A Study On Impulse Buying Behavior With The Influence of Cross Culture On Herding in Greater China
A Study On Impulse Buying Behavior With The Influence of Cross Culture On Herding in Greater China
ABSTRACT
This study proposes a social influence perspective to compare the consumers’
impulse buying behaviors between Taiwan and China. The social herding impulse
buying factors are pursuing fashion, social norm, self- identity, and consumer
experience. We use binomial and multinomial logistic model to understand how
consumers influenced by social herding factors so that they became impulse buying
behavior and estimate the relationship between the frequency of impulse buying and
herding factors. The results are the consumers’ impulse buying influenced by social
herding factors both in Taiwan and China. The consumers’ impulse buying in China
and Taiwan would be influenced from different social herding factors. With the
frequency of purchasing, consumers would be influenced from different social
herding factors
Keywords: Impulse Buying, Herding, Culture
INTRODUCTION
1
Previous research have classified impulse buying as a personal characteristic(as
funny, impulse buying potential et al) and consumer usually do impulse buying after
get a suddenly and unresisting urge in-store , they do it to satisfy their spontaneous
desire to own the product(Rook and Hoch,1985; Iyer,1989 Piron,1991; Beatty and
Ferrel,1998; Roberts and Pirogs,2004; Wood, 2005).
However, some researcher has noticed consumers also be influenced by social
factors(Hausman, 2000), the influence on impulse buying by different culture(Tai
and Tam,1997;Mattila and Wirtz, 2001;Wood,2005)
Compared to previous research, we propose a impulse buying model as a
function of social herding (Burnkrant and Cousineau, 1975 ; Lascu and Zinkhan,
1999 ) , includes fashion pursuing, social norm, self-identity ( Bikhchandani and
Sharma, 2000 ; Sias, 2002 ) and consumer experience ( Crawford and Melewar,
2003;Phau and Lo, 2004 ; Woods, 2005), rather than with the view of individual
impulse buying behaviorist.
In this paper, we take a first step to quantitatively measure a consumer‘s response
to different herding factors of impulse buying in department stores shopping both
Taiwan and China. We use binomial logistic model to analyze how consumers
influenced by social herding so that they became impulse buying behavior. Using
multinomial logistic model to estimate the frequency of impulse buying by individual,
we found the relationship between the frequency of impulse buying and herding
factors.
The second part is literature review, it apart previous literature from traditional
and recent research in impulse buying, herding and culture literature; the third part is
research design; results and conclusions. The final is study implications and limits.
LITERATURE REVIEW
2
environment that minimizes inherent stress and accentuates or at least maintains
natural levels of excitement ,while also virtuously motivating impulse purchasing by
reducing or eliminating barriers to purchase.
In decades, scholars started to transfer the views on the characteristics of
different consumers’ buying trends(Engle, Blackwell and Miniard,2001;Beatty and
Ferrell,1998;Wood,2005); the influence on impulse buying by different situation
or culture(Tai and Tam,1997;Mattila and Wirtz, 2001;Wood,2005);.and began
to try how to predict the potential of consumers’ impulse buying ( Kelly and
Smith,2000 , Omar and Kent,2001 ; Crawford and Melewar,2003 ; Robert and
Jones,2001).
3
Due to satisfy individual’s social needs, consumer would make more impulse buying
which make them feel excited and gratification. Consumer’s society includes
consumers purchasing experience and characteristics of shopping environment.
Peck and Childers(2006)started to address the times of touching with people by
people would make more impulse buying, they found customers touch more with
salesmen, they would increase the possibility of impulse buying. It explains impulse
buying should relate with touch between people by people.
Asch (1952) was the first psychologist scholar who proposed the herding
behavior. However, most research investigates it on psychology and finance. Then,
there are few researches on the marketing. Herding is defined as a group of consumers
following each other into the same behavior over some period of time (Sias, 2002)
Although all decisions they decide don’t follow what they think on their mind.,
consumers would be influence more or conformity from other people and increase the
frequency of impulse buying behavior (Lascu and Zinkhan, 1999 ; Burnkrant and
Cousineau, 1975).
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4. Culture study
5
RESEARCH METHOD
Social Herding
1. Pursuing fashion
Consumer Impulse Buying
2. Social norm
purchase
3. Self- identity
4. Consumer experience
6
identity, and consumer’s experience on the department stores shopping. We use the
formula:
.
Prob(y=1)=Λ( β' xi)= exp ( β0 + β1Xi1 + β2 Xi 2 +(1) ... + βnXin )
1 + exp ( β0 + β1Xi1 + β2 Xi 2 +... + βnXin )
Second, we use multinomial logistic model to assess how these issues affect not
only a consumer impulse buying behavior but also impulse buying frequency as well:
β’kxi=βk0+βk1xi1+βk2xi2+…+βknxin (5)
Xin is the value of the n-th explanatory variable for consumer i. Since k=4 is the base
group in the study, we set β4 = 0,且 β’4xi = 0 then
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In Taipei, sampling location were Sogo Department Store and Breeze Center.
We got 220 samples data and effective 206samples, effective ratio is 94%.
Table 4 provides the summary of statistics for the entire sample as well as
China and Taiwan consumers.
3. Reliability analysis
We have to affirm our study that is high reliability and effectiveness. The
Cronbach’s alpha of Taiwan parts is 0.8548 and the Cronbach’s alpha of China parts
is0.8979. And each parts of questionnaire are greater than 0.7(see as Table 1). It
means that this study has good reliability.
