store environment impact on impulse buying report

1. Submitted BY:
Muhammad Atzaz Hussain Abid (13-NTU-5003)
Muhammad Adnan (13-NTU-5004)
Muhammad Hassan Saleem. (13-NTU-5005)
Sadia Nazir (13-NTU-5008)
RESEARCH PROJECT ON IMPULSE
BUYING BEHAVIOR

2. 1
The reason to direct the study is to examine the relationship between store situations,
desire and motivation purchasing conduct, urge assume an interceding part between
store environment and drive purchasing conduct. Store environment
Give a superior desire to customers so the purchasers will prompt motivation
purchasing. A self-administrated survey create to gather information from clients
utilizing shopping center capture strategy. Store environment demonstrate the positive
association with desire and purchaser motivation purchasing conduct and inclination
intervene the relationship between store environment and drive purchasing conduct.
This exploration articles assists the with retailing store to enhance store environment
that will prompt make inclination and urge will likewise prompt buyer drive purchasing
conduct.
RESEARCH PROJECT ON IMPULSE
BUYING BEHAVIOR

3. 2
RESEARCH
PROJECT ON
IMPULSE BUYING
BEHAVIOR
[TYPE THE DOCUMENT SUBTITLE]
INTRODUCTION:
Retail industry is a kind of business with the highly competition of
customers, the success of a retail store is the ability to
understand its customers as well customers need and behavior.is
to understand the store environment and its impact on consumer
purchase intention, lighting, store sale person , music,
cleanliness parking and so on. To manage retail store
environment is a very complex task .The purpose to create a
good store environment and layout is to increase the store sale
and capture its customers. Many factors that affect the store
layout planning like arrival of pattern of customers, parking
design etc. Raymond R. Burke and Alex Leykin (2007) described
the retail store environment that is the ability to understand or
translate their customers and translate consumer demand into
purchase, retailer believe that stocking more purchase means
more selling products.
Impulse buying is a very common behavior today. Impulse buying
is a very important aspect of researchers in consumer behavior
and the retailing stores. Impulse buying occurs when the buyers
have no thinking or no decision before they enter the stores, so
impulse buying is called unplanned purchasing behavior. Impulse
buying is also occurs when buyers have sudden experience.
Impulse buying is undecided purchase when buyers have not

4. 3
think before great deal of evaluation. Any buyer or individual who purchase without thinking is
not consider to think before making such purchase. Mostly females are more impulse buying
than males. Impulse buyers browsing store without any intention and they have no plan and
decision what to buy. Buyers who make such purchase are called impulse buying. In impulse
buying buyer’s emotions and feeling play a very big role in impulse buying behavior. Retail
items are known for unplanned purchase like grocery stores such as shampoo, tooth brush
etc.
A marketer work hard to provide a better store environment and its goods and services
because customer demand an eye-catching display and environment in store, In addition
because a better environment play a very decisive role that consumer or buyer make impulse
purchase. Marketing process such as advertising, providing a better store environment,
parking, eye-catching store display to make a long term relationship with its customer as well
consumer choice of store. Inner working in retail store environment development including
design, providing sales man services, installation services also create a positive effect on its
customer that they would make impulse purchase.
Donovan, Rossiter, Marcoolyn and Nesdale (1994) found that the pleasant and better store
environment encouraged purchaser to stay long time in the store and to make impulse
purchase. Store environment and layout create positive effects on consumer and consumer
helps to future store decision.
Store environment is very important element for impulse buying. Store environment affect
buyers emotions and feelings so they tend to buying impulse. Everything like store background
music, sent, store lights and attractive display are all make store environment. Consumer
decision to select a store is affected by the attractiveness of stores. Store environment is very
important because its lead to urge and urge is the image of a store in the mind of consumers
or buyers. An attractive or eye-catching store display effect the consumer behavior to make
impulse buying. Urge include tangible and intangible factors that consumer perceive to be
found in retail store, buyers use urge is to evaluation of stores. Urge means consumer
repurchase for that store (Jones and Reynolds, 2006).The concept of a urge used by
(Martineau (1958) for the first time. He defined store, customer mind is based on psychological
and emotional attributes. He says urge include all store characteristic’s that customer feel
different from others.

