journal of social sciences & humanitiesrepository.unib.ac.id/17453/1/journal of social sciences...

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Journal of Social Sciences & Humanities

About the Journal

OverviewPertanika Journal of Social Sciences & Humanities (JSSH) is the official journal of Universiti Putra Malaysia published by UPM Press. It is an open-access online scientific journal which is free of charge. It publishes the scientific outputs. It neither accepts nor commissions third party content.

Recognized internationally as the leading peer-reviewed interdisciplinary journal devoted to the publication of original papers, it serves as a forum for practical approaches to improving quality in issues pertaining to social and behavioural sciences as well as the humanities.

JSSH is a quarterly (March, June, September and December) periodical that considers for publication original articles as per its scope. The journal publishes in English and it is open to authors around the world regardless of the nationality.

The Journal is available world-wide.

Aims and scopePertanika Journal of Social Sciences & Humanities aims to develop as a pioneer journal for the social sciences with a focus on emerging issues pertaining to the social and behavioural sciences as well as the humanities.

Areas relevant to the scope of the journal include Social Sciences—Accounting, anthropology, Archaeology and history, Architecture and habitat, Consumer and family economics, Economics, Education, Finance, Geography, Law, Management studies, Media and communication studies, Political sciences and public policy, Population studies, Psychology, Sociology, Technology management, Tourism; Humanities—Arts and culture, Dance, Historical and civilisation studies, Language and Linguistics, Literature, Music, Philosophy, Religious studies, Sports.

History

Pertanika was founded in 1978. A decision was made in 1992 to streamline Pertanika into three journals as Journal of Tropical Agricultural Science, Journal of Science & Technology, and Journal of Social Sciences & Humanities to meet the need for specialised journals in areas of study aligned with the interdisciplinary strengths of the university.

After almost 25 years, as an interdisciplinary Journal of Social Sciences & Humanities, the revamped journal focuses on research in social and behavioural sciences as well as the humanities, particularly in the Asia Pacific region.

Goal of Pertanika

Our goal is to bring the highest quality research to the widest possible audience.

QualityWe aim for excellence, sustained by a responsible and professional approach to journal publishing. Submissions are guaranteed to receive a decision within 14 weeks. The elapsed time from submission to publication for the articles averages 5-6 months.

Abstracting and indexing of PertanikaPertanika is almost 40 years old; this accumulated knowledge has resulted in Pertanika JSSH being abstracted and indexed in SCOPUS (Elsevier), Thomson (ISI) Web of Science™ Core Collection Emerging Sources Citation Index (ESCI). Web of Knowledge [BIOSIS & CAB Abstracts], EBSCO and EBSCOhost, DOAJ, Google Scholar, TIB, MyCite, ISC, Cabell’s Directories & Journal Guide.

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sFuture visionWe are continuously improving access to our journal archives, content, and research services. We have the drive to realise exciting new horizons that will benefit not only the academic community, but society itself.

Citing journal articles

The abbreviation for Pertanika Journal of Social Sciences & Humanities is Pertanika J. Soc. Sci. Hum.

Publication policyPertanika policy prohibits an author from submitting the same manuscript for concurrent consideration by two or more publications. It prohibits as well publication of any manuscript that has already been published either in whole or substantial part elsewhere. It also does not permit publication of manuscript that has been published in full in Proceedings.

Code of EthicsThe Pertanika Journals and Universiti Putra Malaysia takes seriously the responsibility of all of its journal publications to reflect the highest in publication ethics. Thus all journals and journal editors are expected to abide by the Journal’s codes of ethics. Refer to Pertanika’s Code of Ethics for full details, or visit the Journal’s web link at http://www.pertanika.upm.edu.my/code_of_ethics.php

International Standard Serial Number (ISSN)An ISSN is an 8-digit code used to identify periodicals such as journals of all kinds and on all media–print and electronic. All Pertanika journals have ISSN as well as an e-ISSN.

Journal of Social Sciences & Humanities: ISSN 0128-7702 (Print); ISSN 2231-8534 (Online).

Lag timeA decision on acceptance or rejection of a manuscript is reached in 3 to 4 months (average 14 weeks). The elapsed time from submission to publication for the articles averages 5-6 months.

AuthorshipAuthors are not permitted to add or remove any names from the authorship provided at the time of initial submission without the consent of the Journal’s Chief Executive Editor.

Manuscript preparation

Refer to Pertanika’s Instructions to Authors at the back of this journal.

Most scientific papers are prepared according to a format called IMRAD. The term represents the first letters of the words Introduction, Materials and Methods, Results, And, Discussion. IMRAD is simply a more ‘defined’ version of the “IBC” [Introduction, Body, Conclusion] format used for all academic writing. IMRAD indicates a pattern or format rather than a complete list of headings or components of research papers; the missing parts of a paper are: Title, Authors, Keywords, Abstract, Conclusions, and References. Additionally, some papers include Acknowledgments and Appendices.

The Introduction explains the scope and objective of the study in the light of current knowledge on the subject; the Materials and Methods describes how the study was conducted; the Results section reports what was found in the study; and the Discussion section explains meaning and significance of the results and provides suggestions for future directions of research. The manuscript must be prepared according to the Journal’s Instructions to Authors.

Editorial process

Authors are notified with an acknowledgement containing a Manuscript ID on receipt of a manuscript, and upon the editorial decision regarding publication.

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es Pertanika follows a double-blind peer-review process. Manuscripts deemed suitable for publication are usually sent to reviewers. Authors are encouraged to suggest names of at least three potential reviewers at the time of submission of their manuscript to Pertanika, but the editors will make the final choice. The editors are not, however, bound by these suggestions.

Notification of the editorial decision is usually provided within ten to fourteen weeks from the receipt of manuscript. Publication of solicited manuscripts is not guaranteed. In most cases, manuscripts are accepted conditionally, pending an author’s revision of the material.

As articles are double-blind reviewed, material that might identify authorship of the paper should be placed only on page 2 as described in the first-4 page format in Pertanika’s Instructions to Authors given at the back of this journal.

The Journal’s peer-reviewIn the peer-review process, three referees independently evaluate the scientific quality of the submitted manuscripts.

Peer reviewers are experts chosen by journal editors to provide written assessment of the strengths and weaknesses of written research, with the aim of improving the reporting of research and identifying the most appropriate and highest quality material for the journal.

Operating and review processWhat happens to a manuscript once it is submitted to Pertanika? Typically, there are seven steps to the editorial review process:

1. The Journal’s chief executive editor and the editorial board examine the paper to determine whether it is appropriate for the journal and should be reviewed. If not appropriate, the manuscript is rejected outright and the author is informed.

