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Impulse Purchasing


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Overview of impulse purchasing literature in marketing and psychology.

Published in: Business, Technology, Education

Impulse Purchasing

  1. 1. What is an “Impulse Purchase”?<br />“Researchers agree that impulse buying occurs when an individual makes an unintended, unreflective, and immediate purchase.” <br />(Jones et al. 2003, Journal of Business Research)<br />Jones et al.’s Citation for this claim?<br /><ul><li> Rook 1987
  2. 2. Rook and Fisher 1995</li></ul>“There has been little consensus on what impulse purchasing actually is.” <br />(Rook 1987)<br />John Dinsmore,, Slide 1<br />
  3. 3. “Impulse Purchase”: Dissonance<br /><ul><li> “unplanned purchasing”. . . “occurring most frequently at the grocery store” (Kollat & Willet 1967)
  4. 4. “Remembering that one needs a gallon of milk or some toilet paper does not commonly involve truly impulsive behavior.” (Stern 1962)
  5. 5. “Unintended and unplanned. . . not sufficient basis for categorizing a purchase as impulse” (Rook 1987)
  6. 6. “impulsiveness” was not associated with impulse purchasing (Kollat & Willet 1967)
  7. 7. Choices made without considering long term interests (Stigler and Becker 1977)
  8. 8. Quick response to stimulus without deliberation and evaluation of consequences (Buss & Plomin 1975)</li></ul>John Dinsmore,, Slide 2<br />
  9. 9. “Impulse Purchase”: Dissonance<br />“Impulse buying is a sudden and immediate purchase with no pre-shopping intentions either to buy the specific product category or to fulfill a specific buying task. The behavior occurs after experiencing an urge to buy and it tends to be spontaneous and without a lot of reflection (i.e., it is “impulsive”). It does not include the purchase of a simple reminder item, which is an item that is simply out of stock at home.” (Beatty, Ferrell 1998)<br />John Dinsmore,, Slide 3<br />
  10. 10. “Impulse Purchase”: Dissonance<br />“a sudden spontaneous inclination or incitement to <br />some usually unpremeditated action”<br />—Merriam-Webster’s Medical Dictionary<br />an unpremeditated <br />Purchase<br />“Impulse buying occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately.”(Rook 1987)<br />John Dinsmore,, Slide 4<br />
  11. 11. Why Do We Care @ Impulse Purchasing?<br />
  12. 12. Why We Care @ Impulse Purchasing<br /><ul><li> Universal consumer phenomenon
  13. 13. Entire industries based on impulse purchases
  14. 14. Home shopping (Rayport et al. 2005)
  15. 15. QVC—70% of their $4 billion business are channel surfers
  16. 16. 3rd Largest TV Network by Revenue
  17. 17. Infomercials
  18. 18. 38.7% of all department store purchases bought on impulse (Bellenger 1978)
  19. 19. Given high fixed cost structures of retailers, impulse shopping makes all the difference
  20. 20. Impulse control disorders involving shopping</li></ul>John Dinsmore,, Slide 6<br />
