Factors Influencing Impulse Buying of Sports Team Merchandise in Developing Country: an Empirical Investigation

Headnote

Abstract

Impulse buying is an immediate urge to make a purchase. Sports enthusiast tends to engage in impulse buying when it comes to sports team merchandise. The paper attempts to investigate what factors lead to impulse buying of sports team merchandise. AMOS was used to compute the variables for Structural Equation Modeling (SEM), using the data collected from 288 young sports enthusiasts belonging to the age bracket of 18-26. The results strongly support the claim that shopping enjoyment is not directly related to impulse buying but has pathways that lead to it. The research empirically shows that sports enthusiasts do indulge in impulse buying where money availability, in store display/marketing efforts and fan identification are promoting factors to shopping enjoyment and thus causing impulse buying.

Keywords: impulse buying, sports merchandise, shopping enjoyment, marketing effort, money availability, fan identification

1. Introduction

Generally speaking, over the years, impulse buying has become a matter of immense importance to market researchers. Numerous studies (Bellenger et al 1978; Iyer, 1989; Cobb & Hoyer, 1986) have tried to interpret the nature of such purchases and its causal factors.

There have been various definitions used for impulse buying in literature. Wood (1998) expressed impulse buying as "weakness of will." The definition provided by (Rook 1987) is one of the most widely used; described as powerful and persistent urge to buy something whereas (Cobb & Hoyer, 1986) defined impulse buying as discrepancy between the products that consumer had planned to buy before entering a store and products that were actually purchased. One of the limitations of this definition was that information provided by consumer before entering the store was incomplete due to constraints in memory. This paper, however, employs a more comprehensive definition provided by (Beatty, Ferrell, 1998) a consumer's persistent urge to buy something, which is not planned and is not a staple product. This study basically provides marketers in a developing country with guidelines as how to broaden their practices.

The paper looks at impulse buying of sports merchandise as a result of three specific dimensions namely consumer characteristics, product characteristics and situational characteristics, which are further categorized into the following;

* Consumer characteristics- Shopping enjoyment (Beatty, Ferrell, 1998) and Sports team identification (Mael and Ashforth, 1992)

* Product characteristics- Impulse item (Kacen and Lee, 2002)

* Situational factors- Money availability (Beatty, Ferrell, 1998) and Marketing effort (Dholakia, 2000).

In Pakistan there has been an increase in number of shopping malls, many businesses prompt consumer to indulge in impulse buying (Dholakia, 2000). People often purchase products in the shopping mall, which are of little or no practical use to them, or indeed something that they were not expecting to buy. This phenomenon is referred to as impulse buying. When it comes to sports team merchandise, such as mugs, key chains, Tshirts, wrist bands, etc, it is quite frequently the fans and sports enthusiasts who engage in impulse buying of such products the most.

Sports team merchandise which is not staple product rather a shopping good. Boone and Kurtz (1999) characterized this product category as impulse product as they carried the following characteristics; light weight, small in size, easy to store and carry.

This paper focuses on sports fans that tend to engage in impulse buying of sports merchandise to associate themselves with a certain team. The reason for selecting sports items is that research has revealed that 54% of women's sportswear and 36% of men's rain wear and sports/casual clothing are impulsive purchases (Bellenger et al 1978). The research focuses on sports teams' licensed merchandise which denotes products that carry name, brand maker or logo of sports team. Certain licensed sports merchandise such as key chains, mugs, flags and banners, wristbands, T-shirts, headgear, boxer shorts, football gear, etc. convey a vital component of the attitude of the one who wears them (Bellenger et al 1978). In addition to the items stated above, everything that bears the logo of a sports team will be the main focus of this study.

This paper essentially adds to the existing information on impulse buying. We examine the alignment between shopping enjoyment and impulse buying thus helping to understand how a buyer's shopping enjoyment should be adjusted to trigger an impulsive purchase. This paper investigates the relationship of variables such as shopping enjoyment, fan identification, in store display/ marketing efforts and money availability to cause impulse buying. The previous literature is unable to provide us with a model development of an impulse buy. Further, we applied multi-factor moderation to the model using age and gender. Hence, this research aims to develop model for marketers to help sell their sports products.

In this study we examine the relationship of impulse buying to the aforementioned variables in the developing economy of Pakistan. Using the age and gender as a moderating variable we further analyzed multi-factor moderation to the proposed model. Gutierrez (2004) suggested that retailers must enhance the shopping environment through in store advertisements, distinctive store display and must make it into an incident that triggers impulsive buying behavior.

