• Title/Summary/Keyword: impulse purchase

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Does Loss-Leader Pricing Work in Online Shopping Malls?

  • Yeum Dai-Sung;Chae Myungsin;Kim Ji-Young
    • Management Science and Financial Engineering
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    • v.11 no.3
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    • pp.95-107
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    • 2005
  • As online shopping malls have emerged as a substantial shopping channel, they have used various sales promotion strategies to acquire new customers. Most of these strategies have been applied by offline malls for years. One, loss-leader pricing, is a type of promotional pricing in which stores sell well known products below their marginal cost, in order to attract customers and induce them to purchase more goods through impulse buying. This strategy is based on the expectation that customers will factor transaction costs into their purchasing decisions. However, its application to online malls fails to recognize that transaction costs are lower online, and that customers will behave differently as a result. Our study predicts that loss-leader pricing will not work online because online malls entail lower searching and moving costs than offline malls The study examines the effectiveness of loss-leader pricing with empirical data from a survey as well as log data from a Korean online shopping mall. The results show that while loss-leader pricing does attract customers to online shopping malls, it encourages cherry-picking rather than impulse purchases of regular-price goods.

Exploring Factors of Consumer's Impulsive Buying Behavior in Mobile Social Commerce (모바일 소셜커머스 이용자의 충동구매에 영향을 미치는 요인)

  • Moon, Jung-Keun;Kwak, Na-Yeon;Lee, Choong C.
    • Journal of Digital Convergence
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    • v.17 no.2
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    • pp.113-125
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    • 2019
  • Mobile social commerce is one of the fastest growing distribution channels in recent years. Therefore, it is important to understand customer's buying behavior in mobile social commerce in order to continuously grow in the competitive mobile social commerce market. To achieve the purpose of this study is to investigate how impulsive buying behaviors are applied in mobile shopping and how factors affect impulse purchasing in online shopping. In order to verify the hypothesis, we surveyed the customers who have experiences of using mobile social commerce and analyzed 280 valid data by Smart PLS 3.0. As a result, it was confirmed that consumers' innovation and purchasing experience influenced impulse purchase in mobile social commerce, and scarcity messages among information attributes affect impulse buying. Through this study, impulsive buying behavior which is a frequently analyzed variable in an online shopping context will be extended to the mobile shopping context. and it will provide practical implications for customer strategy establishment in mobile social commerce market.

Two Factors of Overseas Online Shopping : Self-Efficacy and Impulsivity (해외직접구매의 두 요소 : 자기효능감과 구매충동성)

  • Lee, Han-Suk
    • Journal of Distribution Science
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    • v.16 no.8
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    • pp.79-89
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    • 2018
  • Purpose - This research aims to investigate the factors that influence consumer's overseas online shopping behavior. Consumers adopt overseas online shopping as a new buying way and more and more consumers prefer overseas online shopping than traditional shopping ways. Consumers' behaviors in this shopping experience can be different from other shopping experiences. With the increase of overseas online shopping, we need to find antecedents and results of overseas online shopping. Especially there would be positive or negative factors which influence overseas online shopping motivation. To find the relationship, this study examines self-efficacy and impulsivity as major factors which influence overseas online shopping. We also suggest that several attitude factors increase self-efficacy and it is positively related to customer satisfaction. On the other hand, we assume that overseas online shopping factors influence impulsivity of buying and it will decrease customer satisfaction. Research design, data, and methodology - This empirical study data were collected from Korean people who experience overseas online shopping. The subjects for this study were confined to shoppers who used overseas online shopping within the past six months. A total of 267 responses were gathered. SPSS 23.0, PLS 2.0 software were used in the data analysis. Descriptive statistics were used to show sample characteristics. We examined reliability, validity test for constructs. All measurement items used seven-point scales(1= very strong disagree, 7 = very strongly agree) drawn from previously published papers. Partial Least Square method was applied to find the relationship between antecedent factors and dependent factors and hypotheses were estimated. Results - Results show that perceived superiority, perceived ease of use, perceived transaction safety, perceived behavioral control positively affect self-efficacy. Self-efficacy influences positively to consumer's post purchase satisfaction. Perceived monetary benefit and perceived uniqueness motivated impulse buying. This can make consumer's post purchase dissatisfaction. Conclusions - This paper attempted to confirm the existence of both the positive and negative faces of overseas online shopping. The result reveals that self-efficacy is a major factor which may increase satisfaction in the overseas online shopping. Usually, we can think monetary benefit and uniqueness of products motivate overseas online shopping. But it can also intrigue impulse buying and negatively affect customer relationship. Therefore companies should provide enough products information to their potential customers and they might apply adequate processes such as recommendation, comparing systems to build long term relationship with their customers.

