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CHAPTER 1

INTRODUCTION

Rationale

Everyone behaves impulsively in making a decision, activity, and even in behavioral

communication. In fact, it is very common in making purchases in which customers act rashly

without considering the repercussions and planning beyond that very moment. One of the key

areas of consumer behavior has always been believed to be impulse buying. When a customer

sees a product in the store and buys it quickly without thinking because they feel compelled to

have it is known as impulse buying.

Consumer behavior refers to the activities directly involved in obtaining products /services, so it

includes the decision-making processes that precede and succeed these actions. Thus, it appears

that the advertising message can cause a certain psychological influence that motivates

individuals to desire and, consequently, buy a certain product/service (Wertenbroch et al., 2020).

In psychopathology, impulsivity is defined in three different ways; fast reaction without thinking

and conscious judgment, acting without enough thinking, and a tendency to act with less

thinking compared to the others who have similar levels of knowledge and ability.

In the study of Kumar (2019), results revealed that consumer behavior can be significantly

influenced by a number of factors including age, sex, income, education, and mobility. Age is
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considered to be one of the key demographic factors that influence customer purchasing

behavior. People's lifestyles change as they become older, and this has an impact on their

requirements and personal values. As claimed by Stayman and Deshpande, situational factors

such as social surroundings and type of product influence the relationship between ethnicity and

consumer behavior.Such behavior is a function of ethnicity, social surroundings, and type of

product. People in collectivistic cultures tend to be less engaged in impulse buying than people in

individualistic culture. An individual’s income also determines to a very great extent the type

and quality of products he buys. People with low income are forced to spend most of their money

for food, rent, clothing and other essentials (Rakesh Kumar, 2019). Furthermore, a more

educated a person is, the higher the level of discretion he will employ in making purchases

( Pratap, 2017).

Every citizens, especially Generation Z who are considered full of confidence, enthusiasm, and

risk-taker are also required to have a comparable readiness to avoid unwanted things like falling

into impulsive buying behavior (Ayuningtyas & Irawan, 2021). In the study of Ayuningtyas &

Irawan (2021), Generation Z grew up with the birth of computers and the Internet, so it can be

said that they have the natural wisdom and skills to use new technologies.

As stated by Henry Bewicke (2022) Generation Z's are becoming increasingly powerful in terms

of purchasing power and disposable income.As GENERATION Z's become more affluent, they

frequently buy higher-quality goods and purchase more frivolous stuff.

Generation Z’s is accustomed to products that are always up-to-date and cares more about

holidays and often spend time in expensive cafes and even buy designer clothes than to meet
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their basic living needs. In line with the advancement of technology, this generation

areconsidered to be more willing to take risks in decision making, but at the same times, this

could make them to be more vulnerable in terms of impulsive behaviour and become more

tempted to make an unnecessary purchase.

According to Gauri Sarda- Joshi (2020), Generation Z’s impulse buy things that make them feel

good; or things that have an emotional value. The thought of immediate, pure pleasure can be

insanely powerful; particularly when they are stressed out. The loss aversion, thinking they’ve

spotted a bargain, the need to stockpile and biased evaluation of use are also the cognition of

impulsive buying of the Gen Z’s. Impulsive behavior are triggered by an irresistible force to buy

and an inability to evaluate its consequences. Despite being aware of the negative effects of

buying, there is an enormous desire to immediately satisfy their most pressing needs (Meena,

2018).

As the researchers dug dipper, impulse buying of Generation Z has different classification.

Generation Z’s act very emotionally and purchase the product, even though the purchase would

be out of their normal buying behavior. However, still making an impulse purchase, in essence,

the reason that makes Gen Z’s feel the purchase is based on a need, not an emotion. There are

times that Gen Z’s was really not planning to buy the product/service, but the way the products

were placed in the store, either online or offline, they’re triggered a feeling to stock up.

Thus, this study of interest because

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Statement of the Problem

This research study aims to determine the level of impulse buying behavior of the Generation Z.

Specifically, this study aim to answer the following questions:

1. What is the demographic profile of the respondents?

 Age

 Educational Attainment

 Ethnicity

 Income/Allowance

 Civil Status

2. What is the level of impulse behavior among Gen Z?

3. Is there a significant difference of the level of impulsive behavior among Generation Z in

terms of age, educational attainment, ethnicity and income?

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Conceptual Framework

Impulse buying is one of the important changes we witness among consumer in recent times. The

aim of this study is to build up model on impulsive buying behavior.

According to Jain (2010), impulse buying will be more prevalent if income is good, otherwise

consumer will think before buying which contradicts the definition of impulse buying.

One of the studies also concludes that, majority of the consumers either never or only sometimes

plans their purchases, thereby rendering themselves more susceptible to stimuli that encourage

impulse buying behavior (Banerjee, 2012).

INPUT THROUGHPUT OUTPUT

Identify the Level of impulse

Conducting a survey
demographic profile behavior among
questionnaires among
of the respondents: Generation Z.
Generation Z.
 Age
 Sex
 Education
attainment
 Ethnicity
 Marital status
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Figure 1: Paradigm of the study

The focus of this study is depicted in Figure 1. This study was the main goal to described using

the system method (input, throughput, output). The input consists of the demographic profiles of

the respondents in terms of age, sex, educational attainment, ethnicity, and marital status.