  21. 21. Why We Care @ Impulse Purchasing<br /><ul><li> Lipstick Effect</li></ul>“After the terrorist attacks of 2001 deflated the economy, Mr. Lauder noticed that his company was selling more lipstick than usual. He hypothesized that lipstick purchases are a way to gauge the economy. When it’s shaky, he said, sales increase as women boost their mood with inexpensive lipstick purchases instead of $500 slingbacks.”<br />“April Lane Benson, a psychologist in Manhattan who works with compulsive spenders, said there are two reasons why women would want lip color more than other affordable pleasures. . .’The mouth is an organ of so much pleasure.’ . . . ‘When women use lipstick in times of stress,” Dr. Benson said, “they’re doing it to put forward an image that they are more alive and more vibrant, and not as down in the mouth. It’s part of the uniform of desirability and attractiveness. A shirt or a cup of gelato is much farther removed from that.”<br />“Hard Times But Your Lips Look Great”, The New York Times, May 1, 2008<br />John Dinsmore,, Slide 7<br />
  22. 22. What Do We Know @ Impulse Purchasing?<br />General Attributes<br />Internal Factors (Affect)<br />External Factors (Stimuli)<br />Purchasing Impulse Generation<br />Impulse Purchase Regulation<br />
  23. 23. Impulse Purchasing: Attributes<br /><ul><li> Impulse Purchasing is:
  24. 24. immediate (Barratt 1985)
  25. 25. a “distinguishing personality trait” (Rook and Gardner 1993)
  26. 26. this trait is stable and consistent (Allport 1937, Rook and Fisher 1995)
  27. 27. more emotional than rational. (Weinberg et al. 1982)
  28. 28. “directly stimulus-controlled, reactive behavior” (Kroeber-Riel 1980)
  29. 29. “hedonically complex”. . . “promotes emotional conflict”. . . “diminishes regard for consequences” (Rook 1987)
  30. 30. self reinforcing (Hoch & Lowenstein 1991)</li></ul>John Dinsmore,, Slide 9<br />
  31. 31. Impulse Purchasing: Factors—Internal<br /><ul><li>Weinberg et al. Study (1982)
  32. 32. Resulting from Emotional & Behavioral Activation
  33. 33. “more amused, more delighted and more enthusiastic than nonbuyers.”
  34. 34. Galvanic skin reaction (GSR) showed IPers had different body language, posture
  35. 35. 75% of shoppers feel better after an impulse purchase, 8% feel worse (Rook and Gardner 1992)</li></ul>John Dinsmore,, Slide 10<br />
  36. 36. Impulse Purchasing: Factors—Internal<br /><ul><li> Affect
  37. 37. encourages approach behavior which in turn encourages people to reward themselves (Cunningham 1979)
  38. 38. also encourages overspending (Donovan and Rossiter 1982)
  39. 39. Gender
  40. 40. There is a gender difference (Coley 2003) for impulse purchases with regard to:
  41. 41. items purchased
  42. 42. affective traits
  43. 43. impulse management
  44. 44. cognitive process</li></ul>John Dinsmore,, Slide 11<br />
  45. 45. Impulse Purchasing: Factors—External<br /><ul><li> Time/Duration of Exposure to Stimuli
  46. 46. IP a function of time shopping (Belk 1975)
  47. 47. Time a function of product involvement (Bloch et al 1986)
  48. 48. and knowledge of store/environment (Bettman 1979)
  49. 49. Longer is better. . . to a point (Singh et al. 2000)</li></ul>John Dinsmore,, Slide 12<br />
  50. 50. Impulse Purchasing: Factors—External<br /><ul><li> Proximity (Rook 1987)
  51. 51. Perceived “extra money” had only marginal association with impulse purchases (p<.06) (Jeon 1990)
  52. 52. Number of items purchased, the more impulse purchases (Kollat & Willet 1967)
  53. 53. Also found longer someone married (could covary with age, affluence, family size etc.)
