Personal and In-Store Factors Influencing

Impulse Buying Behavior Amongst

Generation Y Consumers of Small Cities
MUHAMMAD DANISH
SAQIB ALI
MUDASSIR HUSNAIN
 INTRODUCTION
 Understanding a consumer behavior is a vital aspect of marketing,
there have been many attempts to understand about different
behaviors’ of consumers.
 In consumer behavior, the choice of consumer is the most
significant factor in purchasing decisions. Therefore, many studies
focuses on consumer behavior and its decision making process.
 In the present study, a specific type of buying behavior which is
impulse buying is examined in the apparel retail sector on
“generation Y”.
 As, 30 to 50 percent of all buying is classified as impulse buying
and about 90 percent of consumers are the impulse buyer.
 Cont.
 Previously different studies focus different situational factors on Impulse buying

Human factor Intrinsic factors

Layout and design Music in Store
Decoration displays External factors
Point of purchase Emotions and mood
Store exterior and interior Sensory factor in store

• This study consider two types of situational factors, personal factor

(Time availability, Money availability, Family influence) and in-store
factor (Store environment, Friendly employees, Sales promotions).
• This study consider retail store of small cities as previous research
have limitation of considering large cities (Badgaiyan & Verma, 2014).
 Cont.
 Although big cities are growing, but small cities need more growth
“Though the retail sector is expanding rapidly, however, the market
still needs maturity which would come through introducing the
same culture in second and third tier cities (Haq Shahram, 2016).
 Moreover, smaller cities overlook to consider by urban theorists,
they try to conceptualize broad urban agendas and show
generalizable models.
 In order to grow the retail sector in the smaller cities, it is important
to identify some factors which are important to attract more
customers to buy impulsively in the small cities of Pakistan.
 It is good for both academia and industry to examine these
relationships in developing countries, i.e. Pakistan.
 Cont.
 In Pakistan, the offline retail store has a high potential for
growth (Doolittle, 2011).
 The grandness of the retail sector in our land is increasing
as wholesale and retail sector worth is Rs 3.6 trillion,
representing around 18% of GDP, which is the largest
Subsector of the services having a share of 31.1% in the
services sector, in addition, retail and wholesale trade
recorded a growth of 6.82% against the target of 5.5%,
whereas it rose by 4.25% last year (Yusufzai Amin, 2017).
 So it is crucial to identify such factors which are vital for
the growth of retail sector by increasing sale volume
through impulse buying.
 Cont.
 According to the author’s best knowledge, no any study is
found which used retail environmental theory by using all
these personal and In-store situational factors on
“generation Y” in the smaller cities of Pakistan.
 So, The present study going to investigate the impact of
situational variables i.e. personal factors (Money
availability, Family influence and Time availability) and in-
store factors (Sales promotions, Store environment and
Friendly store employees) on customers’ impulse buying
behavior among the generation Y consumers in Pakistan
small cities retail stores .
 LITERATURE REVIEW
 According to Stern, (1962) impulse buying defined as an
unplanned purchase which is aroused in the store and it
changes the shopping patterns of the buyers and its an
unplanned purchase decision that is made just before a
purchase.
 Impulse buying has become an important priority and a
competitive advantage for retail stores. (Virvilaite, Saladin, &
Bagdonaite, 2009).
 This impulse buying is effected by different situational
factors. According to CEO of Coca Cola’s company Mukhtar
Kent, their 70% sale depends on impulse purchases (Karmali,
2007)
 Cont.
Impulse Buying and Personal Factors
 Effect of Money Availability Effect of Family Influence
 On the basis of several assumptions
 It can be defined as all funds
friends, family, and companions
which a person feels to spend
will change a person’s shopping
on that day (Beatty & Ferrell, 1998).
pattern.
 A customer’s planned  If the shopkeeper does more such
shopping pattern can be work which attracts people to do
changed if he/she has more shopping in group form this activity
money. increases sales volume and gives
 Previous researchers has found better results.
positive relationship between  Previous researchers suggested
money availability and contradictory relationship in family
impulse buying. influence and impulse buying.
 Cont.
 Effect of time availability
 Based on several studies, it is pointed out that time spends during the
shopping also effect on impulsive buying behavior.
 It is pointed out by previous researches that longer the consumer stays
