Exploring the impulse buying behaviour of working women buying apparel in New Zealand
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Exploring the impulse buying behaviour of
working women buying apparel in New Zealand
by
L.R.G. Nelum. R. Wijekoon Arulalan
A Research Project Submitted in Partial Fulfillment of the
Requirements for the Degree of
Master of Applied Management
in the School of Business
Faculty of New Media, Business and Arts
© L.R.G. Nelum. R. Wijekoon Arulalan, 2019008282
SOUTHERN INSTITUTE OF TECHNOLOGY
(An affiliate of the New Zealand Institute of Skills and Technology)
Supervisor: Dr Alison Fields
Due Date:5th January 2021
Word Count (excluding contents and appendices):20685
Copyright in this work rests with the author. Please ensure that any reproduction or re-use is done in accordance
with the relevant national copyright legislation.
L.R.G. Nelum.R.W. Arulalan -2019008282
Student Declaration
“I, L. R. G. Nelum. R. Wijekoon Arulalan, declare that the Master of Applied Management
entitled “Exploring the impulse buying behaviour of working women buying apparel in New
Zealand” is my own work and contains no material that has been submitted previously, in
whole or in part, for the award of any other academic degree or diploma. Except where
otherwise indicated, this project is my own work. The ideas presented are my own opinions
and not necessarily those of Southern Institute of Technology”.
Signature: Nelum. R.W Arulalan Date: 30.12.2020
ii
L.R.G. Nelum.R.W. Arulalan -2019008282
Abstract
This research sought to explore the impulse buying behaviour of working women buying
clothing in New Zealand. The investigation has been carried out to explore three main factors
affecting impulse buying patterns: store environment, emotional status and the age of the
consumer. Data for the study was gathered via an online survey questionnaire and semi-
structured telephone interviews of the research population of approximately 1,260,000
working women in New Zealand age 20+, there were 253 valid questionnaire responses were
received.
Six semi-structured interviews were also conducted to gain deeper insights into impulse
buying behaviour amongst New Zealand working women. The collected results were
analysed using Google analytical tools and thematic analysis. The findings revealed that the
store environment, emotional status and the age factor do affect the impulse buying decisions
of working women in New Zealand. Furthermore, they show that young women aged
between 20-35 years have more impulse buying habits than older women.
The findings in this study offer valuable insights of working women’s impulse purchasing
behaviour which retail owners and marketing managers can use to target this sector more
effectively. Furthermore, this study has filled a gap in consumer behaviour literature in the
New Zealand context.
Keywords: “Impulse buying behaviour” “Working women” “Store environment” “Age”
“Emotional status.”
iii
L.R.G. Nelum.R.W. Arulalan -2019008282
Acknowledgements
This research project would not have been possible without the guidance and help of several
people who, in one way or another, contributed and extended their valuable assistance. First
and foremost, my utmost gratitude is to Dr Alison Fields for her guidance, enthusiasm,
patience; she has helped with her immense knowledge throughout this research project.
Thank you, Dr Alison, for your support and advice.
Also, I would like to thank all of you at SIT business school, especially the administration
team and all the lecturers for their support. This project would not have been possible in the
limited time duration without your support. Thank you very much to all the participants all
over New Zealand, all the friends at the Applied Management 2019-August intake, my
colleagues at Knight of NZ /BONZ group and my boss, Oscar Rodwell.
Last but not least, special thanks go to my husband Krish and my little son Jason for their
patience, encouragement and endless support and love throughout this period, and my
friends Ninu and Rachi for their unfailing support.
iv
L.R.G. Nelum.R.W. Arulalan -2019008282
Table of Contents
Student Declaration ............................................................................................................. ii
Abstract ............................................................................................................................... iii
Acknowledgements ............................................................................................................. iv
Table of Contents ................................................................................................................. v
List of Tables ..................................................................................................................... viii
List of Figures ..................................................................................................................... ix
Chapter 1 Introduction .................................................................................................. 1
1.1 Significance of the study ................................................................................................. 1
1.2 Background and context .................................................................................................. 2
1.2.1 Clothing retail industry in New Zealand ................................................................... 2
1.2.2 Working women segment ......................................................................................... 2
1.2.3 The rationale of the research ..................................................................................... 3
1.3 Research question/aim and objectives ............................................................................. 4
1.4 Outline of the research project ........................................................................................ 4
Chapter 2 Theoretical Constructs and Industry Analysis ........................................... 6
2.1 The history of the clothing retail industry ....................................................................... 6
2.2 Retail Industry in New Zealand ....................................................................................... 7
2.2.1 Michel Porter’s five forces analysis for the clothing retail industry in New Zealand
............................................................................................................................................ 8
2.3 Consumer behaviour ...................................................................................................... 10
2.3.1 Consumer buying process ....................................................................................... 10
2.3.3 Impulse buying behaviour....................................................................................... 12
Chapter 3 Literature Review ........................................................................................ 16
3.1 Impulse buying behaviour ............................................................................................. 16
3.2 Emotional factors ........................................................................................................... 19
3.3 Demographic and cultural factor effect on impulse buying .......................................... 20
vL.R.G. Nelum.R.W. Arulalan -2019008282
3.4 Store environment factors’ effect on impulse buying ................................................... 23
3.5 Conclusion ..................................................................................................................... 25
Chapter 4 Research Methodology ................................................................................ 26
4.1 Introduction ................................................................................................................... 26
4.2 Research philosophy, approach and the design ............................................................. 26
4.2.1 Research Strategy.................................................................................................... 28
4.2.2 Research sampling .................................................................................................. 29
4.2.3 Time horizon ........................................................................................................... 30
4.3 Methods ......................................................................................................................... 30
4.3.1 Questionnaire .......................................................................................................... 30
4.3.1.1 Questionnaire Design .................................................................................. 31
