MULTIDIMENSIONAL FRAMEWORK OF IMPULSE

BUYING: A STUDY OF URBAN CONSUMERS

THESIS

SUBMITTED TO THE UNIVERSITY OF JAMMU

FOR THE AWARD OF DEGREE OF

DOCTOR OF PHILOSOPHY

IN MANAGEMENT

BY

ANKITA NANDA

UNDER THE SUPERVISION OF

PROF. ALKA SHARMA

THE BUSINESS SCHOOL

UNIVERSITY OF JAMMU

FACULTY OF BUSINESS STUDIES

UNIVERSITY OF JAMMU

JAMMU

2013

Dedicated to

My Little Princess

MYRAH

CERTIFICATE

Ankita Nanda, who was registered for the Degree of Ph.D. under my supervision, has

completed her work. The exact title of her thesis is “MULTIDIMENSIONAL FRAMEWORK

OF IMPULSE BUYING: A STUDY OF URBAN CONSUMERS”.

I certify that she has worked under my supervision and the work done by her is original and

worthy of consideration for the award of Degree of DOCTOR OF PHILOSOPHY in

Management.

I further certify that:

1. The thesis embodies the work of the candidate herself.

2. The candidate worked under my supervision for the period required under Statues;

3. The candidate has put in the required attendance in the Department during the period.

4. The candidate has fulfilled the Statutory conditions as laid down in Section 18 of Statues

Governing Doctor of Philosophy in Management; and

5. The conduct of the scholar remained satisfactory during the period of research.

Dated

Dr. Alka Sharma Prof. Versha Mehta

Professor Director

The Business School The Business School

University of Jammu University of Jammu

Jammu Jammu

ACKNOWLEDGEMENT

This dissertation is a milestone in my academic career. I have been fortunate to learn theories

and concepts which would have been impossible if I had not extensively carried out the needed

research. I am grateful to a number of people who have guided and supported me throughout the

research process and provided assistance for my venture.

At this moment of accomplishment, I would first and foremost thank my guide Prof. Alka

Sharma, who has the attitude and substance of a genius. She continually and convincingly

conveyed a spirit of adventure with regard to research and scholarship, and an excitement

regarding teaching. I am indeed very thankful to her for taking me as a scholar. This work would

not have been possible without her guidance, support and encouragement. Under her guidance I

successfully overcame many difficulties and learnt a lot. I can’t forget how she used to review

my thesis progress, gave her valuable suggestions from time to time and made corrections. It is

due to her hard efforts and commitment that has made this thesis possible. Thank you very much

mam, I sincerely owe you so much. Apart from her being my guide, she is a wonderful person at

heart and I thank you again mam for this lifelong relationship that we have of a guide and

scholar. I could not have imagined having a better advisor and mentor for my Ph.D study.

I express my deepest gratitude to respected Prof. Versha Mehta, Director of The Business

School, University of Jammu, for her encouragement, never ending support and guidance. I

really appreciate the time you took out from your busy schedule to interact with the scholars and

solve their problems.

I owe my thanks to the entire faculty of The Business School, University of Jammu, including

Prof. Keshav Sharma, Prof. Neelu Rohmetra, Prof. B.C. Sharma, Dr. Rajinder Mishra, Dr.

Parikshat Manhas, Dr. Sameer Gupta, Dr. Vinay Chauhan, Dr. Jaya Bhasin, Dr. Anil

Gupta, Dr. Amisha Gupta, Dr. Rachna Mahajan, Ms. Saloni Devi for their encouragement

and support in one way or the other.

I would also like to specially thank Dr. Anil Gupta and Dr. Komal Nagar for extending their

valuable help and suggestions whenever required.

A very special thanks to my friend who is now a faculty member, Ms. Farah Choudhary who

has been always there for me whenever I had a problem. Also, she was the one who boosted my

morale constantly to complete my work in two years.

