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Asian Journal of Research in Business Economics and Management Asian Journal of Research in Business Economics and Management Vol. 5, No. 5, May 2015, pp.170-187. ISSN 2249-7307 Asian Research Consortium www.aijsh.org Exploring The Effect Of Consumer Personality Factor And In-store Environmental Factors On Impulse Buying (Case study of Tehran Hyper Star chain store) Babak Somi a ,Gholamreza Bordbar b ,Majid Babazadeh c ,Farzaneh Heshmati d a Master of Business Management Marketing,Department of management,Yazd university,Iran b Assistant Professor,Yazd university,Iran c Master of Instructional Technology, Allameh Tabatabai university,Tehran,Iran d Master of Business Management Marketing,Department of management,Yazd university,Iran DOI NUMBER: 10.5958/2249-7307.2015.00116.4 : 170 Abstract This study is a try to explore the effect of in-store environmental factors as outside stimuli and personality factor as inside one. To measure model fitness, path analyses technique and to test hypothesizes SEM technique were used. Buyers of Hyperstar chain store in Tehran were selected as statistical society of this study which 147 sample was assigned and after distributing 161 questionnaires, 151of them was acceptable(with response rate of 93.7%). Qestionnaire validity was estimaed by sophisticated loading factors and reliability by Alpha Cronbach. This study cover 6 hypothesizes which by considering the results those people by type of N & E personality, are prepared in impulse buying and type of C personality are poor. Keywords: Impulse Buying, In-store Environmental factors, Personality, TOPSIS, PLS.

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Asian Journal

of Research in

Business Economics

and

Management Asian Journal of Research in Business Economics and Management Vol. 5, No. 5, May 2015, pp.170-187.

ISSN 2249-7307

Asian Research Consortium

www.aijsh.org

Exploring The Effect Of Consumer Personality Factor And

In-store Environmental Factors On Impulse Buying

(Case study of Tehran Hyper Star chain store)

Babak Somi a,Gholamreza Bordbar

b,Majid Babazadeh

c,Farzaneh Heshmati

d

aMaster of Business Management – Marketing,Department of management,Yazd university,Iran

b Assistant Professor,Yazd university,Iran

cMaster of Instructional Technology, Allameh Tabatabai university,Tehran,Iran

d Master of Business Management – Marketing,Department of management,Yazd university,Iran

DOI NUMBER: 10.5958/2249-7307.2015.00116.4

:

170

Abstract

This study is a try to explore the effect of in-store environmental factors as outside stimuli and personality

factor as inside one. To measure model fitness, path analyses technique and to test hypothesizes SEM

technique were used. Buyers of Hyperstar chain store in Tehran were selected as statistical society of this

study which 147 sample was assigned and after distributing 161 questionnaires, 151of them was

acceptable(with response rate of 93.7%). Qestionnaire validity was estimaed by sophisticated loading

factors and reliability by Alpha Cronbach. This study cover 6 hypothesizes which by considering the

results those people by type of N & E personality, are prepared in impulse buying and type of C

personality are poor.

Keywords: Impulse Buying, In-store Environmental factors, Personality, TOPSIS, PLS.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

171

1) Introduction

By the shift of marketing philosophy from production and product trend to sale trend followed by

marketing trend, consumers and their behaviors found a significant importance. Understanding the

method and reason of purchase by individuals has provided an increasing interest among researchers to

study decision making styles of consumers (Anic-Dami & Suleska-Ciunova, 2010).

Traditionally, consumers’ decision making process is often concentrated on understanding the needs,

searching for information, evaluation of alternatives, purchase, and post-purchase evaluations. It is

assumed in this process that consumers are rational decision makers; however, decision making processes

are not necessarily rational and before entering into the store. In fact, not all purchase decisions are

rational and some of them are taken due to external stimulies. Such a decision making process of a quite

short kind different from rational process is called an “Impulse Buying Behavior”. Purchase decision of

consumers in the stores is influenced by several factors which may be internal or external. Factors such as

cultural, economic and legal factors and factors which are within the scope of power of company such as

in-store factors can be considered as external factors. Motivation, perception, impulsivity, personality and

similar factors which are exclusive to the individual and arise from the inside of a person are considered

as internal factors.

