Understanding & Researching Consumer Buyer Behaviour - Essay Example

Understanding & Researching Consumer Buyer Behavior For the last half century, researchers in consumer behaviors have attempted to create a comprehensive definition of impulse buying. The earliest studies conducted on the subject stemmed primarily from the retailer and managerial interests. Marketing researchers in this vein place their emphasis on the taxonomic system of classifying products into either non-impulse or impulse products so as to enable marketing strategies, for instance, point of purchase advertising, in-store promotions or merchandising (Hulten and Vanyushyn 381). However, it is vital to take note that local market situations, exchange systems, as well as certain cultural aspects, play a significant role in how consumers perform impulse behaviors. This paper will examine the nature of impulse buying, describing the how marketers can incorporate knowledge of customers’ impulse buying tendencies to their marketing strategies. Nature of Impulse Buying Behavior Impulse buying is essentially unreflective behavior that fails to conform to the rational, well-thought decision making standpoint in terms of consumer buyer tendencies or actions. The process of impulse buying is an extremely complex goal process that centers on reaction and emotion as its primary driving forces. This is largely because consumers engage in the process of impulse buying without engaging in concrete thoughts regarding their actions or conducting an evaluation of their intended deeds. According to Rook (116) consumers engaging in impulse buying are unlikely to consider the implications or think carefully and logically prior to making the purchase. The attention of such consumers is channeled towards the immediate gratification inherent in responding to the desire or urge to make the purchase instead of identifying and solving a preexisting issue or finding a product to fulfill a predetermined need. In addition, consistent with other forms of impulsiveness, impulse buying is also immediate, meaning that the process occurs in the span of several minutes and is not premeditated. Impulse Buying Behavior After the year 1982 when marketing researchers started to re-focus their attention on impulse buying actions, marketers started to ponder over the behavioral dimensions inherent in impulse buying. However, recently marketers appear to believe that impulse buying involves both affective and hedonic components. For instance, in his researcher, Rook (89) provided the assertions of consumers who reported that they felt the products “calling” them nearly demanding that the consumers purchase the products. This indicates on intense emphasis on the behavioral aspect of impulse buying, which, in turn, resulted in the definition of impulse buying as behavior that takes place when consumers experience sudden urges, usually persistent and powerful to purchase something instantly. The urge or purchase is hedonically intricate and has the potential of stimulating emotional conflict. Furthermore, impulse buying typically occurs with diminished consideration of its consequences (Rook 191). There are essentially five critical aspects embedded in impulse buying. These elements include a spontaneous and sudden urge to act; the action in this sense being the urge to make a purchase. Secondly, impulse buying also involves a position of psychological disequilibrium whereby a consumer’s emotions are in disarray concerning the act of making a purchase. Thirdly, impulse buying involves the emergence of psychological struggle and conflict as consumers struggle with the urge to buy on impulse. Furthermore, impulse buying entails a dramatic reduction in the consumer’s cognitive evaluation abilities. This reduction is what forms the urge to make an instant purchase without taking into consideration the immediate or long term implications of such purchases (West 363). Lastly, impulse buying also involves a complete disregard for the implications of such buying behavior. This is perhaps part of the most astonishing features of impulse buying behavior. Although a consumer with impulse buying behaviors may consider an impulse purchase as adverse and successfully defy the urge, at other times such a person is immensely likely to rationalize the destructive feelings and still make the purchase. This shows that, while impulsive shoppers may ponder on the purchase through a cognitive mechanism, at some instance in their decision making process, their affective state will overwhelm their cognitive willpower. This understanding affirms the findings of a study that concluded that, while cognitive deliberation plays a pivotal role in an impulse buyer’s decision, its influence is relatively minimal compared to the affective state (Mowen and Minor 399). At present, marketers appreciate the existence of various forms of impulse buying behavior. These forms of impulse buying include pure, reminder impulse, impulse, planned impulse and suggestion impulse. Pure impulse buying typically occurs when a consumer sees a brand or product, and at the same moments feels an irresistible urge to buy the product and own it. For instance, a consumer at an apparel shop may see a recognized brand, for instance, Gucci and immediately feel a strong urge to own the product. On the other hand, reminder impulse buying takes place when a consumer remembers the need to purchase a product upon seeing the item. Conversely, suggestion impulse buying happens when a shopper takes note of a product for the initial time and visualizes a deep need for it (Silvera and Lavack 28). This means that, in suggestion impulse buying, the consumer has no previous knowledge of the item to facilitate the purchase. Lastly, planned impulse buying occurs when consumers do their planned shopping and decide to purchase products that attract