...Exchange School Donghua University Undergraduate Research Project: Motivations for impulsive buying behavior and the effective marketing strategies selling grocery products Case: CITY SHOP By: Ilja Khanan Nationality: Germany Major Business Administration Student ID: 113110246 Supervisor: Nikola Zivlak Date: June 2014 Abstract For over sixty years, marketers and consumer researchers have studied Impulsive-buying behavior. Today, 30 to 60% of all purchases are impulsive in the USA (Crawford & Melewar 2003) for different product categories and it is considered to have a $4.2 billion annual volume. That’s why it is becoming more important for marketers to understand how people can be influenced when shopping in order to increase revenues and profits. Millions of dollars are spent on in-store marketing efforts. Over the years, different models have been created for marketers to better understand the key drivers that lead to impulsive buying. This dissertation is written for the retailer or marketer who will adjust their marketing strategies to capture the opportunities of the consumer impulse purchases. This dissertation focuses on City shop and the strategies they use to encourage impulsive buying behavior. The thesis will cover the following topics in regard to impulsive buying: - Factors and influences that lead to impulsive buying behavior? - The different promotional approaches used by marketers? - What personal traits...
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...The buying process of “Sony VAIO” A computer is a general purpose device which can be programmed to carry out a finite set of arithmetic or logical operations. Since a sequence of operations can be readily changed, the computer can solve more than one kind of problem With advances in computer technology came the dawn of automated systems, allowing artificial intelligence to replace human intelligence. Over the last decade, there has been a tremendous advancement and use of computers which has rapidly become one of the most sought in every phase of individuals’ personal and business life today. Individuals and companies are highly dependent on computer for storing data, image, and file processing, preparing assignment, presentation, report and research work. Desktop pc, Laptop, Net book, note book have emerged as the most popular invention of computer. There are lots of brands of desktops and Laptops are available in the market. For example, Apple, Toshiba, Sony VAIO, HP, Dell etc are the most popular brands that people usually look for to use. We buy computer not only to play games or watch movies, but also for storing data, keep record, using MS office, SQL, data software, image software, to perform various functions such as create status report and as a communication device by using internet. Few months back, I strongly need to purchase a laptop. While purchasing a new Laptop, I first tried to recognize the problem, then search information, evaluate alternatives...
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...Owning a home offers many benefits not available as a renter such as pride with ownership, qualifying for special tax breaks, and saving money. Renovating property is one example of expressing the freedom available to a homeowner that renters do not have. Many tax breaks are only available to homeowners for many reasons including deductions for mortgage interest, First-Time Home Buyers’ Tax Credit and deducting expenses by having a home-based business. The amount of money saved considerably outweighs the money spent on renting a house or apartment. Not only does one save money , but the money is equally invested. Money saved by owning a home grows in many ways. Additional benefits not relating to money, such as a feeling of worth or inclusion in community decisions are positive reasons for owning a home. Spending money on rent when one can afford to buy is not the best financial decision. Though renting property relinquishes the renter of most responsibilities the benefits are few. When a person saves money to buy a house, that person takes pride in the amount of hard work accomplished to attain the goal of purchasing the house. Owning property “instantly” makes the owner a part of the neighborhood and community, along with its social advantages” (Hudson Valley Business Journal, 2/25/2008 Supplement, Vol. 19, p4-4, p. 1). One may choose to make valuable decisions when becoming part of a new neighborhood that help mold the area into a safer community. Such decisions effect...
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...A Guide to Buying and Selling a Business Contents Introduction So where do I begin the process? Shares or Assets? How much is my business worth? Deal structure When do I have to pay? Where is the money coming from? Management Buy Outs and Management Buy Ins Do I need Heads of Agreement (“Heads”)? Take a good look at the target Share Purchase – The Legal Paperwork Asset Purchase – The Legal Paperwork Buying from an Administrator or Liquidator Completion Legal Costs 1. Introduction What follows is a brief overview of a complex legal area in which many traps and pitfalls await those unprepared. This guide outlines the main considerations that apply in buying or selling a business with practical advice based upon our own experiences of buying and selling numerous businesses for our clients over the years. There is no substitute for early, fast, pragmatic legal and other professional advice to guide you through the transaction whilst allowing you to remain focussed on the key management and operational decisions affecting the business. In our experience, every deal is unique. Steeles Law, Corporate and Commercial team Service, response times and business acumen are without fault Legal 500 2. So Where Do I Begin The Process? Proper legal advice is essential early in any major transaction for two key reasons: 1. to ensure...