4.3.1.2 Pilot Study ................................................................................................... 33
4.3.1.3 Administrating the Questionnaire ................................................................ 33
4.3.1.4 Data Analysis ............................................................................................... 34
4.3.2 Interviews ................................................................................................................ 34
4.3.2.1 Interview Design ......................................................................................... 35
4.3.2.2 Conducting the interviews ........................................................................... 36
4.3.2.3 Data Analysis ............................................................................................... 37
4.4 Limitations, reliability and bias ..................................................................................... 37
4.4.1 Limitation ................................................................................................................ 37
4.4.2 Reliability, Validity and bias .................................................................................. 38
4.5 Ethical consideration ..................................................................................................... 39
4.5.1 Method 1 – Questionnaire ....................................................................................... 40
4.5.2 Method 2 – Interviews ............................................................................................ 40
4.6 Conclusion ..................................................................................................................... 40
Chapter 5 Results and Discussion ................................................................................ 42
5.1 Introduction ................................................................................................................... 42
5.2 Results ........................................................................................................................... 43
5.2.1 Method 1- Questionnaire ........................................................................................ 43
5.2.1.1 Demographic information............................................................................ 43
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5.2.1.2 Age .............................................................................................................. 43
5.2.1.3 Income level ................................................................................................ 44
5.2.1.4 Buying behaviour ........................................................................................ 45
5.2.1.5 Emotional factors ......................................................................................... 49
5.2.1.6 Store environment factor ............................................................................. 52
5.2.2 Method-2 Semi-structured interview ...................................................................... 55
5.2.2.1 Demographics analysis ................................................................................ 55
5.2.2.2 Emotional state ............................................................................................ 57
5.2.2.3. Store environment ...................................................................................... 59
5.2.2.4 Changing shopping habits ........................................................................... 62
5.3 Discussion...................................................................................................................... 62
5.4 Summary........................................................................................................................ 64
Chapter 6 Recommendation and Conclusion............................................................. 66
6.1 Purpose of the research .................................................................................................. 66
6.2 Relationship to previous research .................................................................................. 67
6.3 Limitation of the present study ...................................................................................... 69
6.4 Recommendations for future research and practice ...................................................... 70
6.5 Conclusion ..................................................................................................................... 71
References........................................................................................................................... 72
Appendix A – Online Questionnaire ................................................................................... 79
Appendix B -Semi-structured Interview.............................................................................. 82
Appendix C -Ethical approval ............................................................................................. 84
Appendix D - Information Sheet for Participants-Semi Structured Interview .................... 84
Appendix E - Consent Form for Interview participants ...................................................... 84
viiL.R.G. Nelum.R.W. Arulalan -2019008282
List of Tables
Table 2.1 The buying impulsiveness scale………………………………………………... 14
Table 3.1 The overview of primary impulse buying research (From 1950-2019) .............. 18
Table 4.1 The involvement of past research for designing this questionnaire .................... 32
Table 4.2 Summary of the volunteer participants ............................................................... 36
Table 5.1 Clothes purchasing patterns in each age category .............................................. 46
Table 5.2 Examples of the emotional factors of participants affecting impulse buying ..... 51
Table 5.3 Demographic information of participants ........................................................... 56
Table 5.4 Purchasing habits of participants ......................................................................... 56
Table 5.5 Emotions states vs their moods ........................................................................... 58
Table 5.6 Favourite shopping store of participants and reasons for favouritism ................ 59
Table 5.7 Summary of responses to Q8-10 ......................................................................... 61
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List of Figures
Figure 2.1 Category of clothing retail presence in New Zealand .......................................... 7
Figure 2.2 Michel Porter’s (1980) five force model……………………………………..….8
Figure 2.3 The consumer decision process model (Blackwell et al.;(2001)........................ 11
Figure 4.1 The Research “Onion” ....................................................................................... 27
Figure 4.2 Spreadsheet for collected data............................................................................ 34
Figure 5.1 Age categories of the participants ...................................................................... 42
Figure 5.2 Weekly income level of the participants ........................................................... 43
Figure 5.3 Weekly income level in each age group ............................................................ 44
Figure 5.4 Clothes purchasing patterns ............................................................................... 46
Figure 5.5 Shopping habits of participants .......................................................................... 47
Figure 5.6 Shopping habits/buying behaviour of each age category................................... 47
Figure 5.7 No of items participants purchased in two months period ................................. 48
Figure 5.8 The participants shopping habits ....................................................................... 48
Figure 5.9 The emotional state of participants .................................................................... 50
Figure 5.10 The emotional state of participants in each age category ................................ 50
Figure 5.11 The window displays of the store affecting impulse buying behaviour........... 52
Figure 5.12 How the store layout affecting purchasing behaviour ..................................... 53
Figure 5.13 The promotions and sales factor affecting impulse purchases ......................... 54
Figure 5.14 How shopping controls, the emotional states ................................................... 58
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Chapter 1 Introduction
1.1 Significance of the study
Consumer buying behaviour has changed dramatically over recent decades due to a range of
factors including technology, and economic and social-cultural development and changes.
