ABSTRACT

Researchers and Practitioners have been interested in the field of impulse buying for the
past sixty years (Clover, 1950; Stern, 1962; Rook, 1987; Peck and Childers, 2006; Chang
et.al, 2011). The purpose of this paper is to provide a detailed account of the impulse
buying behavior by compiling the various research works literature in the field of Retailing
and Consumer Behavior. It gives a broad overview of the impulse buying construct and the
various behavior related aspects. A wide range of journal databases and books were
referred to review the works of various researchers. The content analysis of the various
research works led to the classification of literature into different factors influencing
impulse buying and further development of research framework. The multiple aspects of
the subject are categorized for future research works in the area of impulse buying with the
suggestions. The paper will be useful for marketing practitioners and researchers towards
comprehensive understanding of the consumer‟s impulsiveness.

Keywords: impulse buying, impulsiveness, online impulse, consumer behavior, hedonic

motivation, retailing.
 INDEX
S.No CHAPTER Page No
1 CHAPTER - I 01 – 12
INTRODUCTION
NEED OF THE STUDY
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
2 CHAPTER - II 13 – 21
REVIEW OF LITERATURE
3 CHAPTER - III 22 – 34
INDUSTRY PROFILE
COMPANY PROFILE
4 CHAPTER - IV 35 – 45
DATA ANALYSIS &INTERPRATATION
5 CHAPTER - V 46 – 48
FINDINGS
SUGGESTIONS
CONCLUSION
QUESTIONNAIRE 49 – 52
BIBLIOGRAPHY 53
 CHAPTER – I
INTRODUCTION
INTRODUCTION
India is a growing economy with a real GDP growth rate of 8.5% . The real private
consumption expenditure has grown at an average rate of 8.4 percent per annum during the
last four 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 mushroom growth 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 complex and may stimulate emotional conflict. Also,
impulse buying is prone to occur with diminished regard for 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 in the urban cities of
India. The most prominent ones in Mumbai are K-Star, R-City, InOrbit CityCenter,
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 researchers
have 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 is an important part of buyer behavior. It accounts for as much as 62% of
supermarket sales and 80% of all sales in certain product categories. Though impulsive
purchasing has attracted attention in consumer research. Unfortunately, there is a dearth of
research on group-level determinants.

This research suggests that the presence of other persons in a purchasing situation
is likely to have a normative influence on the decision to make a purchase. The nature of
this influence, however, depends on both perceptions of the normative expectations of the
individuals who exert the influence and the motivation to comply with these expectations.
Peers and family members, are the two primary sources of social influence, often have
different normative expectations.

1
 Thus, it has been evaluated two factors that are likely to affect the motivation to
conform to social norms:

a) The inherent susceptibility to social influence and

b) The structure of the group

Group 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 theory assumes that behavior is a multiplicative function of expectations for what
others consider to be socially desirable and the motivation to comply with these
expectations

Theory of Planned Behavior :-

Theory of Reasoned Action :-

2
Conceptual Framework :-

Cobb and Hoyer (1986) and Kollat and Willet (1967) have defined impulse buying simply
as unplanned purchasing. Rook (1987) gave a narrow and more specific meaning to
impulse buying, which included behavioral elements.The definition of impulse is as
follows “Impulse buying occurs when a consumer experiences a sudden, often powerful
and persistent urge to buy something immediately. The impulse to buy is hedonically
complex and may stimulate 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
to fulfill a specific buying task (Beatty & Ferrell, 1998). The impulse buying behavior
occurs after experiencing 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, 1998), internal states and environmental/external
factors can serve as cues to trigger their impulse 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
buying action undertaken without the problem having been previously recognized or a
buying intention formed prior to entering the store .

Operational Definition :-
Based on the literature review I plan to follow the following definition for the purpose of
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 after
entering the store. The items purchased whose decisions were made after entering the store
are impulse purchases (Bellenger, Robertson, and Hirschman 1978). Pretest questioning is
not used as it forces the shopper to recite formed intentions and commit the shoppers to
their intentions (Pollay 1968). The problems with the post purchase operational definition
are that the incidence of impulse purchases may be understated by the shopper in an effort

3
to appear rational. However, this definition is easier to operationalize because shoppers
will be willing to give interviews once rather than twice (before and after shopping) and it
does not create the bias in the mind of the shoppers to follow the intention that they stated
in the pre-shopping interview.

Factors Influencing Impulse Buying

Impulse buying of the shopper is influenced by number of factors which could be either
related to the shopping environment, shopper‟s personal traits, product itself and the
diverse demographic and socio-cultural aspects

External Stimuli and Store Environment

External factors of impulse buying refer to marketing cues or stimuli that are placed and
controlled by the marketer in an attempt to lure consumers into purchase behavior (Youn
and Faber, 2000). External Stimuli are related to the shopping and the marketing
environment. The shopping environments include the store size, ambience, design and
formats while the marketing environment is the various sales and advertising activities.
Buying impulses can be induced when a consumer encounters a relevant visual stimulus in
the retail environment, or some promotional stimuli (Piron, 1991). Impulse buying is
considered as relevant in today‟s shopping scenario with the innovative sales promotions,
creative messages and appropriate use of technologies in the retail stores .

Consumers can experience an urge to buy impulsively when visually encountering cues
such as promotional incentives (Dholakia, 2000). Xu (2007) stated that store environments
influence the consumers‟ emotional states which may further lead to impulse buying
inside the store.

With the growth of technology such as self service, innovative display of product in
airports has accustomed shoppers to do more impulse buying . Omar, (2001) suggested
that impulsive shopping at the airport is promoted by environmental influences. Exclusive
availability of certain products, clean ambience, spacious formats and anonymity are some
of the reasons that could increase the impulse buying at airport retail shops. Credit cards
and its incentive for extra shopping, co-promotion with particular retailer provides an
opportunity for shoppers to make frequent visits to retail outlets which may result in
increased impulsive purchase.

4
Different External factors
In-store Displays: The most important aspect of successful in-store displays is for retailers
to understand their customers and their habits according to Terrazas (2006). Strategic
displays can then be devised that help to increase sales especially through unplanned
purchases by consumers. One strategy may be to identify the commonality of goods
bought by list-buyers and then attractively display complementary products next to these
common products. Displaying the most popular products purchased by your clients in the
back of the store could be another strategy - this forces the client to walk past and be
confronted by as many other items first. It is also common practice to separate popular
items (strategic display). Bread and milk, for instance, will most likely be displayed at the
2 most opposite ends of the store which will force the consumer pasta host of products
encouraging impulsive buying en route to the other essential product (Terrazas, 2006).
Shopping trolleys designed to accommodate kids require strategic trolley height displays
that will catch the children‟s attention because children play a big role in shopping trends
(Terrazas, 2006).

The In-store shopping Environment as a Determinant of Impulse Buying: The in-store

shopping environment is a very important determinant of impulsive buying. It is
constituted by micro variables which are specific to particular shopping situation and
confined to a specific geographic space. Factors such as in-store background music, store
display, scent, in-store promotions, prices, shop cleanliness, shop density or congestion
and store personnel all make up in-store hopping environment (Zhou and Wong, 2004).

Unexpected Cheaper prices and discounts: One effect of unexpected price discounts is that
of causing a generalized affective effect on consumers (janakiraman et al, 2006) has earlier
argued that negative affect induced by unexpected price hikes might suppress spending by
limiting purchase consideration of other goods. The consumer mental accounting activity
concept can also explain price induced accounting activity concept can also explain price
induced impulse buying according.

Sales people: Consumers tend to enjoy a shopping experience with supportive and friendly
shop assistants. Salespeople can really make the shopping experience fun and enjoyable by
providing extraordinary service. Consumers enjoy shopping more without the presence of
an overbearing salesperson although they do, however, appreciate when a salesperson is
nearby and helpful (Jones, 1999).

5
Shop congestion/crowding/shop density : Crowding is generally perceived as an
unpleasant experience in shopping situations as cited by Michon et al. (2005). Consumers
adjust to higher retail densities by reducing shopping time, deviating from their shopping
plans, buying less to enter express checkout lanes, postponing purchases, relying more on
shopping lists, reducing interpersonal communications and refraining from exploratory
behaviors All these behaviors might militate against consumer impulsive buying.