Due to competitiveness of the market of their products, company can no longer neglect the tastes,

interests, demands and in general, the needs of customers. Therefore, concentration on different needs of

consumers and correct and due responding to their demands are considered as the most necessary task of

organizations to fulfill their objectives (Fernie,Freathy, Tan, 2001).

In this study we considered “Personality” of consumers as an internal factor and“In-store

environmental factors” as an External factor ofTehran Hyper Star buyers.

2) Research Literature

a) Impulse Buying

In the past, impulsive purchase was referred to as “Unplanned Purchase” (Kollat & Willett, 1976).

Unplanned purchase was called to all unexpected and unplanned purchaseswhich included impulse

buying as well (Hausman, 2000).

Researchers made a distinction between planned and unplanned purchases with impulse buying .That

view had no attention to impulsivity in purchase decisions while impulsive buying has a concept much

more complex that unplanned purchase. Impulsivity has not been planned knowingly and is resulted by

facing with motivations (Rook, 1987). Impulse buying includes purchases that cover a high level of

Emotions, less rational control and highly reactive behaviors (Weinberg &Gottwald, 1982).

Rook and Hock(1983) have introduced 5 fundamental elements of impulse buying:

- Sudden and spontaneous desire of activity (buying action)

- A mood of psychological instability

- Beginning of conflict and psychological disorder

- Decrease of rational evaluation

- Inattention to consequences of impulse buying.

In 1950s, when impulse buying had been recognized merely as a concept, it was considered simple and

one-dimensional. Piron (1991) stated that at that time, purchase was addressed by researchers before

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

172

consumer. One decade later, that view to impulse buying achieved a more developed understanding. It

was assumed in the literature of that time that buying without any plan was only a requirement for

impulse buying but it was not sufficient (stern, 1962; Kollat & Willett, 1969). The category of the idea of

irrationality of impulse buying was another significant development in the studies of impulse buying

(Sterm, 1962).

The studies conducted in 1980s by recognizing different factors affecting impulse buying and also the

different effect of similar situations on individuals contributed in a more complete understanding of

impulse buying (Rook, 1987; Beatty & Ferrell, 1998). This increased the importance of study of internal

factors of buyer. Fctors which have effect on impulse buying can be divided into two main categories;

internal factors and external factors. Factors such as manpower, sale conditions, environment, design and

size of store were considered as in-store (external) factors. Lack of continuity in behavior, impulsivity in

behavior, excitement seeking and lack of any thinking before action were considered as impulsivity

(internal) factors in buyer’s behavior.

b) Store Environmental factors

Retail atmosphere is a combination of different characteristics that forms purchase atmosphere (Baker et

al., 1994). Kotler (1973) has defined Store Atmosphere as the effort to design retail store environments to

produce specific emotional effects in the consumer that enhance purchase probability.

The term “Store Environment” is called to all physical and non-physical elements in a store which may be

under control to affect the behavior and customers and staff (Eroglu & Machleit, 1993). Many of retailers

and researches have acknowledged the importance of in-store environment as a means to provide

competitive distinction and advantage (Levy & Weitz, 1998; Iyer, 1989). This may help in drawing

customer’s attention and providing interest in environment (Peck et al., 2006). Buyers who like the

environment of store may spend much more money in the store due to the good feeling provided by the

store environment. Even if people have no good feeling upon entering into the store, the environment of

the store can make a good feeling in them and therefore, consumer will spend much more money than

what he/she intended to spend (Sherman et al., 1997). Such intuitive stimulation can also reduce self-

control and resistance of the individual and can provide a way for impulse satisfaction (Adelaar et al.,