2. The chief executive editor sends the article-identifying information having been removed, to three reviewers. Typically, one of these is from the Journal’s editorial board. Others are specialists in the subject matter represented by the article. The chief executive editor asks them to complete the review in three weeks.

Comments to authors are about the appropriateness and adequacy of the theoretical or conceptual framework, literature review, method, results and discussion, and conclusions. Reviewers often include suggestions for strengthening of the manuscript. Comments to the editor are in the nature of the significance of the work and its potential contribution to the literature.

3. The chief executive editor, in consultation with the editor-in-chief, examines the reviews and decides whether to reject the manuscript, invite the author(s) to revise and resubmit the manuscript, or seek additional reviews. Final acceptance or rejection rests with the Edito-in-Chief, who reserves the right to refuse any material for publication. In rare instances, the manuscript is accepted with almost no revision. Almost without exception, reviewers’ comments (to the author) are forwarded to the author. If a revision is indicated, the editor provides guidelines for attending to the reviewers’ suggestions and perhaps additional advice about revising the manuscript.

4. The authors decide whether and how to address the reviewers’ comments and criticisms and the editor’s concerns. The authors return a revised version of the paper to the chief executive editor along with specific information describing how they have answered’ the concerns of the reviewers and the editor, usually in a tabular form. The author(s) may also submit a rebuttal if there is a need especially when the author disagrees with certain comments provided by reviewer(s).

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s5. The chief executive editor sends the revised paper out for re-review. Typically, at least one of

the original reviewers will be asked to examine the article.

6. When the reviewers have completed their work, the chief executive editor in consultation with the editorial board and the editor-in-chief examine their comments and decide whether the paper is ready to be published, needs another round of revisions, or should be rejected.

7. If the decision is to accept, an acceptance letter is sent to all the author(s), the paper is sent to the Press. The article should appear in print in approximately three months.

The Publisher ensures that the paper adheres to the correct style (in-text citations, the reference list, and tables are typical areas of concern, clarity, and grammar). The authors are asked to respond to any minor queries by the Publisher. Following these corrections, page proofs are mailed to the corresponding authors for their final approval. At this point, only essential changes are accepted. Finally, the article appears in the pages of the Journal and is posted on-line.

SOCIAL SCIENCES& HUMANITIES

A special edition devoted toContemporary Issues in Management & Social Sciences

VOL. 25 (S) NOV. 2017(Special Edition)

Guest EditorsGabriel Moens, Danture Wickramasinghe &

Kashan Pirzada

A scientific journal published by Universiti Putra Malaysia Press

EDITOR-IN-CHIEFMohd. Shahwahid Hj. Othman

EDITORIAL BOARD2015-2017

JSSH Journal of Social Sciences & Humanities

AN INTERNATIONAL PEER-REVIEWED JOURNAL

Economics, Natural Resource & Environmental Economics, Economics Valuation

CHIEF EXECUTIVE EDITOR Nayan Deep S. Kanwal Environmental Issues – Landscape Plant Modelling Applications

UNIVERSITY PUBLICATIONS COMMITTEEHusaini Omar, Chair

EDITORIAL STAFFJournal Officers:Chai Sook Keat, ScholarOne

Kanagamalar Silvarajoo, ScholarOne

Tee Syin Ying, ScholarOne

Ummi Fairuz Hanapi, Publication Officer

Editorial Assistants: Florence Jiyom Rahimah RazaliZulinaardawati Kamarudin

COPY EDITORSCrescentia Morais Doreen DillahPooja Terasha Stanslas

PRODUCTION STAFFPre-press Officers: Kanagamalar SilvarajooNur Farrah Dila IsmailWong Lih Jiun

Layout & Typeset:Lilian Loh Kian Lin

Abdul Mansur M. Masih Economics, Econometrics, Finance, King Fahd University of Petroleum and Minerals, Saudi Arabia.

Alan MaleyEnglish Language Studies, Teaching ofEnglish Language and Literature, LeedsMetropolitan University, UK.

Ali Reza KaldiMedical Sociology, Sociology ofDevelopment Ageing, Gerontology,University of Social Welfare andRehabilitation, Tehran, Iran.

Aminah AhmadSociology, Gender and Development,Universiti Putra Malaysia, Malaysia.

Bee-Hoon TanFaculty of Social Sciences and LiberalArts, UCSI University, Malaysia.

Brian TomlinsonEnglish Language Studies, TheEvaluation, Adaptation andDevelopment, Leeds MetropolitanUniversity, UK.

Deanna L. Sharpe Economics, Consumer and Family Economics, Personal Finance, The University of Missouri, Columbia, USA.

Dessy IrawatiInternational Business Management,Strategic Management, EconomicGeography, Globalization andDevelopment Studies, IndustrialDynamics and Knowledge Transfer,Radboud University, the Netherlandsand EduPRIME the consulting, theNetherlands.

Elias @ Ilias Salleh Kuliyyah of Architecture and Environmental Design (KAED), UniversitiIslam Antarabangsa Malaysia, Malaysia.

Gong-Soog HongEconomics, Consumer and FamilySciences, The Ohio State University, USA.

Jacqueline Pugh-Kitingan Music, Ethnomusicology, Borneo and Papua New Guinea Studies, Universiti Malaysia Sabah, Malaysia.

James R. Stock Management Studies, Marketing, Logistics and Supply Chain Management, Quantitative Method, University of South Florida, USA.

Jayakaran Mukundan English Language Studies, Teaching English as a Second Language (TESL),English Language Studies, UniversitiPutra Malaysia, Malaysia.

Jayum A. JawanSociology, Politics and Government,Civilization Studies, Universiti PutraMalaysia, Malaysia.

Jonathan Newton Classroom-based Second Language Acquisition,Language Teaching Methodology, the Interface of Culture and Language in Language Teaching andLearning, and Language/Communication Training and Material Design for the Multicultural Workplace, Victoria University of Wellington, New Zealand.

Marcus Bion GRIFFINHuman Ecology, Anthropology, TropicalAgriculture, Fisheries, Cultural LearningSolutions, USA.

Mary Susan PhilipEnglish Language Theatre in Malaysiaand Singapore; Postcolonial Theatre,University of Malaya, Malaysia.

Muzafar Shah Habibullah Economics, Monetary Economics, Banking, Macroeconomics, Universiti Putra Malaysia, Malaysia.

Patricia MatuskyMusic, Ethnomusicology, Malay andIndonesian language, Literature andCulture, Grand Valley State University,USA.

Rohany NasirPsychology-Career counseling,Counseling for Adolescents and Adults,Marriage and Family counseling,Counseling industry and Organization,Universiti Kebangsaan Malaysia,Malaysia.

