Influence of sales promotion on impulse purchase buying behaviour

work of gross gross revenue packaging on thirst buy grease champions palmsing demeanourPurpose The purpose of this dissertation is to get a line let on the influence of gross sales packaging on zest purchase acquire deportment. This seek is think on the securities industry seller Tesco.Design/Methodology/Approach The down beas c everyplaceed in this dissertation argon consumer buying behaviour, sales promotions and proclivity buying behaviour. Two hypotheses be positive for this inquiry and they are interrelated. trine objectives are developed and they are used to prove these hypotheses. The secondary entropy is perk uped first to k instantly what is said about this phenomenon. Primary info is collected in the form of qualitative and quantitative data. Two miniskirt focus group interviews are conducted for qualitative data. Surveys are used to collect the quantitative data. The population of the survey consisted of 78 samples from the consumers of T esco, Parnell passage. Information like demographics and shop frequency are collected to know about the details of the consumers. The data collection besides verifies sales promotional activities, passion buying behaviour and the relation among them. Data is analysed using an online survey tool called SurveymonkeyFindings- From this read, it has been mute that sales promotions have a major influence on the caprice purchasing behaviour of consumers. It has also been verified that price promotion is the to the highest degree influencing divisor of sales promotion, which drives consumers towards caprice purchase. Conclusions and recommendations at the end of this interrogation ordain be useful for students who hear consumer buying behaviour and for retailers to implement a strategy for sales promotion.Originality/Value Previous researches that has been carried out about impulse purchase has been influence of culture, mood etc. The function of this research is to find the i nfluence of sales promotion on impulse purchase, which is important positionicularly during the reliable economic recession.IntroductionThis class of the dissertation outlines the research proceeds the tec chose to carry as part of his Masters in assembly line Administration (International) in Dublin Business give lessons. This ingredient is divided into the followers parts.Background of the researchSuit skill of the detective and interest in paper interrogation Objectives and HypothesesApproach to the dissertationRecipients of the researchOrganisation of the research arena and limitations of the landing fieldBackground of the researchOnes own personal shopping experiences bank that occasionally we go into a store with no planned purchases in mind. Usually, however we go into a store planning to buy whiz or more specific items. Sometimes we know that those planned items are offered at a sale price, sometimes they are at fix price, and sometimes a mixture of both. We usually have an idea how much(prenominal) it impart cost and how numerous of them we plan to buy. However, once we are in the store, we sometimes buy all we planned to buy sometimes we buy more than we planned to buy. This would have happened because of something that perk upd us inside the store. It could be because of various reasons like sales promotions or store atmospherics or uniqueness of the product. This study is based on the influence of sales promotions on unplanned purchases like this called impulse purchase.Consumers buying behaviour is based on the chooses of the consumer. This goes down to the basic level of consumer needs developed by Maslow(1971). He suggested a hierarchy of needs from the nearly basic to the most civilised one. Physiological needs, safety needs, belongingness needs, esteem needs and self-actualisation needs. To satisfy the needs, consumer buys things and this study is on the consumer buying behaviour. The consumer buying behaviour goes thr ough a basketball team sequential steps that is explained in the belles-lettres review of this article.Practically, when a consumer feels the need for buying things, he/she goes for shopping. There are some(prenominal) types of shops available, but the retail shop is where consumers can buy the things that they need for daily life. The concept of retail shops are now changing with the evolution of queen-sized supermarkets. Retail shops are now becoming one-stop-shops called super markets, offering vast number of product categories and services ranging from fruits and vegetables, off-licence, bakery, butcher facilities and even pharmaceuticals. It is a common fact that the large grocery stores and super markets have an unfair advantage everyplace subtile players, by using a low cost selling, which the small whatchamacallum stores struggle to match. The Irish grocery retail market has evolved with many changes over the last few years. Tesco is one of the main players that exist in Irish grocery retail market.Organisations have started changing the methods of their grocery chore over the last decade. There are innovations coming in the market insouciant to attract new consumers and to retain them for a long period. Sales promotion is a quick way to strengthen the sales of an organisation. According to Kotler(2003), sales promotion is a key ingredient in trade