the influence of consumer emotions and external cues on impulse purchases

8/10/2019 The Influence of Consumer Emotions and External Cues on Impulse Purchases

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The Infuence o

Consumer Emotionsand External Cues onImpulse Purchases

Honors Thesis

Tiffany GalmariniMarketing Department

Faculty Sponsor: Richard J. Lut

Table of Contents:


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!ntroduction ". #$%

&'er'ie( ". %

!mpulse "urchases ". )

Stages !n'ol'ed in an !mpulse "urchase ". )$*

+,ternal -ues ". *$

+,ample ". $/

+,cessi'e "urchases ". /$00

-onsumer and Retailer "romotions ". 00$0#

1d'antages2Disad'antages of !mpulse 3uying from the Manufacturer4s "erspecti'e: ".0#$0)

1d'antages2Disad'antages of !mpulse 3uying from the Retailer4s "erspecti'e: ". 0)$05

1d'antages2Disad'antages of !mpulse 3uying from the -onsumer4s "erspecti'e: ". 05$0*

Marketing !mplications ". 0*$0

+thical 1pproach: ". 0

1 Look 1head: ". 0$#0

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Introduction:

-onsumers face the temptation to purchase items that are not on their shopping lists

e'ery(here they go. This temptation to make unnecessary purchases e'entually leads to

consumers making impulse purchases. +'ery consumer has engaged in an impulse purchase at

some point in their life. 6ith our society continuing to 7ecome more materialistic8 marketers

ha'e to de'ise ne( strategies to con'ince the consumer that their product or ser'ice is (orth

purchasing e'en if it (as not 7eing sought after at the time of purchase.

Research indicates that nine out of ten shoppers purchase items on impulse 9/ &ut &f 08

#0#;8 and only )< of consumers (ill say that the purchases they make on impulse are for

discretionary items 9Daniger8 #);. This gap indicates either one of t(o things: the first is that

consumers are considering some of their impulse purchases to 7e for items that they need such as

toilet paper or (ater8 rather than discretionary items. The second is that consumers are not

cogniant of the fact that they are purchasing on impulse8 there7y reporting a lo(er percentage of

their purchases to 7e on impulse. &f the ninety percent of shoppers (ho purchase on impulse8

**< said it (as due to a sale or promotion8 %< said it (as 7ecause they found a coupon8 and

#%< said they (anted to re(ard themsel'es for something 9/ &ut &f 08 #0#;. Taking all of this

into account8 it is not surprising that impulse purchases account for appro,imately =) 7illion in

annual sales in the >nited States 9Da(son and ?im8 #0;. 6ith impulse purchases on the rise8 it

is important for marketers to come up (ith inno'ati'e (ays to capture the attention of the

consumer and to in turn increase the 7asket sie for a purchase.

Marketers 7egin 7y analying the )"4s 9product8 price8 promotion8 and placement; and

ho( they relate to the consumer 7ecause that in turn determines (hether or not the consumer (ill

make a purchase. Researching (hat dri'es a consumer to purchase impulsi'ely is the ne,t step in

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determining ho( to increase the num7er of impulse purchases made 7y a consumer in their

lifetime. 6ith e$commerce on the rise8 consumers are e'en more apt to make an impulse

purchase 7ecause there are no( multiple media that the product can 7e purchased from. For

e,ample8 consumers can shop at traditional 7rick$and$mortar stores or on (e7sites in the comfort

of their home. Therefore8 it is crucial for marketers to research the @(hyA of a consumer impulse

purchase 7efore they come up (ith a marketing strategy to approach the @ho(A.

Overview:

! (ill 7egin this paper 7y defining (hat an impulse purchase is and (hat characteries it.

1fter (alking through a fe( e,amples of ho( an impulse purchase occurs8 ! (ill then e,plain

the interconnectedness of manufacturer and retailer$controlled promotions and ho( they

encourage spontaneous shopping. 1fter understanding the 7asis for ho( marketers increase the

likelihood of an impulse purchase8 the idea of e,cessi'e purchases and (hy (e re(ard oursel'es

7y purchasing items (e do not need (ill 7e understood. The ad'antages and disad'antages of

impulse purchases for 7oth consumers and retailers are all important (hen analying ho( the

consumer and the retailer contri7ute to purchases 7y the consumer. Finally8 the marketing

implications of an impulse purchase (ill 7e e,plained 7y using e'idence through e,amples and

research from 'arious trade pu7lications.

