the findings of Darden et al.‘
s (1983) study showed that
consumers‘ beliefs about the physical attractiveness of a store had a higher correlation with a
choice of a store than did merchandise quality, general price level, and selection. This
supports
the notion that consumers‘ choice
of a store is influenced by the store environment, of which
visual merchandising plays a vital role. This view is consistent with Bowers‘ (1973)
observationthat people approach, avoid, and create situations in accordance with their desires.
Customers‘
avoid or leave retail settings that are stressful or obstructive (Anglin, Morgan, &
Stoltman,1999). The expectation/experience of positive feelings generally leads to approach
responses,while avoidance is associated with expectations/experience of negative outcomes
(Dovnovan &Rissiter, 1982; Mehrabian & Russel, 1974; Saegert & Winkel, 1990; Troye,
1985). Researchershave suggested that various aspects of retailing environments can
influence consumer behavior.Kotler (1973-1974) asserts the significant role of various
retailing atmospherics. For instance,music and color have been related to consumer
behavior (Bellizzi & Hite, 1992; Milliman,1986; Yalch & Spangenberg, 1990) suggesting
visual merchandising within the retail settingsmay influence consumer behavior as well.
Page 36
Factors Affecting Impulse Buying Behavior :-
Marketers have long recognized the significance of impulse buying. Empirical studiessuch as
Consumer Buying Habit Studies (
1965
)
and
Drugstore Brand Switching and Impulse Buying
(1965) have investigated the extent of unplanned buying in supermarkets
and drugstoresand showed how different the incidences of impulse purchasing are (as
cited in Prasad,1975).The incidence of impulse buying is increasing mainly because
consumers have acceptedand adapted the methods of buying to certain merchandising
innovations and due to thisinterrelationship of buying to merchandising, impulse buying
will only grow significantly (Stern,1962). We offer the following proposition.
Many researches have been carried out to study the nature of impulse buying andvarious
factors that affect it. Impulse buying is influenced by a variety of economic,
situational, personality, time, location and even cultural factors. Previous researches have me
asured the
impulse buying tendency in regards to buying ―things‖ not specifying product
categories (Beattyand Ferrell, 1998; Puri, 1996; Rook and Fisher, 1995). Researches have
also been conducted tounderstand the underlying motivational factors behind impulse buying.
Similarly researches
have been conducted to study factors that moderate impulse buying behavior. Consumers eng
age inimpulse buying to satisfy hedonic desires for fun, novelty and variety; also
impulsiveness iscorrelated
with consumer‘s desires to
fulfill self esteem and self actualization needs (Hausman,2000). Mai, Jung, Lantz and Leob
(2003) found that individualist orientation was truly related toimpulse buying. Hausman
(2000) has also suggested that more impulsive consumers tend to viewtheir
buying decisions as more laborious. Consumers‘ normative evaluations moderate the
relationship between impulse buying trait and consumers‘ buying behavior (Rook and
Fisher,1995). Here normative evaluation may be understood as co
nsumers‘ judgments
about theappropriateness of making an impulsive purchase in a given buying situation.
Transaction Size affecting Impulse Buying
:-
Stern (1962) has hypothesized circumstances that appear to be associated with theoccurrence
of the behavior. Kollat and Willet (1967) used two measures of transaction size:number of
different products purchased and the grocery bill. They found out that the increase insize of
the grocery bill and number of purchases made resulted in an increase in unplannedimpulse
purchases. Therefore, I offer the following proposition
Page 37
Gender Differences in Impulse buying :-
Several previous researches on impulse buying have paid some attention to the rolegender
plays in determining thi
s behavior. These researches show that men‘s and
women‘s
shopping behaviour differs on many levels. Peter and Olson (1999) discuss that men and
womenhave been found to process information differently (as cited in Coley and Burgess,
2003), relateto and value material possessions differently, purchase different items for
different reasons(Dittmar, Beattie and Friese 1995; Dittmar, Beattie and Friese, 1996) and
approach shopping taskdifferently (Berni, 2001; Chiger 2001).Kollat and Willet (1967) found
that women tend toengage in more impulse buying as compared to men. It is also argued that
women because oftheir propensity to shop more in general, make more impulsive purchases
(Dittmar
et al
., 1996;Rook and Hoch, 1985).On the other hand Cobb & Hoyer (1986) stated that women
are more likely to exhibitsome element of planning before entering the store, whereas men
are more likely to be impulseshoppers. Hausman (2000) did not find significant correlation
between gender and impulse buying behavior.
Shopping List and Impulse buying :-
Studies conducted by Kollat and Willet (1967) indicated that one of the factors thataffects
impulse buying is the presence of a shopping list. This however only holds true if
thetransaction size is greater than 15. When more than 15 or 20 products are purchased,
shoppershaving a list make a smaller percentage of unplanned purchases. However, when less
than 15 or20 products are bought, the shopping list does not affect the percentage of
unplanned purchases.This was also studied and confirmed by Abratt and Goodey (1990). In
order to study the effectson the presence of a shopping list on impulse purchase behavhior, I
present the following proposition.
Page 38
MANAGEMENT PROBLEM TRANSLATED INTO RESEARCH OBJECTIVES :-
ResearchProblem
ResearchQuestionsResearchObjectives
To study theincidence of Impulse purchase decisionswith respect to fivefactors.
What is the incidenceof impulse purchase inSupermarkets, retailoutlets and malls ofMumbai
?
How does incidenceimpulse buying varydue to the presenceof a shopping list?
Does increase in thesize of grocery billincrease the incidenceof impulse purchasedecisions?
Does impulse buyingincrease as the numberof products purchaseincrease?
Is the incidence ofimpulse buying higheramong males thanfemales?
To study the incidenceof impulse buying inSupermarkets of.Supermarkets, retailoutlets and

