Professional Documents
Culture Documents
By
Submitted to
Karachi, Pakistan
December 2020
FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
ACKNOWLEDGEMENT
Praise to Allah for the strength to initiate and complete the study. I want to express my
heartfelt gratitude to Dr. Sayed Fayaz Ahmed, Assistant Professor, IoBM. Who is the
supervisor for this study and supported me in a best manner. His support and guidance has
made my study of quality.
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
ABSTRACT
Purpose: For years previous studies has investigated and looked for the clear understanding
of the impulsive buying behavior. Researchers has given a significant time on researching the
factors to increase the volume of sales. This is era, is the era of technology and is the fasts
competitive era. This study finds the influencing factors of the impulse buying. Therefore, the
researcher has taken 3 variables consisting of environmental factors, Situational factor and
Findings: The research findings conclude that out of these factors, environmental and
situational factors play a key role in impacting the level of impulsive buying of customers
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
Contents
Abstract............................................................................................................................................II
List of Tables...................................................................................................................................IV
List of Figures..................................................................................................................................IV
CHAPTER 1: INTRODUCTION.............................................................................................................5
1.1. Background of the Study........................................................................................................5
1.2. Objective of the Study...........................................................................................................6
1.3. Problem statement................................................................................................................7
1.4. Research Question.................................................................................................................7
1.5. Hypothesis.............................................................................................................................7
chapter 2: literature review..............................................................................................................8
chapter 3 : research methodology..................................................................................................13
3.1. Data.....................................................................................................................................13
3.2. Variables..............................................................................................................................13
3.3. Inclusion Criteria..................................................................................................................13
3.4. Sample and Sampling Technique.........................................................................................14
3.5. Statistical Technique............................................................................................................14
Chapter 4 : results and discussions.................................................................................................15
4.1. Descriptive Statistics............................................................................................................15
4.2. Reliability Analysis...............................................................................................................16
4.3. Regression Analysis..............................................................................................................16
4.4. Discussion............................................................................................................................18
Chapter 5 : Conclusion, Limitaitons and recommentdation............................................................20
5.1. Conclusion..........................................................................................................................20
5.2. Limitations...........................................................................................................................20
5.3. Recommendations...............................................................................................................21
References......................................................................................................................................22
Banyte, J., 2008. “Conceptions and methods of marketing within dynamic b usiness
environment”. Inzinerine
Ekonomika-Engineering Economics(1): 7-8.
Banyte, J., 2008. “Conceptions and methods of marketing within dynamic b usiness
environment”. Inzinerine
Ekonomika-Engineering Economics(1): 7-8.
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
Banyte, J., 2008. “Conceptions and methods of marketing within dynamic b usiness
environment”. Inzinerine
Ekonomika-Engineering Economics(1): 7-8.
The most of consumers are being exaggerated by internal environmental factors
in
Impulsive attitude of consumer. Impulse buying of consumers is generally formed by
“the stimulus”
The most of consumers are being exaggerated by internal environmental factors
in
Impulsive attitude of consumer. Impulse buying of consumers is generally formed by
“the stimulusINTR”
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
LIST OF TABLES
LIST OF FIGURES
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
CHAPTER 1: INTRODUCTION
The impulsive buying behavior, a subject that has been focus of study for over number of
years for the researchers (Pandey & Bhartiy, 2019). After number years of study and research the
phenomenon of impulse buying has number of factors that has effect on it. These factors such as
environmental factor has significantly influenced the desirability of the customer for an instant
purchasing behavior. In the presence of these factors leading to impulse buying, Marketers
intends to make the most of it and turning the situation in their favor (Miao et al., 2019).
Environment factor is one the factors that impact the selection of stores or brand or product of
the customer. Detail decoration, theme, choice of colors, setting in short, the ambiance is the
element of attraction and motivation for the customers and convincing them for impulse buying
(Yarahmadi & Karbasivar, 2011). In this study, we studied the factors that has impact on the
level of impulse buying. For the development of theoretical model it starts by find the
independent and dependent variable that has a role of impacting the customer behavior to
increase impulse buying. Among the number of factors impacting impulse buying, as for an IV
for our study, we have chosen store environment and online characteristics. For the mediating
role over the DV situational factors are placed. Whereas impulse buying is the DV in our study.