2003). When a consumer concludes that goods and products are something more beyond their physical

aspects and they can meet their mental and physical desires, they can come along with impulse buying

behaviors more easily (Hausman, 2000). Therefore, marketers and retailers can make the environment

more complex and can make a relative atmosphere which can be useful to increase impulse buying

decisions. In-store stimulies are promotional techniques that increase unplanned and impulse buying of

products (Abratt, R. and Goodey, 1990). As it was mentioned earlier, the in-store environment include

different physical and non-physical factors and Baker (1986) classifies these in-store variables into

environment (characteristics of a store such as temperature, smell, lighting, sound and music), design

(such as architecture, color, arrangement and raw material) and social factors (social conditions, interest,

number, type and behavior of staff and customers).

Turley and Milliman (2000) classified store Atmosphere into 5 groups, namely External Variables,

General Interior Variables, Layout and Design Variables, Point of Purchase & Decoration Variables, and

Human Variables.

In this study, four factors associated with the atmosphere and environment inside the store were used and

another factor associated with the variables outside of the store were omitted which are all shown in table

1.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

173

Table 1. Atmospheric Variables

c) Personality

Personality is a series of physical, mental and behavioral traits which differentiates each individual

from others. The most important personality models include the following three models.

a) Eyseck 3-factor model: including extraversion versus introversion, neurotocism versus emotional

stability and psychoticism versus impulse control

b)Cattell 16-factor model:including 16 facors as mentioned in follow figure:

General interior

variables

Layout and

design variables

Point-of-purchase and

decoration variables

Human variables

Flooring and

carpeting

Space design

and allocation

Point-of-purchase displays Employee

characteristics

Color schemes Placement of

merchandise

Signs and cards Employee uniforms

Lighting Grouping of

merchandise

Wall decorations Crowding

Music Work station

placement

Degrees and certificates Customer

characteristics

P.A. usage Placement of

equipment

Pictures Privacy

Scents Placement of

cash registers

Artwork

Tobacco smoke Waiting areas Product displays

Width of aisles Waiting rooms Usage instructions

Wall

composition

Department

locations

Price displays

Paint and wall

paper

Traffic flow Teletext

Ceiling

composition

Waiting ques

Merchandise Furniture

Temperature Dead areas

Cleanliness

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

174

Figure 1. Cattell 16-factor model

c) Big Five Factor:NEO Five-Factor Inventory (NEO-FFI) by Costa and Crae (1998) called the big

five factor was generally confirmed and achieved its modern development after several

modification. These tests are still the most comprehensive personality tests and are to some extent

highly acceptable among trait approach psychologists. This model is used in this study as well.

table 1 shows the traits of the five-factor model.

Big Five FactorsTable 2.

Factors characteristics

Neuroticism emotional instability, anxiety, moodiness, irritability, and

sadness.

Extraversion excitability, sociability, talkativeness, assertiveness and high

amounts of emotional expressiveness.

Openness imagination and insight, and those high in this trait also tend to

have a broad range of interests

Agreeableness trust,altruism, kindness, affection, and other prosocial behaviors.

Conscientiousness high levels of thoughtfulness, with good impulse control and

goal-directed behaviors. Those high in conscientiousness tend to

be organized and mindful of details.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

175

d) Background of Impulse Buying

The following table shows findings of the most studies conducted on impulse buying.