malls ofMumbai
To study whether purchase intentions areinfluenced by factorssuch as the gender ofthe

shopper, presenceof a shopping list, thenumber of products purchased and the sizeof the
grocery bill.
-
Page 39
HYPOTHESIS :-
Based on our discussion & literature review, we arrived at the following hypotheses which
wewould be testing :-
Hypothesis 1:
Gender and pure impulse purchasing are correlated.
Hypothesis 2
: Age and pure impulse purchasing are correlated
Hypothesis 3
: Wealth and pure impulse purchasing are positively correlated.
Hypothesis 4
: Rate of Impulse buying increases with the size of the bill
Hypothesis 5
: Rate of Impulse buying increases with the number of different product bought.
Hypothesis 6
: There is association between presence of shopping list & impulse buying behavior.
Hypothesis 7
: Tourism and impulse shopping are positively related.
Hypothesis 8
: Lone shoppers will be less likely to purchase on impulse.
Research Methodology :-
The research methodology was divided into two stages which involve two sources
forcollecting the data in order to achieve the objective of project.1.
Collecting data regarding the potential customers from retailers through retailersobservation
in the existing malls and retail outlets (k-star, r-city, inorbit ,raghuleela, bigbazar, d-
mart) within Mumbai city .2.
Collecting the primary data directly with the customer with the help of thequestionnaire
(Refer Annexure-1)
and personal interviews
.
A
hypothetical consumer impulse buying behaviour model (Refer Fig 5)
is
alsotaken into consideration ,which has been mentioned in conclusion and findings part
Page 40
RESEARCH DESIGN
:-
In this project
multi stage sampling
is used because the total population was too largeand due to time constraint it was not
practically possible to make a list of entire population .Atfirst stage I have divided sample
area wise and then further divided it into income status so that Ican get correct and
related information.
Type Of Research :-
The research was of exploratory nature and involved conducting in-depth interviews
ofshopper leaving supermarkets to crystallize and better understand the problem at hand and
a fewfactors that affect it.
Data Collection Method
:-1.
Secondary Data :-
Research papers were studied and online libraries such as JSTOR,EBSCO Host and Palgrave
Mcmillan were visited.
2.
Primary Data :-
We collected information from the subjects by means of a survey.Furthermore the major
technique that we used to approach our subjects was the intercepttechnique i.e. approaching
them without prior notification or appointment. Personalintercept interviews were used to
collect information in a face to face situation. Thesupermarkets malls and retail
outlets covered were: (K-Star, R-City, InOrbit, Raghuleela,Bigbazar , D-Mart)
Measurement Technique :-
A questionnaire was designed to be administered during the personal interview. Carewas
taken to avoid loaded, double barreled, biased questions.
Sampling Plan :-
Population Definition :-
Men and women of age 16 and above who have shopped insuper markets ,malls and
retail outlets in Mumbai in month of October and November
during day time.
Page 41
Sampling Frame :-
Five malls and supermarkets in Mumbai were selected namely The(K-Star, R-City, InOrbit ,
Raghuleela , Bigbazar , D-Mart)
Sample Design :-
Sampling Unit :
(K-Star, R-City, Inorbit , Raghuleela, Bigbazar, D-Mart)
Sampling Size :
100 Potential Customers
Sampling technique :
Multistage Sampling
Sampling area:
Malls And Supermarkets With In Mumbai City
Contact Method
: Personal Contacts.
Sampling Plan :-
The interview was stationed at the malls super market exit to select a shopping partyleaving
the super market after making some purchases. The respondent was qualified bydetermining
whether they were carrying any shopping packages and their willingness
to participate in the research. After introduction the interviewes were administered thequestio
nnaire through a personal interview. The questionnaire was completed and filled by
theinterviewer himself.The interview was terminated by thanking the respondents for
their participation.
Page 42
LIMITATIONS :-
1.
People in our country are not very used to research hence they were not very receptive ordid
not know how to respond to certain questions.2.
As students, the researchers had limited amount of resources (time, money, etc) to spendon
this research.3.
This research has been conducted in a five malls and supermarkets of Mumbai thefindings
cannot be extended to all the malls supermarkets in India . Hence the findingsare only
applicable to Mumbai.4.
This research focuses on the incidence of impulse buying and a few factors affecting itsuch as
gender of the shopper, size of the shopping bill, presence of a shopping list andthe number of
items purchased. This does not suggest that these are the only factors thatinfluence impulse
buying decisions.5.
Some other influencing factors such as in-store stimuli (communication mix,

