impulse buying
TRANSCRIPT
THE ENIGMA OF IMPULSE BUYING
GROUP MEMBERS:
AMITANSHU SRIVASTAVA ALOK KUMAR
ANAND KUMAR ABHISHEK DHAL
MUNMUN
Discussion Outline
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Myth or Reality
Impulse buying is such a sudden phenomenon where instinct plays a predominant role.
Impulse buying behavior is an enigma in the marketing world.
According to many literature and consumers impulse buying is a sign of immaturity and lacking behavioral control or as irrational, risky, and wasteful.
A customer makes a purchase without proper planning or prior homework.
This is the scenario that marketer and retailer try to capitalize and harness.
Myth or Reality
It is propagated by effective retail communication or out of the mind discount offers.
They provide such impulsive stimuli which are innovatively clubbed with basic needs and wants.
Instincts are driven by emotions and emotions are driven by attitude and perception.
Impulse items can be anything, a new product, samples or well established products at surprising low prices.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Project Rationale
Impulse buying behavior is much more complex than conceptualized.
The impulse purchases is observed across a broad range of product offerings in a variety of price ranges. For example, not only FMCG products but also automobiles are bought in impulse.
The purchase of relatively expensive products indicates it is an inherent individual trait, rather than a response to inexpensive product offerings.
Marketers need to understand such consumer behavior in order to formulate appropriate marketing strategy.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Broad Objective
The broad objective of this project is to understand the impulse buying behavior and what makes consumers to for a impulse purchase
Specific Objectives
To determine
whether the customer
buy more in planned
manner or in
unplanned manner.
SPECFIC OBJECTIVES
To determine the factors affecting
such behavior.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Cluster Analysis
Cluster
1 2 3Variety_life 1.86 4.17 4.21Follow_Others 2.20 3.56 2.55Lead_Others 1.49 3.54 4.03New_Things 3.12 2.31 3.88Age 3.72 4.48 2.64Education 3.74 3.90 3.48Occupation 4.45 5.35 3.21Monthly_Income
2.25 1.79 2.00
Gender 1.28 1.19 1.33Final Cluster Centers
Cluster Analysis
Age: 1: < 18 2: 18-24 3: 25-34 4: 35-44 5: 45-54 6: 55-64 7: > 64
Education: 1: Secondary 2: Higher Secondary 3: Graduate 4: Post
Graduate 4: Others
Occupation: 1: Student 2: Self Employed Professional 3: Business 4: Govt. Service
5: Pvt. Service 6: Retired 7: At Home
Income: 1: < 15000 2: 15000 – 30000 3: 30000 – 50000 4: > 50000
Gender: 1: Male 2: Female
Cluster Analysis
Cluster 1 65.000
2 52.000
3 33.000
Valid 150.000
Missing .000
17%
9%
8%
49%
17%
I rarely ever buy impulsively.
Strongly Disagree
Disagree
Can't Say
Agree
Strongly Agree
8%
27%
21%
31%
13%
I always buy if I like it.
Strongly Disagree
Disagree
Can't Say
Agree
Strongly Agree
33%
24%
23%
20%
While moving around the store, I decide for purchasing by looking
at the things.
Strongly Disagree
Disagree
Can't Say
Agree
Strongly Agree
29%
13%52%
6%
While moving around, I often buy being tempted out of need which
has suddenly evolved
Strongly Disagree
Disagree
Can't Say
Agree
Strongly Agree
5%
28%
11%39%
18%
When I go for shopping I buy things that I had not intended to purchase.
Strongly Disagree
Disagree
Can't Say
Agree
Strongly Agree
21%
53%
5%
17%
4%
Strongly DisagreeDisagreeCan't SayAgreeStrongly Agree
Quite often I regret after buying new things.
Factor Analysis
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.623
Bartlett's Test of Sphericity
Approx. Chi-Square 1459.126
df 28
Sig. .000
KMO and Bartlett's Test
Scree Plot
Component Matrix(a)
Component
1Low_Price .894Hidden_Desires .428Advertisements .938Visibility .879Shelf_Space .934Discount .767Packing .891Storage .750
N Mean
Std. Deviatio
nStd.
Error
95% Confidence Interval for Mean
Minimum
Maximum
Lower Bound
Upper Bound
18-24 yrs
34 2.76 1.327 .228 2.30 3.23 1 5
25-34 yrs
61 2.87 1.500 .192 2.48 3.25 1 5
35-44 16 2.88 1.455 .364 2.10 3.65 1 5
45-54 yrs
13 2.69 1.494 .414 1.79 3.59 1 5
55-64 yrs
10 2.80 1.317 .416 1.86 3.74 1 5
> 64 yrs 16 2.94 1.569 .392 2.10 3.77 1 5
Total 150 2.83 1.430 .117 2.60 3.06 1 5
DESCRIPTIVES
Relationship Between a Advertisement and Age
AD
The null hypothesis is that the advertisement has effect on age
Sum of Squares df
Mean Square F Sig.
Between Groups
.708 5 .142 .067 .997
Within Groups
304.125 144 2.112
Total 304.833 149
ANOVAAD
For 5 and 144 degree of freedom the critical value of F is 2.21 for α = 0.05 . Because the calculated value is less then the critical value, the null hypothesis is accepted, i.e advertisement has effect on age.
N Mean
Std. Deviatio
nStd.
Error
95% Confidence Interval for Mean
Minimum
Maximum
Lower Bound
Upper Bound
male111 2.94 1.454 .138 2.66 3.21 1 5
female39 2.54 1.335 .214 2.11 2.97 1 5
Total150 2.83 1.430 .117 2.60 3.06 1 5
Relationship Between a Advertisement and GenderDESCRIPTIVES
AD
The null hypothesis is that the advertisement has effect on gender
Sum of Squares df
Mean Square F Sig.
Between Groups
4.582 1 4.582 2.259 .135
Within Groups 300.251 148 2.029
Total 304.833 149
ANOVAAD
For 1 and 148 degree of freedom the critical value of F is 3.84 for α = 0.05 . Because the calculated value is less then the critical value, the null hypothesis is accepted, i.e advertisement has effect on gender.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Management Implications
Should create an environment where consumers can be relieved of their negative perceptions of impulse.
They may also stress the non-economic rewards of impulse buying.
Make the environment more complex: Stocking more merchandise Store layout Creating stimulating atmospherics Increasing information may be useful to stimulate
impulse buying
Make impulse purchasing more risk-free.
Management Implications
Shopping should be fun – it is management’s
job to make it so:
The impact of the store is crucial to success.
They need to appreciate that many shoppers do
not have a specific objective or purpose.
They should focus as much on entertainment,
interest and excitement as they do on getting the
mix of merchandise right and the pricing spot on.
Have special demonstrations.
Use special offers to stimulate sales.
Get the right employees and train them well.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline
Conclusions
Data support the theory that impulse buying is a common method of product selection.
The impulse to buy is hedonically complex and may stimulate emotional conflict.
Impulse buying behavior is not always an irrational but sometime a rational response to the complexities present in the environment.
Consumers use shopping to satisfy a number of wants, not just their want for the products they acquire during the shopping excursion.
Conclusions
The shopping act and impulsive product selection provide hedonic rewards.
Research on impulse buying behavior indicates that individual consumers do not view their specific purchases as wrong.
INTRODUCTION
PROJECT RATIONALE
CONCLUSIONS OBJECTIVES
ANALYSIS AND FINDINGS
MANAGEMENT IMPLICATION
Discussion Outline