Impulse Purchases:

The term @impulse purchaseA (as first defined in 0/) in the Du"ont studies and can

no( 7e defined in se'eral (ays. !t can 7e descri7ed as @a sudden8 often po(erful and persistent

urge to 7uy something immediatelyA 9Da(son B ?im8 #0;8 @there (as no plan to 7uy the

o7CectA 9"ooler8 #%;8 and @a specific moti'ation or desire to perform a particular action8 as

opposed to a general or latent desire or traitA 93aumeister8 eatherton8 B Tice8 0//);. !mpulse

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purchases ha'e three distinct features that characterie them: The purchase is unplanned8 the

purchase is difficult for the consumer to control8 and there is an emotional response that follo(s

the purchase 9Eicholson B iao8 #0#;. The first t(o are some(hat self$e,planatory 7ecause the

consumer did not plan on 7uying a particular item (hen they decided to go shopping and the

consumer had a difficult time con'incing themself that they did not need or deser'e the item.

1fter the item is purchased8 the consumer (ill e,perience emotional satisfaction if the item is a

reflection of the consumer4s identity and 7rought a sense of fulfillment to the consumer

9Daniger8 #);. !n the end8 purchasing an item that the consumer does not need gi'es @a

feeling of po(erA to the consumer8 making the impulse purchase 9Daniger8 #); resol'e an

emotional need that the consumer (as e,periencing.

Since the term @impulse purchaseA (as defined in the late 0/)4s8 increasing attention has

7een gi'en 7y academics in that there (ere more than nine papers per year (ritten on the topic in

the #4s 7ut only a7out one paper per year in the 0/*4s 9Eicholson B iao8 #0#;. This has

ena7led marketers to use strategies that ha'e 7een tested in a formal setting for the purpose of

increasing the num7er of items 7ought in a store. 1n important concept for marketers to

understand is that impulse 7uying has four stages that a consumer goes through (hen engaging

in an impulse purchase.

Stages Involved in an Impulse Purchase:

The first stage is the antecedent phase and is e,plained 7y the psychological

characteristics of indi'iduals. For e,ample8 a consumer that is considered to 7e @action$orientedA

is more likely to 7uy on impulse 7ecause they act immediately (ithout thinking (hy the

purchase is necessary. The importance of the antecedent phase is that there are @preconditions

that e,ist 7efore the consumer enters into a shopping en'ironmentA 9Eicholson B iao8 #0#;.

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This means that an impulse purchase cannot 7e determined strictly 7y analying the consumer in

the antecedent phase 7ecause they ha'e not entered into the shopping en'ironment yet. o(e'er8

the impulse purchase can 7e predicted 7ased on personality factors of the consumer. 1ccording

to research8 a person (ith materialistic 'alues is more likely to engage in impulsi'e 7uys 7ecause

they are al(ays searching for a 7etter (ay to differentiate themself and to (ork their (ay up the

social ladder. -hildren (ho (ere re(arded (ith material goods 7y their parents @often de'elop a

pattern of re(arding themsel'es as adults (ith commodities (hen they feel do(n or stressed

outA 93indah8 #0#; leading to an increased chance of making impulse purchases.

The second phase is the trigger stage (hich is go'erned 7y person$en'ironment

transactions. This stage focuses on the triggers in an en'ironment that can increase the likelihood

of an impulse 7uy. Some common triggers may include pro,imity of the product to the

consumer8 the amount of time that the consumer has to shop8 atmospherics of the store8 and

emotional states of the consumer. For e,ample8 if a consumer is in a depressed state of mind8

they might 7ro(se the aisles Cust to keep (hate'er is 7othering them off of their mind. &nce the

consumer comes across an item that they ha'e a connection (ith8 they (ill e,perience a sense of

Coy and pleasure if they purchase the item 7ecause it (ill distract the consumer from the

emotional issues that are on their mind.

The third stage is the act of 7uying and is supported 7y decision process theories.

>nderstanding ho( the consumer made the decision to purchase on impulse is e,plained in this

stage. Researchers -o77 and oyer found that @impulsi'e purchasers perform minimal in$store

information processingA 9Eicholson B iao8 #0#;. These impulse decisions are therefore 7ased

largely upon emotions of the consumer at the point in time (hen faced (ith the product. 3uying

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a product on impulse gi'es the consumer immediate satisfaction (hich is (hy the act of 7uying

itself pro'ides the consumer (ith such a positi'e reaction.