melt which consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of a particular products or services by consumers or trade. It is one of the effective methods in creating savings to the regular grocery shoppers. For retailers, the sales promotion is an excellent opportunity to tug their products in bulk thitherby increase profit margins and consumer loyalty. There are various sales promotion tools used by the retailers, price promotion being one of them. Price promotions help the consumers to buy their goods for a trim down price . There are various types of promotions which are described in the literature.A phenomenon called impulse purchase is considered as different form of consumer buying action. notion purchasing is a phenomenon by which a consumer experiences a sudden and often persistent urge to buy something immediately (Rook, 1987). It is an enigma in the marketing world, which accounts for substantial volume of goods sold every year. It is said that 80 percentage of all purchases in some particular goods categories is made through impulse purchase. Virvialite(2009) based on Kacen and Lee(2002).This is a widely used by the retailers as they attract the consumers to buy things impulsively. At the present market conditions, when market opposition is high and all types of companies apply promotion in their activities, stimulation of impulse purchasing in the market of consumer goods may become a self-colored competitive advantage. We go through this phenomenon in our daily life, knowingly or unkno wingly. It is the feeling that one cannot resist at that moment, which are affected many cyphers. An example of this would be when we see an advertisement in the store where it says one-half Price sale, Was 3.99, Now 1.99.The aim of this study is to study the influence of sales promotion on impulse purchase. This research determines if the consumers go for an impulse purchase, if there are sales promotions. There is also a second part to this research which determines if the price promotion is the most important factor in sales promotion that leads the consumer to impulse purchase. This study is an important one considering the current economic climate. In this recessionary period, consumers who are doing grocery shopping in truth care for the price factor and look for goods that are value for money. This study establishes the relation between sales promotion and impulse purchase.2. Suitability of the researcher and the interest in the subjectThe researcher is an engineering gradua te in Information Technology. The researcher has four years of work experience in I.T and business fields. Researcher has a family business back India, which deals with retail and wholesale trading of steel products. The researcher was taking care of business for one year before coming to Ireland and has an idea of what is happening in the unfeigned business world. The ultimate career goal is to take over the family business and expand it with more concentration on retail sector. This study on consumer buying behaviour will certainly help the researcher in achieving this goal.The researcher is currently working in the retail sector and has sight many consumers going for impulse purchase because of the sales promotions. The researcher himself has fall into the trap of impulse purchase when doing the grocery shopping on many occasions. This has specifically happened after the researcher came to Ireland where there are more sales promotions than seen elsewhere. This curiosity of the researcher encouraged to do a research on the influence of sales promotion on impulse purchase.Organisation elect for the researchThis research is conducted in Tesco, one of the biggest grocery retailers in Ireland. Tesco was founded by Jack Cohenand in 1919 and developed its first super market in 1956. They have come a long way through and now is the fourth largest retailer in the world, metrical by revenues and second largest measured by profits. Tesco has its base at The United Kingdom and is spread crossways 14 countries all over the world. The company started its operations in Ireland as Tesco Ireland in 1997. The theme Every Little Helps is very popular in Ireland. Tesco has almost all the services that is needed in our daily life, including groceries, bakery, clothing, and energetic network. The researcher chose Tesco for the research because of he considers it as the best place where the study of sales promotion and impulse purchasing can be do in the context of a groce ry-shopping environment. The research takes place in Tesco, Parnell Street in Dublin, Ireland.3. Research TopicInfluence of sales promotion on impulse purchasing behaviour in the context of a grocery store.The aim of this research is to find out the influence of sales promotional activities on impulse buying behaviour in the context of a grocery retail store. With this purpose, the research will be conducted in Tesco, Parnell Street, Dublin, Ireland.This research focuses on answering the following questions1. Do sales promotional activities in store have a major influence on consumers impulse buying behaviour?2. Is price promotion the major factor in sales promotion, which drives the consumers towards impulse purchase?ObjectivesIn order to answer from each one of these questions, the researcher came out with the following objectives.To