CHAPTER 2 THEORETICAL FOUNDATION 2.1. Theoretical Foundation 2.1.1. Consumer Behavior and Decision Process The field of consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It blends elements from psychology, sociology, social psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. A consumer decision-making style is one of the studies under the Consumer Behavior discipline, which was “a relatively new field of study in 1960s” (Schiffman and Kanuk, 19). Schiffman and Kanuk said that, “later research discovered that consumers are just as likely to purchase impulsively and to be influenced not only by family, friends, advertisers, and role models, but also by mood, situation and emotion” (Schiffman and Kanuk, 19). The image produced by the term consumer decision is that of an individual carefully evaluating the attributes of a set of products, brands, or services and trying to choose the 6 one that solves a clearly recognized need rationally and for the least cost. Many decisions are made by the consumers in this manner, however many other decisions involve little or conscious effort. Furthermore, the feelings or emotions associated with acquiring or using the brands or with the situation in which the product is purchased or used become the focus of many consumer decisions. In conclusion, a brand may be chosen because “it makes me feel good” or “my friends will like it” instead of its attributes such as price, style, and functional characteristics. 7 Here is a simplified consumer decision-making model taken from Consumer Behavior 8th by Schiffman and Kanuk, in order to describe the process of Consumer DecisionMaking stages. Figure 1 – A Simplified Model of Consumer Decision Making External Influences Input Socio cultural Environment 11. Family 12. Informal sources 13. Other Noncommercial sources 14. Social class 15. Culture & subculture Firm’s Marketing Efforts 9. Product 10. Promotion 11. Price 12. Distribution Consumer Decision Making Pre purchase Search Psychological Field 11. Motivation 12. Perception 13. Learning 14. Personality 15. Attitudes Evaluation of Alternatives Experience Need Recognition Process Post Decision Behavior Output Purchase 5. Trial 6. Repeat purchase Post purchase Evaluation Schiffman and Kanuk, p. 20 8 2.1.2. Consumer Generation A generation or age cohort is a group of persons who have experienced a common social, political, historical, and economic environment. Age cohorts, because their shared histories produce unique shared values and behaviors, often function as unique market segments. In this particular study, the structural model of fashion-oriented impulse buying behavior on generation Y consumers became the main focus. Today’s 30-year-olds are the leading edge of this generation of 70 million members (Biro Pusat Statistik). These people are born between 1977 and 1994. Generation Y consumers don’t respond well with traditional mass-marketing approaches that were so successful with older generations. Companies must continually push the creative envelope with respect to media and promotional themes to capture this audience. Event sponsorships and electronic media are just a few of the ways marketers are finding to connect with this generation. Music and fashion are often key touch points of this generation. One of the growth markets for Generation Yers is apparel, for which 18 to 34-year-olds spend most of all age categories. A great success has been achieved by Abercrombie & Fitch by focusing on the middle-and upper-income portion of this group. Its stores blast contemporary music at corporate-specified decibel levels designed to discourage conversation. 9 The teenage segment of this generation also receives a lot of attention. Many reside in dual-income or single-parent households and have grown up assisting in household management, including shopping. The teenage market is attractive to marketers for two reasons. First, preferences and tastes formed during the teenage years can influence purchases throughout life. Second, in U.S. alone, over $200 billion is spent on average by teenagers annually for personal consumption which constituted 1.33% of total U.S.consumption of $ 15 trillion. If this figure also reflected the consumption pattern of teenagers in Indonesia then over Rp. 300 billion are spent by the teenagers on the fashion industry. 2.1.3. Impulse Buying Behavior Bayley and Nancarrow (1998) defined impulse buying behavior as a sudden, compelling, and hedonically complex act where the quickness of a decision process exclude thoughtful and deliberate consideration of alternative information and choices. In other words, impulse buying is unplanned or spontaneous. Solomon (2004) implied that impulse buying occurs when the person experiences a sudden and irresistible urge to buy. When the consumers believe that acting on impulse is appropriate, then they are more likely to buy spontaneously. There are certain feelings associated with impulse buying such as intense feelings of having to buy the product immediately, ignoring negative consequences, feelings of excitement, euphoria, and conflict between control and indulgence (Rook, 1987; Bayley 10 et al., 1998). Subsequent researches have found that impulse buying differ from reasonable unplanned buying. Impulse buying is based on emotional preference or objective evaluation while unplanned buying is based on rational evaluation or recognition of new needs while shopping (Ko, 1993; Solomon, 2004). A narrow definition of impulse shoppers as introduced by Cobb et al. (1986): Figure 2 Intent to buy category Intent to buy brand Yes No Yes Planner - No Partial Planner Impulse purchaser Fashion-oriented impulse buying is the concept of impulse buying restricted to a specific product, in this case fashion. Fashion-oriented impulse buying occurs when a customer see a new fashion product, perceive the design or style and attribute it as fashionable, then proceed to buy it after being motivated by the suggestion (Han et al., 1991). Stern (1962) categorized impulse buying into four groups: (1) Pure impulse buying: the novelty or escape purchase that breaks a normal buying pattern. 