Samsinar Md. Sidin Management Studies, Marketing, Consumer Behaviour, Universiti Putra Malaysia, Malaysia.

Shameem Rafik-Galea English Language Studies, Linguistics, Applied Linguistics, Language and Communication, Universiti Putra Malaysia, Malaysia.

Shamsher MohamadRamadili MohdFinance, Corporate Governance, TheGlobal University of Islamic Finance(INCEIF) Malaysia.

Stephen J. HallEnglish Language Studies, Linguist,Teacher Educator, TESOL, SunwayUniversity College, Malaysia.

Stephen J. ThomaPhsycology, Educational Psychology, TheUniversity of Alabama, USA.

Swee-Heng ChanMalaysia.

Turiman SuandiPsychology, Youth Development andVolunteerism, Universiti Putra Malaysia,Malaysia.

Victor T. KingAnthropology / Southeast Asian StudiesWhite Rose East Asia Centre, Universityof Leeds, UK.

WEBMASTERMohd Nazri Othman

INTERNATIONAL ADVISORY BOARD2017-2019

PUBLICITY & PRESS RELEASEFlorence JiyomMagdalene Pokar (ResearchSEA)

EDITORIAL OFFICEJOURNAL DIVISIONOffice of the Deputy Vice Chancellor (R&I)1st Floor, IDEA Tower IIUPM-MTDC Technology CentreUniversiti Putra Malaysia43400 Serdang, Selangor Malaysia.Gen Enq.: +603 8947 1622 | 1616E-mail: [email protected]: www.journals-jd.upm.edu.my

PUBLISHERUPM PressUniversiti Putra Malaysia43400 UPM, Serdang, Selangor, Malaysia.Tel: +603 8946 8855, 8946 8854Fax: +603 8941 6172E-mail: [email protected]: http://penerbit.upm.edu.my

Barbara WejnertPolitical Sociologist: Gender Studies,Macro Political and Social Changes,University at Buffalo, SUNY, USA.

Carolyn Graham Music, Jazz Chants, Harvard University, USA.

David NunanVice-President: Academic, AnaheimUniversity, California, English LanguageStudies, Linguist, TESOL, University ofHong Kong, Hong Kong.

Faith Trent AM FACE Education: Curriculum development, Flinders University, Adelaide, Australia.

Gary N. McleanExecutive Director, International HumanResource Development Programs,EAHR, Human Resource Developmentfor National, Community and SocialDevelopment, International HumanResource Development, OrganizationalDevelopment, Texas A&M University,USA.

Graham ThurgoodEnglish Language Studies, GeneralLinguistics, Discourse and Syntax,California State University, Chico., USA.

Handoyo Puji WidodoEnglish Language Center, ShantouUniversity, China

John R. Schermerhorn Jr. Management Studies, Management and Organizational Behaviour, International Business, Ohio University, USA.

Kent MatthewsEconomics, Banking and Finance,Modelling and Forecasting the MacroEconomy, Cardiff Business School, UK.

Lehman B. Fletcher Economics, Agricultural Development, Policy Analysis and Planning, Iowa State University, USA.

Mark P. Orbe Communication, Interpersonal Communication, Communication and Diversity, Intercultural Communication, Western Michigan University, USA.

Mohamed ARIFFDepartment of Economics and Finance,Sunway University, Malaysia.

Pal AhluwaliaPro Vice-Chancellor (Research andInnovation), African Studies, Social andCultural Theory, Post-colonial Theory,Division of Education, Arts & SocialSciences, University of Portsmouth,United Kingdom.

Phillip JonesArchitectural Science, Sustainability inthe Built Environment, Welsh School ofArchitecture, Cardiff University, UK.

Rance P. L. LeeSociology, The Chinese University ofHong Kong.

Royal D. ColleCommunication, Cornell University, USA.

Shonda BuchananInterim Chair, American Literature,Hampton University, USA.

Vijay K. Bhatia Education: Genre Analysis and Professional Communication, City University of Hong Kong

ABSTRACTING/INDEXINGPertanika is now over 40 years old; this accumulated knowledge has resulted the journals being indexed in abstracted in SCOPUS (Elsevier), Thomson (ISI) Web of Knowledge [ESCI, BIOSIS & CAB Abstracts], EBSCO & EBSCOhost, ERA, DOAJ, AGRICOLA (National Agric. Library, USA), Cabell’s Directories, Google Scholar, MyAIS, Islamic World Science Citation Center (ISC), ASEAN Citation Index (ACI) & Rubriq (Journal Guide).

The publisher of Pertanika will not be responsible for the statements made by the authors in any articles published in the journal. Under no circumstances will the publisher of this publication be liable for any loss or damage caused by your reliance on the advice, opinion or information obtained either explicitly or implied through the contents of this publication.All rights of reproduction are reserved in respect of all papers, articles, illustrations, etc., published in Pertanika. Pertanika provides free access to the full text of research articles for anyone, web-wide. It does not charge either its authors or author-institution for refereeing/publishing outgoing articles or user-institution for accessing incoming articles.No material published in Pertanika may be reproduced or stored on microfilm or in electronic, optical or magnetic form without the written authorization of the Publisher.

Copyright © 2017-18 Universiti Putra Malaysia Press. All Rights Reserved.

Preface

It is both an honour and pleasure to present to the readers this special issue of the 5th and 6th Global Conference on Business and Social Sciences 2017 (GCBSS), published under the flagship of PERTANIKA Journal of Social Sciences and Humanities (JSSH). This journal’s first publication dates back to 1993 and it is currently abstracted and indexed in SCOPUS (Elsevier), Thomson (ISI) Web of Knowledge (BIOSIS and CAB Abstracts), EBSCO and EBSCOhost, DOAJ, Cabell’s Directories, MyAIS, ISC and Rubriq (Journal Guide). The contents of the special issue are based on oral presentations made at GCBSS which were held in Kuala Lumpur and Bangkok.

The Global Academy of Training and Research (GATR) Enterprise is a registered research firm in Malaysia, which organises and sponsors the GCBSS Series, the aim of which is to provide a collegial environment for scholars, researchers, academics and practitioners to discuss, present and disseminate their research findings. The GCBSS series has been organised since 2013 in countries such as Sri Lanka, Vietnam, Australia, the United Kingdom, and Malaysia among others. The GCBSS has attracted strong support from academics, who have strong credentials in various disciplines including Business, Accounting, Law and Social Sciences.

