Consumer Focus Affects Impulse Buying In -A pilot study

Chih-Chin Liang, Le Thi Hong* Graduate Institute of Business and Management National Formosa University Yunlin, Taiwan [email protected] [email protected]*

mainly focuses on the supermarkets, retail outlets or online ABSTRACT shopping of the western countries context, almost no similar Impulsive behavior can arise in any circumstances and research to this behavior at the night market. Every city and town in Taiwan have night market. With the total area of impulse buying is one of the acts which were and are still 2 happening daily even though consumers are aware of it or not. approximately 36,000 km only, but Taiwan possesses a large This common phenomenon has been a longstanding interest in by number of over 200 night markets which is a potential market market researchers but many questions regarding impulse of Taiwan [74], [8]. There exists a need to investigate more buying behavior remains unsolved. This study reviews extant about the impulse buying behavior in a non-western researches on impulsive behaviors and introduces a new context, especially for night markets instead of supermarkets, interpretation of impulse buying. Namely, the author will retail outlets or online shopping. highlight customer focus as a useful strategy which has ability to influence impulsive buying behavior at Taiwan night markets. Most of the consumers are not adequate aware of the The night market is a very special market, it has a unique factors which are able to affect their impulse buying decision. cultural feature and plays an important role in the Taiwan socio- And how to identify and control the impact of these factors on economic development. However, the understanding of impulsive impulse purchasing behavior is also the question that the buying behavior, as well as customer focus strategy in this marketers and businessman want to explore. Why so many market is very limited. The purpose of this study is to investigate people make impulse buying so frequently? Early researches the influence of "customer focus" on impulsive buying behavior have demonstrated impulse buying behavior is stimulated by in Taiwan night market context. This research is important to many factors such as shopping environment, personal traits, both marketing and management experts because it provides an situational factors or demographic factors [109], [23], [97], additional explanation of impulse buying and comprehension of [63], [65], [20], [22], [72] but none study has mentioned respondents' behavior, especially in terms of customer focus and customer-focus as a factor affect impulse buying behavior in their impact on such behavior in Taiwan night markets. Taiwan night market context. Customer focus is the ability of Therefore, in this pilot study, the authors evaluate the validity an organization to efficiently and effectively concentrate on the and reliability of the design of questionnaire. The analytical work that enhances the experiences of customers with products results show that the questionnaire should be proper for the and services [69]. Therefore, understanding the impact of further test. customer focus on impulse buying tendency is important for both consumers as well as business people. General impulsive Keywords: impulsive behavior, impulse buying, customer focus, purchase and night markets’ impulsive purchase in particular is night market an issue that needs to be studied more deeply. In this study, author want to address how customer focus can influence I. INTRODUCTION impulse buying tendency at Taiwan night markets. Impulsive buying behavior is a common phenomenon in Impulse buying was becoming increasingly common in daily life of consumers. Now shopping is not merely to obtain modern life and Taiwan night market is an ideal environment necessary daily merchandises, instead, it has become a leisure that many people easily to make impulsive buying. Through activity or express individual’s lifestyle [80], [24], or may the understanding of impulse buying behavior, enterprises, satisfy crucial psychological and social demands [79], [78]. especially business people at night markets can grasp a big Life is constantly changing and that is the reason why a lot of business opportunities. This research investigate the influence innovations and improvements in marketing and selling art was of "customer focus" on impulsive buying behavior in Taiwan born such as credit card, shopping online, telemarketing, 24- night market context. With above research background and hour convenience store, instant credit, etc. [65]. These tools motivation, this study aims to reach the following objectives: support customers shopping easier and more convenient than (1) Establishing the potential impact of customer focus on ever before. Impulse buying behavior has gained the attention impulsive buying behavior model, (2) Analyzing of the causes of many researchers for more than 60 years [59], [70], [34], of impulse buying behavior at Taiwan night markets, (3) [63]. Despite several studies on impulse buying behavior has Determining the potential impact of customer focus on started since the 1950s but the majority of these extant studies impulsive buying behavior at the night market, (4) According to the factors discussed in this study, offering some practical were listed as intended purchases prior to entering a store. solutions for merchants and enterprises. Numerous studies subsequently investigated the frequencies of unplanned “impulse” buying across various product categories