11 (2) Reminder impulse buying: this occurs when a customer is reminded of being low on a product or is in need of an item when he/she sees it at the store or recalls an advertisement about the item and a previous decision to buy. (3) Suggestion impulse buying: this occurs when a customer sees the product for the first time at the store and then visualizes the need for it. (4) Planned impulse buying: this occurs when a customer enters a store with the intention of purchasing certain items, but recognizes that he/she may purchase other items dependent upon sale promotions. 2.1.4. Fashion Involvement Involvement is defined as “a person’s perceived relevance of the object based on their inherent needs, values, and interest” (Solomon, 2004). Involvement is a motivational construct; therefore different factors can trigger it, such as something about the person, the object, or the situation. Fashion involvement is related to a consumer’s level of interest to fashion-oriented product category in particular. High fashion involvement implies greater relevance to the self (O’Cass, 2000). High fashion involved consumer is very important to fashion researchers and marketers, because they are the drivers, influentials, and legitimists of the fashion adoption process. To that effect, fashion involvement has been discussed and utilized in a number of prior studies, primarily to predict behavioral variables such as product involvement, buying behavior, and consumer characteristics that are related to apparel products. (Browne and Kaldenberg, 1997; Fairhurst et al., 1989; Flynn and Goldsmith, 1993; Tigert et al., 12 1976). For example, O’Cass (2002, 2004) found that fashion clothing involvement is highly related consumer’s personal characteristics such as gender and age (woman and younger). Previous studies conducted by Han et al., also suggested that fashion-oriented impulse buying is more significant for students majoring in fashion and having high involvement. This is due to the findings that fashion-oriented impulse buying for college students majoring in textiles and clothing is more highly evident compared to students in other majors. Therefore, it is assumed that the higher the fashion involvement, the more likely a consumer might engage in the fashion-oriented impulse buying. 2.1.5. Positive Emotions Mehrabian and Russell (1974) proposed an environmental psychology approach, which is often used as a framework for understanding the emotional and behavioral responses of consumers in a physical retail environment, suggested that factors from the environment (sense modalities and information rate) and characteristic emotions associated with personality affect primary emotional responses (which consists of pleasure, dominance, and arousal), and the emotional responses will influence behavioral responses which will finally result in a decision: to approach or to avoid the situation. 13 Figure 3 According to Mehrabian and Russell (1974), Mehrabian (1980) and Donovan and Rossiter (1982), emotional responses consist of three independent factors: (1) Pleasure: this is a state or degree of feeling that is to which a person feels good, joyful, happy or satisfied with a particular situation. (2) Arousal: this is a state of feeling that varies from feelings of excitement, stimulation, alertness or activeness to feelings of unresponsiveness, being tired, sleepy or bored. (3) Dominance: this is defined as ability of an individual to control a particular situation or be submissive. Subsequent studies by other researchers also found the evidence that emotion strongly influences impulse buying and consumer’s positive emotion was associated with the urge to buy impulsively. When in positive emotional states, consumer tends to lessen 14 their decision complexity and shorten their decision time. All of this supports the previous studies and earlier findings that emotion affects behavior and that impulse buyer is more emotional compared to non-impulse buyer (Weinberg and Gottwald, 1982, Isen, 1984; Beatty and Ferrell, 1998; Hausman, 2000; Rook and Gardner, 1993; Youn and Faber, 2000). Therefore, consumer emotion plays an important role as the determinant in predicting impulse buying in a retail store. 2.1.6. Hedonic Consumption Tendency Hedonic consumption is described as visual and sensory experience where the products are consumed for fun, pleasure and excitement whereas utilitarian consumption is primarily instrumental where the products are consumed to accomplish a specific function or a practical task (Dhar and Wertenbroch 2000; Holbrook and Hirschman 1982). Babin et al. proposed a scale to differentiate between hedonic and utilitarian shopping valuers. According to their study, utilitarian shopping value is based on the principle that shopping is task-related and rational and for that reason, the experience is considered as more of an errand or work. On the other hand, hedonic shopping value is based on the principle that shopping is a pleasurable or enjoyable experience and for that reason, the experience is considered as an escape or adventure by the consumers. Previous researchers have viewed impulse buying is irrational however, Hausman claimed that when hedonic elements are taken into account, impulse buying is a valuable pastime which more than just a means of acquiring goods. 15 These studies support that there is a conceptual link between hedonic shopping motivation and impulse buying behavior where consumers are more likely to engage or indulge in impulse buying when they are being motivated by hedonic desires or by noneconomic reasons, such as fun, fantasy, and social or emotional gratification (Hausman, 2000; Rook, 1987). 2.2. Theoretical Framework Based on the theories presented in the above section, a logical model can be formulated which illustrates the causal relationships between variables to examine consumers’ impulse buying behavior toward fashion products. The causative relationships among four variables (fashion involvement, positive emotion, hedonic consumption tendency, and fashion-oriented impulse buying) in a shopping context are as follows: fashion involvement is assumed to influence positive emotion, hedonic consumption tendency, and fashion-oriented impulse buying. In addition, emotion and hedonic consumption tendency are assumed to influence fashion-oriented impulse buying behavior. 16 Figure 4 H3 17