Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases

Abstract

Our research examines the effect of product characteristics and retailing factors on the likelihood a consumer makes an impulse purchase. We present a framework for understanding the impulse buying process and use it to explain our findings. Our nested logit model uses data from an adult panel of grocery shoppers over three major household grocery shopping trips. The results indicate that product characteristics have a fifty percent greater influence on impulse buying than do retailing factors. Of the three product characteristics investigated, the hedonic nature of the product has the greatest influence on impulse buying. Of the three retail factors, a store environment with a high–low pricing strategy influences impulse buying the most. Our findings suggest that retailers who want to encourage impulse buying behavior utilize promotional activities and merchandising tactics that attract consumers' attention to emotionally appealing products.