[70]; [59]; [34]; [37], and in different retail settings [59]. Impulse buying can be defined as unplanned, sudden, and II. LITERATURE REVIEW spontaneous impulse to buy, which lacks careful evaluation of product and purchase consequences [19]; [20]; [65]; [22]; [23]; A. Night Market [24]; [25]; [26]; [27]. First, confirm that you have the correct template for your Stern [63] showed the existence of a meaningful paper size. This template has been tailored for output on the A4 relation between the impulsive purchase and marketing’ paper size. “A night market is defined as a trading place during techniques. These techniques create one favorable environment evening and includes small business for a variety of cheaper for the impulsive purchase. Some more recent works showed products, cooked food and game playing [88]. Isak, Aziz, Amri that the variable of the sale atmosphere (sounds, views and supposed that a night market is a grouping of temporary aromas) are important stimulants that can produce the desire to outdoor stalls operated by petty traders where products are buy impulsively [77]; [91]; [92]. Some elements as music, light displayed for sales [81]. Yu [15] identified that a night market and the display can affect the process of decision of the was a place basically having cooked-food vendors, using consumer [37]. Rook [65] indicate that the sudden emergency pushcarts or stationed in stalls and running their businesses at to buy seems to be motivated by the visual confrontation with night. the product or by stimuli of the environment. In the same way, Main factors attracting people shop at the night markets the design of the retail outlet is able of to give the pleasure and were low prices, a variety of products and the convenient to stimulate the visitor of the store. Research on perceived neighborhood location [111], [71]. The reasons why night crowding postulates that spatial density is negatively correlated market become popular as the current and people spend their with satisfaction [94], [96] and number of purchases but human time at Taiwan night markets because it offers abundant density is positively correlated with impulse purchasing [97]. shopping option with reasonable price of products and services According to a number of studies [62]; [23]; [58]; [41] the in a friendly and relaxed atmosphere. Visiting the night market main characteristics of impulsive buying behavior are: customers be enjoyed delicious dishes, the wide choices of inclination to impulse buying, spontaneity in buying, freshly cooked food, fresh vegetables, and beverages. The satisfaction felt after unplanned purchase, and lack of shopping interactions and mingling of local residents from various ethnic list. This refers to the individual characteristics of the consumer. backgrounds could further strengthen community spirits and However, impulse buying is also investigated in terms of other solidarity. The atmosphere, the sight, the smell, the sound, and factors such as demographic, cultural, and situational ones [18]. the food were among the factors that contributed to repeat In another study, researcher claim that the impulse to buy is visitations [111]. Night market foods are more popular day by hedonically complex and may stimulate emotional conflict [65]. day because of their delicious taste, varieties and cheap price. In summary, the impulse buying behavior of the consumer The reason that is the majority of visitors go to night market is can be affected by many factors. Most of early researches on mostly for food [6]. Taiwan night markets have attracted a impulse buying behavior are usually carried out in the large number foreign visitors annually [15], [8], [10], [81]. supermarkets, retail outlets or on the internet and these studies In general, at a macro level, the night market’s have demonstrated impulse buying behavior is stimulated by contributions to the national economy could be assessed from many factors such as shopping environment, personal traits, two perspectives: Social impact assessment which looked into situational factors or demographic factors but none study has a new kind of the cultural value of the markets, and Economic mentioned customer-focus as a factor affect impulse buying impact assessment that examined the commercial value of the behavior in Taiwan night market context. And in this article the markets. From the social impact perspective, the night market author will highlight customer focus as a useful strategy which would be an avenue that brought people together which could has ability to influence impulsive buying behavior at Taiwan helped to promote goodwill among different ethnic groups; it night market. had help to change the image of the local authority from Most people are likely to buy on impulse, but different in ‘enforcement’ to ‘community-centered’. From an economic the degree, high-impulse, medium-impulse or low-impulse impact perspective, it could stimulate the economy by consumers. They vary in their impulsive purchase tendency providing convenient shopping alternative options for the [82]. Because many people can get better mood, feel happier, community, and it could help to revitalize areas and town and reduce stress of their lives from shopping and they even center. Additionally, it provided opportunities for the youth regarded it as one of the important leisure activities so they population to participate and gain experience in operating small often buy on impulse without thinking of consequences. So, businesses [81]. why people make impulse buying? First, Impulse buyers are more social, status-conscious, and image-concerned. The B. Impulse buying impulse buyer may buy as a way to look good in the eyes of Most early research defined impulse buying as an others. Second, impulse buyers tend to experience more “unplanned” purchase [46], [47]. This definition was typically anxiety and difficulty controlling their emotions, which may operationalized as the difference between a consumer’s total make it harder to resist emotional urges to impulsively spend purchases at the completion of a shopping trip, and those that money. Third, impulse buyers tend to experience less happiness, and so may buy as a way to improve their mood. Last, impulse buyers are less likely to consider the consequences of their spending; they just want to have it [76].

