1

ABSTRACT
In the modern world of today extensive financing is done to market a particular product in order
to attain desired results, however the best of efforts are turn to dust with a simple disruption
caused by impulse in the consumer’s buying behavior. Therefore, it is of key importance to study
impulsive buying. The following report enlightens the phenomenon of impulsive buying in the
consumer buying behavior from the various factors that influence impulsive buying, in this
report namely two factors are discussed, packing of the product and placement of product at the
market place and whether or not they trigger impulse buying. To further elaborate this
phenomenon the research is explained in terms of variables. The dependent variable i.e. impulse
buying and the independent variable i.e. packaging and placement of products at the market
place.

Whether the purchase is physical or a online one, towards the relevant parties the impact is a
significant one. This study will be useful in the FMCG and retail parameters not only to
understand impulsive behavior concept but also as to the use of them to achieve desired results
and ultimately profitability.
 2

INTRODUCTION
For decades after the WW II the paradigm has shifted from a seller-oriented market to a buyer-
oriented market, researchers therefore have focused on the consumer buying behavior. As with
the passage of time another dimension that has grasped attention is the phenomenon that is
impulse buying. As it implies, impulsive buying means to make and unplanned purchase, a
procurement which intentionally was not meant to take place but due to various factors in play a
sudden urge to buy a certain product takes place. There can be a number to factors to this but the
two covered in this report are

- Packaging of the product

- Placement at the market place

A rough estimate suggests that almost half of the mall shoppers made impulsive purchases and
one-third of department store purchases were impulsive in nature. A research conducted by
Lewis&Layser in 2014 concluded that 76% American made their purchase decision in the
market place. This clearly states that a study on impulse buying and how to trigger favorable
impulses is of immense benefit for manufacturers whether online or physical. This signifies that
the independent variables greatly affect the consumer through both psychological and
physiological triggers.

Furthermore, within those independent variables there exists a variety of different aspects that
have individual impact upon the consumer, these include coloring, design, audio & visual
signals, fonts, writing etc. that are associated with the packaging aspects. Whereas in regards to
placement, the shelf space, aisle space, location, height etc. of the product within the market
place or mall affects the percentage chance in procurement of the product. These minute factors
collectively play a vital part in the overall procedure up to the point where they completely
change a purchase or enforce one. A comprehensive study will elaborate these relationships and
the impact they carry on the dependent variable taken.
Problem Statement
The influence of packaging and placement are directly related to impulsive buying. Impulsive
buying results in an unanticipated change in consumer behavior and buying pattern. Thus, the
question remains as to the validity of this fact and to what extend does this hold true. And if this
can be studied can impulse buying be predicted and leveraged as advantage over competitors. By
using previous researches along with conducting a primary research it is expressed.

Purpose of Study
The core purpose of this study is to identify the quite possible changes that can take place in the
consumer buying behavior. This particular paper focuses on the packaging or wrapper of the
product as one factor of influencing impulsive buying and the other factor taken under
consideration is the placement of the product in the market place or the shelf space allotted to the
product. These two factors considerably alter the company predicted result as expected sale can
be hurdled by psychological and physiological factors that exist while at the time or place of
procurement. Based on results contemplated after going through previous researches and primary
research conducted for further investigation, a conclusion that will arise from this exercise would
benefit not only manufacturers but also retailers as well as consumers and help to acquire more
accurate results in terms of sales.

SCOPE
1- To firstly discover if impulsive buying is influenced by packaging and the placement of
the product.
2- To identify which elements of the independent variables are more involved than others.
3- Help in predicting the ever changing behavior of the consumer to gain desirable result or
forecast failures.

This research will help strategists and marketers in providing valuable insights of the real buying
patterns and the factors that force changes right at the procurement decisions. Furthermore, in the
identification of key triggers that psychologically alters the cognition procedure resulting in the
procurement of even the products that have no use towards the consumer.
LIMITATIONS

 The sample size is limited and such cannot be universally applied to the entire
population.
 Time and cost restraints
 The research is conducted only within a particular geographic area thus lacking
diversification.