shelf placement), consumer traits other than gender, situational factors (mood, time,money)an
d normative traits of decision making have not been studied. Hence, the findings of thisstudy
cannot be extended to those areas
Page 43
SECONDARY RESEARCH :-
The secondary research done through various research papers and through online libraries
suchas JSTOR, EBSCO Host and Palgrave Mcmillan gives the following information as
shown in the pie diagram it answers the questions asked to consumers of metro cities who
often go shoppingin malls and supermarkets few of the questions asked are as follows :-
I rarely ever buy impulsively
I always buy if I like it
While moving around the store ,I decide for purchase by looking at the things
While moving around, I often buy being tempted out of need which has suddenlyevolved
Quite often I regret after buying new things

The answers to these questions are presented in form of pie diagram and it shows the
followingstatistics :-
26 % of sample people disagree that they rarely buy impulsively
17%9%8%49%17%
ii
Strongly DisagreeDisagreeCan't SayAgreeStrongly Agree
I rarely ever buy impulsively
Page 44
44% of sample people agree that they buy if they like it43% of sample people agree that
they do purchasing by looking at the things
8%27%21%31%13%
I always buy if I like it.
0%33%24%23%20%
While moving around the store, Idecide for purchasing by looking atthe things.
Page 45
58% sample people believe that while moving aroundthey are tempted out of need
which has suddenly evolved21% of sample people regret after buying new things
0%29%13%52%6%
While moving around, I often buybeing tempted out of need which hassuddenly evolved
21%53%5%17%4%
Page 46
56% of sample people buy things without any intentions to purchase them
5%28%11%38%18%
When I go for shopping I buy thingsthat I had not intended topurchase
.
Page 47
The below is the data that has been collected and compiled from certain research papers
regarding the demographic analysis of the respondents mainly found in metro cities whoshow
impulse in their buying behavior .
Demographic profile of respondents found in secondary research :-
Descriptive profile of respondents (n=100)
1. Gender :-
Fig 1
Demographic data for genders

The above graph inferences that most of the time male genders are the one who goesfor
impulse buying decision.i.e. 88% are male respondents in research papers studied
whilefemale comprises of only 12% of the toatal respondents studied through the research
paperswhich comprises of secondary research .
2.
Age :-
Fig 2
Demographic data for age

050100Below181 8 - 2 5 2 6 - 3 5 3 6 -
5 0 A b o v e 516573331Percentage
Page 48
From the graph above its easily visible that the age group 18-25 are the one who gomaximum
times for impulse buying since this is the age group when they are most active havingsome
power of purchasing too.
3.Occupation :-
Fig. 3. Demographic data considering their occupations
From the graph its clear that most of the impulse buying is being done by studentswhich
compromises of 51% of total 100 respondents 23% is for the services providing people
and 20 % to the business oriented person and at last only 6% comprises of house wife‘s.
A SURVEY OF RICE UNIVERSITY :-

