Impact of Store Size on Impulse purchase

Introduction

Unplanned purchases are defined as purchase

made in a store that are different from the consumer planned to made
prior to entering the store. Marketers and retailers tend to exploit
these impulses which are tied to the basic want for instant
gratification. For example, a shopper in a supermarket might not
specifically be shopping for confectionary. However, candy, gum,
mints and chocolate are prominently displayed at the checkout aisles
to trigger impulse buyers to buy what they might not have otherwise
considered
Abratt and Goodey(1990) define impulse buying as a
purchase decision made in-store with no explicit recognition of a
need for such a purchase prior to entry into the store. Organized retail
stores are designed in a manner so as to appeal to the senses of the
consumers into making Impulse purchases. Even the mom- and-pop
shops are being designed with soft music and serene environment
which appeal to customers’ emotions. The increasing disposable
income of the consumers is also adding to the increase in Impulse
purchases by the customers. New technologies, such as teleshopping
channels and Internet, act as catalysts of consumer’s impulse buying
behavior as they increase both the accessibility to products and
services, and the ease with which impulse purchases can be
made(Kacen and Lee,2002)
Impulse buying disrupts the normal decision making
models in consumers' brains. The logical sequence of the
consumers' actions is replaced with an irrational moment of self
gratification. Impulse items appeal to the emotional side of
consumers as ageing a logical sequence of consumers’ action. Some
of the items bought on impulse are not considered functional or
necessary to the consumers. Unplanned purchase implies a lack of
rationality or alternative evaluation. Unplanned purchase can be
further subdivided into two categories. i. Reminder Purchases-would
occur when a consumer notices Band-Aids in a store & remember
that she is a almost out at home .ii) Impulse Purchase would occur
when a consumer sees a candy bar in the store & purchases it with
little or no deliberation as the result of a sudden, powerful urge to
have it.
The stimuli is the basic structure to which an individual
responds. The product, package advertisement, or sales presentation
have a major impact on the nature of the mental processes that are
activated and an the final meaning assigned to the message.

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 Various in-store stimuli attract the mind of a customer to
fulfill his various needs and fancies (Kollat and Willett,1967). For
example, marketers and retailers prominently display candies,
chocolates, battery cells and other small ticket items to motivate the
customers to purchase the goods, that they would not have
otherwise purchased. Customers also purchase products which
stimulate their interests.
In-store stimuli, such as product display, product price
,large variety, store ambience, etc. ,from the core reasons that
influence consumers to purchase on impulse. In-store stimuli are
possible only for big and medium –sized organized retail stores.
Small-sized retail stores, are less capable of attracting Impulse
purchase. A prominent reason is that customers can choose the
products themselves in a big store. Also, the big stores are quite
spacious and well-fit to attract purchase from a customer. This is
particularly true in India where small-sized stores are not designed in
a supermarket like manner and the store keeper fulfills the
customer’s order rather than allowing him to go inside and pick the
goods for himself.
However, a problem with the big-sized retail stores is that
owing to the heavy investment in the store ,the turnover of the store
(and it partially refers to impulse sales) must also be sufficiently high
to justify the investment. In other words, as the store size increases
,it becomes necessary that the Impulse purchase also increase
correspondingly to the turnover of the store.
In the context of our research, the ratio of Impulse purchase
to the total spending should also be competitive as compared to a
medium or a small sized store. Therefore, we make an attempt to
study the influence of the store size on Impulse purchase. While there
have been many studies (e.g., Kollat and willet.1967) on the influence
of in-store stimuli on impulse buying, these studies do not consider
how customer Impulse purchase would differ across various store
sizes. The study also contributes by identifying various insightful
strategies for an organized retailer to attract more Impulse purchases.

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Objective

1) To Know the size of the store has a positive influcence on the

amount of impulse purchases made by the cutomers.

2) To Know the type of stimuli has a positive influence on

customer’s impulse purchase made from stores of different size.

3) To Know the type of items has a positive influence on customer’s

impulse purchase made from stores of different sizes.