Internal Stimuli
Internal Stimuli are related to the different personality related factors which characterizes
an individual rather than the shopping environment or stimuli. Internal factors of impulse
buying denote the individual‟s internal cues and characteristics that make him / her engage
in impulse buying

One of the path breaking researches by Rook and Hoch (1985) highlighted that it is people
and not the product, which experience the consuming impulses during a shopping spree.
Weinberg and Gottwald (1982) initially established that impulse buyers exhibited greater
feelings of amusement, delight, enthusiasm, and joy. Chang, (2011) argued that consumers
who had more positive emotional responses to the retail environment were more likely to
make impulsive purchase.

Impulse purchases are more likely to happen when shoppers evaluate the purchase as
appropriate (O‟Guinn and Faber, 1989). Youn and Faber (2000) pointed out that impulse
buying may originate from consumer traits such as impulsiveness and optimum
stimulation level, shopping enjoyment, or lack of self-control. Shen and Khalifa (2012)
observed that cognition of the consumer moderates the relationship among buying impulse
and the actual impulsive behavior.

The Concept of Retail outlets is on high in Punjab and many private players are looking to
cash on this. Punjab is divided into 3 mainland regions called Doaba, Malwa and Majha,
the major cities in each of them includes Jalandhar, Ludhiana and Bhatinda. The other
most developed areas from retail perspective include Patiala, Amritsar and Ferozpur. The
Major malls include Ansal Plaza, Silver arc, MBD neopolis, Westend mall and Flamez.
Recent developments have given Punjab a new name, “The Mall Capital of India”. The
evolution of Malls in Punjab has increased the Impulse purchases in last few years.

6
NEED FOR THE STUDY

As suggested by the previous research, products bought on impulse are mostly cheap and
most of the researchers emphasized on the internal factors. Impulse buying behavior can
be associated with individual self-image and symbolic consumption. No study has been
undertaken to analyze the factors contributing to impulse purchase in organized retail
sector in Ludhiana. Therefore the present study was undertaken focusing on the external
factors like store environment and store displays and also this research tries to point out,
which factors are most significant in inducing impulse purchasing behavior.

7
SCOPE OF THE STUDY

Consumer behavior has been studied by numerous scientists including psychologists,

sociologists, economists, behavior analysts and anthropologists.

These scientists are attempting to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics, and behavioral variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as family, friends, reference
groups, and society in general.

8
OBJECTIVES OF THE STUDY

 To identify the factors which contribute in making impulse purchase in organized

retail sector BIGBAZAR
 To understand the role of organized retail outlets in impulse purchase by customers
in BIGBAZAR
 To gain an understanding of the theories and concepts of Buyer Behavior, to find
the age group, educational back ground, occupation / profession and income and
income level of the respondents.
 To know whether the customer is interested to buy the purchasing Retail Products
in Big Bazaar or not.
 To find respondents reason for purchasing the purchasing Retail Products in Big
Bazaar.

9
RESEARCH METHODOLOGY

DATA COLLECTION:
PRIMARRY METHOD:
Primary data are those, which are collected fresh and for the first time and this happen to
be original in character. In this study primary data was collected by interview schedule
method.

SECONDARY METHOD:
Secondary data are those, which are collected from existing data. Secondary data for this
study include appropriate material from newspaper, Magazines, Broachers, Company
Reports, Standard Text Books, and information from Internet has also been acquired
wherever necessary.

DATA COLLECTION INSTRUMENTS:

The instrument used for this study is an interview schedule. Questions related to
objectives of the study from the major portion of the interview schedule. It mainly
consists of multiple-choice questions so that the respondents can mark one or more of the
several choice of answers. Secondary data has been gathered from many published
sources such as Newspapers, Journals, Magazines, Company Reports, standard textbooks
and information from Internet has also been acquired wherever necessary.

AREA OF RESEARCH:

The project involved a fieldwork of around 1 month 15 days where in the survey was
carried out of around The survey was conducted in different of Hyderabad and
secunderabad such as Koti, bowenpally, Ameerpet, L.B Nagar, Hayath nagar.

METHODOLOGICAL ASSUMPTIONS:

 The primary data has been collected by an interview schedule.

 The sample for the study was selected on a convenience basis
 All primary data collected is true and reflects the actual actions of the Respondents.
 The data collected has been coded, tabulated and analyzed into logical Statement
using simple statistical methods, pie charts, etc.

10
DESCRIPTION OF THE RESEARCH DESIGN:
A research design is a logical and systematic plan prepared for directing a research study it
specifies the methodology and technique to be adopted for achieving the objectives. It
constitutes the blueprint for the collection, measurement and analysis of data.
The main aim of the study is to evaluate the brand image of Heritage. The study is
descriptive in nature. Surveys are best-suited method for descriptive research. So survey
method is used for the study.
The preparation of a research plan for a study aids in establishing direction to the study
and knowing exactly what has to be done and how and when it has to be done at every
stage.

A research plan describes the boundaries of research activities and enables the research to
channel his energies in the right work. With clear research objectives, in view the research
can proceed systematically towards his achievements.

SAMPLING PROCEDURES:

Sampling is a systematic approach for selecting a few elements from an entire collection of
units (population) in order to make some inference about the total population it is a small
specimen or a segment of the whole population representing its general qualities as for as
possible. The study was undertaken by convenience sampling.

SAMPLE SIZE:

The study is conducted on a sample of 100 respondents.

RESEARCH INSTRUMENTS:

An interview schedule was used to conduct the study.

PERIOD OF THE STUDY

The research period 45 days only.

STATISTICAL TOOLS

Tools for data analysis using tables and charts

11
LIMITATIONS OF THE STUDY

 The time period of project is 45 days.

 Though the customers wanted to give information they could not give as it wastes
their business time.
 The accuracy of the answers depends upon the mode of interest of respondents.
 Though the customers wanted to give information they could not, as they felt it
takes away their business time.
 The accuracy of the answers depends upon the mode of interest of respondents.
 The opinions of the sample may or may not depict the exact opinions of the total
population.

12
 CHAPTER – II
REVIEW OF LITERATURE
Literature review
Article - 1
Title : Factors Influencing Impulse Buying Behavior

Authors : Parmar Vishnu, Ahmed Rizwan Raheem

Abstract: Researcher picked this topic because no one has ever explored the factors of
impulsive buying behaviour for FMCGs goods in Larkana and surrounding territories. In
this study ether are two variables, i.e. Dependent variable “consumers‟ impulse buying
behavior”, and Independent variables namely promotional approaches, store environment,
window display, income level and credit card. Impulsive buying behavior is dependent
because it has influence of independent factors. This topic is quantitative because there is
certain population, among them we‟ll distribute survey forms to get their respective
opinions pertaining to our topic. This research concluded that consumer‟s impulse buying
behavior for FMCG‟s (products) is favorable in Pakistan. Consumers are more likely to
buy impulsively when they see free product and price discounts offers by a store. The
income level and visual merchandising has highly and significantly influence on
consumer‟s impulse buying for FMCG‟s (products) in Larkana Pakistan, especially, a well
decorated, with pleasant and calm store environment along with colourful surroundings not
just motivating the consumers to buy unintentionally but also build excitement inside the
consumer‟s minds. Window displays and visual merchandising have an important role-
play for consumer‟s impulse buying. Consumers can be attracted to a store for purchase by
settling up a well-designed window displays and by insertion up a proper placement of
products, packaging and displays of products along with a better presentation of products
and store.

