RESEARCH METHOD Effect Factors Analysis of Chinese Consumers' Impulse Buying Under the Background of Online Shopping LEI, XI 2018475030 XINYAN, LIU 2018475038 YUTONG, LI 2018475039 CHUNFEI, SONG 2018475029 Content 01 02 03 04 Introduction & Literature Review Questionnaire and variable explanation Empirical Analysis Conclusion and Limitations Introduction & Literature Review 1.1 What is Impulse Buying ☺ Impulse buying is a sudden and powerful urge by consumer to buy immediately (Beatty and Ferell 1998) and a spontaneous desire to buy without deliberate consideration of why and for what reason a person should have the product (Rook 1987). Number of online shoppers in millions 1.2 Current Situation of Chinese Online Shopping Number of online shoppers in China from 2008 to 2018 (in millions) 800 700 610.11 600 533.32 500 466.7 413.25 361.42 400 301.89 300 242.02 193.95 160.51 200 100 74 108 0 Resource: Statista 2019 1.3 Literature Review ⚫ Dholakia(2000) also found that women and men have great differences in online impulsive consumption. Compared with women, men have a significantly lower probability of impulsive consumption. ⚫ Disposable money is the promoter of the impulse buying behavior (Beatty and Ferrell, 1998), for it can increase the purchase rights of each individual. ⚫ The amount of time available for a consumer would determine whether he or she would buy impulsively. Due to the lack of time to browse the shopping site, consumers are likely to produce negative emotions, thus reducing their tendency towards impulse buying behavior (Beatty and Ferrell, 1998). ⚫ Other’s companion may increase the possibility of impulse buying behavior (Luo, 2004). Comments and persuasions from friends will also play a role in promoting or inhibiting impulse buying (Mai et al., 2003). ⚫ Hadjali (2012) and other researchers have proved that promotions and price falls will arouse their buying desire. Also, upgrading web designs, announcements and customer services, online operators can persuade consumers to buy more in an indirect way. ⚫ Verhagen and Dolen (2010) believed that a good communication between online sellers and buyers as well as efficient network navigation would stimulate their buying impulses behavior. 1.4 Factors That Influence Online Impulse Buying Emerging overdraft facility and installment Combination of social media & e-commerce 7 days no reason to 7 return and exchange 1.4 Factors That Influence Online Impulse Buying (1)Internal factors: such as age, gender, education background, monthly disposable income, occupation (2)External factors: Online shopping festival, Free to refund and exchange, Recommendations on social platform, Overdraft facility, Aimless browsing 8 Questionnaire and Variable Explanation 2.1 Questionnaire Distribution Time: from May 23 to May 29 Total: 225 copies Platform: Wechat 2.2 Variable Explanation--Demographic Factors 14% 24% Gender 46% Age 54% 62% Occupation MALE Education Background FEMALE 10% 21% Monthly Disposable Income 44% 25% ≤22 15% 22-35 ≥35 9% 16% 2% 21% 54% 8% Senior high school and below Junior college 13% Full-time Student Civil servant Corporate employee Others Self-employed 28% Bachelor Degree 34% ≤1500 1501-3000 3001-5000 5001-10000 Master Degree and above 11 ≥10000 2.3 Variable Explanation--External Stimulus Factors I am an impulsive buyer due to Online shopping festival Strongly disagree/ Disagree/ Undecided/ Agree/ Strongly agree I am an impulsive buyer due to Free to refund and exchange Strongly disagree/Disagree/Undecided/Agree/Strongly agree I am an impulsive buyer due to Recommendations on social platform Strongly disagree/Disagree/Undecided/Agree/Strongly agree I am an impulsive buyer due to Overdraft facility Strongly disagree/Disagree/Undecided/Agree/Strongly agree I am an impulsive buyer due to Aimless browsing Strongly disagree/Disagree/Undecided/Agree/Strongly agree ✓ I am an impulsive buyer Strongly disagree/Disagree/Undecided/Agree/Strongly agree 12 2.3 Variable Explanation--External Stimulus Factors “ Online shopping festival ” 15.11% Strongly Agree 25.78% Agree “ Online shopping festival ” 35.11% Undecided 14.22% 9.78% Disagree Strongly Disagree 0 10 20 30 40 50 60 70 80 90 “ Free to refund and exchange ” “ Free to refund and exchange ” 6.22% 9.33% Strongly Agree Agree Undecided Disagree Strongly Disagree 0 10 20 30 40 50 28% 28% 28.44%70 60 “ Recommendations on social platform ” “ Recommendations on social platform ” 9.33% Strongly Agree 15.11% Agree 22.22% 24.44% Undecided Disagree 13 Strongly Disagree 0 10 20 30 40 50 60 28.89% 70 2.3 Variable Explanation--External Stimulus Factors “ Overdraft facility ” 7.11% Strongly Agree “ Overdraft facility ” 13.78% 16% Agree Undecided 24% Disagree 39.11 Strongly Disagree 0 10 20 30 40 50 60 70 80 90 100 “ Aimless browsing ” 7.11% Strongly Agree “ Aimless browsing ” 14.22% Agree 26.22% 23.11% 29.33% Undecided Disagree Strongly Disagree 0 10 20 30 40 50 60 70 The Degree of online impluse buying The degree of online impluse buying 3.11% Strongly Agreed 12.45% Agreed 27.11% Undecided 41.78% Disagreed 14 15.56% Strongly Disagreed 0 10 20 30 40 50 60 70 80 90 100 Empirical Analysis T-Test ANOVA Multiple Regression and Correlation 4.1 T-Test: Two-Sample Assuming Equal Variances(Gender) F-Test Two-Sample for Variances(α=0.05) Mean Variance Observations df F P(F<=f) one-tail F Critical one-tail Male(1) 2.115384615 0.802091113 104 103 0.811819529 0.138666448 0.729075637 Female(2) 2.752066116 0.988016529 121 120 : : Two population variances are approximately equal Two population variances are not equal t-Test: Two-Sample Assuming Equal Variances(α=0.05) Mean Variance Observations Pooled Variance Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail Male(1) 2.115384615 0.802091113 104 0.902140664 0 223 -5.013063401 0.00000055 1.65171532 0.00000109 1.970658961 Female(2) 2.752066116 0.988016529 121 There is no significant difference : : between male and female There is a significant difference between male and female 4.1 T-Test: Two-Sample Assuming Equal Variances (Gender) F-Test Two-Sample for Variances(α=0.05) Mean Variance Observations df F P(F<=f) one-tail F Critical one-tail Male(1) 2.115384615 0.802091113 104 103 0.811819529 0.138666448 0.729075637 Female(2) 2.752066116 0.988016529 121 120 Conclusion: t-Test: Two-Sample Assuming Equal Variances(α=0.05) Mean Variance Observations Pooled Variance Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail Male(1) 2.115384615 0.802091113 104 0.902140664 0 223 -5.013063401 0.00000055 1.65171532 0.00000109 1.970658961 Female(2) 2.752066116 0.988016529 121 There is a significant difference between male and female with at least 95% confidence. Female is more likely than male to make impulse buying online. 4.2 Anova: Single Factor (Age) : : At least one of the treatment group means differs from the rest Anova: Single Factor(α=0.05) SUMMARY Groups Under 23(1) 23-35(2) Above 35(3) Count 55 139 31 ANOVA Source of Variation Between Groups Within Groups SS 22.1172068 201.7316821 Total 223.8488889 Sum 145 356 52 df 2 222 Average 2.6363636 2.5611511 1.6774194 Variance 1.2727273 0.8422479 0.5591398 MS 11.0586034 0.9087013 F 12.1696797 P-value F crit 0.0000097 3.0365237 224 Conclusion: We have at least 95% confidence to assume that there are significant differences in impulsive online shopping behavior at different ages, consumers under the age of 23 are more likely to be impulsive online, while those over the age of 35 are significantly less likely to behave like this. 4.2 Anova: Single Factor (Occupation) : : At least one of the treatment group means differs from the rest Anova: Single Factor(α=0.05) SUMMARY Groups Student(1) Civil servant(2) Company employee(3) Self-employed(4) Others(5) Count 99 28 56 19 23 ANOVA Source of Variation Between Groups Within Groups SS 6.3751452 217.4737436 Total 223.8488889 Sum 255 68 140 38 52 df 4 220 Average 2.5757576 2.4285714 2.5 2 2.2608696 Variance 1.1038961 1.2169312 0.9090909 0.5555556 0.7470356 MS 1.5937863 0.9885170 F 1.6123003 P-value 0.1721664 F crit 2.4126820 224 Conclusion: There not enough evidence to assume that there are significant differences in impulsive online shopping behavior at different occupations. 