2. Literature Review and Hypothesis

This section offers a brief evaluation of the previous literature, in regards to the topic, and the theoretical background on the variables under study. The variables are shopping enjoyment, money availability, in store display/ marketing efforts fan identification and, finally, impulse buying. The effect of all five of these variables has been examined by previous studies such as those of Kwon, H.H., & Armstrong, K.L. (2002). However, our research will solely focus on the influence that these factors have in the developing world. The theoretical background that we obtained from numerous other studies facilitated the development of our hypotheses that we incorporated in our research.

Firstly, the basis of our study is primarily impulse buying behavior, thus we need to adequately define it. Impulse buying is a different and unique aspect of a consumers' routine. Impulse buying behavior is dissimilar to planned buying behavior; it is this particular behavior that explains enormous amount of sales of a number of products, around the world, every year (Kollat and Willet, 1967; Bellenger et al., 1978; Weinberg and Gottwald, 1982; Cobb and Hoyer, 1986; Rook and Fisher, 1995; Hausman, 2000). It is basically an urge to indulge in an unplanned purchase (Kwon, H.H., & Armstrong, K.L. 2002).

Product characteristics are not the only factors that lead to impulse buying; consumer characteristics have also played an important role. (Beatty and Ferrell, 1998) empirically tested a model of the antecedents of impulse buying with data drawn with interviews before and after shopping from a regional shopping mall setting. The study provides evidence that shopping enjoyment is an affective state that may prompt impulse buying. Moreover, the study concludes that people who enjoyed shopping have increased intention, opportunity and actual engagement in an impulsive purchase.

Beatty and Ferrell (1998) also tested that money availability would create a positive feeling among consumers, which also in turn would lead to impulse buying behavior.

H1: Shopping enjoyment has significant and positive effect on money availability.

Time constraints can bound the degree to which consumers can process in-store information. In addition time pressures increase the consumers' stress levels (Isenberg 1981; Revelle, Amaral, and Turriff 1976) which as a result cause a reduction in the level of shopping enjoyment.

.H2: Shopping enjoyment has significant and positive effect on time availability.

Financial capability played a crucial role in impulse buying of sports teams' licensed merchandise. A study done by (Stern, 1962) identified nine factors that influenced impulse buying (a) low priced (b) mass distribution (c) self service (d) mass adversting (e) small size or light weight (f) marginal need for item (g) ease of storage (h) prominent store display. (Beatty, Ferrell1998) studied the direct relation of impulse buying with that of financial resources available and found that availability of financial resources was a determinant in impulse buying for college going students. It is likely to expect that financial availability can impact impulse buying behavior for college students for sports teams' merchandise also.

H3: Money availability has significant and positive effect on In Store Display/Marketing efforts.

Research has shown that team identification has influenced ticket price elasticity (Sutton, McDonalds, & J.Cimperman, 1997), usage of sports apparel Cialdini et al. (1997).

H4: Money availability has significant and positive effect on Fan Identification.

Time availability for shopping, can generally impact consumer behavior (Belk 1975; Payne et al 1987; Wright 1974). On the whole, if a particular consumer has time on their hands, then it would allow them to indulge in fan identification, which is them representing themselves as 'fans'.

H5: Time availability has significant and positive effect on Fan Identification.

Time availability can also be defined as the time required carrying out the anticipated shopping tasks, as perceived by the consumers, in relation to the actual time available to perform such tasks. The time available for shopping effects on-the-spot decision making in two ways, which were also previously discussed in the paper. Namely, time restrictions limit consumers from processing in-store information and the affect that time pressures have on the consumers' stress levels (Isenberg 1981; Revelle, Amaral, and Turriff 1976).

As limited time reduces the extent to which consumers can process in-store information (Isenberg 1981; Revelle, Amaral, and Turriff 1976) it ensures that the consumer is less likely to notice the in store marketing efforts and the in store displays.

H6: Time availability has significant and positive effect on In Store Display/Marketing efforts.

Tendai & Crispen (2009) studied effect of marketing efforts/in store environment on impulse buying. The economic factors that the study incorporated were coupons, price cuts and special discounts along with shop environment which included music, in store scent, in-store display, sales staff, furthermore, shop congestion/crowdedness and in store marketing was also under consideration.

However, quite interestingly, results of the study showed that among lower-middle class consumers, economic factors like cheaper prices, coupons and helpful shop assistants were more likely to bring about an impulsive purchase. Moving on, atmospheric engagement factors like music, fresh scent and ventilation were only relevant in helping to keep the consumers longer in shops, and were unlikely to directly influence impulsive buying. And in studies by Pornpitakpan, C., & Han, J.H. (2013) and GRAA, A. et al (2014) the effect of a good mannered salesperson on impulse buying was again acknowledged, and thus, supported the results obtained by Tendai & Crispen (2009). A research carried out by Azim, A. (2013) also suggests that it is essential for a salesperson to maintain a dynamic and welcoming in-store environment so as to trigger an impulsive purchase.

