...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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...corner of her wandering eyes. Although Jane told herself she was just going to look around the store without buying anything, she suddenly feels the need to swipe her credit card and purchase the scarf. After two hours of contemplating buying the scarf, Jane finds herself purchasing three pairs of Loui Vuitton shoes and two Prada handbags, along with the enchanting emerald green Marc Jacobs scarf. Eventually Jane arrived at her home, she felt the guilt of spending so much money on products she did not need. She decides to return all of the items she purchased only to find out that the store she purchased them from has a no-return policy. Like Jane,...
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...COLLEGE STUDENTS’ APPAREL IMPULSE BUYING BEHAVIORS IN RELATION TO VISUAL MERCHANDISING by JIYEON KIM (Under the Direction of Dr. Brigitte Burgess) ABSTRACT Due to increasing competition and the similarity of merchandise, retailers utilize visual merchandising to differentiate their offerings from others’ as well as to improve the desirability of products. The purpose of this research is to examine the relationship between college students’ apparel impulse buying behaviors and visual merchandising. The result of the present study proves that there is a pivotal relationship between college students’ impulse buying behaviors and two type of visual merchandising practices: instore form/mannequin display and promotional signage. This study provides information as to why visual merchandising should be considered an important component of a strategic marketing plan in support of sales increase and positive store/company image. This study also provides insights to retailers about types of visual merchandising that can influence consumers’ impulse buying behaviors. INDEX WORDS: Impulse buying behavior, Visual merchandising COLLEGE STUDENTS’ APPAREL IMPULSE BUYING BEHAVIORS IN RELATION TO VISUAL MERCHANDISING by JIYEON KIM BS, The Catholic University of Korea, Republic of Korea, 1991 BFA, American Intercontinental University, 2000 A Thesis Submitted to the Graduate Faculty of The University of Georgia in Partial Fulfillment of the Requirements...
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...and the consumer impulse buying behavior. | | TABLE OF CONTENTS Executive Summary | 3 | Background of the problem | 3 | Problem Statement | 4 | Research Objectives | 4 | Review of Literature | 4 | Segmentation Plan | 5 | Research Hypothesis | 6 | Research Design | 6 | Results and Practical utility of the research | 6 | Scheduling the research | 7 | Results and outcomes of the research | 7 | Glossary of Terms | 8 | References | 9 | 1. Executive Summary The vibrant and exotic atmosphere of Delhi local markets can make shopping lots of fun. One of the biggest sectors is apparel sector. Local apparel markets in Delhi sell hundreds or thousands of products daily. It is not only famous in Delhi but people from all over India do their wedding shopping from Delhi shops which are cheap and of new fashion. People do planned as well as unplanned shopping from these local shops. It is usually seen that buyers purchase products which they have not planned and this phenomenon of unplanned purchasing is termed as impulse. There are many factors which lead to unplanned or impulsebuying. This leads us to determine the factors that lead to impulse buying behaviour in consumers as well as to determine which segment (based on VALS classification scheme) of consumers show the most impulse buying behaviour. 2. Background of the problem All over the world people prefer buying from local markets...
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...of Impulse Buying Behavior | Shristi Shakya Term VI | Table of Contents Chapter 1 1 Introduction 1 Background 1 Objectives of the Research 2 Statement of problem 2 Research Questions 2 Hypothesis 3 Need of the study 3 Limitations of the research 3 Chapter 2 3 Review of Literature 3 Literature Review 3 Theoretical Framework 3 Chapter 3 3 Research Design and Methodology 3 Research Design 3 Description of Population and Samples 3 Instrumentation 3 Data Collection Procedure: 3 Statistical tools used 3 Measurement: Scaling, Reliability and Validity 3 Bibliography 3 Chapter 1 Introduction Background An impulse purchase or impulse buy is an unplanned decision to buy a product or service, made just before a purchase (Wikipedia). Impulse buying is a sudden, compelling, hedonically complex purchase behavior in which the rapidity of the impulse purchase decision precludes any thoughtful, deliberate consideration of alternatives (Kacen, 2002). The speed of purchase decision prevents from any thoughts, considerations and studying other options or alternatives. Rook (1995) defines an impulse buying as follows: when a consumer experiences a sudden, often powerful, and persistent urge to buy something immediately. The impulse to buy is hedonically complex and may stimulate emotional conflict. The research on impulse buying behavior has many practical benefits and by revealing the relative importance of factors affecting the impulse buying...
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... 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 influence consumers to buy on impulse and what is the behavioral...