Key Words: Impulse Buying Behavior; Windows display; Independent factors; FMCG
Products; Packaging

13
Article - 2

Title : A Review of Impulse Buying Behavior

Authors : G. Muruganantham & Ravi Shankar Bhakat1

Abstract : Researchers and Practitioners have been interested in the field of impulse buying
for the past sixty years (Clover, 1950; Stern, 1962; Rook, 1987; Peck and Childers, 2006;
Chang et.al, 2011). The purpose of this paper is to provide a detailed account of the
impulse buying behavior by compiling the various research works literature in the field of
Retailing and Consumer Behavior. It gives a broad overview of the impulse buying
construct and the various behavior related aspects. A wide range of journal databases and
books were referred to review the works of various researchers. The content analysis of the
various research works led to the classification of literature into different factors
influencing impulse buying and further development of research framework. The multiple
aspects of the subject are categorized for future research works in the area of impulse
buying with the suggestions. The paper will be useful for marketing practitioners and
researchers towards comprehensive understanding of the consumer‟s impulsiveness.

Keywords: impulse buying, impulsiveness, online impulse, consumer behavior, hedonic

motivation, retailing

Article – 3

Title : Impulse Buying Behavior In India– An Overview

Authors : Geetha. M, Bharadhwaj .S

Abstract : Deliberate non- planning is an integral part of contemporary shopping and

impulse buying is an important hedonic behavior exhibited by consumers. Impulse buying
was looked at from various antecedents, underlying process, characteristics and outcomes.
But, those studies were predominantly done in the western countries. Impulse buying is
not studied elaborately in eastern economies especially in Indian context and this paper
intends giving an account of the prevalence, nature and characteristics of it in India.

Keywords: Impulse buying, shopping type, time, shopping list

14
Article – 4

Title : A Study Of Factors Affecting Impulse Buying Behaviour Of Consumers At Malls

(Delhi)

Authors : Mohd. Rumzi Taushif, Manisha Gupta

ABSTRACT -Today, retailers are increasingly making use of various in-store influencers
for converting browsers to spenders. However, success depends on how the customers
perceive these influencers. The phenomenon of impulse purchasing has been studied in
consumer research as well as for example in psychology and economics since the 1950s. In
brick-and-mortar retailing, impulse purchases have been an important source of revenue
for retailers. This study attempted to investigate the relationship of various factors, with
impulse buying tendency of consumers in the Delhi region. This article empirically
evaluates the perception of the customers towards various in-store stimuli that is, price,
merchandise, promotion, displays and ambience, across stores located in Delhi.

Keywords: Impulse buying, organized retail, demographic, point of purchase

Article – 5
Title : An Empirical Study of Consumer Impulse Buying Behavior in Local Markets

Authors : Muhammad Ali Tirmizi, Kashif-Ur-Rehman, M. Iqbal Saif

Abstract : This paper investigates the relationship between independent variables which
are shopping lifestyle of consumers, fashion involvement of consumers, pre-decision stage
and post-decision stage of consumer purchase behavior with the attitudinal and
behavioural aspects of impulse buying behavior. This study attempts to explore the
association exists between the variables involved, by tapping the responses of 165
respondents from higher income group in the area of Rawalpindi and Islamabad. The
major findings of the study demonstrated an overall weak association of the set of
independent variables with the dependent variable but, the in-depth analysis found that
pre-decision stage of consumer purchase behavior is the only variable that resulted into
strong association with the impulse buying behavior.

Keywords: Shopping lifestyle, fashion involvement, pre-decision stage, post-decision

stage, Impulse buying behavior, Pakistan.

15
Applebaum (1951) was the first to suggest that impulse purchasing may stem from the
consumer's exposure to a stimulus while in the store. The various stimuli inside the shop
directly or indirectly influence the customer. Store atmosphere is influenced by the
attributes such as lighting, layout, presentation of merchandise, fixtures, floor coverings,
colours, sounds, odours, and dress and behavior of sales and service personnel.

Stern (1962) found that products bought on impulse are usually cheap. Shopping lifestyle
is defined as the behavior exhibited by purchaser with regard to the series of personal
responses and opinions about purchase of the products.

Belk (1975) explained that the elements that form a social surrounding include the
presence of others, their characteristics, their apparent roles and any interpersonal
interaction.

Engel and Blackwell (1982) impulse buying is an action undertaken without previously
having been consciously recognized or a buying intention formed prior to entering the
store. Based upon the different description, we conclude that impulse buying involves
hedonic purchase decisions which are made inside a store and excludes the reminder
purchasing activities

Donovan and Rossiter (1982) Their focal interest was on the relationship between
emotions induced by a particular environment and behaviors in this environment, rather
than how the emotions or behaviors are related to the characteristics of the environment.

Rook and Hoch (1985) identified five crucial elements responding to the urge to buy
rather than on solving a in impulse buying: a sudden and spontaneous desire to preexisting
problem or on finding an item to fill a act, a state of psychological disequilibrium, the
onset of predetermined need. Finally, consistent with general psychological conflict and
struggle, a reduction in impulsiveness, impulsive buying is immediate.

Hoch and Loewenstein (1991) observed that it is people and not the product that
experiences the urge to consume on impulse. They suggested that impulse buying may
increase more by loss of self- control.

16
Piron 1991 Defined impulse purchase based on four criteria-Impulse purchases are
unplanned, decided “on the spot”, stem from reaction to a stimulus and involve either a
cognitive reaction, or an emotional reaction, or both.

Rook and Fisher (1995) pointed out the role of individual attitude and its relation to
impulse buying behavior. They call it the “normative influence of impulse buying”, which
means that if consumers view impulse buying as appropriate behavior, it is more likely that
they will buy on impulse. Impulse buying is also found to correlate positively with the
materialism of a consumer

Mick (1996) said that impulse buying behavior can be associated with individual self-
image and symbolic consumption. He said that impulse buying behavior is formed by
individuals‟ experiences.

Bayley and Nancarrow (1998) defined impulse buying as a “sudden, compelling,

hedonically complex buying behavior in which the rapidity of an impulse decision process
precludes thoughtful and deliberate consideration of alternative information and choices.”
Hedonic behavior is marked with pleasure; in contrast to the utilitarian behavior where the
shoppers seek for functional benefits and economic value in the shopping process.

Block and Morwitz (1999) enunciated the definition of impulse purchase as consumer
buying an item with little or no deliberation after the result of a sudden, powerful urge.
Kacen and Lee (2002) stated that impulsive behavior are more arousing and irresistible but
less deliberative when compared to planned purchasing behavior.

Hausman (2000) argued that impulse buying is a hedonic need predominantly motivated
by achievement of higher order needs loosely grouped around Maslow‟s „hierarchy of
needs‟. Efforts to satisfy the higher order needs in this hierarchy lead to different types of
impulse buying behavior.

Babin and Babin (2001) found that in stores consumer‟s purchasing intentions and
spending can largely be influenced by emotions. These emotions may be specific to certain
things for example, the features of the items, customer self-interest, consumer‟s gauge of
evaluating items and the importance they give to their purchasing at a store.

17
Verplanken and Herabadi (2001) found the similar results in his studies and stated that
impulse buying is often associated with individuals who want to escape from negative
psychological perceptions such as low self-esteem, negative feelings, or moods.

Baker et al (2002) found that a store environment that is formed by design, ambience and
social factors is positively related to consumer patronage. In this framework, the “social
factors” of a store environment refer to store employees and other consumers.

Baumeister (2002) The ability to alter one's own responses is one of the most important
features of the human psyche and is substantially responsible for the immense range and
diversity of human behavior as well as for the adaptive success of our species. For
consumer behavior, self-control represents the capacity to resist temptations, especially
those relevant to impulsive purchases and other expenditures that are likely to be regretted
later on. The factors and processes that un- dermine self-control are worth studying insofar
as they may contribute to causing people to spend more money. The effectiveness of self-
control depends on multiple factors, including chronic traits and weaknesses, clarity of
goals (and absence of conflicting standards), careful monitoring of one's behavior, and
depletion of self-regulatory strength caused by prior exertion or decision making

Kacen and Lee (2002) realize there is no research focusing on the eastern culture. So
conduct a research focusing on global scale, using a multi-country sample of above a
thousand consumers from western and eastern culture context in order to acquire the deep
understating of the diversity in different culture background. The authors adopt
sociological theories to separate the consumers from both cultures and regard the western
culture consumers as a social pattern of individualists who think themselves of independent
and autonomous and see the eastern consumers as collectivists who regard themselves as
an integral part of one or more groups, such as family. The founding indicates that culture
affects the relationship between trait buying impulsiveness and impulsive buying behavior
at the cultural grouping and individual level. That is to say, Asians tend to less purchase on
impulse due to trait buying impulsiveness. While Caucasians engage in more impulsive
buying. In addition, the increasing of age reduces the rate of impulsive buying behavior of
Asians, in contrast, nothing can be changes among the Caucasian. Finally, certain
difficulties of cross-culture research, such as the appropriate scale for both cultures, have
been mention.