The 5th and 6th GCBSS had attracted over 500 interesting papers from around the world. Following a rigorous and careful review process, the editors selected 27 (twenty-seven) high quality papers for inclusion in the JSSH, which focused on research outcomes. In addition, more than 200 papers were published in the Global Academy of Training and Research Journals and 20 papers in Polish Journal of Management Studies. The papers cover a wide range of disciplines such as social sciences, business, accounting, finance, and economics. These papers were written by scholars from six continents.

All the papers published in this edition underwent Pertanika’s stringent peer-review process involving a minimum of two reviewers comprising internal as well as external referees. This was to ensure the quality of the papers justified the high ranking of the journal, which is renowned as a heavily-cited journal not only by authors and researchers in Malaysia but by those in other countries around the world as well.

The Conference also provided an opportunity to welcome prominent plenary speakers from Australia, UK and Norway such as Professor Dr Gabriël A. Moens, Curtin University, Emeritus Professor, University of Queensland, Australia; Professor Dr Danture Wickramasinghe, Adam Smith Business School, University of Glasgow, United Kingdom; Professor Dr. Bjoren Willy Aamo, University of Norland, Norway; Professor Dr. Musa Mangena, University of Essex, United Kingdom and Professor Dr. Kamran Ahmed, La Trobe Business School, Australia. We are grateful to them for their contributions.

The guest editors of this special issue record their appreciation to Dr. Nayan Kanwal, the Chief Executive Editor, Pertanika Journals, UPM at the Journal Division for his wisdom, generous guidance and strong commitment in publishing this special issue. This issue would not have been possible without his concerted effort.

Many other individuals also contributed to the success of this special issue. We are indebted to the referees who have put in hard work and the long hours to review each paper in a timely and professional way. Our thanks to all the members of the GCBSS International Advisory Board, session chairs, delegates and especially the members of the Organising Committee. We hope that the findings and discussions of these papers will contribute to better and effective public policy making around the world. We truly believe that our regional initiative will expand the horizon of new discoveries and we hope that you enjoy reading these papers.

Guest Editors:

Kashan Pirzada (Dr.)Global Academy of Training & Research, Malaysia

Gabriël A Moens (Prof. Dr.)Curtin University and University of Queensland, Australia

Danture Wickramasinghe (Prof. Dr.)Adam Smith Business School, University of Glasgow, United Kingdom

November 2017

Pertanika Journal of Social Sciences & HumanitiesVol. 25 (S) Nov. 2017

Contents

Contemporary Issues in Management & Social Sciences

Perceptions of Causes of Poverty among Rural and Urban Households 1 in Zomba Malawi

Steven Henry Dunga

Factors Affecting Attainment of Ideal Retirement Income among 15Retirees

Chong Shyue Chuan, Sia Bee Chuan, Cheong Wah Wan andFarah Waheeda Binti Jalaludin

Indonesian Productivity Growth: Evidence from the Manufacturing 29Sector in Indonesia

Lilik Sugiharti, Rudi Purwono, Martha Ranggi Primanthi andMiguel Angel Esquivias Padilla

Modelling the Economic Cycle between GDP and Government 45Spending on Technological Innovation

Phoong Seuk Yen and Phoong Seuk Wai

Attitudes and Behaviours toward Healthy Eating and Food Safety 53 in Ho Chi Minh City, Vietnam

Mai Le Thi and Ha Do Xuan

Attitude and Expectation: Food Waste Recycling as a Business 65Opportunity in Terengganu

Wan Nawawi Wan Nawawi, Sopiah Ambong @ Khalid, NoorazlinRamli and Norzaidi Mohd. Daud

Empirical Analysis of the Dogs of the Dow (DoD) Trading 75Strategy in Developed and Developing Asian Markets

Noryati Ahmad, Siti Hajar Nadrah Mohammad Ghouse and Norhana Salamuddin

Liquidity Using Corwin and Schultz Approach and Stock Returns in 85 the Indonesian Capital Market

Yosman Bustaman and Agustini Hamid

Here and There: Cross-border Evidence of Commonality in Liquidity 99of ADR in Asia Pacific

Intan Nurul Awwaliyah, Viverita, Buddi Wibowo and ZaäfriAnanto Husodo

Capital Structure: New Evidence across the Broad Spectrum of State-Owned Enterprises Performance in Indonesia

Kamaludin and Berto Usman

Determinants of Dividend Policy and Capital Structure of State-OwnedCompanies and Non-State-Owned Companies

Enni Savitri, Tatang Ary Gumanti and Kirmizi Ritonga

Loan Growth, Inefficiency, and Credit Risk in Asia Pacific BankingSector

Namira Lahuddin and Viverita

The Influence of Environmental, Social and Governance (ESG) onInvestment Decisions: The Bangladesh Perspective

Sayema Sultana, Dalilawati Zainal and Norhayah Zulkifli

Environmental Degradation, Trade Openness, and EconomicGrowth in Southeast Asian Countries

Shanty Oktavilia, Franciscus Xaverius Sugiyanto, FirmansyahFirmansyah and Wahyu Widodo

Conservation and Environmental Performance of IslamicEnterprises in Indonesia

Asrori, Agus Wahyudin and Fachrurrozie

Management Control Systems and Firm Performance: The MediatingRole of Motivation, Market Orientation and Organisational Learning

Tommy Minardo, Ria Nelly Sari, Kamaliah and Susilastri

Renminbi Exchange Rate and Capital Flows Interactions inChina

Ming Fan and Xiumei Zhang

The Effect of Tax Aggressiveness on Debt Policy with IndependentBoard as Moderating Variable

Silvy Christina

Moderating Effect of Audit Probability on the Relationship between Tax Knowledge and Goods and Services Tax (GST) Compliance in Malaysia

Soliha Sanusi, Normah Omar, Zuraidah Mohd Sanusi andRohaya Md Noor

Managerial Ownership, Corporate Governance and Earnings Quality: The Role of Institutional Ownership as Moderating Variable

Muhammad Khafid and Sandy Arief

Board of Commissioner’s Effectiveness on Politically ConnectedConglomerates: Evidence from Indonesia

Lela Nurlaela Wati

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The Influence of Effective BOC on Choice of Auditor 271Badingatus Solikhah, Nicco Della Firmansyah and KashanPirzada

Board of Directors’ Gender, Managerial Ownership and CorporateRisk-taking: Evidence from Indonesia

Lana Meutia Firdaus and Desi Adhariani

281

Corporate Governance and Financial Distress 299Irma, Olivia Idrus and Mailani Hamdani

Homo Economicus vis a vis Homo Pancasilaus: A Fight againstPositive Accounting Theory

