New Format Retailing - Assignment Example

Consumer impulse buying behavior refers to the impulse buying behavior of the individuals and households who buy the goods and services for personal consumption. This behaviour then affects how products and services given to the different consumer markets while there are many components that influence consumer behaviour namely: cultural, social, personal and psychological. The companies cannot control these characteristics; therefore, a need to assess these elements in order to create an effective marketing plan. Consumers can be either subjective or objective, testing the persuasiveness of brand names. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers' personality, social status or affiliation (symbolic purposes) or to fulfil their internal psychological needs, such as the need for change or newness (emotional purposes). These are just some of the factors that affect consumer behaviour. Introduction Background of the Study Consumers can be either subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales women or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers' personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (Kim et al, 2002). These are just some of the factors that affect impulse buying behavior. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc. Purpose of the Study Generally, the purpose of the research is to conduct an experimental study to impulse buying behaviour of consumers and self-control. The study will also perform phenomenological approach of survey with succeeding thematic analysis of the texts from which the researcher could gather facts and empirical data from the academe. Aims and Objectives The main objectives of this study are to examine the aspects that influence impulse buying behaviour of consumers and their self-control. Hypotheses The impulse buying behaviour of consumers is influence by beliefs, culture, learning and values. That is regulated by self-control Method Research Design Although the study is primarily interested in examining qualitative concepts and constructs such as beliefs, attitudes and perceptions, the quantitative research approach was likewise utilized to achieve the exploratory and the descriptive objectives of the study, which highlighted the consumers' perspective about the issue of impulsive buying behavior. According to Mays and Pope (2000), the quantitative research approach is most appropriate when conducting descriptive and exploratory study in order to quantify data that seem immeasurable, such as feelings, beliefs, and thoughts. This permits a flexible and iterative approach of analyzing and statistically manipulating the collected information. As such, these variables were presented, explained and correlated with each other and with the qualitative results of the second phase of the research project. Moreover, the study also examined the conditions and the nature that surrounds the quantitative data to achieve the descriptive objectives of the study. Participants For this particular research activity, the survey method was planned to accomplish a desired sample size of 100 consumers as respondents. To ensure that the survey will produce 100 valid and reliable survey outputs, 40 more respondents were asked to participate, adding 10 more respondents to each selected district. This totalled to 140 survey respondents who filled out the survey questionnaires. However, out of the 140 total number of surveys collected, there was a non-sampling error of 6% resulting in 132 usable survey outputs for subsequent analysis. The succeeding table presents the accumulated sample size by computing for the desired sample using the stratified sampling technique. Sampling Technique The stratified and non-random convenience sampling techniques were utilized to ensure the representativeness of the respondents of the survey method. These sampling techniques ensure the reliability of the data based on the proportional population of the identified strata which, in this case, were distinguished by geographic location. Stratified sampling technique operates by selecting samples in such a way that specific sub-groups or strata will have a sufficient number of representatives within the sample to provide sample numbers for the sub-analysis of the members of these subgroups (Vockel, 1983). As such each stratum was computed for the specific percent share to determine the proportional number of samples that will represent each group classification. Materials (How the variables were measured, any apparatus used) Survey questionnaire. The questionnaire underwent a series of drafts and revisions which were all submitted to the research adviser/supervisor for verification purposes. The questionnaire for this study consists of four sections: Demographic - to identify the characteristics of the respondents Close-ended questions - to research the significance of the 3 identified determinants, including snacking habits, self-control brief, and impulse tendency. Open-ended questions - to find out the individual deference in self-regulation orientation in impulse buying behavior and look into the psychological factors to gain a better understanding of people with high/low impulse buying tendency. Procedure Statistical Treatment For the quantitative data analysis of the variables of the study, descriptive statistics were primarily used so as to present descriptions in manageable forms. As such, univariate analysis which involves the evaluation of different cases of a specific variable for a specific period of time (Lane, 2003) was incorporated through statistical tools in the form of the frequency distribution. The measures of central tendency: (a) mean, (b) median, and (c) mode is an estimate of the "center" of a distribution of values. It is the distribution or summary of the number of occurrence of individual values or ranges of values for a variable (Price, 2000). To compute the mean all the values are added up and divide by the number of values. The median is the score found at the exact middle of the set of values while the mode is the most frequently occurring value in the set of scores (Trochim, 2002). Percentage - to determine the magnitude of the responses to the questionnaire n % = -------- x 100 ; N n - number of responses N - total number of respondents However, the exploratory approach of the study likewise entailed a thorough examination of confounding and intervening variables that may directly or indirectly influence the variables being evaluated by the study. As such, correlation which involves the evaluation of different cases of two variables for a specific period of time was incorporated as a statistical tool for bivariate data analysis. According to Guilford and Fruchter (1973), the strength of the linear association between two variables is quantified by the correlation coefficient. Given a set of observations (x1, y1), (x2,y2),...