The fourth and final stage is the post$purchase stage and is e,plained 7y the 13- theory

9affect$7eha'ior$cognition;. This theory states that a consumer (ill e,perience an internal

feeling8 (ill react to that feeling 9in this case it (ould 7e to 7uy an item on impulse;8 and (ill

e'aluate the (ay they reacted to the feeling. For e,ample8 after a (oman 7uys a ne( aua$

colored pair of earrings8 she may e,perience a feeling of regret 7ecause she kno(s that she does

not need earrings and spent money on something that she could ha'e spent else(here. The

(oman could also rationalie that she does not ha'e earrings in that specific color 7lue and

therefore made a good purchase that (ill complete an outfit for her date this Friday night. 1s

noted in this e,ample8 the post$purchase stage can influence the ne,t purchase that a consumer

makes 7ecause they remem7er ho( they felt after they 7ought on impulse the last time.

Therefore8 it is important for ad'ertisements to con'ince us8 @7oth 7efore and after (e4'e made a

purchase8 that it (as an intelligent choiceA 93erger8 #5;.

External Cues:

6hen ha'ing a thorough understanding of the process that consumers go through (hen

making a purchase8 it is easier for marketers to utilie e,ternal cues that are pro'en to increase

the likelihood of consumers to make an impulse purchase. 1 research study that (as pu7lished in

the Journal of Fashion in Marketing focuses on four categories of e,ternal cues on apparel

(e7sites. 1lthough a rising num7er of consumers are shopping online due to con'enience8 there

are many other reasons people are staying at home to 7uy things as opposed to hitting the stores

and 7ro(sing the aisles. Some reasons include the all$day e'eryday access that the internet

allo(s8 the 7readth and depth of products a'aila7le to consumers8 and the pri'acy of 7eing a7le

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to purchase impulsi'ely (ithout anyone seeing. !n addition to the personalied promotions that

(e7sites create for each consumer 7ased on their past searches and purchases8 there are four

e,ternal cues that marketers can use to increase the occurrence of impulse 7uying.

@"romotionsA are one type of e,ternal cue that include coupons8 s(eepstakes8 free gifts8

7uy$one$get$one$free deals8 and free shipping 9Da(son B ?im8 #0;. 1 study pu7lished in the

Journal of Fashion in Marketing concluded that promotions accounted for %H< of all responses

in terms of (hat the consumer thought the reason (as for the impulse purchase that they made

on an apparel (e7site. 1nd (ithin the promotions category8 #< of the responses indicated that

free shipping (as the reason for the impulse purchase to 7e made.

@!deasA are another type of e,ternal cue. This cue is represented (hen a (e7site offers

the a7ility for the shopper to narro( the search 7y (hat is in style8 the most popular items

purchased8 and items in a gi'en price range. This category had the second most num7er of

responses at a7out %%


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e,ternal cues (ere most freuently mentioned 7y consumers participating in the focus groups

9Da(son B ?im8 #0;. This means that marketers must ensure the use of ideas and sales cues

(hen promotions cues are used 7ecause consumers refer to promotions cues as 7eing the primary

reason (hy they purchased on impulse (hen ideas and sales cues are found more freuently than

other e,ternal cues.

The fourth and final category listed as an e,ternal cue is classified as @suggestionsA. This

includes @suggested itemsA at the 7ottom of the (e7site after analying (hat the consumer

clicked on pre'iously8 re'ie(s and product recommendations8 and if the (e7site stores (hat item

(as last 'ie(ed 7y the customer. This category (as present in only 0*.< of the apparel

(e7sites.

1fter conducting the focus group and recording (hich apparel (e7sites of the * chosen

had the e,ternal cues a'aila7le8 it (as concluded that the amount of sales @(ere significantly

correlated (ith the amount of e,ternal impulse trigger cues a'aila7leA 9Da(son B ?im8 #0;.

6ith this kno(ledge8 marketers can analye in (hich category they are lacking in terms of

promotions8 ideas8 sales8 and suggestions. 1fter doing so8 they can create a marketing strategy

that (ill predict the increase in impulse purchases 7ased on adding additional e,ternal cues to

their apparel (e7sites. !f an apparel (e7site is lacking the funds to run promotions and sales8 the

7est e,ternal cue to in'est in (ould 7e @ideasA 7ecause there is a lo( fi,ed cost of making

changes to the (e7site to include the latest trends and to organie the products offered on the

(e7site 7y price ranges. The second 7est e,ternal cue to implement if lacking funds (ould 7e

general suggestions like those used (ith Groupon. 1maon on the other hand8 uses personalied

suggestions (hich (ould 7e more costly 7ut also more effecti'e in dri'ing impulse purchases.