Customers with high income level and power of purchase tend to incline toward sudden urge of
buying products on desires. The availability of money boost the thirst for spending on products
With the multiplication of online businesses, there is developing proof that online drive
purchasing is a rising marvel, which has been the focal point of specialists from multiple
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
disciplines(Wells et al., 2011). Moreover the website quality from where the customers searches
also greatly impacts the urge of impulsive buying of the buyer (Ibid).
Analysts and Practitioners have been keen on the field of motivation purchasing for as far
back as sixty years. Several researches have been conducted to understand the phenomenon
behind that urge customer feels to instantly fulfil his need for a product(Pradhan, 2016). Also,
there is a contrast among male and female motivation purchasing conduct where female
there are some items that shoppers regularly purchase impulsively, these items include personal
care products, groceries and accessories(Pradhan, 2016). However, a minor segment shows
impulsive purchasing of electronics and kitchenware, likely because these items are high
association items for purchasers and they require additional time, cash and data (Ibid).
Considering all these factors, marketers can capitalize on the experience of impulsive
buying of customers and make them spend more on the brands they want to.
This study will help marketers to understand consumer buying behavior & realise the areas
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
The present-day customers have unlimited choices available to them which have made
the competition really severe among brands. This is the reason that marketers do not want to
miss any effort that can make customers attracted towards their products. Things get more
interesting when it’s about impulsive buying of customers (Pradhan, 2016). With availability of
multiple alternatives and less time and effort given by customer to purchase a product, there must
be some factors that dominate customer’s impulsive buying behavior. Without identifying those
factors no brand can survive in this competitive scenario. Therefore, multiple factors have been
categorized under environmental, situational and online factors to be taken into consideration to
understand how they affect level of impulse buying in customers.(Miao et al., 2019)
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
(Ahmed & Riaz, 2018) urged is their research that any unplanned buying behavior of
the customer is to be known as impulsive buying. Discounts and free products are the main
source of impulse buying. The impulsive buying generally depends upon the purchasing of the
products that arouse the desire the rather than the in advance planning. According to (stern,
1962) most purchases done by the purchasers are unintentional or were not needed (Ünsalan,
2016) adds further that mobile phones, accessories, electronics items, mobile gadgets, clothing
Impulsive buying have four types (Hashmi et al., 2019) A customer buying product without any
intention of purchase and companies advertising their product on periodically to stimulate the
product around the customer mind. These two types are known as pure impulsive buying and
reminder impulsive buying respectively. The study further describes the other two remaining
types as suggestive impulsive buying and planned impulsive buying. The suggestive impulsive
buying is where the customer sees a product and craves for the product for its internal
satisfaction. Whereas, planned impulsive buying directs that the customer has an intentionally
Impulsive buying
Impulsive buying depends upon number of factors. This study has taken one dependent variable
and the 3 Independent variables for the research purpose. To elaborate in detail, the 3
Independent Variables are as follows the environmental factors, the situational factors (Mattila &
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
Wirtz, 2008; Mohan, Sivakumaran, & Sharma, 2013; Park, Iyer, & Smith, 2002) and Online
factors.
Environmental factor
The first factor, Environmental factor consisting of ambience, design of store and shelf spacing.
For the second factor, Situational factor comprises of availability of time and money, mood of
shoppers and discounts. And for the last IV of the study, Online factor includes ease of use,
Design of store
According to (Miao et al., 2019) the store has two displays internal and external. These displays
are a connecting bridge between the customer and the brand. The display of the store
interconnects with the customers or the audience are motivated towards the impulsive buying.
(Chang et al., 2011) Previous studies has shown a positive relationship between the store design
and impulsive buying behavior of the customer (Tendai & Crispen, 2009)& (Merugu & Vaddadi,
2017)Previous studies shows that the products displayed physically on the point of sales
activates the mode of impulsive buying (Muruganantham & Bhakat, 2013) For example the
super market places products such as ice cream, chocolates, snakes and confecneries items.
proper product shelf spacing with result in the positive relationship in attracting more buyers.
