Batch 2021-23

MBA – International Business

Semester 1
Research Methodology
Impulsive Buying Behaviour
of Consumers

Submitted To: Dr. Krishnamurthy Inumula

Submitted by: Group 3

Group Members PRN

Ankit Aich 21020241009
Shubham Singh 21020241046
Bhawna Yadav 21020241060
Deepanshu Banerjee 21020241090

Submitted on: 25th September 2021

ABSTRACT

Purpose – This paper aims to explore the phenomenon of impulse buying behaviour of the consumers.
The online and offline channels are compared to determine which is perceived as leading to more
impulsive buying.

Design/methodology/approach – Data were obtained using a structured questionnaire from 67

respondents interviewed by sharing a google form. Data were measured through t-tests and the analysis
of variance. 15 research questions were proposed and examined through an online self-administered
survey with 67 valid responses.

Findings – Results show that the consumers are slightly more encouraging in non-impulse buying; the
expenditure is done mainly on clothes& accessories, wherein consumers tend to spend more in their ext
purchase than what they have originally spent in their previous purchase; promotional offers can have a
big impact on impulse buying.

Practical implications – Online companies can trigger the buying impulse to a greater extent than
offline retailers. Managers must carefully select strategies to encourage impulse buying.

INTRODUCTION
The marketing idea of business behaviour focuses on customers, their preferences, wishes, needs, and
expectations, all of which must be satisfied or exceeded in order for the organisation to achieve business
success as measured by revenue, profit, market share, and customer loyalty. Although much has been
discovered and achieved in this area, marketing theory and practise are still far from having explained all
of the elements of consumer behaviour. Marketing as a science, with all of its derived disciplines, has
been striving to investigate the causes, factors, action mechanisms, and consequences of consumer
behaviour since its inception, and although much has been discovered and achieved in this aspect,
marketing theory and practise are still far from having explained all of the elements of consumer
behaviour.

Due to its remarkable variability and various elements exerting a combined impact on it, in more or less
diverse ways depending on the occasion, consumer behaviour is the most complex subject in marketing
theory and practise. Impulsive behaviour, which results in unplanned purchases, is one of the unique
forms of consumer behaviour on the market. For decades, marketing researchers have been attempting
to determine all facets of customers' impulsive purchasing behaviour. During that time, the
research focus shifted from researching the types and categories of products that induce
impulsive buying and defining the companies' marketing offer accordingly to current research
into a wide range of factors influencing and shaping consumers' impulsive buying behaviour and
developing marketing strategies based on those findings.

Most marketing researchers share their opinions on which elements have the greatest impact on
consumers' impulsive purchase behaviour. They all agree, however, that these elements can be
seen in terms of external environment aspects as well as internal factors unique to each customer,
such as personal character, interior conditions, demographic traits, and so on.
This paper tries to explain the phenomena of impulsive behaviour by identifying deciding
elements and describing the essence of urge-driven behaviour so that businesses may better
predict impulsive buyer behaviour and change and define their marketing plans and activities
accordingly.

LITERATURE REVIEW

According to the findings, the cognitive aspect of impulse buying, which is linked to a poor
planning in connection with purchase decisions, is negatively related to subjective wellbeing.
Impulse purchase may be considered an undesirable consumer behaviour because of the link to
negative feelings and possible negative outcomes. (Silvera et al., 2008). Exploring the
occurrence of impulse buying in the fashion industry, The results indicates that offline channels
increases impulsive buying slightly more than online channels; factors that encourage online
impulse buying explain this behaviour more than factors that discourage it; and social networks
can have a major impact on impulse buying. (Aragoncillo & Orús, 2018). In this advanced
information age, individuals are increasingly buying goods over the Internet. As a result,
impulsive buying might be prompted by a number of factors. This research implies two
personality characteristics based on the regulatory focus theory: promotion focus and preventive
focus, which influences consumer's impulsive buying, cognitive dissonance, and satisfaction, and
ultimately leads to consumer loyalty.(Lin et al. 2018). As organised retail becomes more
acceptable in Central India, customer attributes and situational factors influence impulse buying.
The study also gives crucial information regarding Indian customers' impulse buying behaviour
in a still-developing organised retail sector in Central India to retailers, scholars, and researchers.
(Atulkar and Kesari 2018). With the rise of online shopping, the phenomenon of online
impulsive buying have become more significanct. On the other hand, impulse buying behaviour
in an online context is rarely discussed in the relevant literature. (Zhao et al. 2019).