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...y (t ) = x(t + 2) sin(ω t + 2), ω ≠ 0 System B: y[n] = ( − 1 ) ( x[n] + 1) 2 System C: y[n] = ∑ x 2 [k + 1] − x[k ] k =1 n n Answer the following questions for each system and justify your answer. (a) Is the system linear? (b) Is the system time invariant? (c) Is the system causal? (d) Is the system stable? 2. We want to develop an edge detector that is robust against additive noise. Consider a discrete-time (DT) linear time-invariant (LTI) system H 2 with h2 [ n] = h[ n] ∗ h[ n + 1] as its impulse response shown below, where h[ n] = δ [ n] − δ [ n − 1] . (a) [4] Assume there is no noise, i.e., d [n] = 0 and x[n] = p[n] . Sketch the output y[n] of the system assuming the input p[n] to the system is the following signal: (b) [4] Assume the noise is d [ n] = −δ [ n + 1] and the input p[n] remains the same. Sketch the output y[n] of the system. (c) [4] In order to use system H 2 as a part of an edge detector, we would like to add an LTI system H s whose unit impulse response hs [n] is shown below. System H s smoothes out effect of noise on x[n] . The overall system can be represented as below: Sketch the output ys [n] of the system with d [n] and p[n] specified in Part (b). 3. [15] You are given the following 5 facts about a discrete time sequence x[n] : i. ii. iii. x[n] is real and odd. x[n] is periodic with period N = 6 . iv. v. ∑ n =< N > (−1) n / 3 x[n] = 6 j . 1 N ∑ n =< N > x[n] = 10 . 2 x[1] > 0 . Find an expression...
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...its response [pic] to a signal of the form [pic] for all [pic]. If a linear system is also time-invariant, then the responses [pic] will become [pic]. The combination of linearity and time-invariance therefore allows a system to be completely described by its impulse response [pic]. The output of the system [pic] is related to the input [pic] through the convolution sum as follows: [pic] Similarly, the output [pic] of a continuous-time LTI system is related to the input [pic] and the impulse response [pic] through the following convolution integral: [pic] The convolution of discrete-time sequences [pic] and [pic] represented mathematically by the expression given in [pic] can be viewed pictorially as the operation of flipping the time axis of the sequence [pic] and shifting it by [pic] samples, then multiplying [pic] by[pic] and summing the resulting product sequence over [pic]. This picture arises from the properties of linearity and time-invariance for discrete-time systems. The signal [pic] can be constructed from a linear superposition of delayed and scaled impulses, i.e. [pic] [pic] Since an LTI system can be represented by its response to a single impulse, the output of an LTI system corresponds to the...
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...1.4 The macroeconomic impacts of oil price shocks 1.4.1 A short history of a controversial topic Since the 1973 OPEC (Organization of Petroleum Exporting Countries) oil embargo, the role of rapid, unanticipated increases in oil prices has been a topic of intense interest, among both economists and the lay public. Considering the magnitude of widespread national recessions during the 1970s, the controversy surrounding research on the macroeconomics of oil price shocks may seem surprising: why would anyone doubt the capacity of oil price shocks to cause the major movements in GDP (Gross Domestic Product) which have been observed in so many countries? Possibly most important in fueling the controversy is the small share of GDP that oil and its close substitutes have comprised in most economies: 1.5% to 3% prior to the 1973 episode. Experienced macroeconomists doubted that even a sizeable shock to such a small part of the economy could have the observed effects. Second, the 1973 episode itself was not a clean experiment because a number of other major factors were emerging at the same time. The world economy was just getting off the post-Bretton Woods fixed exchange rate regime. A number of countries, including the United States, was teetering on the brink of recession at the time of the 1973 shock; in the United States in particular, monetary policy tightened right around the time of the 1973 shock. Separating these effects and deciding the role ...
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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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...every 30 adults suffer from compulsive shopping, it can be described as the human mentality of compulsive consumption, whether or not it is crucial for their needs or not. It is also stated as a mental disorder, referred to as oniomania, buying mania, compulsive consumption, compulsive shopping and addictive or impulsive buying. Marketers have always emphasized on how to encourage this consumption pattern among all consumers. A recent search has shown that in the area of disease theories, a model that is dominant metaphor used to increase both the drug addiction and alcoholism in many treatment program such as Alcoholics Anonymous. Within the market three characteristics have showed the common symptom of compulsive shopping that includes the presence of a drive, impulse, or urge to engage in the behavior, denial of the harmful consequences of engaging in the behavior and repeated failure in attempts to control or alter the behavior. The primary criterion to determine whether buying behavior is innocuous or potentially compulsive buying is whether or not such behavior is causing disruption in the normal life of the individual. One aspect of looking this is that it is an impact of marketer who is putting up such deals that their urge to buying the products is increasing. This can be explained by taking an example, a company is offering an exchange offer on a product and the extra payment has to be made through EMI than it is easier for any individual to buy as the payment has...