The Effects of Hot Temperature on Impulsive Behaviors: The Role of Product Types as a Moderator

  • Ahn, Hee-Kyung
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.27-48
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    • 2012
  • Temperature and weather are all around us, quite literally. Furthermore, temperature and weather not only permeate our atmosphere, constantly affecting our visceral states of warmth and coldness, but they metaphorically permeate our language. People, products, and ideas can all be "hot" or "cold." Given this ubiquity, it is perhaps surprising that relatively little research has systematically examined the influence of temperature on choice and judgment. Temperature-related words such as "hot" and "cold" are often used to describe impulsive and calculated behaviors, respectively. These metaphoric connotations of thermal concepts raise the question as to whether temperature, psychological states and decision making are related to each other, and if so, how. The current research examines these questions and finds support for a relationship. Across one field study and one laboratory experiment, I demonstrate that both hot ambient room temperature (Spa) and hot temperature primes (words) trigger decision outcomes in line with the metaphoric association between hot temperature and impulsivity. In the field study, participants were recruited in hot (40-50 degrees Celsius) and cold (10 degrees Celsius) rooms at a spa. Participants were simply asked to indicate their willingness-to-pay (WTP) for three product categories (travel package, birthday dinner, and cell phone). The results showed that participants in the hot room in comparison to those in the cold room were willing to pay more for the same products. Next, I tested if our results would go beyond ambient temperature and would hold if I were to prime temperature concepts by using a different priming method (i.e., subliminal vs. supraliminal). In line with the previous findings in the spa, participants in the hot priming condition were more likely to choose the wrong answer for the bat and baseball question than those in the cold priming condition. In addition, product type (e.g., pleasure vs. necessity) can moderate the effect of hot temperature on impulsivity. Mood and arousal did not mediate participants' responses. My findings seem to suggest that the effects of temperature on decision outcomes can be attributed to metaphoric associations rather than incidental mood or arousal. The current research applies a novel perspective in understanding the relationship between temperature and judgment and decision making. Also, the results have practical implications for packaging, advertising, merchandising, and pricing of goods and services, as well as for public policy and awareness. One of the most natural implications of my findings would be that retailers would be better off carrying more impulse purchase items on hot days. Furthermore, point-of-purchase promotions encouraging impulse purchase is more likely to be effective in retail environments with higher temperature than with lower temperature. In addition, advertisements and product packages evoking hot temperature associations (e.g., beach, sunshine, summer) might lead consumers to pay higher price for the advertised product than those with cold temperature associations.

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A Comprehensive Understanding of the Purchasing and Visiting Behaviors of Customers on Social Commerce Sites

  • Yoon, Cheolho
    • Asia pacific journal of information systems
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    • v.26 no.2
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    • pp.211-230
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    • 2016
  • Social commerce is a new type of e-commence that is based on social networking technologies and aggressive marketing strategies, such as one-deal-a-day. However, although social commerce has become very popular, little is known of customers' substantive purchasing behaviors when using social commerce sites. These behaviors, namely visiting and purchasing behaviors, are the focus of this study. Hence, this study aims to provide comprehensive understanding of the visiting and purchasing behaviors of customers in relation to social commerce sites. A research model based on the utilitarian and hedonic values of shopping, social influence, and convenience, which represent social commerce features, was developed and empirically analyzed using data from social commerce site users. The results revealed that purchasing behaviors of consumers when they use social commerce sites are affected directly by the utilitarian value (perceived usefulness) of the site as well as their purchase intention. Purchase intention is affected by perceived usefulness, subjective norm, and visiting behaviors. The visiting behaviors of consumers in relation to social commerce sites are also affected directly by the hedonic value (playfulness) of the site as well as their intention to visit the site. The findings of this study have implications for practitioners with regard to understanding and promoting the use of social commerce sites.