Table 3. Background of impulse buying in abroad

Author Title of study

Kollat D T and Willet R P. (1976) Customer Impulse Purchase Behavior

Bellenger et al.(1978) Impulse Buying Varies by Product

Weinberg and Gottwald(1982) Consumer Buying as a result of Emotions

Abratt, R. and Goodey (1990) Unplanned Buying and In-store Stimuli in Supermarkets

Donovan et al.(1994)

Store atmosphere: An environmental psychology approach

Beatty S E and Ferrell M E. (1998) Impulse Buying: Modeling Its Precursors

Wood, M. (1998) Socio-economic status, delay of gratifcation, and impulse

buying

Hausman, A. (2000) A multi-method investigation of consumer motivations in

impulse buying behavior

Verplanken B , Herabadi A. (2001) Individual differences in impulse buying tendency: Feeling and

no thinking

Kacen J T and Lee J A. (2002) The Influence of Cul ture on Consumer Impul sive Buying

Behavior

Adelaar et al. (2003) Effects of Media Formats on Emotions and Impulse Buying

Intent

Verplanken et al.(2005) Consumer style and health: The role of impulsive buying in

unhealthy eating

Eun Joo Park et al. (2006)

A structural model of fashion-oriented impulse buying behavior

Mattila and Wirtz (2008) The role of store environmental stimulation and social factors

on impulse purchasing

Zhou and Wong (2008) Consumer Impulse Buying and In-Store Stimuli in Chinese

Supermarkets

Herabadi et al.(2009) Consumption experience of impulse buying in Indonesia:

Emotional arousal and hedonistic considerations

Tendai and Crispen(2009) In-store shopping environment and impulsive buying

Lai (2010) How financial attitudes and practices influence the impulsive

buying behavior of college and university students, Social

Behavior and and Personality

Hyo-Jung Chang et al. (2011) Application of the Stimulus-Organism-Response model to the

retail environment: the role of hedonic motivation in impulse

buying behavior.

Rong-Ho Lin et al. (2012) The Relationship Analysis Between Impulse Buying And

Regret For Impulse Buying Later.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

176

Tifferet and Herstein(2012) Gender differences in brand commitment, impulse buying, and

hedonic consumption.

Yoon(2012) Antecedents and Consequences of In-Store Experiences Based

on an Experiential Typology

Pornpitakpan and Jie Hui

Han(2013)

The effect of culture and salespersons’ retail service quality on

impulse buying

Floh and Madlberger(2013) The role of atmospheric cues in online impulse-buying

Badgaiyan and Verma (2014) Instrinsic factors affecting impulse buying behavior- Evidence

from India.

Lucas and koff(2014) The role of impulsivity and of self-perceived attractiveness in

impulse buying in women.

Amos, Holmes and keneson(2014) A meta-analysis of consumer impulse buying

3) Research Conceptual Model

Studies indicate that impulse buying is an important source of income for retailers. It has been estimated

that more than 50% of all store purchases are made on an impulse basis (Hausman, 2000). Almost 70% of

purchase decisions are made inside the stores (Berrell, 1995). 90% of consumers have experienced

impulse buying (Welles, 1986) and 30 to 50% of all purchases are classified by the buyers as impulse

buying (Cob & Hoyer, 1986). Today, purchase of new products are subject to impulse buying more than

planned buying (Kacen and Lee, 2002) and this has resulted in marketing actions(Rook, 1987). Therefore,

today companies allocated a significant budget to the studies in this field for a correct understanding of

the concepts of impulse buying and maximization of this behavior in the store environment (Millner,

2002). Review of the previous experimental researches indicated that each researcher has evaluated

different variables to assess impulse buying. In this study, considering the results of previous researches,

the in-store factors affecting impulse buying was assumed. Moreover, the researcher diagnosed

personality as the internal factor affecting impulse buying. The big 5-factor model was used to review the

effect of personality on impulse buying. The questions and hypotheses of the present study are as follows.

Research questions:

1) Does personality type of people affect impulse buying?

2) Do in-store stimulies affect impulse buying?

Research hypotheses:

The first main hypothesis: Personality of buyer has a positive effect on impulse buying.

o First hypothesis: Personality of N has a direct effect on impulse buying.

o Second hypothesis: Personality of E has a direct effect on impulse buying.

o Third hypothesis: Personality of O has a direct effect on impulse buying.

o Fourth hypothesis: Personality of A has a direct effect on impulse buying.

o Fifth hypothesis: Personality of C has a direct effect on impulse buying.