18
Sinha (2003) stated that Indian customers are orientated towards shopping because of the
entertainment that can be derived out of it. According to him, the majority of the Indian
population can be characterized as young, working class, with higher purchasing power.
They seek more of the emotional value from shopping than the functional value and they
value convenience and variety.

Park and Lennon, (2004) The external stimuli are available across the shopping channels.
There are studies conducted in different shopping environments. Yet most of the previous
researches have focused on impulse-buying behavior in traditional brick and mortar
shopping and television shopping.

Zhou and Wong (2004) identified as factors with apromotional and economic effect.
Conversely the factorsthat failed to support the hypothesis were all in the category of
factors with an atmospheric, entertaining, experiential and hedonic effect

Lou (2005) conducts a research on the influences of shopping with others on impulsive
buying behaviors, which partially similar with the Kacen and Lee‟s research. In the
research, the author regards the family members and peers as the influence factors, and
take two dependant variables into considerations: (1) impulsive urge, (2) purchasing. The
founding suggests that shopping with peers could lead to high rated of impulsive buying,
while shopping with family could decrease the impulse buying rates. But, the research fails
to explain any culture factor‟s influence on impulsive buying.

Peck and Childers (2006) found that touch increases impulse purchasing as the distance
between product and consumer decreases (proximity). Suggested that point-of-purchase
signs, displays, and packaging encouraging product touch may increase impulse
purchasing.

Mattila and Vertz (2008) found that store environmental stimuli positively affect impulse
buying behavior especially when the store environment is perceived as over-stimulating
(excitement and stimulation)

Dawson and Kim (2009) have predicted that with the tremendous growth potential of
online shopping, there is scope for consumers to get involved in online impulse buying.
Credit cards and its incentive for extra shopping give the opportunity for online shoppers to
make frequent visit to online retail shops which may result in increased impulsive buying.

19
Gupta, (2009) suggested that when size of the store is concerned product display and
product prices were the major in-store stimuli in large stores. For small-sized stores,
product price was the main factor that attracted impulse purchases. Retail merchandising
instantly motivates a consumer to buy a product.

Harmanciouglu et. al. (2009) suggested that to promote the impulse buying urge and
behavior of new products, marketing managers may emphasize excitement; fun and variety
in their promotional activities.

Sneath et al. (2009) have argued that impulse buying can also be induced because of
depression of an individual and an attempt to improve the mood The various autistic
stimuli which are self-generated such as consumer's own thoughts and emotions are also
responsible for impulse buying

Sharma et al (2010) indicate that mood, low control of cognitive or spontaneous behavior
in the proximity of an appealing object activate impulse purchasing and such behavior may
induce largely regardless of financial and any negative consequence.

Dave (2010) pointed out that retail stores in Indian settings and found that all of the in-
store measures taken by the retailer affects the impulse stimuli of the customers and
therefore contributes towards conversion, but overall the promotional mix can act as base
for differentiating a store from others and attracting customers to it.

Yu and Bastin (2010) studied the effect of in-store Point of Purchase (POP) posters in
supermarkets and found them to induce impulse purchase behaviors and cost-effective. In-
store stimuli are promotional techniques employed to increase impulse buying of products.
Some examples of these techniques include in-store settings, on-shelf positions, price-off
promotions, sampling, POP displays, coupons, and in-store demonstration.

Hulten & Vanyushyn (2011) The analysis indicates that, while Swedish shoppers make
more impulse purchases, the French consumers appear to be more attentive to special in-
store displays and two-for-the-price-of-one offerings. Contrary to expectations, the impulse
purchases of French and Swedish shoppers are not predicted by gender.

Punj (2011) argued that biological factors, which are proven to be responsible for an
impulsivity personality, should be further investigated by impulse buying researchers. The

20
author also said that personality traits of non-impulsive buyers and impulsive buyers differ
considerably.

The review of literature shows that previous researchers in the field focused on the role
internal factors, satisfaction gained from impulse buying and the effect of in-store point of
purchase posters in retail store but no research has been undertaken to analyze the factors
contributing to impulse purchase in organized retail sector in Ludhiana.

21
 CHAPTER – III
INDUSTRY PROFILE
&
COMPANY PROFILE
 INDUSTRY PROFILE
Introduction
The Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. Total consumption expenditure is
expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It
accounts for over 10 per cent of the country‟s Gross Domestic Product (GDP) and around
8 per cent of the employment. India is the world‟s fifth-largest global destination in the
retail space.

Market Size
India‟s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by
2020, on the back of factors like rising incomes and lifestyle changes by middle class and
increased digital connectivity. Online retail sales are forecasted to grow at the rate of 31
per cent year-on-year to reach US$ 32.70 billion in 2018.

India is expected to become the world‟s fastest growing e-commerce market, driven by
robust investment in the sector and rapid increase in the number of internet users. Various
agencies have high expectations about growth of Indian e-commerce markets.

Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from
US$ 23.8 billion 2017 supported by growing exposure of international brands amongst
Indian youth and higher purchasing power of the upper class in tier 2 and 3 cities,
according to Assocham.

Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows
totalling US$ 1.42 billion during April 2000–June 2018, according to the Department of
Industrial Policies and Promotion (DIPP).

With the rising need for consumer goods in different sectors including consumer
electronics and home appliances, many companies have invested in the Indian retail space
in the past few months.

Beccos, a South Korean designer brand is set to enter the Indian market with an investment
of about Rs 1.00 billion (US$ 14.25 million) and open 50 stores by June 2019.

22
Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in
Wal-Mart India Pvt Ltd.

Government Initiatives
The Government of India has taken various initiatives to improve the retail industry in
India. Some of them are listed below:

The Government of India may change the Foreign Direct Investment (FDI) rules in food
processing, in a bid to permit e-commerce companies and foreign retailers to sell Made in
India consumer products.

Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online
retail of goods and services through the automatic route, thereby providing clarity on the
existing businesses of e-commerce companies operating in India.

Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever increasing
choice of products at the lowest rates. E-commerce is probably creating the biggest
revolution in the retail industry, and this trend would continue in the years to come. India's
e-commerce industry is forecasted to reach US$ 53 billion by 2018. Retailers should
leverage the digital retail channels (e-commerce), which would enable them to spend less
money on real estate while reaching out to more customers in tier-2 and tier-3 cities.

It is projected that by 2021 traditional retail will hold a major share of 75 per cent,
organised retail share will reach 18 per cent and e-commerce retail share will reach 7 per
cent of the total retail market.

23
 COMPANY PROFILE

About The Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are
present in consumer finance, capital, insurance, leisure and entertainment, brand
development, retail real estate development, retail media and logistics.

Future Group understands the soul of Indian consumers. As one of India‟s retail pioneers
with multiple retail formats, we connect a diverse and passionate community of Indian
buyers, sellers and businesses. The collective impact on business is staggering: Around
300 million customers walk into our stores each year and choose products and services
supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from
across India. And this number is set to grow.

Future Group employs 30,000 people directly from every section of our society. We source
our supplies from enterprises across the country, creating fresh employment, impacting
livelihoods, empowering local communities and fostering mutual growth.

We believe in the „Indian dream‟ and have aligned our business practices to our larger
objective of being a premier catalyst in India‟s consumption-led growth story. Working
towards this end, we are ushering positive socio-economic changes in communities to help
the Indian dream fly high and the ‘Sone Ki Chidiya’ soar once again. This approach
remains embedded in our ethos even as we rapidly expand our footprints deeper into India.

Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The
group's corporate credo is, 'Rewrite rules, Retain values'.

About FutureBazaar.com

FutureBazaar.com is the e-commerce arm of the Future Group. FutureBazaar provides an

integrated shopping site where consumers are able to buy products from our flagship stores
including eZone, Pantaloons and Big Bazaar online and get home delivery of products.

