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Journal of Indonesian Economy and Business

Volume 31, Number 1, 2016, 81 – 98

THE IMPACT OF THE IMPULSE BUYING DIMENSION


AND CHERRY PICKING: AN EMPIRICAL STUDY
(Consumers Case Study in a mall in Central Jakarta)

Endang Ruswanti
Universitas Esa Unggul Jakarta
(endangruswanti@gmail.com)

ABSTRACT

The purpose of this research is to further test the contradictory research result. Mathai & Haridas’
findings (2014) stated that a discounted price did not influence impulse buying. Meanwhile Ruswanti,
(2013) found that a discounted price tended to influence the consumers’ spontaneous shopping. Data
discovered by Nielsen (2007) stated that apparently 85% of Indonesian consumers tend to buy things
on an impulse. This research was in the form of a survey, the sample being 197 people, of whom 96
respondents were female, and males the other 101. The respondents ages were between 17-50 years
old, those with an income of 3 million rupiahs numbered 83 persons, 64 people had an income above 5
millions rupiahs, and 50 respondents had an income above 10 million rupiahs. The technical design
was a purposive sampling;70% of the consumers liked the discounted products, and bought something
on the spur of the moment at least once. The regression analysis was with SPSS 19; the results show
that the external, internal, situational environment, products’ variety, and sociocultural effects
significantly influenced the cherry picking. The respondents with an income of above 3-5 million
preferred spontaneous shopping. This research gives a contribution to the development of the
consumers’ behavioral theory through impulse buying and cherry picking.
Keyword: impulsive buying dimension, cherry pick, consumer’s behavioral, central Jakarta

BACKGROUND The demographic conditions brought advan-


The test for impulsive buying had become a tages to the consumers, such as their situation,
challenge for the researchers into consumers’ the variety of products offered, and sociocultural
behavior because of its complex characteristics. changes. Indonesian consumers changed their
Hausman (2000) stated that impulsive buying shopping behavior; the comfortable market-
behavior was a complex and varied behavior places. AC Nelsen (2007) stated that apparently
phenomenon; such consumers contributed the 85% of shoppers in Indonesian modern retail
most to the volume of sales of retail products stores tended to do unplanned/impulse shopping.
each year. Ruswanti (2013) mentioned that the The first research gap, in the findings of the
character of cherry pickers tended to make them contradictory research results found by Mathai
buy spontaneously after knowing that the shops & Haridas (2014) stated that discount prices did
offered big discounts. This was seen when the not influence impulse buying, and Verplanken et
consumers shopped in a mall that frequently al., (2005) stated that promotional material
offered big discounts, from 50% to 70% off. The inside shops had little influence on impulse
retail industry in Indonesia, as one of the most buying. Meanwhile Ruswanti’s findings (2013)
dynamic and fast developed industries, is con- stated that discount prices of 70% tended to
trolled by both domestic and foreign companies. influence the consumers to shop spontaneously.
Retailers in Indonesia have shown increasing Secondly, confirming Ruswanti’s findings
sales growth over the last ten years. This was (2013), the cherry picking behavior liked to
encouraged by lifestyle changes and improve- move from one brand to another. Hawkins et al.,
ments in personal incomes. (2007) also stated that impulse buying consisted
of buyers who liked to look for variety, as the
82 Journal of Indonesian Economy and Business January

main reason for them moving from one brand to dictory research result was found, which was the
another. finding of Mathai & Haridas (2014) that dis-
The unplanned, impulsive shopping, relates count prices did not influence impulsive buying,
stongly with cherry picking, in which the cherry meanwhile Verplanken et al., (2005) stated that
picking characters were the happy and satisfied promotional material by the shops did not influ-
consumers, shopping both by moving from one ence impulse buying. But Ruswanti’s finding
shop to another and by moving from one brand (2013) stating that discounted prices of 50-70%
to another to get the cheap quality products. Of off the list prices influenced the consumers to
course the cheap prices and the quality products shop spontaneously. Dolakia (2000) stated con-
could be gotten through the big discounts offe- sumers could experience being pushed into
rered in the malls’ shops. The malls’ shops impulse buying when facing visual signs such as
usually give big discounts at the weekends, discounted promotional items. Secondly, to test
during holidays and important dates such as the empirically the findings of Muruganantham &
17th of August (Indonesian independence day). Bhakat, (2013) that stated impulse buying had
In Lebaran, Christmas, and New Year, the malls’ four dimensions of external, internal, situational,
shops always offer discounts; it is done by the products’ variety, and sociocultural factors.
shops to attract the consumers to shop in the Thirdly, there have only been a few people who
malls’ shops. Besides, it is the shops’ strategy to have tested the relationship of impulsive buying
always be visited by consumers. The relatedness and bargain hunting; theoretically both variables
of the four impulsive buying dimensions deve- are very related.
loped by Muruganantham & Bhakat, (2013), has Impulsive buying consisted of having spon-
never been tested empirically. taneous buyers, meanwhile the bargain hunters
The impulse buying dimension was tested were the buyers who wanted to get the quality
through four factors, which were external, inter- products with the big discounts (Ruswanti,
nal, situational, products’ variety, and the soci- 2013). Of course it was only the discounted
ocultural environment. Impulsive buying is a products that were of good quality and at cheap
common phenomenon in daily life (Liang, Liang prices. The bargain seekers tended to find infor-
& Duan, 2008). Because of the economy and mation about all the shops to get the quality
social developments, the consumption concept’s products at a big discount (Ruswanti, 2013).
development, and the situational improvement of Shiffman & Kanuk (2010) stated impulsive buy-
factors such as shopping net, impulsive buying ers was regarded as the consumers who liked
had become easier than before (Vohs & Faber, shopping when there were innovative and crea-
2007). Meanwhile the cherry picking variable tive sales promotions that used the right technol-
had not been tested all that many times by for- ogical messages in the retail shops. The big dis-
mer researchers; most of society did not yet counts were aimed to attract the consumers who
know the term “cherry picking”. The impulsive liked the promotional prices, to improve the
buying influence with the desire to cherry pick shop’s retail sales. The discount prices were the
needed to be tested further, so that mall manag- retail strategy for selling products. It is important
ers understood the consumers’ behavior. Was it to review again the influence between the impul-
true that the discounted prices influenced spon- sive buying dimension and bargain hunting.
taneous buying by the external, internal, situa-
tional and products’ variety, and the sociocul- THEORETICAL FRAMEWORK AND
tural factors? HYPOTHESIS
Impulsive Buying Dimension
THE RESEARCH PURPOSES The retail industry in Indonesia had become
The first purpose of this research is to test one of the most dynamic and fast growing
the influence of the four dimensions of impul- industries, for both the domestic and foreign
sive buying with the cherry picking. A contra- companies who entered the market, such as
2016 Ruswanti 83