In the typical buying process, consumers need to make decisions about buying products,
involving identifying the need for the product, information-seeking, evaluation of options
and alternatives, purchase decisions and post-purchase evaluation. However, as a result of
changing lifestyles and demands in recent decades, an increasing number of people are
spending less time on making pre-planned buying decisions, and there is a higher rate of
impulse purchase decisions.
According to Kacen and Lee’s (2002) studies, in the United States of America, US$ 4.2
billion annual store volume is generated from impulse buying. Moreover, another research
shows in Britain that between 45% -75% of luxury goods sales are made by impulse purchase
(Unsalan, 2016). Apart from America and Britain, around the world, there is a significant
growth in impulse buying behaviour, and it has contributed benefits to the profit margins of
the companies (Sharma et al., 2010). According to Dawson and Kim (2009), in America,
Britain and Germany, one-third of retail profits are made from impulse purchasing. Further
researchers have identified that Asian countries like India, China, Singapore, and Hong Kong
have shown significant growth in impulse purchasing (Pradhan, 2016).
Though it is a widely researched area around the world, very few studies are conducted based
on the New Zealand consumer market. Notably, there is not sufficient research conducted in
the New Zealand apparel retail industry. A few researchers have conducted research to
identify the factors affecting impulse purchase decisions based on young consumer and the
men categories (Brici et al., 2013; Penman & McNeil, 2008). Nevertheless, there is no
concrete research done on the area of impulse buying behaviour in the working women
context. Therefore, the purpose of this research is to explore the impulse buying behaviour
of working women buying clothing in New Zealand.
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1.2 Background and context
This section outlines the background and the context of this research project and gives an
overview of the clothing retail industry in New Zealand, insights into the working women
category of New Zealand, and the rationale for this project.
1.2.1 Clothing retail industry in New Zealand
The apparel retail industry is one of the fastest-growing industries in New Zealand. The
current New Zealand retail industry is worth NZ$ 2.7 billion annually, and the last five years’
market growth rate is 2.7% (Clothing Retailing in New Zealand, 2019). During the 2017 -
2018 June period, due to unforeseeable events in the market and the economy, many
businesses failed, and there was a significant decrease in the New Zealand retail industry.
There were 2,956 stores that closed in that period, and due to the closure of stores, the
industry growth rate has decreased (Dynamic retail, 2018). According to the data, by the end
of December 2019, 3,625 large apparel retail stores were operating across New Zealand
(Clothing Retailing in New Zealand, 2019). Also, according to Retail Association New
Zealand, the retail industry is expecting a NZ$120.6 billion growth by 2030, with 2,500 new
clothing retail stores around the country (Dynamic retail, 2018; Tagra, 2019).
According to the current data, the average person in New Zealand spends close to NZ$2,000
on clothing annually. The total growth in retail sales increased by 105% from 2000 to 2018.
However, the net margin was low around the clothing sector due to high overheads, and it
was calculated in 2018 as 7.5% (Dynamic retail, 2018).
1.2.2 Working women segment
New Zealand is one of the countries in the world that has a higher population of women than
men. According to the current statistic, 51% of the New Zealand population are women
(Stats NZ, n.d.). However, when analysing the workforce, 25.2% are working women out of
the total population of 1,260,000 women (Stats NZ, n.d.). In the last five years, there has
been a positive trend of increasing working women numbers in New Zealand, and as a result,
many businesses have shown positive growth, for example, the fashion and cosmetics
industries.
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The increasing number of working women is an essential factor to boost the clothing retail
industry because they follow style trends, and usually purchase more clothes than other
women. When the buying patterns were analysed, as presented in Chapter five, this research
found that working women were purchasing more than two items in one purchase cycle.
Therefore, it is essential to identify buying patterns.
Thus, it is vital to do more study on working women’s impulse purchasing behaviour,
because previous research show every consumer purchasing good at least one time
impulsively in their buying cycle (Johnson & Jennifer, 2010). The result of this research
project is expected to provide a robust platform to gain sales growth in the retail clothing
industry.
1.2.3 The rationale of the research
From 1950, until today, various scholars have been executing their research on this subject.
Many of them found there are many factors affecting impulse buying behaviour of the
consumers, such as internal and external store environments, interpersonal, demographic and
cultural factors (Clover, 1950; Cakanlar & Nguyen, 2019; Karbasivar & Yarahmadi, 2011;
Millier, 2000; Stern, 1962; Tifferet & Herstein, 2012).
Any product can be purchased impulsively; however, purchasing apparel is one of the most
frequent impulse purchase decisions. The previous studies showed that compared to other
products, clothing purchasing has a higher number of impulse purchasing patterns (Johnson
& Jennifer, 2010). When analysing the New Zealand clothing purchase patterns, Penman
and McNeil (2008) identified that there is a continuous growth in impulse buying in the
apparel sector, and in line with them, Brici et al. (2013) identified that impulse buying
behaviour has grown among young consumers in New Zealand. However, both studies
focused on impulse purchasing patterns of young consumers. Therefore, it is essential to
examine impulse buying behaviour patterns in different age groups and different segments.
Therefore, this research focuses on the impulse buying behaviour in the different age groups
of New Zealand’s working women.