24
FutureBazaar delivers across more than 1500 cities and towns in India covering 16,000 pin
codes. FutureBazaar carries genuine products and offers manufacturer's warranty (as
opposed to Seller's warranty) which most other sites offer. FutureBazaar offers products
where the complete supply chain is managed by Future Group entities unlike other sites
that are marketplaces.

By the virtue of being a part of Future Group, FutureBazaar is able to offer a wide range of
genuine products at very competitive prices, confidence of buying from a trusted source
and the convenience of returning in our physical stores.

About Big Bazaar

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where
Big Bazaar scores over other stores is its value for money proposition for the Indian
customers.

At Big Bazaar, you will definitely get the best products at the best prices - that's what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete your shopping experience.

About Pantaloons

Pantaloons are among India's largest chains of fashion stores. Pantaloons Fresh Fashion,
with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in
sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is
followed internationally. This 'fresh fashion' destination allows customers to shop for the
latest in fashion apparel and accessories throughout the year in an attractive and visually
stimulating ambience.

Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also in
smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear,
formalwear, party wear and sportswear for Men, Women and Kids.

25
About eZone

eZone, with the catch phrase 'experience electronics' is an experience led lifestyle format
that brings together the best in national and international consumer electronic and durables
brands in a family-centric environment.

Typically in excess of 12,000 square feet in size, an eZone store truly enables you to
experience electronics, through three dedicated zones - Liberation Zone, Experience Zone
and Home Zone. The Liberation Zone offers personal products like computers, laptops,
handy cams, MP3 players and mobile phones. While entertainment products such as
Plasma / LCD, Flat TV's, Home Theatre systems, DVD players, and Stereo systems are
displayed in the Experience Zone. And in the Home Zone segment, one gets to pick
electronic goods of his or her choice including Refrigerators, Air Conditioners, washing
machines and Microwave ovens among other kitchen related appliances.

eZone is not only about showcasing electronics products and gadgets, but providing you
with a complete shopping experience through touch & feel, allowing you to pick and
choose from an array of best of brands under one roof. eZones are primarily stand alone
concepts, but are also present within the Central malls.

The Big Bazaar is a useful place to find cheap household items, clothes, and food all under
one roof. However, the chaos and crowds often make shopping there a challenge.

Pros

 Low prices.
 Great sales and promotions.
 Wide range of products under the one roof.
 Many stores.

Cons

 Overcrowded.
 Checkout can be extremely slow.
 Complaints of poor customer service and overcharging.
 Quality is variable.

26
Description

 Outlets in around 60 locations across India.

 Sells furniture, electronics, clothes, cookware, cosmetics, household items, food,
gifts, jewelry, and books.
 Also has special Food Bazaar outlets.
 Most stores open from 10 a.m. until 9.30-10 p.m. daily.

Guide Review - Review of Big Bazaar India

There was a time not so long ago that large department stores were a completely foreign
concept in India -- but not anymore. The Big Bazaar is one such department store to have
set up shop across the country. Since its first outlet opened in Kolkata in late 2001, the Big
Bazaar has spread to towns and cities at an alarming rate.

These multi-level shopping meccas stock everything from food to fridges, and cookware to
clothes. However, the Big Bazaar isn't your ordinary department store. It's been especially
designed to appeal to the Indian consumer. You may be thinking, what does that mean? In
short, organized chaos.

With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better than
this!"), the Big Bazaar targets itself directly at the average Indian's love of following the
crowd and scrambling for a good discount.

You won't find neatly ordered aisles at the Big Bazaar. Instead, stores are laid out to
replicate a market environment, with items all thrown in together. Promotions such as
"Sabse Saste Teen Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old,
Take New) result in shoppers flooding the stores, to the point that some stores have
become so overcrowded they've had to close.

If you visit the Big Bazaar in the daytime during the week, it is possible to have a
deceptively pleasant and hassle free shopping experience.

However, don't make the mistake of going there during a sale, on holidays, evenings, or on
Sunday. When I did this, I had to wait for almost an hour just to be served at the checkout.
Forget about getting the all items I wanted, I was happy to get out of there in one piece!

27
I've also found that the full price is all too often charged on sale items, so do check your
receipt to make sure that discounts have been properly recorded.

Milestones

2018

 Future Retail Ltd. acquired Travel News Services India which holds the license of global
retail brand "WH Smith" in India
 Future Supply Chain Solutions entered into an agreement with Jasper Infotech, which also
owns Snapdeal, to buy 100% stake in Vulcan Express Private Limited
 Big Bazaar organised one of the world's first 24hrs of Facebook Live Shopping Carnival to
celebrate the 12th anniversary of Sabse Sasta Din
 Big Bazaar for the first time ever created a mobile game 'Deal Skyfall – Sabse Saste 5 Din'
that has transformed the shopping experience in India
 Future Consumer Ltd. launches 'Prim', a smart home care brand
 fbb launched ' Watch Now Buy Now', India's first ever LIVE online fashion event
 Big Bazaar dropped prices of 1,500 Everyday Items with the 'Har Din Lowest Price'
Promise
 Future Style Labs launched Ancestry, its first contemporary Indian lifestyle brand
2017

 Future Consumer Limited partnered with the Hain Celestial Group Inc. to bring Better-
For-You organic and natural products to the Indian market
 Central and SBI Card launched a unique co-branded credit card designed for the
aspirational urban shopper
 Future Supply Chain Solutions Limited inaugurated its state-of-the-art Integrated
Apparels/General Merchandise Distribution Centre at Burdwan District, West Bengal.
 Future Supply Chain Solutions Limited comes up with its Initial Public Offering
 Future Group launched New Retail 3.0, a digital strategy aimed at making the group Asia's
largest leading integrated consumer company with a trillion dollars in revenue by 2047
2016

 Future Consumer Enterprise Limited (FCEL) partnered with Star Bazaar

 Future Group acquired its first e-commerce home furnishing store Fab Furnish
 Big Bazaar Direct tied-up with Oxigen Services to sell the wide assortment of the
franchisees.
 Little Foodhall launched in Gurgaon

28
  Future Lifestyle Fashions, launched Cover Story, a fast fashion brand led by Future Design
Lab
 Central @ Residency Road, Bangalore was re-designed and launched in High Definition to
provide hassle free shopping for the customers
 Future Group associated with Bajaj Finserv to launch India's first retail EMI card
 fbb created Guinness World record for the world's largest photobook of 18 feet height and
27 feet width
 Future Retail Limited approved a proposed consolidation of the retail and allied businesses
of Heritage Foods Limited. The retail business of Heritage Foods includes the popular
Heritage store chain of 124 stores in the three key southern cities of Hyderabad, Bangalore
and Chennai.
2015

 fbb became style partner of Asia's largest music festival, Sunburn

 Big Bazaar & Ezone made to the Brand Equity's Top Retailer's List
 Tasty Treat, Future Group's Food & FMCG brand launched its first mass media campaign
with a new tagline 'Yeh Phislee Neeyat'
 Future Consumer Enterprise Limited (FCEL), signed an equal joint venture deal with the
Mibelle Group, Europe's third largest FMCG brand company.
 Future Group partnered with India's fastest growing ayurvedic company, Patanjali
Ayurved.
 Future Consumer Enterprise Limited joined hands with Govt of Rajasthan to operate their
public distribution stores Annapurna Bhandar.
 The Miss Universe from Columbia, Paulina Vega launched Jealous 21's limited edition
Miss Universe Collection at Taj Land's End in Mumbai
 First Big Bazaar GEN NXT store designed for smart and easy shopping experience opened
in Infinity Mall, Malad, Mumbai
 Big Bazaar announced an exclusive tie-up with a leading mobile wallet company,
MobiKwik
 The UK based Plymouth City College awarded Future Sharp with a title of 'The Best
International Business Partner'
 Giovani, Indus League's suits & jackets brand signs Fawad Khan as it's brand ambassador
 T24, Future Group's unique telecom service and loyalty program and of India's first unpaid
GSM mobile service completed 5 eventful years
 Future Group's niche plus-size clothing brand, aLL celebrated 10 years journey of serving
customers

