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EFFECT OF DEMOGRAPHIC FACTORS ON IMPULSE BUYING BEHAVIOUR IN ILORIN, NIGERIA

ABSTRACT

Impulse buying behaviour has received considerable attention from marketing practitioners and has been studied extensively from different dimensions. There is clear evidence that this behaviour is common in modern Shopping Malls. This study investigated effect of demographic factors on impulse buying behaviour in Ilorin, Nigeria. The study adopted cross-sectional survey approach. Questionnaire was used to survey 406 respondents who were selected using mall interception convenient sampling. Data were collected in Shoprite Shopping Mall, Ilorin. PLS-SEM path model was employed to process the data. Six hypotheses were formulated in null form.The result revealed that age, marital status, education, occupation and income have impact on consumers‟ impulse buying behaviour. In addition, the results revealed that gender is not directly linked to impulsive buying behaviour. The study concluded that demographic factors (age, marital status, education, occupation and income) have significant effect on impulse buying behaviour, whilegender hasno significant effect on impulse buying behaviour. The study therefore recommended that manager of Shoprite Shopping Mall, Ilorin shoulddevelop marketing strategies such as Visual Display and Promotional Signage which convey positive messages. These ensured continuous patronage of consumers and boost their spending on impulse buying.

TABLE OF CONTENTS

Title Page – – – – – – – – – i

Declaration – – – – – – – – – ii

Certification – – – – – – – – – iii

Dedication – – – – – – – – – iv

Acknowledgements – – – – – – – – – v

Abstract – – – – – – – – – vii

Table of contents – – – – – – – – – viii

List of Tables – – – – – – – – – xi

List of Figures – – – – – – – – – xii

List of Appendices – – – – – – – – – xiii

CHAPTER ONE: INTRODUCTION

1.1 Background to the study – – – – – – – 1

1.2 Statement of the problem – – – – – – – 3

1.3 Research questions – – – – – – – 4

1.4 Objectives of the study – – – – – – – 5

1.5 Hypotheses of the study – – – – – – – 5

1.6 Significance of the study – – – – – – – 6

1.7 Scope of the study – – – – – – – 7

1.8 Limitations of the Study – – – – – – – 7

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Introduction – – – – – – – – 8

2.2 Concept of Impulse Buying Behaviour – – – – – 8

2.3 Types of Impulse Buying Behaviour – – – – 11

2.4 Factors affecting impulse buying behaviour – – – 14

2.5 Demographic Factors and Impulse Buying Behaviour – – – 21

2.6 Review of Empirical Studies – – – – – 23

2.7 Theoretical Framework – – – – – – – 30

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction – – – – – – – – 32

3.2 Research Design – – – – – – – – 32

3.3 Population of the Study – – – – – – – 32

3.4 Sampling Technique and Sample Size – – – – – 33

3.5 Sources and Method of Data Collection – – – – – 34

3.6. Measurement of Variables – – – – – – 34

3.7 Validity and Reliability of Instrument – – – – – 34

3.8 Technique of Data Analysis – – – – – – 35

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Introduction – – – – – – – – 36

4.2 Response Rate – – – – – – – 36

4.3 Preliminary Analysis – – – – – – – 36

4.4 Demographic Statistics – – – – – – – 39

4.5 Descriptive Statistics of Variables of the Study – – – – 41

4.6 Assessing Model Fit – – – – – – – – 42

4.7 Bootstrapping Analysis – – – – – – – 44

4.8 Discussion of Findings – – – – – – – 48

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary – – – – – – – – – 53

5.2 Conclusions – – – – – – – – – 54

5.3 Recommendations – – – – – – – – 54

5.4 Contribution to Knowledge – – – – – – – 55

5.5 Suggestion for Further Study – – – – – – 56

References – – – – – – – – – – 57

Appendices – – – – – – – – – – 66

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Consumer buying behaviour demands that retail stores satisfy both rational and irrational buying motives of the market. Markets are replete with unplanned buying. In a competitive market environment, only those retailers who exceed the expectations of their customers in terms of providing an enjoyable shopping experience, which will drive them to make unplanned buying can survive and become successful (Banerjee & Saha, 2012). This trend has made retailers to have a wide range of several product lines in their store in order to respond to this customer buying behaviour. This can be evidenced from modern shopping malls such as Shoprite, selling different kind of products such as beverages, fruits, vegetables, fish, breads, food stuff, fabric, household items, handset and electronics. Products are being displayed in such a manner that, it spurs consumers to buy what they don‟t plan to purchase.

