“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
1
1/2019
(№
00039)
IMPACT OF STORE ATMOSPHERE ON IMPULSE BUYING BEHAVIOR OF
UZBEK CUSTOMERS
Iroda Komilova,
Senior Lecturer at Westminster International University in Tashkent
Abstract:
Today, most retailers know that impulse purchasing is one of the most crucial
concept in consumer behavior, and from 40% to 80% of all purchases depending on product
category are took place by impulse buying behavior
[1, 2]
. Variety of factors – personal, situational,
product related that influence on impulse purchasing behavior of customers
[3]
. In some cases,
environment of the store has more power in promoting customers in buying decision than product
itself
[4]
. Store atmosphere includes lighting, color, sound, signage, scent, taste
[5]
.
Key words:
impulse buying, signage, smell, light, consumer behavior.
Аннотация:
Сегодня большинство розничных продавцов знают, что импульсивная
покупка является одной из самых важных концепций в изучении потребительского
поведения, и от 40% до 80% всех покупок происходит как результат импульсного
поведения покупателей. Существует множество факторов, которые влияют на
импульсное покупательское поведение, такие как личностные, ситуационные, факторы,
связанные с продуктом. В некоторых случаях окружающая среда магазина имеет больше
влияния на процесс принятия решения о покупке, чем сам продукт. В атмосферу магазина
входят такие факторы как освещение, цвет, звук, расположение товара, запах, вкус.
Ключевые слова:
импульсивная покупка, вывески, запах, свет, потребительское
поведение.
Аннотация:
Бугунги кунда аксарият сотувчилар истеъмолчиларнинг хатти-
ҳаракатини ўрганишда энг муҳим омиллардан бири бу импульсив яъни тўсатдан ҳарид
қилиш эканлигини билишади ва умумий харидларни 40% дан 80% ни импульсив ҳаридлар
ташкил этади. Истеъмолчиларнинг импульсив ҳарид килиш хатти-ҳаракатига бир
қатор омиллар таъсир қилиши мумкин, масалан, шахсий, атроф муҳит ёки махсулот
билан боғлик бўлган омиллар. Баъзи холлатларда, дўкондаги муҳит харидорларни
маҳсулот сотиб олишига маҳсулотни ўзидан кўра кўпроқ таъсир кўрсатади. Дўкон
муҳити деганда дўкондаги ёруқлик, ранг, товуш (мусиқа), ҳид, маҳсулотни жойлашиши
назарда тутилади.
Introduction
Impulse buying accounts for a sizeable percentage of all purchases according to
recent industry research. And primary objective in retailing is to increase impulse
temptation of consumers to enhance sales
[6,7]
. Canadian grocery chain observed that its
profitability would increase by more than 40% if each customer purchased an additional
item on impulse
[8]
.
Many researchers until now investigated impulse buying and its antecedents
including individuals’ impulse buying tendency
[1]
, impulse buying traits
[9]
, consumer
impulsiveness scale
[6]
, product involvement
[10]
, situational factors such as time and money
availability
[1]
, in-store advertisements
[11]
, in-store signage
[12]
, in-store slack
[13]
, display
[14]
,
and type of food consumed
[15]
. Majority of these studies were conducted in North
America, Europe and Asia. There is still little or no research on Central Asian consumers
who have unique peculiarities, characteristics, culture and buying habits formed living both
in centrally planned and free market economies.
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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This study aims to quantitatively investigate the relationship between dimensions of
store atmosphere and impulse purchases of Uzbek consumers in grocery shopping. More
specifically, identify the most influential factor that impacts on impulse buying behavior.
Also, current research examines differences in impulse buying behavior of male and female
consumers.
Literature Review
1.
Impulse buying
Impulse buying is a sudden, compelling, hedonically complex purchase behavior in
which the speed of the impulse purchase decision precludes any thoughtful, deliberate
consideration of alternatives or future implications
[16, 17, 18]
. Impulse buying is more
emotional than rational, which is why it is why it is normally used by states of intense
feeling. It is powerful and persistent urge to buy something immediately
[17]
. The purchase
is unintended because it is made while shopping, although the individual was not actively
looking for that item, had no pre-shopping plans to buy the item, and was not involved
with a shopping task, such as searching for a gift
[19]
.
Although impulse buying behavior is classified as unplanned, research findings
suggest that unplanned purchases cannot be always classified as an impulse buy
[7, 20]
.
There are mainly two differences. First, unplanned purchases may happen when customer
has a need for the product but did not include it to shopping list. Second, unplanned
purchases do not necessarily accompany by strong positive feelings and urge
[21]
. Impulse
buying in its turn can be categorized using three criteria. First, it is spontaneous and
followed by improved mood and gratification. Second, urge during an impulse buy is
extremely powerful and difficult to resist
[9, 17, 22, 23]
. Third, the individual making an impulse
buy shows a diminished regard for any costs or consequences
[23]
.
