Impulsive Buying Behaviour : The Role of Impulse Buying Tendencies and Convenience Orientation

Kre Hansen and Svein Ottar Olsen, University of Troms, Norway

Abstract This study proposes and empirically verifies a value-attitude-behaviour hierarchy inspired model of the antecedents (i.e., the consumers more general impulse buying tendency and convenience orientation) and consequences (i.e., product-specific impulse buying behaviour and store patronage) of the product-specific impulsive buying tendency. Analysis of a national sample of 1450 Norwegian consumers attitudes and behaviours towards meals ready to eat (MRE) revealed that both the general trait of impulse buying and convenience orientation have a significant effect on the product-specific impulsive buying tendency. Convenience orientation also affected the impulse behaviour directly and was the strongest predictor of impulsive buying behaviour. Implications for future research and managerial implications with regards to marketing and retailing strategies are drawn from the findings.

Introduction Studies on consumer buying behaviour and store patronage have been an important area of research in retailing for many years. The extant literature on the attractiveness of retail stores has focused predominantly on the critical influence of store image, the importance of location and size (Carter and Vandell, 2005; Eppli and Benjamin, 1994), the effects of agglomeration, and the physical aspects of the retail outlets (Eppli and Shilling, 1996). Only a few studies have tried to explain shopping patterns in terms of individual differences amongst the consumers (Verplanken and Herabadi, 2001). Due to a ubiquitous trend towards increased impulse buying behaviour in the retail market, the phenomenon of impulse buying has received increased attention in academic research. Impulsive buying tendency (IBT) has been treated as a generalised trait consistent across product categories (Beatty and Ferrell, 1998; Puri, 1996; Weun, Jones and Beatty, 1998). However, Jones, Reynolds, Weun and Beatty (2003b) have shown that product-specific conceptualisation of IBT may be a better predictor of actual impulse buying behaviour than general IBT. Extending the notion of IBT from a general trait to a product-specific trait, this study investigates the effect on actual impulse buying behaviour (i.e., frequency and store loyalty). Furthermore, this study proposes that the concept of convenience orientation (CO) may play an important role in the impulse buying process. In particular, the current study empirically considers the relationships amongst general impulse buying behaviour, productspecific impulse buying tendency, convenience orientation, impulse buying behaviour and store patronage behaviour for the MRE category.

Theory and Conceptual Framework Impulse buying is loosely defined in the literature and covers many forms of non-rational purchase behaviour. It is mostly associated with an unplanned and sudden purchase, which is

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initiated on the spot (Verplanken and Herabadi, 2001, p. 271). According to Jones et al. (2003a), impulse buying does not involve reflection and the purchase is made without engaging in a great deal of evaluation. The individuals attention is focused on the instantaneous satisfaction of responding to the urge to buy. Consistent with general impulsiveness, impulsive buying is immediate (Rook and Fisher, 1995). The decision to buy is made at a fast pace, and the time from seeing the product to buying is very short. Therefore, the person is not likely to delay the purchase in order to get more information, seek advice or for comparison shopping. However, the above discussion implies that consumers with a high-impulse buying tendency purchase goods of all categories on impulse. This simple trait-behaviour model is questioned in the literature (e.g., Gatignon and Robertson, 1985; Peterson, 1968). Following Jones et al. (2003a), a context-specific notion of IBT may be a better predictor of impulse-buying consumers. The general IBT refers to the consumers impulse buying in general. The productspecific IBT can be seen as a materialisation of the more general IBT trait. We therefore hypothesise a positive relationship between general IBT and product-specific IBT. Product-specific IBT in turn affects the consumers product-specific impulse purchasing behaviour and store loyalty. We conceptualise loyalty as the relationship between impulsive buying and patronage behaviour. We therefore hypothesise that product-specific IBT will manifest a greater tendency towards a loose relationship between a specific store and the customer. Also, a higher degree of product-specific IBT will be manifested in a higher degree of product-specific impulse buying behaviour (PS-IBB). Which factors impact on productspecific impulse shopping? Variables in the retail environment such as the appearance of products and the presence of features have been proposed (Beatty and Ferrell, 1998). IBT is also influenced by person-related variables. In the present study, we investigate the assumption that product-specific IBT is affected by the consumers convenience orientation. We can observe an increasing importance of convenience orientation in the consumers buying behaviour and store patronage (Fitch, 2004; Jones et al., 2003a). Numerous attempts have been made to define convenience (Yale and Venkatesh, 1986). Consumers attitudes or perceptions towards saving time and effort related to planning, buying or using products or services are considered the main elements in convenience orientation (Berry, Seiders and Grewal, 2002; Scholderer and Grunert, 2005). Several convenience scales have been developed in different contexts (Candel, 2001; Luqmani, Yavas and Quareshi, 1994; Steptoe, Pollard and Wardle, 1995). CO is expected to impact convenience-related behaviours (i.e., purchase of convenience products, use of convenient shopping outlets, home meal replacements). We are therefore hypothesising a positive relationship between CO and product-specific IBT. CO and general IBT will act as exogenous variables in our hypothesised structure amongst the constructs. Product-specific IBT will act as a mediator in the process that determines the consumers product-specific impulse buying behaviour (PS-IBB) and store loyalty. This structural relationship is in accordance with theories suggesting that more general or domainspecific values and lifestyles influence more specific product or store attitudes and behaviour (Homer and Kahle, 1988; Shim and Eastlick, 1998). Hypothesised relationships between the constructs are summarised in Figure 1. The proposed structure will be tested by means of structural equation modelling.