  54. 54. Demonstrations, Personal Interaction (Singh et al. 2000)
  55. 55. Mowrer’sAffective Feedback Theory (Mowrer 1960): Demos cause empathy
  56. 56. Smith & Swinyard’s Integrated Information Response Model (1982): Direct experience leads to information acceptance, belief & commitment
  57. 57. Promotional stimuli (sales, displays, etc.)</li></ul>John Dinsmore,, Slide 13<br />
  58. 58. Impulse Purchasing: Impulse Regulation<br /><ul><li> “Correlates positively with age, intelligence, social responsibility and the presence of a father at home” (Rook 1987)
  59. 59. Competing stimuli can “interrupt” the impulse purchase (Bettman 1979)
  60. 60. Stated Attitude: Those who profess to disapprove of impulse purchases no less likely to make impulse purchase (Rook and Fisher 1995)
  61. 61. Consumers less likely to make impulse purchases when the purchasing is socially visible </li></ul>John Dinsmore,, Slide 14<br />
  62. 62. Are Purchasing Impulses Like Other Impulses?<br />Impulsivity Studies in Psychology<br />Impulse Studies in Neurology<br />Impulse Control Disorders<br />
  63. 63. Psychology: General Impulsivity<br /><ul><li> “Originate from both conscious and unconscious activity. . .arising immediately upon confrontation with a certain stimulus.” (Wolman 1973)
  64. 64. Competition between the pleasure principle and the reality principle (Freud 1911)
  65. 65. Impulsive behaviors usually coexist (Petry 2000)
  66. 66. Three factors consistent in major impulsivity scales: Impulse control, novelty seeking & time orientation
  67. 67. Other factors include orientation to the present, inability to delay gratification, lack of inhibition, risk taking, sensation seeking, boredom proneness, reward sensitivity, hedonism, poor planning
  68. 68. Impulse gratification is often an attempt at affect regulation (Tice 2001)
  69. 69. Moderated by belief that giving into the impulse will change their mood</li></ul>John Dinsmore,, Slide 16<br />
  70. 70. Psychology: General Impulsivity<br /><ul><li>Fishbein’sTheory of Reasoned Action (Ajzen and Fishbein 1977) where an individual complies with normative pressures on behavior
  71. 71. Gray (1972, 1981) Theory of Brain Functions & Behavior
  72. 72. Two dimensions of personality: anxiety (BIS) and impulsivity (BAS)
  73. 73. Reward seeking, goal-directed
  74. 74. Affective response to cues of impending reward
  75. 75. No consensus in how to measure BIS and BAS in people (Carver 1994)
  76. 76. Ego Depletion (Baumeister 1998)
  77. 77. Distress spurs cognitive process, diminishing regulatory resources (Clore, Schwartz, Conway 1994)</li></ul>John Dinsmore,, Slide 17<br />
  78. 78. Neurology: General Impulsivity<br /><ul><li> Separate neural systems value immediate and delayed monetary rewards (McClure 2004)
  79. 79. Immediate rewards processed by limbic system (also distributes dopamine)
  80. 80. Delayed rewards processed by prefrontal cortex and parietal cortex
  81. 81. Dopamine Study on Impulsivity (Holman 2009)
  82. 82. Trial of drug Pramipexole for Fibromyalgia
  83. 83. Of the 1356 people in trial,
  84. 84. 21 (18 women, 3 men) were identified with compulsive gambling, shopping or both</li></ul>John Dinsmore,, Slide 18<br />
  85. 85. Impulse Control Disorders: Compulsivity<br />“Compulsions are ‘repetitive and seemingly purposeful behaviors that are performed according to certain rules or in a stereotyped fashion.” (APA 1985)<br /><ul><li> Excessive, ritualistic, repetitive, irresistible
  86. 86. Acts hoped to alleviate tension, anxiety or discomfort aroused by obtrusive thought or obsession.