Research Methodology

Data Collection:

In this study, survey method was used to collect

data. The Questionnaire was developed in a simple manner which
asked the respondents the size of their planned and unplanned
purchases as well as the categories of items that they purchased in
an unplanned manner. The money spent on planned and unplanned
purchases was used as a measure of size of the planned and
unplanned purchases. The data was collected using simple random
sampling from various small-medium and big sized fifteen retailers in
Islampur. Every third customer to the size was sampled. The store
size was coded as small, medium and big according to the size of the
store. all the small size (such as kirana stores) coded as ‘1’ The
medium sized supermarkets and bazaars were coded as ‘2’ and the
big-sized stores were coded as ‘3’.

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Rationale of the study

It is seen that shopping mall owners tried to

exploit impulses, which a associated with the basic need for instant
satisfaction. A buyer in the shopping store might not specially be
shopping for the confectionery items displayed at prominent places
will certainly attract buyers attention and trigger impulse buying
behavior in them. this phenomenon can easily be understood with
the help of two principle/factors as a part of psychological review of
literature, which interprets impulses as the consequences of these
competing principles/factors
These principle are well presented in the papers of Fread (1956) &
Mai ,et al (2002) These principle are stated below.
i) First, the Pleasure Principle
ii) Second, the reality principle
The Pleasure principle to immediate satisfaction felt by
consumer whereas the reality principle is related to delayed
gratification. There is always an ongoing competition between these
two forces represented as principle within the buyer when they enter in
store with the intention to buy. As a consequence impulse related
behavior overcomes them because impulses are usually difficult to
resist and involve premeditated pleasurable experiences as of a study
of Rook(1987)

Role of in-store stimuli in Impulse Buying

In-store stimuli are promotional techniques employed

to increase unplanned (or subconsciously planned) purchases.
These techniques include in-store sitting, on-shelf positions, price-
off promotions, sampling, point-of-purchase displays, coupons, and
in-store demonstrations. Retailers try to increase the number of
impulse purchase through store design, product displays, package
design and sales (Hoyer and machnis,1997).
Studies (Cox,1970; Curhan, 1974; Wilkinson et al.,
1982; and Limentour et al.,1984)report a positive relationship
between the total unit sales of an impulse product brand having high
consumer acceptance and the amount of shelf space given for that
brand. However, no relationship has been reported between total unit
sales of an impulse product brand having low consumer acceptance
and the amount of shelf space given for that brand.
On-shelf position also influences unit sales of
supermarket products (Sewell,1984; and Abratt and
Goodey,1990).This is because the consumers have a natural
tendency to focus and perceive at eye level. Displays can therefore,
increase the rate of unplanned purchase in retail stores (Peak and
Peak,1977; and Auelch,1983).Many studies have been conducted in
an attempt to quantify the sale responsiveness of displays. All the
found that the displays increased the sales of the items exhibited .

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Literature Review

Research findings suggest that emotions and feelings

play a decisive role in purchasing, triggered by seeing the product or
upon exposure to a well crafted promotional message. Such purchases
ranges from small (chocolate, clothing, magazines) to substantially
large (jewelry, vehicle, work of art) Impulse Buying as a purchase
decision is discussed In detail by Kollet and Willett,1967: Bellenger et
al.,1978; and Abratt and Goodey (1990).
Rook and Gardner (1993) identify two important
characteristics of Impulse Buying, namely: rapid decision-making and a
subjective bias in favor of immediate because it is made while shopping,
although the individual was not actively looking for that item, had no
pre-shopping task, such as looking for a gift which satisfies the
customer.
Kollet and Willet study is important as it attempts to
explain customer difference in unplanned purchasing behavior.
However theses studies are concentrated on supermarkets and big-
sized organized retail stores. In-store stimuli cab also occur in a
relatively small-or medium-sized store. Particularly these days even
small stores lay emphasis on attractive and elegant store designs.
Therefore, in this research we study how the impulse purchase
behavior differs across various store size. Owing to the high turnover
in a big organized retail store, the impulse purchase must also be
proportionately high.
Kollat and willet (1967) General study of Impulse
purchase behavior In store of a national supermarket chain look into
the influence of external stimuli .Average customer purchase 50.5%
of the products on an unplanned basis;\the incidence of unplanned
purchase varies greatly for customers.
Popai/Du Pont (1977) Study of consumer buying habits
look into the influence of external stimuli.65% of all supermarket
purchase decisions were made in-store with over 50%of these being
unplanned; Rate of unplanned purchase differ for different product
categories; Reasons for unplanned purchase-38%(Retail forces),29%
(Manufacturer forces),24%(world of mouth force),9% (other).
Bellenger et al.(1978) Infuse of demographic factors on
Impulse Buying behavior and finding are Shoppers under 35 years of
age were more prone to impulse buying compared to those over 35
years old.
Johnson and williams (1984) General study on consumer
Impulse buying behavior study also highlights major differences
between impulse purchases for various product categories. 20% of
purchasing decisions were made inside the store; there were
important differences between the product categories.
Abratt and Goodey(1990) Influence of in-store stimuli and
culture on consumer impulse purchase behavior confirm the role of
in-store stimuli do affect unplanned purchase quite significantly; 70%