C. Customer focus Customer Focus is the ability of an organization to efficiently and effectively concentrate on the work that enhances the experiences of customers with products and services. Through their customer-focus efforts, companies can drive up the value that’s received by customers. This often means gaining a good understanding of the various customer segments, producing quality at acceptable costs, and delivering on all commitments. It can also mean knowing how to price Figure 2. Proposed Research Model and sell the right products and services to the right customers at the right time [69]. Source: Developed for this study Customer focus is a multi-dimensional construct in the management and marketing disciplines [67], [64], [61], [60]. Based on theory and research findings of previous studies Drucker [57] argued that customer focus should be the main in terms of impulse buying behavior and customer focus, an strategic aim of any organization and customer should be the integrated research model (show in Figure 2) has been main reason for the existence of the organization. Subsequently, proposed to study the impact of customer focus to impulse others have extended upon this core idea creating what is now purchase tendency at the night market. To explore how known as the marketing concept [56], [55] and a widespread customer focus affects impulsive buying tendency the belief that customer relationship activity is an essential part of following hypotheses are formulated: everyday management practice [54]. 1) H1 (a) - Gathering and understanding customer Literature review shows that there is no widely accepted requirements has a significant and directly effect on customer customer focus model. Different sub-constructs are used in focus at Taiwan night market. different contexts within management and marketing. The 2) H1 (b) - Collecting and utilizing customer information conceptual framework for this study was developed by amalgamating different uses to develop four reasonably distinct has a significant and directly effect on customer focus at sub-constructs that cover all uses discovered during the Taiwan night market. literature review. 3) H1 (c) - Receiving and utilizing customer feedback has a significant and directly effect on customer focus at Taiwan night market. 4) H1 (d) - Improving customer relationships has a significant and directly effect on customer focus at Taiwan night market. 5) H2 - The greater the implementation of customer focus, the greater the attitude toward night market impulse buying. 6) H3 - The greater the attitude toward night market impulse buying, the greater the impulse buying tendency.

