RESEARCH PROPOSAL | To study the relation between the various types of consumers, according to VALS segmentation 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 which provides cheap and reliable products. Shop owners try to exploit impulses, which are associated with the basic need for instant satisfaction. A buyer in the shopping store might not specifically be shopping for the clothes. However, attractive clothing items displayed at prominent places will certainly attract buyer’s attention and trigger impulse buying behaviour in them. There are many factors that lead to impulse buying behaviour. Many researches have been done in this field to determine the factors.Situational factors are the external factors coming from the shopping environment when buyer comes into contact with particular visual stimuli (product or promotion) that create the unplanned purchase. At that instant the shopper may feel a sudden need to purchase a particular product that has attracted his/her attention (Youn, 2000). Some researchers attach more importance to the influence of individual characteristics of shoppers believing that individual behaviour is consistent in particular situations. On the other hand, advocates of situational variables stress that consistency in behaviour alters depending on situation. Namely, some studies reveal that consumer behaviour is conditioned by situation (Belk, 1974; Mattson & Dubinsky, 1987) ranging from 4% to 43% of total behavioural variance, which points to the situational variables as the very reason for the change in stability of individual factors (Mattson & Dubinsky, 1987). According to Belk (1974, p. 157) situation is a set of all the factors ''particular to a time and place of observation which do not follow from a knowledge of personal (intra-individual) and stimulus (choice alternative) attributes, and which have a demonstrable and systematic effect on current behaviour.'' Thus Belk’s taxonomy of situational factors includes five elements: (1) physical surrounding, (2) social surrounding, (3) time, (4) shopping task and (5) previous conditions with which the consumer enters the shopping surrounding or which result from the shopping surrounding (Belk, 1975). Internal factors of the shopping area or the physical surrounding include: (1) general interior design – colour, lighting, aroma, music, equipment, etc.; (2) arrangement of equipment and merchandise within the store; (3) display of merchandise; (4) point of sale promotional materials (Mihić, 2002., p. 82.). In addition to this, the temperature and presence of other people in the surrounding (Coloma &Kleiner, 2005), i.e. social shoppers. Moreover, the more time is available, the higher is the chance for unplanned buying (Iyer, 1989; Iyer et al., 1989; Herrington and Capella, 1995; Nicholls et al., 1997; Underhill, 1999, Anić&Radas, 2006(a),) especially when there is no buying task (Beatty & Ferrell, 1998). Other additional buying motivators are the price discounts or sales (Parsons, 2003; Virvilaite et al., 2009); store accessibility and sales staff (Aylott& Mitchell, 1998) as well as the location (Hart & Davies, 1996).
We will try to determine the factors that lead to impulse buying behaviour in consumers. Also, we will determine which segment shows maximum impulse buying behaviour.The consumer segmentation has been done on the basis of VALS classification scheme.

3. Problem statement

To identify the factors that cause impulse buying behaviour in consumers and identify the consumer segment in VALS framework which shows highest impulse buying behaviour in the local apparel market.

4. Research Objectives

a. Identifying consumers of various groups according to VALS Segmentation and Framework. b. To study the buying pattern of apparel consumers across various groups. c. To study the relationship between shopping lifestyle of consumers, fashion involvement of consumers, pre-decision stage and post-decision stage of consumer purchase behaviour with the attitudinal and behavioural aspects of impulse buying behaviour. d. Define the factors that lead to impulse buying behaviour. e. Determine the consumer segment (segmented on VALS classification scheme) which shows maximum impulse buying behaviour.

