Behaviour of Impulse Buying

Customers’ Behaviour of Impulse Buying

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Customers’ Behaviour of Impulse Buying

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Abstract

Introduction

According to Saleh, popularity and existence of online shopping in the United Kingdom (UK) indicate impulse buying as a critical element of consumer behavior. Early studies show impulsive buying is similar to unplanned buying. According to Saleh, virtually everyone buys an item on impulse at one time in their lifetime (Saleh, 106).

As highlighted by a Whistl survey conducted in 2017, 91% of the people in the UK make impulse purchases every month. All the impulsive purchases in the UK, including the fashion industry, build up a monthly expenditure of £3.14 billion, which works out at a per-person cost of £47.84 (Halliday).

Using figures acquired from the Office of National Statistics in the UK, Gough (2016) approximated that the Britons aged over 18 years spend £21.7 billion annually on impulsive buying. About 41% of the impulsive buyers in the UK were generation Z, followed by generation X, with 32% while generation X stands at 27% (Clark).

Generation Z consists of individuals born after 1995 are more convenient with online shopping; thus, they have access to the latest designs. Some of the trending fashions in this generation include athleisure clothes, gender-neutral outfits, and other trends.

Generation Z is the group that is most influenced by the internet, spending almost 10.6 hours on the internet each day. In a study by Wadera and Sharma (2018), the frequency of internet exploitation in online shopping between 2014 and 2015 surged from 81% to 86%.

In the same period, the online fashion shopping budget has escalated drastically, from 48.6% to 60.2% (Wadera & Sharma, 55). A report by Eurostat (2017) brought out that two-thirds of shoppers in the UK browse every day and are online shoppers. Several drivers and factors were influencing impulsive buying, including the price of product and delivery (good deals), speed of product delivery, and time spent on the internet.

In a survey conducted by PRmoment.com. (2017), the top five factors that drove the Britons to impulsive buying included monetary deals or offers (92%), credible and convincing online displays (64%), reviews by families and friends (57%), the uniqueness of the item (48%) and lastly convincing by the retailers or salesperson (17%). This research aims at evaluating the factors influencing impulse buying in the UK fashion industry.

Aim and Objectives of the Study

Aim: To identify the drivers and the factors that lead to impulse buying in the UK fashion industry associated between the age group of 18-15 years.

Objectives:

• To identify the factors influencing impulsive buying in the UK fashion industry in physical store environment.
• To identify the driver and the factors that lead to impulse buying in the UK fashion industry online
• To critically analyse and give recommendations of how impulsive buying can be used as a marketing tool.

Justification of the Study

Impulse buying has, for decades, been considered as a significant factor for escalating the sales volume in the retail industry. Impulse purchases today account for 50.9% of the purchases made on supermarkets (Khan et al. 2015). According to Tooke (2018), 26.5% of the clothing shoppers buy the products on impulse, incurring overall spending of 30%.

With the drastic development of technology in the world today, more and more consumers have shifted to online shopping due to the convenience associated with the internet. Researchers have come up with several drivers and factors that influence impulse buying.

In a report by UK Criteo Online Shopper Survey (2017), when respondents were asked to rank factors influencing them to make impulse purchases, the price was the leading factor with 83% of the respondents, product description and display the second with 59% and lastly product rating and reviews with 49%.

In the research by Whistl in 2017, it was found that one of the most driving factors for impulse buying among the UK generation Z included good deals that covered 46% and 39% claiming to be tired and online browsing. In the study, shoppers in Bristol were reported to be the most tempted in impulse buying of special offers, whereby 71% blamed that for impulse buying (Whistl).

Additionally, in a survey by Halliday (2017), that involved 1,106 respondents, 56% of the respondents were impulsive buyers of clothes, making fashion to be the most popular impulse buy. One of the primary reasons for impulse buying in this study was technology in the modern world, where anything the consumer desire is readily accessible and available to order online.

In the survey, 56% of the respondents were online shoppers (Halliday). The younger generation has been reported to be more drawn in technology and internet, whereby 55% of individuals under 24 years asserting that late-night internet browsing significantly contributes to their instant or impulse buying (Whistl).

Whistl survey also found out that in making an impulse purchase, the factor of the speed of delivery plays a significant, whereby a third of the respondents claimed the longest they would wait for delivery of a product was two to three days. Individuals under the age of 24 were the most impulsive and impatient, with 16% claiming that they would wait up to one week, in comparison with 38% of elderly adults age (Dl.acm.org). To this end, time and speed of delivery is a significant driver for impulse purchase behavior.

Chapter 2 Literature Review (Re-write and add citations)

Sudden, hedonically motivated purchasing behaviour is rampant in fashion retailing. Impulse buying behaviour plays a crucial role in the fashion industry. Fashion retailers use visual merchandising as a tool that strengthens positive emotions where products and brands are visually communicated to attract, engage, and motivate the customer towards making an impulse purchase.