My warm appreciation is due to the non teaching staff of The Business School, Therefore I

would like to express my heartfelt thanks to Mrs. Sneh Lata, Ms. Kusum, Mr. Balwan Singh,

Mr. Rajneesh Baru, Mr. Sanjeev Gupta, Mr. Dilip Bhat, Mr. Gurcharan Singh, Ms. Sakshi

Gupta, Mr. Arjun, Mr. Moti, Mr. Dhuni Raj, Mr. Tilak, Mr. Parshotam Kumar, Mr. Raj

Kumar.

I express my thanks to the library staff especially Mrs. Anju Gupta, Mrs. Rupali Abrol and

Mr. Sharif for their support in providing books and Journals whenever needed.

My thanks are due to my co- researchers Ms. Shelleka Gupta, Dr. Mandeep Singh Kapur,

Dr. Vinod Kumar, Dr. Bhanu Pratap Singh, Dr. Pallavi Arora, Dr. Ridhi Sharma, Ms.

Hena Sharma, Ms. Sushma Kaushal, Ms. Shivani Rana, Mrs. Shilpa Mahajan, Ms. Goldy

Mahajan, Ms. Ranju Katoch, Ms. Shikha, Ms. Anju Thapa, Ms. Deeksha Singh, Ms. Palvi,

Ms. Vibhuti Jasrotia, Ms. Shruti Sharma, Mr. Anish Yousaf for their valuable suggestions

and help during my Ph.D work.

I also owe a humble thanks to the computer staff of Devans Modern Breweries Ltd especially

Mr. M.A Sunny and Mr. Subash Chander for helping me with the print outs and other

formatting.

Finally, I am grateful to my parents for their constant encouragement and support. My mother

always wanted me to be a doctor, now I can proudly say “Mummy this is for you”. I would also

like to specially thank my extended family who have always been there for me and provided me

a carefree environment so that I could concentrate on my study especially my better half who

first encouraged me to qualify NET- JRF and then pursue Ph.D. Thank you Vasu for being

always there for me, be it data collection, making data entries to taking the final prints.

I may have forgotten some of the worthy valuable support who contributed to this thesis in any

way. My heartfelt thanks to them all!

DECLARATION

I, Ankita Nanda, hereby declare that the thesis entitled “Multidimensional Framework of

Impulse Buying: A Study of Urban Consumers” submitted to the University of Jammu for the

award of Degree of Doctor of Philosophy in Management, is an original research work carried

out by me in The Business School at the University of Jammu during the period 2011-2013

under the supervision of Dr. Alka Sharma, Professor, The Business School, University of

Jammu. Any extract of this research in part or as a whole has not been included, incorporated or

added to any other work or similar title by any scholar in any other University.

Dated: Ankita Nanda

TABLE OF CONTENTS

Declaration

Acknowledgement

List of Tables

List of Figures

List of Acronyms Used

Contents Page No.