This research will help to fill the gap in the literature, and it will add benefits to the field of
the clothing retail industry in New Zealand. Because there are many players in the current
market, and it is highly competitive, the markets and retailers try to use different methods to
attract their consumers. Therefore, identifying consumer behaviour is very important to
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sustain the position in the market. The findings of this research will be beneficial for owners,
managers and marketers in the retail apparel industry in New Zealand to gain competitive
advantage. Also, this research will help to fill the gap in the academic literature related to
impulse buying behaviour in New Zealand.
1.3 Research question/aim and objectives
This research aims to explore the impulse buying behaviour of women buying apparel in
New Zealand. Based on previous studies, there are research gaps in impulse buying
behaviour studies in the New Zealand market. Impulse buying behaviour is a vast area in
which to conduct the study; therefore, this research focuses on age 20+ working women
buying apparel. Furthermore, it will narrow down to three main objectives as listed below:
1. To determine the influence of the store environment on impulse buying behaviour.
2. To assess the connection between the emotional state of women and impulse buying
behaviour.
3. To determine if women in different age groups have different impulse buying
behaviour.
The main question which develops from the study is: “How do emotional states, store
environments and the age of working women affect their impulse purchases of clothing
in the New Zealand market?
Also, and due to the limited time period and the budget for this research, the sample size for
questionnaire responses sought was in the range of 250-275 working women in New
Zealand.
1.4 Outline of the research project
The research project consists of six chapters which cover the research topic of identifying
impulse buying behaviour of working women buying clothing in New Zealand. The contents
of each chapter are outlined below.
The first chapter consists of the background, rationale and significance of the research and
the research problem, and the objectives and the structure of the research project.
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The second chapter of this project explains the New Zealand clothing retail industry and the
theoretical aspect of impulse buying behaviour. Moreover, it shows the link between the
research objectives and the research question in a theoretical context.
The third chapter is the literature review which focuses on previous studies of impulse
buying behaviour. In addition, it elaborates on the studies relating to the effect of age,
environment and emotional states in impulse buying behaviour. The latter part of the chapter
identifies the research gap discussed above, relating to the research objectives.
The fourth chapter of the study elaborates on the methodology of the study. It focuses on the
data collection method and the sample selection design of the questionnaire with reference
to the literature review of Chapter three. The methods used in this research involve an online
questionnaire and semi-structured telephone interviews for collecting data from the target
segment of women aged 20 and over buying apparel in New Zealand. Furthermore, it gives
an insight into the validity and reliability of the study.
The fifth chapter discusses the findings and analyses of the collected data. It also relates to
the research objectives and analysis with reference to closing the research gap.
The last chapter, Chapter six, is the conclusion of the study. It summarises the findings of
the study as well as presenting recommendations that derive from this research. In addition,
it explains the implications and recommendations for future research based on the impulse
buying behaviour of women buying clothing in New Zealand.
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Chapter 2 Theoretical Constructs and Industry Analysis
This chapter starts with a discussion on the history of the clothing retail industry and the
New Zealand clothing retail industry. Then it goes on to explain the industry analysis with
reference to Michel Porter’s five forces theory. The latter part of the chapter focuses on the
consumer buying behaviour and impulse buying from the theoretical aspect.
2.1 The history of the clothing retail industry
The evidence of the clothing retail industry stretches back to ancient Egypt. The Egyptians
were the first people who sold clothes in open markets. When analysing the history, it was
noticeable that in those days, open markets were not based on money, but on exchanging
goods (Johnson & Jennifer, 2010). However, after the industrial revolution, the clothing
industry has become one of the fastest-growing industries in the world. Countries like the
UK, France and America started manufacturing clothing for the mass market. As a result,
in 1852, the first clothing department store, Bon Marche, opened in Paris, and following
France, many countries opened department stores (Johnson & Jennifer, 2010). Fifty years
later, the department store concept was modified, and in 1920, the shopping mall concept
started in America (Frączkiewicz, 2013).
During the 1950s and 60s, due to the invention of machinery, people moved to mass
production of clothing and other goods with low price points. As a result of this, retail stores
opened everywhere, and individuals stopped making clothes for themselves (Frączkiewicz,
2013). In the latter half of the twentieth century (1950-2000), the production manufacturing
base moved from Europe to Asia due to cheaper labour costs. As a result of globalisation
and the new phase of technological developments, European countries started to pay more
attention to retailing rather than manufacturing (Frączkiewicz, 2013). More and more
shopping malls evolved in people lifestyles, and apparel shopping changed dramatically.
In three centuries (from 18 centuries to 20s’), the clothing industry has refined itself in many
ways and gone through various changes. From simple living in the early days when they
were exchanging a bushel of wheat for a shirt, to the present-day customised retail
experience. Today, retailers are trying to meet and usher in customers’ expectations and are
driving the retail industry into the new era.
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2.2 Retail Industry in New Zealand
The apparel retail industry is one of the fastest-growing industries in New Zealand with the
presence of foreign and domestic brands. People are willing to pay for quality and the brand
of clothing. The current New Zealand retail industry is worth NZ$ 2.7 billion, and the last
five years’ market growth rate is 2.7% with an annual growth of 1.2% (Clothing Retailing
in New Zealand, 2019). Compared to the Australian market, the New Zealand apparel retail
market shows a more than 132% growth in the last ten years which is worth NZ$ 92.3 billion.