2.
Factors influencing on impulse buying
Stern (1962)
[19]
characterized nine factors affecting impulse buying:
1 – Low price;
2 – Marginal need for item;
3 – Mass distribution;
4 – Self service;
5 – Mass advertising;
6 – Prominent store display;
7 – Short product life;
8 – Small size or light weight;
9 – Ease of storage.
In addition, there are other studies that investigate the role of various factors on
impulse buying. First group of factors are related with customers’ personal feelings or
emotions
[24]
; second with product itself
[25]
; and third with situation. Amos et al (2014) in
their turn classified independent impulse buying variables into three categories:
dispositional, situational, and socio-demographical
[21]
.
2.1.
Personal factors
All factors which are associated with person who is shopping, his feelings,
educational experience and mood states are grouped to this category. Previous researches
have shown that different factors from this group impact impulsive purchasing behavior,
including the presence of others, the consumer’s mood, trait impulsiveness, product
category impulsiveness, individual and environmental touch, self-identity, cultural
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orientation
[26]
, as well as demographic characteristics such as gender and age. Shoppers
under 35 – millennials - are more prone to impulse buying compared to those older than
35 years.
Behavior of men and women are different in terms of shopping preferences on
many levels
[27]
. Some researchers claim that women are more active in impulse purchasing
than their male counterparts
[28, 29]
, but opposite site of researchers
[30]
debated male
customers buy more impulsively than female customers. Behavior of women is impacted
by advertising, displays, atmosphere, promotions and approach of the personnel
[31, 32]
. In
contrast, Akram et al. (2016) state that men pay attention products what they need and try
to finish shopping fast with slight level of commitment, hence, women make more impulse
purchases then men
[33]
.
H1. There is impact of gender on impulse buying behavior of customers.
2.2.
Product related factors
Product related influences are product appearance and design. Retailers can
increase the number of impulsive purchases through product displays, store and packaging
designs, and contemporary marketing innovations (example, 24-hour convenience stores,
television shopping channels, and internet shopping)
[34]
. Other additional buying
motivators are the price discounts or sales
[35]
.
2.3.
Situational factors
Store accessibility, sales staff, time available for shopping, interior design of
shopping area, arrangement of equipment and merchandise within the store, display of
merchandise, point of sale promotional materials are main factors in third group.
According to researchers who support situational factors, impulse purchasing is
influenced strongly by enjoyable and stimulating store environment and that “pleasant
environment contributed to unplanned shopping and prepare the customer to make a
sudden decision to buy a product”
[30, 36]
.
Figure 1. Factors affecting impulse buying
Source: Author’s own research
Impulse Buying
Personal
Product
Situational
Education
Impulse Buying
Trait
Design
Discount
Store Atmosphere
Culture
Available Time
Available Money
Feelings
Demographics
Self-identity
Packing
Price
Easy of storage
Social Influence
Advertisement
Smell
Sound
Signage
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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3.
Store atmosphere
Store environment consist of ambient factors and is defined as “the effort to design
buying environments to produce specific emotional effects in the buyer that enhance his
purchase probability"
[4]
. Store atmosphere is captured by sense, thus features of store
environment are defined by sensory terms, and main elements of them are sight, sound,
scent and touch. Elements of store atmosphere are: color, size, shape, temperature in
store, layout, signs, symbol
[37]
, assortment, availability and effectiveness of salesperson
[38],
cleanliness of store, merchandise’s display
[39]
.
3.1.
Signage
According to many marketing researchers, retailers should maximize their effort to
visual factors in store to attract and impact on shopping behavior of customers to make
purchase. Vision sense of customers is the most influential factor, because 83% of
information is received by seeing to the brain
[40]
. Signage is one of the most effective
[41]
and assistant factor of visual characteristics in retailing store. Experiment with coffee
shows that using signs in aisles increase sales of coffee by two times
[42]
. Signage is
especially powerful stimulation tool for discounted prices. Combination of signage and
discounted prices in coffee experiment increased sales up to 3.5 times. This is due to
significant relationship between promotional signage and impulse buying behavior
[43]
.
When customer sees the discounted price tag, he or she tries to buy it to capture a chance
of saving money although it is unplanned and unneeded product.
H2. There is impact of signage (shelf-talker) on impulse buying behavior of
customers.
3.2.