OBJECTIVES

 To study and comprehend the involvement of placement of the product in the market
place in the phenomenon of impulse buying among consumers.
 To study the impact of packaging of the product on impulse buying among consumers.
 To identify such parameters and see whether they can be used as an advantage to
manipulate purchase.

HYPOTHESIS
Ho: There is no impact of packaging on impulsive buying.
H1: There is significant impact of packaging on impulsive buying.
Ho: There is no impact of placement on impulsive buying.
H2: There is significant impact of placement on impulsive buying.
2. LITERATURE REVIEW

2.1 The Dependent Variable: Impulse Buying

To begin with, impulse buying in its core means to make a purchase that was unplanned yet still
considered and executed, reasons either being psychological or physiological or even tailor made
triggers planted by marketers. Impulsive buying however is of 4 major types

- Pure impulse buying

Where an honest novelty purchase is made which is very different from the typical
buying pattern.

- Reminder impulse buying

Where there is a reminder after seeing a certain item or an entity that reminds a individual
to buy a certain product.

- Suggestion impulse buying

A number of products are simply bought because the consumers feel a need to buy them
after once looking at it, such is known as suggestion impulse buying.

- Planned impulse buying

Purchases made on the basis of special offers and price discounts are a part of planned
impulse buying decisions.

Of these 4 major types the one discussed in this report is pure impulse buying reason being the
influence of the independent variables taken under observation in this report i.e. packaging of the
product and placement of the product in the market place are most closely related to the first
type. Previous work on the subject has ruled a number of details regarding impulse buying
include consumer psychological characteristics, market place environment, loss aversion switch,
the desire to save as well as buying conditions.
2.1.2 Is Impulse buying any good ?

From a producer’s point of view, yes impulse buying carried out by shoppers does do good for
the company as it reflects success of the company’s sales as well as their marketing efforts.
According to Russell Huebsch impulse buying reaps up to 70 percent profit rather than regular
purchases.

However the same cannot be said for the consumers, previous studies have shown rather
negative results and disadvantages of impulse buying to consumers. Amongst the most common
finding were.
  People spend more than they planned.
 Unsatisfactory post purchase evaluation.
 More unnecessary items than necessary ones.

2.1.3 Emotions associated with impulse buying

Significant work has been conducted with regards to the emotions associated with impulse
buying, some researches explain emotions as causes while others claim them to be effects.
Motivation purchasing is an across the board subject piece of the buyer way of life. Thus, this
specific conduct has gotten a considerable measure of enthusiasm for the field of buyer
investigate and many showcasing rehearses have put a ton of emphasis on this wonder (Rook
1987). Be that as it may, for reasons unknown motivation purchasing has remained fairly
enigma. Generally little is thought about the diverse factors that decide the inner instrument for
driving customers into this conduct (Herabadi 2003). The explanation for this relative little size
of research in the field of drive purchasing is incompletely caused by the challenges experienced
amid these investigations. Also, past research has not completely centered around the entire
comprehension of prior discoveries on imprudent obtaining (e.g. Beatty and Ferrel 1998). diverse
examinations express that buyer conduct includes a noteworthy piece of passionate components.
As a matter of fact an agreement is shaped that feelings are enter in buyer conduct as late
improvements in explore show that feeling no doubt assume a urgent part in the basic leadership
procedure of utilization conduct. Consequently, it must be perceived that individuals take after
their reasonable considering, as well as they are affected by passionate worries also (Batra 1986).
Molding a customer's will to go looking for instance or forming a buyer's inclination for a
specific brand or item includes the focal part of feelings. Fundamentally, utilization conduct -
from in-store conduct to earlier and post shopping conduct - are interlinked with the feelings a
buyer encounters (Herabadi, 2003).
 2.2 Independent Variable 1: Packaging of the product

Packaging is the technology of encasing or securing items for dispersion, stockpiling, offer, and
utilize. Packaging likewise alludes to the way toward planning, assessing, and creating packages.
Packaging can be portrayed as a planned arrangement of getting ready merchandise for transport,
warehousing, co-ordinations, deal, and end utilize. Packaging contains, ensures, jellies,
transports, illuminates, and sells. In numerous nations it is completely incorporated into
government, business, institutional, mechanical, and individual utilizes.