5. Review of Literature

Consumers buy products and services and seek experiences that fulfill their characteristic and give shape, substance, and satisfaction to their lives. An individual's primary motivation determines what in particular aboutthe self or the world is the meaningful core that governs his or her activities. Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression. Consumers who are primarily motivated byIdeals are guided by knowledge and principles. Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

Marketing and consumer researchers over the period of forty years have tried to grasp the concept of Impulse buying and defined this terminology in their own perspectives, for which some research findings are discussed here. In a research conducted by Cobb and Hoyer (1986), impulse buying was defined as an unplanned purchase and this definition can also be found in the research of Kollat and Willett (1967). In another research by Rook (1987) reported that impulse buying usually takes place, when a consumer feels a forceful motivation that turns into a desire to purchase a commodity instantly. Beatty and Ferrell (1998) defined impulse buying as instantaneous purchase having no previous aim or objective to purchase the commodity. Stern (1962) found that products bought on impulse are usually cheap. Shopping lifestyle is defined as the behavior exhibited by purchaser with regard to the series of personal responses and opinions about purchase of the products as reported by Cobb and Hoyer (1986). They find that shopping life style and impulse buying behavior are closely related but only in the case of impulse buyers. The study also states that impulse purchasers fell in the middle as of the measurement tools used by the researchers, indicated that purchasers will not pick the first brand they spotted in the shopping mall.

In researches conducted by Cha (2001); Han et al., (1991); Ko (1993) it is reported that impulse buying behavior regarding fashion products are associated with patterns like chaste, repeated emotions as well as fashion-oriented impulse buying behaviors. These facts were also quoted by Park et al. (2006). The definition of fashion involvement basically relates to apparel associated with fashionable outfits. The findings of Han et al. (1991) quoted in response to fashion involvement of consumers, that it might enhance fashion-oriented impulse buying behaviors among those who habitually wear fashion outfits. Fairhurst et al. (1989) andSeo et al. (2001) found a direct association among fashion involvement and apparels purchase. Positive emotions are defined as affects and moods, which determine intensity of consumer decision-making reported by Watson and Tellegen (1985). Park (2006) found a positive relationship of positive emotions, fashion involvement and fashion-oriented impulse buying with the overall impulse buying behavior of the consumers. Ko (1993) reported that An Empirical Study of Consumer Impulse Buying Behavior in Local Markets 525 positive emotions may result into fashion related impulse purchase. The researches of Beatty and Ferrell (1998); Husman (2000); Rook and Gardner (1993); Youn and Faber, (2000) found that emotions strongly influence buying behaviors, which result into consumer impulse buying. Babin and Babin (2001) found that in stores consumer’s purchasing intentions and spending can largely be influenced by emotions. These emotions may be specific to certain things for example, the features of the items, customer self-interest, consumer’s gauge of evaluating items and the importance they give to their purchasing at a store. Piron (1993) found that the total of nine items, a combination of pre-decision and post-decision stages indicators, resulted into high significant differences and the values of correlations for unplanned purchases done by consumers resulted into higher value as compared to purchases done by consumers on impulse. Their study indicated that out of total questionnaires distributed which were 361, 53 were unplanned purchasers and 145 were impulse buyers (total= 198)

6. Segmentation Plan:
The sampling plan will depend upon the segmentation as per the VALS Segmentation. The VALS segmentation describes the consumers on the basis of values and life style in eight categories: Thinkers, Believers, Strivers, Achievers, Innovator, Experiencers, Makers and Survivors.
Since the scope of the study is to identify the segment most indulged into impulse buying as well as identifying the appropriate sample from the population. In the initial phase, the questionnaire will be circulated among 600 people to identify 30 sample units for each category. The study shows that out of 100 people 5% belong to the two ends of the continuum i.e. Achievers and Survivors. Thus 600 questionnaires will be taken for study.
The questionnaire will be distributed on the basis of convenience sampling which is a non-probabilistic sampling design.
This questionnaire consist of two parts Part A and Part B. Out of the 600 questionnaire Part A will be evaluated and based upon the characteristics according to the VALS framework 30 sample units from each category will be culled out and then Part B will be evaluated which gives us an insight into the buying habits and other preferences and perceptions.
‘Consumer Behaviour By Leslie lazurknuk and Leon G Schiffman’
We will also take into consideration that in case we do not get the required sample of 30 each we will again as per the requirement go for the next phase of the sampling in order to get the require sample.