Jordan Hotman Ekklesia Sitorus, Iwan Triyuwono andAri Kamayanti

What Motives Consumers to Spend?: A Study on ImpulsivePurchases

Muhartini Salim

Corporate Brand Equity in Consumer Goods Industry: An Experiential-Based Strategic Branding

Maria Mia Kristanti

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Pertanika J. Soc. Sci. & Hum. 25 (S): 321 - 336 (2017)

SOCIAL SCIENCES & HUMANITIESJournal homepage: http://www.pertanika.upm.edu.my/

What Motives Consumers to Spend?: A Study on ImpulsivePurchases

Muhartini SalimDepartment of Management, Faculty of Economics and Business University of Bengkulu, Jln. WR Supratman, Kandang Limun 38121 Kota Bengkulu, Indonesia

ABSTRACT

This research is based on Rook and Fisher’s (1995) theory of taxonomy that explains the reasons for impulsive purchase. The aim of this study was to understand the motivations for hedonic expenditure and utilitarian expenditure physical environment, personality and culture as moderating variables on impulsive purchases. A total of 400 respondents who shopped at a souvenir store in Bengkulu, Indonesia were interviewed. The SmartPLS2.0, a statistical technique, was used to identify the variables. Results showed physical environment, personality, and culture partially and positively affected impulsive purchases. Lifestyle however, has no effect on impulsive purchases. Second, there was the difference between hedonic expenditure motivation and utilitarian expenditure motivation. Third, motivation for hedonic expenditure was stronger.

Keywords: Culture, lifestyle, impulsive purchases, hedonic, utilitarian

INTRODUCTION

A well organised marketing strategy would be able to influence customers’ purchasing decisions. The purchase decision is based on need recognition. Before purchasing

ARTICLE INFO

Article history:Received: 20 May 2017Accepted: 01 October 2017

E-mail addresses:[email protected] (Muhartini Salim)

goods and services, the consumer must plan what and where to buy as well as the cost. However, in other cases, the purchases could immediately without much thought. These are called unplanned purchases or impulsive purchases.

According to Bellenger, Robertson and Hirschman (1978), consumers usually plan to shop in advance but sometimes impulsive purchases can happen. Based on this theory, the purchases at some Batik Bersurek souvenir stores in Bengkulu may

ISSN: 0128-7702 © Universiti Putra Malaysia Press

Muhartini Salim

be impulsive, as consumers come to the store to buy souvenirs from Bengkulu, without actual knowledge of what to buy, while the store itself sells a variety of items including Batik Bersurek. According to Smith and Colgate (2007), situational factors like the physical environment influences consumers to make impulsive purchases. In addition to situational factors, personality variable could also influence impulsive purchases (Delafrooz, Taleghani, & Farahzad, 2013). Culture has effect on consumer impulsive purchases at both individualistic and collective level (Kacen & Lee, 2002). Lifestyle affects impulsive purchases individually and collectively (Sarki, Bhutto, Arshad, & Khutro, 2012; Sun, Horn, & Merritt, 2004). Consumers are motivated by consumption value or hedonic value, and utilitarian value (Babin, Darden, & Griffin,1994). Hedonic expenditure is motivated by desire, novelty and surprises (Hausman,2000) while utilitarian expenditure is task-oriented, rational and cognitive (Babin et al., 1994).

Two studies (Luk, Sharma, & Chen,

2013; Wang, Chou, & Chang, 2009) used the hedonic and utilitarian motivations as moderation effects of independent variables (beliefs perceived, user attitude, sacrifice, value, satisfaction) on dependent variables (information quality, behaviour intentions). Moderation effects of motivation expenditure (hedonic and utilitarian) are used to see how strong the effect of independent variables on the dependent variables, and to determine which is stronger, hedonic or utilitarian expenditure motivation.

This research is based on Rook and Fisher’s theory (1995) which believes that impulsive purchase is an inclination where consumers buy spontaneously, without consideration. Impulsive purchases happen due to many factors known as variables such as physical environment (Baker, Grewal, & Parasuraman, 1994; Stoltman, Morgan, & Linda, 1999) personalities (Delafrooz et al., 2013; Shell, 2002), collective culture (Hofstede, 2001; Luna & Gupta, 2001; Nakata & Sivakumar, 2001; Yoo, 2009) and lifestyle (Assael, 1992). This research also used hedonic value factor and utilitarian value factor (Babin et al., 1994) as moderating variables.

This study examines the influence of independent variables (physical environment, personality, culture and lifestyles) on impulsive purchases. It confirms the findings of Wang et al. (2009) and Luk et al. (2013) using different independent variables and dependent variables. The independent variables are physical environment, personality, culture and lifestyle while the dependent variable is impulsive purchases.

The findings of this study contribute to knowledge on the positive effect of physical environment, personality, culture and lifestyle on impulsive purchases. The study shows the motivation for hedonic expenditure and utilitarian expenditure is influenced by the physical environment, personality, culture and lifestyle. Findings show hedonic motivation is stronger than utilitarian expenditure on impulsivepurchases.

322 Pertanika J. Soc. Sci. & Hum. 25 (S): 321 - 336 (2017)

Motivation for Consumer Expenditure

LITERATURE REVIEW

According to Khan, Humayum, & Sajjad (2015), impulsive purchase is an unplanned purchase that occurs when customers experience a sudden urge to buy something, directly and spontaneously without advance planning. Rook & Fisher (1995, p. 308) describe impulsive purchase as below:

often buy things spontaneously: just do it describes the way I buy things: I often buy a thing without thinking: I see it, I buy it describes me: buy now, think about it later describes me: some time I feel like buying things on the spur of the moment: I buy things According to how I feel at the moment: I carefully plan most of my purchase: sometimes I am reckless a bit about what I buy.

This study used five of 9 indicators of impulsive purchases gleaned from the above:

The physical environment or atmosphere of the store has a stronger influence on consumer purchasing decisions than the products offered (Roslow, Sydney, Li, & Nicholls, 2000; Stoltman et al.,1999). In-store stimulus also influences impulsive purchases (Abratt & Goodey,1990). Dimension of physical environment (atmosphere) according to Baker et al. (1994) are: ambient factors (indicators: music, lighting, aroma); design factors (indicator: floor coverings, display, colour, cleanliness, layout); social factors (indicator: seller). According to Stoltman et al. (1999),physical environment is the availability

of products, store employees, parking availability and store atmosphere. The physical environment indicators are the layout, availability of products, employees, store atmosphere and design. The following hypotheses are proposed:

H1: Physical environment has a positiveinfluence on impulsive purchases.