The second main hypothesis: In-store factors have a positive effect on impulse buying.

o Sixth hypothesis: In-store stimulies have a direct effect on buying.

Figure 2.Research Model

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

177

4) research Method

The goal of research can be divided into the series of developmental – functional researches. In the

second division, data are divided in terms of descriptive – analytic data. Statistical community include

buyers of Tehran Hyperstar. Sampling was made on a random basis by referring to these centers. The

following formula was used to determine the sample volume required for estimating the intended

parameter.

Due to the high number of questions of the questionnaire, sample was calculated in a confidence level of

90% in the manner that in which Z2 is set as 1.64 based on the table and S

2 was obtained at 0.545

considering the initial data input in SPSS. Level of error in the denominator is 0.1. By placing these

figures in the formula, the number of minimum sample is 147. Therefore, considering the number of

necessary samples and in order to ensure that the net returned amount is higher than the aforesaid amount,

161 questionnaires were prepared and distributed in Tehran Hyperstar. Since selection was made

randomly and different people refer to this center, distribution of questionnaire in the aforesaid place is

very desirable for the present study. In general, 151 questionnaires were used for statistical analysis

which shows a responding rate of 93.7%. In the present study, a major part of data was obtained by

questionnaire with 83 questions. In order to evaluate each of the main factors (store stimulies, personality

and impulse buying), propositions are used which were extracted in the research literature considering the

mentioned works.

Neuroticism

Extraversion

Openness

Agreeableness

Conscientiousness

Impulse Buying

Store Environmental Factors

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

178

a) Store Environmental factors

Each of the 42 sub-factors of internal environment of store was provided to the professors and marketing

students in terms of a questionnaire in order to determine which of the in-store factors is more important

in impulse buying. We ranked them by using Topsis technique and finally 12 sub-factors were used for

assessment in the questionnaire and the results are shown in table 3. It should be noted that extraction of

these 12 sub-factors from 42 sub-factors was made based on the view of experts and the main reason of

that is that it was impossible to input all the 42 sub-factors in the model.

Table 4. TOPSIS Analyses of Store Environmental Factors Output

Factors

Distance

from positive

ideal

Distance from

negative ideal c

1 Merchandise 3.7802 5.7802 0.6046

2 Space design and allocation 4.2670 6.6470 0.5949

3 Point-of-purchase displays 4.6471 6.6470 0.5885

4 Cleanliness 4.7349 6.7348 0.5872

5 Temperature 4.8602 6.9602 0.5839

6 Lighting 5.0388 7.0337 0.5829

7 Scents 5.0873 7.0871 0.5821

8 Music 5.7075 7.7037 0.5745

9 Price displays 6.0140 8.0139 0.5713

10 Employee characteristics 6.0274 8.0272 0.5711

11 Crowding 6.2208 8.2206 0.5692

12 Privacy 6.4686 8.4682 0.5669

b) Personality

The standard personality questionnaire which is known as NEO questionnaire and has 60 questions was

used to assess personality. Five dimensions of the questionnaire include Neuroticism(N), Extraversion

(E), Openness to experiences (O), Agreeableness (A) and Conscientiousness (C).

c) Impulse Buying

Due to the importance of assessment of these factors with several previous studies, the assessments used

by Hyo-Jung Chang(2011) which has three questions were used.

In this research, 30 people were randomly selected before distribution of questionnaires and then the

questionnaires were given to them. After collecting the questionnaires, Cronbach'salpha coefficient was

calculated by using SPSS 21 software which was obtained at 0.87 indicating high reliability of the

questionnaire. In this study, Path analysis and Partial Least Squares are used. Microsoft Office Excel

2010 and IBM SPSS 21 software packages were used to regulate and classify statistical calculations.