A digitised retailing context also helps in offering consumers’ products, and changes in information technology have enabled them to gain fashion inspiration online. Some of the factors that encourage impulse buying include the current mood and individual differences. Theoretically, enhanced perceived physical proximity to a product can create a feeling of partial ownership and potential loss when the product is not ultimately purchased.

Moreover, enhancing the vividness and interactivity of online products helps a consumer feel physically closer to a product. Online fashion sellers currently rely on free returns; free deliveries and special discounts that enable them to attract impulse purchases. Impulse buyers depend on refund policies when purchasing, especially when buying clothing.

For instance, products that are promoted on sale or which are seen as a good deal encourage impulse buying. Social influence can also help impulse buying. It can also be supported by social comparison, for example when a consumer sees their peers purchasing a product through social media, a friend posts on social media about a particular product in local establishments to predict the same online purchase and also visit similar establishments.

The bar graph has been taken from Global Data’s UK e-retails survey of 10,000 nationally representative’s online shoppers. The chart shows the proportion of online shoppers who have clicked through Instagram shopping to a product page on a retailer’s website to buy products (Sales).

Some of the strategies that an organisation can use to encourage impulse buying include shipping. Shoppers are also supported through providing suggestions for specific products in a certain price range and checking them out to meet a consumer’s specific shopping threshold.

Provisions of special pricing and incentives also encourage impulse buying. A free shipping threshold can be used to help consumers, and this results in increased sales. Another strategy is ensuring that it is quick and easy to purchase a product from an e-commerce store. Ensure that products are streamlined and optimised to take full advantage of impulse purchases.

Impulse buying behaviour begins with product awareness; this is where impulse buyers begin by browsing without necessarily having an intention to buy a product. When impulse buyers have the desire to purchase, they always purchase without searching for information and evaluating alternatives and reclassifying the alternative factors.

Research on shopping motivation and boredom indicates that this behaviour results in exposure to stimuli, such as those of monotony and frustration. Consumers are influenced by internal factors such as desire, mood, needs, and hedonic, cognitive and affective evaluation.

External factors such as window display, visual merchandising, promotional signage and floor are selling triggers consumer to impulse purchase behaviour. Where fashion buying decisions are governed through strong emotions such as boredom, the choices tend to be more guided by impulse behaviour that rational behaviour. Besides, online site atmospheric and engagement in responsiveness are also crucial and triggers impulse purchases.

Furthermore, consumers usually shop to satisfy their hedonic needs, specific products acquired during the shopping trips were also deemed secondary to the action of buying as such, it constituted and impulse buying event. Some of these hedonic needs that consumers continuously seek to satisfy comprise of surprise, fun novelty.

Further, consumers involved in impulse purchases are more likely to shop due to indulgent reasons compared to those consumers who obtain an average score on the impulsive scale. Additionally, the desire to satisfy their self-esteem increases a consumer’s impulse buying behaviour. Consumers use their shopping experiences as a strategy for self-reward and as a way of establishing identity. In the fashion industry, there is a positive correlation existing between impulsiveness and style-consciousness.

Chapter 3 Methodology (Survey, I sent for analysis earlier)

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Chapter 4: Research Findings

The purpose of the research is to determine whether or not various factors considered affect impulsive buying based on the respondents of the study. This study also emphasized the relation of different variables that affect the behavior of impulsive buying. In this section, the outcomes from the study are represented in graphical and tabular to depict a clear view of the findings.

4.1 General Profile of Respondents

Table 1: summary of the general profile of respondents

Table 1 above provides an overview of the demographic information of the 87 respondents for this study. Based on gender, 58.6% were male, and 41.4 were female. The ages of the group of respondents ranged between 18 years and 25 with the majority of them aged 22 years which represents 26.4% of the people who responded to the survey.

As per the occupation of the respondents, the vast majority of them were students at 65.5%, 17.1 were self-employed, 16.1 were employed, while 1.3% were currently searching for jobs. On the other aspects of whether they bought products they require, 37.9% agreed, 26.4% objected while 35.6% were undecided.

4.2 Descriptive Statistics

The various elements of impulsive buying behavior are summarized in tabular form and analysed to conclude.

Table 2: Frequency distribution of impulsive buying behavior.

From table no. 2 above, it is evident that the majority of the people buy fashion every month a figure that stands at 34.5% of the 87 respondents. As per the table, the frequency is distributed in weekly, two weeks, three weeks, monthly, three months. In the following section, most of the people preferring buying fashion both in-store and online. 29.9% of them preferred in-store impulsive buying and 9.2% were for online shopping.