Example:

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I- is kno(n for offering uniue 7rands that are sold at select retailers8 if at all. I-

has a presence through the tele'ision medium and the (e7. The purpose of the tele'ision channel

is to ena7le people to step a(ay from their daily routines and 7e a @destination retailer for people

(ho are in the mood to escape and (ant to gi'e themsel'es a little re(ardA 9Daniger8 #5;.

This is significant 7ecause I- recognies the fact that consumers (ill purchase discretionary

items (hen e,posed to @inherently entertainingA 7rands 9Daniger8 #5;.

I- utilies the e,ternal cues mentioned a7o'e 7y 7ringing on spokespersons that are

highly reputa7le for a particular 7rand. For e,ample8 3o7 3o(erso, 9a professional chef and

former restaurant o(ner; is trusted 7y 'ie(ers (hen he is featuring a line of cook(are

9Daniger8 #5;. This is considered a @suggestionA e,ternal cue 7ecause it is an indirect

recommendation from a professional chef to purchase this cook(are 7eing offered on I-.

There is also a direct (e7site that consumers can no( 7ro(se and (ill come across e'ery type of

e,ternal cue mentioned a7o'e. There is a filter on the side to group products 7y price range8 a

clearance section8 and free gifts (ith a purchase of a specific item. 1ll of these e,ternal cues

contri7ute to the success of the nontraditional retailer8 I-.

Excessive Purchases:

!mpulse purchases can 7e increased due to e,ternal factors8 emotions8 psychological

traits8 and en'ironmental triggers. 3ut (hy do consumers fall for the e,ternal cues and product

placements planned strategically 7y marketersK -onsumers purchase in e,cess 7ecause they (ant

to @re(ard themsel'es8 satisfy a psychological need8 or to simply make themsel'es feel goodA

9"ooler8 #%;. "roducts are good at displaying a person4s personality and increasing a person4s

self$esteem. This makes it 'ery difficult for a consumer to a'oid an impulse purchase 7ecause

our society is @em7edded in a culture of consumptionA 93erger8 #5;. 1 consumer culture is a

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culture in (hich @goods and ser'ices 7ecome an all$po(erful force. !n these cultures8 ad'ertising

and marketing play all$important roles8 and pri'atism $ a focus on one4s personal interests and

desires8 in contrast to a sense of pu7lic responsi7ility for others and for one4s society$tends to

dominate most people4s thinking and 7eha'iorA 93erger8 #5;. This is e,emplified in the

statistics that indicate the increase in discretionary income due to @essentials costing less relati'e

to total incomeA 9Daniger8 #);. &'er thirty percent of consumer spending is discretionary

(hich means that money spent 7y consumers on things they (ant and do not need largely

contri7ute to the country4s o'erall economy.

-onsumers 7uy things they don4t need 7ecause they are ultimately trying @to achie'e a

feeling or to enhance an e,perienceA 9Daniger8 #5;. The product that they 7ought is a uick

fi, and the emotion e,perienced from the purchase is felt immediately. This concept goes along

(ith the fact that our society e,pects things to happen right a(ay and (hen they (ant it. This

assumption that e'erything (ill happen instantly is o7'iously a false assumption so consumers

(ill purchase impulse items that (ill temporarily @fi,A their pro7lem in order to feel at ease (ith

the pro7lem at hand. The amount of discretionary income a person has (ill ultimately determine

the types of products that are purchased impulsi'ely and the e,cessi'e purchases that are made.

For e,ample8 a person making millions of dollars e'ery year (ill ha'e more discretionary

income than someone making fifty thousand dollars a year. The millionaire may 7e purchasing

different sports cars in 'arious colors to pro'e that he has style and prestige. The person making

fifty thousand may purchase a collection of eye shado(s to e,press her personality and sense

of fashion. The millionaire does not need multiple sports cars and the (oman does not need

eye shado(s 3ut they 7oth (ant to differentiate themsel'es (hich strongly suggests that

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shopping and purchasing on impulse can 7e thought of as @a form of self$e,pressionA 9"ooler8

#%;.

Consumer and Retailer Promotions:

The amount of impulse purchases made 7y a consumer is impacted 7y the types of

promotions that are 7eing offered 7y the manufacturer and 7y the retailer. Manufacturer$

controlled promotions @are aimed to 7oost sales in the short$term 7y pro'iding e,tra purchase

incenti'es to customersA 9Simon8 #;. -ommon manufacturer$led promotions include samples8

coupons8 contests8 and 7onus packs. "rocter and Gam7le is kno(n for their manufacturer$led

promotions 7ecause they offer 7onus items (ith many of their products. !f a consumer (ants to

purchase Gillette raor7lades for e,ample8 there is often a 7onus raor included. This tactic (ill

con'ince the consumer to purchase the Gillette pack of raors 7ecause there is a @freeA raor

7eing offered. This type of promotion is 'ery successful 7ecause the cost of a raor is ne,t to

nothing (hen considering the profit margins on the 7lades that are 7eing purchased.

