Impact of Sales Promotion

in Impulsive and Compulsive

Buying Behavior
Prepared by
Hany Galal Elsamman

Supervised by
Prof. Dr. Ismail Elsayed
Aim of the Research
The purpose of this study was to examine the impact of
sales promotion (especially price discount and bonus
packs) on consumer’s impulse and compulsive buying
behavior.
Why I did this literature ?
 Sales Promotion due to sever competition among
retailers become an aggressive weapon to capture
larger market share through giving an additional
motivating force to the intended customer to buy.

 Although Impulse and compulsive purchasing are two

non-standard purchasing practices, impulsive buyer
represent more than 50% of buyers.
Importance of this literature
 This paper discusses the antecedents and
consequences of both impulsive and compulsive
buying behavior and the effect of sales promotion
technique on them.

 Also it explain the importance of impulsive and

compulsive buying behavior for the retailers and
which type is more beneficial for them to induce.
Methodology
 The literature review is used 40 journal articles that
discuss the impact of sales promotion on the impulsive
and compulsive buying behavior.
Skeleton
 Sales promotion
 Impulsive buying behavior
 Compulsive buying behavior
 Impact of sales promotion on impulsive and
compulsive buying behavior
 Discussion and conclusion
 Recommendation
 Limitation
Sales promotion is set of promotional tools which
encourage a direct response from consumer through the
offer of short term incentives leading to quicken buying
process and expanding sales volume.
 Importance

 Manager understand that the sales promotion is

effective technique to expand sales volume and achieve
company target.
 The ability of sales promotion to encourage sales
although there is inflation and recession in the
economy.
Sales promotion Type
Price Discount

the client can get the same

product at decreased price
Coupons

the voucher by which the holder of the voucher is

qualified for a markdown on a specific good for which
retailers hold the first price
Bonus Pack

clients are offered a greater

amount of the product at a
similar cost
Loyalty Programs
Consumer Buying Behavior
Impulsive Buying Behavior
Impulsive Buying Behavior
 It is a sudden and unplanned buy, with no pre
shopping expectation either to purchase the product or
to satisfy a particular purchasing function .

 Regular behavior among customers around the world.

 Retailers have discovered that more than 50 percent

of shopping center customers make impulse buys
Characteristics of Impulsive buying:
 unscheduled and there is no purchasing goal before
the passageway of the customer into the store.

 The buy choice is made on-the-spot and the buying

process occur suddenly at the point of purchase

 Stimulus is the thing that triggers drive purchasing.

Impulse buying behavior antecedents
Dispositional antecedents or internal factors
 Dispositional or internal factors refer to the
individual’s internal cues and characteristics that make
him / her engage in impulse buying .

 Dispositional factors relevant to impulse buying

include psychological constructs such as spontaneity,
variety ,novelty seeking propensity, susceptibility to
influence, need for cognition, esteem,
Socio-demographic antecedents:
 Social factor involve employee influence and other
customers influences .

 Demographic factors gender and income ,etc.

 The huge increase in salaries and credit accessibility

has made impulse purchasing in retail conditions
Situational antecedents or external factors:
 situational antecedents are outside external events,
stimuli or present conditions of being simply the
purchaser may discover in at the moment of impulsive
urges.

 Situational factors are generally not under the

immediate control of the customer but rather directly
affect the probability of motivation purchasing
conduct
 Retail environment
 Retail environment play a very vital role in brand
selection and valuation in the consumer mind.
 retail environment involve the store size,
atmosphere, layout, color pattern, music, lighting
and style.
 Store environment affect positively the impulsive
purchasing behavior leading to customers’
satisfaction and higher share of the overall
industry of the retailers
 Marketing stimuli (in-store promotion
 In-store promotional activities like discounts, price
reductions and extra-product promotions lead to
impulse buying by a consumer .