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of unplanned purchase are due to promotional techniques, namely;
point -of –sale, shelf signs, end-of-aisles displays, and special
displays.25% of unplanned purchase are made when the respondent
‘remembered a need’ for the product.

Garder(1994) Influence of consumers’ mood on impulse

buying behavior this study finding is Consumer’s positive moods
were more conducive to impulse buying than negative moods.
Donovan et al. Consumer’s mood or emotional state
influences impulse buying behavior study also highlights Feeling of
pleasure in the shopping environment are positively related to
impulse purchase behavior.

Rook and Fisher (1995) Self -identity and impulse buying

behavior and finding are Men reported more personal (independent)
identity reasons for their purchases whereas women reported more
social (rational) identify reasons.
Beatty and Ferrell (1998) Impulse purchasing tendency
as a consumer personality trait and finding of this studies is
Consumer’s positive moods was associated with the urge to buy
impulsively.
Wood (1998) Influence of age on impulse buying
behavior this studies finding is impulse buying increase slightly
between the 18-39 years of age and declined thereafter
Kacen and Lee (2002) Moderating influence of culture on
Consumer’s impulse buying behavior this study also highlights
Individual cultural difference factors systematically influence
Impulsive purchasing behavior.

Jones et al.(2003) Extends the notion of impulse buying

tendency from a general personality tendency to a more product-
specific variable this studies finding are Product –Specific
conceptualization of the impulse buying behavior was a better
predictor of actual Impulse purchasing behavior.
A study published in the June 2008 issue of the Journal of
Consumer Research suggests that consumers are more susceptible to
making impulsive purchases for one brand over another if they are
distracted while shopping. In the study, Central Michigan University
Psychology professor Bryan Gibson surveyed college students by
measuring their preference for a variety of soft drinks, including Coke
and Pepsi. Results of Gibson's study found that implicit attitudes, or
those that people may not be conscious of and able to verbally express,
predicted product choice only when participants were presented with a
cognitive task, suggesting that implicit product attitudes may play a
greater role in product choice when the consumer is distracted or
making an impulse purchase.

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Theoretical Background

Literature provides two explanation of the impulse

buying behavior (Abratt and Goodey,1990), namely exposure to in-
store stimuli and customer commitment. The exposure to in-store
stimuli states that in- stimuli produces impulse purchase simply
because it acts as a reminder of the shopping needs. According to
kollat and Willett (1969), in-store stimuli assist in making purchase
decisions and offer consumers new ways of satisfying needs.
Customer commitment hypothesis maintains that
impulse buying is in part attributable to incomplete measure of
purchase plans (Kollat and Willett,1969; and Abratt and
Goodey,1990)concluded in a study of 600 supermarkets that some
unplanned purchase were probably a result of exposure to in-store
stimuli. Other unplanned purchases are actually not unplanned at all,
but are caused by the way in which the behavior is usually measured.
If this is accepted, then the results of various studies measuring
unplanned purchase, using the interviewing technique referred by
Kollat and Willet(1967)would be inflated to the degree to which the
unplanned purchases made are not a result of exposure to in-store
stimuli. In other words, the customer-commitment hypothesis
explains that these stimuli play a vital role in reminding the
consumer that certain products were (Subconsciously) planned and
should be purchased.
However, the two explanations support the role
of in-store stimuli in impulse buying. Therefore, we consider that
buying in-store stimuli influence impulse buying.