(xn,yn), the formula for computing the correlation coefficient is given by: Where: = Correlation between X and Y = Sum of Variable X = Sum of Variable Y = Sum of the product X and Y N= Number of Cases = Sum of squared X score = Sum of squared Y score Moreover, the correlation coefficient always takes a value between -1 and 1, with 1 or -1 indicating perfect correlation (all points would lie along a straight line in this case). A positive correlation indicates a positive association between the variables (increasing values in one variable correspond to increasing values in the other variable), while a negative correlation indicates a negative association between the variables (increasing values is one variable correspond to decreasing values in the other variable). A correlation value close to 0 indicates no association between the variables. Since the formula for calculating the correlation coefficient standardizes the variables, changes in scale or units of measurement will not affect its value. For this reason, the correlation coefficient is often more useful than a graphical depiction in determining the strength of the association between two variables. In addition, if the correlation index of the computed rxy is not perfect, then it is suggested to use the following categorization (Guilford & Fruchter, 1973): rxy Indication between ' 0.80 to ' 1.00 : High Correlation between ' 0.60 to ' 0.79 : Moderately High Correlation between ' 0.40 to ' 0.59 : Moderate Correlation between ' 0.20 to ' 0.39 : Low Correlation between ' 0.01 to ' 0.19 : Negligible Correlation The Statistical Packages for the Social Sciences (SPSS) software program was used to run statistical tests on the data collected through the survey method. The answers of the respondents were first encoded and subsequent tests were applied to produce quantitative and descriptive data. The statistical analysis is conducted using Microsoft Excel where the quantitative data are tabulated and evaluated. The relationships of the variables were then analyzed and collated with other findings of the study. The extent and magnitude of the relationship between variables were presented for the systematic analysis of the collected information. The data and information gathered using the secondary data analysis were likewise used to support and rebut the claims of the study wherein critical examination and analysis of the findings were compared and contrasted with each other. Results Socio-demographic Characteristics of the Respondents In order to have a general idea on the general social and economic characteristics of the respondents, the data and discussion provided in this section of the results and findings of the study presents the details of the overall description of the sample population. Sex. The results of the study indicated that from the total number of respondents who completed the survey forms, women have a higher proportion of claiming impulse buying behavior (56.3%) compared to the total number of men who claimed their impulse buying behavior (43.1%). Table 2. Sex of the Respondents Sex Total (N) Percentage (%) Female 58 56.3 Male 45 43.7 N = 103 Age. Respondents who fall under the category of 20 to 29 years old (31.9%) claimed that they have engaged in the impulsive buying behavior (15 to 29 years old) indicated the greater percentage of such involvement (56.9%) compared to the older respondents (43.1%). Figure 1 indicates the complete details. It is interesting to mention that the respondents from the younger age category share have a high possibility of sharing the same social and economic status. These are students and young professionals who are enjoying their lack of serious familial and economic responsibilities. The Results of the Study Snacking Habits I do Frequently Level of Agreement Agree No Comment Disagree Total (N) 88 10 17 Percentage (%) 76.5 8.7 14.8 N = 115 I do automatically Level of Agreement Agree No Comment Disagree Total (N) 79 18 19 Percentage (%) 68.1 15.5 16.4 N = 116 I do and forget immediately about Level of Agreement Agree No Comment Disagree Total (N) 105 7 4 Percentage (%) 90.6 6.0 3.4 N = 116 that makes me feel weird if I don't do it Level of Agreement Agree No Comment Disagree Total (N) 76 23 17 Percentage (%) 65.5 19.8 14.7 N = 116 I start doing before I realize I'm doing it Level of Agreement Agree No Comment Disagree Total (N) 64 16 36 Percentage (%) 55.2 13.8 31.0 N = 115 I would find hard not to do Level of Agreement Agree No Comment Disagree Total (N) 65 13 37 Percentage (%) 56.5 11.3 32.2 N = 115 I do not even consider for a moment Level of Agreement Agree No Comment Disagree Total (N) 90 9 17 Percentage (%) 77.6 7.8 14.6 N = 116 that's typically "me" Level of Agreement Agree No Comment Disagree Total (N) 76 24 14 Percentage (%) 66.6 21.1 12.3 N = 114 I have been doing for a long time Level of Agreement Agree No Comment Disagree Total (N) 82 15 17 Percentage (%) 71.9 13.2 14.9 N = 114 How confident are you that this is a correct estimate' Level of Agreement Very Confident Somewhat confident Not at all confident Total (N) 73 17 25 Percentage (%) 63.5 14.8 21.7 N = 115 How many