Insight ability, customer information, response and feedback, and enthusiasm all have a direct
and significant favourable influence on impulse purchase attitudes, according to responses from
a poll on impulse buying at six foreign night markets in Taiwan. (Liang, Yu, and Le 2021).
Using the stimulus-organism-response paradigm and dual systems theory, researcher discovered
that source credibility, observational learning, and review quality are important antecedents of
online review perceived usefulness. (Xu, Zhang, and Zhao 2020). In terms of impulse shopping,
there is a noticeable difference between adolescents and adults, which is congruent with current
neuropsychological research on teenagers. When compared to adult buyers, the research also
demonstrates that impulsive buying is a behaviour that teenagers engage in in response to stress
and/or a desire to boost their mood, and that their understanding of impulse shopping is only
tangentially tied to a lack of perceived limits. (Brici, Hodkinson, and Sullivan-Mort 2013). The
researchers intention was to see if and how smartphone use in stores affects buyer behaviour in
terms of planned and unplanned purchases. The mobile phone makes a process of preparation
more popular and similar across multiple store formats, demonstrating how growing
convergence has flattened and standardised pre-shopping out-of-store preparation, reducing the
uniqueness of store formats in the eyes of the consumer. (Bellini and Aiolfi 2020). Despite the
fact that the store environment-impulse purchase nexus is well-established, the impact of
customer motives on the nexus is still understudied. The impact of store atmosphere on
impulsive purchases is found to be moderated by pleasure and shopping satisfaction. The link
between store atmosphere and impulse purchase appears to be weakened by hedonic
purchasing factors. (Hashmi et al., 2020). As a social constructivist, the researcher aims to
comprehend societal tendencies in impulsive purchasing behaviour during the COVID-19
outbreak. Based on the findings of this study, as well as fear and perceived risk theories, a
research framework for customer psychology of impulsive purchasing has been developed.
(Naeem, 2021) Studying the internal and external factors that impact impulsive internet
purchasing purchases. There were no significant differences in the kind of impulsive trigger cues
found outside the home, however there was a link between an individual's IBT and online
impulse-buying behaviour. In this study, the Consumption Impulse Formation Enactment model
is applied to online shopping. (Dawson & Kim, 2009). A cross-cultural questionnaire was
distributed to three countries: Sweden, Turkey, and Vietnam. People from various cultures'
impulse purchasing behaviour is influenced by their culture. In the literature, few researchers
have mentioned the cultural role in impulse buying, but Hofstede's model of four cultural
dimensions and their relationship to impulse buying behaviour is tested for the first time in the
literature across three countries: Sweden, Turkey, and Vietnam, which represent northern
Europe, southern Europe, and Asia, respectively. (Cakanlar & Nguyen, 2019). During this crisis,
people are hoarding and buying on impulse. It has discovered that inventory and response
policies have consequences for policymakers and practitioners, especially in terms of efficient
supply chain management processes and actively reaching out to customers to lessen their fear
and anxiety levels, both of which lead to panic behaviour. (Gupta et al., 2021). In order to
reflect the intrinsic nature of impulsive television buying in the United States as well as the
traditional retail channel, television shopping programmers are studying the impact of
psychological traits and shopping environment aspects on impulse purchasing. (Park & Lennon,
2006). The purpose of this research is to develop and test a model that examines online
impulse buying as a phenomenon induced by system design characteristics, merging the two-
system (reflective vs. impulsive) model with the “stimulus-organism-response” framework. The
findings provide useful guidance on how to create a website that encourages impulsive
purchasing online. (Shen & Khalifa et al., 2012).