CHAPTER I: INTRODUCTION

1.1 Origins of Organized Retail in India 1

1.2 Organized Retailing as an Emerging Sector 5

1.3 Growth Drivers of Organized Retail in the Country 8

1.3.1 Drivers of Organized Retail in India – Demand Factors 9

1.3.1.1 Growing Young Population 9

1.3.1.2 Rising Disposable Income 10

1.3.1.3 Increasing Proportion of working women resulting in higher 11

discretionary spend

1.3.1.4 Changing consumer preferences 12

1.3.2 Drivers of Organized Retail in India-Supply side Factors 14

1.3.2.1 Easy Availability of Credit 14

1.3.2.2 Real Estate Development 15

1.3.2.3 Development of Supply Chain involving efficiencies 16

1.3.2.4 Government Regulations 17

1.4 Changing Consumer needs and Behavior 18

1.5 Impulse Buying Behavior 21

1.5.1 Types of Impulse Buying 26

1.5.2 Theories of Impulsive Buying 27

1.5.2.1 The Emotional/Impulsive Decision Making Theory and Impulsive Buying 27

1.5.2.2 The Consumer Decision Making Model 28

1.6 Importance of Impulse Buying in Organized Retail 28

1.7 Need for the Study 31

1.8 Conclusion 33

1.9 Outline of the Study 33

References 36

CHAPTER II- REVIEW OF LITERATURE

2.1 Review 40

2.2 Research Gap 61

References 63

CHAPTER III- MULTIDIMENSIONAL FRAMEWORK OF IMPULSE BUYING

3.1 INSTORE STIMULI 77

3.1.1 Attractive Display and Impulse Purchase 77

3.1.2 Sales Promotion and Impulse Purchase 81

3.1.3 Attractive Packaging and Impulse Purchase 84

3.2 SITUATIONAL FACTORS 86

3.2.1Time Availability and Impulse Purchases 86

3.2.2 Money Availability and Impulse Purchases 87

3.2.3Shopping Companion and Impulse Purchase 88

3.4 THE ROLE OF EMOTIONS AND HEDONISM IN PURCHASE BEHAVIORS 90

3.5 COGNITION AND IMPULSE PURCHASE 92

3.6 PERSONAL FACTORS 92

3.6.1 Impulse Buying Tendency and Impulse Purchase 92

3.6.2 Age, Gender, Income and Impulse Buying 94

3.7 Proposed Theoretical Framework 95

References 97

CHAPTER IV- RESEARCH METHODOLOGY

4.1 Research Purpose 105

4.2 Research Hypotheses 105

4.3 Research Objectives 111

4.4 Questionnaire Design and Development 111

4.5 Pretesting and Final Instrument 116

4.6 Sampling 122

4.7 Data Tabulation, Statistical Tools and Techniques Used For Processing 123

4.7.1 Measure of Central Tendency (Mean) 123

4.7.2 Measure of Dispersion (Standard Deviation) 124

4.7.3 Correlation Analysis: 124

4.7.4 Regression Analysis 124

4.7.5 Percentage Analysis 124

4.7.6 Reliability Analysis of Measurement Scales 125

4.7.7 Factor Analysis 125

4.7.8 Analysis of Variance (ANOVA) 125

4.7.9 Independent t test 126

4.7.10 Baron and Kenny Linear Equation Method 126

4.7.11 Sobel Test 126

References 128

CHAPTER V-DATA ANALYSIS AND FINDINGS

5.1 Demographic Profile of Respondents 135

5.2 Product Category Purchased 137

5.3 Data Purification Results 138

5.31 Reliability Analysis 138

5.32 Assessing Validity 139

5.33 Factor Analysis 142

5.4 Descriptive Statistics 146

5.5 Correlation Analysis 155

5.6 Regression Analysis 157

5.7 Analysis of Impulse Buying Tendency with Demographic Factors 167

5.8 Mediation Effect of Emotions 170

References 183

CHAPTER VI-SUMMARY, CONCLUSIONS AND SUGGESTIONS

6.1 Synoptic View 186

6.2 Objectives and their Achievement 189

6.3 Hypotheses Validation 191

6.4 Analysis of Impulse Buying Tendency with demographic factors 194

6.5 Mediation Effect of Emotions and Hedonism 195

6.6 Conclusions and Suggestions 198

6.7 Research Contribution 200

6.8 Managerial Implications 200

6.9 Recommendations for future Research 203

6.10 Limitations of the Study 203

References 204

Bibliography 208

Annexure

LIST OF TABLES

CONTENTS

Page No.

