Impulse of Impulse Behavior |
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Why do I always find my wife and son at Bigbazar, when I can't find them at home? The reason is not that the distance is less than a kilometer. My wife, an ideal prey for today's retail format and my son at the age of three is deemed to be a consumer in his own right plays cat and mouse with my limited salary. Every time she purchased something big, she comes up with her smiling face to console me and with a same old excuse. She had gone for some grocery items and end up buying a new OTG. Every time whatever promises she made to me, she end up repeated the same story month after month. This introspection of my own family motivates me for the retrospection of others. Impulse
buying happens when you get trapped in a buildup situation propagated by
effective retail communication or out of the mind discount offers and you
buy without thinking much about it. Impulse items can be anything, a new
product, samples or well-established products at surprising low prices.
Research conducted by University of California tracks 30,000 purchases
made by 4,200 customers who were engaged in a shopping trip in US reveals
that 68% of their purchases were unplanned. A similar research conducted
in UK by Point of Purchase Advertising International (POPAI) revealed that
70% of the purchase decisions were taken on spot in the store.
Impulse buying is such a sudden phenomenon where
instinct plays a predominant role. A customer makes a purchase without
proper planning or prior homework. This is the scenario that marketer and
retailer try to capitalize and harness. They provide such impulsive
stimuli which are packaged innovatively clubbed with basic needs and
wants. In the name of instant gratification and glory customers are often
victimized. Instincts are driven by emotions and emotions are driven by
attitude and perception. Impulse
The missing link
Impulse buying alters the normal decision making modules in consumers'
mental space and rapture all consumer behaviour phylosophies. Consumer
mental accounting is a process by which a customer codes, categorise and
evaluate the financial outcome of a choise. Impulse upsets all the logical
sequence of the consumers' actions and then is replaced with an irrational
moment of self gratification and hence altering the age old time-tested
theories. Impulse items appeal to the emotional side of consumers. Some
items bought on impulse are not considered functional or necessary in the
consumers' lives. Similarly why do I need an OTG, when I already have a
microven?
Sometimes customers are not able to express the
selection of their brand and might not be aware of his internal decision
making. But an unconcious decision making process takes place in his mind
which is influenced by cognition and experience. Thus impulse buying
behaviour is very much tune with the psychological and physiological need
of the customer.
According to American Marketing Association "A
purchase behavior that is assumed to be made without prior planning or
thought. Often, it is claimed, impulse buying involves an emotional
reaction to the stimulus object (product, packaging, point-of-purchase
display, or whatever) in addition to the simple acquisition act.
Many researchers all round the globe are conducting research on impluse
buying behavior of which Sunghwan Yi of University Guelph is one of them.
He is conducting studies on various strategies adopted by the shoppers to
restrict their impulse purchases. According to Yi, "If we can reduce
the number of impulse purchases, we can start to reduce the onset of
compulsive behaviour," Another important objective to initiate
research on impulse is to reduce the tendency of impulse because it can be
converted into compulsive behaviour. Make your customer dancing at your
tunes. Jacqueline J. Kacen, Professor of Department of Business Administration, University of Illinois, carried out a series of multi-country survey among the consumers of US, Australia and South-East Asia. He has tried to find out cross-cultural factors influencing impulse purchase behavior. The research abstract suggests, "Impulse buying generates over $4 billion in annual sales volume in the United States. With the growth of e-commerce and television shopping channels, consumers have easy access to impulse purchasing opportunities, but little is known about this sudden, compelling, hedonically complex purchasing behavior in non-Western cultures." At this context a natural question arise if cross-cultural influences are at all a factor that may trigger consumer's impulses not neglecting or undermining other correlated factors like attitude, perception, personality, emotion, and Self-Image. Personal significance of spot satisfaction is very important. So the influencing interferences of such factor cannot be negated. Impulse is not a US disease. For
half a century there has been a series of investigation conducted by
consumer researcher to investigate empirical evidence of impulse, even
though there hasn't been any significant break through.