Xuanxiaoqing, Yang, & Huang(2012) analyzed factors which were responsible for impulse buying in females. Female consumers' buying behavior was easily influenced by advertising, displays of goods, atmosphere, promotions and sales. In addition, female impulse buying intention could be further enhanced by the behavior of the sales clerks and also by positive responses from other consumers of that particular item.

Retailers now accepted the importance of this process of impulse buying, and endeavor to give rise to the in-store impulsivity of consumers through increased store layouts, in-store promotions and improved product packaging (Dholakia, 2000).

It has become essential for retailers to have a stout in-store promotional mix in order to achieve higher profits through impulsive actions of their consumers (Gutierrez, 2004; Michon et al., 2005; Schiffman and Kanuk, 2007).

H7: In Store Display/ Marketing efforts has significant and positive effect on Impulse buying.

Sports team identification has been used by marketers and sports scholar to predict and explain behavior of sports enthusiasts and consumers. (Cialdini et al.1976) found that sports consumers tend to increase their self-esteem by exhibiting their relationship with a sports team.

Dittmar et al (1995) offered a new model of impulse buying, based on a social constructionist theory. The model predicted impulsively bought products reflected selfidentity. The study concluded that, men have a tendency to impulsively buy instrumental and leisure items which depicted individuality and activity, whereas, women tend to buy symbolic and self-expressive goods that have more to do with appearance and emotive aspects of self. Taking it one step further, our study tries to investigate whether the level of identification with a sports team influences the impulse buying behavior with regards to sports teams' licensed merchandise.

Social identity as defined by (Mael and Ashforth, 1992) is self-categorization of an individual with a group. Therefore, people indulging themselves in purchase of licensed sports merchandise might feel a sense of belonging to the respective sports team, depicting a symbolic association which portrays consumer social identity.

H8: Fan Identification has significant and positive effect on Impulse buying.

3. Methodology

Sports teams' merchandise is categorized as products that tend to be purchased. This research will not cover product characteristics. The focus will primarily be on shopping enjoyment, time availability, money availability, sports team identification and marketing efforts which are the independent variables in the study. Moreover, the dependent variable, that the study incorporates, is impulse buying behavior.

Since the basis of this study involves purchase behavior and sports, the subjects calculated were derived mostly from different sports enthusiasts groups, and those who actively participated in sports at the university or outside. Many of them are potentially members of the university's various sports teams, such as football, cricket, badminton and basketball.

Sample size was of 300 university going students of both genders. For that purpose, the survey was conducted in various colleges and universities that these students belonged to. The preferred sample size for the study was up to 14 for every independent variable. Thus, the recommended number of subjects was 83 (Kotrlik, & Higgins, 2001).

Out of the 300 university going students the proportions of males to females were in favor of the males, as their gender represented a far greater majority of sports fans and enthusiasts. The response rate of the study was 96% as out of the total 300 questionnaires, 288 were recovered.

3.1 Sample

The population for this research included all males and females who were in the age bracket of 18 to 26 years, and currently enrolled in university or college. 16% were females in our study while 72% were males. The 22% of the sample belonged to 18-20 years of age bracket, 55% were in the age group of 21-22 years while only 11% were of the age 23-24. Within the school status 15% were freshman, 13% sophomore, 18% were juniors and 42% were seniors. The sample consisted of 8% belonging to household income of Rs.20,000-39,000, 7% belonged to Rs.40,000-59,000,13% were from Rs. 60,000-79000, 26% belonged to Rs. 80,000-99,0000 and 46% belonged to 100,000 and above.

3.2 Procedure and Instrument

The questionnaire encompassed five parts, each of which are exploring one of the five independent variables of the study. The questionnaires consisted of a total of 28 items, with 1-5 point Likert scale to ascertain the level of agreement of each respondent. The questionnaire contained four items on shopping enjoyment, three items on time availability, three items on money availability and finally, three items on sports team identification and seven items on in store display/marketing effort (Mael and Ashforth, 1992). In adition, five items of demographics were also included in the instrument.