them, particularly with regard to the price or brand. This is where marketing strategies come in playing a vital part in influencing impulse buying behavior or take advantage of shoppers’ impulsive tendencies. Marketers should understand consumer purchasing behaviors so as to establish appropriate marketing strategies that maximize the benefits of impulse buying behaviors. Notably, while a vast majority of impulse purchases occur on inexpensive product offerings, the purchase of expensive items is indicative of an inherent personality trait. Marketing typically focuses on influencing consumer purchasing behavior. Marketing strategies and technologies such as new geo-targeting technologies, merchandising and personalized pricing offers among others have a profound effect on influencing impulse purchasing behavior (Spears 59). Consumers are the primary focus of organizations that sell to consumers. In order for such organizations to be successful, they need to appreciate consumer purchasing behavior, for instance, what they purchase, how, when and why they buy. Impulse buying presents organizations with immense business opportunities. Currently, approximately 40% of all purchases occur through impulse buying. This includes purchases made through Internet e-commerce sites and stores. This phenomenon is particularly high for grocery stores 60% of whose sales occur from impulse purchases. This is primarily because grocery stores and chains have mastered the art of using promotional and in-store strategies to optimize shoppers’ impulse buying tendencies. Similar to other consumer purchasing processes, impulsive purchasing is also influenced by a myriad of things, which include promotional activities, both cultural and social influences, as well as the atmosphere of the store or e-commerce site experiences. However, one prominent factor stands out above the rest in terms of influencing impulse purchasing behavior among consumers. This factor centers primarily on the viewpoint of low pricing. Marketing research studies show that a vast majority of impulse purchases occur as a consequence of the perception of lower prices both in physical and online stores. Marketers can make use of lower pricing strategies to attract impulse purchasers to make purchases. This primarily centers on the premise affirmed by Hulten and Vanyushyn (378) that consumers make use of mental accounting during their shopping endeavors. Whenever consumers come across unexpected savings, positive emotional responses ultimately take place. Not only are consumers likely to purchase the product associated with the unexpected savings, they become exceedingly willing to consider purchasing other items, as well. This essentially means that low pricing strategies create the illusion of income, which, in turn, appeals to consumers who experience notions of psychological income. The unexpected saving creates additional income in the minds of consumers, and they can, therefore, spend this windfall on other unplanned purchases. In order to produce the sense of psychological income, a business can use clearance and sales promotions, which are not specifically advertised. The stores can also utilize coupons within the stores, which are aimed at being used as part and parcel of the shopping visit. A grocery store, for instance, can use personalized pricing in its pricing strategy to give offers to consumers whilst they do their shopping. This strategy can allow the store to offer real time offers, as well as personalized pricing for items while a consumer is passing in front of an item. Geo-targeting marketing as a technology has immense potential to increase the incident of impulse buying of a product rather significantly (Solomon 412). Additionally, the unexpected savings also enhance the likelihood of a shopper making other unplanned purchases, as well. Retailers can, therefore, utilize the modern consumer shift to mobile devices as a strategy to enhance impulse sales. The business implications of impulse buying are quite evident. Therefore, businesses aiming at promoting impulse buying should establish an atmosphere in which consumers can get relived of their inherent adverse perceptions regarding impulse buying. An organization can start by stressing the relative rationality of impulse purchasing through its advertising endeavors. Furthermore, such an organization should lay emphasis on the non-economic incentives of impulse buying. For instance, a business can make its atmosphere extremely complex, additionally straining consumers’ capacities to process data in an accurate way. This strategy can encompass techniques such as creating impulse stimulating atmospherics, stocking high merchandise levels and enhancing information vital in stimulating impulse buying. Stern (58) posits that businesses essentially need to make impulse buying risk-free, via convenient return policies or increase the number of impulse enablers such as store and credit hours. Significantly, such a model produces options for consumers to take charge of their buying impulses or feel good about their buying tendencies by doing away with their negative perceptions towards impulse. In order for businesses to maximize on and promote impulse buying, they should put emphasis on needs rather than wants and highlight that impulse buying does not adversely affect shoppers’ budgets over time. A business can also create a store atmosphere that dazzles consumers allowing them to lose control of their logical buying tendencies. Flexible payment options are also crucial in optimizing shoppers’ impulse buying tendencies. For instance, certain shoppers may be low on cash in their wallets or leave their credit cards at home. Therefore, flexible payment options such credit sales to well known customers may prove beneficial to an organizations’ bottom line. Stores should demonstrate that the item on offer will