Carrefour, Makro, Lotte Mart, Indomaret, marketing sign or the stimulation controlled by
Alfamart, etc. Watching and testing impulsive the marketers to attract consumers to buy their
buying behavior is very interesting; the proof is products. There are two stimulations of the
since 1950, it has been tested by Clover, mean- external environment, those are the shopping and
while Abratt & Goodey (1990) found that the marketing environment. The shopping envi-
impulse buying testing, in the retail trades, could ronment, includes the shops’ size, situation,
be more interesting for the producers and retail- design and format, while the marketing envi-
ers all over the world. Muruganantham & ronment is the various sales activities and adver-
Bhakat (2013) stated that the spontaneous buy- tising. According to Muruganantham & Bhakat
ing impulse or unplanned buying involved five (2013) impulse buying can be induced when
dimensions, which were the external factor, the consumers meet the relevant visual stimuli in a
internal factor, the situational and offered prod- retail environment or promotional area. Impul-
ucts’ variety factors, and the sociocultural factor. sive buying is regarded as a shopping scenario
From that research result, the researchers would with an innovative creative sales promotion
continue to test empirically, but when also which uses the right technological message in
related with bargain seeking behavior, there was the retail spaces (Shiffman & Kanuk, 2010).
very little research. Beatty & Farrell (1998) Applebaum (1951) was the first man who
stated that impulsive buying is direct buying showed that impulsive buying comes from the
without any pre-planning to fulfil certain needs. consumers’ exposure to a stimulus in the shop,
Block & Morwitz (1999) stated that impul- that is both direct and indirect. Hoyer &
sive buyers are consumers who buy certain Macinner (1999) stated that the atmosphere in
products and suddenly have a strong impulse to shops is very influenced by attributes such as the
buy something without first considering if they lighting, location, the merchandise’s presenta-
need or have a use for it. Meanwhile Rook tion, tools/equipment, the floor, colours, voices,
(1987) stated that impulsive buying is the con- smells, the sellers’ behavior, fashion styles, and
sumers’ impulse coupled with their lifestyle service that improves the impulsive buying
characteristics and can be related with their instinct. Verplanken et al., (2005) added that the
materialism, or them looking for the sensational products appearance and the background music
and recreational aspects of shopping. It is in in shops are the important external influences for
accordance with Ruswanti’s finding (2013) that the customers. Consumers can experience the
consumers who are materialistic like to shop impulse of buying something “on the spur of the
spontaneously, while recreate in mall, mainly to moment” when faced with the visual or audio
buy clothes. Han et al., (1991) stated the fashion promotion in shops (Dholakia, 2000).
oriented impulsive concept is the desire to buy Sensoric stimulation and information levels
new trendy products. Park et al., (2006) found are the main determinants of the environmental
that impulsive buyers are consumers with hedo- response condition. Variations like the music in
nistic characteristics and diligently follow fa- the background and the shops location encour-
shion trends; they gain pleasure and happiness age the consumers to spend more time, and to
from finding the products they want. Kaur & buy something (Kaur & Singh, 2007). It was
Singh (2007) found that teenagers, when they also proposed by Xu (2007) that the shops’ envi-
shopped, got a pleasurable and sensoric stimula- ronment influences the consumers emotional
tion that influenced their impulse buying. Silvera condition and then pushes them into spontaneous
et al., (2008) stated that impulsive buying was buying behavior in the shop. Rook & Hoch
influenced by the consumers’ positive emotions. (1985) added that impulse buying is started by
the consumers’ sensations and perceptions being
1. External Environment
pushed by external stimuli, and then followed by
Muruganantham & Bhakat (2013) explained the sudden urge to buy. The emotional feeling
the external factor of impulsive buying is the occurs so the promotion will be easily remem-
84 Journal of Indonesian Economy and Business January

bered until they buy the products. Impulsive Verplanken et al., (2005) stated impulsive
buyers are the consumers who want to buy buying is to satisfy oneself, because of the stress
something, but then decide spontaneously what of one’s job, and to improve one’s working spi-
they want and will buy. (Lafferty & Goldsmith, rit. Theoretically, the spontaneous buying is
2002). done because the consumers are stressed by their
job, but it can also be because of a happy heart.
2. Internal Environment Sneath et al., (2009) stated that impulsive buying
The internal environment factors that influ- is related with the consumers who have a hedo-
ence impulsive buying are the consumers who nistic character, individuals with such a charac-
like shopping and finding variations and differ- ter tend to be materialistic. They also may have
ences in products, and tend to have a liking to much wealth and tend to buy items they do not
change brands (Hawkin et al., 2007). Consum- really need. Seath et al., (2009) stated that im-
ers’ finding variations in products was also pulsive buying can be induced in an individual
found by Sharma et al., (2010). With impulsive suffering from depression, in the hope that it will
buying behavior, an individual’s personality has restore his/her better mood. Verplanken &
an incredible impact, the individual’s personality Herbadi (2001) stated impulsive buying happens
characteristics are different to each other and the with individuals who want to run from feelings
tendency of their impulsive behavioral levels are of self-inferiority, the unhappy heart situation.
also different. Mathai & Haridas (2014), started
to try to explore the relationship between per- 3. Situational Environment and Products
sonal characteristics and impulsive buying beha- Variation
vior. Their finding was that one’s personality The impulsive buying phenomenon is not
influences the impulsive buying. Rook (1987) only seen in Indonesia, but in many developing
stated that impulsive buying is part of the life- countries. But impulsive buying in Indonesia has
style related with materialism, looking for sen- tended to be more prevalent compared with the
sations, and the recreational shopping aspect. other countries in Southeast Asia. But in the
Rook & Fisher (1995) mentioned the impulsive Asia-Pacific region, the indications of impulsive
buying concept is a character trait of someone buying were much higher; the research by
who gets involved in spontaneous buying sprees. Nelsen (2007) into modern retailers in Jakarta
The desire to buy clothing products can also showed that the impulse buying level had
be a variation of the spontaneous buying cha- reached 44% of the items bought by consumers
racteristic, compared with the daily needs pur- on working days. On Saturdays and Sundays, the
chases. But from Michael et al., (2010) buying amount increased to 61%. Apparently 85% of
without planning is the buying form with the shoppers in Indonesian retail outlets tended to
lowest involvement. Impulsive buyers are also buy something without any previous thought or
mentioned as the consumers who enjoy shopping planning. The variations between similar prod-
and lack self-control (Yoan & Faber, 2000). ucts on offer by the retailers tended to influence
Unplanned buying is an activity that causes the impulsive buying (Stern, 1962), meanwhile
money to be spent uncontrollably, and mainly on the products’ functional benefits also pushed the
items that are not really needed, but desired at impulsive buying need, as mentioned by
that instant in time (Hatane, 2005). Ruswanti’s Shiffman & Kanuk, (2010). Variations in such
finding (2014) stated that the consumers were products as clothes, books, and household
materialistic in their shopping habits for trendy equipment also influenced impulsive buying
clothes, while using a mall for their recreation according to Yu & Bastin, (2010). Impulsive
time with their family, and had a tendency for buyers also tend to find the different products’
spontaneous shopping. Shen & Khalifa (2012) variations (Sharma et al., 2010); sometimes con-
stated the consumers’ cognition had a relation- sumers tend to move from one brand to another,
ship with impulse buying. just as an experiment (Hawkin et al, 2007).
2016 Ruswanti 85