Retailer$promotions are similar to manufacturer$promotions in that they are aimed to

increase sales in the short$term 7y pro'iding incenti'es to consumers8 7ut they are different in

that retail promotions are focused on impro'ing the profit of a product category as opposed to a

specific 7rand. The goal of the retailer is to stimulate long term profits through sales and coupons

so that the consumer (ill choose to shop at their store for a specific product category and then

7uy other items that they (eren4t planning on 7uying8 leading to impulse purchases. This is

(here most stores differentiate themsel'es. For e,ample8 retailers (ill strategically place items

that are often purchased on impulse such as gum8 candy8 and magaines8 7y their checkout

registers. 6ithin these product categories8 @checkout sales represent )*< of all supermarket

salesA 9-ohen B 3a7ey8 #0#;. Retailers that are kno(ledgea7le a7out (hat products are most

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often purchased on impulse (ill place these items not only at the checkout counters8 7ut also

throughout the store on the end$caps and in small displays in order to @ma,imie the

opportunityA 9-ameron8 #0#; to sell common impulse items.

Monetary and nonmonetary promotions are used 7y manufacturers and retailers.

+,amples of monetary promotions include price reductions8 coupons8 and re7ates. Eonmonetary

promotions include free gifts8 7uy$one$get$one$free8 s(eepstakes8 and 7onus packs. -onsumers

(ho are more price sensiti'e (ill respond to monetary promotions due to the @utilitarian

7enefitsA 9i B oo8 #00; that are offered 7y the promotions. These monetary promotions are

successful 7ecause they reduce the percei'ed price of a product in the mind of the consumer.

-onsumers (ho are more apt to purchase items for the purpose of pleasure (ill respond to

nonmonetary promotions 7ecause they are percei'ed as @gainsA in the minds of the consumers.

For e,ample8 a person may 7elie'e that a good price for a ankee -andle is =. !f that person

(ere to (alk into a ankee -andle store and see that there is a mini candle 7eing offered (ith the

purchase of a candle8 the person (ill encode that mini candle as a @gainA and e,perience a

hedonic 7enefit rather than a price reduction (hich is a utilitarian 7enefit.

dvantages!"isadvantages of Impulse #u$ing from the %anufacturer&s Perspective:

The manufacturer can decide (hether or not to run promotions on their 7rands 7ased on

the 7rand image that the manufacturer (ants to uphold. There has 7een e'idence indicating that

@monetary promotions can damage 7rand attitude 7y lo(ering consumers4 reference priceA 9i B

oo8 #00;. This means that consumers may only purchase the product (hen on sale 7ecause

they (ill not 7e as (illing to make the purchase for the products original price kno(ing that it

(ill go on sale e'entually. @Deal$proneA consumers (ill 7e more resistant to purchasing a 7rand

(hen not on sale 7ecause they are moti'ated to make a purchase only (hen there is a promotion

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offered. These consumers (ill not ha'e a negati'e attitude to(ards the 7rand (hen there is a sale

7ecause they are more price$conscious. &ther consumers8 ho(e'er8 may percei'e a promotion or

sale as something negati'e to(ards the 7rand as if there is a pro7lem (ith the item or think that

the item is lacking uality. !f marketers (ant to a'oid this negati'e 7rand image8 they should use

non$monetary promotions 7ecause consumers @percei'e non$monetary promotions separately

from price information and encode them as gainsA 9i B oo8 #00;. This (ill not affect the

uality or image of the 7rand in the consumer4s mind 7ecause the price of the product does not

decrease.

Manufacturers can promote a sale 7y offering a 7uy$one$get$one$free deal and capture the

consumers (ho are @deal$proneA and the consumers (ho are resistant to purchase a product

(hen there is a price reduction. This is 7ecause the consumer (ill see the @freeA item as a gain as

opposed to a reduced price offering such as 7uy one get one half off. This promotion is a definite

ad'antage to manufacturers 7ecause they can encourage impulse purchases 7y offering a 7onus

such as a @freeA item (ith a purchase and capture all types of customers discussed a7o'e at the

same time.