Prof. Dennis W Rook and Prof. Robert J Fisher of
University Chicago in the year 1995 through one of their article try to
establish a conceptual and empirical framework of consumer Impulse.
Theirs' research tried to knot a relationship between the consumers
impulsiveness trait and associated buying behaviors attributes like
demographic and psychological factors. The most prominent segment of the
study is such relation becomes significant only when consumers considered
that such impulse is appropriate. Impulse is so many occasions are
followed by dissonance reducing behavior. Till date there has not been any
significant research on the impulse behavior of Indian consumers on the
context of retail revolution and which is almost simultaneous and
coincidental.
Upsetting the process of Buying Behavior
Consumer behavior is a study of how individuals make
decisions to spend their available resources (time, money and effort) on
consumption of related items (What, why, when, where and how they buy and
use such products and services). Also we need to understand, why consumers
make the purchases that they make? What are the factors that influence
consumer purchases? What is the changing factors in our society that guide
such purchase behavior.
The 5 stages of consumer decision process are:
Problem Recognition / Awareness of
Need: In this stage we identify the difference between the desired
state and the actual condition. They are based on consumer's perception of
what their actual state is and where they want to be. If you see a
commercial for a Retail discount offer of Buy One Get One (BOGO) in
respect of some apparels brands, it will automatically stimulates your
recognition that you need those.
Information search: It is based on two form of
evaluation, Internal Information and External Information. The
sources of external information are memory, cognition and experiences. The
sources of external information are Friends, Peer and relatives (which
includes Viral / Bush fire Marketing), Advertising, PR, Event marketing,
Catalogues, comparison-shopping; public sources etc. In case of impulse
buying emotions block such internal computing
Evaluation of Alternatives: You need to establish
criteria for evaluation, identify features and attributes you want to buy.
You need to give rank or weightage, then find evaluative alternatives or
resume a fresh search. The Expectancy Value model of attitude formation
provides us how consumer evaluates products and services by combining
their beliefs, attitudes, and attribute-based fascinations in respect to a
brand. The customers fail to recognize the importance of alternative
evaluations at this point of time in the case of impulse. It becomes a
very important aspect in the post purchase stage of dissonance is outcome
of such purchase.
Purchase decisionIn this stage the customer
choose products from the buying alternatives (evoke set) but during
impulse purchase decision take place even before problem recognition..
Post-Purchase EvaluationThe outcome can be
either of two Satisfaction or Dissatisfaction and in case of
dissatisfaction this stage is followed by evaluation of alternatives. Most
of the dissatisfied impulse behavior is followed by a post mortem.
We can see impulse behaviour do not have a place if
buyers behavior follow such systematic sequence. A study conducted in
various branded retail outlets in 5 metro cities in India shows 54% of all
sales are actually unplanned purchases. This is why the study of impulse
purchase in Indian context is so important. Impulse
and Perception
Perception is a process by which the individual selects,
organizes and interprets stimuli into a meaning and coherent picture of
the world. The customer who is exposed to any of such marketing stimuli or
an advertisement, the first reflex that is initiated in the customer's
mind is known as sensation. Sensation is received by the five senses of
the customer. The attributes that trigger sensation in the customer's mind
can be product feature, price, and promotional attractiveness. Optimum
quantum of sensational mix that ignites instinct is the absolute
threshold. This absolute threshold must generate some emotional element
that will eventually result into impulse.
Impulse and Attitude
Attitude is a complex mental state of readiness, organized
through experience, creating a dynamic influence on the individual's
response to all objects and situations to which it is related. Fishbein
extended model 'Theory of reasoned action' explains the interrelationships
of psychological factors and external factors that initiate purchase
behavior.
Self Belief + Evaluation = Attitude Impulse and Promotions Promotions
and retail merchandising is the fearsome tool of generating sensation. The
India Retail wave has supplemented the growth of Sales Promotion. More of
advertising money is now pouring into marketing and promotion of retail
brands. Most supermarket shelves are abuzz with more promos than
merchandise and within the stricking distance to hunt a customer.