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Research Method In order to provide a rigorous test of the proposed model, the MRE category was chosen as a relevant category. The demand for MRE is increasing, and it is also of interest for the retailers to better understand the driving forces behind and consequences of the specific demand for prepared meals. The data set, which encompasses 1450 consumers, was obtained from a random sample of 2500 Norwegian consumers in 2005 (response rate: 58 %). A questionnaire was sent to the person mainly responsible for shopping in the household. The mean age of the participants was 43 years (SD 12.3); 77.2 % of the respondents were female. The fieldwork was commissioned to a local market research agency. All attitude questions were measured on a 7-point Likert scale anchored by Strongly disagree (1) and Strongly agree (7). The different items were collected from relevant literature within marketing science, assessing attitude and behaviour. Convenience orientation (i.e. "I think of myself as a convenience-oriented person", "I think of myself as a person who chooses quick and handy solutions") general IBT (i.e. "All of my purchases are planned in advance" (r), "I often buy things on the spot") and product-specific IBT (i.e. "I plan today to a very little degree what to have for dinner tomorrow", "I often buy MRE without thinking about it", "I dont plan what to buy for dinner") were treated as latent constructs and were thus measured by multiple indicators. The product-specific impulse buying behaviour (i.e. "I often buy MRE for dinner") and store loyalty (i.e. "I dont patronise one specific store, but choose the stores that are convenient at any time" (r)) variables were measured by a single indicator on a 7-point scale.

Findings We used the ML simultaneous estimation procedures (LISREL-VII; Jreskog and Srbom, 1996) to test the hypothesised structure amongst the constructs. First, the unidimensionality of the different constructs was evaluated. The ML simultaneous estimation procedures were used to run a structural-equation model with the use of the variables of the measurement model. Standardised estimates for the hypothesised paths are presented in Figure 1. Based on an assessment of the various goodness-of-fit indices, the initial fit of the model was not particularly good (2 = 652.58 with d.f. = 46, RMSEA = .097, NNFI = .92 and CFI = .94). The model was therefore re-specified and a more parsimonious model was sought. Modification indices and standardised residuals were employed for purposes of item deletion (Anderson and Gerbing, 1988). Items with multiple loadings and correlated measurement errors (both within and across constructs) were deleted. In all, three items were deleted. One item was deleted from PS-IBT and two items from IBT. The fit of the re-specified model improved considerably to 2 = 91.98, with degrees of freedom = 29 (p = .00), RMSEA = .045, NNFI = .99 and CFI = .99. Next, the within-method convergent validity was assessed, which measures the degree to which two different measures of the same construct agree. All loadings were statistically significant (smallest t = 13.56, p > .00) and sufficiently large. Then the composite reliability of the items and the error variance explained was assessed. Three different measures of internal consistency or reliability were computed. First, item reliability or squared multiple correlations of the indicators ranged from .21 for the CO1 indicator to .83 for the CO2 indicator. Second, all composite reliabilities are .75 or higher, which indicates internal consistency amongst the measures far above the recommended level of .60 (Bagozzi and Yi,