Sound
Sound is one of the main sensitive factors that enhance the product delivery to
customer. Music is a major, frequent and common factor that instinctively encourages
mood and creates positive impression on impulse buying behavior
[33]
. Experiment with
music showed that when slow music played, sales increased by 38 % compared with fast
music
[44]
. When shopper listen pleasant background music, they spend more time than
usual, and consequently buy more products than planned. Music is an important non-
verbal communication with customer used to boost store atmosphere and persuade
impulse buying
[45]
.
H3. There is impact of background music on impulse buying behavior of
customers.
3.3.
Scent
Scent in store might be of two types: smell of the certain product and smell of the
environment
[46]
. In food, beverages, cosmetics and cleaning products customer can easily
evaluate quality of product by smelling it
[47]
. Smell associations of women and men are
different. For example, smell of lavender gives relaxing effect on women, but it arouses
men
[35]
.
Scent influences on customer’s mood and emotions, makes them stay longer in
store, feel excited and purchase more products
[48]
. Customers spend more time in store if
there is a good music and scent
[49]
.
H4. There is impact of scent on impulse buying behavior of customers
Research Methodology
Survey was conducted in two large Uzbek supermarket chains, namely Makro and
Korzinka.uz. Convenience sampling technique was applied to select respondents, as this
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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type of technique is reliable and easy for choosing customers randomly in shopping
locations
[50]
. Data was collected from 150 respondents over two weeks’ period.
Structured questionnaire consists of 14 questions and was prepared in Uzbek,
Russian languages. Questions were prepared using five-point Likert scale, ranging from 1 –
Strongly disagree to 5 – Strongly agree. Questionnaire consist of three parts:
Part 1: questions on demographics, gender, age, number of visits and spending
time of customer in supermarkets.
Part 2: questions to determine how customers are exposed to impulse buying
and how they behave in certain situation under influence of store atmospheres.
Part 3: questions on independent variables of research.
Collected data was analyzed in STATA using ordinal logistic regression to determine
which individual independent variable has statistically significant influence on dependent
variable. Additionally, Chi2 test was done to determine relationship between variables of
research.
Conceptual Model
Consumer Impulse Purchase
= β
1
gender+β
2
signage+β
3
music+β
4
smell+ β
5
age+β
6
spending
time
Analysis and Results
Descriptive Statistics
The sample had almost similar proportions of male (48%) and female (52%)
participants.
Figure 2. Gender of participants
Figure 3. Age of participants
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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Figure 4. Impulse purchases
According to figure 4, 71% of respondents purchase more products than they
initially planned.
Hypothesis Testing
Hypothesis 1.
H0 = There is no relationship between gender and impact of signage on impulse
buying behavior
H1 = There is relationship between gender and impact of signage on impulse buying
behavior
Pearson chi2 (3)
8.1048
Pr
0.04
Cramer’s V
0.2599
Gamma
-0.1661
Kendall’s tau-b
-0.0965
Table 1. Chi2 test to check relationship between gender and impulse buying
p value is 0.04, that is less than 5%, accordingly null hypothesis is rejected and
alternative one is accepted which means there is statistically significant relationship
between gender and impulse buying.
Hypothesis 2.
H0=There is no relationship between signage and impulse buying behavior of
customers.
H1=There is a relationship between signage and impulse buying behavior of
customers.
Pearson chi2
17.236
Pr
0.025
Cramer’s V
0.2188
Gamma
-0.0312
Kendall’s tau-b
-0.0207
Table 2. Chi2 test to check relationship between signage and impulse buying
p value is 0.025, that is less than 5%, accordingly null hypothesis is rejected and
alternative one is accepted which means there is statistically significant relationship
between signage and impulse buying.
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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Hypothesis 3.
H0=There is no relationship between background music and impulse buying
behavior of customers.
H1=There is a relationship between background music and impulse buying behavior
of customers.
Pearson chi2
27.0039
Pr
0.038
Cramer’s V
0.2372
Gamma
0.2230
Kendall’s tau-b
0.1542
Table 2. Chi2 test to check relationship between music and impulse buying
p value is 0.038, that is less than 5%, accordingly null hypothesis is rejected and
alternative one is accepted which means there is statistically significant relationship
between background music and impulse buying.
Hypothesis 4.
H0=There is no relationship between scent and impulse buying behavior of
customers.
H1=There is a relationship between scent and impulse buying behavior of
customers.
Pearson chi2
37.7937
Pr
0.000
Cramer’s V
0.3240
Gamma
0.3825
Kendall’s tau-b
0.2758
Table 4. Chi2 test to check relationship between scent and impulse buying
p value is 0.000, which is less than 5%, therefore we reject H0 and accept H1, which
means there is statistically significant relationship between scent and buying more product
than planned.