According to (Karampatsa et al., 2017). The shelf space of the product has significant
importance when choosing the allocation. These allocation aims to implement the quick decision
making process.
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
In order to improve the sales of the products and making the buyer incline towards impulsive
buying, retailers uses two main streams. Assortment strategies and well-organized allocation of
shelf space. It is obvious that well-organized allocation of discounted, promotional activities and
As per (Wang et al., 2020) among the number of factors that has greatest influence the level of
impulsive buying amount the customers is environmental factors with a highly low pricing
strategy. The researcher recommended to implement promotional campaigns and well organized
allocation of the merchandize in order to fascinate the customers and motivate them to impulsive
buying.
Situational factors
Availability of time and money
Factors which are situational of the outside variables originating from the purchase condition
when purchasers come into make contact with specific image boosts (items or progression)
which create the impromptu purchase. Right after and there customer can realize an abrupt
requirement to buy a specific item that has pulled by individual consideration.(Anitha &
Money availability can be defined as all funds which a person feels to spend on that day. Money
availability is an important factor in the process of impulsive buying (Beatty & Ferrell, 1998). A
customer’s planned shopping pattern can be changed if he/she has more money. It increases the
purchasing power (Foroughi et al., 2012). There is a positive association between impulsive
purchase and money availability of generation Y. (Husnain et al., 2019) stated that credit card
availability has relationship with impulse buying behavior. Further, stated that situation factors
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
(money and credit card available) and demographic factors (income) influence impulse buying
behavior of generation Y. Past studies reported that income has significant impact on impulsive
buying behavior in Pakistan (Awan & Abbas, 2015). Thus, it is considered as more money
availability will have a significant positive relationship with impulsive buying behavior (Husnain
et al., 2019)As previously mentioned some situations can influence a consumer's purchasing
tendencies. Among such factors include time availability. There is a close relationship between
time availability and compulsive shopping. In other words, the more time available to an
individual in buying situations, the greater will be the likelihood of the person to make impulse
The impulsive buying behavior is superior for those who can afford it. The income level
do positive enforcement on impulsive buying behavior. The consumer who wants to buy
products is dependent on his/her income. The consumers with high income level can do more
shopping and more likely to involve into impulsive purchase because consumers with higher
income are less sensitive than consumers with lower income (Kacen et al., 2012)
Consumers attract to price level such as discounted price and free of products 'buy one
get one free'. The credit card are used by consumers according to (Karbasivar & Yarahmadi,
2011) impulsive buying actions will develop the usage of credit cards. According to (Simbolon
et al., 2020) the cheaper prices give positive impact on consumers impulsive buying behavior.
Online factors
Visual appeal
It is the method of organizing object in perfect order for highlighting products
availability. It is also called visual presentations. It aims to. Communicate consumer about the
existence of the products like quality, value and separate identity in consumers.it creates an
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
attraction to the consumers making them faithful to the brand so that consumers can make
According to (Ittaqullah et al., 2020), the survey was conducted which indicated a major
intention. Apparel companies should construct their online website in differential environmental
cues which contributes to the experiential value with their customer. Additionally great design
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
SHELF
AMBIENCE DESIGN
SPACE
SALES AVAILABILITY
PROMOTION OF TIME
STORE
ENVIROMENT
FACTORS
ONLINE
CHARACTERISTICS
AVAILABILITY
MOOD OF
OF MONEY
SHOPPER
AMBIENCE
PERCIEVED VISUAL
EASE OF USE
ENJOYMENT APPEAL
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
3.1. Data
This is a causal research which aims to know effect of three independent variables on one
dependent variable. For this research, we have collected primary data through questionnaire from
93 respondents who belong to different age groups, marital status, genders, employment status
and income groups. The questionnaire was adapted in a way which initially covered the
demographical information of respondents. Then they were asked multiple questions about
3.2. Variables
The dependent variable in this research is level of impulse buying of customer while the
independent variables are categorized into three types of factors including environmental,
situational and online factors. Each category covers multiple variables as mentioned below
Karbasivar, 2011).