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LITERATURE REVIEW
Impulse Buying Behavior:
It is a unplanned purchasing behavior where a buyer have no thinking to make purchase (Rook
and grader (1993).Impulse buying behavior is immediate, unplanned where buyers have no
plan for purchasing. (Rook, 1987).Impulse buying behavior when buyers enter the store and no
consider the consequence, Impulse buying is unplanned. (Barratt, 1985).Rook and Fisher
(1995) consumer impulsive buying could be define as a consumer’s response to purchase
something spontaneously, unplanned and without decision and impulse buying vary different to
different. Researcher indicate impulse buying when occur when buyers have no decision to
buy when buyers go to shopping.(Rook, 1987; Sharma, 2010).Impulse buying occurs when
buyers have fast decision to buy things, either to purchase a specific product category or just
fulfill a buying task.(Beatty & Ferrell, 1998).A research conducted by Cobb and Hoyer (1986),
say that impulse buying is buying the products without clear thinking and this definition can
also be found in the research of Kollat and Willett (1967). Impulse buying should be considered
as today shopping environment like promotion strategy and use better technology. (Schiff man,
2010).In Impulse buying process money paly a facilitator role and it increase the purchasing
power of a buyer. If the buyers have not money then he/she avoid doing shopping. (Mai et al.,
2003).Buyers age 18 year to 40 year buy more impulse buying than others Mai et al.,
2003).Culture and buyer emotion are affected the impulse buying (Mai et al., 2003) Gender
play very important role in impulse buying behavior women are more impulse buying and if the
buyers are happier and in a good mood than they buying more impulsive. (Giraud, 2001).
(Sharma et al, 2010) Individual and many others factors that very strongly effect buyers
impulse buying behavior, (Kacen and lee, 2002), but it is not too difficult, because it is due to
more products range.
Store Environment:
Store environment play a very important role in store impulse buying. (Crawford and Melewar,
2003).All store environment variables like in-store background music, store display, scent, in-
store promotions, prices, and shop cleanliness all make up the in-store shopping environment,
Zhou and Wong (2004).(Kotler 1973-4) consider store environment is very important variable
that effect the consumer emotions and attitude towards store. Kotler define store environment
play a positive role for impulse buying behavior.(Ghosh 1994) define store environment affect
consumer emotional feelings created by store layout and its physical attractiveness of the store
(p.521).Consumer choice of store decision is affected by store situation and its layout due to
change in the buyer’s behavior(Hausman, 2000).Darden et al. (1983) physical attractiveness of
a store is affected by buyers buying behavior Shopping trolleys should be designed to kids
require strategic trolley that will catch the children’s attention because children play a very
important role in shopping trends (Terrazas, 2006). Marketer develop store layout, display and
others store environmental factors for the purpose to increase consumers impulse buying,

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(Hoyer&MacInnis, 1997).Store environment and it’s all variables like physical attractiveness
create a positive influence on buyer behavior and consumer selection of a store (Kim, 2003).
Similar to this opinion, Bowers (1973) believes that people or buyers welcome or ignore a
situation on basis of their interest and nature. Stern (1962) Showed that the wide range
advertisement and eye catching display of a store play big role on impulse buying. Moreover
expensive goods are not buying impulse.
URGE:
Store plan and its design likewise serving to expand the purchaser's accommodation.
(Crawford and Melewar, 2003).A very much prepared store staff likewise serves to diminish
the issues in shoppers purchasing procedure, so its lead to drive purchasing (Crawford and
Melewar, 2003).Retailing stores show in mean is to comprehend their client and their
propensity (terrazas 2006).Different sorts of inside states and situational, environment
elements can influence motivation purchasing. Inside elements incorporate buyer positive and
negative feeling conduct; natural components incorporate store setting and promoting blend
boosts. (Youn & Faber, 2000).
Store environmentand impulse buying:
Mehrabian (1976) study finding that store lighting is very important variable of store
environment that have positive influence on individual that they would make impulse buying.
yun and good (2007) store cleanness is a might generate positive urge in the mind of
customer. (Levy and weitz, 2004) definition of store environment is the combination of store
layout, products display and location which together create a positive image in the mind of
consumers and they would make impulse buying. Store environment refers to the visual
display in store create ease of mobility with in store (Bearden1977, ghosh 1994).Music, color,
lighting all are variables of store environment and have positive relationship with consumer
impulse buying (Thang and Tan 2003).
Urge and Impulse Buying:
Borges (2003) in his research proved that urge and its layout has a positive effect on
consumer buying behavior and there is a relationship between urge and impulse buying.
Bellizzi and hite (1992) store display is a very important variable that has effect on consumer to
purchase something impulse. Gutierrz (2004) in this research related to impulse buying he
found the urge variable like better display, cleanness mediates the relationship of impulse
buying. Abratt and goodey (1990) product attractive display is very useful in impulse sale.
Cornelius, natter and faure (2010) urge is the way which customer perceived quality so they
would tend to buy impulse. Schiff man and kanuk (2008) urge have positive influence on
consumer and it is relationship with impulse buying. Grewal Krishnan, baker and borin (1998)
urge is very important variable for retailers because urge play a vital role in impulse buying.