times during the last seven days (today included) did you eat a snack food item' Figure 1 Discussion According to the Journal of Real Estate Practice and Education: "Consumers purchase products and services for the benefits derived from their use. While the study of economics focuses on outcomes, impulse buying behavior emphasizes the process. Most consumers regard the purchase of real estate to be 'high involvement goods' that require complex decision-making,' in purchasing real estate, such as houses, apartments or units, consumers usually go through three key processes before they consider buying, and these are: information search, evaluation of alternatives and decision rules. Cynthia Huffman, S. Ratneshwar and David Glen Mick, emphasized "impulse buying behavior is best understood as problem-solving behavior." Impulse buying behavior related to certain motivational behaviors that aimed towards attaining a certain goal at the end. Goals, according to developmental psychologists are "cognitive representations of desired-end status which serve as standards in the control of behavior. Research on sensation and perception, attention, categorization, inference making, information search, memory, attitude and behavior, attitude formation and formation, conditioning and satisfaction have been undertaken to understand impulse buying behavior. In the area of sensation and perception and attention, most works are confined primarily to visual or auditory processes. Among the studies on this area include those of Russo and Leclerc (1994) who examined attention to packages on store shelves, as measured by eye fixations. As such, we first thought of the things that are needed for the occasion. Just like the list above, we defined the problems that we may encounter in the arrangements and preparations for the party and thought of ways to solve them by initiating back-up plans in case of unpredictable circumstances during the event. This is in terms of not only purchasing and availing the needed products and services but we likewise included all the immediate and emerging concerns for the celebration. Based on the integrated model, culture influences behavior through its manifestations: values, heroes, rituals, and symbols (Luna and Gupta, 2001). The combination of both etic and emic perspective on the manifestations, can basically reveal culture's strong relation with customer behavior. The etic philosophy is based on the definition of culture as "the collective programming of the mind which distinguishes the members of one group or category of people from another'' (Hofstede, 1997). On the other hand, the emic philosophy stresses upon understanding issues from the perspective of the subjects being studied (Luna and Gupta, 2001). As cited from McCracken (1988), this philosophy determines the coordinates of social action and productive activity, specifying the behaviors and objects that issue from both. Values are the basis of one's attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures. Luna and Gupta (2001) stated that heroes may influence impulse buying behavior through their association with certain products and brands. The same goes with rituals, or symbolic activities commonly performed repeatedly, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for impulse buying behavior. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc (Luna and Gupta, 2001 and Neumann and Sumser, 2002). This s evident in the theme we chose fro the party. Since my cousin is very fond of mysticism, spells and magic, the party was planned to enchant her guests. This is reflective of the heroes and preferences of my cousin in particular. Meanwhile, of all the components of a marketing plan, the most essential of all these elements but most often, the most overlooked is the definition of the target market (Kim et al, 2002). Yet, no one can proceed to a communication plan without answering the question of who do the company have to convince to buy the product or service. Market segmentation is the identification of subgroups within the total market that the company wants to target (Hofstede, 1997). This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants (Chow and Holden, 1997). Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. There are many components, which influence impulse buying behavior namely: cultural, social, personal and psychological (Kotler & Armstrong, 2001). The companies cannot control these characteristics; therefore, a need to assess these elements in order to create an effective marketing plan. Cultural factors include culture, subculture and social class, which all exert the broadest and deepest influence on buyer behavior. Culture is the most basic cause of the wants and behaviors of a consumer because it cultivates how a person chooses its values and learns its standards for achievement and success. On the other hand, subculture refers it the smaller groups of people who share the same value system and it can include nationalities, religions, racial groups and geographic regions. Many of these subcultures compose the important market segments for which products specifically designed and marketed (Kotler & Armstrong, 2001). The social classes are the divisions in a society composed of people who share similar values, interests and behaviors. These form the social class structure which exists in almost every society. It is not yet determined by a single component alone but a combination of different elements such as occupation, income, education, wealth and other variables (Russo and Leclerc, 1994). Social factors also influence impulse buying behavior. It includes the following: small groups, family, social roles and status. Groups are two or more people who interact in order to accomplish mutual goals. Usually, these groups have their own opinion leaders who are the members of a reference group that wields influence on others because of various reasons such as special skills, knowledge and personality. The next social factor is the family, which