2018).
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
This research is aimed to know how the dependent variable is affected by these
independent variables.
This research is based on elements that belong to both genders, different marital statuses,
different age groups starting from 16, and different income groups starting from lower than
Since all the elements of our population are not known and accessible therefore non
probability sampling has been adopted in which we have used convenience sampling technique
Since this research aims to find out cause and effect relationship between variables, we
have applied regression analysis for analyzing collected data. (Miao et al., 2019)
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
The following results and discussions are figured out after analyzing collected data.
Frequenc
Demographics Category Percentage
y
Gender Male 52 20%
Female 41 80%
Age 16-25 75 42.7%
26-35 18 41.8%
36-45 0 10.0%
Above 45 0 5.5%
Marital status Single 89 55%
Married 4 45%
Employment status Employed 43 59.5%
Unemployed 50 40.5%
Monthly income Less than 25000 47 34.5%
25001-50000 22 27.3%
50001-75000 11 15.5%
75001-100000 5 9.1%
Above 100000 8 13.6%
Table 1 Demographic profiles of the respondents
The values of mean, standard deviation, skewness and kurtosis are as follow.
The mean of situational factors is highest among all variables (3.53) and mean of
environmental factors is lowest among all variables (3.42) which indicate that influence of
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
situational factors is most whereas influence of environmental factors is least. Situational factors
has lowest standard deviation (0.65) & online factors have greatest (0.79), which indicate that
respondents’ answers are less deviated in situational factors items and more deviated in online
factors.
All independent variables (environmental factors, situational factors and online factors)
and dependent variable (level of impulse buying) are negatively skewed indicating that the data
Kurtosis of all variables is less than 1 which indicates that the date of all variables have
constructs are reliable since it is found that the Cronbach’s alpha value is either greater or
Variable Correlation
Environmental factors correlation with Impulse Buying 0.49
Situational factors correlation with Impulse Buying 0.42
Online factors correlation with Impulse Buying 0.39
Table 4 Correlation
correlation of online factors with impulsive buying is weakest (0.39) among all variables.
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
Lowe Uppe
Uppe r r
Coefficient Standar Lowe r 95.0 95.0
s d Error t Stat P-value r 95% 95% % %
Intercept 0.60 0.39 1.52 0.13 -0.18 1.38 -0.18 1.38
Environmental
0.34 0.10 3.42 0.00 0.14 0.54 0.14 0.54
Factors
Situational Factors 0.27 0.11 2.41 0.02 0.05 0.50 0.05 0.50
Online Factors 0.07 0.10 0.70 0.49 -0.13 0.27 -0.13 0.27
Table 5 Coefficients
As per the table above of the regression model, following equation is made of chosen variables.
Impulsive buying = 0.60 + 0.34 environmental factors + 0.27 situational factors + 0.07 online factors
Values of coefficients reflect that the slopes of all independent variables are positive
which indicate that all of them have positive relationship with impulsive buying. It means that if
we increase any of the situational, environmental or online factors, there will be an increase in
Regression Statistics
Multiple R 56%
R Square 31%
Adjusted R Square 29%
Standard Error 0.60
Observations 93.00
Table 6 Regression Statistics
Multiple R value from the table which represents multiple regression results, it is 56% which is a
fair positive relationship between variables (Impulsive buying with environmental, situational
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
and online factors). But when we look at R2 which exclude outliers and filters other unimportant
factors, the value drops to 31%. This value means that data doesn’t lie very close to regression
line. This also tells that 29% of variation in impulsive buying is caused by environmental,
situational and online factors. Rest of the constituents of variation are not the part of this
regression analysis.