Table1:Reliability analysis
Taiwan
Impulse Buying 0.7351
Social Herding 0.8151
Total 0.8548
China
Impulse Buying 0.7831
Social Herding 0.8602
Total 0.8979
8
Consumer Pearson -.148 .130 .407(**) .683(**) .256(**) 1
experience Correlation
** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).
RESULTS
1. Demographics data
This study included 358 samples totally, 42.2% were male and 57.8% were
female. In Taiwan, most samples were 18~35 years old and university students hold
the greatest portion.(Table 4)
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Table 4:Demographics data of Taiwan and China
Taiwan China
Time Percentage Time Percentage
Gender
Male 95 46.1 56 36.8
Female 111 53.9 96 63.2
Total 206 100.0 152 100.0
China Taiwan
Age
Time Percentage Time Percentage
0~10 0 0 0 0
11~20 21 13.7 58 28.0
21~30 79 51.6 118 57.0
31~40 50 32.7 30 14.5
41~50 3 2.0 1 0.5
51~60 0 0 0 0
60~ 0 0 0 0
Total 153 100 206 100
Education
Time Percentage Time Percentage
Elementary 1 .7 0 0
Junior 55 35.9 1 0.5
Senior 89 58.2 41 19.8
University 9 5.2 147 71.0
Graduate 0 0 18 8.7
Total 153 100 206 100
10
Total 206 100
China Time Percentage
Never 12 7.9
Table 6 provides the result of binomial logistic estimation. Table6 contains both
coefficient estimations , the ratio of the logistic coefficient B , standard error SE, and
exp(B).Exp(B) is the effect of the independent variable on the odds ratio, we use
exp(B)as measures of effect size.
The model in table 6 contains only demographic characteristics on
individuals(i.e., gender, age, education)in two areas. All coefficient estimates in
Taiwan and China are statistically insignificant greater than 0.05 except for the
coefficient of marriage variable in Taiwan.
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influenced on consumers impulse buying behavior in China and Taiwan (table 7).
Taiwan consumers who have impulse buying due to pursuing fashion, self-identity
and consumer’s experience apparently. As to China consumers, it is only significant in
social norm and we don’t have enough evidence to support other factors. It means that
consumer in Taiwan was influenced from social members obviously and adopted
those product which were praised and pursued by others. Pursuing fashion is a main
social factor which was influence to consumer when they make purchasing decision.
Besides, self-identity was also a main social factor which influence to consumer in
Taiwan. Without needs and value of products, they make impulse buying because they
wish to get identity by themselves and satisfy the social role’s expectation by social
members. Consumer experience is also a key factor which influence on herding
impulse buying.
We consider that consumer in China influenced from social norm which social
members impose on individual normative influence. Perhaps Chinese traditional
culture on thrift, individual conforms to social members expectations. So, social norm
restricted consumer’s impulse buying decision in China. Thus, H1 hypothesis is
supportive that the consumers’ impulse buying influenced by social herding factors
both in Taiwan and China. H2 and H3 hypothesis are also supportive that the
consumers’ impulse buying behavior influenced from different social herding factors
as well as China and Taiwan.
Table7: Binomial logistic estimation results(2)
Taiwan China
B S.E Sig. Exp(B) B S.E Sig Exp(B)
Pursuing fashion 2.663 .781 . 001 14.344 .989 1.980 .618 2.687
Social norms .293 .611 .631 .746 5.906 2.617 .024 .003
Table 8 and Table 9 provide the estimations results for social herding impulse
buying factors. According to the results, the frequency of purchasing is influenced by
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social herding factors. At the part of China, we could find out when y= 2 and y= 3, it
prevail to relevant influence to pursue fashion and consumer’s experience. With the
increase of frequency of purchasing, consumers impulse buying in China influenced
by pursuing fashion and consumer’s experience. At the part of Taiwan, pursuing
fashion and self-identity are significant to frequency of purchasing when y=2.
However, when y=3, there were only consumer experience which was significant.
It prevails to an interesting thing that self-identity was negative significant. It
argued that individual who had higher standard of self-identity; the less impulse
buying. Otherwise, the lower standard of self-identity individual had, the easier
individual would be influence by social members.
As y=3, consumer are just only influenced by consumer experience
significantly. It meant when consumers increased their frequency of purchasing,
consumer’s experience would become the key factor which consumer’s reference of
purchasing decision..
Pseudo R-Square
Nagelkerke ..557
McFadden .318
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B S.E Sig Ex B S.E Sig Exp( B S.E Si Exp(
. p(B B0 g. B)
)
Nagelkerke .456
McFadden .192
CONCLUSIONS
We use binomial logistic model to analyze how consumers would be
influenced by social herding so that they became impulse buying behavior. Using
multinomial logistic model to estimate the frequency of impulse buying by individual,
we found the relationship between the frequency of impulse buying and herding
factors.
We proposed a social herding impulse buying model to discuss the difference
between Taiwan and China with questionnaire interview. The study found that both of
China and Taiwan consumers influenced by social herding factors become impulse
buying
According to the results, the consumers in China were influenced by social norm.
And consumers in Taiwan were influenced by fashion and the standard of self-
identity. Furthermore, the consumer’s purchasing decisions were influenced by
different frequency of purchasing, revealed that consumers affected by different social
herding factors. That is an important finding.
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or different research methods can probe consumer impulse buying behaviors deeply.
Cross culture comparative analysis to impulse buying behaviors between China and
other countries is still an interesting orientation.
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