2.2.1 TYPES OF PACKAGES

There are 4 main types of packages depending on the type of uses:

- Primary packaging or sales packaging

The container that directly holds the item is a vital bundle. This is for the end-client or the
purchaser. For instance a little container or aluminum can for delicate and fizzy beverages.

- Secondary packaging or grouped packaging

Any external wrappings that assist to store, transport, educate, show and ensure the item are
auxiliary bundling. It serves just as a way to recharge the racks at the POS; For instance, the
plastic bundling around 6 containers of delicate or fizzy drink.

- Tertiary packaging or transport packaging

This is any bundling that is considered to encourage the sheltered taking care of and transport of
various sellable units or assembled bundling, keeping in mind the end goal to counteract physical
harm because of wrong taking care of or transport. For instance, wooden cartons.
 - Service packaging

This is any packaging that is considered to encourage the sheltered taking care of and transport
of various sellable units or assembled bundling, keeping in mind the end goal to counteract
physical harm because of wrong taking care of or transport. For instance, wooden cartons.

2.2.2 THE ELEMENTS OF PACKAGING

To impact those drive purchasing conduct technique of the different business sector section those
bundling components that hails under assume would about principally 2 types’ the visual
components and the informational components. Visual components incorporate measurements
for example, such that color, size, state What's more pictures set looking into bundles which
would persuade on the enthusiastic measurement of choice making. Informational components
incorporate data furthermore innovation utilized within bundling which primarily influences the
cognitive angle for choice making.

Product
Packaging

Font Style Impulse Buying

 PACKAGING COLOR
The color is used it draw attention and psychologically it evokes response. Taking it to the next
level the companies use association between emotion and color. Color of the packaging is
important and the more the color is attractive the more consumer will like it.

 FONT STYLE

Font is a key element of packaging which attract the customer attention. Companies who use best
font style have successful delivery of the message. Marketers therefore use distinct fonts and
style to mention the name and other information.

 PRINTED INFORMATION

Printed on the packaging is the information related to the product this includes quality, price,
description, ingredients etc. which help to identify the brand. The information on the packaging
delivers all the necessary information that relates to and is required by the market segment.

 THE DESIGN OF WRAPPER

As discussed earlier design is one of the most important elements as all the other elements
depend on it. Companies use iconic logos and assets that the market segment trust and recognize
the brand with.

 INNOVATION

Constant innovation in the packaging design also increase the value of the product like easy
open, easy store, recyclable, child proof, breakability etc. in the consumer mind. The Companies
now have taken this to another level and have added different messages or song titles that evoke
emotions and feelings. This constant innovation is a demand of their youth segment.
2.3 Independent Variable 1: Placement of the product
From the very basics, placement of the product in this report refers to the location of the product
in the marketplace or where the product is physically present so that it can be reached by the
customer. This includes the shelf space allotted, height, depth, forwardness or backwardness,
aisle display etc. The placement of the product also plays a significant role in triggering
impulsive purchases. To explain that this is a science and not just random filling of shelves
marketers use planograms. A planogram is a diagram that depicts the layout of the products of
the entire store in an attempt to maximize their sales.

Item arrangement is basic to the fruitful of any retail industry, particularly the quick moving
customer merchandise (FMCGs) industry. Item arrangement has the ability to impact the
purchasing selections of clients and there is clear logical proof behind this instrument. The area
of an item in a store can be the contrast between offering 5 units and offering a 1000 units.