4.2 Anova: Single Factor (Education Background) : : At least one of the treatment group means differs from the rest Anova: Single Factor(α=0.05) SUMMARY Groups High School/ Under High School(1) Associate Degree(2) Bachelor's Degree(3) Master/PhD Degree(4) Count 20 36 122 47 Sum 46 84 297 126 Average 2.3 2.3333333 2.4344262 2.6808511 Variance 1.3789474 0.7428571 1.0411191 0.9176688 MS 1.1535710 0.9972316 F 1.1567735 ANOVA Source of Variation Between Groups Within Groups SS 3.4607131 220.3881758 Total 223.8488889 df 3 221 P-value 0.3271571 F crit 2.6454505 224 Conclusion: There not enough evidence to assume that there are significant differences in impulsive online shopping behavior at different education backgrounds. 4.2 Anova: Single Factor (Monthly Disposable Income) : : At least one of the treatment group means differs from the rest Anova: Single Factor(α=0.05) SUMMARY Groups Less than ¥1500(1) ¥1501-¥3000(2) ¥3001-¥5000(3) ¥5000-¥10000(4) More than ¥10000(5) Count Sum 46 77 64 33 5 ANOVA Source of Variation Between Groups Within Groups SS 10.0553001 213.7935888 Total 223.8488889 97 205 154 86 11 Average 2.1086957 2.6623377 2.40625 2.6060606 2.2 Variance 0.7657005 1.1213260 0.7847222 1.2462121 1.2 4 220 MS 2.5138250 0.9717890 F 2.5868012 df P-value 0.0378656 F crit 2.4126820 224 Conclusion: We have at least 95% confidence to assume that there are significant differences in impulsive online shopping behavior at different monthly disposable income, consumers with ¥1500-10000 are more likely to be impulsive online, while those with less than ¥1500 or more than ¥10000 are significantly less likely to behave like this. 3.3 The multiple regression model yො =0.141850778+0.292270664𝑥1 +0.132297341𝑥2 +0.260572118𝑥3 +0.067220161𝑥4 +0.100429441𝑥5 Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.871922891 0.760249527 0.754775772 0.495034139 225 Critical Value: F-test: F(0.05,5,219)=2.01 T-test: t(0.025,219)=1.972 ANOVA df Regression Residual Total 5 219 224 Coefficients SS MS 170.181012 34.03620239 53.66787693 0.245058799 223.8488889 Standard Error F Significance F 138.8899422 0.0000000000 t Stat P-value Lower 95% Upper 95% Intercept 0.141850778 0.101465 1.398026687 0.1635193579 -0.058122062 0.34182362 Online shopping festival 0.292270664 0.03963972 7.373176754 0.0000000000 0.214146509 0.37039482 Free to refund and exchange 0.132297341 0.03634615 3.639927186 0.0003402735 0.060664335 0.20393035 Recommendations on social platform 0.260572118 0.042217366 6.172154799 0.0000000032 0.177367795 0.34377644 Overdraft facility 0.067220161 0.037132934 1.810257177 0.0716265607 Aimless browsing 0.100429441 0.040777716 2.462851049 0.0145550648 -0.005963482 0.1404038 0.02006246 0.18079642 Conclusion and Limitations 4.1 Conclusion Demographic External 1. Significant difference between male and female. 1. Positive influence 2. Significant differences at different ages and different 2. Online shopping festival, free refund and exchange, monthly disposable income. 3. No significant differences at different education recommendations by celebrities on social platform and aimless browsing are significant (α=0.05) backgrounds and different occupations. (α=0.05) 24 4.2 Limitations ➢ Our sample size is not large enough to generate a good representative for the whole population. ➢ R²is only 0.76, which means that there are still set of factors affecting consumers’ impulsive buying that we did not take into consideration. ➢ The “extent” of impulsive buying is somewhat ambiguous and subjective. 25 RESEARCH METHOD Thank you Reference 1. 袁可, 管益杰. 2013. 消费者网络购物行为的影响因素. 中国临床心理学杂志, (2): 328-333 2. 张迪. 2010. C2C模式下消费者网上冲动性购买实证研究. 西南交通大学. 3. Scott A. Jeffrey, Rebecca Hodge. 2007. Factors influencing impulse buying during an online purchase. Electron Commerce Res, (7): 367-379. 4. Peck, J and Childers T L. 2006. If I touch it I have to have it: Individual and environmental influences on impulse purchasing. Journal of Business Research, 59: 765–769. 5. Rook D. W, Fisher R J. 1995. Normative Influences on Impulsive Buying Behavior. Journal of Consumer Research, 22(3): 305-313. 6. Dholakia Utpal M. 2000. Temptation and Resistance: An Integrated Model of Consumption Impulse Formation and Enactment. Psychology & Marketing, 17(11):955-982. 7. Beatty SE, Ferrell ME. 1998. Impulse buying: modeling its precursors. Journal of Retailing 74: 169–191. 8. Zhang, X., Prybutok, V. R., & Strutton, D. Modeling Influences on Impulse Purchasing Behaviors During Online Marketing Transactions[J]. Journal of Marketing Theory and Practice, 2007, (1): 79-89