Data was collected from 288 sports enthusiasts. AMOS was used to compute the variables for SEM. In order to test for bias in self-report survey data, two tests were conducted: the Chi-square test and Harman's one-factor test. The chi-square test was conducted on early respondents and late respondents, under the assumption that late respondents represented the opinions of non-respondents (Armstrong and Overton, 1977). Table 2 shows the results of the non-response bias. The results clearly indicate that the first group and the second group of respondents are not different.

Harman's one factor test was conducted to investigate the presence of common method variance. This study relied on single respondents who responded to the independent and dependent scales (Scott and Bruce, 1994). Common method variance threatens the validity of the survey data and causes misleading interpretations (Podsakoff et al., 2003). A confirmatory factory analysis was made use of, to check for Harman's one factor. The general rule of thumb is that if a single factor accounts for a major part of the variance, then common method is said to exist (Podsokoff et al. 2003). Some authors are of the opinion that a poor model fit of the one factor model implies that the common method variance is not an issue (Das and Joshi, 2012; Kim, 2009; Bou-Llusar et al., 2009). All items were loaded into one factor model. The results exhibited that the common method variance was not a cause for concern (Chi-square=.000, X2/df= 2.974, CFI= .498, NFI= .409, TLI= .448 and RMSEA= .151).

3.3 Data Analysis Measure

The data was examined for reliability, uni-dimensionality and also validity. These tests are important as recommended by Shah and Goldstein (2006). This research was analyzed by the Structural Equation Modeling (SEM). Confirmatory factor analysis (CFA) was first explored by loading each item and then testing them to the cut-off criteria. Factors with loading of 0.4 were retained for the analysis. The second part was structural model, where relationships were generated and then tested for the level significance. Once the desired significance was attained the tests of model fit were considered.

There are several model fit indices and it has been suggested to use a mix of them since each of it has their own weaknesses and strengths (Kline, 2005; Hu and Bentler, 1999). Chi-square per degree of freedom should be between 1-3 (Segars and Grover, 1998; Carmines and Mclver, 1981; Papke- Shields et al. 2002), the CFI, NFI, IFI and TFI should be greater than 0.8 (Segars and Grover, 1998) while a good fit is considered when the score is greater than 0.90 (Byrne, 1989; Joreskog and Sorbom, 1986). For RMSEA there is still a debate of a good fit score however models are accepted at scores less than 0.10 (Hair et al., 2006).

4. Results

4.1 Measurement Analysis

Structural equation modeling was used to examine the measurement model and also the proposed hypotheses. Shah and Goldstein (2006) ascertain a three-stage approach to confirm the reliability, uni-dimensionality, and validity. The measures were loaded by means of CFA to evaluate the model fit of the measurement model. An iterative process was conducted to restrict the items where the loading was less than 0.4 (Hair et al., 2006). As proposed by Hair et al. (2006), items were only dropped when hypothetically sound and items were then deleted one by one, until model fit met the required criteria. All time availability items had low loadings of less than 0.4 due to which eventually the variables was dropped from the analysis. The analysis was conducted for shopping enjoyment, money availability, and fan identification, in store display / marketing efforts and impulse buying.

We tested reliability in the first stage, using average variance extracted (AVE) and composite reliability with the standardized solutions in CFA (Hult et al. 2004). As common practice, the generally acceptable levels of analysis show a composite reliability of more than 0.7 and the AVE of more than 0.5. As illustrated in table 3, the composite reliability ranged from 0.708 to 0.882 and AVE from 0.475 to 0.749. Therefore, sound reliability was present in all measures.

The second stage involved testing for uni-dimensionality. The aim of this test is to determine whether the items in the scale belong to a single underlying construct (Venkatran and Grant, 1986). The model fit is reasonable as the results of unidimensionality indicate that there is no uni-dimensionality (Chi-square=.000, X2/df= 1.87, CFI= .864, NFI= .755, TLI= .834 and RMSEA= 0.10).

The third stage was to test for validity. Validity was tested in two separate categories: convergent and discriminant validity. Convergent validity is the extent to which several attempts are in agreement to the measures (Bogazzi and Phillips, 1982). This was measured by the significance of each t-value of the measurement indicators (Chen et al., 2004; Sila and Ebrahimpour, 2005). If the t-values are greater than two or if each item's coefficient is significant then convergent validity exists (Anderson and Gerbing, 1988).

Next is discriminant validity. Discriminant validity is the extent to which the constructs are dissimilar to each other (John and Reve, 1982). Discriminant validity was tested using Fornell and Larcher's (1981) recommended method, in which AVE is compared with reference to the squared correlation of all the constructs. AVE should possess greater values in relation to the values of all the squared correlations. Table 3 shows the AVE values, thus, the examination of the measurements shows that the measures were reliable, uni-dimensional as well as valid.