The current employee base for the apparel sector is close to 210,000, which is 10 % of the
New Zealand workforce (Tagra, 2019). The average New Zealander spends between $1785-
2000 annually on buying clothing, and the growth rate is 105% compared to other sectors.
Apart from that, the clothing retail industry sector in New Zealand has as a higher margin
sector, which is 7.5 %. The clothing retail industry in New Zealand is expected to continue
growing with the prediction of NZ$120 million by 2030 (Tagra, 2019).
According to the Westpac retail insight report (2015), the New Zealand clothing retail
industry is categorised into five sectors. The Figure 2.1 shows the shows categorisation of
clothing retails presence in New Zealand. These are the small local clothing stores, the large
retail stores (located in a few cities in either North or South Island; for example, BONZ), the
multi-site retailers (covering both islands; for example, K+K clothing, Glassons), the
multinational retailers (for example, Like Dotty, Just jeans), and offshore online retails (for
example, Alibaba). However, out of these, 89% of the clothing retail industry is dominated
by small to large retail. Physically these four sectors comprise 35,367 retail outlets around
the country (Tagra, 2019).
Figure 2.1
Category of clothing retail presence in New Zealand
Reprinted from Industry insights-retail Westpac Bank,2015. Copyright 2015 Westpac Bank.
The clothing retail industry is rapidly changing around the world as well as in New Zealand.
Therefore, it is essential to conduct an in-depth analysis of this industry before understanding
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consumer behaviour towards clothing. When it comes to a high demand industry, it is
necessary to identify the competitiveness, weaknesses, strengths and rivalry within the
industry. Though this research is based on impulse buying behaviour of clothing, it is
fundamentally vital to identify the primary activities related to the industry before analysing
the consumer activity. Therefore, Porter’s five forces model (1980) will be used to make a
systematic examination of the clothing retail industry in New Zealand.
2.2.1 Michel Porter’s five forces analysis for the clothing retail industry in New
Zealand
Michel Porter’s (1980) industry analysis model depends on five competitive factors. As
shown in Figure 2.2 these factors are: threat of new entrants, bargaining power of suppliers,
bargaining power of buyers, the threat of substitutes and competitive rivalry within the
industry. Each factor will add an extra plus and minus benefit to the industry. It is described
below in the context of the New Zealand clothing retail industry.
Figure 2.2
Michel Porter’s (1980) five force model
Every industry has sharpened with its structure, technical characteristic or the competition.
A company entering into the industry has to cope with the industry environment when
making strategic decisions (Porter, 1979).
• The threat of new entrants
The new entrant to the clothing retail industry will make many changes in the industry itself.
It can shake the industry with market share, profitability and competition. However, Porter
(1979) explained entry barriers under the economy of scale, distribution channel, capital
8L.R.G. Nelum.R.W. Arulalan -2019008282
requirements, switching cost and product differentiation, and government policy. In 2008,
Porter further categorised economy of scale into two areas: the supply and the demand side
of the economic scale (Porter,2018). The supply scale economy arises when retailers open
many outlets, or one retailer comes up with broad products categories. However, the current
New Zealand retail market is made up of a high supply scale of individual retail stores
(Tagra, 2019).
On the other hand, demand scale on a larger scale. When analysing product differentiation,
brand loyalty plays a significant role, so people switch to dependable brands. The
distribution channels are flexible and set up cost is low in the retail industry compared to
other industries. Also, government rules and regulations are flexible in retail because there
is no licensing requirement.
Though some factors of the economy of scale are on the higher sides, overall, the economy
of scale in the retail industry in New Zealand is low compared to other industries.
• Bargaining power of buyers and suppliers
The bargaining power of buyers is a crucial factor in the retail industry. The retail industry
is very competitive compared to other industries in the world. Therefore, all over the world,
including the New Zealand retail market, the bargaining power of the buyer is very high
(Mann & Byun, 2011). There are many payers, as well as many buyers (customers) in the
market. Due to this, they can bargain easily. Every individual customer in the retail industry
has either direct or non-direct bargaining power; they may ask to push down the price, not
purchase or switch retail stores.
The bargaining power of suppliers depends on a few factors. These include the volume of
the orders, concentration and level of forwarding integration. However, the New Zealand
retail industry depends for the most part on South and East Asian suppliers, like India,
Bangladesh, Sri Lanka, China and Vietnam (Tagra, 2019). Despite this, a supplier has little
control over the New Zealand industry. Whether it is a big retail chain like “Farmers” or a
small retailer like “SS sports”, suppliers still have the same low bargaining power.
• Threat of substitutes
The threat of substitution for the clothing retail industry is low because there are no products
that replace clothes. This can be evaluated using the availability of brands, type of clothes
or switching cost. For example, customised or homemade clothes can be a substitute. In the
New Zealand context, substitutes for retail are minor today, since, after the technology
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revolution, people very rarely customise, or make their clothes at home. Mostly they will
purchase either online or from a retail store.
• Industry rivalry
The intensity of rivalry in the industry depends on the industry growth, diversity of
competition and product differentiation. High industry growth makes revenue for the
industry, but on the other hand, intense rivalry makes for high competition and influences
the price of the products (Porter, 1979). The New Zealand apparel industry has shown
continued growth in the last ten years, and it is a good sign for people who wish to enter the
market (Clothing Retailing in New Zealand, 2019). However, as a result, competition will
increase in the near future.