B. Questionnaire design

In order to gather information and data for this study, a Figure 1. Conceptual framework questionnaire was designed with 63 questions. Contents of the questionnaire consists of 3 sections. The first section refer to general shopping behavior of the respondents, the second III. RESEARCH METHODOLOGY section includes dependent and independent variables which would be asked in the survey with multiple choice structured A. Research Framework and Hypotheses questions and mostly five-point Likert scale. Namely, the The research model which author offer will specify the respondents were offered a set of statements with which they customer focus components those are gathering and had to express the degree of their agreement and disagreement. understanding customer requirements (GUCR), collecting and The degrees are coded by figures from 1 to 5 (1 = “Strongly utilizing customer information (CUCI), receiving and utilizing agree, 2= “agree”, 3 = “neutral”, 4 = “disagree”, 5 = “strongly customer feedback (RUCF), improving customer relationships disagree”). The third section refer to respondent’s background (ICR) and the effect of these components on attitude and information such as gender, age, education, income, etc. The impulsive buying tendency of the consumers. The following detail of each measurement in the questionnaire was shown in research model is proposed: the table 1. The questionnaire was designed in English, and then it was translated into Chinese. Finally, the complete version of the questionnaire was distributed to target respondents. In order to ensure the acceptable reliability and the appropriateness of factor analysis of the measurement, the pre- test was conducted with Cronbach’s Alpha value and the scale of variables and their measurement items were identified in the literature reviews. With the purpose of this survey is to understand the effect of customer focus on attitude and impulsive buying tendency of the consumers, a pre-test was conduct in early November 2014. There were 105 respondents who are students and also are night markets shoppers in Taiwan involved in this pre-test.

C. Research Quality: Reliability and Validity "Reliability" and "validity" – two words that almost always Figure 3. Reliability versus Validity crop up when discussing and analyzing scientific research. So, why are they so special? Reliability and validity are both very important criteria for analyzing the quality of measures. The Source: Columbia.edu, qualitative method in social science e-lesson (2013) everyday use of these terms provides a sense of what they The figure above shows four possible situations. The first mean. Without reliability and validity it would be very difficult scenario shows a case where the hits are spread across the to decide which research should be trusted and which should be target and they are consistently missing the center. Measure in completely disregarded. this case is neither reliable nor valid. The second, shows hits Reliability is the extent to which an experiment, test, or any that are randomly spread across the target. They seldom hit the measuring procedure yields the same result on repeated trials. center of the target but, on average, they are getting the right Without the agreement of independent observers able to answer for the group (but not very well for individuals). In this replicate research procedures, or the ability to use research case, they get a valid group estimate, but they are inconsistent. tools and procedures that yield consistent measurements, In the third one, the target is hit consistently, but the center of researchers would be unable to satisfactorily draw conclusions, the target is missed. That is consistently and systematically formulate theories, or make claims about the generalizability of measuring the wrong value for all respondents. This measure is their research. In addition to its important role in research, reliable, but no valid (that is, it's consistent but wrong). Finally, reliability is critical for many parts of our lives [42]. they consistently hit the center of the target. The measure is both reliable and valid [42]. In science and statistics, validity is the extent to which a concept, conclusion or measurement is well-founded and Relationship between reliability and validity: Although they corresponds accurately to the real world. The validity of a are independent aspects, they are also somewhat related. A measurement tool is considered to be the degree to which the measurement procedure cannot be valid unless it’s reliable. tool measures what it claims to measure. Validity is important However, a measurement can be reliable without being valid. because it can help determine what types of tests to use, and In other words, if data are valid, they must be reliable. help to make sure researchers are using methods that are not However, if a data is reliable, that does not mean that it is valid. only ethical, and cost-effective, but also a method that truly Reliability is a necessary, but not sufficient, condition for measures the idea or construct in question [42]. validity [42]. In summary, Reliability is the degree to which an In all, reliability and validity allow us to gain firm and assessment tool produces stable and consistent results. accurate results in scientific research, as well as helping us to Validity refers to how well a test measures what it is purported generalize our findings to a wider population and, in turn, to measure. apply research results to the world to improve aspects of people’s lives.