Regression
According to table 5, gender, pleasant music, attractive smell, age and spending
time are statistically significant and their p values are less than 5%. While signage, is
statistically insignificant with p>0.05.
Ordered logistic regression
Number of obs = 150
LR chi2 = 79.57
Log likelihood=-102.17332
Prob>chi2 = 0.0000
Pseudo R2 = 0.2803
Impulse buying
Coef.
Std.Err.
z
p>|z|
[95% Conf. Internal]
Gender
-1.522342
.6126604
-2.48
0.013
-2.723134
-.3215491
Signage
-.1729861
.2765152
-0.63
0.603
-.7149459
.3689736
Pleasant_music
1.120675
.3168953
3.54
0.000
.4995717
1.741778
Attractive_smell
.5527134
.2495435
2.22
0.031
.0641412
1.041286
Age
.8241946
.2495435
3.30
0.001
.3350984
1.313291
Spending_time
1.196521
.3173212
3.77
0.000
.5745829
1.818459
Table 5. Regression analysis
“Иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 1, январь-февраль, 2019 йил
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Ordered logistic regression for the research is:
Consumer Impulse Purchase =
-1.52gender - 0.17signage + 1.12music + 0.55smell +
0.82age +1.19spending time
As p value 0.603 greater than 5%, therefore we accept null hypothesis, which means
signage does not have statistically significant impact on impulse buying behavior:
H0 = There is no impact of signage on impulse buying
H1 = There is impact of signage on impulse buying
On the other hand, it is evident from regression, customers buy products
impulsively due to effect of pleasant background music, because enjoyable music make
customers stay longer in supermarket and spend more money. Results shows that there is
statistical significant impact of music on buying more product than planned, which p value
is 0.000 (p<5%), thus we reject null hypothesis and accept alternative one:
H0 = There is no impact of pleasant music on impulse buying
H1 = There is impact of pleasant music on impulse buying
Similarly, attractive smell also has statistical significant impact on impulse buying. As
p value is 0.031 (p<5%), then we reject H0 and accept H1:
H0 = There is no impact of smell on impulse buying
H1 = There is impact of smell on impulse buying
Gender also has statistical significant impact on impulse buying. As p value is 0.013
(p<5%), then we reject H0 and accept H1:
H0 = There is no impact of gender on impulse buying
H1 = There is impact of gender on impulse buying
Conclusions and Recommendations
53% of respondents agreed and 18.33% strongly agreed that signage makes them
purchase unplanned products. It means majority of people purchase impulsively due to
signage. For example, if there is a discount for a product in the shelf and consumer notices
it, s/he tries to buy the product in order not to lose a chance.
During shopping, background music positively influences on consumer’s mood,
making them spend more time and money in retail stores. Age is important factor in
perceiving music. Older people do not pay attention to the music in the store and most of
them were neutral to music in current research. Furthermore, respondents of above 50-
years-old do not tolerate loud music and they may exit the store even without buying
product. Similar results were observed in Yalch and Spangendberg’s research
[49]
.
Presence of ambient scent in store is another way of attracting customers to buy a
product. Majority of consumers evaluate quality of food products based on its scent,
because when product smells pleasant, it means that product is fresh. Chi2 test results of
the research represents that scent has relationship with impulse buying, because
approximately half (48.33% both agree and strongly agree) of the respondents stated
pleasant scent influence positively to their buying behavior. Similar results were exposed in
Grohmann et al’s (2007) and Matilla and Wirtz (2001) researches
[51, 52]
.
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Although signage, music and smell have statistically significant association with
impulse buying (p=0.25, p=0.38, p=0.000), but only music and smell have statistically
significant impact on impulse buying (p=0.000, p=0.031). On contrary Ballantine et al.
(2010) and Patil and Agadi (2016) stated that signage with discount price information is the
best tool to attract shoppers’ attention and it easily stimulate them to buy product
impulsively. Scent is a determinant how consumers evaluate store environment and
product quality. Therefore, in supermarkets artificial smell is used to attract consumers’
attention to different products, mainly food.
Interestingly, there is difference between male and female consumers in making
impulse buying. Regression analysis indicates that there is an influence of gender on
impulse buying behavior of consumers. Female shoppers are prone to impulse buying
more than males
[53, 54]
. However, some researcher did not found enough evidence to
support their research hypothesis, which there is impact of gender on impulse buying
behavior
[33, 55]
.
Research results suggest retailers pay more attention to developing internal
environment of supermarkets in order to influence on consumers’ behavior and enhance
their shopping experience. This may lead to competitive advantage and attract more
consumers. Effective usage of in-store scent, signage and music may motivate customers
to buy more products impulsively.
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