Overall, the analysis of the Porter’s five forces for the New Zealand retail industry shows
that it has high growth and is a competitive industry. In this kind of competitive industry
environment, every aspect of the consumer is crucial. The retailers and marketers need to
have a deep understanding of the consumer buying process to reach their target consumers.
In this scenario, this study focuses on finding out about consumers’ age, their emotional
states and how the store environment is affecting their impulse buying of clothing.
2.3 Consumer behaviour
With the development of people’s lifestyles over the centuries, attitudes towards buying
products have changed from need to lifestyle activity. Therefore, with all the changes in
today’s volatile market condition, it is necessary to understand consumer buying behaviour
towards the products or service (Arenas-Gaitán, J., et al., 2019). Each consumer has their
own experience of buying the products or services they consume. However, the level of
involvement in making purchases is crucial nowadays. In 2001, Blackwell et al. introduced
a seven-step process model to identify the consumer buying process, and they described it
as “a roadmap of consumers’ mind”. Over the years, the model has been refined by different
researchers with various ideas (Blackwell et al., 2001, Kotler, 2006, Kottler & Kelly, 2012).
However, still, the Blackwell model is the base for the consumer buying process.
2.3.1 Consumer buying process
According to Blackwell et al. (2001), every consumer goes through seven stages of the
buying process. As shows in Figure 2.3, these steps include problem recognition,
information search, alternative evaluation, purchase decision, use, care and storage, post-
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purchase evaluation and disposal. The amount of time and energy they spend on each step
depends on their buying habits and product characteristics (Blackwell et al., 2001, p 71).
Figure 2.3
The consumer decision process model (Blackwell et al.;(2001)
Problem Recognition
Information Search
Alternative Evaluation
Purchase Decision
Use, Care and Storage
Post-purchase Evaluation
Disposal
When applying the consumer buying decision process to the purchasing of clothing, the
customer identifies the need to purchase clothes, for example, a pair of jeans. The purchasing
decision to buy a pair of jeans is based on the psychological need or the physical need of the
consumer. In addition, the buying decision will improve an individual’s personality and
culture. Moreover, it can be a repeat purchase of the same product they had used or the
decision to have a new product.
Secondly, the consumer searches for information on their decision. They might go for
fashionable jeans or the essential pair (Johnson & Jennifer, 2010, p.60). Moreover, if it is a
new product, they will search for information price, quality, fashion trends, brands,
availability of sizes. At the same time, customers are looking for alternatives as well. It might
be the price factor or another product that can be used for the same purpose. For example,
11L.R.G. Nelum.R.W. Arulalan -2019008282
going for a skirt or shorts instead of buying a pair of jeans. Finally, the decision is made, and
the consumer will purchase the product.
A post-purchase evaluation is involved when using the product. For clothing, this will
involve the washing and ironing evaluation when using the product. However, when it comes
to clothing, consumers take more time on evaluation of the product features rather than the
alternatives. Therefore, clothing consumers’ purchasing depends on brand loyalty, fashion
trends or the price point of the product (Wang et al., 2004).
Various scholars have suggested comprehensive information on consumer decision process
model based on their view of creating marketing and operational strategies of selling
products (Kotler 2006; Kottler & Kelly 2012; Hawkins et al., 2007). However, the cognitive
and emotional process is essential in each stage of this process.
Though the consumers pre-planned to buy their products from a retail store or online, there
are various factors which influence the final purchase. For example, they can switch into
impulse buying of a different product depending on the retail store factors, such as, for
example, product offers, or the store environment factors that influence consumers into
purchasing a different product. Factors such as colour themes or an eye-catching window
display, or an inside merchandise display can influence consumers to switch products. When
consumers are prompted into buying a product that was not pre-planned, this is identified as
“impulse or spontaneous buying behaviour”. It is an ongoing trend, and more and more
people go for immediate purchases of products regardless of its consequences. According
to Dowson and Kim (2009), impulse buying generates a fair amount of money, and 50% of
consumers coming to retail stores buy products spontaneously.
The buying process of a consumer is crucial in every industry. However, in the context of
the buying process, this study focuses on the impulse buying process of working women
buying clothing in New Zealand.
2.3.3 Impulse buying behaviour
Rational decision-making consumers are the exception to those engaging with a quick
decision on purchasing product. The quick decision of consumers is more involved with
emotions than rational thought regarding the product. Over the last seven decades, impulse
buying behaviour has increased significantly and has added benefits to the sellers and
manufacturers around the world. When compared to other sectors, clothing purchasing has
a higher degree of impulse purchasing patterns than other consumer goods (Johnson &
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Jennifer, 2010). Every person at one time or another engages in impulse purchasing in their
life. From 1950 till today, researchers around the world undertake their research on
identifying factors affecting impulse buying behaviour.
Speaking about finding segmentation on this subject of study, Stern (1962) has identified
four categories related to impulse buying behaviour, as stated below:
• Pure impulse buying behaviour
• Reminder impulse buying behaviour
• Suggestion impulse buying behaviour
• Planned impulse buying behaviour
The first category of “pure impulse buying behaviour” is explained as the consumer
purchasing a product breaking standard buying patterns; that means instantly encountering
and buying the product (Stern, 1962).
