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CONSUMER BUYING BEHAVIOUR A FACTOR OF COMPULSIVEBUYING PREJUDICED BY WINDOWSILL PLACEMENT

Journal: Journal of Marketing Research

Manuscript ID: Draft

Manuscript Type: New Submission

Topics and Methods: Physiological/neurological bases < Theoretical Foundation, Sampling/research design < Theoretical Foundation

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Journal of Marketing Research

8/10/2019 SSRN-id2177187

2/19Electronic copy available at: http://ssrn.com/abstract=2177187Electronic copy available at: http://ssrn.com/abstract=2177187Electronic copy available at: http://ssrn.com/abstract=2177187

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This is an electronic copy, so dont require signature


The authors of this research paper are

Irfan HameedPhD Scholar & Lecturer, Iqra University

Business Administration Department, Main Campus, Karachi, PakistanE-mail: [email protected]

Tel: +92-333-550-30-36

Yasir Ali Soomro PhD Scholar & Lecturer, Iqra University

Business Administration Department, Main Campus, Karachi, PakistanE-mail: [email protected]: +92-345-356-43-85

Imran HameedPhD, Aix Marseille Universit, France Assistant Professor, Iqra University

Business Administration Department, Main Campus, Karachi, PakistanE-mail: [email protected]

Tel: +92-347-511-00-80

The research has been done without getting financial support from any one instead the authorsthemselves.

In case of any query, please feel free to contact Irfan Hameed on email id:[email protected].

Regards,

Irfan Hameed

PhD Scholar & Lecturer,

Business Administration Department

Iqra University, Main Campus, Karachi.

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Consumer buying behavior a factor of compulsive buying 1


ABSTRACT

This empirical research investigates the impact of windowsill placement

on the compulsive buying behavior of consumers on three different types of

products i.e., convenience products, shopping products, and specialty products.

We hypothesized the positive effect of windowsill placement on all three types of

product categories. The categorical regression (Optimal scaling) was used to test

the hypotheses. The data was collected via self administered questionnaire from

Pakistan through systematic random sampling, and the sample consisted of 500

respondents. The results of data analysis supported only the 1 st hypothesis which

highlighted that placement of products in shopping centers has an impact of

unplanned buying of consumers for convenience products.

KEY WORDS: WINDOWSILL PLACEMENT, COMPULSIVE BUYING, CONVENIENCE PRODUCTS,

SHOPPING PRODUCTS, SPECIALTY PRODUCTS.

INTRODUCTION

This study is an insight into the compulsive buying pattern of individuals on the basis of

maneuvers used by marketers. The relationship between windowsill placement and the demand

of customers have been studied with respect to different consumer product categories.

Windowsill placement has been used as independent variable and types of consumer products

have been used as dependent variables namely convenience products, shopping products, and

specialty products. Unsought products have not been used for research purpose because of its

very nature. Operational definitions of the variables have been given below:

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Consumer products are products and services bought by final consumers for personal

consumption. Marketers usually classify these products and services further based on how

consumers go about buying them. Consumer products include convenience products , shopping

products , specialty products , and unsought products . These products differ in the ways

consumers buy them and, therefore, in how they are marketed (Kotler, Armstrong, 2011).

Convenience products are consumer products and services that customers usually buy

frequently, immediately, and with minimal comparison and buying effort. Examples include

laundry detergent, candy, magazines, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when

customers need or want them (Kotler, Armstrong, 2011).

Shopping products are less frequently purchased consumer products and services that

customers compare carefully on suitability, quality, price, and style. When buying shopping

products and services, consumers spend much time and effort in gathering information and

making comparisons. Examples include furniture, clothing, used cars, major appliances, and

hotel and airline services. Shopping products marketers usually distribute their products through

fewer outlets but provide deeper sales support to help customers in their comparison efforts

(Kotler, Armstrong, 2011).

Specialty products are consumer products and services with unique characteristics or brand

identification for which a significant group of buyers is willing to make a special purchase effort.

Examples include specific brands of cars, high-priced photographic equipment, designer clothes,

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and the services of medical or legal specialists. A Lamborghini automobile, for example, is a

specialty product because buyers are usually willing to travel great distances to buy one. Buyers

normally do not compare specialty products. They invest only the Time needed to reach dealers

carrying the wanted products (Kotler, Armstrong, 2011).

Unsought products are consumer products that the consumer either does not know about or

knows about but does not normally consider buying. Most major new innovations are unsought

until the consumer becomes aware of them through advertising. Classic examples of known but

unsought products and services are life insurance, preplanned funeral services, and blooddonations to the Red Cross. By their very nature, unsought products require a lot of advertising,

personal selling, and other marketing efforts (Kotler, Armstrong, 2011).