According to Schiffman and Kanuk (2008), personality is how a person’s responds to the environment. Delafrooz et al. (2013) showed among the five personality characteristics (extraversion, hospitality, coscientiousness, neuroticism, openness) extraversion and hospitality have an immediate and positive effect on compulsive and impulsive purchases. This study looked at extraversion and hospitality in influencing purchasing decision (Schell, 2002). Extraversion is feeling of happiness among people, easy to laugh, chatty, happy, cheerful spirit, and very active. Hospitality means politeness, being cooperative with others rather than competitive, prudent and tolerant. The following hypothesis is proposed:

H2: Personality has a positive effect on impulsive purchases.

Many researchers see culture as an important determinant of consumer behaviour (DeMooij & Hofstede, 2010). According to experts Luna and Gupta (2001) collectivist consumers tend to focus on families and groups when making purchasing decisions while individualist consumers tend to prioritise private interests. Triandis (1995) and Rook (1987) indicated that

Pertanika J. Soc. Sci. & Hum. 25 (S): 321 - 336 (2017) 323

Muhartini Salim

culture is very influential on impulsive purchases. According to Hofstede (1980), collectivist and individualistic dimension is the most important cultural factor on impulsive purchases. People in collectivist culture appreciate their group membership and respect group decisions (Wong & Ahuvia, 1998). According Nakata and Sivakumar (2001), people in the collectivist community sacrifice their personal interests for the welfare of the community. The indicators used in this study are families and groups, customer-seller relationship, trust, community sacrifice, and equality.

Thus, the following hypothesis is proposed:

H3: Culture has a positive effect on impulsive purchases

Lifestyle describes the activities and interests that interact with the environment using psychographics (Kotler, 2009). Psychographics is an instrument to measure lifestyle, which provides quantitative measurements of the market. According to (Assael, 2004), psychographics is a measure of AIO (activity, interest, and opinion) which are dimensions of lifestyle. Bashir, Zeeshan, Sabbar, Hussain and Sarki (2013) found that cultural values and lifestyle have a significant impact on consumer’s impulsive purchasing behaviour in Pakistan. Thus, the indicators used in this study are activity, interest and opinion.

The following hypothesis is as proposed: Lifestyle has a positive effect on impulsivepurchases.

According to (Arnold & Reynold, 2003; Babin et al., 1994; Kim, 2006) expenditure motivation is driven by hedonic and utilitarian factors. Wang et al. (2009) showed that motivation for hedonic and utilitarian expenditure moderate the relationship between the perceived belief and confidence in Web 2.0 applications. It was found the relationship between the perceived benefits and consumer attitude was stronger for consumers with utilitarian motivation. In contrast, the relationship between perceived ease utilisation, consumer attitudes and behavioural intentions was stronger for consumers with hedonic motivation. Some theories of hedonic dimension have been proposed. Hedonic value dimension consists of pleasure and adventure, according to Rintamaki, Kanto, Kuusela and Spence (2006). According to Babin et al. (1994) hedonic dimensions are: pleasure, shopping experience enjoyment, and perceived freedom. Utilitarian expenditure is task-oriented, rational and cognition (Babin et al., 1994). This study found hedonic and utilitarian expenditure motivation can be used as the moderation influence of independent variable on dependent variable. Utilitarian dimensions, according to Kim (2006), are achievement and efficiency. In the present study, it was found hedonic expenditure was motivated by pleasure, experience, freedom, problem ignorance and fantasy of the customers This study also used utilitarian expenditure motivation indicators, task-oriented, rational, cognition (knowledge), efficiency and achievement.


H5

H6

H7

H8


Therefore, the following hypotheses are proposed:

H5: There is a difference between hedonic expenditure and utilitarian expenditure motivation which is moderated by the physical environment

H6: There is a difference between the hedonic and utilitarian expenditure motivation which is moderated by the personality of the purchaser.

H7: There is a difference between hedonic expenditure and utilitarian expenditure motivation which is moderated by culture.

H8: There is a difference between hedonic expenditure motivation and utilitarian expenditure motivation which is moderated by lifestyle.

Figure 1 is based on the framework of the study:

ExpenditureMotivation: Hedonic

and Utilitarian

PhysicalEnvironment

Personality

Culture

H1

H2

H3

H4

ImpulsivePurchases

Lifestyle

Figure 1. The relationship between VariablesNotes: Figure 1. The relationship between Variables

Influence of independent variables on dependent variableNMootdeesr:ating influence of independent variables on dependent variable

Sources: Adapted from Assael et al. (2013); Babin et al. (1994); Delafrooz et al. (2013); Hofstede (2001); Stolman et al. (1999)

METHOSDouSrces: Adapted from Assael et al. (2013); BaSbainmetpalli.n(g19M94)e; tDheoladfrooz et al. (2013);

Types ofHDofastteadea(2n0d01R); Setsoelmaarnceht aAl. p(1p99r9o) ach

Data for this study was obtained from survey based on a questionnaire.

The study population were impulsive consumers who shopped at the souvenir stores Bengkulu city. Non probability


Muhartini Salim

sampling was employed in which people were selected based on the purpose of research. According to Hair, Anderson, Tatham and Blak (1998) SEM requires a representative sample in multivariate data analysis research of 5 or 10 multiplied by the number of indicators or a minimum of100 samples.

In t h i s s t udy, t he re were 400questionnaires based on 40 indicators. The questionnaire was administered to those who shopped at Batik Bersurek in souvenir stores at Sukarno Hatta street Bengkulu City, Indonesia from October 2015 to January 2016.

Validity and Reliability

a. Validity Test

This study used convergent validitytest with indicators assessed via factor loading (correlation between scores item /

component score with the construct score) of indicators that measures the construct. The factor loading value greater than +/- 0.30 indicates compliance with the minimum level, the loading factors value of +/- 0.40 is considered better and in accordance with the rules of thumb used by researchers, and the loading factor of > 0.50 was considered significant (Hair et al, 1998).

Chin (1998) rule of thumb used for convergent validity is outer loading of >0.7, Communality of > 0.5, and Average Variance Extracted (AVE) of > 0.5. Impulsive Purchases Indicator, Physical Environment, Personality, Culture and Lifestyle, have value of factor loading of more than 0.7, as seen in Table 1. Value of AVE and Communality of more than 0.5 is seen in Table 1. Based on Chin (1998), it can be concluded that all the indicators above were valid.