not last till the next day before consumers realize that these deals will occur on a regular basis. Therefore, a business should stress the emotional element of owning the product. In essence, businesses need to put additional emphasis on messages capable of making consumers aware that impulse buying is not negative behavior. According to Stern (53), once consumers appreciate that products are more than items, and they are making the purchases to fulfill their desires, they will feel comfortable with impulse buying decisions. The primary purpose of analyzing consumer impulse behavior to create an intricate understanding of the factors that influence impulse behavior among consumers. These factors are grouped as personal and environmental factors. Environmental factors and, which stores have the greatest control over include shelf location, store atmosphere, packaging, color, scent and image of the item. On the other hand, personal factors include people’s desires to demonstrate their own identities, moods; need to cope with tension and the desire for consumers to reward themselves. In addition, personal factors that also influence impulse purchases include needs for socialization within the store environment or the conduct of shopping as a hobby and lack of control over one’s buying behavior (Dawson and Kim 238). Point of sale stimuli such as display and visual shows; appealing scents and music and material in the store affect consumers’ moods urging them to make impulse purchases. For instance, the effective placement of product such as cosmetics, candy, chewing gum and oral heal items near checkout stations enhances consumers’ impulse buying tendencies. In addition, to efforts of retailers, increasing numbers of TV shopping channels, new technologies and e-commerce also induce consumers to buy on impulse. The examination of personal factors indicates that consumers’ moods are quite vital to their impulse buying tendencies. For instance, the likelihood of a person making an impulsive purchase increases if the person is stressed, depressed or happy. This means that extreme levels of elation and desolation significantly influence impulse buying behaviors. Additionally, consumers’ desires to reward themselves increase self confidence or extreme socializing results in impulse buying. In a study conducted by West (363), the researcher found that impulse buying behaviors influenced by personal factors are often attempts to enhance personal ego. When Dawson and Kim (239) studied impulsive buying behavior in respect to characteristic, they noted that people who make excessive impulse purchases typically have a poor autonomy, as well as consciousness. However, these people often have powerful external relations, as well as profiles, focused intently on excitement. In addition to the aforementioned personal factors, consumers often prefer impulsive buying to simplify the process of buying. On certain occasions, consumers do not attempt to make satisfactory and beneficial choices, but rather just make sufficient satisfactory choices, although these may not optimum for the consumers. In essence, this means that consumers make their choices with the least possible contributions. Save for these factors, situational factors such as the presence of a shopping partner or limited shopping time may also influence consumers to make impulse purchases. Impulse buying increases relative to the increase of shopping time (Silvera and Lavack 30). Therefore, for example, a store can provide consumers with appealing environmental motivators that allow the store’s shoppers to last for prolonged periods in the stores thereby facilitating impulse buying. In addition, stores can make their environments complex through stocking high volumes of merchandise, creating intricate store layouts, establishing stimulating atmospherics and enhancing information vital in stimulating impulse buying. Shopping with a partner enhances impulse buying, primarily as a consequence of the cultural structure in which consumers live. For example, impulse buying behaviors are quite intense among consumers who live within individualistic societies and collective ones where people are loyal to socially established norms. Previous research conducted by Mowen and Minor (356) indicates that impulse buying is highly prevalent in individualistic societies compared to collective societies. The use of credit cards as situational factors induces impulse buying behaviors. Credit card-owning consumers are more likely to buy items on impulse than those without credit cards. This assertion is supported by studies, which indicate that the use of credit cards increases the likelihood of consumers engaging in impulsive buying behaviors. In conclusion, marketers, as well as businesses need to take note of the economic viability of consumers’ impulse buying behaviors. Available literature indicates that, at present, impulse buying produces at least $4 billion in terms of annual sales volumes within the US, which is the world’s largest economy. Following the growth experienced in e-commerce, as well as the incident of television shopping channels, consumers have high access to opportunities that enhance their impulse buying behaviors. However, marketing researchers appreciate the need to conduct additional research on the compelling and hedonically intricate buying behavior. Hulten and Vanyushyn (379) posit that retail store image influences consumer cognition. The researchers affirm that retail store image, which is a vital component of impulse buying behavior, refers to a person’s cognitions inferred from standpoints or memory contributions attached to certain stores and which represent what such stores signify to the individuals. Works Cited Dawson, S. and Kim, M. "Cues on Apparel Web Sites That Trigger Impulse Purchases." 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