There are various diverse components that go into choosing item position, for example, the time
of clients, the area of lighting, the behavioral examples of clients, organizations advancing their
items, the sort of successes, the span of the store, and other significant variables. Item situation
turns out to be considerably larger when the client needs to connect for the item. The way items
are retired, their rack facings, influences shopper buying conduct. In light of how effective an
item is, can be, or is advanced, a comfort store chief will choose the area of placement.\

2.3.1 The significance of planograms

The planogram of an item is critical to everything. The meaning of a planogram is a "model or a
chart that demonstrates the arrangement of retail items on racks to amplify their deals." Every
time you go into a comfort store, you are essentially taking a gander at a planogram.
Planogramming has various diverse properties, yet the essential thought process is to amplify
deals and impact client purchasing decisions.

The components that impact planogramming incorporate the span of the rack, the width of the
passageway, the stature of the store, the nature of lighting, and different elements that the layman
would discover unimportant. The achievement of planogramming relies on getting the points of
interest right and affecting the eventual purchaser in an exceptionally inconspicuous way to
influence him or her to spend that additional $50. Planograms are specifically identified with the
achievement of a store, and it is little ponder that organizations pay several dollars to guarantee
that their items are retired fittingly in retail spaces.

 Eye level confronting items normally offer better

In a store, how frequently do you have to twist down to your lower leg or midriff level to get an
item you need? You may be astonished to discover that it doesn't occur frequently, particularly in
expansive departmental stores. Different examinations have demonstrated to us that by and large
individuals are much more inclined to buy a more prominent level of items at eye level as
opposed to at a larger amount, or midsection level, or lower leg level.

A typical expression in the retail business is "eye level is purchase level." Products at eye level
are actually more prone to get your attention, furnishing such items with more perceivability than
items at midriff level or lower leg level. It isn't unprecedented to discover new items or the
store's own particular items being put away at eye level. Accommodation stores and markets
commonly charge premiums for makers trying to advance their items at the eye level.
  Setting items toward the start or end

A great deal of accommodation stores make premium offers of items that are set in a comfortable
passage of a store, simply close to the area of the trolleys. The see to start with, purchase first
procedure is a period demonstrated methodology that quickly influencers out of this world inside
the store. You can put your most current items at these closures to guarantee productivity. For
your best items, it may not be a shrewd plan to put them at these key areas as they are probably
going to offer paying little respect to area.

Basic items or effective items will probably be put close to the end because of a couple of
straightforward reasons. You will probably purchase items, for example, eggs, bread, organic
products and so on so these items don't require a prime area. Rather, they can be put at the
furthest end of a store to awesome impact. This is on account of when you have to walk such a
great amount to get these items, your consideration is perpetually attracted to the items you are
cruising by, items that are not all that fundamental in nature.

This is a standout amongst the most famous and effective approaches to unpretentiously impact
purchasing designs. Keep in mind that one time when you went to the store to buy a few eggs,
yet returned with a variety of items you had no expectation of purchasing? You can accuse those
wicked retail supervisors!

 The quantity of facings of an item

The quantity of facings of an item has an amazingly high effect on its levels of offers. The higher
the facings, the more noticeable a given item is, and higher perceivability quite often adds to
higher deals. The area of the item in a passageway is additionally significantly essential. Items
don't generally should be set toward the start of a walkway to be fruitful and the measure of your
store assumes a major part in deciding the quantity of facings numerous diverse items can have.
  Outlining a decent planogram is basic for progress

Building up a planogram sounds simple on paper, however it is once in a while so. Do you put
integral products or substitute merchandise together? Do you likewise valued items or
contrastingly evaluated items together? Do you blend high quality and low quality items? Do you
blend well known and disagreeable items? Grocery stores have been endeavoring to create
consummate calculations to tackle these issues for a considerable length of time.