The above information is also represented in the pie charts below to indicate the concepts indicated in table no.2 as follows:

The high number of respondents who preferred both in-store and online shopping could be attributed to the benefits associated with each category. For instance, anyone with or without access to access to the internet can always visit the store and check out the recent fashion arrivals and make instant purchases of what they may need.

However, there is a shortcoming in that while strolling in the store one may come across items they may not have budgeted for and end up buying. Besides, it is also time-consuming in that one has to abandon other engagements and go shopping. On the other hand, online buying saves time and money. Some of the items also have some discounts that may entice customers.

Here one can browse all the issues available from the comfort of their homes and purchase what they may desire. The only negative is that there may be delays in delivery of the items.

Therefore, using both methods, one can get what they urgently require from the stores and order the others which they may not need instantly online. The other aspect considered in the survey is the frequency of conducting spontaneous buying. Among the respondents, 42.5% agreed, 25.3% objected, while 32.2% admitted buying spontaneously sometimes.

4.3: Factors Prompting Impulsive Buying Behavior

Impulsive buying behavior can be associated with different factors, like the availability of resources. From some of the respondents, it was identified that spontaneous shopping is triggered when one gets the finances and buy something they may have always desired for some time.

Another respondent suggested that being idle would also be a factor that promotes impulsive buying. Some of them indicated that they are on the lookout every time they visit the high street to identify new trends to know the changes in fashion over time. Online shopping also enhances impulsive buying behavior since various items are posted online once they have been released.

Thus, anyone scrolling from their devices can identify the fashion trends and make purchases provided the required resources monetary or otherwise are available. Most of the products posted online have enticing discounts which may encourage potential customers to make a purchase whenever they come across them.

Majority of the respondents in this survey are youths who are attracted to good things when they see them. For instance, in schools, as we can see above, many of them are students who identify many fashion trends among their colleagues. Thus, they may probably like some of the items they see and also enquire from those having them concerning where they purchased the item and terms of purchase.

Same applies in workplaces where people attend the offices every day wearing different fashions. The discounts and offers are also considered before one can shop for items without prior planning. In some cases, after one identifies the fashion trends, they are likely to visit the stores like malls and check out what they may have come across in their various locations either in school, businesses or workplaces.

If they get the items at that particular store and they have the resources they may purchase it. Else, they may conduct further searches online to identify where they can find the specific item and either make online purchases or visit the store and shop.

Some of the stores in the UK where one respondent admitted to having visited and shop includes Primark, H&M and John Lewis/Debenhams. Online shopping avails a wide variety of products compared to in-store purchases. One can browse on a wide range of items by simply typing the search information.

However, while at the mall, it may prove tedious to go to all sections and search through to find the item that one may require. Thus, many of the stores have availed all the information online for easier searches. That way, when one decides to visit the shop, they may have prior knowledge of whether the particular garment that they may need.

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4.4 Means of Purchases

Table 3: Trends of impulsive shopping behavior

As it is portrayed in table no. Three above the respondents who use social media in for shopping are 54% while the other 46% do not prefer the social media shop. The high number of respondents who do not prefer using social media could be attributed to the fact that many people have lost faith in the information on these platforms. Since social media is open to anyone, some malicious individual uses it to post false information that misleads the public.

Besides, other use enticing offers and discounts to extort money from unsuspecting potential buyers. However, to curb this escalating behavior on online scams, the official store has certified/verified pages where customers can access relevant information based on the items that the buyer may be searching. Social media has the advantage in that information shared can be accessed by a wide range of potential buyers online from any location.

The other factor considered in the study is the effect of advertisements on purchasing behavior. Among the respondents, 39.1% agreed that advertisements could influence them to buy, while 24.1% declined. The remaining portion of 36.8%, accepted that advertisement could sometimes change their purchasing behavior.

It is no doubt that adverts make potential buyers aware of the availability of the items. They also indicate the discounts and offers that the customer will receive from purchasing the item. For instance, in the case of fashion changes, the customers are sensitized on the fabrics used, comfort associated and other vital details concerning that particular outfit.

The number of respondents who agreed and those who admitted to being influenced is narrowly even indicating that the advertisements have the potential to encourage one to buy. Most of them are very persuasive and draw a very enticing image of the whole idea.

However, when advertising the defects are not indicated, although everything has its positive and negative side. Thus, before one can visit the store to make a purchase or buy online, they should make their assessment of the item. They can do this by inquiring from those who have had prior experience with a similar product. Besides, the in-store purchase can enable one to see the product before they can purchase it.

Summary of Factors Considered Before Purchasing

Table 4: Summative information on purchase terms.