Impulsive buying intention can be influenced ness of the shopkeepers and the other consumers
by information from one person to another included in the social factor can influence the
(Harmancioglu et al., 2009). Meanwhile Han et impulse to buy (Mattila & Wirtz, 2008). Yu &
al., (1991) mentioned that, when they studied the Bastian (2010) found that other peoples praise,
impulse buying of clothes, if consumers think such as the sellers, or the shoppers’ friends can
the clothes suit them, they will buy them sponta- improve the chance of an impulse buy. The
neously. The functional benefits can also push shoppers’ friend who is asked for their opinion
the impulse buying phenomenon as mentioned of the clothes that may be bought influences the
by Shiffman & Kanuk (2010). But Craford & impulsive buying, but the family’s presence can
Melewer (2003) found candies (sweets) were the decrease the impulse to buy (Luo, 2005).
impulse buying products that sold the most, and The independent individual is often more
that such a level of growth in their sales had involved in impulse buying, it is often triggered
never happened in previous years. The impulse suddenly, there is the sudden intention to buy
buying products, such as candies, are conveni- something not originally planned for when going
ence products, the products bought daily by con- shopping (Verplanken et al., 2005). Impulsive
sumers without planning or thinking and without buying is influenced by various economic, per-
any effort to find them (Kotler & Keler, 2006). sonal, temporal, social, and even sociocultural
Han et al., (1991) stated that in studying the factors. It can happen variously, and not only
impulse buying of clothes, it was found that the happens between the different buyers, when con-
consumers bought without planning, their emo- sidering buying the same item, but also for the
tions tended to push the impulse buying of same shopper to buy the same item in a different
fashionable items. situation (Stern, 1962). Because of that, it was
often assumed that the personal and situational
4. Social Culture
factors significantly influenced impulse buying,
Consumers behavior is influenced by their as mentioned by Maruganantham & Bhakat,
motivation, personality, and socioculture; and (2013). For that reason, it is necessary for the
marketers try to understand the different con- practitioners to understand their consumers from
sumers’ needs, and understand their various the sociocultural side, so that the products
behavior toward their needs for the product. offered are suitable and match the consumers’
How the consumers buy and use the goods and needs. The cultural influence, the individualism
services, how they react toward the prices, pro- theory, and the collectivism theory give insights
motions, and the shops’ interiors needs to be into impulsive buying behavior (Kacen & Lee,
known by the retailers (Durmaz, 2014). The 2002). The cultural aspect can be of help to both
malls’ condition and various cultural trends the academics and practitioners in developing a
strength the influence on consumers to buy better understanding of the impulsive buying
impulsively (Vohs & Faber, 2007). The friendli- phenomenon.

80
70
60 Lottery Tickets
50 Point Reward
40 Branded Product
30
Gift Free
20
Discount Prices
10
0
Total Jakarta Bandung Surabaya
Table 1. Source: Nielsen (2007) Sales Promotion Activities
86 Journal of Indonesian Economy and Business January

Sales promotions in the world of modern tested by Estelami (2008). The prices in the
retailing are sought after by consumers, Nielsen market play a relevant role in the buying deci-
(2007) mentions that the majority of Indonesian sion; women understand more about jewelry
consumers like promotional activities that pro- prices than men, generally. The consumers’
vide direct benefits. This is evident from the price knowledge and gender influence the mar-
66% of respondents who chose a special promo- keting strategy of the retailers (Chant & Scheers,
tion that offered additional extra products. They 2011). The price knowledge is defined as the
are also accustomed to looking for a special consumers’ ability to buy products, and to re-
price at the outlet and are interested in buying a member the price they paid for certain products
product if there are free samples attached to the in their long-term memory. The products’ prices
product. Gifts and price discounts are suitable in the markets play a relevant sensitive role in
for consumers who pursue profit in the short the consumers’ decision making, influencing
term. Hendriani (2007), cited by Arifianti what, when, where, and how much the consum-
(2008), mentions in a survey conducted in the ers will pay for the products (Alba et al., 1999).
three major cities of Jakarta, Bandung and Sura- Studying the price knowledge is very rele-
baya (see Figure 1) that 76% of the buyers liked vant for the consumers and makes it easier for
to get a discount while 18% liked the direct them to pick bargains. Discounted price infor-
reward of a free gift. mation for a product, and the products’ variety
Nielsen (2007) mentions that in some devel- aid the easiness in finding an item at the right
oping countries, particularly in Indonesia, the price. Various products offered by the shops
apparently low prices of goods is one of the include snacks, shoes, work bags, work clothes,
three main reasons consumers stay loyal to the and household products. The result of research
modern retail outlets. That is why a massive dis- by Chant & Scheers, (2011) in South Africa
count war is ongoing in the modern retail outlets showed women knew more about the various
of Indonesia. Hypermart has been discounting products than men did. Women related posi-
prices by up to 31%. Though marginal retailers tively with the knowledge of prices, so women
generally range from 2 to 5% discounts. were better at pick the cherries rather than the
Setiawan,( 2007) cited by Arifianti, (2008). men. The other factor that influenced the bargain
hunting consumers were the shops that offered
BARGAIN HUNTING the complete range of the various products and
offered discounts of as much as 50%-70%. Some
Bargain hunters can be defined as the best
former researchers have tested the bargain
decision makers; when buying products they will
seeking influence toward the consumers prices
get the cheap quality products. The consumers’
knowledge, and the gender difference in choos-
knowledge of prices when selecting the discount
ing food supplies in the USA and Europe.
products can be influenced by several factors
related with the consumers’ characteristics, and Indonesian consumers, if shopping in retail
for the category of food products, it has been stores, usually swarm to find the most wanted


