This is a solution of Literature Review Assignment part 3 in which we discuss the impulse buying behaviour can have both short-term and long-term consequences.

Empirical Studies on Factors Influencing Impulsive Buying Behaviour

1 Influence of window displays on impulsive buying behaviour

Literature Review Assignment part 3

According to Mehta & Chugan (2012), the level of impulse buying is tremendously increasing in the retail industry. As expounded by Park & Forney (2011), window displaying is among the principal stimulators of impulse buying in the retail industry. Window displays as explained by Pereira et al., (2010) entails the effective presentation of products in large shop windows to capture the attention of the passing consumers. The window displays, therefore, is the exterior visual merchandising that attracts customers to interior stores (Khandai, Agrawal &Gulla, 2012). The window displays have four key atmospheric dimensions that draw the attention of the customers, which include visual, aural, smell and tactile. In the year 2012, Mehta and Chugan did a researched to investigate the effects of visual merchandising on customer impulsive buying behaviour in India. The case study utilised a sample of 184 customers who regularly visit the Indian retail stores. The study analysed the respondent’s responses using SPSS software and the mean as a measure of dispersion.

The study findings showed that there is a direct relationship between impulse buying with the visual merchandising. However, the study did not take a keen interest in how the window displays influence the level of impulse buying in the retail industry. The study only established that visual merchandising has a direct relation to impulse buying.Another research was conducted by Bashar & Ahmed (2012) to investigate the influence of floor merchandising and form displays on consumer’s impulsive buying behaviour in the retail industry. The research used a sample of 250 Indian customers. The researchers in this study applied Pearson correlation technique to study how impulsive buying behaviour correlated with floor merchandising, forum display and window displaying. The study’s findings revealed that the impulsive buying behaviour and the floor merchandising are positively correlated to window displays. However, the study did not take a keen interest in investigating the effect of the window display on the level of impulsive buying behaviour in the retail industry. Further, another research was conducted by Sharma, Sivakumaran & Marshall (2010) which used floor merchandising, forum displays and window displays as the independent variables. The study utilised a sample of 45 respondents comprising of both males and females. Similarly, the Pearson correlation techniques were used to analyse the data. The study’s findings established that there is a weak correlation between impulse buying and floor merchandising. However, there was a high correlation between window display and the impulsive buying behaviour. Similarly, the study failed to focus on how the window display influences the level of impulsive buying in the retail industry.
In 2011, Dr Tausef found out that the impulsive buying behaviour was different between the consumers of different genders, age-groups and learner education levels for the FMCG products in the retail industry. The impulsive buying behaviour was used as a dependent variable while the education level, gender and income levels were used as independent variables. The study used a sample of 160 customer respondents. The data was analysed using the factor analysis tool (SPSS 16.0). Further, Mehta & Chugan (2013) investigated the triggers of impulsive buying in the retail stores. The shopping frequency was used as an independent variable while the customer gender was used as the interdependent variable. The study used a sample of 100 customers and the data was analysed statistically using the Chi-square tool. The research findings established that the shopping frequency is not associated with gender. As evidenced by the above reviews, the current studies have not put more emphasis on how the window displays influence the level of impulsive buying. To bridge this identified gap, the researcher will assess the impact of window displays on the level of impulsive buying behaviour in the Chinese retail industry. This will as well address the first objective of this study.

2 Influence of income level on impulsive buying behaviour

According to Xiao & Nicholson (2013), the income level is one of the key demographic factors influencing the impulsive buying behaviour in retail markets. Further, Xiao & Nicholson (2013) note that most of the contemporary studies in the past have concluded that the level of income is a key influencer of the consumer behaviour. When reviewing various empirical studies, Wells, Parboteeah&Valacich (2011) postulate that most of the consumer behavioural scientists have come to a consensus that the social class is a key determinant of the buying behaviour. However, as explained by Podoshen & Andrzejewski (2012), the social classes are distinguished based on the level of income. The income level explicitly depends on the economic development of a country. Various studies have been conducted to examine whether the income level has an impact on the buying behaviour. The research conducted by Podoshen & Andrzejewski (2012) established that those consumers with a higher level of income seemed more confident when purchasing compared to those with low-income levels. The study utilised a sample of 175 participants in the Chinese electronic industry. The data was collected using the closed-ended questionnaires and analysed using the descriptive statistics. The study showed a high correlation between the frequencies of purchasing with the level of income. It, therefore, implies that those individual with a higher level of income tend to buy more products compared to those with low income. However, the key focus of this research was to determine whether the frequency of purchasing correlated with the level of income. The impact of the income level of the impulsive buying behaviour in the retail market environment was ignored. Additionally, the study conducted by Park & Forney (2011) revealed that the income level was a key influencer of the buyer behaviour in the Latvian tourism industry. The study used factor analysis as a statistical tool to analyse the data that was collected from a sample of 145 tourists. The researcher in the study wanted to establish how the level of income influenced the consumer’s spending behaviour. The study’s findings confirmed that consumer spending had a strong relationship with the level of income. Those tourists who had higher income levels tended to buy more compared with those with lower income levels. Just like other contemporary studies on consumer’s buying behaviour, the researcher failed to focus on how income levels influence the level of impulse buying.

Park & Forney (2011)’s assertions were supported by Karbasivar&Yarahmadi (2011) who argue that economists predict consumer buying choices based on their level of income. Karbasivar&Yarahmadi (2011) further conducted research to study the factors affecting buyer behaviour. The income level was used as one of the key demographic factors influencing the consumer buying behaviour. The other factors that were under investigation included age and gender. The study utilised multiple linear regression analysis to analyse the data collected from 140 respondents. The research outcome established that the income level and the education level were key determinants of the buyer behaviour. However, as evidenced by the current empirical studies, there is little effort to investigate the influence of the level of income on the impulse buying in the retail industry. As noted earlier, the social class is determined by the level of income. Earlier studies indicated that the social status of an individual can trigger him to engage in impulse buying (Kalla& Arora, 2011). The desire to look better in front of others encourages people to engage in impulsive buying. The upper social classes tend to have higher levels of income compared to middle and lower classes. However, this dissertation aimed at filling the existing gap by studying the influence of income level on impulse buying in the Chinese retail industry. The study will provide critical information that will help consumers monitor their level of their impulse buying in the retail industry.

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