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Data Analysis:
Table 1: Descriptive statistics of Respondent Characteristics

Attribute Measured Item Frequency Percentage%

Small 10 25
Store Size Medium 15 37.5
Big 15 37.5
20-29 12 30
Age 30-39 20 50
>=40 8 20
Male 25 62.5
Gender Female 15 37.5
<1Lakh 3 7.5
Annual Income 1-3 Lakh 15 37.5
3-5 Lakh 5 12.5
Not 17 44.5
Answered
Student 6 15
Housewife 12 30
Profession
Employed 16 40
Self- 2 7.5
employed
other 2 7.5
Purchase Frequency <1= time 16 40
2-3 time 16 40
4-5 time 4 10
>5 time 4 10
Alone 14 35
Accompanied with Family 13 32.5
Marital status
Friends 13 32.5
Married 35 87.5
Unmarried 15 12.5
Product 15 37.5
display
Product Price 16 40
Large Variety 7 17.5
In-store
Store 1 2.5
stimuli(Yes)
Ambience
Need of the 1 2.5
Hour

Apparel 2 5
Furniture 2 5
\home 1 2.5
Appliances
Departmental
Electronics 1 2.5
Unplanned
Purchases Toiletries 6 15
Cosmetics 9 22.5
Sporting 1 2.5
Goods
Groceries 1 2.5

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 Toys 2 5
Fruits & 6 16
Vegetables
Footwear 9 22.5

Total 40 100%
Table 2 Influence of the Type of Stimuli on impulse purchase Across
Various Store Sizes.

Store Size Total

In-Store Stimuli
Smal Medium Big
l
Product Display 2 3 10 15
product Price 6 4 6 16
Large variety 1 2 4 7
Store Ambiences 0 0 1 1
Need of the hour 0 1 0 1
Total 9 10 21 40

We analyzed the in-store stimuli

across various store size. The results are shown in Table 3. Table 3
shows that the product price is the greatest stimulant of impulse
purchase for small-sized stores. For big stores, the product display
and the product price influence customer impulse purchase In other
words, in-store stimuli of impulse purchase vary across store size.

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Table 3 Type of the Item Purchase on Impulse Across Various Store
Sizes.

Departments Store Size Total

Small Medium Big
Toiletries 3 2 1 6
Footwear 2 3 4 9
Cosmetics 3 4 2 9
Fruits & 2 1 3 6
Vegetables
Total 10 10 10 30

From table 1, we found that toiletries,

footwear, cosmetics and fruits and vegetables were the most
frequent items purchased on impulse. Therefore, we analyze only
these four categories across various store sizes. The results are
shown in Table.3 Toiletries and cosmetics formed the largest
categories of impulse purchases from small sized stores. Footwear
contributed the largest category of impulse purchases from big-sized
stores.

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 Table 5 Demographics of Largest Impulse Purchase Categories

Demographics Toiletrie Footwea Cosmetic Fru

s r s Veg
Female 3 4 4 2
Gender Male 3 5 5 4
<20 2 4 1 0
Age 20-29 1 2 3 0
30-30 2 2 4 2
>=40 1 1 1 4
Student 1 1 2 1
Professio Housewife 1 3 0 2
n Employed 2 1 3 2
Self 1 2 4 0
Empl
oyed
Other 1 2 0 1
Married 5 6 6 5
Marital Status Unmarried 2 3 3 1

Purchase <=1 1 3 3 2
Frequen
cy
2-3 Times 2 2 2 2
4-5Times 2 2 2 2
>5 Times 0 2 2 0
Alone 2 3 5 2
Accompanied
Friends 2 4 2 3
with

Family 2 3 2 1

Total Unplanned 06 09 09 06

Analyzed the demographics of these four

categories of impulse purchases as shown in table 5 the unplanned
purchases were made by females, except for cosmetics and fruits and
vegetables category where males made most of the purchases. males
made most of the unplanned purchase in cosmetics when they visited
the store alone. most of these males were married and above 30 years
and most of the unplanned purchase took place among the married

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people. however, when males were accompanied with their friends,
they purchased fruits and vegetables. most of the unplanned
purchase were made by service class people.