The above is the report of rice university on impulsive buying behavior in relation tothe
(PDB) power i.e money ,distance i.e location of malls or retail out lets ,belief i.e taste
and prefrences
A survey of rice university: americans with high equality are more prone to impulsive buying
About 62% of supermarket sale and 80 % of luxury goods sales are impulsive
They have low PDB(power distance Belief) hence low self control and have degree
ofimpulsive buying nature
Higher the PDB less is impulsive buying
US PDB is 40,Russia 93,China 80 and India 77
Page 49
RESULTS :-
Below are the results of the hypothesis considered in relation various aspects of
buying behavior ,the results are derived on the basis of primary data collected with the help o
fquestionire and personal interviews with the respondents .
Hypothesis 1
:
Gender and pure impulse purchasing are correlated
.Specifically,females are more likely to purchase on impulse. This seems in accordancewith
social stereotypes of men being practical and women liking to shop. According toregression
analysis statistical technique used to find the association between gender and impulse buying
behavior, I found that women have more tendencies to buy on impulse as 78 per cent ofour
female respondents were found to be impulse purchasers where as only 38 per cent of
themale respondents showed impulse buying tendency. This indicates that men plan well
ahead before entering shopping markets than females. They economize on their time and effo
rts andstick to their needs and decisions. Females do not plan extensively before entering and
are moreinclined to be attracted to in-store
stimuli.Male Female Column totalImpulse 19 38 57Planned 32 11 43Row total 51 49 100
Page 50
Kollet and Willet (1967), women purchase a higher percentage of products on anunplanned
basis because they make more purchases. When the number of purchases is heldconstant,
men and women have the same degree of susceptibility to unplanned purchasing.However,
My analysis indicates that in Mumbai malls and supermarket ,the number of
products purchased by respondents has no affect on impulse buying tendency. Thus, the impu
lsive behavior in the research can be attributed to solely to gender. Women are more suscepti
ble toengage in impulsive behavior in supermarkets. This finding is contrary to what was
found in thestudy of Impulse Buying Behavior in Vietman by Mai, Jung, Lantz & Loeb
(2001). They foundthat men exhibited a higher impulse buying tendencybecause women
needed to plan all expenses
carefully so that their families‘ modest
income could be spent ―wisely‖

. I did not see thishappening in Mumbai probably because our respondents mainly
belonged to class havingincome
comfortably above the ―modest‖ level.
Hypothesis 2
:
Age and pure impulse purchasing are correlated

The research shows that young blood i.e the age group of (16-24) is more impulsive
in purchasing and also the Older folks with more disposable income are more likely impulse
purchasers.As the research was open for all the age group the findings are more likely to beco
rrect .
Page 51
Hypothesis 3
:
Wealth and pure impulse purchasing are positively correlated.
In other words,as income goes up, so does likelihood of impulse shopping behavior.This
hypothesis is purely macroeconomic in background, implying that as income goes up sodoes
consumption, be it planned or impulse. Furthermore, impulse buys are not likely to
benecessities in the mall unless they are clothing. In this case, the consumer could visit
discountstores that enjoy larger economies of scale instead
Hypothesis 4:
Rate of Impulse buying increases with the size of the bill

Shopping bill is also a measure of transaction size. The Figure 2 depicts that there is
norelationship between unplanned purchasing and shopping bill. Thus we can confidently
reject thenull hypothesis that impulse buying increases with the size of the
bill.AGE IMPULSIVE NON-IMPULSIVEUnder 16 14 616-24 18 1025-34 09 0935-
44 07 0845-54 07 0855+ 14 11
Page 52
From the data we see that the correlation between impulse purchase and shopping billless
than Rs. 1,000 is 25%. The correlation for bill between Rs. 1,000 and 3,000 is 7%
–
almostno correlation. However for a bill size above Rs. 3,001 the correlation is negative.
This is for
a bill size up to Rs. 6,000. For bill size greater than Rs. 6,000 we can extrapolate from theobs
erved pattern that the correlation would have been more negative.This is line with our
findings relating to the number of products purchased in which wefound no correlation
between the number of products and the impulse buying behavior (detailsgiven above).
Generally we can conclude that people who buy more will have more shopping billand will
be engaging in less impulse buying.
Hypothesis 5:
Rate of Impulse buying increases with the number of different product
The percentage of unplanned purchases has no significant correlation with the numberof
different products bought by shoppers in malls and super markets in Mumbai as can be seen
inthe Figure 3
Our findings explain that as the number of different products a customer intends
to purchase increases, the difference between actual and intended purchase decisions do not v
ary.Even though the greater the number of products purchased, the greater the exposure to in-
storestimuli but the number of products bought on impulse do not increase. Hence, I
conclude, that ininstances where customers shop for a larger number of items they plan well
ahead and there arelittle chances of impulse buying.
Page 53
This can be because as customers plan for larger items they try to economize on theirtime and
effort
–
hence little or no impulse purchases. However, when customers shop for a fewneeded items
or engage in random shopping, they are more inclined to engage in impulse buying.This is
contrary to what was found in previous researches (Kollet & Willet 1967) whichindicated
that as purchased items increase the level of unplanned impulse purchases alsoincreases. We
found no such pattern in supermarkets and malls of Mumbai .
Hypothesis 6:
There is association between presence of shopping list & impulse buying

