Impulse purchase

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In the field of consumer behavior, an impulse purchase or impulse buying is an unplanned decision by a consumer to buy a product or service, made just before a purchase. [1] One who tends to make such purchases is referred to as an impulse purchaser, impulse buyer, or compulsive buyer. Research findings suggest that emotions, feelings, and attitudes play a decisive role in purchasing, [2] [3] triggered by seeing the product or upon exposure to a well crafted promotional message. [1]

Contents

History

The original definition of an "impulse purchase" was a purchase that unplanned by the consumer that came out of the DuPont Consumer Buying Habits Study that occurred from 1948 to 1965. The definition of impulse buying was then updated, referring to the intense urge that a consumer feels when they want to buy an item right then, often causing cognitive dissonance for the consumer. This changed the focus of definition from the product to the consumer. [4] From there, it has been expressed that impulse purchases are the result of one's own need to satisfy their wants in competition with their own rational and self-regulatory ideologies. [5] An increase in impulse purchases has also been linked to the rise of materialism, which often causes people to splurge or make uninformed purchases. [6]

Types of impulse purchases

In his article titled, The Significance of Impulse Buying Today, Sid Hawkins Stern describes the four different types of impulse purchases that can be seen. The first is called "Pure Impulse Buying" where the consumer breaks their normal pattern of consumption. The next is called "Reminder Impulse Buying," which is when a consumer forgets to add an item to their shopping list, and when they see the item in the store, they remember that they need the item and purchase it. The third type of impulse purchase is "Suggestion Impulse Buying" where a consumer sees a product they have never seen before, and convinces themselves that they need the item even though this is their initial encounter with it. The last type of impulse purchase that Stern includes is "Planned Impulse Buying." This type of impulse buying occurs when a consumer goes into a store with certain items in mind, but is waiting for deals to entice them to make the purchase. [7]

Psychology behind impulse purchases

Impulse buying disrupts the normal decision making models in consumers' brains. The logical sequence of the consumers' actions is replaced with an irrational moment of self gratification. Impulse items appeal to the emotional side of consumers. Some items bought on impulse are not considered functional or necessary in the consumers' lives. Preventing impulse buying involves techniques such as setting budgets before shopping and taking time out before the purchase is made. [8]

Research findings

In a study done by Mattila and Wirtz in 2008, they found that when a consumer perceives that their environment is over-stimulating, they are more likely to make an impulse purchase. [9]

In a recent study, Czrnecka, Schivinski, and Keles found that cultural values such as individualism and collectivism are determinants of impulsive buying and money budgeting. The researchers reported that different levels of globalisation in terms of global consumer culture influence proneness to impulsive buying and poor money budgeting. [10]

Vernon T. Clover found that impulse buying greatly impacts the sales of a store, and without the income that comes from impulse purchases, retailers, such as bookstores in Clover's study, would not be able to stay open. Because of this, Clover implored retailers to make impulse items more readily available for customers. [11]

In a study conducted in a collectivistic environment in 2023, Muhammad, Adeshola and Isiaku found that factors such as aesthetic appeal, scarcity promotions and discounted prices stimulate impulse buying behaviour on Instagram by Gen-Z. [3] Positive emotional responses evoked by these factors also influence impulse buying, whereas the impact of negative emotional responses is found to be insignificant.

A study published in the June 2008 issue of the Journal of Consumer Research suggests that consumers are more susceptible to making impulsive purchases for one brand over another if they are distracted while shopping. In the study, Central Michigan University Psychology professor Bryan Gibson surveyed college students by measuring their preference for a variety of soft drinks, including Coke and Pepsi. Results of Gibson's study found that implicit attitudes, or those that people may not be conscious of and able to verbally express, predicted product choice only when participants were presented with a cognitive task, suggesting that implicit product attitudes may play a greater role in product choice when the consumer is distracted or is making an impulse purchase. [12]

Researchers at the University of British Columbia and the Cheung Kong Graduate School of Business found that impulse spending is a behavior associated with disorganized environments. The study concluded that being surrounded by chaos impairs a person's ability to perform other tasks requiring ‘brain’ power, which results in a threat to a person's sense of personal control. [13]

Examples of impulse purchases

Marketers and retailers tend to exploit the impulsive shopping urge which is tied to the basic want for instant gratification. For example, a shopper in a supermarket might not specifically be shopping for confectionery. However, candy, gum, mints and chocolate are prominently displayed at the checkout aisles to trigger impulse buyers - and / or their children - to buy what they might not have otherwise considered. [14] Alternatively, impulse buying can occur when a potential consumer spots something related to a product that stirs a particular passion in them, such as seeing a certain country's flag on the cover of a certain DVD. Sale items are displayed in much the same fashion.