4% 2%
18%


price discount

free gift
76%
banded
others
Figure 1. Source: Nielsen (2007) Sales Promotion Activities
2016 Ruswanti 87

products, mainly the big discount items such as for the various industry products, the prices
clothes. Although sometimes the sizes are not all offered by the retailers on the various products
held in stock, and the style’s variations and or services and the retailers’ locations to make it
colours are also not in stock. But consumers feel easier for them to find a bargain. Most consum-
lucky if they can get the big discount products, ers were informed about the discounted products
especially if they are brand name products. The in several outlets, through marketing in the form
researcher’s interview results with some of the of promoting the list prices. The retailers knew
respondents showed that consumers were more the bargain hunters as the shoppers who liked to
interested in finding the products they felt they compare the prices in several shops and usually
wanted and needed, with the quality level and got a special prices. There have been very few
discount they desired. The price discounts in studies into cherry picking in Indonesia, so this
retail outlets were usually known by the con- study will test the cherry picking dimensions,
sumers, mainly the bargain hunters who some- related with impulse buying.
times liked to move from one shop to another to
get the goods they wanted Fox & Hooch, (2003). RESEARCH HYPOTHESIS
But, different to Levy & Weitz’s opinions
The prices of goods in the market plays a
(2004) whose findings showed that the bargain
relevant role in the decision making, influencing
seekers were the consumers who visited a shop
what is bought in the retail outlets, when it is
and only bought the big discount items; the other
bought, where, and how many are bought by the
factor that influenced the bargain hunters was
consumers (Alba et al., 1999). It is important for
they enjoyed shopping in their favorite shops.
the retailers to understand the bargain hunters’
Crocer (2005) found that bargain hunters behavior, and it can be useful to arrange a mar-
were described as the sellers and the buyers; a keting strategy for them, to obtain a bigger mar-
seller could be seen as the selective person ket share which in turn leads to a bigger return
toward the consumers’ profiles that they chose on investment. A retail management strategy is
as the market targets. On the buyers’ side, the useful in achieving their marketing purposes.
consumers shopped selectively toward the spe- The goal of a company’s marketing strategy is to
cially priced products. Not all the shoppers in provide a strong base for the developed tactical
retail outlets are hunting bargains. They are the plans, which allow the company to carry out its
buyers who are sensitive toward prices, and tend plans effectively and efficiently. Lavy & Weitz
to delay buying until they can find a cheaper (2004) stated that the bargain hunters are the
offering, but still with the variety they look for. consumers who visit a shop and only buy the big
It was found that there was a significant relation- discounted products.
ship between loyalty and moving from one shop
Impulsive buying is defined as the consum-
to another, as the bargain hunters do. Halbritter
ers’ characteristic of deciding to indulge in
& Carter (2005) proposed they actually did two
spontaneous shopping. The consumers’ characte-
activities. Firstly, they shopped in the retail out-
ristic variated in their tendency to have a sponta-
lets every week, where they got the best prices.
neous buying impulse (Johnes et al., 2003). Con-
Sometimes the retailers competed in pro- sumers who tend to buy impulsively are very
moting the same products with different prices. much in demand by the retailers, because their
The changes every week increased the chances unplanned shopping sprees can increase the
of the bargain hunters getting a good deal, com- retailers’ profits. It can be stimulated by unex-
pared with the loyal consumers who shopped in pected buying ideas, the wanted products’ vari-
only one shop. The bargain hunters showed the ance situation; they are also dominated by their
excesses in consumers’ behavior when buying emotion toward products to satisfy themselves or
products; it was important that they be known by their egos. But the consumers with the greatest
the retail managers when planning the marketing tendencies to impulse buy do not always respond
strategy. Consumers got their price information to every stimuli, because of various factors that
88 Journal of Indonesian Economy and Business January