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...INTRODUCTION Product overview The Canon EOS 600D is an 18.0 megapixel digital single-lens reflex camera, released by Canon on 7 February 2011. It is known as the EOS Kiss X5 in Japan and the EOS Rebel T3i in the Americas. I was one of those who are thinking about getting the very first Digital Single Lens Reflex (DSLR) Camera, when I first laid my eyes on the Canon Kiss X5. At the time, there were only basic features of the product that I could access, based on limited knowledge about technical terms and shooting capacity in Photography. The Canon Kiss X5 is the newest in the Rebel series of cameras that have been produced by Canon, in order to satisfy the demand for great cameras by amateur customers. First we are going to examine the quality of the photos that can be taken. With a DSLR Camera, the quality of images stands beyond the concept of “mega pixels” (often boast about 7 to 10 for regular point shot digital cameras). We can be able to take photos in all lighting conditions with an ISO rating up to 6400 which is expandable to ISO 12800. The camera can also capture video with 1920 x 1080 full HD, is something that lots regular camcorders cannot claim to be able to do. So what makes the gear outstanding among its ancestors (with the same sensor system as the previous model Canon Kiss X4)? Perhaps it is because of the additional new features that can reveal creativity and facilitate the use of customer. By using Basic+, it provides settings whereby we can shoot by...
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...Consumer and organizational buyer behavior are sub-categories of marketing. Research in both fields has enabled manufacturers and distributors to understand the needs, preferences and behavior of buyers, as well as the internal and external factors that influence buyer behavior. Although much has been written about the differences between consumer and organizational buyer behavior, it appears that the demarcations between the two fields are not as clear as they may seem to be. Keywords Buying Center; Buying Decision Process; Consumer Buyer Behavior; Decision-Making Unit (DMU); Organizational Buyer Behavior Marketing: Consumer Overview Buyer behavior is concerned with the selection and purchase of Products or services to satisfy a need for individuals or groups. It is focused on the needs of individuals, groups and organizations. Buyer behavior occurs either for an individual consumer on his own; an individual consumer in the context of a group (where others in the group influence how a person behaves); or an organization (where employees make decisions about which products or services the firm should use). Although economists were the first academic group to offer a theory of buyer behavior, the field of buyer behavior is a subcategory of marketing that blends elements from economics, psychology, sociology, social psychology, anthropology and other sciences, such as physiological psychology, biochemistry, and genetics. The two main areas of buyer behavior are consumer...
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...Running head: CAUSES OF IMPULSE BUYING Impulse Buying EN1320 ITT Technical Institute Impulse Buying Everyone does it from time to time. I’m talking about acting upon impulse. In some cases, impulsive actions can be harmless or even rewarding. This is usually not the case though when it comes to making impulsive purchases. Studies have shown that on average, between 50 and 65 percent of items purchased while shopping we’re not on their lists, and we’re bought out of impulse. The question at hand is why, and this is what I am going to try and answer. Impulse buying begins a downward spiral that, if not corrected, ends with owning up to unexpected and undesired consequences that can be very detrimental and life changing. As defined by Merriam-Webster.com (2012), impulse buying is the buying of merchandise on impulse, rather than premeditation. Not a lot is known about the causes of impulse buying, and they have seemed to change over the years with evolving technology. One factor that has always been prevalent throughout time in driving spontaneous purchases is “sales prices”. When a customer thinks they can save money on an item, whether it’s on their list or not, they will more often than not give it a look over and consider making the purchase. The Yankee Group and Ernst & Young conducted surveys where they asked people why they would make impulse purchases on the web. According to The Yankee Group (November, 2000), 75% of survey respondents indicated that a “sale...