No significant association is found between the two variables .There exist nocorrelation
between the rate of unplanned purchasing with the presence of shopping list.Weinterpret that
the shopping list contains only basic items and when people enter the super marketthey
engage in impulse buying.Hence the research concludes that the tendency of a consumer to
engage in
impulse buying has no association with the shopping list .Also from the Table 2 we can concl
ude thatmajority of the people do not carry shopping list with them (45%) or carry it only
sometimes(35%). This shows there is natural tendency amongst shoppers not to carry
shopping lists withthem. Thus we can confidently reject the null hypothesis that
there is association between presence of shopping list & impulse buyingK-STAR R-

CITY INORBIT BIGBAZAR D-
MART TOTAL NEVER 10 9 6 12 9 45SOMETIMES 5 8 7 10 5 35ALWAYS 3 5 6 4 2 20T
OTAL 20 20 20 20 20 100
Table 2
SHOPING LIST NO SHOPING LIST TOTALPLANNED 15 25 40IMPULSIVE 13 47 60T
OTAL 28 72 100
Table 3
Page 54
Kollet and Willet (1967) found that a shopping list influence purchases when more than15
products are purchased. In this study, amongst those respondents who did buy more than
15 products only 44% could be categorized as impulse buyers and 42 % of these were carryin
g ashopping list. From this we can conclude no effect as such of shopping list on the rate of
impulse buying even when large number of different products is bought.
Hypothesis 7
:
Tourism and impulse shopping are positively related

.Research done on tourist impulse shopping at airports indicates that tourists are at astate of
mind that
encourages pure impulse buys, embodied in the ‗travel stress curve‘ by
Scholvinck (Crawford et al).Thus we accept the hypothesis that Tourism and impulse
shoppingare positively related
Hypothesis 8
:
Lone shoppers will be less likely to purchase on impulse
.This is logical because the more people in the party, particularly dependents, the morelikely
money will be laid out at any given time. Purchases might be due to the influence ofothers,
even peer pressure.Thus we accept the hypothesis that
Lone shoppers will be less likelyto purchase on impulse.
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Price and discount

Advertising and sales promotion

To understand the reason of, why do people buy impulsively ?

To identify the factor which influences consumer decision making process ?

To classify types of customers buying impulsively,with reference to age, gender, income,etc.

To understand the effects of different offers and discounts on impulse buying

To study who is the decision maker in impulsive purchasing?.

The inherent susceptibility to social influence and b)

The structure of the groupGroup cohesiveness

(Bellenger, Robertson, and Hirschman 1978).

Marginal need for product or brand

Prominent store display

Short product life

Dissatisfaction with goods in stock·

Change in Financial Situation·

Complex buying behavior:

Habitual buying behavior:

Variety- seeking buying behavior:

Attitude is a complex mental state of readiness, organized through experience, creating

Some say that it acts as a stress reliever

Perceive it as the best buy of that time

People are captivated as an audience

Consumers have extra money in their budget

The understanding of impulse purchasing was greatly improved through Stern's

Unplanned, Spontaneous and intense urge to buy the purchaser often

Without much prior knowledge of the product or intension to buy.

Mood of the individual, positive mood triggers impulsive buying

Needs: impulsive buying is more a need than a want

Cognitive/affectiveAffect or mood has been identified as a variable that influences impulse

In-store form display

cited in Prasad,1975).The incidence of impulse buying is increasing mainly because

consumers have acceptedand adapted the methods of buying to certain merchandising

innovations and due to thisinterrelationship of buying to merchandising, impulse buying

will only grow significantly (Stern,1962). We offer the following proposition.

To study theincidence of Impulse purchase decisionswith respect to fivefactors.

How does incidenceimpulse buying varydue to the presenceof a shopping list?

Does increase in thesize of grocery billincrease the incidenceof impulse purchasedecisions?

Does impulse buyingincrease as the numberof products purchaseincrease?

Is the incidence ofimpulse buying higheramong males thanfemales?

To study the incidenceof impulse buying inSupermarkets of.Supermarkets, retailoutlets and

To study whether purchase intentions areinfluenced by factorssuch as the gender ofthe

during day time.

Some other influencing factors such as in-store stimuli (communication mix,

I rarely ever buy impulsively

I always buy if I like it