Understanding the Consumer Behavior in Fashion Retail Industry with Respect to Planned Purchase vs Impulse Buying

Abstract

A planned purchase is one that has been carefully thought out and planned out before being made. It entails a conscious cognitive process in which the purchaser discerns a need or want, assesses the available alternatives, contrasts costs, features, and benefits, and finally decides to buy based on logical standards. Impulse purchasing is the term for making an unanticipated, hasty decision to purchase a good or service. Instead of rationality or need, it is frequently motivated by feelings like excitement, curiosity, or want. In most cases, when a person is shopping, they find something they want and decide to buy it right away without giving it any thought. In a 2021 survey by the National Retail Federation (NRF), 34% of respondents indicated they would look for specials and deals while 50% said they planned to make their purchases in advance. Just 16% of those polled claimed they would buy things on a whim. In a similar vein, a 2020 Accenture poll revealed that 60% of respondents claimed to have done internet research on products and services before making a purchase, but only 27% claimed to have done so. An impulse purchase is a purchase that is made on spot unplanned. It is impulsively bought and the reasons can vary from one person to another. It can be due to extensive buying behavior because of lockdown, gratification buying, therapy buying, desire to buy, etc. Whilst the reasons are too many, this report will cover how much of percentage of planned purchase and impulse purchase are included in the receipt with respect to the fashion industry. To be specific, this report will cover Van Heusen, Allen Solly, and other similar fashion brands. This study is done in order to determine how different parameters affect the planned purchase and impulse buying. The factors that will be covered in this report would be the start of the month, end of the month, credit card facility (if so, how much and when would the customer be willing – planned or impulse), type of brand, Store layout, and the season (back to college season).