may limit them, such as their economic condi- the impulsive buyers experienced a momentary
tion or time pressures, that can obstruct their desire, which was strong and firm, after seeing/
desire to indulge in spontaneous buying. feeling the shops’ stimulation. Actually consum-
Foroughi et al., (2011) found that the consumers ers were interested in buying the products
who tended to buy spontaneously also enjoyed because of the big discounts offered (Ruswanti,
shopping. 2013). Rook & Gardner (1993) stated that im-
Theoretically the impulsive buying trigger pulsive buying is defined as unplanned behavior,
comes from a sales promotion, as stated by involving fast decision making, with the tenden-
Muruganantham & Bhakat, (2013). These could cy to buy the products they suddenly want.
be advertisements and special or discounted The shopping culture is the habit of consum-
prices offered by the shops. Meanwhile the in- ers, who may have low, medium, or high in-
ternal factor is influenced by the consumers comes. They became hedonistic, mainly because
themselves, such as the will to buy sponta- of their need for the clothes, bags, and shoes that
neously. Those seeking bargains are the con- are currently in vogue. Using the available dis-
sumers who like to move from one shop to counts to fulfil their desire to own these cheap
another to get their cheap quality goods (Fox & brand name products is known as seeking bar-
Hooch, 2003), and who enjoy shopping. Rela- gains, meanwhile the unplanned impulsive buy-
tedness is that the cherries pickers in finding the ing has a strong relationship with happy and
big discount products sometimes also buy spon- satisfied consumers if they indulge themselves
taneously, such as buying the clothes if liking by moving from one shop to another or by
the offered clothes, although it is unplanned moving from one brand to another to shop for
(Han et al., 1991). Impulsive buying behavior the cheap quality products. Meanwhile accord-
has received a great deal of atttention from mar- ing to Hawkins et al., (2007) the buyers who
keting experts, but until today it has not been look for variation and the consumers who move
tested much in relation to bargain hunting. For from one brand to another are also called im-
that reason, it needs to be reviewed further for its pulse buyers. There is a clear relationship
external and internal factors’ influence toward between impulsive buying and bargain hunting,
seeking a bargain. The research hypotheses that consumers who look for products’ variation and
are proposed are as follows: move from one brand to another are called
impulsive buyers. Han et al., (1991) stated that,
H1: There is a significant positive influence of
when studying impulsive buying from the
the external environment toward bargain
clothing aspect, if consumers liked it, they buy
hunting
it, spontaneously. For that reason, there needs to
H2: There is a significant positive influence of be further testing of the impulsive buying influ-
the internal environment toward bargain ence and bargain seeking. The proposed hypo-
hunting theses are as follows:
Ruswanti’s findings (2013) stated that bar- H 3: There is a situationally significant positive
gain hunting also has the impulsive buying cha- influence and product variety toward bar-
racteristic, such as if someone suddenly sees big gain seeking
discounts, say between 50 to 70%, on clothes in
H 4: There is a socioculturally significant posi-
a shop, they will spontaneously buy them if they
tive influence toward bargain seeking
like them. Meanwhile the bargain seekers are the
consumers who always get the cheap quality The main purposes of promotions are to at-
goods; the situational influence and big dis- tract the consumers’ attention, build a positive
counts are the causes of bargain hunting and attitude, and to create an emotional reaction to
spontaneous buying. The retailers gave the big make the customers attracted to buy the products
discounts on special days, for example during offered by the retailers. Sales promotions influ-
Lebaran and at New Year. Rook (1987) found ence bargain hunting. Buyers can be involved
2016 Ruswanti 89

with the more extreme hunting in which moving that promotions influenced the extrovert con-
from one shop to another can be done by each sumers; they were more likely to buy impul-
shopper. Consumers can divide the goods in sively. Graa et al., (2014) stated that impulsive
several shops each week to gain advantages from buying was defined as having no plan to buy
the transactions offered by different shops. anything before entering the shop, but the impact
Gauri, Sudhira & Talukdar (2005) proposed that created by the promotional sale stimulated the
bargain hunting is divided into three parts. First, desire. The external factor of impulsive buying
those who picked the cherries by following the refers to the marketing signs or stimulation
prices from time to time, which shows that con- placed and controlled by the marketers in the
sumers were loyal toward the shops, but sensi- effort to attract consumers to buy (Youn &
tive toward prices. Furthermore, they delayed Faber, 2000). Consumers can experience the im-
their shopping from time to time until the shops pulse to buy products when facing the visual
gave the big discounts. signs such as promotional discounts (Dholakia,
Second, consumers can pick the cherries 2000). Because the impulsive buying behavior is
through following the shop’s prices from one often pushed by a stimulus, the exposedness
shop to another, which shows that consumers are increases toward the certain external stimulation
still shopping, but, with the price considerations and increases the impulsive buying possibility.
they are shopping in different shops. Third, the
bargain hunting consumers can be the customers RESEARCH METHODS
who are shopping by moving from one shop to The research method used is the causal
another at different times. Selvera & Marreiras research method that tests the influence between
(2014) stated that impulsive buying happens if variables. The independent variable is impulse
the shoppers decide to buy certain things be- buying and the dependent variable is bargain
cause of the special prizes, the discounts on seeking. The causal research method studies how
offer, coupons, etc. Impulsive buying happens in far a variation in one variable, relates with the
the first five minutes of shopping and its proba- variation in the other variable. It is based on the
bility decreases with time (Brocas & Carillo, corelation coefficient, in which variables are
2014). Four impulsive buying dimensions con- measured, but not manipulated (Hair et al.,
sist of external environment, internal environ- 1998). This research consists of the independent
ment, situation and products’ variation, soci- variable including the external environment,
oculture. Those are assumed to influence bargain internal environment, situation and products va-
hunting. The researcher has tried to illustrate this riety, and the socioculture factors. Meanwhile
in the research model below. dependent variable is the tendency to search for
good deals such as liking big discount prices to
External
environment H1 buy the good cheap quality products, and the
information obtained from the shops, such as to
Impulse Buying

Internal H2 move from one shop to another, following the


environment
H3 Cherry Pick prices from time to time, delaying shopping until
Situation and there are discounts.
variety of
product H4
1. Population and Research Samples
Social and The population amount in this research is
cultural
unknown, but the respondents in this research
Figure 2. Research Model are the respondents who frequently shop. The
chosen items to shop for were the big discounted
Mathai & Haridas (2014) mentioned that the
goods, the discounts must be between 50%-70%.
discounted prices of products induced impulsive
Both men and women liked shopping in a mall
buying and the shops’ fragrance influenced im-
in Jakarta. They were housewives and university
pulsive buying. Chen & Lee (2013) mentioned
90 Journal of Indonesian Economy and Business January

students with the respondents’ characteristics as disagree, 2 = disagree, 3 = agree slightly, 4 =