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THEORETICAL FRAMEWORK
Hypothesis:
There are four hypotheses;
H1: There is a relationship between store environment and urge.
H2: There is a relationship between Urge and impulse buying behavior.
H3: There is a relationship between store environment and impulse buying
behavior.
H4: Urge mediates the relationship between store environment and impulse
buying behavior.
RESEARCHMETHODOLOGY
Sample and procedures:
A mall intercept method was used .A self-administered
questionnaire was used to collect data from mall intercept; convenient sampling technique
used was adopted to increase the accuracy of data.
A self-administered questionnaire that was filled up by 109 respondents. Our population is Men
and Women age of 18 and above who visit retail stores in Faisalabad.
Store
Environment
Urge
Impulse Buying
Behavior

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Measures:
The researcher will measure all independent and dependent variables with
multiple-item scale. The target population will be urban adult shoppers.The focus
will be on young shoppers, who have age between 20-30 years because they have
more urge to buy things on impulse (Mohan et al., 2013).
Store Environment
To measure store environment, questions regarding 4 dimensions of store
environment like music, light, layout and employees will be asked. Music will
measure by 3 items developed by Morn and Chebat, (2005). The light variable will
be measured by 3itemsadopted from Smith, (1989), Areni and Kim, (1994),
Summers and Hebert, (2001). Furthermore, layout will be drawn from Dickson and
Albaum, (1977) and the employees scale will be drawn from Dickson and Albaum,
(1977) both will be measured on by 3 items.
Urge
The felt urge will be measured from Beatty and Ferrell, (1998) on 3items.
Impulse Buying Behaviour
The impulse buying behaviour scale will be measured from Rook and Fisher,
(1995).It consists of 9 item measured on 5 point Likert scale.
Impulse Buying Tendency
The impulse buying tendency (IBT) scale will be measured by 5itemsfrom
Weunet al., (1998).
Shopping Enjoyment Tendency
The shopping enjoyment tendency (SET) will be measured on 3items drawn
from Sproles and Kendall, (1986).
In this research all measures will be use Likert scale to conduct self-
administrative questions that consist on 7 points (Beatty & Ferrell, 1998) expect

9. 8
impulse buying behavior which consists on 5 points likert scale (Rook & Fisher,
1995),where 1 corresponds strongly disagree, 2 is for disagree, 3 is for somewhat
disagree, 4 is for neutral, 5 is for somewhat agree, 6 is for agree and lastly 7
represents strongly agree, point three and five not included for impulse buying
behavior.
RESULT AND DISCUSSION
FREQUENCY ANALYSIS:
Total responder is 150 which of 94 are male “62.0 percent” and Female are 56 “38 percent”
In occupation student are representing 52.7%, Employee are that representing 25.3%
Housewives are representing 5.3 %, Self-employed are representing15.3%, and Retired 1.3%
of total number of responders.
In Education Ours responder education is, Matric are 9 that represent 6.0% Intermediate are
24 that represent 16%,Bachelor are 66 that represent 44.0%,Master are 39 that represent
26.0% and M.phil are 12 that representing 8.0%. In store alfateh are representing 28.0%, SB
store are representing 20.0%,and others are representing 52%.
RELIABILITY ANALYSIS:
Cronbach’s alpha was also conducted on a study which included 150 respondent sample size.
Table1.1:
VARAIBLES CRONBATCH ALPHA
Store environment .754
Urge .643
Impulse buying behavior .766
The results of Cronbach alpha shown in above tables (1.1) which included three
variables calculated by using differentpoint Likert scale. There reliability values
checked to ensure the reliability of data and number of items in each variable

10. 9
scale. In this study all variables scales shows reliability greater than .70 and in between
the rage of .70-.80 which is very good and acceptable.All variable reliability is
acceptable because all reliability is above .60.
CORRELATION ANALYSIS:
Descriptive statistics includes arithmetic mean and standard deviation of all
variables in which both demographic and study variables are included store
environment and urge.
Table2.1:
Mean S.D 1 2 3 4
1 S.E 3.5283 .52206 1
2 Urge 3.3467 .90292 .311** 1
3 IBB 3.2835 .51961 .338** .526** 1
Store environment mean is (3.5283) this mean is show that most of the retail store environment level is
high and standard deviation of this variable is (SD=.52206) which shows that there is not too much
variation between the responses of customer. The urge mean value is (3.3467) show that the level of
urge is high retail store environment and the standard deviation of this variable is (SD=.90292) they
show that the consistency exists in respondent responses toward urge statement. Mean value of the
impulse buying is (3.2835) this value is show that the customer of the retail store having high level of
impulse buying and the standard deviation of this (SD=.51961) which shows that there is not too much
variation between the respondent responses of the customer.
CORELATION ANALYSIS:
Correlation analysis is used to measure the strength of linear relationship among two variables.
Correlation value range from -1 to +1, closer to -1 correlation is negative and strong and closer to +1
correlation is positive and strong(Hair, Black, Babin, Anderson, & Tatham, 2010). In the above
table, Pearson correlation coefficients are calculated to measure the relationship among all variables.
The relationship may be negative or positive and significant or insignificant. Correlation results of all
variables support all research hypotheses. It is analyzed that there is positive and linear relationship