29
  The most affordable fashion destination, fbb signed youth style icons Katrina Kaif and
Varun Dhawan as its brand ambassadors
 Bharti Retail joins hands with Future Retail
 Future Supply Chains Solutions Ltd launched its cold storage warehouse facility at
Mehsana, Gujarat
 Future Group forays into M-Commerce with the T24 Mobile App
 Big Bazaar redefines weekends with the launch of a never-seen-before campaign, 'Crazy
Weekend'.
 Future Group launched the new age convenience store format, KB's Conveniently Yours.
2014

 Future Group partnered with the Fortune 500 company and one of the largest online
shopping destination, Amazon
 Future Consumer Enterprises Limited acquired one of the India's oldest supermarket
chains in India with origins dating back to 1905 ,Nilgiris.
 Future Supply Chain acquired New Delhi based processed-foods supply chain company,
Brattle Foods
 Future Group partnered with world's leading customer science company, dunnhumby for
data analytics services
 Future Group announced its strategic tie-up with SAP company hybris, that delivers
OmniCommerce™: state-of-the-art master data management for commerce and unified
commerce processes to its clients.
 India's First Mega Food Park was inaugurated by India's Honourable PM Shri Narendra
Modi at Tumkur Karnataka
 Central completed its 10 glorious years of serving customers
 HomeTown underwent a complete makeover with a new tagline, 'The Art of Better
Living', logo and in-store branding.
 Future Group's premium food destination Foodhall launched in Saket, New Delhi.
 Big Bazaar and Ezone were voted as one of the Top 50 Most Trusted Brands in the country
in the Brand Equity Survey 2013 conducted by Nielson. The survey also revealed that Big
Bazaar is the 4th Most Trusted Service Brand of the country
 fbb ties up with India's largest Beauty Pageant Femina Miss India 2014
 A New Generation Big Bazaar, Big Bazaar Family Centre was launched at Alcove in
Kolkata on January 6, 2014
2013

 Foodhall, the premium lifestyle food destination launched in Pune.

30
  Our fashion brand Central opens its new store in Center Square Mall, Kochi.
 First batch of Future India Fellowship program started with 5 selected fellows across the
country. The fellowship aims to create thought leaders of tomorrow.
 Future Group successfully introduced 'Big Bazaar Direct' an assisted shopping concept
where franchises will sell Big Bazaar products through a catalogue on a 'tablet'.
 Future Group introduced brand new fashion format 'I am In' for trendy youth of the
country.
 Big Bazaar introduced an exciting occasion for shopping 'April Utsav'.
 Future Group officially launched India's largest State of the Art Logistical Distribution
Hub at Nagpur.
 Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit Club.'
 Foodhall, the premium lifestyle food destination launched in New Delhi.
 Future Sharp, the Future Group arm that trains and develops the skills of youth opened its
new skill centre in Nashik.

2012

 On 1st May 2012, the company introduced a new retail initiative – Public Holiday Sale
 Foodhall the premium lifestyle food destination launched its second store in Bengaluru on
4th May 2012
 Big Bazaar redefined the concept of customer service with the launch of the Rajajinagar
Family Centre in Bengaluru with its unique Seva initiative on 24th February 2012
 Future Sharp Skills Ltd. launched its first skill centre in Kolkata with a vision to train and
provide sustainable livelihood to five lakh youth of West Bengal by 2022
 Pantaloons became the first retailer to introduce a reality hunt as it set out on a
countrywide search for their next Fresh Face
 Pantaloons launched its first store in Ludhiana, Visakhapatnam, Bilaspur
 Future Group started Aadhaar Franchise
 Future Supply Chains Express Logistics business became the fastest profitable Express
Business in India
 Keeping pace with the ongoing trends Fashion@ Big Bazaar decided to reposition itself as
fbb
 Pantaloons joined hands with PAYBACK . Being India's largest and one of the strongest
loyalty programs in Europe, PAYBACK offers were made available to all Pantaloons
customers
 Big Bazaar launched its home delivery services in Mumbai

31
2011

 April 2011 – KB's Fairprice celebrates opening its 200 stores in India
 May 2011 – Future Supply Chains becomes ISO certified
2010

 Future Group launches its telecom brand T24 in partnership with Tata Teleservices to
provide additional loyalty benefits to its customers.
 Future Group launches products in key FMCG categories through Sach, a brand co-created
with Sachin Tendulkar.
 Future Group connects over 4000 small and medium Indian manufacturers and
entrepreneurs with consumers.
2009

 Future Group celebrates its first Shopping Festival across all retail formats in key Indian
cities.
 Future Innoversity starts its campuses in Ahmedabad, Bangalore and Kolkata to offer
degree programs through a tie-up with IGNOU.
 Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply
chain and logistics network across the country.
2008

 Future Capital Holdings becomes the second group company to make a successful Initial
Public Offering (IPO) in the Indian capital market.
 Total operational retail space crosses the 10 million square feet mark.
 Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a
presence in 65 rural locations.
 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the
hypermarket format anywhere in the world.
2007

 Pantaloon Retail wins the International Retailer of the Year award at US-based National
Retail Federation convention in New York, and Emerging Retailer of the Year award at the
World Retail Congress held in Barcelona.
 Future Group crosses the $1 billion turnover mark.
 Specialized companies in retail media, logistics, IPR and brand development and retail-led
technology services become operational.
 Online portal Futurebazaar.com becomes India's most popular shopping portal.

32
2006

 Future Capital Holdings, the group's financial arm, is formed to manage over $1.5 billion
in real estate, private equity and retail infrastructure funds.
 Future Group enters into joint venture agreements to launch insurance products with Italian
insurance major Generali.
 Future Group forms joint ventures with US office stationery retailer Staples.
 Home Town, the home building and improvement products retail chain, is launched along
with consumer durables format Ezone and furniture chain Furniture Bazaar.
2005

 Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus
League Clothing and Planet Retail.
 Future Group sets up Kshitij, India's first real estate investment fund, to build a chain of
shopping malls.
2004

 Future Group launches India's first seamless mall, Central, in Bangalore.

2002

 Food Bazaar, the supermarket chain is launched.

2001

 Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata,
Bangalore and Hyderabad.
1997

 Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons
in Kolkata.
1995

 Future Group launches John Miller, a brand for Formal shirts.

1994

 The Pantaloon Shoppe, Future Group's exclusive menswear store in a franchisee format is
launched across the nation. The company starts distribution of branded garments through
multi-brand retail outlets across the nation.
1992

 Initial Public Offer (IPO) of shares by the Company

33
1991

 BARE, an Indian denim brand is launched.

1987

 The company is incorporated under the name of Manz Wear Private Ltd.
 Pantaloons, one of India's first formal trouser brands, is launched.

34
 CHAPTER – IV

DATA ANALYSIS

&

INTERPRETATION
RESULTS AND DISCUSSION

This chapter presents the analysis of the primary data collected from the respondents. The
first part of the chapter satisfies the first objective. This part of the research discusses and
analyses the results of the interviews taken from the Customers. The second part of the
chapter discusses and analyses the results from the information gathered from the retail
Store managers in the Organized Retail sector.

Factors contributing to impulse purchase

For satisfying this objective, a sample size of 100 customers was selected. In the first part
of the questionnaire he respondents were asked various questions regarding there
demographic profile including gender, age, estimated annual income etc. Table 1-5 show
the results of demographic profile of the sample.

4.1.1 Profile

Table 1 : Distribution Of respondents on the basis of gender

Gender Frequency Percentage

Male 62 62
Female 38 38
Total 100 100

Gender

80

60

40

20

0
Male Female

Interpretation
Table 1 shows the distribution of respondents on the basis of gender. Men constitute 62
percent of the total sample size of the survey.