in the store his/her chances of impulsive purchase increased.
 In-Store Factors and Impulse Buying Behavior
 Effect of Sales Promotions
 Many studies have been proven about the positive relationship between
discount, promotion and impulse purchase.
 Previous studies prove a positive and significant relationship between
discount offering and impulsive buying.
 So, by increasing the sales and promotional activities there may
increase the chances of increase in the customer's purchase behavior.
 Cont.
 Effect of store environment
 Store environment involves music,
light, arrangement of
commodities, external and internal
stimulus.
 Store atmosphere is a very
important factor. If a store
atmosphere is good, customers
feel relaxed and satisfied.
 Previous researches indicate a
positive relationship in store
environment and positive impulse
buying.
Effect of friendly employees
Customers obviously prefer to buy
at the store from where employees
provide additional service.
It is reported that if employees
provide information about the product
describe alternatives and solving
consumer queries such staff fuel the
process of impulse buying (Virvilaitėet
al., 2011).
Previous researches suggested
impulse buying effected by the
friendly employees.
 HYPOTHESIS
 H1: Money availability has a significant positive effect on impulsive
buying behavior among the consumers living in small cities of Pakistan.
 H2: Family influence has a significant positive effect on impulsive buying
behavior among the consumers living in small cities of Pakistan.
 H3: Time availability has a significant positive effect on impulsive buying
behavior among the consumers living in small cities of Pakistan.
 H4: Sales Promotions have significant positive effect on impulse buying
behavior among the consumers living in small cities of Pakistan.
 H5: Store environment has significant positive effect on impulse buying
behavior among the consumers living in small cities of Pakistan.
 H6: Friendly employees have a significant positive effect on impulse
buying behavior among the consumers living in small cities of Pakistan.
CONCEPTUAL FRAMEWORK
 METHODOLOGY
 It’s a cross sectional study and data collected by using the survey
approach.
 Unit of analysis was individual with a sampling technique based on
purposive sampling.
 this study followed a deductive approach. People born between 1977 and
1994 were chosen as a target population as these individuals are defined
as “Generation Y” (Kelly, 2015; Paul, 2001; Valaei & Nikhashemi, 2017).
 Small cities in northern and central Punjab, Pakistan were selected as the
context of the study.
 Present study consisted on 422 as sample size.
 Structural equation modeling is used in order to examine the relationship
among variables.
 AMOS for structural equation modeling (SEM) and SPSS 23 software is
used for data analysis.
 DATA ANALYSIS
 81% of the respondents are equal to or less than 31 years.
 According to Hair et al. (2009) minimum factor loadings is .5 and ideally
equal to .7 or greater. the outcomes of the measurement model tests meet
the validity and reliability standards.
 The CFI and TLI value of the model under study is approximately .9
which suggests this model is satisfactory.
 The results of the paper reveal that situational factors i.e. family influence,
time availability, sales promotions, store environment, and friendly
employees have significant positive
impact on customers’ impulsive buying behavior.
 Whereas money availability found insignificant impact on customer’s
impulse buying behavior.
 LIMITATION AND FUTURE DIRECTIONS

 The findings of this study were based upon cross-sectional data, more
informative and variation in the result could be found if longitudinal
data were collected.
 Only small cities were chosen instead of taking the comparison between
small and big cities that also increase the generalizability of the outcome
 This was a purely quantitative study there can be more detailed results if
it was done by using mix method.
 In the future, works can be done in other age groups, the comparison
between teenagers and generation Y and comparison between small and
big cities.
 Future studies can also be done by using other variables such as lighting
in the store, music in the store, paint color (light or dark) in the store etc.
IMPLICATION FOR
RETAILERS
 Results demonstrate that sales promotions and sale on product
increase impulse buying retailers need to offer discounts on
product and sales along the different range of products side by
side introduce some promotional strategies which may increase
more transactions.
 A positive correlation is found between friendly staff and
impulse buying behavior, but unfortunately, this factor is
missing at most of the retail stores establishing at small cities.
 So, retailers should train their employees accordingly.
 The retailer also can announce a commission base package for
their staff.