  87. 87. At early stage, provides relief from stress (Salzman 1981)</li></ul>John Dinsmore,, Slide 19<br />
  88. 88. Impulse: Impulse/Compulsivity Continuum<br />Repetition: High<br />Regulation Function: Low<br />Fantasizing: Frequent<br />Priorities: Fluid<br />Affect: Volatile<br />Cognition: Impaired<br />Long-Term Consequences: Negative<br />Dysfunctional State<br />Compulsion<br />Addiction<br />Impulse<br />Spontaneous mental call to action marked by some sense of urgency<br />Impulse Purchase<br />Repetition: Low<br />Regulation Function: Normal-High<br />Fantasizing: Low or Isolated<br />Priorities: Consistent<br />Affect: Consistent<br />Cognition: Normal<br />Long-Term Consequences: Negligible to Positive<br />Functional State<br />John Dinsmore,, Slide 20<br />
  89. 89. Impulse Control: Compulsive Shopping<br /><ul><li> Influenced by both low (boredom) and high (stress, excitement) levels of arousal (Miller 1980)
  90. 90. Seen in other compulsive behaviors as well—drugs, alcohol, gambling (Segal 1976)
  91. 91. Most consistent finding across compulsive behaviors is low self esteem (Marlatt et al 1988)
  92. 92. Compulsive buyers buy for the buying process itself (O’Guinn & Faber 1989)</li></ul>John Dinsmore,, Slide 21<br />
  93. 93. Impulse Control: Compulsive Shopping<br /><ul><li>O’Guinn Study (1989)</li></ul>John Dinsmore,, Slide 22<br />
  94. 94. Impulse Control: Obesity<br /><ul><li> Obese do not experience physical hunger (aka ‘gastric motility’) more than anyone else (Stunkart 1959)
  95. 95. Non-obese identify hunger correctly 71.6% of the time, non-obese 47.6% of the time
  96. 96. Obese and normal subject do not refer to same bodily state when they say hunger
  97. 97. Clock experiment (Schachter, Goldman, Gordon, 1968)
  98. 98. Obese patients ate as much, sometimes more when they were full (p<.05)
  99. 99. Obese patients responded to time of day
  100. 100. Yom Kipur Experiment (Goldman, Jaffa and Schachter 1968)
  101. 101. 296 Practicing Jewish College Students
  102. 102. 83.3% of obese students fasted
  103. 103. Correlation of hours in synagogue to perceived unpleasantness of fasting: -.50 (P=.03)
  104. 104. 68.8% of non-obese fasted
  105. 105. Correlation of hours in synagogue to perceived unpleasantness of fasting: -.18 (P=.03)</li></ul>John Dinsmore,, Slide 23<br />
  106. 106. The Trouble With Impulse<br /><ul><li> Treated uni-dimensionally and with inconsistent definition (Moeller et al. 2001)
  107. 107. Impulsivity measures are highly subjective and “treat impulsivity as a global, undifferentiated concept.” (Carrillo-de-la-Pena et. al., 1993)
  108. 108. There is no accepted definition or measure of impulsivity and is “likely best treated as a multi-dimensional construct” (Harmstead & Lester, 2000)</li></ul>John Dinsmore,, Slide 24<br />
  109. 109. The Trouble With Impulse: Scales<br /><ul><li> 16PF Impulsivity Scale
  110. 110. Barratt Impulsivity Scale*
  111. 111. Carver and White (1994) BIS/BAS Scales
  112. 112. CloningerScale
  113. 113. EASI-III Impulsivity Scale
  114. 114. Eyesenckand Eyesenck (1978) Subcomponents of Impulsivity
  115. 115. GZTS Restraint, Thoughtfulness and General Activity Scales
  116. 116. I-5 & I-7 Impulsivity Scale
  117. 117. Kagan’sMathcing Familiar Figures Test (1966)
  118. 118. Patton, Stanford & Barratt (1995), Three Main Subtraits of Impulsiveness
  119. 119. PRF Impulsivity Scale
  120. 120. Quilty& Oakman’s Assessment of Behavioral Activation (2003)
  121. 121. Sensation Seeking Scale*
  122. 122. The SSS MMPI Items
  123. 123. Torrubia, Ávilab, Moltóband Caseras: Sensitivity to Punishment/Reward Scales
  124. 124. Whiteside & Lynam (2001) Four Factors of Impulsivity</li></ul>John Dinsmore,, Slide 25<br />
  125. 125. The Trouble With Impulse: Scales<br /><ul><li> Scales for Purchasing Impulsivity
  126. 126. Puri1986
  127. 127. Rook and Fisher 1995
  128. 128. Rook and Gardner 1993
  129. 129. Weunet al. 1998
  130. 130. Trouble-shooting these scales
  131. 131. Impulsive behavior can be the result of:
  132. 132. being too impulsive
  133. 133. having too little inhibition
  134. 134. both
  135. 135. Gray argued there are multiple types of impulsivity (Gray 1983)</li></ul>John Dinsmore,, Slide 26<br />