Table 1.1: Proportion of Young Population 2010 in different countries 10

Table 5.1: Genderwise Representation of Respondents 136

Table 5.2: Agewise Distribution of Respondents 136

Table 5.3: Annual Household Income Wise Representation of Respondents 137

Table 5.4: Product categories purchased on Impulse 138

Table 5.5: Discriminant Validity among constructs 140

Table 5.6a: Convergent validity incase of factor Time Availability 140

Table 5.6b: Convergent validity incase of factor Money Availability 141

Table 5.6c: Convergent validity incase of factor Shopping Companion 141

Table 5.6 d: Convergent validity for factor Attractive Display 141

Table 5.6 e: Convergent validity for factor Sales Promotion 142

Table 5.6 f: Convergent validity for factor Packaging 142

Table 5.7a: KMO value and Bartlett Test of Sphericity for Instore Stimuli 143

Table 5.7b:Total Variance Explained by Instore Stimuli 143

Table 5.7c Factor Loadings and Composite Reliability for Instore Stimuli 144

Table 5.8a: KMO and Bartlett's Test of Sphericity for Situational Factors 145

Table 5.8 b: Total Variance Explained by Situational factors 146

Table 5.8c: Factor Loadings and Composite Reliability for Situational factors 146

Table 5.9: Mean Score for Impulse Buying 147

Table 5.10: Mean Score for Time Availability 148

Table 5.11: Mean Score for Money Availability 148

Table 5.12: Mean Score for Shopping Companion 149

Table 5.13: Mean Score for Impulse Buying Tendency 150

Table 5.14: Mean Score for Hedonism 151

Table 5.15: Mean Score for Cognition 152

Table 5.16: Mean Score for Attractive Display 153

Table 5.17: Mean Score for Sales Promotion 154

Table 5.18: Mean Score for Attractive Packaging 154

Table 5.19: Mean Score for Emotions 155

Table 5.20: Inter Variable Correlation Matrix 156

Table 5.21a: ANOVA table Instore Stimuli and Impulse Buying 157

Table 5.21b: Regression Analysis: Instore Stimuli and Impulse Buying 158

Table 5.21c: Regression Coefficient Instore Stimuli and Impulse Buying 158

Table 5.22a: ANOVA table Situational Factors and Impulse Buying 159

Table 5.22b: Regression Analysis: Situational Factors and Impulse Buying 160

Table 5.22c: Regression Coefficient: Situational Factors and Impulse Buying 160

Table 5.23a: ANOVA table : Personal factors and Impulse Buying 161

Table 5.23b: Regression Analysis Personal Factors and Impulse Buying 161

Table 5.23c: Regression Coefficient: Personal Factors and Impulse Buying 161

Table 5.24a: ANOVA table: Emotions, Hedonism and Impulse Buying 162

Table 5.24b: Regression Analysis: Emotions, Hedonism and Impulse Buying 163

Table 5.24c: Regression Coefficient: Emotions, Hedonism and Impulse Buying 163

Table 5.25a: ANOVA table: Cognition and Impulse Buying 164

Table 5.25b: Regression Analysis: Cognition and Impulse Buying 164

Table 5.25c: Regression Coefficient: Cognition and Impulse Buying 164

Table 5.26a: Descriptive Statistics for gender 168

Table 5.26b:Independent t test for gender and impulse buying tendency 168

Table 5.27: ANOVA: Impulse buying tendency with respect to age and income group 169

Table 5.28: Tukey’s HSD Homogeneous subsets for age groups 169

Table 5.29:Tukey’s HSD Homogeneous subsets for income groups 170

Table5.30: Regression of Instore stimuli (IV) and Impulse buying(DV) 172

Table5.31: Regression of mediator emotions and Instore Stimuli(IV) 172

Table5.32:Regression equation of instore stimuli on impulse buying controlling 173

the mediator emotions.

Table5.33:Regression of mediator emotions and display 173

Table5.34:Regression equation of the predictor variable display on criteria 174

impulse buying controlling the mediator emotions

Table5.35:Regression of mediator emotions on predictor 174

sales promotion

Table 5.36: Regression equation of predictor variable sales promotionon impulse 175

buying controlling the mediator emotions

Table5.37: Regression of mediator emotions on predictor packaging 175

Table 5.38:Regression equation of predictor variable packaging on criteria impulse 176

buying controlling the mediator emotions

Table 5.39:Regression of mediator hedonism on predictor instore stimuli 176

Table 5.40: Regression equation of the predictor variable instore stimuli on criteria 177

impulse buying controlling the mediator hedonism

Table 5.41: Regression of mediator hedonism on predictor display 177

Table 5.42: Regression of predictor variable display on criteria variable impulse 178