Chapter 3. Research Methodology

3.1 Theoretical Framework

Theoretical frame-work focuses on the relationship between the dependent and independent
variables. The distinction between dependent and independent variables is as important in a
comparative study as in a regression analysis. Dependent variable in case of a comparative study
is the one which we aim to predict and independent variables here the ones who are used to
predict the dependent variable.

Product
Packaging

Impulse Buying
Product
Placement

3.1.1 Research design

The study made to know that product packaging and placement effects impulsive buying which
ultimately has effects the customer buying decisions. Research design adopted for the study is
descriptive in approach. It comprises of questionnaire related to the research topic.

3.1.2 Descriptive research

Descriptive research is solely about defining people who take part in the study. Descriptive
research takes the form of closed ended questions, which limits its ability to provide unique
insights. Method implied to collect primary mainly includes 100 close-ended structured
questionnaires.

3.1.3 Exploratory research

Exploratory research means secondary data from E-journals, articles that gives an idea of a topic
and makes the ground of the picture or primary research which can be first determine the sample
and sampling technique because a large number of people may give bias results due to non–
serious attitude so concluding first can be necessary and a part of exploratory research.

3.2.1 Data collection methods

 Primary method

Data here is collected from survey which is done through questionnaires.

 Secondary method

Data here is collected from previous researches and literature review. Previous researches
include different articles, e-journals and different websites.

3.3.1 Sampling Techniques

 Sample
The sample size taken for the research is 100.sampling technique used in the sampling process
was non-probability sampling. Customers of the selected places are selected using convenient
sampling as I found it most suitable to go. This sampling technique is the most feasible in terms
of time and money. The questionnaires were directly distributed to the members as a study test.
The questionnaires comprised of two real parts, the first parts was intended to gather
demographic information (email address, sex , age ) and the second part contains 13 questions to
measure the study variables

 Scaling

Ranking scaling and Likert scaling is done for research surveys (Questionnaires) as I found it
most easy to analysis the result.

1 Strongly disagree

2 Disagree

3 Neutral

4 Agree

5 Strongly agree
Chapter 4: Data analysis and interpretation

Age Analysis:

Questionnaire was filled by different age group from which age 15 to 25 were mostly responding
to the questionnaire.
Occupation
Material status
Packaging influences decision

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid frequency of neutral is high.

Well packaged product

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid frequency of neutral is high.

Convenience packaging purchase decision

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid frequency of agree is high.

Product packaging reuse

This is a question of independent variable i.e. product packaging in which neutral and agree
responses were mostly observed.

The valid frequency of neutral and agree is equal.

Prefer buy easily store

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid frequency of agree is high.

Prefer items want entrance

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid frequency of agree is high.

Buy items way out store

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid frequency of agree is high.

Product changes buying decision

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid frequency of agree is high.

Shopping changes mood

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid percent of neutral is high.

Buy things spontaneously

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid percent of neutral is high.

Feel sense of excitement impulse purchase

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid percent of agree is high.

Often buy more plan buy

This is a question of independent variable i.e. product packaging in which agree responses were
mostly responding to the questionnaire.

The valid percent of agree is high.

Satisfied post purchase unplanned purchases

This is a question of independent variable i.e. product packaging in which neutral responses were
mostly responding to the questionnaire.

The valid percent of agree is high.

Regression test

Regression sum of square = 50.330

2
Residual sum of square = SSE = 30.000 and
Se = 1.071

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression
50.330 7 5.300 18.073 .001b

Residual 30.000 6 1.071    

Total 80.330 13      

a. Dependent Variable: prefer buy easily store

b. Predictors: (Constant), prefer items want entrance, product packaging reuse, packaging
influences decision, buy items way out store, well package product, convenience
packaging purchase decision