follows: the respondents’ ages were between 17- agree and 5 = strongly agree. The sampling
50 years old, who were living in Jakarta. They technique was a purposive sampling of those
were happy to buy and they tended to have pre- respondents who liked to buy spontaneously and
viously bought impulsively because of the influ- at discount prices. The malls were chosen based
ence of a sales promotion. The research samples on the comfort and the broad rooms to make res-
were as many as 200 respondents. This number pondents free spreadth.
of 200 respondents was suitable as a research The samples measure was 200 (Hair et al.,
sample, based on Hair et al., (1998) but the data 1998), but only 197 data returns could be ana-
that could be tested came from 197 respondents, lyzed, as three of respondents did not complete
because three questionnaires was not filled in the questionnaire. Beside the questionnaire, there
completely. were interviews with 30 of the respondents to
confirm the impulsive buying and bargain seek-
2. The Research Variables Measurement
ing theories; the analysis tool was the SPSS
The research indicator of the impulsive series 19. This research was carried out only on
buying variable was adopted from Muruganan- weekdays, during the mornings and evenings, so
tham & Bhakat’s finding, (2013). Impulsive time differences would not influence the re-
buying consists of 34 indicators arranged on four search results. At the weekend consumers
dimensions but fixed with the malls’ condition in usually did the family’s shopping; filling in the
Jakarta. The external environment factor has 8 questionnaire would have disturbed them. The
indicators, the internal environment factor 5 in- samples consisted of 96 women and 101 men.
dicators, the situational environment factor and The respondents’ ages were between 17-50 years
products’ variety factor 6 indicators and socio old, the respondents incomes were less than 3
and culture environment factor 5 indicators, bar- million rupiahs, for 83 of them, above 5 million
gain hunting 10 indicators, adopted from rupiahs for 64 of them, and above 10 million
Ruswanti (2013). A survey was used to test all rupiahs for 50 persons. Their education level
the hypotheses, done through the respondents was either that of a university graduate or they
who tended to buy spontaneously and tended to were still studying.
like the discount prices when shopping in retail
Before the data was analyzed, its validity and
outlets. The reasons for using this survey method
reliability needed to be tested; the research
are that the data can be used to test several
item’s validity used a factor analysis. Factor
hypotheses and can measure the respondents
analysis can reveal the disguised characteristics
behavior.
owned by each observation unit of a group of
This research population was the consumers dimensions. The external factor dimension, from
who were shopping in retail outlets and liked the the analysis result, the value of Kaiser-Meyer-
discount products, and were looking for dis- Olkin Measure of Sampling Adequacy received a
counted prices being offered, as much as 50%- value of 0.612 in the KMO box and Bartlet's
70% off the regular prices, and had bought test.This result shows that this instrument was
spontaneously at least once before. The next valid because the KMO value was above 0.5.
stage was qualifying them and then interviewing Besides, Bartlett's test value showed the value of
them. For consumers who were willing to com- 78.089, with a significance value of 0.000, so it
plete the questionnaire, the questionnaire forms can be concluded that this instrument has ful-
were distributed and after filling them in, prizes filled the validity requirements. Furthermore, the
were given to them as a reward for their time. correlation result of each factor is high (>0.5).
The research design used a survey, the research from the analysis testing result, it is known that
location was in the retail area of Central Jakarta. the external factor value consists of 0.714 (EKT
The scale used was the interval scale with a 1), 0.575 (EKT 2), 0.615 (EKT 3), 0.611 (EKT
Likert scale of 1 until 5. Number 1 = strongly 4), 0.542 (EKT 5), 0.701 (EKT 6), 0.694 (EKT
2016 Ruswanti 91

7), and 0.576 (EKT 8). So based on the factor (>0.5). from the analysis testing result, it is
validity testing result, it is concluded that all the known that the correlation value of each soci-
factors are valid as the framer of the external oculture factor consists of: 0.640 (SOC.1), 0.583
factor variable. (SOC.2), 0.634 (SOC.3), 0.617 (SOC.4), and
The internal factor dimension, from the 0.628 (SOC.5). So based on the result of factor
analysis result for the value of Kaiser-Meyer- validity testing, it can be concluded that all the
Olkin Measure of Sampling Adequacy has a factors are valid as the framer of the social factor
value of 0.711 in the KMO box and Bartlet's test. variable.
This result shows that this instrument is valid Next, the correlation result of each factor is
because its KMO value is above 0.5. Besides, also high (>0.5). From the analysis testing result,
Bartlett's test value is 114.771 with a signific- it is known that the correlation value of each
ance of 0.000; it can be concluded that this bargain seeking factor consists of: 0.904 (CP.1),
instrument is valid. Furthermore, the correlation 0.797 (CP.2), 0.874 (CP.3), 0.854 (CP.4), 0.813
result of each factor is also high (>0.5). from the (CP.5), 0.771 (CP.6), 0.856 (CP.7), 0.682
analysis testing result, it is known that the cor- (CP.8), 0.738 (CP.9), and 0.767 (CP.10). So
relation value of each internal factor consists of: based on the result of the factor validity testing,
0.704 (INT.1), 0.717 (INT.2), 0.670 (INT.3), it can be concluded that all factors are valid as
0.725 (INT.4), and 0.721 (INT.5). So based on the framer of bargain seeking factor variable.
the result of the factor validity testing, it can be From the analysis result, Kaiser-Meyer-Olkin
concluded that all the factors are valid as the Measure of Sampling Adequacy’s value was
framer of the internal factor variable. 0.814 in the KMO box and Bartlet's test. This
The situational factor dimension, from the result shows that this instrument is valid because
analysis result of the Kaiser-Meyer-Olkin Meas- the KMO value is above 0.5. Besides, Bartlett's
ure of Sampling Adequacy, has a value of 0.778 test value is 613.662 with a significance value of
in the KMO box and Bartlet's test. This result 0.000, so it can be concluded that this instrument
shows that this instrument is valid because the has fulfilled the validity requirements.
KMO value is above 0.5. Besides, Bartlett's test
value is 305.101with a significance value of RESULTS AND DISCUSSION
0.000, so it can be concluded that this instrument After the data were analyzed using the
is valid. Furthermore, the correlation result of regression analysis, the analysis result shows
each factor is also high (>0.5). From the analysis that the five dimensions of impulsive buying that
testing result, it is known that the correlation consist of the external factor, the internal envi-
value of each situational factor and product’s ronment factor, situational and products varie-
variety consists of: 0.826 (SIT.1), 0.835 (SIT.2), ties, and the sociocultural influences positively
0.866 (SIT.3), 0.719 (SIT.4), 0.729 (SIT.5), and and significantly influence the bargain hunting
0.879 (SIT.6). So based on the result of the fac- (see Table 2) below.
tor validity testing, it can be concluded that all
From simple regression calculations, Table 2
the factors are valid as the framer of the situa-
shows that the dimensions of impulse buying
tional factor variable.
consists of external environmental factors, inter-
Social factor dimension, from the analysis nal environmental factors, the situational envi-
result Kaiser-Meyer-Olkin Measure of Sampling ronment and the variety of products, and the
Adequacy has a value of 0.627 in the KMO box sociocultural environment, and all influence the
and Bartlet's test. This result shows that this in- bargain seeking. Internal environmental factors
strument is valid because its KMO value is and the sociocultural environmental factors have
above 0.5. Besides, Bartlett's test value is 89.546 a significant influence, while the external fac-
with a significance value of 0.000, so it can be tors, the situational factors and the range of pro-
concluded that this instrument is valid. Further- ducts also have a significant positive effect, and
more, the correlation result of each factor is high can be described as follows.
92 Journal of Indonesian Economy and Business January