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...Rasheena Rattu P11270471 The aim of this project is to understand how visual merchandising can impact young adults impulse buying patterns. During the project I will create surveys for face to face interaction, experimental studies in controlled and structured environments such as toy stores which then would develop into case study on particular families which were interesting during the experiment. Identify-I would like to identify the key factors of visual merchandising for young adults – what works best, what persuades a young adult to buy? Compare- the different technique that works with different ages for example, a particular technique would work better with a 7 year old rather than as 15 year old. Look at different stores such as grocery store, toy store and clothing store. Establish the key factors of impulse buying for young adults in a retail environment Establish needs and wants for young adults and how impulse buying can play a big part Establish the most used visual merchandising techniques in retail “Successful retailers are aware of and satisfy shoppers’ expectations in decor and presentation. All VMs must know their products well and know their target customers’ wants and needs. Disappointing a customer is negative retailing.” , ‘Visual Merchandising: The Business of Merchandise Presentation’. Robert Colborne Initially I need to research children’s characteristics, what they enjoy looking at, when they begin to recognize brands, behaviours when wanting...
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...Introduction With economic globalization and socialization developing, operation of market mechanism becomes an indispensable aspect. And it is the overall function of the market economy, the process of economic growth is the most important driver, the launching of the Industrial Revolution was based on the market mechanism, or that the industrialization process as the core of modern productivity growth is carried out under the driving of the market operation mechanism. Thus, the market mechanism control the power that the people most concern about the price, and market mechanism can help to ensure that scarce resources are allocated to where they are most wanted. Part 1 Market is a place where goods and services are engaged in buying and selling by buyers and sellers who come together at market (tradimo, n.d). Market is one of a plenty of kinds of systems, institutions, procedures, social relations and infrastructures through parties carry out exchange. Although, parties may exchange goods and services by barter, most markets mainly depend on sellers offering their goods or services, labor in exchange for money from buyers. It could be said that it is the process of the price of goods and services established. Market promote the trade, besides, the market distribute the resources to society equally. In economics, UK runs the laissez-faire currently, called freely operating market system, it is “free” party, in this sense, the party do not intervene the taxes, subsidies ...
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...We would first have to determine what our budget will be. How much can be afforded down and how much monthly could be afforded comfortably. Now don’t forget to take into consideration, all other expenses that come with buying a home. Before we begin, remember this is not to be rushed. There are many houses available, and many prices that can be negotiated. Let us start by deciding on location, than what type and size home. If you make this commitment, you should first decide, what the best locations are for you. Just remember to stay with-in your budget. Remember, depending on the location, also determines other associated cost. The value of your home determines your insurance premium, also remember to consider the price of a pool or other recreational items in your yard, these too increase your insurance. Your insurance is estimated on the value of your home and is increased with anything that could be considered hazardous on your property. Now that we have covered things we should keep in consideration. Let us decide whether we want a new home, used home , foreclosed home, mobile home, we can look around and see what is available and in your price range. There are many distressed homes, I think we should start there. A lot of times the owner will pay all the closing costs and finance the home for you. There are also homes available, for a small price, we can look into homes for sale due to the owners’ inability to pay their taxes. If we buy three of their tax certificates...
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...do not have to travel to multiple places for their dinner, shampoo, and detergent; instead they can travel to one place. Grocery stores quickly grew into large franchises that have scattered across every state in the US. Though grocery stores make shopping convenient, efficient, and less of a hassle; they also create multiple dilemmas for communities, the environment, and consumers. Consumers can help limit such issues by shopping as if we were still in the days when supermarkets were not around, to the days when people bought locally. The food that Americans eat does not come from the local farmer anymore. Instead it ships to the United States from across the country or even across the world. Since America is importing food instead of buying it from a farmer, the farming population is decreasing. According to the internet article, “Why Buy Locally Grown?” less than 1% of Americans rely on farming as their primary occupation which means there are fewer than 1,000,000 farmers in the United States. A main reason for the decrease in the farming population is that for every retail dollar sold, the...
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...for kids aged 7-9 Introduction Marketing, Inc. has been hired to create a new line of educational toys for kids aged 7-10 years old. Marketing, Inc. will help National Toy Manufacturer (NTM) develop a marketing communication plan for the new educational toys. For Marketing, Inc. and NTM to be successful, Marketing, Inc. will focus on two key areas, demographics and psychographics of the target population. It is often stated that while demographics determine consumers’ needs for products (e.g., males and females need and buy different products) and the ability to buy them (e.g., income), psychographics explain buyers’ purchase decisions and the choices they make within the buying options available to them (Schiffman & Kanuk, 2010). Marketing, Inc. will use age and income as its two demographics and buying motives and values as its two psychographics for this marketing communication plan. Demographics Demographics offer four reasons why they are the core to almost all segmentations; (1) demographics are easy to classify people and can be measured more precisely than other segmentation basis; (2) cost effective way to locate and reach specific segments because most of the secondary data compiled about any population is based on demographics; (3) demographics enable marketers to identify business opportunities enabled by shifts in populations’ age, income or geographic location; and (4) many consumption behaviors, attitudes, and media exposure patterns are directly related to...
