Impulse Buying

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Impulse Buying

  1. 1. THE ENIGMA OF IMPULSE BUYING GROUP MEMBERS: AMITANSHU SRIVASTAVA ALOK KUMAR ANAND KUMAR ABHISHEK DHAL MUNMUN
  2. 2. Discussion Outline
  3. 3. Discussion Outline
  4. 4. 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.
  5. 5. 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.
  6. 6. Discussion Outline
  7. 7. 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.
  8. 8. Discussion Outline
  9. 9. Broad Objective The broad objective of this project is to understand the impulse buying behavior and what makes consumers to for a impulse purchase
  10. 10. Specific Objectives SPECFIC OBJECTIVES To determine To determine whether the the factors customer buy affecting such more in behavior. planned manner or in unplanned manner.
  11. 11. Discussion Outline
  12. 12. Cluster Analysis Cluster 2 3 1 Variety_life 1.86 4.17 4.21 Follow_Others 2.20 3.56 2.55 Lead_Others 1.49 3.54 4.03 New_Things 3.12 2.31 3.88 Age 3.72 4.48 2.64 Education 3.74 3.90 3.48 Occupation 4.45 5.35 3.21 Monthly_Income 2.25 1.79 2.00 Gender 1.28 1.19 1.33 Final Cluster Centers
  13. 13. 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
  14. 14. Cluster Analysis Cluster 1 65.000 2 52.000 3 33.000 Valid 150.000 Missing .000
  15. 15. I rarely ever buy impulsively. I always buy if I like it. 8% 17% 17% 13% Strongly Disagree Strongly Disagree Disagree Disagree 9% 27% Can't Say Can't Say 8% Agree 31% Agree Strongly Agree Strongly Agree 49% 21% While moving around the store, I While moving around, I often buy decide for purchasing by looking being tempted out of need which at the things. has suddenly evolved 0% 0% 6% 20% 29% Strongly Disagree Strongly Disagree 33% Disagree Disagree Can't Say Can't Say Agree Agree 52% 23% 13% Strongly Agree Strongly Agree 24%
  16. 16. When I go for shopping I buy things that I had not intended to purchase. 5% 18% 28% Strongly Disagree Disagree Can't Say Agree Strongly Agree 38% 11%
  17. 17. Quite often I regret after buying new things. 4% 21% 17% Strongly Disagree Disagree 5% Can't Say Agree Strongly Agree 53%
  18. 18. Factor Analysis Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .623 Bartlett's Test of Approx. Chi-Square 1459.126 Sphericity df 28 Sig. .000 KMO and Bartlett's Test
  19. 19. Scree Plot
  20. 20. Component Matrix(a) Component 1 Low_Price .894 Hidden_Desires .428 Advertisements .938 Visibility .879 Shelf_Space .934 Discount .767 Packing .891 Storage .750
  21. 21. Relationship Between a Advertisement and Age DESCRIPTIVES AD 95% Confidence Interval for Mean Std. Std. Lower Upper Minim Maxim N Mean Deviation Error Bound Bound um um 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 The null hypothesis is that the advertisement has effect on age
  22. 22. ANOVA AD Sum of Mean Squares df Square F Sig. Between .708 5 .142 .067 .997 Groups Within 304.125 144 2.112 Groups Total 304.833 149 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.
  23. 23. Relationship Between a Advertisement and Gender DESCRIPTIVES AD 95% Confidence Interval for Mean Std. Std. Lower Upper Minim Maxim N Mean Deviation Error Bound Bound um um male 111 2.94 1.454 .138 2.66 3.21 1 5 female 39 2.54 1.335 .214 2.11 2.97 1 5 Total 150 2.83 1.430 .117 2.60 3.06 1 5 The null hypothesis is that the advertisement has effect on gender
  24. 24. ANOVA AD 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 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.
  25. 25. Discussion Outline
  26. 26. 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.
  27. 27. 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.
  28. 28. Discussion Outline
  29. 29. 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.
  30. 30. 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.
  31. 31. Discussion Outline

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