Table 2. Regression Analysis Results


Standarized
Unstandarized coefficient
Impulse Buying coefficient t Sig
B Std. Error Beta
(Constant) 3.282 0.280 0.153 11.734 0.000
EXTERNAL 0.183 0.083 2.211 0.028
(Constant) 2.675 0.287 0.349 11.272 0.000
INTERNAL 0.320 0.062 5.203 0.000
(Constant) 3.319 0.208 0.198 15.960 0.000
SITUATIONAL 0.166 0.059 2.815 0.005
(Constant) 2.194 0.262 8.381 0.000
SOCIOCULT 0.481 0.073 0.425 6.556 0.000
Dependent Variable: Cherry Picking

1. The First Hypothesis shopkeepers were very helpful in choosing


This shows that the external environment products and had the impact of motivating the
dimension of impulsive buying influences the consumers trust in choosing the products they
bargain hunting positively and significantly, as wanted. Consumers could experience the desire
shown by the test results value of 0.028, which is for a sudden, impulse buy when facing visual
fewer than 0.05. This is understood to mean that signs such as promotional incentives, Dholakia,
the voice promotion in a shop, the shops’ organi- (2000), so it was proved that the bargain hunting
sation, smells, display presentations, and the consumers were also shopping because they
shopkeepers’ behavior influence bargain seeking were influenced by the discounts on offer.
behavior, such as a discount offering 70 % off
2. The Second Hypothesis
listed prices, various discounted products, dis-
count information. The voice promotion from This shows that the internal environment has
the shop influences impulsive buying. This is in a significant influence, with a value of 0.000,
accordance with Verplanken et al., (2005), but in which is smaller than 0.05. From this result, it
contrast with Mathai & Haridas’s finding (2014) can be interpreted that work stress, work spirit,
that in-store promotion does not influence im- today’s lifestyle, buying the branded clothes and
pulse buying. Order, display presentations, the the different clothing brands influence bargain
shops’ smell and the shopkeepers’ behavior hunting. In accordance with Sherma et al.,
influence the bargain seeking. It supports the (2010); Hwkin et al., (2007); Rook (1987);
finding of Hoyer & Macinner, (1999) that order, Chang et al., (2011) who stated that the work
display presentations, shops’ smell, and the spirit improvement, work stress, lifestyle, brand-
shopkeepers’ behavior influence impulsive ed clothes, and clothes’ modes influence impul-
buying. sive buying. Spontaneous buying can be done by
consumers for reasons such as (1) consumers
Bargain hunters like to shop in malls with
need the products, but have not found them yet
either the scent of jasmine or roses, and neat tidy
(2) consumers do not need the products but are
shops that make it easier for consumers to see
attracted to buy the discounted products (3)
the big discounts on offer. The display presenta-
consumers need the products and the products
tions attracts the consumers’ interest and they
have a big discount. The practitioners of course
tend to choose the products in the display. The
will make a different strategy if they have the
finding of Tauber, with Muruganantham &
consumers’ criteria. The internal environment
Bhakat, (2013), that the colour of the clothes, the
tends to make choices because of the conside-
clothes’ mode displayed in the shops’ windows
ration to buy good cheap quality products;
influences the impulse buying. The friendly
2016 Ruswanti 93

instead of the consideration, consumers also and the time available motivated impulsive
have the prices’ knowledge. buying.
Meanwhile Chang et al., (2011) stated con- When shopping in a mall, influences such as
sumers who had a positive emotional response the mall’s location, the available shopping time,
toward the shops’ environment, were more likely and shopping habits drove impulsive buying
to buy spontaneously. The materialistic lifestyle (Shapiro, 1992). Park et al., (2006) found the
looks for sensations and makes shopping in a fashion motivated impulsive buying such as lik-
mall a recreational tool Rook (1987) and ing a certain style, the newest lines of clothes,
Ruswanti, (2014). Levy & Weitz (2004); in their and the clothes’ brands. Meanwhile according to
findings show that the bargain hunters visited a Hawkins et al., (2007), the buyers who looked
shop and only bought the goods on offer with for different alternatives became the main reason
big discounts; the other factor that influenced the to change brands; they were called impulsive
bargain hunters is that they enjoyed shopping in buyers. The relation between impulsive buying
their favourite shops. Colly & Burges (2003) and bargain hunters can be described as follows,
stated consumers who bought all kinds of prod- consumers who look for the products’ variations
ucts reasoned they really needed the products, so and change brands are called impulse buyers.
as to ease their depression, to express their iden- Bargain hunters are the consumers who get the
tity or to have fun. It was found that the sales’ cheap quality products and look for the products’
significance through the impulsive buying variations. Both groups were shopping situation-
showed that impulsive buying was the key sub- ally and looking for various products, and were
ject for retailers and producers. So, consumers interested in shopping because of the discounted
who enjoyed shopping in malls, instead of the prices.
bargain hunters were also impulsive buyers.
4. The Fourth Hypothesis
3. The Third Hypothesis This shows that the sociocultural factors in-
This shows that the situational factor and the fluence is positive and significant, showing a
products’ variety influence positively and sig- value of 0.000 toward bargain hunting. This
nificantly the bargain hunting, with values equal result can be interpreted that the sociocultural
to 0.005, which is less than 0.05. This reveals dimension consists of the urgent needs, shop-
that there is an influence from the situational and keepers’ friendliness, having a shopping partner,
products’ variety on impulsive buying toward having a monthly wage, shopping for clothes to
the situational dimension and the products’ va- support carrier, and the act of engaging socially
riety, that are positive and significant toward influences bargain hunting. It supports the
bargain hunting. It was seen that consumers had statements of Yu & Bastin (2010); Luo (2005);
a limited time to shop, the existence of the trend Verplaken et al., (2005). They stated the shop-
mode offering, but remembered the benefits of keepers’ friendliness, having a shopping partner,
the products they had bought previously, and the having ones own money, and the existence of
existence of information from close friends, urgent needs all triggerred the occurence of
certain clothes tended to push bargain hunting impulsive buying. Impulse buying tended to be
behavior. This result can be interpreted that done by people with incomes above five million
promotion by one person to another, the prod- rupiahs and who were influenced by the
ucts’ benefits and variations and the time availa- interesting discounts, the variety of discounted
ble all influence bargain seeking behaviour.The products on offer, and information about the
findings of Harmancioglu et al., (2009); Stern discount prices’. There was a tendency for
(1962); Han et al., (1991) explained that the consumers to buy impulsively when they were
promotion from one person to another, shopping hedonistic and enjoyed shopping Dittmar et al.,
according to the perceived benefits, the availa- (1995).
bility of variations in the products being offered,
94 Journal of Indonesian Economy and Business January

