This is a solution of Literature Review Assignment part 1 in which we discuss the impulse buying behaviour can have both short-term and long-term consequences.

Introduction

Literature Review Assignment part 1

As noted by Ahmad &Vays (2011), the impulsive buying behaviour is a common trend in today’s market environment. According to Abideen&Saleem (2011), various factors influence people to engage in impulse buying. The impulse buying behaviour can have both short-term and long-term consequences. Further, Amos, Holmes &Keneson (2014) argue that the uncontrolled urge to consume is influenced by the mirror neurones, which trigger emotional responses in the brain that result in impulsive buying without consideration of the aftermath consequences. Similarly, Banerjee, Saha 2012) expound that impulsive buying is unintentional, unplanned and unthoughtful purchasing, which results in remorseful feelings and unhappiness in the long-term. Based on the circumstances under which the impulsive buying occurs, it is inevitable to avoid experiencing regretful feelings after the purchase. Many studies have investigated the factors influencing impulsive buying behaviour. Similarly, many researchers have attempted to examine the impact of impulsive Organization behavior both in the short-term and in the long-term. The previous studies on the factors influencing the level of impulsive buying behaviour are reviewed in this chapter. The researcher structured this chapter into five key sections. The first section is the introduction, which provides an overview and the structure of this chapter. The second section discusses the impulsive buying behaviour and factors influencing impulsive buying behaviour. The theories on consumer buying behaviour are discussed in the third section. The fourth section reviews the empirical studies on factors affecting the impulsive buying behaviour including window displays, income level and credit card offers. The last section provides a comprehensive summary statement of the chapter.

Impulsive Buying Behaviour

The impulsive buying behaviour is a study topic that has attracted various business researchers since 1950s (Bashar & Ahmed, 2012). According to Chang, Eckman& Yan (2011), many researchers agree that the impulsive buying behaviour is driven by emotions, hedonistic desires and massive advertisements in the retail environment. Dawson & Kim (2010) note that many companies facing stiff competition in the retail environment are applying stimuli marketing techniques to encourage impulse buying as a way of gaining a competitive edge. Further, as indicated by Dr Ahmed (2011), manipulative marketing stimuli techniques play a critical role in influencing consumer’s emotions to trigger impulse buying. The impulsive buying behaviour is categorised into four categories namely: pure impulse buying, suggestive impulse buying, reminder impulse buying and the planned impulse buying. As defined by Floh&Madlberger (2013), the pure impulse buying is a purchase behaviour that goes against the shopping anticipated patterns.

The level of impulsiveness in the pure impulse buying behaviour is very high due to its connection to emotions (Floh&Madlberger, 2013). As indicated by Gajanayake, Gajanayake and Surangi (2011), when a consumer is under the influence of pure impulse buying, he develops a strong emotional connection to the product and which can only be satisfied if the purchase is made. Further, Floh&Madlberger (2013) argue that the major factor triggering the pure impulse buying behaviour in the retail market environment is the cheap product and service prices. The second category of impulse buying is the suggestive impulsive buying behaviour. The key factor triggering suggestive impulsive buying behaviour is the retail store visualisation. Under suggestive impulsive buying behaviour, the consumer develops and interest to purchase a new product when he first comes into contact with it. The only way a shopper can be satisfied after coming into contact with a new product that interests him is to purchase it. According to the research conducted by Jain, Sharma &Narwal (2012), the purchasing decision under suggestive impulsive buying behaviour is irrational, functional and unplanned. The consumer does not buy the product because he had seen it before or heard of it but buys it because it interests him for the first time. The third category of impulse buying is the reminder impulsive buying behaviour (Jain, Sharma &Narwal, 2012). Unlike the suggestive and pure impulsive buying behaviours, in this category, the customer has adequate knowledge about the product. The last category of impulse buying is the planned impulsive buying behaviour. Under the planned impulsive buying behaviour, the consumer already knows what to buy but the product choice, brand, size or price are not predetermined (Kalla& Arora, 2011). Therefore, despite planning to make a purchase, the consumer will end up impulsively purchasing unplanned sizes and brands with varying prices. The planned impulsive buying behaviour differs from the planned purchase because, in the former, the consumer makes the actual decision to purchase at the points of sale (Karbasivar&Yarahmadi, 2011).

Factors Influencing Impulsive Buying Behaviour

Khandai, Agrawal Gulla (2012) categorise the factors influencing impulse buying behaviour into personality traits factors and environmental stimuli. The Multidimensional Personality Questionnaire (MPQ) developed by Khurram and Seemab (2013) categorises the three-dimensional personality factors that influence impulse buying into the lack of control (impulsivity), stress reaction and absorption. Control is a personality trait that can be used to monitor the impulse activity. However, as noted by Khurram and Seemab (2013), an impulse-driven person acts spontaneously, careless and reckless. Neurones trigger the emotional activities of impulse-driven individuals only get satisfaction after acquiring something of interest (Kinley, Josiam& Lockett, 2010). In the context of the retail environment, lack of control or impulsivity is a significant personality trait that influences impulse buying (Kinley, Josiam& Lockett, 2010).

The second personality trait that influences the impulsive buying behaviour is the stress reaction. Based on the research conducted by Liu &Sutanto (2012), stress reactions represent systematic personal deviations when responding to various situations linked to anxiety, guilt or distress. People suffering from stress tend to make decisions catastrophically without considering the accompanying repercussions. Further, Liu &Sutanto (2012) argue that stressful individuals are very sensitive, nervous and can make any spontaneous decision to provide some form of relief. In the context of the retail environment, people suffering from stress make impulsive purchasing decisions as a way of relief. As noted by Maymand&Ahmedinejad (2011), some prior studies on impulse buying have established that some individuals suffering from stress acknowledged that they gained relief after impulse buying. Additionally, as expounded by Mehta & Chugan (2012), the highly stress-reactive individuals get short-term gratification from impulsive buying. The last personality trait that influences impulsive buying is absorption. The highly absorptive individuals are likely to think unconventionally.

The research conducted by Mehta & Chugan (2013), absorption influences people on how they respond to stimuli and environmental cues linked to purchasing and the consumption of products. Environmental factors related to stimuli that influence the impulse buying behaviour include the store environment, window displays and the visual merchandising. As argued by Mehta & Chugan (2012), the impulse buying behaviour is created by stimuli. Therefore, the store set-up can influence consumers’ response when making purchasing decisions. The store settings have also undergone tremendous changes to match consumer choices, taste, preference and purchasing patterns. The window displays as explained by Muruganantham&Bhakat (2013), have both charm and charisma to influencing consumer choices. The visual merchandising (VM) is another environmental factor that influences consumer buying behaviour (Park & Forney, 2011). VM entails the arrangement of retail products in a way that clutches consumers’ attention, thus influencing the buying behaviour. However, the existing studies have not explicitly explored the impact of window displays, income level and credit card offers on the level of impulsive buying in the retail industry. The current research findings provide inconclusive and inadequate findings regarding how window displays, income level and credit offers influence the level of impulse buying. Most studies have put more emphasis on the impact of impulse buying on both the businesses and consumers. This research, however, will fill this gap by exploring conclusively how the window displays, income level and credit card offers influence the level of impulse buying in the Chinese retail industry.

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