The second category is “reminder impulse buying” - as soon as the consumer sees the
product, they remember their need of it. Sometimes it may involve a store display, or they
think they might need the product in the future (Stern, 1962).
The third category is “suggestion impulse buying”. This is when the consumer sees the
product, visualises the need for it and purchases it, even though they do not have previous
experience of it (Stern, 1962).
The fourth category is “planned impulse buying”. This is when the consumer enters a store
with a specific brand idea of purchase, and suddenly buys another product, maybe due to a
discount or an offer, or they see a unique feature (Stern, 1962).
After four decades of Stern studies, Millier (2000) carried out his research based on retail
stores in the United Kingdom, and he stated the same. Most of his analysis has the same
impact as the research made by Stern (1962) study, and the scope was to find out
characteristics of the consumer relevant to impulse buying behaviour.
In 1974, Mehrabian and Russell proposed and theorised S-O-R (stimulus-organism-
response) framework, which relates more to retail store environment factors that influence
consumers’ product decision. The researchers found that there are many factors affecting
impulse buying behaviour of the consumer, such as the internal and external retail store
environment and factors such as product offers, displays, and salespeople’s attitudes.
Also, interpersonal factors such as the emotional state of the consumer and the demographic
factors, for example, age, culture, gender, and the income level of the consumer have various
13L.R.G. Nelum.R.W. Arulalan -2019008282
effects on impulse purchasing (Cakanlar & Nguyen, 2019; Clover, 1950; Karbasivar &
Yarahmadi, 2011; Millier , 2000; Stern, 1962; Tifferet & Herstein, 2012). Because of the
importance of impulse buying behaviour, in 1995, Rook and Fisher suggested a scale for
measuring the impulse buying behaviour of consumers. It is shown in Table 2.1 below, and
this simple scale has been used by numerous scholars for their studies on impulse buying
(Rook & Fisher, 1995).
Table 2.1
The buying impulsiveness scale
Strongly disagree (1) – Strongly Agree (5)
1. I often buy things spontaneously 1 2 3 4 5
2. “just do it” describes the way I buy things 1 2 3 4 5
3. I often buy things without thinking 1 2 3 4 5
4. “I see it, I buy it” describe me 1 2 3 4 5
5. “Buy now, think about it” later describes me 1 2 3 4 5
6. Sometimes, I feel like buying things on the spur 1 2 3 4 5
of the moment
7. I buy things according to how I feel at the 1 2 3 4 5
moment
8. I do not carefully plan most of my purchases 1 2 3 4 5
9. Sometimes I am a bit reckless about what I buy 1 2 3 4 5
Reprinted from “Normative Influences on Impulsive Buying Behaviour” by D. W Rook &
R.J.Fisher, 1995. Copyright, 1995 by Journal of Consumer Research.
According to Rook & Fisher’s (1995) impulsiveness scale, the circled number indicates how
much a consumer agrees with each statement or not, and finally calculates the score, adding
all the numbers circled. It will be between 9 and 45. If the total score is close to 9, this does
not indicate an impulse buyer, but if it is close to 45, it shows that the person is an impulse
buyer (Rook & Fisher, 1995).
14L.R.G. Nelum.R.W. Arulalan -2019008282
The above studies show that impulse buying behaviour is a complex process of a
phenomenon that comprises various factors. However, both retailers and consumers can
enjoy some economic benefits. For example, if a product offers something good, the
consumer can still enjoy the economic benefit of price point, and the retailer can get the
benefit of selling a product and maintaining their inventory level. When analysing the New
Zealand research base, minimal research has been carried out on the impulse buying
behaviour of consumers, especially in the retail industry. Therefore, this research is being
carried out to find out the impulse buying behaviour of women buying clothing, and it will
further narrow down to finding out how the store environment, emotional states, and the age
factor of working women affect impulse buying of clothing.
.
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Chapter 3 Literature Review
This chapter aims to provide an in-depth understanding of the consumer’s impulse buying
behaviour and simulate factors relating to past literature. Over the decades, impulse buying
behaviour has caught the attention of many researchers around the world. It has connected
various fields or sections related to impulse buying. The first part of this chapter elaborates
on the evaluation, the rationale, and the history of impulse buying behaviour.
It continues with an understanding of previous research related to the primary factors
affecting impulse buying behaviour. Although many factors influence impulse purchasing,
this research only focuses on demographic factors (age, income level, gender), store
environment, the emotional state of consumers, and each section shows up the gaps and
limitations of the previous studies related to New Zealand.
3.1 Impulse buying behaviour
Consumer behaviour researchers and marketers have explored impulse buying behaviour for
the last sixty years. Impulse buying has been defined as unplanned buying habits of
customers (Beatty & Ferrell, 1998; Clover, 1950; Flight et al., 2012; Han et al., 1991;
Husman, 2000; Kacen & Lee, 2002; Khawaja, 2018; Rook, 1987; Stern, 1962; Unsalan,
2016). As mentioned in Chapter two, Stern (1962) classified impulse buying into four
different areas: pure impulse buying, remind impulse buying, suggestion impulse buying and
the planned impulse buying.
Stern’s classification has been modified by Han et al. (1991) by adding impulse buying
behaviour on purchasing clothing. Consumers purchasing new fashion items or designs have
become self-motivated and purchase instantly (Han et al., 1991). Over the decades, the scope
of impulse buying behaviour has extended to various categories. Through the development
of technology-based devices, consumers can be addicted not only to offline purchases but
also to online instant purchasing.