Here the significance value of 0.001< 0.05 which means that the Ho of ANOVA is significant
means that the Ho is rejected.
 Model Summary
Adjusted
R R
Model R Square Square Std. Error of the Estimate
1
0.759 .603 .533 0.503

a. Predictors: (Constant), prefer items want entrance, product packaging reuse, packaging
influences decision, buy items way out store, well package product, convenience packaging
purchase decision
b. Dependent Variable: prefer buy easily store

 R = 0.759 implies that the dependent and independent variables having strong and
direct relation with each other.
 R-square = 0.603 this means 60.3% variation in dependent variable is explained by the
predictors (independent variable) of the model.
 1-R Square = 0.397 or 39.7 %is the unexplained variation in dependent variables due to
all
 ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression
50.330 7 5.300 18.073 .001b

Residual 30.000 6 1.071    

Total 80.330 13      

a. Dependent Variable: prefer buy easily store

b. Predictors: (Constant), prefer items want entrance, product packaging reuse, packaging influences
decision, buy items way out store, well package product, convenience packaging purchase decision

The value of F-statistic is 18.073 which is very high and the p-value (or the sig value) is
0.001 which is less than 0.05 (level of significance) this implies that the test of ANOVA
is significant and the model is valid from the given predictors.

Correlations

well
Prefer buy package
  easily store product
Prefer buy easily store Pearson
Correlation 1 .162

Sig. (2-
tailed)   .012
N 100 100
Well package product Pearson
Correlation .012 1

Sig. (2-
tailed) .108  
N 100 100
 Coefficients

Standardize
Unstandardize d 95.0% Confidence
d Coefficients Coefficients Interval for B
Std. Lower Upper
Model B Error Beta t Sig. Bound Bound
1 (Constant)
1.768 .572   3.092 .003 .633 2.903

packaging
influences .436 .075 .404 5.706 .001 .053 .476
decision
well package
product .210 .082 .213 2.220 .012 .272 .294

Convenience
packaging
purchase .210 .086 .213 2.120 .021 .284 .264
decision

product
packaging .436 .075 .015 .153 .001 .170 .198
reuse
Buy items way
out store 1.768 .572 .238 2.225 .003 .023 .406

Prefer items
want entrance .210 .082 .404 5.606 .002 .286 .397

a. Dependent Variable: prefer buy easily store

1. t-values are calculated by taking the ratio between β and the standard error. (e.g.
1.768/.572 = 3.092)
2. as far as standard error is increases the t-value is decreases and ast-value
decreases the significant value (p-value) will increases and if p-value become
more than the level of significance which is usually 0.05 than the predictor
become insignificant or less important for the model
3. Here the significance value (the p-value) is less than 0.001, 0.012, 0.021, 0.001, .
003and .002 both are less than 0.05 which means that the constant term as well as
the coefficient are significant for model.
4. Standardized Coefficients of Beta: it can be calculated by taking standardized
values of all the predictors and then run the test of regression analysis. In this
context, what ever be the value of β be calculated that will be the Standardized
Coefficients of Beta.
5. If there are more than one predictors, Standardized Coefficients of Beta will rank
the importance of the predictors. The bigger value will be more important
predictor as compare to the one which has the smaller value.
6. It shows that 95% confidence Interval which fall between .633 and 2.903It means
researcher is 95% confident that minimum value for 1.768. may be .471 and
maximum may be 1.501
7. As in this model which is simple linear regression model where only one
predictor therefore the explanation of tolerance and VIF cannot be explain well.
It will discuss when we discuss multiple regression model
Conclusion

The aim of the overall exercise basically was to gauge whether product packaging and placement
of products in the marketplace influences the phenomenon of impulsive buying or not. A detailed
review of previous researches as well as the fresh primary survey conducted for this particular
report suggests that there is a positive impact of the independent variables on the dependent
variable. Even though considered a natural and a sub-conscious outcome, impulse buying
nevertheless to a great extent is a marketer created response and the following result will be
useful to the marketing strategists to gain greater and more precise results from their efforts.