identify the sales promotional activities in the storeTo find out if consumers actually go for an impulse purchase and the most influencing factor t hat affects itTo determine if price promotion is the most influencing factor of sales promotion and if consumer purchase low priced items during impulse buyingTo rationalize this research, and to obtain the answer for the research questions, certain assumptions were made initially. Two hypotheses were developed which needs to be proved or disapproved.HypothesisH1 Sales promotional activities in the store have a major influence on customers impulse buying behaviourH2 Price promotion is the most influencing factor of sales promotion, which drives consumers towards impulse purchase.Approach to the DissertationThe objectives derived will be obtained corpseatically in the research. Firstly, the secondary research is conducted using relevant sources to understand the research problem area in depth. Various sources like journals, textbooks, magazines and websites will be used in accordance with academic regulations. Primary research is carried out adjoining with the help of self-adminis tered questionnaires and focus group interviews. The quantitative data obtained through questionnaires are then analysed with the help of appropriate statistical tool and the government issue will be drawn. The hypotheses will then be tested with the results obtained and will proved or disapproved. Conclusions will be made and recommendations will be proposed based on the results.Recipients of the researchThere are five recipients of the research that is conducted as part of Masters in Business Administration (International) in Dublin Business School. They are as followsDublin Business School where this researcher is a full time student studying for his energyLiverpool John Moores university, who provides the qualification which the student is studying forMrs. Linda Moran, who is dissertation supervisor, who guided the agent through research process to dateStaff and centering of Tesco Ireland Ltd, who gave the leave for the research to be conducted on them any(prenominal)body w ho has interest in marketing specifically consumer buying behaviour, sales promotion and impulse purchaseOrganisation of the ResearchChapter 1 IntroductionThis section of the dissertation introduces the background of the research, the suitability of the researcher and the interest in the topic. This section also states the research objectives and hypotheses. Further, it gives a design description about how the research is carried out. This section also mentions the recipients of the research and also about the scope and limitations of the research.Chapter 2 Literature ReviewThis section the researcher critically reviews the literature which provides the theoretical background to the study. In the first section, the consumer buying behaviour is described in general. Further, the researcher introduces the concept of impulse purchase. The next section explains the sales promotions and its different types. The final section describes the relation between sales promotion and impulse pur chase.Chapter 3 Research MethodologyThis section describes the research methodology adopted for undertaking the research. This chapter begins with the research onion proposed by Saunders et al.(2007) and proceeds layer by layer beginning from research philosophy towards data abbreviation. The justification of population and sampling method used are also discussed later.Chapter 4 Data analysis and Findings.This section describes the findings from the data analysis with the help of focus groups and questionnaire.Chapter 5 Conclusion and Recommendations.The section integrates the concepts of theories discussed in the literature review earlier and incorporates them with the data analysis and findings. The section concludes the research by providing justifications for proving or disapproving hypotheses. Recommendations are made and can be use by retailers and consumers for further studies.Chapter 6 Self Reflection on hold Learning and Performance.The section describes the researchers learning process and performance over the soma of the International MBA programme. This section also describes the researchers development of various skills during the course.Chapter 7 BibliographyThe section provides the list of various books, academic journals and websites that have been used in the dissertation. Harvard referencing system is used to reference the sources used.Chapter 8 AppendicesAppendix includes the final questionnaire and project management Gantt chart.Major contributions of the studyScope and Limitations of the researchThe main limitation of this study is face up during the primary research. The sample size taken for this study is a small population and of consumers of Tesco, Parnell Street. The results and conclusions are based on a sensation store and cannot be used for generalisation. Another issue that the researcher faced while conducting the primary research is the biasing problem. The researcher has remained neutral to his best of the ability while conducting the focus group interviews and questionnaires. The study being cross sectioned is only relevant for a particular period of the present research. Any future changes in consumers attitudes can alter the results of present research.