6hen manufacturers are preparing retailers for a promotion that they are a7out to offer8

they ensure that there is plenty of product in stock in order to a'oid unhappy customers (ho

(ant to take ad'antage of the promotion and cannot due to the product going out of stock. The

pro7lem (ith this is that promotions can @generate stockpiling8 increase sensiti'ity to prices8 and

reduce post$promotional salesA 9Simon8 #;. Stockpiling can occur (hen the manufacturer

processes too large of a shipment to 7e deli'ered to a retailer and then the retailer has no room

for the product on the sales floor or (hen there is lefto'er product after the promotion. 1s

mentioned 7efore8 consumers can ha'e a negati'e 7rand attitude if they are conditioned to (ait

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for the product to go on sale 7efore making a purchase. This can hurt manufacturers 7ecause the

demand for their product (ill 7e unpredicta7le (hen there is no promotion a'aila7le and could

possi7ly lose their customers to other 7rands if they are prone to only purchasing (hen items are

on sale. !t is important to note ho(e'er that this can 7e looked at the other (ay. !f a consumer

(alks into a grocery store and sees that "eter "an "eanut 3utter is 7uy$one$get$one$free that

(eek8 the consumer may purchase on impulse. "eanut 7utter (as not on the consumer4s

shopping list8 7ut they realied that their Car at home (as lo( and therefore took ad'antage of the

sale.This is significant to the manufacturer 7ecause this is a sale that (ould not ha'e happened

(ithout the incenti'e of the promotion for the consumer to purchase on impulse.

dvantages!"isadvantages of Impulse #u$ing from the Retailer&s Perspective:

Retail promotions are aimed to increase the profit of the retail stores and 'arious product

categories. 6hen there are retail promotions going on8 manufacturers may also 7enefit 7ecause

consumers (ill 7e encouraged to purchase more items and therefore try out 7rands they might

ha'e ne'er tried other(ise. Retail promotions can 7e a coupon for e,ample of =5 off a purchase

of =% or more. This coupon may entice the consumer to try their store o'er their usual retailer

(hich creates @store su7stitutionA 9?umar B Leone8 0//;. This is significant to the retailer

7ecause they (ill increase their customer 7ase during that promotion and possi7ly acuire more

customers in the long$run.

1 maCor pro7lem that retailers are currently facing (ith promotions and coupons is the

fact that some consumers ha'e 7ecome @coupon hoardersA 9Mayer8 #00;. These so$called

hoarders ha'e made couponing an o7session to the point (here they (ill not 7uy items unless

they are on sale and (ill 7uy items in 7ulk (hen they are on sale. For e,ample8 one (oman

purchased her family @05 pouchesA 9Fortini8 #0#; of tuna fish that lasted her family a year and

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a half (hen it (as 5 cents off and paired (ith a retailer coupon8 making the tuna fish essentially

free. 1 report 7y Eielsen indicated that coupon usage 7y households (as 0%


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place products and e,pose e,ternal cues8 consumers (ill 7e more likely to make an impulse

purchase and e,ceed their 7udget if they purchase on impulse too often.

%ar'eting Implications:

6hen analying the effects of retail and manufacturer promotions8 consumers @are

indifferent 7et(een manufacturer and retailer re7atesA 9Simon8 #;. This is due to the fact that

consumers are dri'en 7y e,ternal promotions and do not pay attention to (here the promotions

come from. -onsumers (ill respond differently to a price reduction 'ersus a 7onus item8 7ut they

(ill respond the same (ay if a manufacturer is offering it or a retailer is offering it.

6ith this in mind8 it is important for retailers to recognie (hy consumers shop the (ay

they do in order to differentiate themsel'es from the manufacturers. For e,ample8 the fact that

nine out of ten shoppers purchase items on impulse is significant 7ecause this sho(s the

importance of 7rands ha'ing a presence in the stores (hether through print ads8 promotions8 or

ha'ing the 7rand at the right location in the store. !mpulse purchases are so pre'alent among >.S.

shoppers 7ecause it is an opportunity to satisfy a @long$felt need or desireA 93erger8 #5;.

"urchasing on impulse can make a consumer feel more attracti'e8 @ena7le us to do something (e

(ant to do8 or it (ill re(ard us for meritorious 7eha'ior in the pastA 93erger8 #5;. -onsumers

purchasing on impulse may 7e 7uying the item for a num7er of reasons8 7ut the most significant

reason is the fact that consumers are trying to @feelA a certain (ay or achie'e some kind of

emotional response.