Impulse buying happens when a customer sees the product in a shop and the inner feelings strongly urge the customer to purchase and bring it into possession (Akram, Hui, Khan & Hashim, 2016). When buyers purchase a product or service without a plan, such instances of purchase are known as impulse buying. Retailers are delighted when a shopper feels a sudden impulse to buy a commodity while browsing at a Shopping Mall (Amos, Holmes & Keneson, 2013). Impulse buying contribute significant proportion to all purchases and that the purchases of new products are characterized by impulse purchasing than from planned expenditure (Kacen, Hess & Walker, 2012).

Both researchers and practitioners agreed that, impulse buying behaviour (IBB) is an antecedent of so many variables such as store environment, situational factors and product related factors (Tinne, 2010; Luniya & Verghese, 2015; Jamal & Lodhi, 2015), prominent among which include demographic factors. Demography factors include personal characteristics such as occupation, culture, race, family size, income level, education, location, ethnicity, marital status, gender and age. They have been identified as one of the important factors that influence consumers IBB (Bhuvaneswari & Krishnan, 2015).

Bashar, Ahmad and Wasi (2012) affirmed that demographic factors such as disposable income, age, educational qualification and gender have a strong significant influence on impulsive buying behaviour. Similarly, education exerts tremendous influence on impulse buying because higher positions in the society (occupation) are determined by consumers‟ educational qualification, which in turn affects their salary scale (income). This thereby boosts their ego to purchase products, which could be planned or unplanned for as a result of the purchasing power of money (Ekeng, Lifu & Asinya, 2012).

Tifferet and Herstein (2012) opined that gender influence consumers‟ impulse buying behaviour as women have higher levels of impulse buying in comparison to men, and since impulse buying operates through sensual cues, retailers can accentuate sensory cues in stores whose products tend to appeal to women. Consumers‟ marital status is another demographic factor that may likely influence impulse buying behaviour. While impulse buying phenomenon changes with the marital status of the consumer. However, impulse buying differs significantly between single and married shoppers/consumers, with the phenomenon more common among single shoppers (Dittmar, Beattie & Friese, 1995).

According to Bashir, Zeeshan, Sabbar, Hussain and Sarki (2013), consumers, who were thought to be rational are now considered to be driven by something other than rationality, most especially when making their purchasing in modern shopping malls. Even though most impulse decisions are made when consumers are inside Shopping Malls, the influence of consumers‟ characteristics on such decisions has not been adequately explored. Hence, this study seeks to examine the influence of demographic factors (age, gender, marital status, educational qualification, occupation and income level) on consumer impulse buying behaviour in Ilorin.

1.2. Statement of the Problem

About 80 percent of all purchasing decisions are made by the consumer at the point of purchase (Heilman, Nakamoto & Rao, 2002; Kacen et al., 2012) which makes impulse purchases account for a substantial volume of goods sold across a broad range of product categories (Weinberg & Gottwald, 1982; Cobb & Hoyer, 1986; Rook & Fisher, 1995; Zhou & Wong, 2003). Yet, there are many retail stores that have not explored this opportunity (Hughes, 2015). Business owners and traders at some of the major markets in Ilorin, Kwara State capital have complained over poor sales (Oladeinde, 2016). Larry (2016) opined that, it is important that businesses finds way to drive impulse buying in order to increase their sales and maximize profit. He further stated that whether people realize it or not, impulse buying represents a large percent of the profit for retail stores.

Most of the studies conducted to measure the influence of demographic factors on impulse buying behaviour were carried out in developed economies, such studies include the works of Bashar et al. (2012); Awan and Abbas (2015); Khan et al. (2016). The socio-cultural differences between developed and other developing countries limit the applicability of findings of these studies to developing countries as recommended by Li and Liu (2014) that, differences in economies is a significant gap in the literature. Therefore, there is need to replicate similar study here in Nigeria to see if the result will be beneficial.

Although, few of these studies have been conducted in Nigeria (Ekeng, Lifu & Asinya, 2012; Tom, 2015) on this phenomenon, the researchers did not consider all these demographic factors (age, income, gender, education, occupation and marital status) as an integrative approach in relation to Shopping Mall. On this basis, the study seeks to examine effect of demographic factors on impulse buying behaviour in Ilorin. This very dimension in the context of Shopping Mall has notably been neglected in developing countries like Nigeria and there is need to conduct this study in order to fill the gap in the literature.