considered as the most important consumer buying organization in a society (Kotler & Armstrong, 2001). The last factors are roles and status. These factors refer to the positions held by each person in each of the groups he belongs to but they are completely different in definition. A role is composed of activities, which people expected to do in the group while status is the position, which goes along with a role that reflects the general esteem accorded by society (Kotler & Armstrong, 2001). Comparing a personal birthday celebration and the party I planned for my cousin, a lot will significantly be different primarily because I am much older than she is and I have set of friends who are obviously and completely different from her own. This emphasizes the different social roles that we play which distinctly identify the differing specifications we have for a birthday event. The third set of factors personal factors that are composed of different elements such as age and life cycle stage; occupation; economic situation; lifestyle and personality and self-concept. Customer preferences vary according age and the stages of life cycle that accounts for both traditional and non-traditional stages with the latter being increasingly catered to in order to accommodate alternative lifestyles. Occupation can also influence impulse buying behavior because different professions yield different interests in products and services (Kotler & Armstrong, 2001 and Muncaster, 1998). Another personal factor is the economic situation of the buyer because it determines if the consumer has enough spend able income, savings or buying power for the goods and services offered. Lifestyle is also an influence in buying behavior because it refers to the pattern of living - the measurement of AIO dimensions, which stand for activities, interests and opinions. Finally, personality and self-concept or self image; influence how consumers choose their products and services (Kotler & Armstrong, 2001 and Sturken and Cartwright, 2001). Conclusion This study found out that impulse buying behavior characterized bypsychological factors, which include motivation, perception, learning and attitudes and beliefs. Motivation or drive refers to an urgent need, which causes a person to seek satisfaction of the need (Kealey and Protheroe, 1996). The next psychological factor is perception, which is the process of selecting, organizing and interpreting information in order to form a meaningful picture of the world (Kotler & Armstrong, 2001). Another psychological factor, which influences impulse buying behavior, is learning. It modifies impulse buying behavior from the consumer's experience. If the experience of availing the service or product is rewarding, it is most likely that there will be repeat purchase until the consumer becomes loyal to the company. Consumers acquire beliefs and attitudes are acquired through learning and doing. Beliefs correspond to how consumers formulate their thoughts about a specific product or service because they affect buying behavior. Wrong beliefs about the product or service may be countered through a campaign; therefore, companies need to be regularly updates on the beliefs of its target market. On the other hand, attitudes refer to the consistent evaluations, feelings and tendencies to an object or idea, which may either put consumers in the frame of mind of liking or disliking the product or service (Kotler & Armstrong, 2001). The consumers' considerations and marketing perceptions regarding the products and services the consumers will purchase. Bibliography Chow, S., & Holden, R. .1997.. Toward an understanding of loyalty: The moderating role of trust. Journal of Managerial Issues, 9, 275. Gay, L.R. .1976.. Educational Research. Columbus, Ohio: Charles E. Merill Publishing Company. Gliner, J.A. & Morgan, G.A. .2000.. Research Methods in Applied Settings: An Integrated Approach to Design and Analysis, Lawrence Erlbaum Associates: Mahwah, NJ. Guilford, J.P. & Fruchter, B .1973.. Fundamental Statistics in Psychology and Education, 5th Edition. New York: Mc Graw-Hill Hofstede, G. .1997., Cultures and Organizations: Software of the Mind, McGraw-Hill, New York, NY. Huffman C, Mick DG, Ratneshwar S 2000 The Why of Consumption: Contemporary Perspectives on consumer motives, goals and desires, Routledge, London Kealey, D. J. & Protheroe, D. R. 1996, The effectiveness of cross-cultural training for expatriates: An assessment of the literature on the issue, International Journal of Intercultural Relations, 202,, 141-165. Kim, J., Forsythe, S., Gu, Q. and Moon, S.J. .2002.. Cross-cultural consumer values, needs and purchase behavior. Journal of Consumer Marketing, Vol.19, No.6; pp.481-502. Kotler, P & Armstrong, G 2001, Principles of marketing, 9th edn., Prentice Hall, London. Luna, D. and Gupta, S.F. .2001.. An integrative framework for cross-cultural consumer behavior. International Marketing Review, Vol. 18 No. 1; pp. 45-69. Mays, N. & Pope, C. .2000.. Qualitative Research in Health Care. BMJ Bookshop. Retrieved September 1, 2004, from http://www.bmjpg.com/qrhc/chapter1.html McCracken, G. .1988., Culture and Consumption: New Approaches to the Symbolic Character of Consumer Goods and Activities, Indiana University Press,Bloomington, IN. Muncaster, R 1998, New Format Retailing and the Commercial Structure of the Region of Waterloo, Canada: CSCA, Ryerson Universtity. Neumann, E. & Sumser, R. .2002.. Marketing Communications: A Vital Element of Achieving Change. The Public Manager, 31 .4., 9+. Russo JE, Leclerc F. 1994. An eye-fixation analysis of choice processes for consumer nondurables, J. Consum. Res. 21 .2.: 274-90 Sturken, M & Cartwright, L. .2001. Practices of Looking: An Introduction to Visual Culture, New York: Routledge. p. 16 & p. 362. Trochim, W. M. K. .2002.. Descriptive Statisitcs Last Revised January 16, 2005. Retrieved January 4, 2006, from http://www.socialresearchmethods.net Vockel, E.L. .1983.. Educational Research. New York: Mac-Millan Publishing Co., Inc. Read More