An Empirical Study of Consumer Impulse Buying Behavior in Local Markets Muhammad Ali Tirmizi PH.D Candidate, FUIEMS, Foundation University, Islamabad, Pakistan E-mail: email@example.com Kashif-Ur-Rehman Associate Professor, Iqra University, Islamabad, Pakistan E-mail: firstname.lastname@example.org M. Iqbal Saif Head of the Department, Management Sciences, FUIEMS, Foundation University, Islamabad, Pakistan E-mail: email@example.com Abstract This paper investigates the relationship between independent variables which are shopping lifestyle of consumers, fashion involvement of consumers, pre-decision stage and post-decision stage of consumer purchase behavior with the attitudinal and behavioral aspects of impulse buying behavior. This study attempts to explore the association exists between the variables involved, by tapping the responses of 165 respondents from higher income group in the area of Rawalpindi and Islamabad. The major findings of the study demonstrated an overall weak association of the set of independent variables with the dependent variable but, the in-depth analysis found that pre-decision stage of consumer purchase behavior is the only variable that resulted into strong association with the impulse buying behavior. It’s true that young people more often get attracted to products displayed on store shelves and has greater tendency of impulse buying behavior but results of this paper showed no association of impulse buying in higher income group of young people having prevalent impulse buying tendencies. This study reported new evidences in the field of impulse buying behavior of consumers pertaining to the local markets of the twin cities of Pakistan. Keywords: Shopping lifestyle, fashion involvement, pre-decision stage, post-decision stage, Impulse buying behavior, Pakistan.
Stores are the place where buyers buy products whether it’s planned or unplanned purchase. These stores sell hundreds and thousands of products daily and consumers are consuming these products at the cost of their income. It only dependents on the income of the person, that how much and how many times he or she visits shopping stores to buy products. It is usually seen that buyers purchase products which they have not planned and this phenomenon of unplanned purchasing is termed as impulse
An Empirical Study of Consumer Impulse Buying Behavior in Local Markets
buying. In previous researches, researchers and scholars have tried to measure impulse purchasing of different types of products in multiple shopping stores as it is reported by Bellenger et al. (1978); Du Pont (1965); Kollat and Willett (1967), Prasad (1975); Williams and Dardis (1972). In Pakistan there are four types of price indices; Consumer Price Index (CPI), Wholesales Price Index (WPI), Sensitive Price Index (SPI) and GDP Deflator, which are used to calculate inflation. Among these indicators, the major emphasis is on CPI as a measure of inflation, which covers 375 items in 71 markets of 35 cities of the country (Economic Survey, 2006-07). The average CPI value in the period (1990-00) was 9.71 and it was 5.8 in (2000-07). It is also seen that the inflation rate in lowest income group was 8.3 with the income ranging from below 3,000 up to 5,000 Rupees as compared to the inflation rate of 7.3 in the upper income brackets having income of more than 12,000 Rupees. Hence, we can say with confidence that the purchasing capacities of households lying in upper income bracket in Pakistan have increased as compared to lower income groups. Here it is essential to quote the percentage shares of the income groups mentioned above. The 20% lower income group in Pakistan holds 9.65 percent of the total income share and the 20% of the highest income group in Pakistan holds 41.72% of the total...