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among all variables. The level of significance (p=value) is significant at (p<0.00).Results shows that
store environment have positive and significant relationship with urge (r =.311**
, p < 0.00) that
analyzed store environment and urge are positively linked with each other.
Correlation results show that store environment and urge have significant relationship with each other
which also support study hypothesis that (H1) There is relationship between store environment
and urge correlation results also show that that store environment has positive and significant
relationship with impulse buying behavior
(r =.338**,,
p < 0.00).Results indicate there is positive relationship between store environment and
impulse buying behavior that also sport research hypothesis that (H2)There is relationship between
store environment and impulse buying behavior. Urge has positive and significant relationship
with impulse buying
(r= .526**,
p< 0.00). These two variables are significantly interlinked with each other. That also
support research hypothesis that (H3) There is relationship between urge and impulse buying.
REGRESSION ANALYSIS:
Table3.1:
Urge
Store
environment
R square Significance Beta
.097 .000 .311
Regression results of urge as dependent variable and store environment as independent variable shows
positive and significant relation between these two variables at (p<.000) significance.
In above table (3.1) this results show that the model significant at (p <0.000). In which the value of R-
Square show the positive rate of changed by independent variable (0.097) to dependent variable
appropriate at (.311, 0.00). R-Square value shows the variation of (9.7%)in urge due to store environment.

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Table3.2:
Urge
Impulse
buying
Behaviour
R square Significance Beta
.277 .000 .526
In above table (3.2) this results show that the model significant at (p <0.000). In which the value of R-
Square show the positive rate of changed by independent variable (0.277) to dependent variable
appropriate at (.526, 0.00). R-Square value shows the variation of (27.7%) in impulse buying due to Urge.
Table3.3:
Impulse buying
Store
Environment
R square Significance Beta
.114 .000 .338
In table (3.3) Regression results of Store environment as independent variable and impulse buying as
dependent variable shows significant relation between these two variables at (p<.000) significance.
significant at (p <0.00) tested the show the modal .in which this table the value of R-Square show the
positive rate of change in dependent variable appropriate by independent variable (.114) and the value of
R- Square show the variation in impulse buying (11.4%) due to change in urge.

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Mediation Analysis:
This study is a first attempt to examine the mediating effect Urge between store environment
and impulse buying in retail stores. Part of this study the four hypothesis show that H4: Urge
mediates the relationship of store environment and impulse buying. Regression technique was
used to test this hypothesis which was recommended by (Baron & Kenny, 1986). According to
(Baron and Kenny (1986), following condition should be fulfilled. (1) The relationship between
independent variable and mediating variable should be significant; (2) the relationship between
mediating variable and dependent variable should also be significant. (3) The relationship
between independent and dependent variables should also be significant. When these three
conditions are fulfilled then researcher goes for further analysis. Perfect mediation is when the
independent variable have direct effect on dependent variable i.e. (∆R2 = .00) and independent
variable should also have (β≠ sig).
Table3.4:
Impulse buying
R square
R square
change
β
Urge .277 .277 .526
Store
environment
.310 .033 .192
In above table (3.4) show that Urge as mediates the relationship between store environment and impulse
buying in which they fulfill the one condition of mediation which (β significance) and (∆R2 approaches
to zero) so Urge play the mediate role between store environment and impulse buying.in which ( ∆ R2 =
.033, p < 0.00) and (β = .192 , p < 0.00) as explained by (Baron & Kenny, 1986)

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CONCLUSION
Objective of the research study is to find the relationship between store environment, Urge and
impulse buying behavior, and Urge as a mediation role store environment and impulse buying
behavior. (H1) The previous research results accepted the store environment have positive
relationship with Urge. Olshavsky (1985) store environment serve to Urge, quality of brand.
Merchandising, service quality, location all are the components of Urge. Our model refine that
Urge mediates the relationship between store environment and impulse buying. In our
research study show that R-square value is (r=.097)and significant (p<.000)and β =.311, p <
.00). this results Mach the previous research relationship between store environment and
Urge.(H2) the relationship between Urge and impulse buying. The previous research findings
support that Urge have relationship with impulse buying and have positive influence on
impulse buying behavior Park et al,(1999).In our research findings show that R-square value is
(r=.277)and significant (p<.000) and β =.526 , p < .00).(H3) relationship between store
environment and impulse buying .The result of the study shows that store environment (well
knowledge sale person, eye-catching store display and store location) are relationship with
impulse buying behavior. This finding is similar to the Tendai and crispen (2009), Findings
suggest that that store shopping environment does have influence on impulsive buying.
According to our research results show that R-square value is (r=.114)and significant (p<.000)
and β =.338, p < .000).

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