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Journal of Marketing Research

CONSUMER BUYING BEHAVIOUR A FACTOR OF COMPULSIVE BUYING PREJUDICED BY WINDOWSILL PLACEMENT

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Topics and Methods:

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New Submission Physiological/neurological bases < Theoretical Foundation, Sampling/ research design < Theoretical Foundation

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CONSUMER BUYING BEHAVIOUR A FACTOR OF COMPULSIVE BUYING PREJUDICED BY WINDOWSILL PLACEMENT


The authors of this research paper are

Irfan Hameed PhD Scholar & Lecturer, Iqra University Business Administration Department, Main Campus, Karachi, Pakistan E-mail: irfan_h144@yahoo.com Tel: +92-333-550-30-36 Yasir Ali Soomro PhD Scholar & Lecturer, Iqra University Business Administration Department, Main Campus, Karachi, Pakistan E-mail: yasir.soomro@hotmail.com Tel: +92-345-356-43-85 Imran Hameed PhD, Aix Marseille Universit, France Assistant Professor, Iqra University Business Administration Department, Main Campus, Karachi, Pakistan E-mail: im_hameed@hotmail.com Tel: +92-347-511-00-80
The research has been done without getting financial support from any one instead the authors themselves. In case of any query, please feel free to contact Irfan Hameed on email id: irfan_h144@yahoo.com.

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Regards, Irfan Hameed PhD Scholar & Lecturer, Business Administration Department Iqra University, Main Campus, Karachi.

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Consumer buying behavior a factor of compulsive buying

CONSUMER BUYING BEHAVIOUR A FACTOR OF COMPULSIVE BUYING PREJUDICED BY WINDOWSILL PLACEMENT


ABSTRACT
This empirical research investigates the impact of windowsill placement on the compulsive buying behavior of consumers on three different types of products i.e., convenience products, shopping products, and specialty products. We hypothesized the positive effect of windowsill placement on all three types of product categories. The categorical regression (Optimal scaling) was used to test the hypotheses. The data was collected via self administered questionnaire from Pakistan through systematic random sampling, and the sample consisted of 500 respondents. The results of data analysis supported only the 1st hypothesis which highlighted that placement of products in shopping centers has an impact of unplanned buying of consumers for convenience products.

KEY WORDS: WINDOWSILL PLACEMENT, COMPULSIVE BUYING, CONVENIENCE PRODUCTS, SHOPPING PRODUCTS, SPECIALTY PRODUCTS.

This study is an insight into the compulsive buying pattern of individuals on the basis of maneuvers used by marketers. The relationship between windowsill placement and the demand of customers have been studied with respect to different consumer product categories. Windowsill placement has been used as independent variable and types of consumer products have been used as dependent variables namely convenience products, shopping products, and specialty products. Unsought products have not been used for research purpose because of its very nature. Operational definitions of the variables have been given below:

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INTRODUCTION

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Consumer buying behavior a factor of compulsive buying Consumer products are products and services bought by final consumers for personal consumption. Marketers usually classify these products and services further based on how consumers go about buying them. Consumer products include convenience products, shopping products, specialty products, and unsought products. These products differ in the ways consumers buy them and, therefore, in how they are marketed (Kotler, Armstrong, 2011).

Convenience products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Examples include laundry detergent, candy, magazines, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers need or want them (Kotler, Armstrong, 2011).

Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. When buying shopping products and services, consumers spend much time and effort in gathering information and making comparisons. Examples include furniture, clothing, used cars, major appliances, and hotel and airline services. Shopping products marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts (Kotler, Armstrong, 2011).

Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands of cars, high-priced photographic equipment, designer clothes,

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Consumer buying behavior a factor of compulsive buying and the services of medical or legal specialists. A Lamborghini automobile, for example, is a specialty product because buyers are usually willing to travel great distances to buy one. Buyers normally do not compare specialty products. They invest only the Time needed to reach dealers carrying the wanted products (Kotler, Armstrong, 2011).

Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying. Most major new innovations are unsought until the consumer becomes aware of them through advertising. Classic examples of known but unsought products and services are life insurance, preplanned funeral services, and blood donations to the Red Cross. By their very nature, unsought products require a lot of advertising, personal selling, and other marketing efforts (Kotler, Armstrong, 2011).

Windowsill placement refers to the placement of the product in the shopping center also known as shelf placement. In this study word windowsill placement denotes favorable position in the shopping center like placing it just behind the cashier or at the entrance of the store.