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1988). Third, average variance extracted ranged from .61 to .72. Bagozzi and Yi (1988) suggested a target level > .50. Last, the discriminant validity of the different latent variables was verified. We used a procedure recommended by Anderson and Gerbing (1988) and Bagozzi and Yi (1988). Using the 95 % confidence interval around the correlation estimates for each of the constructs, we assessed discriminant validity of the latent constructs. If none of the confidence intervals includes 1.0, no pairs of the constructs are perfectly correlated within the range of random sampling error. None of the correlations plus/minus two standard errors included 1; thus, discriminant validity of the constructs is claimed to be satisfactory. An SEM methodology was employed to test the hypotheses. For the sake of parsimony, Figure 1 illustrates the proposed latent variable model without indicator variables. The 2 for the proposed model was 206.44 (df = 24, p = .00); the RMSEA was .073, which is considered a reasonably good fit (Browne and Cudeck, 1992), and GFI and CFI are .97 and .96, respectively, and exceed the recommended level of .90 (Bollen, 1989). Even though the model shows a reasonably good fit, standardised residual statistics and the modification indices (Jreskog and Srbom, 1996) revealed that the fit of the model would improve by adding a direct link between convenience orientation (CO) and PS-IBB, and also a link between store loyalty and PS-BB. The chi-square (df = 22) of the modified model decreased to 75.11 (p = .00) and RMSEA to .041. GFI and CFI increased to .99 and .99, respectively, by opening up for those two new relationships. We can conclude that the theoretical model fit the data reasonably well and improved by adding a new direct path from the exogenous variable CO to PS-IBB and a path from store loyalty to PS-IBB.
CO PS-BB R2 = .08

.16 (4.66) (+) (+) PS-IBT R2 = .49

.40 (14.09) (+) (-) .20 (7.00) a) The proposed model .31 (9.00)

IBT

.62 (15.99)

Store loyalty R2 = .02

CO

.13 (3.70) PS-IBT R2 = .47

.13 (3.70)

PS-BB R2 = .25 -.16 (-6.51)

IBT

.62 (15.65) b) The modified model

.29 (8.89)

Store loyalty R2 = .05

Figure 1: Tested models with standardised parameters (t-values in parenthesis). Hypothesised relationships indicated in the proposed model. As expected, CO was positively and directly related to PS-IBT. CO had a path coefficient of .13. Also, IBT was both positively and significantly related to PS-IBT (path coefficient of .62). Those two exogenous variables explained a substantial percentage of the variation in PSIBT (47 %). The relationship between PS-IBT and store loyalty was negative and significant (path coefficient of -.29). Five percent of the variation store loyalty was explained by PS-IBT in the modified model. 2202

PS-IBT and PS-BB were positive and significantly related to PS-IBB with a path coefficient of .40 in the proposed model and .13 in the modified model. The direct link from CO to PSIBB is .31 in the modified model and therefore the strongest predictor of PS-IBB, followed by store loyalty (-.16) and PS-IBT (.13).The explained variance of PS-IBB increased from .08 to .25 from the proposed to the modified model.

Conclusions and Implications Consumers differ in their general tendency to purchase goods on impulse (Puri, 1996; Weun et al., 1998). We have in this paper conceptualised impulse buying tendency as a productspecific construct and examined a model of its antecedents and impact on actual impulse buying behaviour and store patronage. The findings, although preliminary, indicate that the effect of convenience orientation and impulse buying tendency on both store loyalty and buying behaviour are mediated by the product-specific impulse buying tendency construct. Also, convenience orientation appears to have a direct impact on product-specific buying behaviour, in addition to the indirect impact through the product-specific impulse buying tendency. The study also indicates a negative relationship between store loyalty and productspecific buying behaviour. Our study shows that the general impulse buying measure was not associated with actual impulse buying behaviour in a direct way, as is the case with the product-specific impulse buying tendency. This suggests that the product-specific measure may be more useful as a predictor of product-specific behaviour. Further research should investigate the relationship between the two constructs in different product-specific situations. The study also empirically assesses the role of convenience orientation in impulse buying. Convenience orientation was found to have both a significant direct influence on impulse buying behaviour and an indirect influence through the product-specific impulse buying tendency construct. Convenience orientation, however, has no direct influence on store loyalty, which is only influenced by product-specific impulse buying. Store loyalty in turn has a negative influence on impulse buying behaviour. Future research should investigate the role of situational variables with regard to convenience orientation and impulse buying. For example, how do money and time availability influence the high convenience-oriented customers impulse buying? How can this study contribute towards retailers understanding of impulse buying and encouraging it in their stores? Retailers should make efforts to attract convenience-oriented customers. They would probably value simple displays of information and goods that ensure that their acquisition of these is efficient and less time-consuming. Another in-store strategy for consumers with high degrees of CO could be to further develop the use of point-ofpurchase (POP) advertising owing to the fact that these customers are positively inclined towards this kind of advertising. Retailers trying to understand and study impulse buying in product-specific contexts should also use product-specific measures. The study must be tempered with several limitations. First, future studies should be broader in terms of other product-specific settings. Next, the self-reporting of store loyalty and buying behaviour to represent behavioural components that was used as a single indicator for

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structural equation modelling represents another limitation. Thus, future research should look at supplementary ways to conceptualise impulse buying behaviour.

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