&ne of the most important factors of a retailer4s success is the amount of @(alk$inA traffic

the store attracts. These shoppers deser'e attention from the store clerks 7ecause they are

acti'ely Cudging the merchandise a'aila7le in the store. These customers (ho stop in a store Cust

for 7ro(sing often 7uy items on impulse. 1nd if they do not 7uy on impulse at that moment8 they

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may see an item they like and remem7er it for a future purchase. Think a7out the pre'alence of

this situation: a store clerk asks a customer if they need help finding something and the customer

responds 7y saying @Eo thank you8 !4m Cust looking aroundA. This statement is 'ery pre'alent in

our society 7ecause (e ha'e taken up @spontaneous shoppingA 9"ooler8 #%; (hich is the

pleasure of 7uying something unneeded or unplanned. This spontaneous shopping phenomenon

leads to an increase in impulse purchases. Retailers that le'erage this (ill make their stores

enticing and dra( in customers so that they Cust @look aroundA and hope that they lea'e (ith

something that they did not plan on 7uying. 1 great e,ample of a retailer using a tactic to

instigate this is 3ass "ro Shops &utdoor 6orld. The retail store has fishing poles that you can try

out8 ponds (ith fish s(imming around8 and old (ooden 7oats that ha'e historical significance.

This atmosphere in the store is supposed to replicate the outdoor e,periences that the consumer

(ill 7e faced (ith 9fishing8 hunting8 camping8 etc.; and therefore increase the consumer4s

comfort le'el and dri'e purchases.

1fter the retailer lures the customer into the store8 the ne,t marketing tactic that the

retailer must 7e a(are of is the fact that the more time people spend in a store8 the more they (ill

7uy. Therefore the retailer must ensure a comforta7le and easy layout of the store for the

customer4s con'enience. The easier it is for the consumer to na'igate the store8 the more they

(ill choose to shop at that store. 3ut on the flip side8 retailers (ant to ha'e the consumers linger

in their stores as long as possi7le 7ecause @the amount of money (e spend in supermarkets is

tied to the amount of time (e spend in themA 93erger8 #5;. So the retailer must ha'e a 7alance

of easy access and strategic placement of products to ensure that the customers co'er as many

aisles as possi7le. Dog food8 for e,ample8 is in the middle of the aisle (ith all of the outdoor

items and paper products. This is 7ecause the retailer (ants to ha'e the customer pass 7y all of

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the paper products that they may ha'e forgotten that they need and therefore purchase it e'en

though they had no intention of doing so.

Ethical pproach:

-ritics (ill argue that marketing tactics used for the purpose of increasing impulse

purchases are unethical. Stakeholder theory suggests that a 7usiness should 7e concerned a7out

all people (ho are affected 7y the decisions that a 7usiness makes. Shareholder theory states that

a 7usiness has one social responsi7ility: to increase profits. 1 Stakeholder theorist (ill think that

the grocery and food industries participate in some of the most unethical practices regarding the

temptation of impulse purchases.

?roger 9a grocery chain; o(ns t(o other grocery companies8 Food for Less and Ralph4s.

Food for Less targets lo($income neigh7orhoods and uses @more e,tensi'e impulse marketing

strategies that promote lo($nutrientA 9-ohen and 3a7ey8 #0#; foods. This should 7e compared

to the Ralph4s supermarkets (hich are found in higher$income neigh7orhoods in the same city. !n

addition to more aggressi'e marketing strategies8 the produce department is in the front of

Ralph4s supermarkets and in the 7ack past all of the cookies8 doughnuts8 and sugar s(eetened

7e'erages of Food for Less supermarkets. This e,ample suggests that people (ith lo(er incomes

are @more 'ulnera7le to impulse marketing techniuesA 9-ohen and 3a7ey8 #0#;. &n the other

hand8 Shareholder theorists (ould argue that these aggressi'e marketing techniues targeted to

lo(er$income neigh7orhoods are ethical in that ?roger is seeking profits (hich is their only

social responsi7ility.

(oo' head:

6hen thinking a7out these marketing tactics that retailers can implement to encourage

impulse purchases8 it is important to understand the history of ho( people shop. The 7est

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indicator of ho( a person shops is to o7ser'e ho( a person has 7eha'ed in the past 7ecause @the

7asic consumer personality that guides and directs 7eha'ior is fi,ed o'er timeA 9Daniger8 #);.