Three hypothesized statements have been made to check the relationship between dependent and independent variable (s). Firstly the relationship of shelf placement on sales of convenience products, secondly the relationship of shelf placement on sales of shopping products, thirdly the relationship of shelf placement on sales of specialty products. The impact of placement has been studied with the help of the statistical test by using Statistical Package for Social Science (SPSS). The test used is categorical regression (Optimal scaling) to

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Consumer buying behavior a factor of compulsive buying interpret the findings that whether placement of products in shopping centers has an impact of unplanned buying of consumers or not. If yes then it is on which types of products.

LITERATURE REVIEW
Consumer research on compulsive buying began with work by Faber, O'Guinn, and Krych (1987), Faber and O'Guinn (1988, 1989), O'Guinn and Faber (1989), and Valence, d'Astous, and Fortier (1988). Faber and O'Guinn (1988) defined compulsive consumers as "people who are impulsively driven to consume, cannot control this behavior, and seem to buy in order to escape from other problems". Edwards (1992) defined compulsive buying behavior as "a chronic, abnormal form of shopping and spending characterized, in the extreme, by an overpowering, uncontrollable, and repetitive urge to buy, with disregard for the consequences" Research on compulsive consumption reveals a number of consistent findings. As discussed by Faber, Christenson, de Zwaan, and Mitchell (1995), compulsive consumption behaviors are associated with low levels of self-esteem, high levels of depression, and high levels of anxiety. In their summary of the literature, DeSarbo and Edwards (1996) linked compulsive consumption to a number of psychological traits, including "dependence, denial, depression, lack of impulsive control, low self-esteem, approval seeking, anxiety, escape coping tendencies, general compulsiveness, materialism (envy), isolation, excitement seeking, and perfectionism" . In their research, DeSarbo and Edwards identified two clusters of compulsive consumers. They identified an internal compulsive buying group that they argued is driven by deep psychological problems, their personality structure, and family upbringing. The second group ofcompulsive consumers appeared to be driven by personal circumstances rather than such deep-seated psychological factors. The trait of impulsiveness was significant for both groups of respondents.

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Consumer buying behavior a factor of compulsive buying

d'Astous (1990) investigated compulsive consumption among a population of "normal" consumers. She obtained evidence that the same theoretical relations found in previous studies, in which known groups of compulsive consumers were compared to the general population, are found in the general population

In a recent critique of contemporary personality research in consumer behavior, Endler and Rosenstein (1997) advocated an interactionist approach as a means ofincreasing the predictive ability of personality traits. In another influential article, Buss (1989) made a similar argument. He suggested that researchers investigate manipulations and traits jointly, which he proposed is similar to looking at the interaction between person and situation. In his article, Buss also distinguished between two types of traits. Borrowing ideas from Allport (1961), he distinguished surface traits from psychological traits. He suggested that surface traits are summaries of surface behaviors. In contrast, psychological traits exist at a deeper level and act asthe foundation for the more specific surface traits. Allport (1961) also used the term secondary traits to describe the

surface orstylistic trait idea.

In contrast to surface traits, cardinal and central traits are proposed to exist at a deeper level (Allport, 1961). Few in number, cardinal traits identify basic dimensions on which individuals diverge. We define cardinal traits as the basic, underlying predispositions of individuals that arise from genetics and their early learning history. Allport (1961) proposed that the number is likely to be between 5 and 10. If a limited set of cardinal traits can be identified, it will provide parsimony in developing our models of individual differences in consumer behavior. As noted by

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Consumer buying behavior a factor of compulsive buying Morgan and Hunt (1994), parsimony is an important scientific principle. Although disagreement is found in the psychological literature as to how manycardinal traitsmay exist, we tentatively propose that consumer researchers should first turn to the Five-Factor Model of personality to identify them (Costa & McCrae, 1985; Goldberg, 1993; Wiggins, 1996). In this article, we employ the traits of extraversion, agreeability, stability, openness to experience, and conscientiousness found in the Big Five model developed by Goldberg (1992) and refined by Saucier (1994). Central traits represent the third category of individual difference variables found in the hierarchical model. Based on Buss (1989) and Allport (1961), we conceptualize central traits as narrower in application and emerging from the interplay of cardinal traits, the culture in which an individual lives, and the learning history of the individual. These individual difference dimensions are more narrowly focused than the cardinal traits, and dozens may exist. Although music is generally thought of as an entertainment medium, it can also be used to achieve other objectives. In particular, music is employed in the background of production facilities, offices and retail stores to produce certain desired attitudes and behaviors among employees and/or customers. For example, background music is thought to improve store image, make employees happier, reduce employee turnover and stimulate customer purchasing. Despite the wide spread use of music in the marketplace, research documenting the effects of music is limited, and the results of existing research are in conclusive regarding its effects on consumer behavior. This is unfortunate because music is an atmospheric variable readily controlled by management. Past decisions to use background music in the marketplace have generally been based more on intuition or folklore rather than on strong empirical results. The purpose of this paper is twofold: First, it critically reviews the existing literature on the subject, and second, it