Excel software was used to classify the initial calculation data. Some of the statistical tests and

estimations were also conducted by using IBM SPSS 21 statistical software. Moreover, SmartPLS

software was used to evaluate the hypotheses and confirmation of conceptual model.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

179

5) Research Findings

a) Determination of data normality and abnormality:

Kolmogorov – Smirnov (K-S) test was used to determine data normality and abnormality and the

presumption of data normality was rejected with a confidence of 0.05 and the data was not normal. Due

to abnormality of data, Spearman test was used to review data correlation in which the presumption of

independence of data was rejected and the data was dependent.

In SEM methodology, first it is necessary to study the validity of the structure under study in order to

specify if the indexes selected for measuring the intended structures are equally accurate. For this

purpose, Conformity Factor Analysis (CFA) was used. PLS modeling is performed in two stages. In the

first stage, measurement model (external model) is reviewed by reliability, validity and conformity factor

analyses and in the second stage, the structural model (internal model) is reviewed by estimating the path

between the variables (Hulland, 1999).

b) Evaluation of Measurement Model (External Model)

1) Structural Confidence Reliability Coefficient (CR): This coefficient varies from zero to one. Amounts higher than 0.7 are accepted and amounts less than 0.6

are considered as inappropriate (Werts et al., 1974).

Table 5. Confidence Reliability (CR)

CR variables

0.816 Impulse Buying

0.843 In-store environment stimulies

0.845 Type A

0.867 Type C

0.827 Type E

0.754 Type N

0.899 Type O

2) Average Variance Extracted (AVE): It is used for convergence validity and shows high correlation between the indexes of a structure as

compared to correlation of indexes in other structures. The amount of this coefficient varies from zero to

one. Amounts higher than 0.5 are accepted (Fornell and Larcker, 1981).

Table 6. Average Variance Extracted

AVE variables

0.596 Impulse Buying

0.693 In-store environment stimulies

0.723 Type A

0.633 Type C

0.537 Type E

0.588 Type N

0.625 Type O

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

180

3) Cronbach's Alpha Coefficient:

Cronbach's alpha coefficient is another factor that varies from zero to one. Amounts higher than 0.7 are

accepted (Cronbach, 1951). In the following table, this coefficient is presented for each factor.

Table 7. Cronbach's Alpha Coefficient

Note: Questions 14, 16, 20 and 22 for personality of C were omitted due to lack of suitable loading

factor. Questions 8, 10, 11 and 12 of internal store stimulies were also omitted due to lack of suitable

loading factor and were not input into the analysis.

4) Fornell-Larcker Index:

Fornell - Larcker Index refers to the issue that the second root of the Average Variance Extracted(AVE)

for each structure is larger than the amounts of correlation of that structure with other structures. Amounts

of correlation between hidden variables with the existing dimensions in the model in latent variable

correlations section are available in Smart PLS software and its characteristic is that its main diameter is

one (Fornell and Larcker, 1981).

Table 8. First Input of Latent Variables

Type A Type C Type E Type N Type O

Impulse

Buying

In-store

environment

stimulies

Type A 1 0 0 0 0 0 0

Type C 0.78 1 0 0 0 0 0

Type E 0.43 0.54 1 0 0 0 0

Type N 0.32 0.58 0.64 1 0 0 0

Type O 0.23 0.35 0.26 0.61 1 0 0

Impulse

Buying 0.43 0.76 0.47 0.34 0.75 1 0

In-store

environment

stimulies

0.45 0.43 0.29 0.52 0.45 0.49 1

Cronbach's alpha variables

0.827 Impulse Buying

0.836 In-store environment stimulies

0.866 Type A

0.733 Type C

0.756 Type E

0.744 Type N

0.745 Type O

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

181

We replace the amounts available on the main diameter of matrix with the second root of Average

Variance Extracted (AVE) which was mentioned above and finally we reach the following table.