While the throughput shows that the researchers are conducting a survey questionnaire on 40

respondents among Generation Z. The output will define the level of impulse buying behavior

among Generation Z.
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Significance of the Study

The result and conclusions of this study would be beneficial to the following:

Generation Z

As an information and awareness regarding the impulse buying behavior of Gen Z as well asa

guide for them to be responsible in their purchases.

Future researchers

This research study will serve as a basis for investigations of a similar study. Future

researchers can use the result of this study to improve and broaden the coverage about the

behavior of Gen Z particularly in terms of their spending and purchases.

Parents

This study, parents of this generation will gain from the knowledge because it will serve as a

foundation for how they will later advice their children or making buying decision. It will also be

a great help to them because they will learn how to teach their children to set limits to prevent

their impulsive buying.

Financial Advisors

Advisors create individualized financial plans using their knowledge and experience. This study

will provide new information on how to cope with clients who make impulsive buying.
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Scope and Delimitation

The general intent of this research study is to determine the impulse buying behavior among

Generation Z and if the demographic profile of each respondents have an impact to their buying

behavior. The researchers will identify including the profile of the respondents in term of sex,

age, income, civil status, education attainment and their ethnicity. The study require 40

respondents that will participate in the study. The respondents are aged 16-25 who belong in the

Generation Z.
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Definition and terms

The following terminologies are vital in understanding this study. The definition of the following

terms are thereby presented.

Behavior. an action, activity, or process which can be observed and measured. Often, these

actions, activities, and processes are initiated in response to stimuli which are either internal or

external. The results of studies on these must be objective, however, in order to be reliable and

valid for scientific purposes (N., Sam M.S., 2019).

An individual asserts and convey via their attitudes and how they act.

Impulse. an impulse is a sudden force or desire, this could be an electrical impulse, or an

impulse to get some pizza. If you act on a sudden feeling or thought, you're following an impulse

(Dictionary).

It is a rapid and sportaneous, with little consideration or the repercussions of the purchase. The

proclivity to make an expected, quick, and unreflective purchases.

Buying.

Generation Z. the generation reaching adulthood in the second decade of the 21st century,

perceived as being familiar with the internet from a very young age. Generational cohorts are

defined by birth years rather than age, so the age range of Gen Z will continue to shift over time.

Most sources agree that Gen Z begins around 1997 and ends around 2010, so as of 2020, the
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Generation Z age range is roughly between 10 and 23 years old. Many of the oldest members of

Gen Z now make up a significant portion of the workforce (Bamboohr).

The generation of impulse shoppers, persuasive while making purchases, and the brand-less and

fashion hungry consumers.

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RESEARCH DESIGN

This research employs the quantitative non experimental design. A quantitative research design

is a formal, objective, systematic process in which numerical data are use to obtain information

needed. The data that will be gathered will be the basis to identify the level of impulse buying

behavior of Generation Z.

Meanwhile, this study will also employ a descriptive-survey research design, specifically to

identify if the level of impulse buying behavior of Generation Z has an affect with their

demographic profile of the Generation Z.

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Matrix of Reviewed Studies

 Sorted chronologically (from most recent to oldest)

 Minimum of 10 references (research studies)

Authors
Research Domains/Focus Methodology Salient Recommendation
and
Locale of the Study Used Findings s/ Limitations
Dates

Bewicke This study This study This study Generation Z These research
(2022) was aimed to focus employed a are becoming study are not
conducted at on personalized descriptive increasingly loysal when it
powerful in comes to brands,
interesting reward and qualitative
terms of so you need to
crossroad experiences. research purchasing stay on your toes
Investing in design power and to keep them
inititives that disposable interested with ne
benefit the local income offers, products
community, and great
environment , customer service
important causes
, etc.

Ayuning Bandung This study is to Through So that way

tyas |& Indonesia examine the survey using a individuals can
Irawan influence of questionnaire better know their
financial
(2021) financial literacy
condition and
on consumer’s goals.After
impulsive kwoning the
buying existing spending
behavior ,the budget,as a
influence of banchmark for
financial literacy consumption. So
that individuals
on self-control
become more able
and the to control
influence of themselves and
financial literacy are not easily
on consumer’s tempted to make
impulsive unnecessary
expenses because
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buying behavior it will make the

with self control budget plan that
as mediating has been deviated
variable.

Rakesh This study This study This study

Costumer These factors too
Kumar was aimed to employed a behavior can can have a deep
(2019) conducted at expense the age, survey be impact on how
significantly people buy and
india. sex, education qualitative
influence by a spend and how
and income. research number of marketing must
design. factors, be done to
including age, achieve.
sex, income,
education and
mobility.
Chachar This study this study This study One of the The studies in this
kar & was distinguished employed a studies also context found an
Iram conducted at parts of the descriptive concludes important factor
that, majority of impulse buying
(2017) Amravati process, quantitative
of the and that is
University, circumstances research consumers customer’s
Amravati and phenomenon design. either never affective state or
(M.S.) of impulse or only mood.
buying behavior. sometimes
plans their It is found that if
purchases, customer is in a
thereby good quality
rendering mood, he or she
themselves tends to
more recompense him
susceptible to or herself more
stimuli that generously to buy
encourage impulsively.
impulse
buying
behavior.

Impulse
buying will be
more
prevalent if
income is
good,
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otherwise
consumer will
think before
buying which
contradicts
the definition
of impulse
buying