Buying controlling the mediator hedonism

Table 5.43: Regression of mediator hedonism on predictor variable sales promotion 179

Table 5.44: Regression of predictor variable sales promotion on criteria variable 179

impulse buying controlling the mediator hedonism

Table 5.45: Regression of mediator hedonism on predictor variable packaging 180

Table 5.46: Regression of predictor variable packaging on criteria variable impulse 180

buying controlling the mediator hedonism

Table 5.47: Regression of mediator EH on predictor instore stimuli 181

Table 5.48: Regression of predictor variable instore stimuli on criteria variable impulse 181

buying controlling the mediator emotions and hedonism.

LIST OF FIGURES

Page No.

Figure1.1: Phases of Organised Retail. 3

Figure1.2: Organised Retail Market in $ US bn. 7

Figure 1.3: Organised Retail Penetration. 8

Figure 1.4: Confluence of Favourable Factors. 11

Figure 1.5: Working Women Demographics 12

Figure 1.6: FDI Policy Milestone. 18

Figure 1.7: Market break up by revenues. 20

Figure 1.8: Engel and Blackwell Model of Consumer Decision Making. 23

Figure 1.9: The Adjusted Engel and Blackwell Model of Consumer Decision Making. 24

Figure1. 10: Different Types of Impulse Buying. 27

Figure1.11: Organised Retail set up- Malls- New Mantra for Success. 30

Figure 1.12: Mall Space Distribution in Delhi and NCR. 32

Fig.5.1 Gender Wise Details of Respondents. 135

Fig.5.2 Age Wise Details of Respondents. 136

Fig.5.3: Annual Household Income. 137

Fig.5.4: Product category Purchased. 137

Fig.5.5: Mediation effect of hedonism on in store stimuli and impulse buying. 176

Fig 5.6: Mediation effect of hedonism on display and impulse buying. 177

Fig 5.7: Mediation effect of hedonism on sales promotion and impulse buying. 179

Fig 5.8: Mediation of emotions and Hedonism on In store Stimuli and impulse 181

buying

LIST OF ACRONYMS USED

APMC Agriculture Produce Marketing Committee

CAGR Compounded Annual Growth Rate

CD’s Compact Disks

CIFE Consumption Impulse Formation Enactment

CRISIL Credit Rating Information Services of India

Limited

DIPP Department of Industrial Promotion and Policy.

DLF Delhi Land and Finance

EBO Exclusive Brand Outlets

Economic Relations.

F&G Food and Grocery

FDI Foreign Direct Investment

GDP Gross Domestic Product

HSBC Hongkong Shanghai Banking Corporation

IBT Impulse Buying Tendency

ICC International Chamber of Commerce

ICI Investment Commission of India

ICRIER Indian Council for Research on International

IT Information Technology

JV Joint Venture

KPMG Klynveld Peat Marwick Goerdeler

MPCE Monthly Per Capita Expenditure

NCR National Capital Region

NSSO National Sample Survey Organization

ORP Organized Retail Penetration.

POPAI Point of Purchase Association International

PPP Purchasing Power Parity

SOR Stimulus-Organism-Response

SPSS Statistical Package for Social Sciences

UB United Breweries

CHATPTER 1

INTRODUCTION

CHAPTER 2

REVIEW OF

LITERATURE

CHAPTER 3

MULTIDIMENSIONAL

FRAMEWORK OF

IMPULSE BUYING

CHAPTER 4

RESEARCH

METHODOLOGY

CHAPTER 5

DATA ANALYSIS AND

FINDINGS

CHAPTER 6

SUMMARY

CONCLUSIONS AND

SUGGESTIONS

BIBLIOGRAPHY

ANNEXURE