The survey by Nielsen, (2007) showed that good quality clothes would be bought impul-
Indonesia was in the top position as the country sively, triggered only by the discount price. It is
with the highest consumption levels in society, proved that the dimensions of the external, inter-
compared to other countries. Gerald, (2013). For nal, situational and sociocultural environments
practitioners, bargain hunting has the ability to have significantly influenced bargain hunting;
encourage price competition among the retailers, these findings were supported by the findings of
so they try to have the cheapest offers with Muruganantham & Bhakat, (2013) as well as
weekly advertisements. The retail management Ruswanti (2013) but were opposed by the find-
strategy has the idea to attract bargain hunters to ings of Mathai & Haridas (2014).
get the bigger turnover. The retailers realized the Impulse buying is the attitude of shoping
bargain hunters liked the discounted products, without a plan, and results in the sudden prefe-
the burden of reduced prices was endured by the rence to buy something for one’s own self-satis-
retailers and producers. This study tries to ex- faction, meanwhile bargain hunters shopped to
plore the influence of the sociocultural dimen- obtain good quality articles at a low price. It is
sion; which significantly influences bargain concluded that there are some differences in the
seeking. The indicators are an urgent need, the advantages obtained when reviewed from the
shopkeepers’ friendliness, having a shopping point of impulse buying obtained by retailers and
partner, the complete offered clothes in mall, and producers, whereas the advantages of bargain
the consumers’ financial independence. They seeking were gained by consumers and retailers.
tend to motivate the bargain seeking behavior.
Results of the analysis of Table 3. above MANAGERIAL IMPLICATION
shows that internal factors and sociocultural
This study brings implications both theoreti-
factors, situational factors and the range of prod-
cal and practical; theoretically this study contri-
ucts and external factors. have a significant pos-
butes to the development of the consumers and
itive effect. Hypotheses 1,2,3 and 4 are all
their attitude theory, through the understanding
supported.
of impulse buying and bargain hunting. Theo-
retically goods are the articles that were bought
CONCLUSION with certain considerations for their price, qual-
Impulse buying in modern retailers in Jakarta ity, who the seller was and which brand it was;
can reach 44% of the total number of items however, in relation to the increasing income of
bought by consumers within a working day. people today, spontaneous purchasing can occur.
Meanwhile during weekends, the number of For practitioners, impulse buying and bargain
impulse purchases increased to 61%. In fact, hunting were triggered by the discounted prices
85% of the consumers who shopped in Indone- which means that impulse buying has estab-
sian malls or modern retail outlets were inclined lished a competitive price among the retailers
to buy a product without any previous plan. This and therefore they are attempting to develop the
was found by Nelson (2007). Theoretically, lowest competitive price by offering 70% dis-
according to Kotler & Keller, (2006), the goods counts. The strategy of retail management is
purchased without a plan were convenience aimed at urging the impulse buyers and bargain
goods but these findings show goods such as seekers to buy from their stores, so they can

se Buying and Bargain Seeking


Significant Hypothesis
0.028 Hypothesis 1 supported
0.000 Hypothesis 2 supported
0.005 Hypothesis 3 supported
0.000 Hypothesis 4 supported
2016 Ruswanti 95

increase their turn-over and profits. The retailers 3. For academics, convenience goods are theo-
realized that the bargain hunters and impulse retically not always the products which will
buyers prefer discounted products; the cost of be bought on a daily basis with no specific
bargain buying is carried by both the retailers consideration, but also be bought based on
and the producers. However, there is a tendency the level of the consumer’s income. Consum-
that the dimension of impulse buying has influ- ers with sufficient income will buy clothes
enced positively the bargain buying attitude. which can be chosen spontaneously without
This indicator, which was shown by the finding any consideration; however, for the consum-
that spontaneous buying was also triggered by ers with limited incomes, those products are
discounted prices has supported the findings of not always purchased, even if a great dis-
Ruswanti (2013), who stated that the need for count exists. When the consumers have cer-
clothes, shoes, shirts, office bags by consumers tain reasons such as they suffer from depres-
under 31 years old should be satisfied with high sion (low emotion atmosphere) or having
discount prices based on the adequate income of extra money, they will not apply self-control
most respondents. Discount offers have triggered in buying products spontaneously and are
impulse buying and bargain seeking, and the satisfied to be hunting a bargain.
strategy of retail marketing can combine those
targets of company marketing by using the data THE LIMITATION OF THE STUDY
resulting from the dimension of impulse buying
This study has limitations, namely the study
and bargain hunting.
was only conducted locally in Central Jakarta,
and it is only a study on the case of impulse
SUGGESTION buying and bargain hunting, so it cannot be
1. For consumers, particularly for impulse buy- generalized. The population and sample of res-
ers and bargain seekers, that they limit their pondents for the next study should be enlarged
monthly expenditure. Because when there is and the dimension of personality should be
no plan for expenditure, they can be affected included as should the dimension of impulse
by the big discounts offered. When seeing the buying, while the impact of post-spontaneous
big discounts, all articles will appear to be buying needs to be tested to see whether it is
good value. Buy the basic necessities which followed by satisfaction or regret.
have long shelf lives, or do not go out of
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