Windowsill placement refers to the placement of the product in the shopping center also known

as shelf placement. In this study word windowsill placement denotes favorable position in the

shopping center like placing it just behind the cashier or at the entrance of the store.

Three hypothesized statements have been made to check the relationship between dependent and

independent variable (s). Firstly the relationship of shelf placement on sales of convenience

products, secondly the relationship of shelf placement on sales of shopping products, thirdly the

relationship of shelf placement on sales of specialty products.

The impact of placement has been studied with the help of the statistical test by using Statistical

Package for Social Science (SPSS). The test used is categorical regression (Optimal scaling) to

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interpret the findings that whether placement of products in shopping centers has an impact of

unplanned buying of consumers or not. If yes then it is on which types of products.

LITERATURE REVIEW

Consumer research on compulsive buying began with work by Faber, O'Guinn, and

Krych (1987), Faber and O'Guinn (1988, 1989), O'Guinn and Faber (1989), and Valence,

d'Astous, and Fortier (1988). Faber and O'Guinn (1988) defined compulsive consumers as

"people who are impulsively driven to consume, cannot control this behavior, and seem to buy in

order to escape from other problems". Edwards (1992) defined compulsive buying behavior as "a

chronic, abnormal form of shopping and spending characterized, in the extreme, by an

overpowering, uncontrollable, and repetitive urge to buy, with disregard for the consequences"

Research on compulsive consumption reveals a number of consistent findings. As discussed by

Faber, Christenson, de Zwaan, and Mitchell (1995), compulsive consumption behaviors are

associated with low levels of self-esteem, high levels of depression, and high levels of anxiety. In

their summary of the literature, DeSarbo and Edwards (1996) linked compulsive consumption to

a number of psychological traits, including "dependence, denial, depression, lack of impulsive

control, low self-esteem, approval seeking, anxiety, escape coping tendencies, general

compulsiveness, materialism (envy), isolation, excitement seeking, and perfectionism" . In their

research, DeSarbo and Edwards identified two clusters of compulsive consumers. They

identified an internal compulsive buying group that they argued is driven by deep psychological

problems, their personality structure, and family upbringing. The second group ofcompulsive

consumers appeared to be driven by personal circumstances rather than such deep-seated

psychological factors. The trait of impulsiveness was significant for both groups of respondents.

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d'Astous (1990) investigated compulsive consumption among a population of "normal"

consumers. She obtained evidence that the same theoretical relations found in previous studies,

in which known groups of compulsive consumers were compared to the general population, are

found in the general population

In a recent critique of contemporary personality research in consumer behavior, Endler and

Rosenstein (1997) advocated an interactionist approach as a means ofincreasing the predictive

ability of personality traits. In another influential article, Buss (1989) made a similar argument.He suggested that researchers investigate manipulations and traits jointly, which he proposed is

similar to looking at the interaction between person and situation. In his article, Buss also

distinguished between two types of traits. Borrowing ideas from Allport (1961), he distinguished

surface traits from psychological traits. He suggested that surface traits are summaries of surface

behaviors. In contrast, psychological traits exist at a deeper level and act asthe foundation for the

more specific surface traits. Allport (1961) also used the term secondary traits to describe the

surface orstylistic trait idea.

In contrast to surface traits, cardinal and central traits are proposed to exist at a deeper level

(Allport, 1961). Few in number, cardinal traits identify basic dimensions on which individuals

diverge. We define cardinal traits as the basic, underlying predispositions of individuals that

arise from genetics and their early learning history. Allport (1961) proposed that the number is

likely to be between 5 and 10. If a limited set of cardinal traits can be identified, it will provide

parsimony in developing our models of individual differences in consumer behavior. As noted by

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Morgan and Hunt (1994), parsimony is an important scientific principle. Although disagreement

is found in the psychological literature as to how manycardinal traitsmay exist, we tentatively

propose that consumer researchers should first turn to the Five-Factor Model of personality to

identify them (Costa & McCrae, 1985; Goldberg, 1993; Wiggins, 1996). In this article, we

employ the traits of extraversion, agreeability, stability, openness to experience, and

conscientiousness found in the Big Five model developed by Goldberg (1992) and refined by

Saucier (1994). Central traits represent the third category of individual difference variables found

in the hierarchical model. Based on Buss (1989) and Allport (1961), we conceptualize central

traits as narrower in application and emerging from the interplay of cardinal traits, the culture inwhich an individual lives, and the learning history of the individual. These individual difference

dimensions are more narrowly focused than the cardinal traits, and dozens may exist.