IV. PRE-TEST RESULTS

A. Data examination and screening Author affiliations are not repeated each time for multiple authors of the same affiliation. Data preparation is an important step of data analysis. It includes data validation, editing and coding, data entry, error detection, and data tabulation. All of these work must be conducted before the beginning of the data analysis. Purpose of these work are to convert raw data collected from the survey into meaningful information. In this survey, questionnaires were distributed directly to Gathering and Understanding Customer Requirements respondents. For some reason, 5 respondents made some Item = GUCR missing information and error data. Therefore, their data was Cronbach’s Alpha = .832 CITC1 CITC2 Night market vendors try to removed. There was no monetary incentive involved or given GUCR understanding customer -.139 to the respondents. Their participation on the basis of voluntary. 9 expectations Information obtained from the questionnaires were coded and entered into SPSS version 18.0 for analysis.

TABLE II. THE CRONBACH’S ALPHA OF FACTORS 2 B. Respondents’ Profile Analysis Collecting and Utilizing Customer Information = CUCI There are total of 105 participants who response Item questionnaire in the pre-test of this survey. However, after Cronbach’s Alpha = .860 CITC1 CITC2 Night market vendors collect my checking sample selection criteria, because some missing CUCI1 .617 information via my needs. information and error data were found, so only 100 responses Night market vendors collect my are valid for data analysis. CUCI2 information via frequently and .669 close interaction with me. There are 34% males and 66% females of respondents Night market vendors usually CUCI3 .702 joined in the survey. Because of the limited time, this pre-test remember my traits. was conducted at the National Formosa University so all of the Night market vendors show care respondents are Taiwanese college students who are about 18- CUCI4 and concern about my .712 25 years of age, single and their income less than NT $20,000. information. Night market vendors maintain The number of participants would be increased and the scope CUCI5 regular contact with their .584 of survey would be expanded in the formal survey. customers. Night market vendors often CUCI6 .447 C. Reliability Analysis proactive to talk to me. Night market vendors ask about Cronbach’s Alpha coefficient is considered as the most CUCI7 my personal information .560 frequently used estimate of internal consistency reliability. The sometime. author utilized the SPSS version 18.0 to analyze the reliability Night market vendors use of the factors in this study. The Cronbach’s Alpha scores were CUCI8 customer information to segment .593 computed for all 7 variables (4 independent variables and 3 markets. dependent variables). Therein, Gathering and Understanding TABLE III. THE CRONBACH’S ALPHA OF FACTORS 3 Customer Requirements (GUCR), Collecting and Utilizing Customer Information (CUCI), Receiving and Utilizing Receiving and Utilizing Customer Feedback = RUCF Item Customer Feedback (RUCF), Improving Customer Cronbach’s Alpha = .890 CITC1 CITC2 Relationships (ICR) are independent variables; Customer focus Night market vendors give (CF), Attitude toward impulse buying (ATIB), Impulse buying RUCF1 individual attention to my .679 .674 tendency (IBT) are dependent variables. feedback. Night market vendors show care RUCF2 .678 .683 and concern while talking to me. Night market vendors always RUCF3 encourage my comments about .606 .622 TABLE I. THE CRONBACH’S ALPHA OF FACTORS 1 their products/services. Gathering and Understanding Customer Requirements Night market vendors often Item = GUCR RUCF4 quickly and directly resolving .645 .657 Cronbach’s Alpha = .832 CITC1 CITC2 my complaints. GUCR Night market vendors directly Night market vendors have made .446 .441 improvements on the basis of 1 ask about my needs. RUCF5 .759 .762 Night market vendors often feedback that they have received GUCR know what I like or dislike about .481 .475 from me. 2 their products/services. Night market vendors use GUCR Night market vendors are RUCF6 customer feedback to drive their .695 .692 .498 .522 3 available to requests. innovation. Night market vendors are Night market vendors always GUCR RUCF7 .729 .735 personal care of individual .467 .464 carefully listen to my feedback. 