Researchers around the globe have conducted research based on online impulsiveness, and
it adds some valuable insight into consumer literature. Singh and Varma (2018) introduced
two methods of classifying online impulse buying methods: “E impulse buying” and “Urge
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to buy impulsiveness” (UBI). It is an extended online version of Stern’s classification of
impulse buying (Singh & Varma, 2018; Stern, 1962).
The impulse consumer research focused on distinguishing emotional and psychological
factors of consumers from the environmental and situational factors of consumers in
different retail industries such as fast-moving consumer goods and clothing (Beatty & Ferrell
1998; Cakanlar & Nguyen, 2019; Flight et al., 2012; Haq et al., 2014; Husman, 2000;
Khawaja, 2018; Taushif & Gupta, 2013; Unsalan, 2016).
Nowadays, the consumer buying behaviour process heavy disturbing due to various reasons,
and people end up with instant purchases. The instant purchases not only fulfil their needs,
but they also became part of their lifestyle or leisure activity (Beatty & Ferrell, 1998; Flight
et al., 2012; Khawaja, 2018; Rook, 1987; Unsalan, 2016). However, researchers are yet to
fully understand the phenomenon behind the impulse buying behaviour of consumers. Using
previous literature, the researcher has developed Table 3.1 below, which gives an overview
of impulse buying related primary research from 1950 to 2019.
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Table 3. 1
The overview of primary impulse buying research (From 1950-2019)
Name of the Year
Key Contribution
Researcher (Decade)
Clover 1950 *The first person to study consumer impulse buying.
*Product based impulse buying and pointed out that
some products are sold.
1 impulsively and more frequently than other products
*Defined and classified impulse buying into four
Stern 1962
categories. These are: pure impulse buying,
remind impulse buying, suggestion impulse buying
2 and planned impulse buying
Mehrabian & *Consumer emotion state framework, “Stimulus-
1974
Russell Organism-Response (S-O-R)”
*This framework is used for analysing store
environment factors of impulse
3 buying behaviour of consumers.
* In-Store display generated the impulsiveness of
Clover 1986
consumers.
4
* Introduced consumer impulse buying behaviour as a
Rook 1987
lifestyle trait.
* Introduced fashion-based impulse buying behaviour
Han et.al 1991
of consumers.
5
Beatty & * Defined impulse as immediate purchase with no pre
1998
Ferrell intention
* Impulse buying is based on social pleasure and
Husman 2000
mood uplifting of the consumers
the consumers
Kacen & Lee 2002 * Culture influences on impulse purchasing
* Relationship between the positive mind-set of
Chang et al. 2013
consumers and impulsiveness.
6 * Relationship between interpersonal factors of
Kalla 2016
consumers towards impulse buying
Singh & * Categorisation of online impulse buying as E
2018
Varma impulse buying and
Urge to buy impulsiveness (UBI)
Cakanlar & * Cross-culture and personal traits, situational factors
2019
Nguyen towards the impulse buying
Past literature states that consumer impulse buying behaviour is influenced by many factors
such as consumers’ traits, product, demographic factors and the product-oriented factors
(Muruganantham & Bhakat, 2013).
Identifying the buying behaviour of the consumer is very important to today’s competitive
retail market. As stated by Bhuvaneswari and Krishan (2015), in a competitive environment,
18L.R.G. Nelum.R.W. Arulalan -2019008282
even minor changes between shoppers helped to get their target customers. Studies show
that in department stores, 27% to 60% of sales are generated by an impulse purchase.
Especially in India, the USA, and the UK, more than 40 % of consumers experienced impulse
buying (Priyanka & Rooble, 2012).
The majority of previous studies are based on Europe, and Asia and are very limited in other
continents. It is essential to focus on the Pacific and other areas. Therefore, in line with
previous literature, this project focuses on working women’s impulse buying habits and
affecting factors in the New Zealand context.
3.2 Emotional factors
The emotional level of a person directly affects the purchasing of goods. The buying patterns
of people vary for many reasons. However, based on various research, there is a link between
impulse purchasing decision of the consumers and their emotional levels.
According to Bhuvaneswari and Krishan (2015), impulse buying behaviour is positively
related to consumers’ emotions. Even if they enter a store in a negative frame of mind, their
emotional state can lift as they spend more time in the store and make purchase decisions
unconsciously. These are uncontrollable actions which individuals do, and it is a part of the
impulse buying behaviour of the consumer. Chacharkar and Ikram (2017) explain in their
studies that impulse buying behaviour is the most sensitive buying behaviour shown by the
consumer. Furthermore, they explain that impulse buying happens in the fast-track process,
and they persuade themselves to purchase when they identify a need. Mostly, it depends on
the situation and the previous purchase experience of the consumer. It is entirely out of the
typical buying process, and there is no post-purchase evaluation.
Also, many researchers conducted their studies related to influences of personal traits
towards impulse buying behaviour. Husman (2000) found that impulse buying behaviour is
a social pleasure and mood-elevating moment. Furthermore, he states that it is not a rational
explanation of shopping behaviour, and he argues whether instance purchases add
satisfaction to the consumer because it is not what they specifically searched for. However,
he identified that consumers do experience a state of enjoyment when they purchase products
speedily (Husman, 2000).
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