The Apple Macintosh 128K computer's graphical user interface was so innovative in 1984, and so compelling to consumers, that one dealer described it as "the first $2,500 impulse item". [15] Impulse buying can extend to other expensive items such as automobiles, couches, and home appliances. Automobiles in particular are as much an emotional purchase as a rational one. [16] This in turn leads auto dealers all over the world to market their products in a rapid-fire, almost carnival-like manner designed to appeal to emotion over reason.

See also

Related Research Articles

<span class="mw-page-title-main">Consumerism</span> Aspect of socio-economic order

Consumerism is a social and economic order in which the aspirations of many individuals include the acquisition of goods and services beyond those necessary for survival or traditional displays of status. It emerged in Western Europe before the Industrial Revolution and became widespread around 1900. In economics, consumerism refers to policies that emphasize consumption. It is the consideration that the free choice of consumers should strongly inform the choice by manufacturers of what is produced and how, and therefore influence the economic organization of a society.

Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media marketing communications for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.

<span class="mw-page-title-main">Pricing</span> Process of determining what a company will receive in exchange for its products

Pricing is the process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of the product.

<span class="mw-page-title-main">Consumer behaviour</span> Study of individuals, groups, or organisations and all the activities associated with consuming

Consumer behaviour is the study of individuals, groups, or organisations and all activities associated with the purchase, use and disposal of goods and services. It encompasses how the consumer's emotions, attitudes, and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, ethnology, marketing, and economics.

As part of consumer behavior, the buying decision process is the decision-making process used by consumers regarding the market transactions before, during, and after the purchase of a good or service. It can be seen as a particular form of a cost–benefit analysis in the presence of multiple alternatives.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

<span class="mw-page-title-main">Advertising management</span> Part of the advertising industry

Advertising management is how a company carefully plans and controls its advertising to reach its ideal customers and convince them to buy.

In marketing and consumer behaviour, brand loyalty describes a consumer's persistent positive feelings towards a familiar brand and their dedication to purchasing the brand's products and/or services repeatedly regardless of deficiencies, a competitor's actions, or changes in the market environment. It can also be demonstrated with other behaviors such as positive word-of-mouth advocacy. Corporate brand loyalty is where an individual buys products from the same manufacturer repeatedly and without wavering, rather than from other suppliers. In a business-to-business context, the term "source loyalty" may also be used. Loyalty implies dedication and should not be confused with habit, its less-than-emotional engagement and commitment. Businesses whose financial and ethical values rest in large part on their brand loyalty are said to use the loyalty business model.

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Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a vehicle or real estate.

<span class="mw-page-title-main">Visual merchandising</span> Marketing technique emphasizing 3D model displays

Visual merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the customer towards making a purchase.

Shopping addiction is characterized by an eagerness to purchase unnecessary or superfluous things and a lack of impulse control when it comes to shopping. It is a concept similar to compulsive buying disorder (oniomania), but usually has a more psychosocial perspective, or is viewed as a drug-free addiction like addiction to gambling, Internet, or video games. However, there is "still debate on whether other less recognized forms of impulsive behaviors, such as compulsive buying [...] can be conceptualized as addictions."

Consumer ethnocentrism is a psychological concept that describes how consumers purchase products based on country of origin.

Compulsive buying disorder (CBD) is characterized by an obsession with shopping and buying behavior that causes adverse consequences. It "is experienced as a recurring, compelling and irresistible–uncontrollable urge, in acquiring goods that lack practical utility and very low cost resulting in excessive, expensive and time-consuming retail activity [that is] typically prompted by negative affectivity" and results in "gross social, personal and/or financial difficulties". Most people with CBD meet the criteria for a personality disorder. Compulsive buying can also be found among people with Parkinson's disease or frontotemporal dementia.

Brand awareness is the extent to which customers are able to recall or recognize a brand under different conditions. Brand awareness is one of two dimensions from brand knowledge, an associative network memory model. It is a key consideration in consumer behavior, advertising management, and brand management. The consumer's ability to recognize or recall a brand is central to purchasing decision-making because purchasing cannot proceed unless a consumer is first aware of a product category and a brand within that category. Awareness does not necessarily mean that the consumer must be able to recall a specific brand name, but they must be able to recall enough distinguishing features for purchasing to proceed. Creating brand awareness is the main step in advertising a new product or bringing back the older brand in light.

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Customer experience, sometimes abbreviated to CX, is the totality of cognitive, affective, sensory, and behavioral customer responses during all stages of the consumption process including pre-purchase, consumption, and post-purchase stages.