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...provoke some conflicts. If the person is caught in this repetitive behavior, he finally created a real addiction. We talk about addiction when an addictive behavior so largely it involves the subject that leads to a dependency. Conspicuous consumption is becoming a cultural problem in the society, leading to crippling consumer debt and our consumption is unsustainable both economically and environmentally. Consumerism goes hand-in-hand with a compulsive attitude. This compulsive attitude is a pathological behavior and is considered as physiological dependence, or a behavior addiction. It is considered a recurring behavior, which despite attempts to resist the urge occurs. A behavior is considered compulsive when it results from compelling impulses or urges and is inappropriate or disruptive (Ullman and Krasner 1969). There are individuals where consuming things, whatever it may be, from food to clothing, cars, collector artifacts or any other thing is seen as an intense action, a complete involvement that can hurt many other aspects in their lives. This is a compulsive...
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... Is it true that we shop more than men, that shopping pleases us on a bad day or we have this uncontrollable urge? Researchers agree that its much more than opening the wallet and removing the card. In fact, women complete many of the visits to a store or mall without purchasing anything. That’s because for women these visits also symbolize entertainment, creativity, pleasure and independence. Which matters much more than just buying, says Patricia Huddleston, consumer specialist at the University of Michigan, in her book behavior Consumer Behavior: Women and Shopping. But is there such thing as too much shopping? Shopping addiction is characterized by an uncontrollable urge to buy unnecessary and superfluous products and when the wild and compulsive consumption exceeds the financial capacity of the person it is when the problems begins. In this post we will see what is Compulsive Shopping Disorder, its main problems and how we can overcome it. What is shopping addiction? As mentioned earlier, shopping addiction is an uncontrollable impulse to buy products that a person does not need. This disorder ends up creating a relationship of dependency and tolerance. In other words, the feeling of compulsive shopping will grow progressively worsening over time, and sooner or later, it becomes a vicious cycle which is...
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...Are You a Shopaholic? 3 Steps To Fixing Your Addiction 1 Posted June 26, 2012 by Danica Saarah Nelson in Advice “The first step to recovering is admitting you have a problem,” is a cliché we hear all the time. But do you see overspending on constant shopping trips as a crucial life issue that’s nearly as harmful as drugs or alcohol? It can be! Spending your disposable income on unnecessary items (especially when they’re charged to your credit card) is a surefire way to an unsuccessful and unhappy future. Below are the first three steps you can take to curing your illness. Step 1 – Remove Yourself From ALL Mailing Lists It’s hard, but it’s the easiest way to avoid succumbing to the temptations of spending money on something you wouldn’t have otherwise if you weren’t victim to that specific e-mail. If you REALLY want to get exclusive information on a sale or get your hands on a coupon code, a simple Google Search will do the trick. Removing yourself from every mailing list you’ve subscribed to is your first step towards curing your spending habits! Step 2 – Ditch the Plastic. Adopt the Paper! This one is pretty simple. All you have to do is take your Credit and Debit Cards out of your wallet. People essentially spend less when they’re using cash because they can see for themselves how quickly it can decrease as opposed to when you’re using plastic, you just swipe and go. Ever change your mind about purchasing something because you don’t want to break your $20? Then...
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...Many people have only witnessed hoarding via television shows that brought the phenomenon to the public eye, but for me, it was a long-lived reality. For those who are unfamiliar with the concept of compulsive hoarding, it is defined as: (a) the acquisition of, and failure to discard, a large number of possessions; (b) clutter that preludes activities for which living spaces were designed; and (c) significant distress or impairment in functioning caused by the hoarding” (Frost & Hartl, 1996). My sister and I lived with a hoarder from the moment we were born, until we were old enough to move out on our own. Naturally, we grew up believing that it was normal for families to live in clutter. We started to question the condition of our household however, when our parents adamantly refused to have company over, whether it was family or friends. This “rule” would lead to many years of arguments and fights within the family, and I grew distant and angry with my parents as time passed. To this day, I am embarrassed and disgusted with my parents and the way they live. It is because of what I experienced that I decided to research hoarding and illustrate the detrimental effects faced by families living with a hoarder. As I mentioned previously, my parents were strictly against inviting people over. While hoarders may be willing to meet friends and family members outside of their homes, for example at restaurants or at the other person’s home, they generally refuse to allow anyone who does...
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