From table no.4 above, 60.9% of the respondents preferred purchasing fashion products on discounts, offers or a seasonal sale at all times. 4.6% admitted not to consider these terms, while 34.5% feel it sometimes. Most of the fashion products may be costly, and therefore most of the people who purchase these items are seeking for ways that they can save money. During seasonal sales, most of the products are availed at lower costs, a factor that pushes up sales.

The return policy, on the other hand, is an essential factor when one is acquiring any item either online or in-store.

In some cases, the product could be defective, and thus one may require to return it to get another set. For instance, during online buying, one does not have prior knowledge of what they purchase until after they receive it. Thus, one must be familiar with the terms availed before they acquire the products.

In that regard 36.8% of the respondents said that they check the return policy at all times before purchasing any fashion product, 28.7% admitted to not reading through them while 34.5% of the respondents consider the procedure at times. Impulsive fashion buying may happen when one had no prior plan of what they may require.

Thus, it would be essential to consider the terms of the purchase and have a clear view of the conditions provided by the seller concerning returning the product if it becomes defective or does not fit the requirement.

4.4 Graphical Representations

The graphs in this section present the factors that affect the online and in-store shopping experience. For impulsive online buying, majority of the respondents (64.4%) said that they consider the offers presented in promotional materials. The website design, return policy and delivery services also had considerable effects on the respondents representing 59.8%, 50.6% and 43.7% respectively. The influences of each factor are presented in graph no. 1 below:

Graph 1: Factors Affecting Online shopping experience.

On the other hand, the in-store purchasing experience was mainly influenced by the display of items in the shop. Other factors that had a considerable effect were visual merchandising, store location, ambience, communication with the sales individuals and promotional signs. The number of respondents who agreed with each of these factors among the 87 respondents in this study and corresponding percentages are shown graphically in graph no.2 below:

Graph 2: Factors affecting the in-store shopping experience.

4.5 Shopping Companions and their Influence on Purchasing

When is making a purchase online or from a store they are likely to be alone or accompanied by others n what they purchase. From the responses gathered in this survey, most of the people that attend our respondents when they are shopping are friends, family or close relatives. The data on the distribution of how the respondents go to shopping is tabulated in table no.5 below:

Table 5: Preferences while shopping.

A significant number of respondents, as indicated in table no. Five above were not specific as to who they prefer to accompany them while shopping. However, those who considered going for shopping alone and indicated the reason for it was more explicit that they do not need confusing opinions that the companions may have regarding a particular product.

However, some considered the company of their friends helpful since they may share similar views regarding a specific item. Others admitted to going shopping with their parents or other family members although the reasons for it vary. Some consider the company of their dads or moms helpful in that they will pay for the items.

However, some think it detrimental in that they may give varying opinions on whether they should buy the items or not. Shopping alone may be beneficial in that one may not require to consult before making a purchase. Purchasing behavior can be influenced by one accompanying individual when they are buying items. That was another aspect that I considered in this research to determine the factors that affect impulsive fashion buying.

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Finally, there was the consideration of whether the respondents purchase fashion products when they need them or not. Out of the 87 respondents, 64.4% of them admitted that they do impulsive buys while the remaining 35.6% indicated that they only buy fashion products only when they require them.

The graphs in the following section show the frequency of making purchases of fashion products. Figure 3 below indicates the rate of shopping prompted by window shopping:

Graph 3: How often do you end up purchasing a fashion product while widow shopping?

Graph 4 below indicate the frequency of overspending while shopping:

Graph 4: How often do you overspend while shopping?

Chapter 5 Data Analysis and discussion

Chapter 6 Conclusion and recommendations based on drawn conclusions

References

Ajzen, I. (1991). The Theory of Planned Behavior. Organisational Behavior and Human Decision Processes, 50, 179–211. Ajzen, I. (2011). The theory of planned behaviour: Reactions and reflections. Psychology & Health, 26(9), 1113–27. doi:10.1080/08870446.2011.613995.

Author, G. and Author, A. (2020). 20 Killer Tips to Create a Successful Online Store. [Online] Marketing Insider Group. Available at: https://marketinginsidergroup.com/strategy/20-killer-tips-create-successful-online-store/ [Accessed 3 Feb. 2020].

Clark, D. (2018). Individuals who are impulsive buyers 2017 | Statista. [Online] Statista. Available at: https://www.statista.com/statistics/790391/individuals-who-are-impulsive-buyers-in-uk/ [Accessed 13 Feb. 2020].

Dl.acm.org. (2020). Impulse Buying | Proceedings of the 2019 CHI Conference on Human Factors in Computing Systems. [Online] Available at: https://dl.acm.org/doi/10.1145/3290605.3300472 [Accessed 3 Feb. 2020].

Eurostat (2017), “About two-thirds of internet users in the EU shopped online in 2016”, available at http://bit.ly/1VR9CKT (accessed 13 February 2020).

Customers’ Behaviour of Impulse Buying

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