Think 7ack upon the e,amples of ho( coupon users normally shop. 1 person (ho is 7rought up

to 7e thrifty and use coupons (ill 7e more likely to use coupons in their adulthood than someone

(ho (as not 7rought up in that en'ironment. The types of products that a person purchases (ill

change as they gro( older8 7ut they (ill continue to use similar 7uying ha7its as they did (hen

they (ere a young adult. 6e can e,trapolate this to consumers (ho are considered to 7e impulse

purchasers. 1 person (ho cra'es satisfaction and an emotional response that comes after an

impulse purchase (ill continue to purchase on impulse 7ecause the @consumer mind$set is fi,edA

9Daniger8 #);. So if marketers can accurately predict (hat a consumer (ill do 7ased on

his2her past 7eha'iors8 then (hat challenges do marketers face (hen choosing the correct

strategies to implement to increase impulse purchases and traffic flo( in a storeK The ans(er is

there are changes in demographics as (ell as cultural8 economic8 and political changes in the

en'ironment.

&ne of the most prominent changes in consumer 7eha'ior stems from the fact that the

>nited States4 population is aging. The 7a7y 7oomers make up for this aging population as there

are a7out H* million people included in this generation. Marketers (ill ha'e to respond to this 7y

increasing the amount of deli'ery ser'ices a'aila7le and enticing the population (ith senior

discounts to get them 7ack into the stores. The reason for this is 7ecause the amount of

discretionary products purchased 7y a consumer @starts to slo( after age 55 and drops sharply at

age *5A 9Daniger8 #);. 3ut marketers must not ignore the H0 million people (ho are the 7a7y

7oomers4 children. The people in this generation are no( considered adults and are 7uying their

first homes. +conomy$priced goods (ill 7e in high demand for this group 7ecause they are

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7eginning to start their o(n families and ha'e to stretch their paychecks as far as they can to

make ends meet.

1nother trend affecting consumer spending and 7eha'ior is the fact that time is 7ecoming

more 'alua7le to consumers. The amount of time that people shop has decreased (ith consumers

'isiting # to % stores in 0// to 7uy maCor purchases8 @to only 0. stores todayA 9Daniger8 #);.

This makes it crucial for retailers to ha'e a (e7 presence 7ecause con'enience and time is no(

of the essence. !n addition to time8 the idea that consumers are no( focusing on the e,perience of

a product or ser'ice 'ersus the material or physical attri7utes of a product is no( apparent more

than e'er. This can 7e attri7uted to the rise of internet use and consumers cra'ing the interaction

of people and products in the shopping e,perience. This is contradictory to the fact that many

consumers are turning to the internet for their shopping and price comparisons.

6ith the contradictions that marketers must learn to react to8 it is crucial for retailers to

ha'e a di'erse profile. This means that retailers must ha'e an online presence so that the retailer

(ill reach out to consumers (ho 'alue their time and prefer to order online as (ell as a @physical

presenceA in the form of a 7rick$and$mortar store. The physical presence of a retailer is important

7ecause consumers are cra'ing e,periences. For e,ample8 ome Depot is famous for offering

uality information on ho( to use the home$impro'ement products that they sell. This is

'alua7le to the consumer and other retailers should implement an @e,periential$retailing

programA 9Daniger8 #); in order to target the consumers (ho are seeking a differentiated

retailer (ith a uniue product offering.

The e'er$changing market is the focus of marketers4 concerns 7ecause that is (hat

ultimately affects ho( a consumer (ill 7eha'e. 3ut (ith the kno(ledge of @(hyA a consumer

spends the (ay they do8 it is easier to determine the @(hat8 (hen8 ho(8 and ho( muchA of a

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consumer4s 7uying po(er. !mpulse purchases (ill al(ays 7e present 7ecause of the need for a

consumer to achie'e an emotion or 7uy something that they ha'e determined that they ha'e to

ha'e. Therefore8 it is the Co7 of the marketers to make sure that there are appropriate product

offerings in the right places of a store in order to dra( the customer4s attention to the 7enefits of

a product in order to Custify the impulse purchase.

#ibliograph$

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3aumeister8 R. F.8 eatherton8 T. F.8 Tice8 D. M. 90//);. Losing Control: How and Why People Fail at

Self-Regulation.San Diego8 -1: 1cademic "ress8 !nc.

3erger8 1. 1. 9#5;. Shop 'til You rop: Consu!er "eha#ior and $!eri%an Culture.Lanham8 MD:

Ro(man B Littlefield "u7lishers8 !nc.

3indah8 +. .8 B &thman8 E. 9#0#;. The tantaliing factors associated (ith compulsi'e 7uying among

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Mayer8 M. 9#008 1ugust;. 6hen clipping coupons 7ecomes e,treme. Sna% Food 3 Wholesale "aery8

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the influence of consumer emotions and external cues on impulse purchases

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