7. RESEARCH HYPOTHESIS

Based on the analysis above, the following hypothesis can be stated-
H0: Strivers show the maximum relation to impulse buying behaviour.
H1: Strivers show the minimum relation to impulse buying behaviour.
The testing of the hypotheses is confined to the primary data collected from the area of New Delhi.

8. RESEARCH DESIGN
The impulse buying behaviour in apparels is a result of certain factors. Based on previous literature below are the factors that might lead the consumers to impulse buying behaviour:
(1) physical surrounding, (2) social surrounding, (3) time (4) shopping task and (5) previous conditions with which the consumer enters the shopping surrounding or which result from the shopping surrounding (6) general interior design – colour, lighting, aroma, music, equipment, etc.; (7) arrangement of equipment and merchandise within the store; (8) display of merchandise; (9) point of sale promotional materials
We will determine the major factors that contribute to impulse buying in Delhi local apparel market.
There are certain extraneous variables which drive the impulse purchase in apparels like: festive season, promotional activities (sale and discount), slowdown in economy, declining wages, nature of the job.
The research will take place in the markets of Delhi frequented by people from all income groups and then we will identify the buying behaviour of different segments like Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers and Survivors. The places identified for undertaking survey are Khan Market, South EX – 1 & 2, DLF Place, Select Citywalk, Ansal Plaza and Cannaught Place.
Stage1: This phase consists of questionnaire designing for culling out the appropriate sample. The sampling is done on the basis of VALS framework. The questionnaire will be circulated among 600 respondents to take 30 sample units for each category as describes in the VALS framework.
This will be an exploratory study.
Stage2: The questionnaire will be analysed and 240 sampling units are identified. Since there are eight categories and we intend to take 30 units of each category.
Stage3: The sample so obtained will be used for drawing the conclusion by using appropriate statistical tools like factor analysis and regression analysis.

9. RESULTS AND PRACTICAL UTILITY OF THE RESULTS
Consumers are very careful with the amount of money that they spend on any given day. But, they may also, however, make occasional impulse purchase. They buy goods without premeditation or planning.
In the consumer's daily life, unplanned impulse buying behavior accounts for a large proportion. Impulse buying behavior of consumer is quite high, but they tend to impulse buying for their own behavior without consciousness. Especially since the wide spread use of credit and debit card, people tend to purchase the product that they are tempted towards thinking that the money has to be paid later.

Marketing divisions exist solely to develop ways to encourage impulse purchases. They create point-of-sale advertising plans that are intended to increase the likelihood of spontaneous purchases. Many of these campaigns can be experienced within the checkout lines at various stores, suggestive sales made by advertisers or food sellers, or pop-up advertisements on websites. Given the link to negative emotions and potentially harmful consequences, impulse buying may be viewed as problematic consumer behavior.

10. SCHEDULING THE RESEARCH

S.NO. | Activity | Time (in day(s)) | | 1 | Creating the questionnaire for consumers | 3 | | 2 | Receiving the questionnaire responses | 6 | | 3 | Interpreting and Collating the data | 3 | | 4 | Collating and tabling the Responses | 4 | | 5 | Evaluating using Statistical tools | 3 | | 6 | Reporting | 2 | | | TOTAL | 21 | |

11. RESULTS AND OUTCOMES OF THE RESEARCH
The factors having the highest degree of correlation would be the ones which influence the impulse buying behaviour of the consumer the most. These would be the primary factors. The research data analysis would also help in identifying the Income group segment which shows highest impulse buying behaviour. The research would identify the factors affecting the Impulse buying behaviour of a consumer. On this basis we would identify the VALS segment which shows maximum impulse buying behaviour. Thus, with the help of this study, we would be able to state the personality characteristics that influence the impulse buying behaviour the most.