Although music is generally thought of as an entertainment medium, it can also be used to

achieve other objectives. In particular, music is employed in the background of production

facilities, offices and retail stores to produce certain desired attitudes and behaviors among

employees and/or customers. For example, background music is thought to improve store image,

make employees happier, reduce employee turnover and stimulate customer purchasing. Despite

the wide spread use of music in the marketplace, research documenting the effects of music is

limited, and the results of existing research are in conclusive regarding its effects on consumer

behavior. This is unfortunate because music is an atmospheric variable readily controlled by

management. Past decisions to use background music in the marketplace have generally been

based more on intuition or folklore rather than on strong empirical results. The purpose of this

paper is twofold: First, it critically reviews the existing literature on the subject, and second, it

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presents the results of a study examining the effects of background music on in-store shopping

behavior (Milliman, 1982).

Much of the controversy suggested in this paper and by other authors pertaining to the question

of "can background music affect behavior?" still remains (Brayfield and Crockett 1955; Jacob

1968; McGehee and Gardner1949; Smith 1947; Uhrbrock, 1961). However, one consumer

behavior study, conducted in two large supermarkets, does not suffer from the limitations of the

research previously cited. The study examined the loudness of music (as the independent

variable) and its effects upon shopping behavior. In this case, music was varied from loud too

soft in eight counter-balanced experimental sessions.It was found that significantly less time was spent in the stores when the music was loud

compared to when it was soft, although there was no significant difference in sales or in the

customer's reported level of satisfaction (Smith and Curnow 1966).

H 1: There is a positive impact of windowsill placement in supermarkets on compulsive buying

behavior of consumers for convenience products.

Convenience products = + (Windowsill placement) +


behavior of consumers for shopping products.

Shopping goods = + (Windowsill placement) +


behavior of consumers for specialty products .

Specialty goods = + (Windowsill placement) +

RESEARCH METHODS

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3.1 Method of Data Collection:

Data has been collected from the public of the most crowded city of the Pakistan (i.e.

Karachi). Instrument used was questionnaire and the sampling technique used was systematic

random sampling.

3.2 Sampling Technique:

Probability based sampling technique (i.e. systematic random sampling technique) has

been used for selecting the sample out of the entire population. Sampling friction have been

calculated with the help of this formula

Sampling friction = sample size / population

On average almost one thousand individuals visit each superstore in evening and the target was

to select one hundred respondents from each store,

Sampling friction = 500 (100 respondents from each store * 5 stores in total) / 5000 (1000

individuals in each store * 5 stores)

=> 500 / 5000 => 1 / 10 (every tenth respondent is to be selected)

Hence every tenth respondent have been targeted for the purpose of data collection.

3.3 Sample Size:

A sample size of five hundred respondents has been used for the research purpose.

Hundred respondents were selected from every supermarket altogether five supermarkets were

targeted.

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3.4 Instrument of Data Collection:

Self-administered closed ended questionnaires have been used for the purpose of data

collection. All questionnaires were standardized and each questionnaire was having sixteen

questions in total which were succeeding likert scale having 5 choices and they were coded in

this phenomenon. 1 for strongly disagree, 2 for Disagree, 3 for Neutral, 4 for Agree, 5 for

strongly agree.

3.5 Proposed Research Model

1.6 Statistical Technique

The impact of placement has been studied with the help of the statistical test by using

Statistical Package for Social Science (SPSS). The test used is categorical regression (Optimal

scaling) to interpret the findings that whether placement of products in shopping centers has an

impact of unplanned buying of consumers or not. If yes then it is on which types of products.

WINDOWSILL PLACEMENT

COMPULSIVE

BUYING

Convenience Products Shopping Products Specialty Products

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RESULTS

4.1 Findings and Interpretation of the Results

H 1: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for convenience products.

Model Summary

Multiple R R Square Adjusted R Square Apparent Prediction Error

.406 .165 .104 .835

Dependent Variable: Convinience_ProductsPredictor: Shelf_Placement

Interpretation:

Correlation Coefficient (R) is 0.406 which shows that the relationship betweenwindowsill placement in supermarkets and compulsive buying behavior of consumers forconvenience products is moderate. Moreover value of Correlation Coefficient (R) is above 0hence the relationship between the variables is direct. Coefficient of Determination (R^2) is0.165 which shows that the 16.5% model is being explained by the windowsill placement andremaining 83.5% is being explained by unknown variables (which are not taken in to account forthe purpose of this research.

ANOVA Sum of Squares df Mean Square F Sig.