35
Table 2: Distribution Of respondents on the basis of Age

Age Frequency Percentage

20 years or below 15 15
21- 30 years 38 38
31- 40 years 27 27
41 or above 25 25
Total 100 100

Age

40
35
30
25
20
15
10
5
0
20 years or 21- 30 years 31- 40 years 41 or above
below

Interpretation

Table 2 shows the distribution of respondents on the basis of age. The age is segregated in
20 years or below, 21- 30 years, 31- 40 years and 41 or above. It was found that majority
of the respondents (38 percent) belonged to the age group 21-30 years followed by 27
percent in the 31-40 years age group and 25 percent 15 percent in the 41 years or above
and 20 years or below category respectively.

36
Table 3: Distribution Of respondents on the basis of Annual Income

Annual Income Frequency Percentage

Below 2 Lakhs 34 34
2-4 lakhs 31 31
4-6 lakhs 22 22
6 lakhs or above 13 13
Total 100 100

Annual Income

35
30
25
20
15
10
5
0
Below 2 Lakhs 2-4 lakhs 4-6 lakhs 6 lakhs or
above

Interpretation

Table 3 shows the distribution of the respondents on the basis of annual income. It was
found that majority of the respondents (34 percent) belonged to the income group of below
2 lakhs followed by 31 percent in 2-4 lakhs income group and 22 percent and 13 percent in
4-6 lakhs group and 6 lakhs or above group respectively.

37
Table 4: Distribution Of respondents on the basis of Occupation

Occupation Frequency Percentage

Self-employed /Business
19 19
owner
Professional (doctor,
16 16
Lawyer etc.)
Govt. Employee 12 12
Student 40 40
Any Other 13 13
Total 100 100

Occupation

40
35
30
25
20
15
10
5
0

Interpretation

Table 4 shows the distribution of respondents on the basis of education. It was found that
the majority the respondents (40 percent ) belonged to the category of student followed by
19 percent in the self-employed category, 16 percent in the Professional category and
13percent and 12 percent in any other and Government employee category respectively.

38
Table 5: Distribution Of respondents on the basis of Education

Education Frequency Percentage

Graduate 31 31
Post-Graduate 54 54
Doctorate 15 15
Total 100 100

Education

60
50
40
30
20
10
0
Graduate Post-Graduate Doctorate

Interpretation

Table 5 shows the distribution of respondents on the basis of their Education. It was found
that the majority of the respondents (54 percent) belonged to the category of post graduates
followed by 31 percent and 15 percent in graduate and Doctorate categories respectively.

39
4.1.2 Factor analysis

In order to identify the factors affecting impulse purchase behavior 19 statements on 5

point likert scale were set. The responses obtained were put to factor analysis, wherein the
reliability of the scale for farmers using Cronbach Alpha was 0.609 and the result so
obtained was subject to Kaiser- Meyer- Olkin (KMO) measure of sampling adequacy,
which came out to be 0.664. Eigen values for the factors with a variance greater than 1.0
were included showing 61.1831 of variance and first seven variables were retained.
Varimax rotation method was used to extract Factor loadings and seven components/
factors as shown in Table 6 were extracted and labeled

Table 6 : Results of Factor Analysis showing factors affecting Impulse Purchase

Behavior

Factor label Loadings Statements

If the sales person is rude in
0.461
any way, than, I‟ll
leave the store immediately
F-1
(x3)
Navigational aids are required
Sales person‟s 0.596
in a store (x5)
I‟ll ignore the store which I
Overall behavior 0.613
find crowded (x6)
The products at the store should
With the customer 0.606
be easily
and accessible (x7)
Sales person should be fully
Shop density or 0.556
aware of the
congestion product attributes (x9)
I usually think carefully before
0.549
I buy something (x11)
I find it difficult to pass up a
0.708
bargain (x10)
I can become very excited if I
F-2 0.519
see something I
Internal state of would like to buy (x16)
For me, shopping is a stress
Mind of the 0.629
buster (x17)

40
 It is a struggle to leave nice things
customer 0.683 I see in a
shop (x12)
Promotional schemes and
0.636 incentives help induce
F-3 impulse purchase (x1)
Promotional
I am more likely to shop when the
schemes and 0.615 stores are
Discounts offered by the
store offering discounts (x14)
I often make unplanned
F-4 0.675 purchases if store
The overall ambience is good (x4)
Innovative Store characteristics
ambience and 0.699
attract
Store customers (x8)
characteristics
I sometimes feel guilty after
F-5 0.619 having bought
Self-regulation something (x13)
I only buy things that I really need
0.702 (x15)
I make unplanned purchases when
F-6 0.594 I feel stressed
Emotional state (x2)
I often buy things without thinking
F-7 0.514 (x18)
Personality
Traits of the
I am a bit reckless in buying things
customer 0.649 (x19)

According to Table 6 the most significant factor was found out to be “Sales persons overall
behavior with the customer and shop density/congestion” with factors like “If the sales
person is rude in any way, than, I‟ll leave the store immediately, Sales person should be
fully aware of the product attributes and I‟ll ignore the store which I find crowded”.

It was followed by “Internal state of the mind of the consumer” with factors like “I find it
difficult to pass up a bargain, I can become very excited if I see something I would like to
buy, For me, shopping is a stress buster and It is a struggle to leave nice things I see in a
shop”.

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The third most significant factor was “Promotional schemes and Discounts offered by the
store” with factors like “Promotional schemes and incentives help induce impulse
purchase” and “I am more likely to shop when the stores are offering discounts”.

The fourth most significant factor was found out to be “The overall ambience and Store
characteristics” with factors like I often make unplanned purchases if store ambience is
good and Innovative Store characteristics attract customers. It was followed by “Self-
regulation and Emotional state of the mind” with factors like I sometimes feel guilty after
having bought something , I only buy things that I really need and I make unplanned
purchases when I feel stressed.

The least significant factor was “Personality Traits of the customer” with factors like I
often buy things without thinking and I am a bit reckless in buying things.

4.2 Role of organized retail outlets in impulse purchase

This part of the chapter will satisfy the second objective of the research. A sample size of
20 store managers was selected from the organized retail stores of Ludhiana to understand
the role of organized retail outlets in inducing impulse purchase.

4.2.1 The first part of the questionnaire consists of some Statements related various
external factors which could induce impulse purchase, and store managers were directed to
Agree or Disagree with these statements. Responses to these statements were measured
using Five-point Likert scale, varying from Strongly disagree to Strongly agree (Strongly
disagree=1 and Strongly agree=5).

The results were computed using Summated score.

In this method weights are given to each category like( strongly disagree=1 and Strongly
agree =5)

Range = Sample size*1 , Sample size*3 , Sample size*5

In this case

Range = 20*1 , 20*3 , 20*5

So the range is= 20, 60, 100

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 If the score is between 20 and 60 than it lies in strongly disagree and disagree zone and if
the score is lies between 60 and 100 than the statement is in strongly agree and agree zone.
Table 7 shows the results.

Table 7: Summated Score Analysis

Agre
Statements Strongly Disagree Undecided e Strongly Summated
Disagree agree score
Window displays
attract 0 0 0 7 13 93
impulse buyers
Price discounts and 0 5 3 6 6 73
schemes make people
buy
more than their original
Needs
The behavior of sales 0 0 2 11 7 85
person can induce
impulse buying
Sometimes assortment
of 0 3 3 9 5 76
the products can induce
unplanned purchase
Overall Ambience is 0 1 2 6 11 87
Important

The score for each statement is calculated by using the following formula;

Summated score= Score*1+score*2+score*3+score*4+score*5

As discussed above, if the score lies between 60 and 100 hundred than the result is in agree
and strongly agree zone.

In our case all the score of all the statements lies between 60 and 100.

So, the one which is the nearest to the higher limit i.e. 100 is the most widely used
attribute by most of the Store managers. It was found that the Window displays had the
highest score of 93, followed by Store overall ambience and sales persons overall behavior
with scores of 87 and 85 respectively, followed by Assortment of the products and Price
discounts and schemes with scores of 76 and 73 respectively.

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4.2.2 Ranking of the various external factors which induce Impulse purchasing
behaviour

The second part of the questionnaire required the store managers to rank the various
External factors which induce impulse purchase.