12. GLOSSARY OF TERMS

1. Impulse Buying Behavior - It is an unplanned decision to buy a product or service, made just before a purchase. 2. Local Market -Clients and customers who will buy a product in the region or area in which it is produced. 3. Buying pattern -Typical manner in which consumers purchase goods or services (or firms place their purchase orders) in terms of amount, frequency, timing, etc. 4. Consumer Segmentation – We have used VALS Consumer segments for our research. VALS classified the population into eight distinctive subgroups (segments) based on consumer responses to both attitudinal and demographic questions. Below are the segments: a. Innovators - Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. b. Thinkers - Thinkers are conservative, mature and satisfied customers who look for durability and value in the products they buy. They tend to base their decisions on firmly held principles. So they are very hard targets for competitors. Even they refer the brand to their friends/relatives, if they are really satisfied with content. c. Believers – Believers are strongly traditional and respect rules and authority. Because they are fundamentally conservative, they are slow to change and technology averse. They chose familiar products and established brands. d. Achievers – Achievers have goal-oriented lifestyles that center on family and career. They avoid situations that encourage a high degree of stimulation or change. They prefer premium products that demonstrate success to their peers. e. Strivers – Strivers are trendy and fun loving. They have little discretionary income and tend to have narrow interests. They favour stylish products that emulate the purchase of people with greater material wealth. f. Experiencers – Experiencers appreciate the unconventional. They are active and impulsive, seeking stimulation from the new, offbeat and risky. They spend a comparatively high proportion of their income on fashion, socializing and entertainment. g. Makers – Makers value practicality and self-sufficiency. They choose hands-on constructive activities and spend leisure time with family and close friends. Because they prefer value to luxury, they buy basic products. h. Survivors – Survivors lead narrowly focused lives. Because they have the fewest resources, they do not exhibit a primary motivation and often feel powerless. They are primarily concerned about safety and security, so they tend to be brand loyal and buy discounted merchandise. 5. Fashion involvement: In the context of consumer activity and fashion clothing, Fashion involvement is defined as the extent to which the consumer views the extent to which the consumer views the focal activity as the central part of their life, a meaningful and engaging activity in their life. High fashion clothing involvement implies greater relevance to the self (O'Cass, 2000).(fashion clothing consumption: antecedents and consequences of fashion clothing involvement, AronO'Cass, 2000) 6. Pre-decision stage - According to the differentiation and consolidation theory of decision making process by Swenson (1992, 1996), Pre-decision stage entails the processes of differentiation of an initially chosen alternative from the other alternatives. 7. Post-decision stage - It is the consolidation stage where the consumer tries to support the implementation of the decision and to protect the decision maker from regret at having made the wrong decision.(Decision making: cognitive models and explanations By Rob Ranyard, W. Ray Crozier, Ola Svenson) 8. Attitudinal aspect of consumer behavior - Attitude is defined as a mental, emotional or rational predisposition with regard to a fact, state, person or an object. Attitude is one of the psychological factors that influence consumer behavior. In the context of consumer behavior, the attitude of buyers towards all the relevant attributes of a product or services as well as the marketer and markets.

13. References

1. Babin, B. J. and Babin, L. (2001), “Seeking something different? A model of schema typically, consumer affect. Purchase intentions and perceived shopping value”, Journal of Business research, Vol. 54 No.2, pp. 89-96. 2. Beatty, S. E. and Ferrell, M. E. (1998), “Impulse buying: modelling its precursors”, Journal of retailing, Vol. 74 No. 2, pp. 169-191. 3. Bellenger, D. D., Robertson, D. and Hirschman, E. (1978), “Impulse Buying Varies by Product,” Journal of Advertising Research, 18 (December), 15-18. 4. Cha, J. (2001),”Planning and Unplanned apparel purchase typology and related variables”, unpublished thesis, Seoul National University, Seoul (consult Park link). 5. Cobb, C. J. and Hoyer, W. D. (1986),”Planned Versus Impulse Purchase Behavior”, Journal of Retailing, Vol. 62 No.4, pp. 384-409. Retrieved, May 16, 2007, from http://web.ebscohost.com 6. Dittmar, H. and Drury, J. (2000), “Self-image – is it bag? A qualitative comparison between ordinary and excessive consumers”, Journal of Economic Psychology, Vol. 21 No. 2, pp. 109-142. 7. Du Pont, D. N and Company. (1965), Consumer Buying Habits Studies, Wilmington, DE DuPont De Nemours and Company.