The document discusses impulse buying behavior. It outlines the broad and specific objectives of the project which are to understand impulse buying behavior and determine the factors affecting such behavior. It also discusses the implications for management, concluding that impulse buying is a common method of product selection and is not always irrational, but sometimes a rational response to environmental complexities. Stores should create stimulating environments to induce impulse purchases.

1. THE ENIGMA OF IMPULSE BUYING
GROUP MEMBERS:
AMITANSHU SRIVASTAVA ALOK KUMAR
ANAND KUMAR ABHISHEK DHAL
MUNMUN

2. Discussion Outline

3. Discussion Outline

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. 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. Discussion Outline

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. Discussion Outline

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. 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. Discussion Outline

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. 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. Cluster Analysis
Cluster 1 65.000
2 52.000
3 33.000
Valid 150.000
Missing .000

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. 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. Quite often I regret after buying new things.
4%
21%
17%
Strongly Disagree
Disagree
5%
Can't Say
Agree
Strongly Agree
53%

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. Scree Plot

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. 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. 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. 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. 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. Discussion Outline

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. 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. Discussion Outline

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. 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. Discussion Outline