A consumer-brand relationship, also known as a brand relationship, is the relationship that consumers think, feel, and have with a product or company brand. For more than half a century, scholarship has been generated to help managers and stakeholders understand how to drive favorable brand attitudes, brand loyalty, repeat purchases, customer lifetime value, customer advocacy, and communities of like-minded individuals organized around brands. Research has progressed with inspiration from attitude theory and, later, socio-cultural theories, but a perspective introduced in the early 1990s offered new opportunities and insights. The new paradigm focused on the relationships that formed between brands and consumers: an idea that had gained traction in business-to-business marketing scholarship where physical relationships formed between buyers and sellers.

Hunger marketing is a marketing strategy that targets the emotions of human beings. The essence of hunger marketing is artificially low price and/or restricted supply.

Consumer value is used to describe a consumer's strong relative preference for certain subjectively evaluated product or service attributes.

References

  1. 1 2 "What is impulse buying?". Businessdictionary.com. Retrieved 2011-12-22.
  2. ↑ Czarnecka, Barbara; Schivinski, Bruno (2019-08-08). "Do Consumers Acculturated to Global Consumer Culture Buy More Impulsively? The Moderating Role of Attitudes towards and Beliefs about Advertising". Journal of Global Marketing. 32 (4): 219–238. doi:10.1080/08911762.2019.1600094. ISSN   0891-1762. S2CID   182181403.
  3. 1 2 Muhammad, Abubakar Sadiq; Adeshola, Ibrahim; Isiaku, Labaran (2023-09-14). "A mixed study on the "wow" of impulse purchase on Instagram: insights from Gen-Z in a collectivistic environment". Young Consumers. 25: 128–148. doi:10.1108/YC-04-2023-1728. ISSN   1747-3616.
  4. ↑ Rook, Dennis W. (1987). "The Buying Impulse". Journal of Consumer Research. 14 (2): 189–199. doi:10.1086/209105. ISSN   0093-5301. JSTOR   2489410.
  5. ↑ Zhang, Yinlong; Shrum, L. J. (2009). "The Influence of Self-Construal on Impulsive Consumption". Journal of Consumer Research. 35 (5): 838–850. doi:10.1086/593687. ISSN   0093-5301.
  6. ↑ Podoshen, Jeffrey S.; Andrzejewski, Susan A. (2012). "An Examination of the Relationships Between Materialism, Conspicuous Consumption, Undecided Purchase, Impulse Buying, and Brand Loyalty". Journal of Marketing Theory and Practice. 20 (3): 319–333. doi:10.2753/MTP1069-6679200306. ISSN   1069-6679. JSTOR   23243709. S2CID   154989526.
  7. ↑ Stern, Hawkins (1962). "The Significance of Impulse Buying Today". Journal of Marketing. 26 (2): 59–62. doi:10.2307/1248439. ISSN   0022-2429. JSTOR   1248439.
  8. ↑ Are you an impulse buyer? Archived 2015-08-28 at the Wayback Machine Accessed May 2010.
  9. ↑ Mattila, Anna S.; Wirtz, Jochen (2008-01-01). "The role of store environmental stimulation and social factors on impulse purchasing". Journal of Services Marketing. 22 (7): 562–567. CiteSeerX   10.1.1.582.5252 . doi:10.1108/08876040810909686. ISSN   0887-6045.
  10. ↑ Czarnecka, Barbara; Schivinski, Bruno; Schivinski, Sarap (2020). "How values of individualism and collectivism influence impulsive buying and money budgeting: the mediating role of acculturation to global consumer culture". Journal of Consumer Behaviour. 19 (5): 505–522. doi:10.1002/cb.1833. ISSN   1479-1838. S2CID   218924348.
  11. ↑ Clover, Vernon T. (1950). "Relative Importance of Impulse-Buying in Retail Stores". Journal of Marketing. 15 (1): 66–70. doi:10.2307/1247083. ISSN   0022-2429. JSTOR   1247083.
  12. ↑ Study Shows Consumers May be Swayed by Distraction Newswise, Retrieved on July 16, 2008.
  13. ↑ Veronica Cruz Impulse spending reduced if you get organized Market Business News, Retrieved on February 12, 2014.
  14. ↑ "Tempting Shopping, Children and Impulse Buying - David Vernon, March 2007". Kindredcommunity.com. Archived from the original on 2016-07-10. Retrieved 2011-12-22.
  15. ↑ Richter, Paul (1984-03-28). "Macintosh Takes Lead In Sales Race". The Cincinnati Enquirer. Los Angeles Times. pp. B-1, B-2. Retrieved 2019-05-05.
  16. ↑ Eagle, L.; Czarnecka, B.; Dahl, S.; Lloyd, J. (2021). Marketing communications (Second ed.). Abingdon, Oxon: Routledge. ISBN   978-1-003-08929-2. OCLC   1149246969.
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