4 needs. Night market vendors often ask Night market vendors are well- RUCF8 my opinion of their .096 GUCR trained, competent and .607 .620 products/service. 5 experienced. GUCR Night market vendors make me TABLE IV. THE CRONBACH’S ALPHA OF FACTORS 4 .678 .696 6 feel comfortable and confident. GUCR Night market vendors offer Improving Customer Relationships = ICR .628 .629 Item 7 prompt service. Cronbach’s Alpha = .865 CITC1 CITC2 GUCR Night market vendors provide Night market vendors are .593 .616 ICR1 .577 .576 8 service as promised. friendly. Improving Customer Relationships = ICR Total Correlation (CITC) of 6 constructs with a total of 46 Item Cronbach’s Alpha = .865 CITC1 CITC2 questions. Any question which has CITC less than 0.4 will be Night market vendors regularly removed. In the first construct, “gathering and understanding ICR2 contact me as their key .316 customer requirements” (GUCR), the CITC of GUCR9 = - customer. 0.139 is less than 0.4. Therefore, this question was removed Night market vendors assist me from the questionnaire. Similarly, the third construct is ICR3 in understanding the buying .711 .701 process. “receiving and utilizing customer feedback” (RUCF) with Night market vendors assist me CITC of RUCF8= 0.096; Improving Customer Relationships ICR4 .676 .680 in product selection. (ICR) with CITC of ICR2= 0.316 were removed. As a result, Night market vendors customize ICR5 .703 .700 the Cronbach’s Alpha coefficient of each construct in this product to me. survey is ranging from the lowest of 0.765 (Impulse Buying Night market vendors always Tendency) to the highest of 0.890 (Receiving and Utilizing ICR6 directly share activities of their .563 .586 booths for me. Customer Feedback). This means that the reliability is good The overall satisfaction level of and acceptable. Therefore, the measurement scales of the ICR7 customers is high at the night .555 .555 constructs were been confirmed to be stable and consistent [43]. market. A higher percentage of new customers come to night market V. CONCLUSIONS ICR8 .421 435 because of referrals from existing customers. This study was conducted aiming to figure out four factors Night market vendors often are capable affecting customer focus and the effects of provides useful information customer focus on attitudes and impulse buying tendency. And ICR9 .551 .542 about their products/services to in the pilot study, the authors established the potential impact me. of customer focus on impulsive buying behavior model and Night market vendors are always ICR10 .638 .634 evaluated the reliability of the design of questionnaire. The willing to help customers. Cronbach’s Alpha coefficient of each construct in this survey is ranging from the lowest of 0.765 (Impulse Buying Tendency) to the highest of 0.890 (Receiving and Utilizing Customer TABLE V. THE CRONBACH’S ALPHA OF FACTORS 5 Feedback). The analytical results show that the reliability of all Attitude Toward Night Market Impulse Buying = ATIB variables in the questionnaire is good and acceptable. This Item Cronbach’s Alpha = .794 CITC1 CITC2 means that the measurement scales of the constructs were been It is fun to buy impulsively at confirmed to be stable and consistent. Therefore, this ATIB1 .529 the night market. questionnaire should be proper for the further test. It would be It is pleasant to buy impulsively ATIB2 .548 useful for the investigation which related to customer focus and at the night market. its influence on impulsive buying behavior. It is sensible to buy impulsively ATIB3 .548 at the night market. This pre-study designed a questionnaire and research It is beneficial to buy ATIB4 .587 framework for the further study in order to find the relationship impulsively at the night market. I like the feeling of impulse among all dimensions which include gathering and ATIB5 .671 buying at the night market. understanding Customer Requirements (GUCR), collecting and utilizing customer information (CUCI), receiving and utilizing customer feedback (RUCF), improving customer relationships TABLE VI. THE CRONBACH’S ALPHA OF FACTORS 6 (ICR) are independent variables; customer focus (CF), attitude toward impulse buying (ATIB), impulse buying tendency (IBT) Impulse Buying Tendency = IBT Item are dependent variables. Cronbach’s Alpha = .765 CITC1 CITC2 "Just do it" describes the way I IBT1 .542 buy things. I often buy things without IBT2 .583 REFERENCES thinking.

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