ANOVA
Df SS MS F Significance F
Regression 3 14.28 4.76 13.28 0
Residual 89 31.90 0.36
Total 92 46.18
Coefficient
s Standard Error t Stat P-value
Intercept 0.60 0.39 1.52 0.13
Environmental Factors 0.34 0.10 3.42 0.00
Situational Factors 0.27 0.11 2.41 0.02
Online Factors 0.07 0.10 0.70 0.49
Table 7 ANNOVA
Referring to the tables above, it is evident that the P-value of environmental and
situational factors is less than alpha value i.e. 0.05 and their t stat values are also greater than 2,
however P-value of online factors is greater than alpha value and its t stat value is also less than
ANOVA
Df SS MS F Significance F
Regression 2 14.10 7.05 19.78 0.00
Residual 90 32.08 0.36
Total 92 46.18
Coefficient
Standard Error t Stat P-value
s
Intercept 0.63 0.39 1.62 0.11
Environmental Factors 0.37 0.09 4.12 0.00
Situational Factors 0.30 0.10 2.92 0.00
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
After eliminating them, the two variables that are environmental and situational factors reject
null hypotheses.
4.4. Discussion
In this literature (Hussain, 2018)accounts technology as key factor of on the impulse buying
behavior of the customer during online buying but researchers data analysis indicate that among the
factors. However, online factors do not have any impact on it. Among the two influencing
factors, this research covers ambience and design of store and shelf spacing in environmental
factors and discounts, availability of money/time and mood of shopper in situational factors.
Through this analysis we can say that to influence customers and to motivate their
impulsive buying, sellers can use the situational and environmental factors in their favor. For
environmental factors, the sellers can focus on areas like ambience and design of store and shelf
spacing techniques. They can improve the feel of store through effective lighting, décor,
fragrance and colors. They can use shelf spacing techniques like keeping the products at
prominent positions on shelves to create impulsion for that product. This is further supported by
(Ahmed, Parmar, & Amin, 1450)that in Pakistan the FMCG's good are very favorable consumer's impulse
buying behavior. are more attract when they see free product and discounts offers by store. For
example in Pakistan Unilever is constantly using social media marketing for their FMCG's products, they
are selling face wash on social media on discounted prices, especially in lock down. Impulsive buying is
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
Sellers can use situational factors too to create urge for their products. They can offer
discounts with prominent signs like ‘Get One Buy One Free’ or ‘50% Off’ to create instant
desire in customers to purchase that products. They can offer extended hours so that customers
can spend more time and buy more through their impulsion. They can treat customers is a way
which delight them and make their mood happy so that customers would be inclined to buy
more.
RECOMMENTDATION
5.1. Conclusion
and online factors on the level of impulsive buying. This gave a new understanding and point of
view to the literature which was focused on online buying impacts (Butkevi et al., 2008). This study
contributes to the research world that among the two influencing factors, ambience and design of
store and shelf spacing in environmental factors and discounts, availability of money/time and
mood of shopper in situational factors has a significant influence on the impulse buying.
and situational factors. However online factors do not play a significant role in impulsive buying
of customers.
Therefore, based on our findings, we are unable to accept the null hypothesis for environmental
and situational factors while fail to reject the null hypothesis for online factors.
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
5.2. Limitations
Although the objective of this research has been met successfully, there are still a few limitations
that were part of the study. The results we derived from our data were based on the respondents
the majority of whom were no older than 35 years, mostly single and have an income bracket of
less than Rs 25000 rupees. Also, these respondents only belonged to the city of Karachi not
entire country. The results may contradict if the same survey is conducted in a different
geographic region. Moreover, the constructs that this study has acknowledged and tested can be
improved by future research for testing in other regions, income group and age segments. As
most of the literature on impulse buying focuses on big shopping malls (Khan et al., 2015;
Another limitation to this study can be the lack of authenticity or biased answers provided
by the respondents due to lack of time or other reasons. The findings of this research are based
on the assumption that the respondents would have thoughtfully given the responses to the
5.3. Recommendations
The results on how the environmental and situational factors affect the level of impulsive
buying of buyers can be used to influence customers in future. Future research can also be
conducted taking other independent variables into consideration that may have greater impact on
the impulsive buying of customers that have not been included in this research either in the same
demographics or different.
These findings can help the marketers to increase impulsive buying behavior of
customers and increase their sales. This research will help them to get a better understanding of
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FACTORS INFLUENCING LEVEL OF IMPULSIVE BUYING
their customers in the real world and focus on the areas through which they can get better results
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