An Approach of Product Placement and Path Evaluation Using Social Network Subgroup: Focusing on Shopping Basket Data Analysis (사회연결망 서브그룹을 통한 소매점 상품배치 및 동선 평가: 장바구니 데이터 분석을 중심으로)

  • Yoon, Han-Seong
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.17 no.4
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    • pp.109-120
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    • 2021
  • Despite the growing online exposure of retailes, offline retail channels still outperform online channels in the total retail volume of some countries. There is much interest in the physical layout plans of retail stores to expand sales. Product placement that have a large impact on customer purchasing behavior at offline retailers influences customer movement and sales volume. But in many cases, each retailer relies on unsystematic and autonomous product placement. When multiple products are sold with one purchase, the customer's movement for shopping may be evaluated in terms of customer efficiency and additional impulse purchase. In this paper, the social network is applied to sales data of a retail store and the result is used for evaluation of product placement and customer path. The frequent sales product composition was identified using k-core from sales data in the form of shopping baskets. The location was checked for the identified compositions of products, the spatial variance was measured and the customer's path was identified. With these results, the store arrangement of products was evaluated with appropriate improvement directions. The analysis method of this paper can be an alternative analysis approach for better layout of retail stores.

Effects of In-store Experiences on Store Satisfaction, Sportswear Brand Preference and Purchase Intention - Focus on Moderating Role of Impulse Buying Tendency - (스포츠웨어 점포 내 체험요소가 점포 만족도, 브랜드 호의도 및 구매의도에 미치는 영향 - 충동구매에 따른 조절효과를 중심으로 -)

  • Han, Ye-Ji;Hwang, Sun-Jin;Chun, Ho-Kyung
    • Journal of the Korean Society of Costume
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    • v.63 no.8
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    • pp.90-105
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    • 2013
  • The purpose of this study was to explore how experiential factors in sportswear stores influenced store satisfaction, brand preference, and purchase intention among potential consumers, and to reveal the moderating effects of impulsive buying. The subjects of this study were 306 male and female adults in their 20s and 30s, who had visited sports brand stores within the past year. To analyze the data, Cronbach's ${\alpha}$, structural model analysis and path analysis were performed. The results of this study were as follows. First, there is a strong relationship between store satisfaction and experiential factors in sportswear apparel stores. All experiential factors significantly influenced store satisfaction in a positive direction. Second, consumers' store satisfaction positively influenced on brand preference. Third, consumers' store satisfaction had positive influences on their purchasing intention. Fourth, consumers' impulsive buying tendency showed significant moderating effect on the experiential factors. Consumers with low level of impulsive buying tended to be influenced more by 'think', 'relate', and 'sense' experiential factors on their store satisfaction. However, consumers with a high level of impulsive buying tendency revealed that they were more likely to be influenced by 'act' and 'feel' experiential factors.

Middle-aged male consumers' outdoor sportswear purchase behavior of according to shopping orientation (중년남성의 쇼핑성향에 따른 아웃도어 스포츠웨어 구매행동)