The seven factors given were

1. Promotional Incentives
2. Physical Attractiveness of Store
3. Store Characteristics
4. Store Displays
5. Sales Person‟s Overall Behavior
6. Store cleanliness and scent
7. Ambience

Store managers were required to Rank these factors from 1 to 7

Rank 1 being the most important and Rank 7 Being the least important for inducing
impulse purchase

The results for this part of the questionnaire are calculated by Using Mean and Standard
deviation

Table 8: Ranking of the various External factors

External factors inducing

Mean Rank S.D. Rank
impulse Purchase
Promotional Incentives 3.5 2.58 3
Physical Attractiveness of Store 4.55 1.61 5
Store Characteristics 4.85 1.53 6
Store Displays 2.35 1.42 1

Sales Person‟s Overall Behaviour 3.4 1.73 2

Store cleanliness and Scent 4.2 1.88 4

Ambience 5.15 1.81 7

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A customer may be influenced by various External factors like Store displays, Sales
person‟s overall behavior, Promotional incentives or schemes offered by the retail stores.
To study the various External factors which could induce impulse purchase, Mean rank
and Standard deviation were used. Rank 1 depicts the most significant factor and Rank 7
depicts the least significant factor which induces impulse purchase.

Table 8 reveals that Store display is the most significant factor with the mean rank of 2.35
which induce Impulse purchase, followed by Sales person‟s overall behavior with the
mean rank of 3.40, followed by Promotional incentives, Store cleanliness and scent,
Physical attractiveness of the store, Store characteristics and the Store ambience was found
to be the least significant factor with a mean rank of 5.15.

Conclusion

The results from the factor analysis reveal that the most significant factor inducing impulse
purchase behavior is sales person‟s overall behavior with the customer followed by the
internal state of mind of the consumer.

The results from the summated score analysis and Ranking of the external factors revealed
that Window displays, Store displays and sales person overall behavior are the most
important factors which induce impulse buying.

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CHAPTER – V

FINDINGS

CONCLUSION

SUGGESTIONS
FINDINGS

1. The most significant factor which contributes in making impulse purchase is Sales
person‟s overall behavior with the customer.
2. Internal state of mind of the customer came out to be the next most significant
factor.
3. Least significant factors were Self-regulation, Emotional State of the customer,
personality traits of the customer.
4. Store displays and Sales person‟s overall behavior were ranked as the most
important roles of the retail stores.
5. The lowest ranked external factors were Store characteristics and store ambience.

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CONCLUSION

The purpose of the study was to identify most significant factors inducing impulse
purchase. Various statistical tools like factor analysis, summated score, mean and standard
deviation were used to analyse the data obtained. Findings from the research show that the
most significant factors (both internal and external) are Store displays, Sales persons
overall behaviour with the customer, Internal state of mind of the customer and
Promotional incentives and schemes which induce impulse purchase behaviour.

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SUGGESTIONS

In this chapter, a brief summary and conclusions of the study have been presented, so as to
fully understand the implications of the findings.

The increasing amount of spending in today‟s society has created a new life style that has
been integrated and accepted among consumers. Owning items has become an expression
of self-identity for a lot of consumers which has helped to increase shopping as a lifestyle.
). An impulse purchase or impulse buying is an unplanned decision to buy a product or
service, made just before a purchase. One who tends to make such purchases is referred to
as an impulse purchaser or impulse buyer. Research findings suggest that emotions and
feelings play a decisive role in purchasing, triggered by seeing the product or upon
exposure to a well-crafted promotional message. . Researchers have attempted to
determine if people who frequently engage in this behavior have some common
personality traits. Other researchers have suggested that internal states and environmental
cues can serve to trigger the impulse to purchase.

This study attempted to investigate the relationship of various factors, with impulse buying
tendency of consumers in the Organized Retail Sector BIGBAZAR. This article
empirically evaluates the perception of the customers towards various in-store stimuli that
is Merchandise, promotion, displays and ambience, across stores BIGBAZAR .

The study aims at achieving following objectives:

1. To identify the factors which contribute in making impulse purchase in

organized retail sector BIGBAZAR
2. To understand the role of organized retail outlets in impulse purchase by
customers in BIGBAZAR

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QUESTIONNAIRE
 QUESTIONNAIRE

1 : Distribution Of respondents on the basis of gender

Gender Frequency Percentage

Male
Female
Total

2: Distribution Of respondents on the basis of Age

Age Frequency Percentage
20 years or below
21- 30 years
31- 40 years
41 or above
Total

3: Distribution Of respondents on the basis of Annual Income

Annual Income Frequency Percentage

Below 2 Lakhs
2-4 lakhs
4-6 lakhs
6 lakhs or above
Total

4: Distribution Of respondents on the basis of Occupation

Occupation Frequency Percentage

Self-employed /Business
owner
Professional (doctor,
Lawyer etc.)
Govt. Employee
Student
Any Other
Total

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5: Distribution Of respondents on the basis of Education

Education Frequency Percentage

Graduate
Post-Graduate
Doctorate
Total

6 : Results of Factor Analysis showing factors affecting Impulse Purchase Behavior

Factor label Loadings Statements

If the sales person is rude in
0.461
any way, than, I‟ll
leave the store immediately
F-1
(x3)
Navigational aids are required
Sales person‟s 0.596
in a store (x5)
I‟ll ignore the store which I
Overall behavior 0.613
find crowded (x6)
The products at the store should
With the customer 0.606
be easily
and accessible (x7)
Sales person should be fully
Shop density or 0.556
aware of the
congestion product attributes (x9)
I usually think carefully before
0.549
I buy something (x11)
I find it difficult to pass up a
0.708
bargain (x10)
I can become very excited if I
F-2 0.519
see something I
Internal state of would like to buy (x16)
For me, shopping is a stress
Mind of the 0.629
buster (x17)

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 It is a struggle to leave nice things
customer 0.683 I see in a
shop (x12)
Promotional schemes and
0.636 incentives help induce
F-3 impulse purchase (x1)
Promotional
I am more likely to shop when the
schemes and 0.615 stores are
Discounts offered by the
store offering discounts (x14)
I often make unplanned
F-4 0.675 purchases if store
The overall ambience is good (x4)
Innovative Store characteristics
ambience and 0.699
attract
Store customers (x8)
characteristics
I sometimes feel guilty after
F-5 0.619 having bought
Self-regulation something (x13)
I only buy things that I really need
0.702 (x15)
I make unplanned purchases when
F-6 0.594 I feel stressed
Emotional state (x2)
I often buy things without thinking
F-7 0.514 (x18)
Personality
Traits of the
I am a bit reckless in buying things
customer 0.649 (x19)

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 7: Summated Score Analysis

Agre
Statements Strongly Disagree Undecided e Strongly Summated
Disagree agree score
Window displays
attract
impulse buyers
Price discounts and
schemes make people
buy
more than their original
Needs
The behavior of sales
person can induce
impulse buying
Sometimes assortment
of
the products can induce
unplanned purchase
Overall Ambience is
Important

8: Ranking of the various External factors

External factors inducing

Mean Rank S.D. Rank
impulse Purchase
Promotional Incentives
Physical Attractiveness of Store
Store Characteristics
Store Displays

Sales Person‟s Overall Behaviour

Store cleanliness and Scent

Ambience

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BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS

1. Cravens, W. David.and Piercy, F. Nigel. 2009. Strategic Marketing, 9th Edition.

Singapore: McGraw Hill/ Irwin.

2. FandyTjiptono, Gregorius Chandra, danDadi Adriana. 2008. PemasaranStrategik:

MengupasTopikUtamaPemasaranStrategik, Branding Strategy, Customer
Satisfaction, StrategiKompetetifhingga e-Marketing, 1st Edition. Yogyakarta:
Andi.

3. Ferdinand, A.T. 2000.ManajemenPemasaran: SebuahPendekatanStratejik.

Research Paper Series, No. 1.

4. Frosen, Johanna.,Tikkanen, Henrikki., Jaakkola, Matti., andVassinen, Antti. 2013.

Marketing Performance Assessment Systems and The Business Context. European
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WEBSITES

1. www.bigbazaar.com

2. www.futuregroup.com

3. www.scribd.com

4. www.slideshare.com

5. www.techsciresarch.in

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