 In-shops promotion such as price discount, coupon

and bonus pack is one of the most effective tools in
inducing impulse behavior
Compulsive Buying behavior
Compulsive Buying behavior
 Compulsive purchasing Behavior also called shopping
addictive or pathological purchasing issue,

 chronic, repetitive purchasing behavior that happens

as a reaction to negative occasions or emotions

 .
 Characteristics of compulsive buying behavior:

 must be repeated and it must causing problem for the

person

 Show high proportions of depression and anxiety have

low confidence and have a high inclination for
imagination

 Patients with compulsive buying, they seldom or

never utilize the purchased things
 Compulsive Buying Antecedents:
 Neurological Factors:

Neurological studies outline disturbed

neurotransmission in compulsive purchaser samples
(mainly in the serotonergic, dopaminergic and opioid
systems) and altered activations in front parietal
regions, reward processing and limbic systems
Psychological Factors
 Compulsive purchaser encounter negative psychological
states, for example, Anxiety, misery, stress and lower
confidence, they wind up in a terrible state of mind and
they purchase urgently as an adapting system

 Anxiety is contended that the essential inspiration for a

purchaser to take part in compulsive purchasing conduct is
to escape from anxiety, to calm pressure and in the long
run make them feel cheerful
Psychological Factors
 Stress is one of the most important variables that
induce the compulsivity, buyers try to get rid of the
bad feeling of stress by immersing them self in the
shopping mall and buy compulsively

 Self-esteem :Consumer with low self-confidence

usually has more Likelihood of buying compulsively
Social Factors
 Socio-culture factor tend to focus on materialistic
dimensions

 Materialism is essentially contributes in the

advancement of Compulsive purchasing conduct in
the shopping center because the Materialistic shoppers
are more keen on getting an item as opposed to
utilizing it and they seldom utilize the purchased good
 Compulsive Buying Consequences:
 Compulsive purchasing has aggressive hurtful
personal (stress, wretchedness, nervousness, bring
down confidence, blame), social (criticism, disgrace,
concealing behavior, criminal troubles, lawful
troubles) and financial (obligations, powerlessness to
meet installments) consequences
Compulsive Buying Consequences:
 At the beginning the compulsive buyer think that they
actually get rid of the anxiety, stress but that
temporary satisfaction converted to bad and negative
outcomes
 Despite the fact that at first look show shopping may
give off an impression of being beneficial for retailers,
as it prompts higher sales , such conduct may in the
long run be unsafe to net revenues; for example, if
clients return obtained things or participate in negative
word of mouth
Impact of sales promotion on
Impulsive Buying behavior
Sales promotion and Impulse Buying Decision
 Buy one win one technique has a great impact on
impulse buying conduct and it highly recommended
for shopper due to its ability in engaging buyers and
expanding sale volume

 Loyalty programs comes second in sales promotional

tools utilized by clients and it has a strong impact on
arousing impulse buying
Sales promotion and Impulse Buying Decision
 Price discount tools has good impact in inducing
impulse behavior as it stimulate house hold to shift
and buy earlier than planned
Sales Promotion on Compulsive buying Behavior
 Price discount (saving) is the most powerful technique in
inducing compulsive buying
 The discount gives such a reason and furthermore
stimulating shopping delight and the perceived value of
buys
 Bonus packs (especially gift) has moderate effect on
inducing compulsive buying
Conclusion:

 Price discount has moderate impact on impulsive

buying while has greater impact on the compulsive
buying.
 Bonus pack has greatest impact on impulsive buying
while has moderate effect on the compulsive buying
 Loyalty programs have greatest effect on inducing
impulsive buying behavior.
Conclusion:
 Impulsive buying behavior is an important conduct for
the retailers and they should understand all factors
affecting it.
 The compulsive behavior is an addictive and
pathological disorder that shouldn’t rely on it due to
its negative consequences as return of goods and
negative word of mouth to the retailers.
Recommendation
 Retailers should depend more on attracting impulsive
buyer than try to attracting compulsive buyers.
 Future studies should include the online sales
promotion on impulsive and compulsive buying.
 Future research should focus on the other factor either
sales promotion that affect impulsive buying behavior
( for example store patronage)
Thanks