Analyzing Consumer Impulse Purchasing Behaviour Using Observational Data

Analyzing Consumer Impulse Purchasing Behaviour Using Observational Data

Yuliia Kyrdoda (Mediterranean Agronomic Institute of Chania, Chania, Greece), George Baltas (Athens University of Economics and Business, Athens, Greece) and A.Malek Hammami (University of Nebraska-Lincoln, Lincoln, USA)
DOI: 10.4018/IJFBMBM.2018070102

Abstract

This article identifies consumers' impulse purchasing behavior in supermarkets. The study includes an interpretation of the impulse decision relationship with the final purchase and an analysis of the distribution of impulse purchasers' demographic characteristics (age and shoppers' company). SPSS was used to analyze the observed data at a national retail supermarket chain. The logistic regression model was developed in order to identify the explanatory power of the variables. Categorical principal component analysis was employed to analyze the distribution of the variables. Empirical findings indicated that “impulsive decision” has a stronger intensity on “purchase” than “gender” does. Impulsive customers are split into three age groups and two company categories. These results could be used to design marketing strategies in order to increase sales. However, a few limitations occurred during the study such as: observation timing, unicity of location and observers' subjectivity.
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Theoretical Background

Impulse Purchase Behaviour

Impulse buying is a popular behavior today. The recent researches of Consumer Buying behavior show that 40% of consumer spending is made impulsively. Despite the significance of this category, it is still difficult to define.

Researches explaining reasons for impulse purchases began appearing by the end of the 1940s. At the time, it was determined as a marketing phenomenon by Clover (1950) who mentioned that impulse buying is unplanned purchase behavior and depends on the product category.

The field of consumer impulse purchasing behavior was analyzed by different researchers (Applebaum (1951), Stern (1962), Kollat and Willett (1967), McNeal (1973), Rook and Hock(1983), Hoch and Loewenstein (1991), Kacen and Lee (2002), Karbasivar and Yarahmadi (2011), Cheng et al (2013)). Nevertheless, the question of how to distinguish impulse purchase among others still needs an answer.

Based on the research of consumer products giant Procter&Gamble Co, the first three to seven seconds are the most critical in the decision-making process. The “First moment of truth”, as marketers call this phenomenon, determines the significance of the first seconds when consumers choose exactly what products they will purchase (Nelson and Ellison, 2005).

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Materials And Methods

Objectives

The general objective of this research is to emphasize the relationship between final purchase and critical factors that may influence it. Two main objectives will be reached:

  • To measure the influence of “Gender” towards “Final purchase”

  • To measure the influence of “Impulse decision” towards “Final purchase”

  • To explain “Age” and “Company” distributions of the impulsive purchasers, as demographic characteristics

Theoretical Framework

Based on the theoretical review above, the following framework provided the model for further research, as depicted in Figure 1.

Figure 1.

Theoretical Framework

IJFBMBM.2018070102.f01

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