Categories include, grocery items, juices and beverages, confectionery,
leather goods, consumer durables, Apparels and jewelry items ready to
aroused customers appetite to consume. On the other hand more and more
retail consumers are ready for the best bargain of their lifetime. From
both the frontiers retailer will generate impulse. Impulse no
looking back
In the midst of such economic insurrection new malls are coming every
day and few hundred more are coming up in the next five years. Multiple
retail formats have sprung up across different cities, city horizons are
flooded with malls and shopping complexes. More and more will penetrate in
semi urbanize and rural India emulating the Wal-Mart model.
Retail consumptions in India are mammoth, close to $200
billion. This $200 billion will expect to become $300 billion in the next
few years. This is the era of Organised retail and which is expected
to grow at 40% for the next five years. If we go by the RAI statistics,
India will witness impulse purchases amounting to $ 60 billion that is
enough to electrify the whole of rural India. In late 1960s India
witnessed Green Revolution, early 1980s witnessed White Revolution, Mall
Revolution has just begun. Average Indian, as consumers become richer,
younger, more ambitious and instinctive than before. Indian consumers are
on the full stride in terms of their consumption levels that can surpass
US consumption level in next 20 years.
In the past decade the Indian demographic pattern has
changed not only in terms of income but also in terms of socio-cultural
attributes and family lifecycles. The double incomes becoming a norm in
urban areas, increased advertising and sales promotion have made buying
more achievable and exhilarating to a larger portion of the population. In
this context nobody dares to ask weather such promotional offer influence
impulse behavior among urban customer or not. Through my diminutive
research endeavor I would like focus whether today's urban class are
carrying the same western syndrome "Impulse" and are becoming
easy prey to the retail brands.
Let us find impulse
In order to find out the extend of impulse in retail consumer behavior,
I have carried out a research work in Kolkata with the following
objectives:
1. To study the quantum of impulse behavior The survey was conducted in four retail brands in North and South
Kolkata. There were 150 respondents in total, ages of the respondents
varying between 20 to 40 years. This demographic represents young
forward-looking Indian consumers who have more disposable income and more
willingness to consume.
In the research it was observed that 119 customers on
that day had made unplanned purchases.
Then
we have done the regression analysis between the annual income and amount
of retail purchases customer made on that particular day.
Regression Statistics : Annual Income & Retail Purchases
R
value 0.46 signifies positive correlation between Annual income and retail
purchase made on a particular day. R Square (coefficient of determination)
is 0.22, which means that only 22% variation is retail purchase can be
explained in terms of annual income.
Then
we have concentrated our research only on the people who have conducted
unplanned purchase. We have tried to find out the correlation of various
factors associated with the unplanned retail purchases.
Then we have done the regression analysis between the
Product Feature & price with amount of retail purchases customer made
on that particular day. R square of product feature and retail purchase is
.80 where else with price is only .22.
It is also seen that the average unplanned purchase is
2.5 times more than the planned purchase. To quantify emotional reaction
was very difficult.
Conclusion
Playing with aggressive promotional campaign the retail brains in India
are poised to rewrite the consumer behavior pattern targeting at the
"Impulse Syndrome". The retail brands across the country
incessantly positioned themselves in the middle-to-premium segment of the
market in view of achieving such "impulse" objective triggering
the unplanned purchases.
Consumer lifestyle, family life-cycles and cultural pattern is shifting
in every average Indian cities and also in rural some rural pockets. An
emergent segment economically well off, upwardly mobile consumers having
similar needs, desires, fantasies and demand aspirations are looking for
instant fulfillment. With satellite television, internet and mobile
communication available in smaller cities and suburbs, people are ever
more out in the open with the bare truth how the people in 'Wild West'
lives. This is the future of modern retail in India characterized by
impulse behavior. It gives a huge opportunity to the modern Indian
retailers to aroused consumer emotion as day by day it is becoming
ultimate mantra in the great Indian retail saga. Reference
Marketing Management 9th Edition Philip
Kotler www.cbcnews.com
www.ibef.com
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