Investigating the cognitive processes and motivations of buyers who make spontaneous
purchases of new products.  Two significant conclusions are that new product knowledge and
the demand for excitement and esteem in consumers boost impulsive purchase intent and
activity. (Harmancioglu et al., 2009). Exploring how four store environments (music, light,
employee, and layout) as well as two individual characteristics (shopping enjoyment tendency
(SET) and impulse buying tendency (IBT)) influence impulse buying behaviour by influencing
positive and negative affect, as well as the desire to buy impulsively. As per the research,
personality characteristics (SET and IBT) influenced IB through positive affect and desire. The
link between negative affect and desire was not found to be supported in this study. (Mohan et
al., 2013). There is a favourable correlation between retailer web sales and the amount of
external cues on their websites, according to a correlation study. Less successful online firms
should consider incorporating more external impulse trigger cues (e.g. offers, promotions, buy
ideas, and suggested goods) on their websites to increase the likelihood of impulsive purchases.
The outcomes of the study will benefit consumers because they will be aware of characteristics
that may influence impulse purchases. (Dawson & Kim et al., 2010). Using the Stimulus-
Organism-Response (S-O-R) model, researchers investigated the direct and indirect effects of
apparel shop ambient elements and consumers' positive emotional responses to the
environment on impulsive purchase behaviour. Managing appealing shop design characteristics
can help shoppers feel good and make spontaneous purchases. Displays designed to entice
impulsive purchases should be targeted towards browsers with a limited budget. (Chang et al.,
2014). The findings of this study are based on an in vivo street-intercept methodology,
therefore they may vary according on the data collection method used. The findings suggest
that while making judgments, businesses should consider their customers' psychological
qualities. People with high levels of sociability and shyness, on the other hand, are more
inclined to make impulse purchases in different ways. Younger people are more prone to
exhibit these habits. (Dhaundiyal & Coughlan et al., 2016). In China, researchers are
investigating the effects of website quality on online impulsive purchasing behaviour, as well as
the moderating effects of sales promotions and credit card use. First, website quality influences
OIBB positively; second, sales promotions influence OIBB positively and operate as a powerful
moderator in the relationship between website quality and online impulsive purchasing; and
third, credit card use influences online impulse purchases positively. (Akram et al., 2018).
Analysing consumer shopping behaviour, focusing on the fashion clothes business, in order to
better understand consumer purchase trends in India. The findings are the result of an
empirical study conducted in India's fashion clothes market on a sample group of urban
consumers. The study focuses on the direct and indirect interactions that exist between
constructs. In addition, research can look at moderating variables such demographic traits
(gender, age, money, etc.) and other buying behaviours like brand loyalty, brand love, and
brand attachment to get a clearer picture of the results. (Chauhan et al., 2021). Because
impulse buying is such an important aspect of people's lives and retailers' marketing tactics, it's
a good idea for them to figure out what triggers their consumers' impulsive impulses in the first
place. Customers can find the proper products via targeted merchandising, intelligent store
layout, and other visible merchandising strategies like product displays, packaging, and signage.
It was also discovered that while all four visible merchandising elements have an impact on
impulse purchases, promotional services had the most impact. (Thomas, A. K. et al., 2018). It
provides insight on the connections between customer online impulse buying behaviour and
store beliefs. We created a version based on cognitive emotion theory that showed how
practical convenience (online store merchandise elegance and simplicity of use) and
representational delight (entertainment and internet site discussion style) were related to
online impulsive buying. (Verhagen, T., & van Dolen, W. et al., 2011). It shows that the fashion
lifestyle, sales promotions, and self-image all have a positive and significant impact on
spontaneous purchases and customer satisfaction. Impulse purchases have a positive and
significant impact on customer satisfaction. (Mayasari & Arimbawa, 2019). Customer belief has
been found to have a substantial impact on digital advertising and marketing, as well as the
effectiveness of digital marketing in influencing online customer purchase behaviour. Content
material marketing has also been discovered to be a surprisingly popular digital marketing
strategy for persuading clients to make online shopping decisions. (Ramesh, M., & Vidhya,
2019). Female buyers are becoming more common as a result of their similarity and uninhibited
adoration for expensive things. Customers' longevity and impulse purchasing behaviour are also
inversely associated when compared to more established consumers. This is due to the fact
that young adults do not have the responsibilities of raising kids and do not make a big deal
about their financial decisions. (Kathiravan et al., 2019). In order to convert browsers into
spenders, retailers are increasingly turning to a huge number of in-store influencers.
Customers' perceptions of these influences, however, are crucial to success. (Gupta, M., &
Taushif, Mohd. R.. 2013). The move from a traditional retail environment to electronic
commerce, in which things and services are supplied online and consumers benefit from
purchase impulses led to e-commerce sites, is referred to as the internet revolution. (Karim et
al. 2021)

SAMPLING AND DATA COLLECTION

We circulated a questionnaire, wherein 67 people responded to the survey. We had asked
questions in such a manner so that we come to know about the factors leading to impulsive
buying behavior and to analyze the reasons behind.

Respondent Profiles Item Frequency Percentage

21-25 53 79.1%
Age 26-30 13 19.4%
Male 80 65.7%
Gender Female 44 32.8%

DATA ANALYSIS TOOLS USED

We used Microsoft Excel to analyze the responses we got. Use of Pivot tables and different
graphs and charts came in handy for our final analysis.

RESULTS AND INFERENCES

Figure 1: Gender Ratio Figure 2: Age

According to our research we conclude that of the given factors, the deciding factor which
led consumers to buy impulsively is the “Discount Offers” applied on multiple products.
 Figure 3: Factors

Also, we found out that 71.6% of people, impulsively spend on Clothes and Accessories
which is the highest among other options which means clothing brands can take the
maximum advantage of the impulse buying behaviour by offering decent and attractive
discounts.