Regression 9.889 4 2.472 2.713 .039

Residual 50.111 495 .911

Total 60.000 499

Dependent Variable: Convinience_ProductsPredictor: Shelf_Placement

Coefficients Standardized Coefficients

df F Sig.BetaBootstrap (1000)Estimate of Std. Error

Shelf_Placement .406 .133 4 9.294 .000

Dependent Variable: Convenience_Products

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Interpretation:

The significance value is 0.000 which is less than 0.05 so on the basis of p-value nullhypothesis that there is no relationship has been rejected and alternate hypothesis that there is

positive relationship between windowsill placement in supermarkets and compulsive buying

behavior of consumers for convenience products has been accepted.

H 2: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for shopping products.

Model Summary

Multiple RR

SquareAdjusted R

Square Apparent Prediction Error

.368 .136 .089 .864Dependent Variable: Shopping_ProductsPredictor: Shelf_Placement

Interpretation:

Correlation Coefficient (R) is 0.368 which shows that the relationship betweenwindowsill placement in supermarkets and compulsive buying behavior of consumers forshopping products is weak. Moreover value of Correlation Coefficient (R) is above 0 hence therelationship between the variables is direct. Coefficient of Determination (R^2) is 0.136 whichshows that the 13.6% model is being explained by the windowsill placement and remaining

86.4% is being explained by unknown variables (which are not taken in to account for the purpose of this research.

ANOVA

Sum of Squares df Mean Square F Sig.

Regression 8.137 3 2.712 2.929 .041

Residual 51.863 496

.926

Total 60.000 4

99Dependent Variable: Shopping_ProductsPredictor: Shelf_Placement

Coefficients

Standardized Coefficients df F Sig.

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BetaBootstrap (1000)Estimate of Std. Error

Shelf_Placement .368 .283 3 1.691 .179

Dependent Variable: Shopping_Products

Interpretation:

The significance value is 0.179 which is greater than 0.05 so on the basis of p-value nullhypothesis that there is no relationship has been accepted and alternate hypothesis that there is

positive relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for shopping products has been rejected.

H 3: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for specialty products .

Model Summary

Multiple RRSquare

Adjusted RSquare Apparent Prediction Error

.466 .217 .190 .783

Dependent Variable: Speciality_ProductsPredictor: Shelf_PlacementInterpretation:

Correlation Coefficient (R) is 0.466 which shows that the relationship betweenwindowsill placement in supermarkets and compulsive buying behavior of consumers forspecialty products is moderate. Moreover value of Correlation Coefficient (R) is above 0 hencethe relationship between the variables is direct. Coefficient of Determination (R^2) is0.217which shows that the 21.7% model is being explained by the windowsill placement andremaining 78.3% is being explained by unknown variables (which are not taken in to account forthe purpose of this research.

ANOVA

Sum of Squares df Mean Square F Sig.

Regression 13.027 2 6.513 7.904

.001

Residual 46.973 497

.824

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Coefficients

Standardized Coefficients

df F Sig.BetaBootstrap (1000)Estimate of Std. Error

Shelf_Placement .466 .556 2 .702 .500

Dependent Variable: Speciality_ProductsInterpretation:

The significance value is 0.500 which is greater than 0.05 so on the basis of p-value nullhypothesis that there is no relationship has been accepted and alternate hypothesis that there is

positive relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for specialty products has been rejected.

Total 60.000 499

Dependent Variable: Speciality_ProductsPredictor: Shelf_Placement

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4.2 Hypotheses Assessment Summary

S.NO. Hypothesis SIG.2-tailed EmpiricalConclusion

H 1

There is a positive impact of windowsill placementin supermarkets on compulsive buying behavior ofconsumers for convenience products.

0.000 Accept

H 2

There is a positive impact of windowsill placementin supermarkets on compulsive buying behavior ofconsumers for shopping products.

0.179 Rejected

H 3

There is a positive impact of windowsill placementin supermarkets on compulsive buying behavior ofconsumers for specialty products .

0.500 Rejected

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DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURERESEARCH

5.1 Conclusion :

There is a positive relationship between convenience products and the independent

variable which is windowsill placement. Whereas there is no relationship of windowsill

placement of shopping, as well as specialty products in supermarkets. It was proved that people

prefer buying specialty products such as, electronics from their original stores.

5.2 Discussions:

The points we came across through our research were how the manufacturers advertise

their product (whether it be by windowsill placement or by salesperson or TV commercials).

Customers should know what they want to and do not want to buy. Customers should be aware

of the strategic techniques of the manufacturers.

5.3 Implications and Recommendations:

In order to attract more consumers to buy their products, manufacturers must put in a lot

of effort to make their product eye catching by windowsill placement , stores should be clean

proper advertisement of products should be done so the consumer becomes aware of the product.

5.4 Future Research:

The further can be carried on in other countries. As this has been done by taking in to

account a city of Pakistan. Furthermore it can be done on unsought products. In which ways we

can enhance the sales of unsought products because of its very nature.

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