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...idea of what they want. Purchaser decision making is fundamentally a problem solving process. More often than not the most challenging concept in marketing is to understand the buyer’s behavior. To gain customers a company must understand how the consumer will respond to various product features such as price and advertising. Gregory Mankiw clarified it best within the 10 Principles of Economics. He advised that; people respond to incentives, behavior changes when costs or benefits change, the cost of something is what you give up to get it, and people face tradeoffs. Consumers go through multifaceted buying behavior when they are greatly involved in a purchase and think that there are significant differences existing among brands. Dissonance-Reducing buying behavior consumers are highly involved in a purchase but sees little differences in the brand. Habitual buying behavior has low consumer involvement and the absence of significant brand differences. Taking an example from the article, “5 Behavioral Economics Principles Marketers Can't Afford to Ignore.” The Power of Free can change the consumer’s mindset. Economics stated that supply and demand are central concepts. Market price for any commodity is resolute by the outcome of supply and demand. The textbook explains that supply and demand are closely related to each other. Demand is the quantity of the product the customer is willing to buy at a given price, assuming all other factors remains unchanged (ceteris...
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... * * Impulse Buying: Its Relation to Personality Traits and Cues Seounmi Youn, University of Minnesota Ronald J. Faber, University of Minnesota ABSTRACT - Much of the work on impulse buying has been concerned with defining and measuring the concept. Less effort has been directed toward determining the factors that underlie the tendency to buy impulsively. This study looks at the relationship between impulse buying tendencies and three general personality traitsClack of control, stress reaction, and absorption. Additionally, this study identifies several different types of internal states and environmental/ sensory stimuli that serve as cues for triggering impulse buying. Internal cues include respondents’ positive and negative feeling states. Environmental/sensory cues encompass atmospheric cues in retail settings, marketer-controlled cues, and marketing mix stimuli. Relationships between the three personality traits and specific impulse buying cues are also examined, along with differences among high and low impulse buyers in their sensitivity to various cues. [ to cite ]: Seounmi Youn and Ronald J. Faber (2000) ,"Impulse Buying: Its Relation to Personality Traits and Cues", in Advances in Consumer Research Volume 27, eds. Stephen J. Hoch and Robert J. Meyer, Advances in Consumer Research Volume 27 : Association for Consumer Research, Pages: 179-185. Advances in Consumer Research Volume 27, 2000 Pages 179-185 IMPULSE BUYING: ITS RELATION TO PERSONALITY...
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...friends and family discounts … free shipping if you spend over $150! For an estimated 6% of Americans with compulsive buying tendencies, this is a tough time of the year. "The whole culture conspires against us in the holiday season," says April Lane Benson, a Manhattan psychologist who has treated compulsive shoppers for 15 years. Besides tempting sales, pressure to top last year's gifts and the urge to shop for oneself, she says, "the holidays bring up a lot of unfulfilled longing for some people—and that's one reason why they shop, as a salve for disappointment." While the stereotypical compulsive shopper is traditionally a woman in her 30s, experts say the ease and speed of Internet shopping is luring more men and more young people. Over Black Friday weekend, men outspent women $484 to $317, on average, according to the National Retail Federation. Men also spent an average of $200 online—twice as much as the average woman. In a 2005 survey of 195 U.K. teenagers, who grew up with the Internet, 44% showed signs of compulsive shopping habits, according to research published in the British Journal of Psychology. "The Internet is dangerous for compulsive buyers in two ways," says psychiatrist Elias Aboujaoude, director of the Impulse Control Disorders Clinic at Stanford University School of Medicine. Transactions move so quickly, it is hard to pause to reassess the buying urge, he says. The Internet also lets people dissociate from reality and assume a grandiose alter-ego fueled by virtual...
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