Table 9. Fornell-Larcker

Type A Type C Type E Type N Type O Impulse

Buying

In-store

environment

stimulies

Type A 0.77 0 0 0 0 0 0

Type C 0.78 0.83 0 0 0 0 0

Type E 0.43 0.45 0.85 0 0 0 0

Type N 0.32 0.58 0.64 0.79 0 0 0

Type O 0.23 0.35 0.26 0.61 0.73 0 0

Impulse

Buying

0.43 0.76 0.47 0.34 0.75 0.76 0

In-store

environment

stimulies

0.45 0.34 0.29 0.52 0.45 0.49 0.79

As it was said, the amounts available on the main diameter of matrix should be larger than all the

amounts available in the corresponding column, but as it can be seen in the table, Fornell - Larcker Index

is not fulfilled in the columns related to the personality of O and A. After drawing the conceptual model

and initial PLS analysis, conceptual model of research in the standard coefficients condition are as

follows.

Figure 3. Conceptual model of research in standard coefficients state

0.00

0.00

0.00

0.00

0.00

N

E

O

A

C

0.00

0.59

0.486

0.671

0.223

0.071

-0.242

0.374

Impulse Buying

Store Environmental Factors

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

182

c) Evaluation of Structural Model (Internal Model)

1) R2 Determination Coefficient:

The first key criterion which is used for this purpose in the software is the very coefficient which

measures the association between the amount of described variance of a latent variable and the general

amount of variance. The amount of this coefficient varies from zero to one. The higher the amount is, the

more appropriate it will be. Chin (1988) evaluates the amounts close to 0.67, 0.33 and 0.190 as

appropriate, normal and weak, respectively.

Table 10.R2 Coefficient

R2

Impulse Buying 0.59

2) Path Coefficients:

Size of path coefficient shows the strong association between the two latent variables. Some researchers

believe that a path coefficient larger than 0.1 shows a certain level of effect in the model. Table 11 shows

these coefficients for variables.

Table 11. Path Coefficients

Variables Path Coefficient

In-store environment stimulies ←

Impulse Buying

0.374

Type N ←Impulse Buying 0.486

Type E ←Impulse Buying 0.671

Type O ←Impulse Buying 0.223

Type A ←Impulse Buying 0.071

Type C ←Impulse Buying 0.242 -

3) t Test:

Path coefficients should be significant at least with a confidence level of 0.05 (t should be larger than

1.96) which can be seen on the model using Booststrapping technique. For this purpose, the two-sided t

test was used.

The coefficients should be significant at least in a confidence level of 0.05 (t is larger than 1.96) which

can be seen on the model by using Bootstraping technique. Two-sided t-test was used for this purpose. By

using the internal model we can review the hypotheses. By comparing the amount of t calculated for

coefficient of each path, we can review the confirmation or non-confirmation of research hypothesis. In

this way, if statistic t is larger than absolute value of 1.96, path coefficient is significant in a confidence

level of 95% and if statistic t is larger than 2.58, path coefficient is significant in a confidence level of

99%. The following figure depicts the results of conceptual model test of research in the state of

significance of coefficients. Calculated amounts on the arrows indicate the amount of statistic t.

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

183

Figure 4. Conceptual model of research in significance coefficients state( t value)

N

E

O

A

C

2.143

2.315

1.223

0.659

2.428

1.73

Impulse Buying

Store Environmental Factors

5) Discussion & Conclusion

Table (12) shows the results obtained from testing the hypotheses in terms of path coefficients together

with their level of significance.