Table 1Summary of validity test result

Item Factor loading AVE Communality

Impulsive purchase

Spontaneously 0.806

0.6287 0.6289

Thoughtlessly 0.702

Quick buying 0.819

Buying first and think later 0.845

Buying impulsively

Physical environment

0.784

0.708 0.708

Interesting layout 0.845

Product availability 0.874

Well trained employee 0.810

Comfortable room atmosphere 0.884

Interesting room design

Personality

0.790

0.718 0.718



Table 1 (continue)

Item Factor loading AVE Communality

Happy to be among people 0.870

Feeling happy on duty 0.838

Love to communicate with other people 0.712

Enthusiast 0.839

Very active 0.889

Easy going 0.882

Polite 0.844

Cooperative 0.814

Ready to please 0.852

Wise and tolerant 0.918

Culture 0.651 0.651

Friends’ influence 0.818

Recommend to friends 0.755

Never forget to buy 0.889

To ensure smooth business 0.779

Because a friend buys 0.786

Lifestyle 0.637 0.637

I love batik 0.780

I stop shopping if I have bought batik 0.866

Loving new things is my lifestyle 0.733

Interesting goods 0.812

The sellers serve the consumers well 0.793

Source: The data was processed for SmartPLS 2.0 (2016)

b. Reliability Test

The reliability test in PLS is based on two methods: Cronbach’s alpha and composite reliability. The rule of thumb or composite

Table 2Summary table of reliability test result

Item CronbachAlpha

CompositeReliability

reliability alpha value should be greater thanImpulsive purchase 0.851 0.894

Physical environment 0.898 0.923

Personality 0.956 0.9230.7 though the value of 0.6 is acceptable(Hair et al., 1998). Cronbach’s alpha values Culture 0.866 0.904

and Composite reliability for each variable Lifestyle 0.861 0.897

indicator above were 0.7, as seen in Table2. It can be concluded that the instrument used in this study was reliable (Hair, Bush,& Ortinau, 2006).

Source: The data was processed for SmartPLS 2.0 (2016)


Muhartini Salim

Method of Analysis

Data was analysed using inferential statistic.

Inferential statistical analysis

Inferential statistical used in this research was Structural Equation Modeling (SEM), hereinafter referred as SEM using SmartPLS2.0. According to Hair et al. (1998), SEM allows for an analysis of the series of connections simultaneously to provide statistical efficiency. Moderation shows the interaction between the moderator variable and independent variables (predictors) in influencing the dependent variable. Testing the effect of moderation in linear regression can be done using Baron and Kenney’s (1986) approach, First is to test the significancy of the primary (independent influence on the dependent), and second is to test the significancy of the moderator variable to the dependent variable.

Hypotheses 1 to 4 were tested using PLS. The scores of paths coefficient or inner model of a t-statistic value must be above1.96 for two-tailed hypothesis and must be above 1.64 for one-tailed hypothesis in testing at alpha 5 percent and power 80 percent (Hair et al., 1998). Hypotheses 5 through 8 were tested using t test to see the difference between the different samples.

The formula used was based on (Sarkar,1998).

Note:

t = t test

βk = Beta Coefficient

SSE = Standard of Deviation

K = number of variables in the regression

Df = Degrees of Freedom

Testing criteria are:

- If t-test < t table at alpha of 0.05: hence there is no difference between hedonic and utilitarian expenditure motivation as the moderation effects of independent variable influence (physical environment, personality, culture, lifestyle) against impulsive purchases.

- If t-test > t table at alpha of 0.05: hence there is difference between hedonic and utilitarian expenditure motivation as the moderating effects of independent variable (physical environment, personality, culture, and lifestyle) against impulsive purchases.

In order to facilitate calculation and hypothesis testing, SmartPLS 2.0 software was used in this study.



DATA ANALYSIS AND HYPOTHESES TESTING

Data was validated via a validity and reliability test. They hypotheses was subjected to and Structural Equation Modeling (SEM) using Partial Least Squares (PLS) or SmartPLS 2.0 and Differential test (t-test). The results based on SmartPLS 2.0 are shown in Figure 2, while the result of Differential test (t-test) is shown in Table 3.

Hypothesis 1: Physical Environment has a positive effect on impulsive purchases

The results of beta coefficient of 0.249 and t value of 2.446 ort > 1.64 (one-tailed hypothesis) indicated physical environment has a positive influence on impulsive purchases (see Figure 2). This means the better the physical environment the higher the chances are for impulsive purchases.

Hypothesis 2: Personality has a positive effect on impulsive purchases

The results of beta coefficient of 0.233 and t value of 3.576 ort > 1.64 (one-tailed hypothesis) showed personality has a positive effect on impulsive purchases, can be seen in Figure 2. This means that if the personality of consumer was considered deliberately, impulsive purchases will occur.

Hypothesis 3: Culture has a positive effect on impulsive purchases

The results of beta coefficient of 0.244 and t value of 2.173 or t > 1.64 (one-tailed hypothesis) showed culture has a positive

effect on impulsive purchases, as can be seen in Figure 2. This means that if the culture of consumer was considered deliberately, the chances for impulsive purchases will be higher.

Hypothesis 4: Lifestyle has a positive effect on impulsive purchases

The results of beta coefficient of 0.122 and t value of 0.878 or t<1.64 (one-tailed hypothesis), showed that lifestyle does not have a positive effect on impulsive purchases, can be seen in Figure 2. This means that if the lifestyle of consumer was considered deliberately, impulsive purchases will not increase.

Hypothesis 5: There is a difference between hedonic and utilitarian expenditure in moderating the influence of physical environment on impulsive purchases

The t test results was 21.908, where the value of t table is 1.64 (one-tailed hypothesis). It meant the t test > t table so it showed the difference between hedonic expenditure motivation and utilitarian expenditure motivation (see Table 3). Additionally, Table 3 also shows which variable between hedonic and utilitarian expenditure motivations that has stronger influence of the pysical environment on the impulsive purchases. Because t1 of hedonic variable is positive it can be concluded that motivation for hedonic expenditure is stronger.


Muhartini Salim

Hypothesis 6: There is a difference between hedonic and utilitarian expenditure in moderating the influence of personality on impulsive purchases

The results showed t test of 3.046 where the value of t table is 1.64 (one-tailed hypothesis). It meant the t test > t table so it showed the difference between hedonic expenditure motivation and utilitarian expenditure motivation (see Table 3). Because t1 of hedonic variable is positive it can be concluded that the motivation for hedonic expenditure is stronger.

Hypothesis 7: There is a difference between hedonic and utilitarian expenditure in moderating the influence of culture on impulsive purchases

The results showed t test is 15.276 where the value of t table is 1.64 (one-sided hypothesis). It meant the t test > t table so it showed the difference between hedonic

expenditure motivation and utilitarian expenditure motivation (see Table 3). Because t1 for hedonic variable is positive it can be concluded the motivation for hedonic expenditure is stronger.

