Impulse purchase behaviour

Abstract

Impulse buying is defined as a powerful and persistent urge to buy something immediately. An impulse is not consciously planned but arises upon confrontation with a certain stimulus. According to estimates, impulse buying accounts for two-thirds of purchases in malls. Marketing innovations such as credit cards, ATM, retail format, telemarketing and online shopping has made it easier for consumers to purchase on impulse. Changing Indian demographics, lifestyles and attitude towards shopping in retail stores offers potential for impulse purchases. In a retail setting, the exposure to a product is vital for impulse purchase to happen. Retailers are using sales promotions, in-store arrangements; signage etc. to exploit impulse purchases, but the effectiveness of these cues is questionable as the motives behind impulse purchases have not been understood completely. This CCS project aims to study the customers who indulge in impulse purchases in retail stores, determine the parameters which affect impulse purchase and arrive at a probabilistic equation to determine when impulse purchase happens. By understanding the relative importance of various factors that affect impulse purchase, we will present our results and point out the areas for further research.