Table 4 summarizes the results of the structural model. A total of eight hypotheses were tested. During the measurement analysis stage, time availability variable was dropped due to its loadings showing less than 0.4. Hence, H2, H5 and H6 hypothesis were dropped from analysis.

To test for hypothesis 1, shopping enjoyment was related to money availability and found that the coefficient was 0.251 (t-value= 2.510), which was statistically significant at 0.05. This supported the claim that shopping enjoyment had a significant, positive and direct relationship with money availability. Hence, H1 is confirmed.

The path coefficient for hypothesis 3 measured money availability in relation to in store display/marketing efforts. The coefficient was 0.305 (t-value = 1.922). This relationship was positive and significant at .10. Money availability was directly related to in store display/ marketing efforts. Thus, H3 was also confirmed.

H4 was tested by creating a relationship between money availability and fan identification. This relationship was significant, positive and directly related. The coefficient was 0.611 (t-value = 2.787) statistically significant at .001. Hence, H4 was also confirmed.

H7 proposed the relationship between in store display/marketing efforts to impulse buying. The coefficient for this relationship was 0.210 (t-value = 2.235) statistically significant at 0.05. Therefore H7 was also accepted.

Lastly the relationship of fan identification was tested with impulse buying. The coefficient for this relationship was 0.724 (t-value = 8.285). This relationship was positive and significant at .001 as a result this hypothesis (H8) was also confirmed.

The model fit for the final model showed a good fit for the entire model fit indices (Chisquare= 0.76, X2/df= 1.2, CFI= 0.972, NFI= 0.865, IFI= 0.973, TLI= 0.963 and RMSEA= 0.05).

We then analyzed the moderating effects of age and gender on the model. It was found that males had a significant moderation while females have insignificant moderation effects. Younger age brackets such as 18-20 and 21-23 showed significant moderation effects however, age bracket 24-26 (young adults) were not significant This indicates that this model is a more valid research on the younger aged, males sports enthusiasts as opposed to older aged males and females (of all ages).

Hence a new model emerged creating a new pathway between the variables. Now, two situations/ pathways have been created. If a sports enthusiast enjoys shopping and has money available, and which when coupled with an increase in in-store display/marketing efforts, it will result in impulse buying of sports merchandise. In the second situation, if the sports enthusiasts enjoy shopping and have money available and can identify themselves with their sports team as fans, then this will lead to impulse buying of the sports merchandise.

5. Discussion and Implications

The outcomes of this research support the concept that sports enthusiasts do indulge in impulse buying where money availability and in store display/marketing efforts and fan identification are promoting factors to shopping enjoyment causing impulsive purchase. This study set out to develop and test the model of impulse buying in sports merchandising. The variables were identified from previous literature. SEM was run on the independent and dependent variables. CFA revealed lower loadings of time availability due to which the variable was dropped. In the structural model stage, a new model for impulse buying in sport merchandise emerged.

The results strongly support the claim that shopping enjoyment is not directly related to impulse buying but has pathways that lead to it. The path variables are money availability, in store display/marketing efforts and fan identification. Shopping enjoyment leads to money availability (H1), previous research link shopping enjoyment to money availability Beatty and Ferrell (1998). The result empirically claims that money availability leads to fan identification and in store display/marketing efforts (H3 & H4). SEM results showed that fan identification and in-store display/marketing efforts lead to impulse buying (H7 & H8). Theses links are prominent in the research by (Gutierrez, 2004; Michon et al., 2005; Schiffman and Kanuk, 2007).

Even though these relationships were established from the literature, no evidence was found of the path analysis. The literature lacked CFA and SEM results that have shed new light to the research for sports merchandise marketing. This study has provided a better understanding for sports marketing research by developing a model for future reference. This model will enhance sports marketers' practices to attract customers and engage in impulse buying.

6. Limitations and Future Research

While this research has made a substantial contribution to research and practice, there are some limitations yet to be addressed. This research works on the variables identified by (Mael and Ashforth, 1992) and so it does not include all variables that could lead to impulse buying of sports merchandize. Hence, future research should involve emphasis on novel variables. This research was carried out in a developing country. Since India, Pakistan, and Bangladesh share the same culture this model can be tested for its validation.

A higher sample size can be generated including the respondents that are older. The questionnaires were only rotated among university students, on the other hand, older people (30-60) of both genders, are yet to be investigated. Age can mediate impulse buying and shopping enjoyment.

In the future, it will be fascinating to explore the presence of second order construct and development of new constructs for impulse buying in sports merchandise. Such analysis will help in construct development for the academic world at large.

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