Hypothesis 8: There is a difference between the hedonic expenditure motivation and utilitarian expenditure motivation as moderation influence of life style on impulsive purchases. There is a difference between hedonic and utilitarian expenditure in moderating the influence of lifestyle on impulsive purchases

The results for hypothesis 4 are inconclusive, namely lifestyle doesn’t have an effect on impulsive purchases. According to Baron and Kenney (1986), moderation effects in linear regression should indicate independent variables affect the dependent variable.

Figure 1. Summary figure of structural model outputSource: The data was processed (2016)



Table 3Summary table of differential test

Parameter t test = Personality

t test = Physical environment

t test = Culture t test = Lifestyle

IV to DV IV to DV IV to DV IV to DV

SSE1+SSE2 0.3487 0.165 0.111 0.154

b1-b2 0.208 0.273 0.089 0.112

df1+df2 398 398 398 398

total b1 66.571 17.934 10.134 11.772

total b2 11.484 30.054 10.784 2.483

t test 3.046 21.907 15.276 20.304

b1 0.556 0.564 0.289 0.282

b2 0.347 0.291 0.199 0.170

df1 0.074 242 242 242

df2 156 156 156 156

t1 2.020 11.263 6.890 5.808

t2 4.761 2.530 2.883 4.160

b1/t1 = Hedonicb2/t2 = UtilitarianSource: The data was processed (2016)

RESULTS AND DISCUSSION

This section focuses on testing the hypotheses of the study.

Influence of Physical Environment onimpulsive purchases

This study showed physical environment influenced posit ively on impulsive purchases. According to Dunne and Lusch (2005), store environment is important for a retail business because almost 70% of the purchase turned out to be an impulsive purchase or unplanned purchases. Store environment according to Levy and Weitz (2004) is a combination of the physical characteristics of the store, such as architecture, layout, display colour, lighting, temperature, music, and aroma, which as a whole, creates an image in the minds of

consumers. Thus, Indonesia retailers must pay attention to the physical environment, especially the layout, the availability of the products, attentive employees, room atmosphere, temperature and design.

Influence of Personality on impulsivepurchases

This study examined whether personality has a positive effect on impulsive purchases. The results showed personality has a positive influence on impulsive purchases. This finding supports that of Delafrooz et al. (2013) i.e. among the five personality characteristics, extraversion and hospitality have a direct and positive effect on compulsive and impulsive purchases.

Thus, the owners of the souvenir stores must ensure their advertisements target


Muhartini Salim

extraversion personality of its customers (people who are energetic, social, brave, active, confident) and their products must be attractive that suits the personality of the consumer.

Influence of Culture on impulsivepurchases

This study looked at whether culture has a positive effect on impulsive purchases. The results showed culture has a positive influence on impulsive purchases. This is consistent with the findings of Bashir et al. (2013) that indicated cultural values and lifestyle of Pakistani consumers had a significant influence on impulsive purchases. Thus, the Batik Bersurek products must have names that have the collective cultural meaning. It is also suggested that the advertisements should reflect social values corresponding with the collective culture.

Influence of lifestyle on impulsivepurchases

This study examined whether life style has a positive effect on impulsive purchases. The results showed lifestyle did not have a positive influence on impulsive purchases. These findings were not supported by Bashir et al. (2013) who reported that cultural values and lifestyle of Pakistani consumers had a significant influence on impulsive purchases. It has to be noted the current findings cannot be generalised to the population in general.

The moderating influence of physicalenvironment on impulsive purchases

The results of this study showed physical environment has a moderating influence on the motivations behind hedonic and utilitarian expenditure in relation to impulsive purchases. Hedonic expenditure is boosted by the physical environment to make impulsive purchases. Based on these findings, the owners of souvenir stores in Bengkulu city must create proper physical environment (layout, product availability, employees, and design) to entertain, entice and meet consumers’ needs. Personality as a moderating influence on impulsive purchases. The findings indicate the moderating influence of personality on impulsive purchases whereby the personality of the consumer strengthens motivation for hedonic expenditure. Thus, the owners of souvenir stores must create brands that target consumers motivated by hedonism.

Culture as a moderating influence onimpulsive purchases

Results showed culture has a moderating influence on impulsive purchases and in particular hedonic expenditure. Therefore, the owners of souvenir stores in Bengkulu city must create appropriate advertisements targeting collectivist culture that support hedonic expenditure.

Lifestyle as a moderating influence onimpulsive purchases

Findings were inconclusive since lifestyledid not influence impulsive purchases.



CONCLUSION

This study has shown physical environment has a positive influence on impulsive purchases of shoppers at Batik Bersurek. This indicates that the impulsive purchases can be increased by improving the physical environment (layout, availability, services, temperature and design), by rearranging the display, ensuring stock availability, upgrading service, and redesigning products. Personality influences positively on impulsive purchases of Batik Bersurek. It was found extraversion and hospitality can increase impulsive purchases. It is also suggested that product brand, promotion and advertisement could accommodate extraversion personality and hospitality in order to increase impulsive purchases.

Culture also has positive influence on impulsive purchases. This study examines collectivist culture where decision making is based on kinship and group could increase impulsive purchases. Thus, shop owners should encourage the product advertisements that emphasise on collectivist culture in order to increase impulsive purchases.

This study also shows lifestyle has no effect on impulsive purchases. Though some earlier researches (Bashir et al.,2013) showed the contrary, that is relatively in limited scope only and it cannot be generalised as universal.

The physical environment has a positive influence on impulsive purchases as shown in the present study. Hedonic expenditure motivation is boosted by the physical environment and thus, the studystrongly recommends shops owners create

a favourable physical environment to encourage hedonic expenditure motivation

Personality has a positive influence on impulsive purchases in particular hedonic expenditure. Hence, it is recommended that aggressive brand and product advertisements that target extraversion personality beconsidered.

Culture has a positive influence on impulsive purchases and the personality of the consumer boosts hedonic expenditure. This study recommends shops to create suitable advertisements that support collectivist culture and hedonic consumers.

This study has discussed the theory on behaviours that motivate impulsive purchases. The study has limitations, namely where the whole independent variables cannot be tested to affect dependent variables. There were four independent variables: physical environment, personality, culture, and lifestyle while dependent variable was impulsive purchases. Only three independent variables (physical environment, personality, culture) had an effect on impulsive purchases while the lifestyle variable did not have any effect on impulsive purchases.

Future research may look at time variable as a situational factor influencing impulsive purchases and moderated by hedonic and utilitarian expenditure motivation. This study used hedonic expenditure motivation and utilitarian expenditure motivations as moderating variables and found the former is superior. Another moderator variables that can be used in the future studies are gender (male or female).


Muhartini Salim

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