Finding

1) Most of the impulse buyers (37.5%) belong to middle class with

an annual income ranging from one to three lakh per annum.
2) Most of the respondents were employed, married males in the
age group of 30-39 years.
3) Students hardly purchase on impulse.
4) Groceries and electronics attracted least unplanned purchases.
5) Fruits and Vegetables, Cosmetics, Footwear and toiletries
contributed the maximum to impulse purchase in terms of volume.
6) Incidence of impulse buying was common among the initial
buyers as compared to the frequent shoppers.
7) The product price is the greatest stimulant of impulse purchase
for small-sized stores. For big stores, the product display and the
product price influence customer impulse purchase and medium-
sized stores ,need of the hour influences customers to purchase on
impulse.
8) The females who made unplanned purchases were mostly
housewives, usually above 30 years. the unplanned purchases took
place when these females were accompanied with their family or
were alone.
9) Surprisingly, males made most of the unplanned purchases in
cosmetics when they visited the store alone. Most of these males
were married and above 30 years and most of the unplanned
purchases took place among the married people. when males were
accompanied with their friends, they purchased fruits and
vegetables.

Suggestions:-
1) High impulse purchase items (fruits and Vegetables,
cosmetics, footwear, toiletries, etc.,) that need to be displayed to the
customer at places where they attract maximum attention of the
customers (such as near billing point, or at the shelf level equal to
the eye of the customer).On the other hand, the low impulse
purchase items can be stored as lower shelf levels as compared to
impulse purchase items).

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Conclusion

In this study, we attempted to extent the findings of previous

study by analyzing impulse purchase across various store sizes.
Surprisingly, the impulse purchases contribute more to total sales in
medium-sized retail stores rather then big-sized retail stores .Need of
the hour was the main factor that contributed to impulse purchase in
medium-sized retail stores, while product display and product prices
were the major in-store stimuli in large stores. For small-sized stores,
product price was the main factor that attracted impulse purchases.
Also ,the product categories that attracted impulse purchases were
different in different stores. One of the reasons for such a result
could be that the customers perceive big retail stores to the costlier
than small stores. Moreover, there is hardly any difference in prices
of a big retailer and a medium-sized retailer thereby inhibiting
customers to purchase from a big retailer. And the convenience
obtained in a big-sized retail store is available in a medium-sized
store also. As consumers mostly go to these stores for purchasing
groceries, big-sized retailers do not pose any special advantage over
small-sized retailers. For products apart from groceries, even big-
retailers do not keep as much variety as a specialized small-or-
medium-sized store.

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References

1.Abratt R and Goodey S D (1990), “Unplanned Buying and In Store

Stimuli in Supermarkets”, Managerial and decision
Econimics,Vol.11,No.2 pp.111-121

2. Betty S E and Ferrel M E (1998), “Impulse Buying: Modeling Its

Precursors”, journal of retailing Vol.74,no.2.pp 169-191

3. Bellenger D N Robertson D H and Hirschman E C (1978), “Impulse

Buying Varies by product”, Journal of Advertising
Research,Vol.18,pp.15-18

4.Hoyer W D and Maclnnis D J (1997),Consumer Behavior, Houghton

Mifflin.

5.Kacen J T and Lee J A (2002),”The Influence of culture on customer

Impulsive Buying Behaviour”, journal of consumer
psychology,Vol.12 No.2,pp. 163-176

6.Freud.s (1956) “Formulation on the two principles of mental

Funtioning” in the standard Edition of the complete psychological
works of Sigmund & A.freud, eds, London

URL’s
WWW.Google.Com
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 Topic:- Impact of Store Size on Impulse purchase

Index

1) Introduction

2) Objectives of the Study

3) Research Methology

4) Literature Review

5) Analysis & Findings

6) Conclusions

7) Bibliography

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