1.3 Research Questions

The study intends to answer the following specific research questions:

i. Does consumers‟ age affect impulse buying behaviour in Shoprite shopping Mall, Ilorin?

ii. Does consumers‟ gender affect impulse buying behaviour in Shoprite shopping Mall, Ilorin?

iii. Does consumers‟ marital status affect impulse buying behaviour in Shoprite shopping Mall, Ilorin?

iv. Does consumers‟ educational qualification affect impulse buying behaviour in Shoprite shopping Mall, Ilorin?

v. Does consumers‟ occupation affect impulse buying behaviour in Shoprite shopping Mall, Ilorin?

vi. Does consumers‟ income level affect impulse buying behaviour in Shoprite shopping

Mall, Ilorin?

4

1.4 Objectives of the Study

The main objective of this study is to examine the effect of demographic factors on impulse buying behaviour in Ilorin. The specific objectives are to:

i. Find out how age affect impulse buying behaviour in Shoprite shopping Mall, Ilorin.

ii. Determine the effect of gender on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

iii. Examine how marital status affects impulse buying behaviour in Shoprite shopping Mall, Ilorin.

iv. Establish the effect of education on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

v. Find out how occupation affects impulse buying behaviour in Shoprite shopping Mall, Ilorin.

vi. Determine the effect of income on impulse buying behaviour Shoprite shopping Mall, Ilorin.

1.5 Hypotheses of the Study

The hypotheses of the study are formulated in null form:

Ho1: Consumers‟ age has no effect on impulse buying behaviour in Shoprite shopping Mall,

Ilorin.

Ho2: Consumers‟ gender has no effect on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

Ho3: Consumers‟ Marital status has no effect on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

Ho4: Consumers‟ educational qualification has no effect on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

Ho5: Consumers‟ occupation has no effect on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

Ho6: Consumers‟ income level has no effect on impulse buying behaviour in Shoprite shopping Mall, Ilorin.

1.6 Significance of the Study

This study will add to the scarcely available information in Nigeria on consumer impulsive buying behaviour. This will also form a strong basis for future researchers who will like to pursue a study in the area of impulse buying behaviour and also, to understand impulse buying from the consumer demographic perspective by providing empirical evidence from Nigeria context. This study thus bridge the gap in the literature by carry out this study during this period that business owners and retailers are complaining of poor sales, to determine which consumers‟ demographic factors affect their impulsive buying behaviour.

The findings of this study will benefit business owners and retailers in Nigeria considering that impulse buying contribute significantly to retail stores to increase their sales and maximize their profit. Organizations operating in a highly competitive business climate should take into consideration that profit maximization is crucial towards achieving stated aims and objectives, hence the outcome of this study will be of great benefit as it enables them to survive, become successful and gives return on investment to their shareholders, increase market share and remain in business.

Retail stores that applies the recommendation of this study, will be able to have a broad knowledge of consumers‟ traits that influence their IBB and this will be of great benefit in achieving business objectives (increasing sales and profit) and enable such organization to surprise and surpass its competitors.

1.7 Scope of the Study

This study focused on all customers patronizing Shoprite shopping Mall in Ilorin. The choice of customers of Shopping Malls in Ilorin as the respondents of this study is because it is only in Ilorin that one can find modern mega retail store in North Central States of the country with patronage from enormous customers from diverse demographic background. Ilorin is one of the most populated cities in North Central and Shopping Malls are expected to experience more customers‟ patronage and rapid development. The study carried out on a cross-sectional basis. The study focused on demographic factors (age, gender, marital status, educational qualification, occupation and income level) among other demographic factors such as religion, culture as well as numerous factors observed by previous studies that exert strong influence consumer impulse buying behaviour.

1.8 Limitations of the Study

The study limited to the consumers/shoppers of Shoprite shopping Mall, Ilorin as survey were executed in Ilorin. As a result of this, the applicability of the findings of this study may not be extended to other shopping Malls. Also, the results of this study may not apply to impulsive behaviour of consumers residing in other places.

Another limitation of this study is the use of a non-probability convenience sampling design and sample size, which limits the generalization of findings and imposes caution in drawing conclusions. The sample size of 406 respondents is too small compared to population of Ilorin and as a result, this study may not be proper representative of the target audience. The findings could be extrapolated if the number of respondents is increased.

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