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Consumer buying behavior a factor of compulsive buying presents the results of a study examining the effects of background music on in-store shopping behavior (Milliman, 1982). Much of the controversy suggested in this paper and by other authors pertaining to the question of "can background music affect behavior?" still remains (Brayfield and Crockett 1955; Jacob 1968; McGehee and Gardner1949; Smith 1947; Uhrbrock, 1961). However, one consumer behavior study, conducted in two large supermarkets, does not suffer from the limitations of the research previously cited. The study examined the loudness of music (as the independent variable) and its effects upon shopping behavior. In this case, music was varied from loud too soft in eight counter-balanced experimental sessions. It was found that significantly less time was spent in the stores when the music was loud compared to when it was soft, although there was no significant difference in sales or in the customer's reported level of satisfaction (Smith and Curnow 1966). H1: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for convenience products.

Convenience products = + (Windowsill placement) + H2: There is a positive impact of windowsill placement in supermarkets on compulsive buying

behavior of consumers for shopping products.

H3: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for specialty products. Specialty goods = + (Windowsill placement) +

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Shopping goods = + (Windowsill placement) +

RESEARCH METHODS

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Consumer buying behavior a factor of compulsive buying

3.1 Method of Data Collection:


Data has been collected from the public of the most crowded city of the Pakistan (i.e. Karachi). Instrument used was questionnaire and the sampling technique used was systematic random sampling.

3.2 Sampling Technique:


Probability based sampling technique (i.e. systematic random sampling technique) has been used for selecting the sample out of the entire population. Sampling friction have been calculated with the help of this formula Sampling friction = sample size / population

On average almost one thousand individuals visit each superstore in evening and the target was to select one hundred respondents from each store,

Sampling friction = 500 (100 respondents from each store * 5 stores in total) / 5000 (1000

individuals in each store * 5 stores)

=> 500 / 5000 => 1 / 10 (every tenth respondent is to be selected)

Hence every tenth respondent have been targeted for the purpose of data collection.

3.3 Sample Size:


A sample size of five hundred respondents has been used for the research purpose. Hundred respondents were selected from every supermarket altogether five supermarkets were targeted.

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3.4 Instrument of Data Collection:


Self-administered closed ended questionnaires have been used for the purpose of data collection. All questionnaires were standardized and each questionnaire was having sixteen questions in total which were succeeding likert scale having 5 choices and they were coded in this phenomenon. 1 for strongly disagree, 2 for Disagree, 3 for Neutral, 4 for Agree, 5 for strongly agree.

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3.5

Proposed Research Model


WINDOWSILL PLACEMENT

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COMPULSIVE BUYING

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Specialty Products Convenience Products Shopping Products

1.6 Statistical Technique


The impact of placement has been studied with the help of the statistical test by using Statistical Package for Social Science (SPSS). The test used is categorical regression (Optimal scaling) to interpret the findings that whether placement of products in shopping centers has an impact of unplanned buying of consumers or not. If yes then it is on which types of products.

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RESULTS
4.1 Findings and Interpretation of the Results

H1: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for convenience products. Model Summary Multiple R .406 R Square .165 Adjusted R Square .104 Apparent Prediction Error .835

Dependent Variable: Convinience_Products Predictor: Shelf_Placement Interpretation: Correlation Coefficient (R) is 0.406 which shows that the relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for convenience products is moderate. Moreover value of Correlation Coefficient (R) is above 0 hence the relationship between the variables is direct. Coefficient of Determination (R^2) is 0.165 which shows that the 16.5% model is being explained by the windowsill placement and remaining 83.5% is being explained by unknown variables (which are not taken in to account for the purpose of this research.

