INNOSERVE- 2015 IMPULSE BUYING IN CASE OF ONLINE SHOPPING – EXPLORING THE UNDERLYING REASONS Presented By: Mr. Mayank Singhal Research Scholar, Jiwaji University, Gwalior Mr. Sumit Saxena Research Scholar, MJP Rohilkhand University, Bareilly

Outline Introduction Relevance Research Methodology Findings & Analysis Conclusion Implications Limitations

Introduction Impulse buying is Online Shopping a kind of unplanned purchase by the consumer Online Shopping   E- commerce where seller and purchaser transact over internet using a web browser.

Research Gap Most of researches are done in retail formats for impulse buying Online impulse buying is still scantly studied. Some of the studies on Impulse buying focused on one, two or more factors separately and their influence on other variables resulting in complex studies. So this study turns to be more appropriate when it comes to simplicity as focus only on finding the underlying reasons of Impulse buying during online shopping.

Research Methodology :The Study The methodology opted is Empirical in nature and survey based Mode of Survey is online structured Questionnaire. Questionnaire has focused mainly on online customers who frequently purchase through online shopping to generate views on Impulsive buying. Statements were based on a 5 point Likert scale. Judgmental (non-probability) sampling technique has been used. A sample of 60 customers was selected, which include 60 online customers from Gwalior region who had a registered account on any online shopping portal.

Objectives of the study : To explore Impulse buying through literature review. To find stimuli that triggers Impulse buying during online shopping. To design, develop & standardize a measure to identify Impulse buying behavior of customers during online shopping. To group important reasons of Impulse buying based on similarity and create factors. To open new vistas for further research.

Research Methodology : Statistical Software SPSS version 22 was used for data analysis. To check Internal consistency of the measure, item to total correlation is seen and found to be favourable. For Reliability of Questionnaire Cronbach’s alpha was used which was found to be 0.881. Further, factor analysis was used to find out the underlying factors for impulse buying behaviour of customers during online shopping.

Working Part of paper Online Product Display Sale clearance sign Main Items that were focused in questionnaire were as follows: question was used to determine why the participant purchases product online : Online Product Display Sale clearance sign Interesting Promotional offers like Buy one get one Combo Deals Cash discount/ rebates Free Home delivery Multiple payment options Comparing with other shopping sites People around me were shopping Online shopping festivals Gifts for friends & family TV, Print Advertisements regarding online sales & offers.

Findings & Analysis Table: Item to total correlation Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted VAR00001 38.9167 96.654 .452 .716 .878 VAR00002 38.3833 95.935 .602 .659 .871 VAR00003 38.6000 93.159 .585 .733 VAR00004 39.2000 91.417 .665 .614 .867 VAR00005 39.2500 92.597 .678 .724 VAR00006 39.2333 89.606 .807 .820 .861 VAR00007 38.5667 103.131 .250 .624 .893 VAR00008 38.8167 95.915 .450 .773 VAR00009 38.4833 93.644 .620 .653 .870 VAR00010 39.3167 91.440 .626 .552 .869 VAR00011 39.1833 96.288 .476 .537 .876 VAR00012 39.0333 96.406 .600 .873 VAR00013 39.2167 93.562 .523 .688 .875 VAR00014 39.5833 93.942 .618 .644

Cronbach's Alpha Based on Standardized Items Findings & Analysis: Reliability Table: Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .881 .884 14 Table: Reliability Statistics N % Cases Valid 60 100.0 Excludeda .0 Total

Findings & Analysis: Factor Analysis Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % 1 5.868 41.916 3.947 28.196 2 2.173 15.524 57.440 2.821 20.148 48.344 3 1.200 8.573 66.014 2.474 17.669 4 .968 6.913 72.927 5 .745 5.322 78.249 6 .649 4.637 82.886 7 .542 3.872 86.759 8 .500 3.573 90.332 9 .426 3.046 93.377 10 .316 2.255 95.633 11 .220 1.571 97.204 12 .192 1.369 98.573 13 .112 .799 99.372 14 .088 .628 100.000 Extraction Method: Principal Component Analysis.

Factors Identified The factors were named as Magnetic Sales Promotion, Socio-emotional Trade-offs and Expediency. 1. Magnetic Sales Promotion (5.868): This factor has emerged as the most important determinant of impulse buying behaviour among online consumers with 41.916% of variance. The major elements constituting this factor include; Cash discounts & Rebates (0.802), Attractive Web Displays (0.762) good product offer (0.715), Newspaper/TV/Magazine advertisements (0.708), Online Shopping Festivals (0.652), Combo Deals (0.625) and Clearance Sale (0.566). 2. Socio-emotional Trade-offs (2.173): This factor has emerged as an important determinant of impulse buying behaviour among online consumers with 15.524% of variance. The major elements constituting this factor include; Interesting Promotional offer Like Buy one get one free (0.877), Sale/Clearance sign flashing on social networking sites (0.800), while buying gifts for family and friends (0.659), People around are buying from there (0.483). 3. Expediency (1.200): This factor has also emerged as an important determinant of employee loyalty with 8.573% of variance. The major elements constituting this factor includes; Multiple payment options & credit facilities (0.882), Free home delivery & No shipment charges (0.800), Found best deal as compared to other websites & retail shops (0.680).

The study has resulted in the reliable measure to evaluate Impulse buying in case of online shopping. The major factors or reasons that trigger shopping impulses among online consumers were identified in this research as Magnetic Sales Promotions, Socio-emotional Trade-offs & Expediency. The most effective stimuli that trigger impulse buying in consumers was found to be Rebates and Discounts offered along with any Clearance Sale & Promotional offers which majorly influence the purchase intentions of the customer. These factors were found to be successful in enticing the customers to make unplanned purchases which the customers don’t even come to know of.

Implications This research can be used by Industrialists dealing in e commerce and online trade of goods for the careful planning of their marketing activities for promoting their online products. The Research is also useful for Academicians & Researchers as it opens new vistas for further researches in the related areas.

LIMITATIONS Study is conducted from general perspective of Online shopping only where it does not focus on any specific online portal or shopping site. Researchers or students can opt for any specific online site like flipkart or eBay and make research more specific and confined. Study has been conducted in a very narrow perspective by taking only 60 respondents only hence it is suggested to take a larger sample size.

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