Table 12.Hypothesis Result

Personality and Impulse Buying (Hypotheses 1-5):

In reviewing the first hypothesis for the effect of N type personality on impulse buying under study, it

should be said that the path coefficient in this hypothesis was obtained at 0.486 which showed a positive

effect between these two factors and this positive relation was significant in a level of 95% considering t

Research hypotheses Path

coefficient

Statistic t Significance

level

Hypothesis result

In-store environment stimulies

←Impulse Buying

0.374 1.730 <0.05 Rejected

Type N ← Impulse Buying 0.486 2.143 <0.05 Confirmed

Type E ← Impulse Buying 0.671 2.315 <0.05 Confirmed

Type O ← Impulse Buying 0.223 1.223 <0.05 Rejected

Type A ← Impulse Buying 0.71 0.659 <0.05 Rejected

Type C ← Impulse Buying -0.242 2.428 <0.05 Confirmed

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

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statistic (2.143). This result is consistent to the studies made by Otero-Lópezand Villardefrancos(2013).

He has stated that Neuroticism has a direct effect on additional buying.

In reviewing the second hypothesis for the effect of personality E type personality (extroverted) on

impulse buying, path coefficient in this hypothesis was obtained at 0.671 which showed a positive effect

between these two factors and this positive relation was significant in a level of 95% by considering the t

statistic (2.315). The studies conducted by Verplaken and Herabadi (2005) also discussed the positive

effect of E on impulse buying.

In reviewing the third hypothesis for the effect of O type personality (Opennessto experience) on the

impulse buying under study, path coefficient in this hypothesis was obtained at 0.223 which showed a

positive effect between these two factors, but this positive relation was not significant in a level of 95%

by considering t statistic (1.223).

In reviewing the fourth hypothesis for the effect of A type personality (Agreeableness) on the impulse

buying under study, path coefficient in this hypothesis was obtained at 0.071 which showed a positive yet

quite weak effect between these two factors, but this positive relation was not significant in a level of

95% by considering statistic t (0.695).

In reviewing the fifth hypothesis for the effect of C type personality (Conscientiousness) on the impulse

buying under study, path coefficient in this hypothesis was obtained at -0.242 which showed a negative

effect between these two factors and this negative relation was significant in a level of 95% considering t

statistic (2.424).

It can be concluded thatNeuroticism and Extroverted people are more prepared for impulse buying.

Conscientiousness people will also experience less impulse buying.

Store stimulies and Impulse Buying (Hypothesis 6):

In reviewing the sixth hypothesis, path coefficient for in-store stimulies on impulse buying was obtained

at 0.374 which shows its positive effect; however, considering t statistic (1.73) it was not significant in a

level of 95%. It can be concluded that in-store stimulies are not alone effective in impulse buying. The

studies conducted by Adelaar et al. (2003) and Wood (2005) both consider the effect of in-store stimulies

in increasing impulse buying. Popai – Dupont (1977) argued that 38% of unplanned purchases are related

to retailing environment. Abratt and Goodey argue that 70% of unplanned purchases are due to the

techniques promoted in the store environment. Zhou and Amy Wong. (2008)also argue the positive

effect of posters and in-store stimulies. Tendai and Krispin (2009) argue the positive effect of in-store

show, behavior of staff, music and smell on impulse buying. Kollat and Willet (1976),

POPAI/Dupont(1977) have emphasized on the effect of store stimulies on impulse buying.

Applied recommendations:

a) As it was said, N type personalities and E type personalities have a positive relation with impulse

buying. It means that if these people are placed in special conditions, they will experience impulse

buying. In these two groups of personality type therefore, impulse buying should increase by using store

stimulies such as diversification of goods, cleanliness, suitable temperature, lighting, smell, music,

placing the goods in a suitable place and other marketing strategies. Therefore, chain stores are

recommended to identify dominant personality types that buy special goods from the stores to optimally

use store stimulies so that impulse buying is fulfilled followed by increased sale and profit.

b) Those stores in which C type personality is the dominant personality type of buyers should implement

special strategies to increase impulse buying among them because this kind of people have a closed and

Somi et al. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 5, pp. 170-187

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formed personality and usually buy things on a stereotype basis. Therefore, if the customers are of this

type, other techniques should be used to increase impulse buying among them.

d) This study indicates that store stimulies have little effect on impulse buying and people usually take

measure in impulse buying considering their occasional state in the store.

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