Compulsive Buying Behaviour

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Analysis:

Data obtained from this will be analysed using SPSS to conclude which factors affects the compulsive buying behaviour. In this we will be using factor analysis to reduce the number of constructs and then multiple regression will be used to understand between dependent and independent variables.

References:

1.American Psychiatric Association,1985. Diagnostic and Statistical Manual of Mental Disorders. Washington, D.C.

2.Neuner, M.Raab, G. and Reisch, L. (2005), “Compulsive buying in maturing consumersocieties: an empirical re-inquiry”, Journal of Economic Psychology , Vol. 26 No. 4, pp. 509-522.

3. O. Guinn T. C., Faber R. J.,”Compulsive buying: A phenomenological exploration”. Journal of Consumer Research. 1989

4.Black,D.W.2007. “A Review of Compulsive Buying Disorder.” World Psychiatry, 6(1)(February): 14-18.

5. Compulsive buying: a report of 20 cases. McElroy SL, Keck PE Jr, Pope HG Jr, Smith JM, Strakowski SM J Clin Psychiatry. 1994 Jun; 55(6):242-8.

6. Dittmar H, Long K, Bond R. When a better self is only a button click away: Associations between materialistic values, emotional and identity–related buying motives, and compulsive buying tendency online. J Soc Clin Psychol. 2007;26: 334–361.

7. Ching TH, Tang CS, Wu A, Yan E Gender Differences in Pathways to Compulsive Buying in Chinese College Students in Hong Kong and Macau. J Behav Addict. 2016 Jun;5(2):342-50. doi:

8. Wann-Yih Wu, Chia-Ling Lee, Chen-Su Fu, Hong-Chun Wang, (2013) "How can online store layout design and atmosphere influence consumer shopping intention on a website?", International Journal of Retail & Distribution Management, Vol. 42 Issue: 1, pp.4-24

9. Xu, Y. (2007) & quot;Impact of store environment on adult generation Y consumers impulse buying", Journal of Shopping Centre Research, 14 (1), pp. 39-56.

10. Tulsi Jayakumar, " Behavioral lessons from Flipkart’s Big-Billion Day sale", Competitiveness Review, 2016

11. David Hirshleifer and Siew Hong Teoh,”Investor psychology in capital markets: evidence and policy implications”, Journal of Monetary Economics 49 (2002) 139–209

12. Rajagopal and Rajagopal A (2009), Buyer-supplier Relationship and Operational Dynamics, Journal of Operations Research Society, 60 (3), 313-320 (Impact Factor: 0.784) ISI Journal

13. Philip Kotler, Kelving Lane, Keller, “Marketing Management”, Pearson Education India; Fifteenth edition (2015)

APPENDIX

Below survey questions will help us identify correct set of consumers who are affected by compulsive buying behaviour. Data on these will be on a 7-point likert scale.

- I bought things even though I can’t afford them.

- Shopping is fun.

- Felt depressed after shopping.

- Bought something and when I got home I was not sure why I bought it.

- Went on buying spree and was not able to control it.

- Wrote a check or used credit card when I knew I did not have enough money to pay bills.

- Felt others would be horrified if they knew of my spending habits.

- If I have any money left at month end, I just have to spend it.

- Bought something for myself to feel good

- Just wanted to buy things and did not care what I bought.

- I often buy things simply because they are on sale.

- I really believe that having more money would solve most of my problems.

- Felt anxious or nervous on days I didn’t go shopping.

- Made only the minimum payments on my credit cards.

The items above are as they originally appeared in Faber and O’Guinn (1989). These 14 items composed the initial instrument. Overall score is calculated based on the above 14 items using the below equation:

-9.69 + (Q3*0.33) + (Q2*0.34) + (Q1*0.50) + (Q6*0.47) + (Q5*0.33) + (Q9*0.38) + (Q4*0.31)

If a score on the above algorithm is

Questionnaire for Hypotheses Testing

H1: Compulsive buying is positively correlated to promotional offers and discounts.

- I often feel the item purchased during sale was not required and could have been avoided.

- I often end up buying more if there are promotions like buy one get one or attractive discount offers.

H2: Compulsive buying is positively correlated with the store layout.

- I often end up buying from a store because the ambience is appealing.

- Good lighting in a store stimulates by buying behaviour.

- I often end up buying items placed at the checkout counter even if they are not my current needs.

H3: Compulsive buying is positively correlated with cashless payments.

- I often end up buying more when I had to pay by non-cash means as compared to hard cash.

- With the use of e-payment facilities, my spending has increased significantly.

H4: Compulsive buying is positively correlated with the advent of E-commerce

- I tend to spend more because of the ease and on the go shopping facilities provided by E-commerce sites.

- I often get excited by seeing huge amount of brands and products available just on my screen and end up buying more.

- I spend recklessly on events like Flipkart’s Big Billion Days and Amazon’s Great Indian Festive sale.

- Notifications send by E-commerce sites also persuades me to shop more and more.

H5: In-store staff

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