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Beta .406

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ANOVA Sum of Squares Regression Residual Total 9.889 50.111 60.000

Mean Square 2.472 .911

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F 2.713

Sig. .039

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Dependent Variable: Convinience_Products Predictor: Shelf_Placement Coefficients Standardized Coefficients Bootstrap (1000) Estimate of Std. Error df .133 4 F 9.294 Sig. .000

Shelf_Placement

Dependent Variable: Convenience_Products

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Consumer buying behavior a factor of compulsive buying Interpretation: The significance value is 0.000 which is less than 0.05 so on the basis of p-value null hypothesis that there is no relationship has been rejected and alternate hypothesis that there is positive relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for convenience products has been accepted.

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H2: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for shopping products. Model Summary Multiple R .368 R Square

Dependent Variable: Shopping_Products Predictor: Shelf_Placement Interpretation: Correlation Coefficient (R) is 0.368 which shows that the relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for shopping products is weak. Moreover value of Correlation Coefficient (R) is above 0 hence the relationship between the variables is direct. Coefficient of Determination (R^2) is 0.136 which shows that the 13.6% model is being explained by the windowsill placement and remaining 86.4% is being explained by unknown variables (which are not taken in to account for the purpose of this research.

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.136

Adjusted R Apparent Prediction Error .089 .864

Square

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ANOVA Sum of Squares Regression Residual Total 8.137 51.863 96 60.000 99 Dependent Variable: Shopping_Products Predictor: Shelf_Placement Coefficients Standardized Coefficients 4

Mean Square 3 2.712 4 .926

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F F

Sig. .041

2.929

df

Sig.

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Beta Shelf_Placement .368

Bootstrap (1000) Estimate of Std. Error .283 3 1.691 .179

Dependent Variable: Shopping_Products Interpretation: The significance value is 0.179 which is greater than 0.05 so on the basis of p-value null hypothesis that there is no relationship has been accepted and alternate hypothesis that there is positive relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for shopping products has been rejected. H3: There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of consumers for specialty products.

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.190 Sum of Squares 46.973

Model Summary Multiple R .466

R Adjusted Square Square .217

Dependent Variable: Speciality_Products Predictor: Shelf_Placement Interpretation:

Correlation Coefficient (R) is 0.466 which shows that the relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for specialty products is moderate. Moreover value of Correlation Coefficient (R) is above 0 hence the relationship between the variables is direct. Coefficient of Determination (R^2) is 0.217which shows that the 21.7% model is being explained by the windowsill placement and remaining 78.3% is being explained by unknown variables (which are not taken in to account for the purpose of this research.

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R Apparent Prediction Error .783

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ANOVA Mean Square 2 4 6.513 04 .824 F 7.9 .001 Sig.

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Regression 13.027 Residual

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Consumer buying behavior a factor of compulsive buying Total 60.000 99 Dependent Variable: Speciality_Products Predictor: Shelf_Placement Coefficients Standardized Coefficients Beta Shelf_Placement .466 Bootstrap (1000) Estimate of Std. Error df .556 2 F .702 Sig. .500 4

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Dependent Variable: Speciality_Products Interpretation: The significance value is 0.500 which is greater than 0.05 so on the basis of p-value null hypothesis that there is no relationship has been accepted and alternate hypothesis that there is positive relationship between windowsill placement in supermarkets and compulsive buying behavior of consumers for specialty products has been rejected.

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4.2
S.NO.

Hypotheses Assessment Summary


Hypothesis SIG. 2-tailed Empirical Conclusion Accept

H1

There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of 0.000 consumers for convenience products. There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of 0.179 consumers for shopping products.

H2

Rejected

H3

There is a positive impact of windowsill placement in supermarkets on compulsive buying behavior of 0.500 consumers for specialty products.

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DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH


5.1 Conclusion:
There is a positive relationship between convenience products and the independent variable which is windowsill placement. Whereas there is no relationship of windowsill placement of shopping, as well as specialty products in supermarkets. It was proved that people prefer buying specialty products such as, electronics from their original stores.

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5.2 Discussions:

The points we came across through our research were how the manufacturers advertise their product (whether it be by windowsill placement or by salesperson or TV commercials). Customers should know what they want to and do not want to buy. Customers should be aware of the strategic techniques of the manufacturers.

5.3 Implications and Recommendations:

In order to attract more consumers to buy their products, manufacturers must put in a lot of effort to make their product eye catching by windowsill placement , stores should be clean proper advertisement of products should be done so the consumer becomes aware of the product.

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5.4 Future Research:


The further can be carried on in other countries. As this has been done by taking in to account a city of Pakistan. Furthermore it can be done on unsought products. In which ways we can enhance the sales of unsought products because of its very nature.

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