  • Park, Hea-Ryung;Park, Mi-Ryung
    • Journal of the Korea Fashion and Costume Design Association
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    • v.20 no.1
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    • pp.183-197
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    • 2018
  • This study examined outdoor sports wear purchase behaviors among middle-aged male consumers based on outdoor sports wear shopping orientation. Data research was conducted on 300 internet users in their 40s and 50s located all parts of the country. The SPSS 24.0 software program was used to conduct data analyses such as descriptive statistics, frequency analysis, factor analysis, cluster analysis, $x^2-test$, t-test, ANOVA, and Duncan test as a post-hoc analysis. The results of this study were as follows: Firstly, outdoor sports wear shopping orientation was identified with fivefactors : the tendencies of wanting to show off a brand name, conservative purchasing, economical purchasing setting a high value on a salesperson, and impulse purchasing. Secondly, the middle-aged male consumers were classified in to three groups by the cluster analysis: a rational group, an indifferent shopping group, and pursuit brand shopping group. Thirdly, the evaluation criteria of products were significantly different depending on outdoor sports wear shopping orientation subdivision in all factors. Fourthly, in the case of fashion information sources regarding outdoor sportswear, significant differences were found according to shopping orientation subdivision in mass media/store source, personal source/ prior shopping experience. Fifthly, all types of stores were significantly different depending on shopping orientation subdivision except for large discount stores.

Study of the influential factors of repurchase intention and word-of-mouth intention of men in their 20's and 30's in social commerce - Focused on social commerce characteristics and consumers' personal characteristics - (소셜커머스에서 20~30대 남성의 재구매 의도와 구전 의도에 영향을 미치는 요인 연구 - 소셜커머스 특성과 소비자 개인 특성을 중심으로 -)

  • Shin, Su-Yun
    • The Research Journal of the Costume Culture
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    • v.25 no.1
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    • pp.1-15
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    • 2017
  • Social commerce is a kind of internet shopping mall in which consumers purchase the products with other consumers through mutual interactions including the development of SNS(social network service). Social commerce has expanded rapidly as a mainstream online shopping mall over the past five years driving consumers to purchase more fashion products providing the cheaper prices than open market internet shopping mall. The purpose of this study is to identify the important parameters of social commerce characteristics and consumer characteristics that affect repurchase intention and word-of-mouth intention. A 221 survey questionnaire was distributed to men in their 20's and 30's who live in Seoul metropolitan area. The data were analyzed utilizing Cronbach's ${\alpha}$, factor analysis, and regression analysis using the SPSS 18.0 program. The results revealed, first, that in terms of social commerce characteristics, three variables(website reputation, interactivity, and product scarcity) influenced repurchase intention. Among them, website reputation identified as the most important factor influencing repurchase intention and word-of-mouth intention. Second, with regard to consumer characteristics, interest and a tendency toward impulse buying affected the repurchase intention, and interest and internet shopping experience have influenced the word-of-mouth intention. Among three variables interest in social commerce identified as the key factor affecting both repurchase intention and word-of-mouth intention. The results of the study provide the practical implications and suggest the business strategies to enhance social commerce in the future by identifying the key social commerce characteristics and consumer characteristics that influence male consumers' buying behaviors.

The Effect of Consumer's Interpersonal Anxiety on Shopping Addiction: Focusing on Multi-parallel Mediation Effect of Self-Control and Public-Consciousness and Moderating Effect between Men and Women (소비자의 대인 불안이 구매중독 성향에 미치는 영향: 자기 통제력과 타인 의식성의 다중 병렬매개효과와 남녀 간의 조절 효과를 중심으로)

  • Park, Ok-Hee;Jeong, Jo-Hee;Lee, Seok-Kee
    • Journal of Convergence for Information Technology
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    • v.10 no.2
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    • pp.70-81
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    • 2020
  • Living in the modern world, we can easily access large marts and outlets, and live convenient mobile shopping and same-day and early morning shipping. It is called 'shopping addiction' when the purpose of such shopping is not to be attributed to the original purpose of the goods, but to be purchased by an irresistible impulse. According to past studies, 5.8% of American adults and 15.5% of Korean college students were found to be purchase poisoning[3]. The study identified the relationship between interpersonal anxiety, public-consciousness and self-control among the various factors leading to purchase addiction and confirmed their impact on consumers internal psychology. The study found that although Interpersonal anxiety did not directly affect purchasing addiction, it was influenced by self-control and public-consciousness that increased the tendency to purchase addiction. The results of the group comparison between men and women showed that the self-control of men and the public-consciousness of women has increased their purchasing addiction. Such differences in psychology between men and women suggested related implications, such as the need to apply purchase addiction prevention management and treatment methods differently.