Figure 4: Items purchased during impulsive buying

We also found out that when people shop online, they tend to feel as if they are spending a
lesser amount as compared to spending offline which in turn creates the urge to buy
impulsively.
CONCLUSION

Impulse buying has been a challenge

for market researchers due to its
complex nature. Hausman (2000)
mentioned that impulse
buying is a
complicated and
multifaceted
phenomenon which
accounts for a huge
volume of the products sold each and
every year. Consumer researchers
have mainly focused on identifying
the
different factors that induce impulse
buying in various developed
countries (Bayley & Nancarrow,
1998). In the
emerging economies, there is a need
to study the impulse buying due to
recent development in retailing and
huge
cultural differences when compared
to developed economies (Kacen and
Lee, 2002). Dramatic increases in
personal disposable income, life style
and credit availability have made
impulse buying a widespread
phenomenon across the different
retail formats. Creating an attractive
physical shopping environment and
in-store stimuli is important to
enhance the sales through the
unplanned buying (Abratt and
Goodey, 1990).
Current Indian retailing environment
will provide lot of scope for
consumer to become impulsive in
offline as
well as online retail situation for
different product categories.
Keeping in mind the universal nature
of impulse buying, it can be
capitalised by retailers to benefit
their
respective businesses. The proper
combination and synergistic effect of
the various factors influencing
impulse
buying could lead to more sales
turnover hence benefiting the
marketers and retailers. After the
content analysis
of the literature, it was possible to
clarify the Impulse buying concept,
its various dimensions, and its
relationship
with the consumer, and also to
present some research propositions
for the development of the
knowledge in the
field of consumer research. Based
upon the changing trends of the
market in the developing economies
it is
possible to infer that impulse buying
may turn into a growing area of
research and could be seen across the
various forms of retailing.
Impulse buying has been a challenge
for market researchers due to its
complex nature. Hausman (2000)
mentioned that impulse buying is a
complicated and multifaceted
phenomenon which accounts for a
huge
volume of the products sold each and
every year. Consumer researchers
have mainly focused on identifying
the
different factors that induce impulse
buying in various developed
countries (Bayley & Nancarrow,
1998). In the
emerging economies, there is a need
to study the impulse buying due to
recent development in retailing and
huge
cultural differences when compared
to developed economies (Kacen and
Lee, 2002). Dramatic increases in
personal disposable income, life style
and credit availability have made
impulse buying a widespread
phenomenon across the different
retail formats. Creating an attractive
physical shopping environment and
in-store stimuli is important to
enhance the sales through the
unplanned buying (Abratt and
Goodey, 1990).
Current Indian retailing environment
will provide lot of scope for
consumer to become impulsive in
offline as
well as online retail situation for
different product categories.
Keeping in mind the universal nature
of impulse buying, it can be
capitalised by retailers to benefit
their
respective businesses. The proper
combination and synergistic effect of
the various factors influencing
impulse
buying could lead to more sales
turnover hence benefiting the
marketers and retailers. After the
content analysis
of the literature, it was possible to
clarify the Impulse buying concept,
its various dimensions, and its
relationship
with the consumer, and also to
present some research propositions
for the development of the
knowledge in the
field of consumer research. Based
upon the changing trends of the
market in the developing economies
it is
 possible to infer that impulse buying
may turn into a growing area of
research and could be seen across the
various forms of retailing.
The objective of our research was to determine consumer motivations regarding impulse
buying behaviour. In order to meet the objectives of the mini research , questionnaires were
conducted to 300 random samples . Since impulsive buying often occurs during consumer’s
shopping activity.
From the mini research that we conducted, we found that, age , gender and employment status
are significantly correlated to impulsive buying behaviour. Consumer’s impulse buying
behaviour was concluded to be influenced by the ongoing discount offers, mood and availability
of money to a great extent. People also become more impulsive when they see other people
buying products.

LIMITATIONS

With the limited amount of time and resources we could only consider a sample of 145
participants. Such a small sample space was not sufficient to obtain precise results. In this
research we were only able to consider approximately 4-5 diversities which weren’t sufficient
for better estimation. This research was also limited to only a certain type of population i.e.,
student population and to an extent some working professionals. Some other limitations of
this research includes:

 Method
 Data Collection Process.
 Equipment.
 Time.
 Timing of Study.
 Financial Resources
 Future scope of Study
A large number of sample population could be considered for better understanding of the
subject. A sample population should comprise of diverse people. A large number of diversity
factors such a demographic, ethnicity, culture, sextual orientation and capabilities, socio
economic status and marital status etc. should have been considered for our better estimation.
The study could consider the sample population with relevant people who are more into
shopping. With the research data better behavioural of the consumers could be collected if
given more time. Which is a better shopping way- offline or online can be explored through
this research so as to better know the decision making behaviour of the consumers.
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