Journal of Social Sciences Humanities

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s Journal of Social Sciences & Humanities

About the Journal

Overview

Pertanika Journal of Social Sciences & Humanities (JSSH) is the official journal of Universiti Putra Malaysia published by UPM Press. It is an open-access online scientific journal which is free of charge. It publishes the scientific outputs. It neither accepts nor commissions third party content.

Recognized internationally as the leading peer-reviewed interdisciplinary journal devoted to the publication of original papers, it serves as a forum for practical approaches to improving quality in issues pertaining to social and behavioural sciences as well as the humanities.

JSSH is a quarterly (March, June, September and December) periodical that considers for publication original articles as per its scope. The journal publishes inEnglishand it is open to authors around the world regardless of the nationality.

The Journal is available world-wide.

Aims and scope

Pertanika Journal of Social Sciences & Humanities aims to develop as a pioneer journal for the social sciences with a focus on emerging issues pertaining to the social and behavioural sciences as well as the humanities.

Areas relevant to the scope of the journal include Social Sciences—Accounting, anthropology, Archaeology and history, Architecture and habitat, Consumer and family economics, Economics, Education, Finance, Geography, Law, Management studies, Media and communication studies, Political sciences and public policy, Population studies, Psychology, Sociology, Technology management, Tourism; Humanities—Arts and culture, Dance, Historical and civilisation studies, Language and Linguistics, Literature, Music, Philosophy, Religious studies, Sports.

History

Pertanika was founded in 1978. A decision was made in 1992 to streamline Pertanika into three journals as Journal of Tropical Agricultural Science, Journal of Science & Technology, and Journal of Social Sciences & Humanities to meet the need for specialised journals in areas of study aligned with the interdisciplinary strengths of the university.

After almost 25 years, as an interdisciplinary Journal of Social Sciences & Humanities, the revamped journal focuses on research in social and behavioural sciences as well as the humanities, particularly in the Asia Pacific region.

Goal of Pertanika

Our goal is to bring the highest quality research to the widest possible audience.

Quality

We aim for excellence, sustained by a responsible and professional approach to journal publishing. Submissions are guaranteed to receive a decision within 14 weeks. The elapsed time from submission to publication for the articles averages 5-6 months.

Abstracting and indexing of Pertanika

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We are continuously improving access to our journal archives, content, and research services. We have the drive to realise exciting new horizons that will benefit not only the academic community, but society itself.

Citing journal articles

The abbreviation for Pertanika Journal of Social Sciences & Humanities isPertanika J. Soc. Sci. Hum.

Publication policy

Pertanika policy prohibits an author from submitting the same manuscript for concurrent consideration by two or more publications. It prohibits as well publication of any manuscript that has already been published either in whole or substantial part elsewhere. It also does not permit publication of manuscript that has been published in full in Proceedings.

Code of Ethics

The Pertanika Journals and Universiti Putra Malaysia takes seriously the responsibility of all of its journal publications to reflect the highest in publication ethics. Thus all journals and journal editors are expected to abide by the Journal’s codes of ethics. Refer to Pertanika’s Code of Ethics for full details, or visit the Journal’s web link at http://www.pertanika.upm.edu.my/code_of_ethics.php

International Standard Serial Number (ISSN)

An ISSN is an 8-digit code used to identify periodicals such as journals of all kinds and on all media–print and electronic. All Pertanika journals have ISSN as well as an e-ISSN.

Journal of Social Sciences & Humanities: ISSN 0128-7702(Print); ISSN 2231-8534 (Online).

Lag time

A decision on acceptance or rejection of a manuscript is reached in 3 to 4 months (average 14 weeks). The elapsed time from submission to publication for the articles averages 5-6 months.

Authorship

Authors are not permitted to add or remove any names from the authorship provided at the time of initial submission without the consent of the Journal’s Chief Executive Editor.

Manuscript preparation

Refer to Pertanika’s Instructions to Authors at the back of this journal.

Most scientific papers are prepared according to a format called IMRAD. The term represents the first letters of the wordsIntroduction,Materials and Methods,Results,And,Discussion. IMRAD is simply a more ‘defined’ version of the “IBC” [Introduction, Body, Conclusion] format used for all academic writing. IMRAD indicates a pattern or format rather than a complete list of headings or components of research papers; the missing parts of a paper are: Title, Authors, Keywords, Abstract, Conclusions, and

References. Additionally, some papers include Acknowledgments and Appendices.

TheIntroductionexplains the scope and objective of the study in the light of current knowledge on the subject; theMaterials and Methodsdescribes how the study was conducted; theResultssection reports what was found in the study; and theDiscussionsection explains meaning and significance of the results and provides suggestions for future directions of research. The manuscript must be prepared according to the Journal’s Instructions to Authors.

Editorial process

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Pertanika follows adouble-blind peer-reviewprocess. Manuscripts deemed suitable for publication are usually sent to reviewers. Authors are encouraged tosuggest names of at least three potential reviewers at the time of submission of their manuscript to Pertanika, but the editors will make the final choice. The editors are not, however, bound by these suggestions.

Notification of the editorial decision is usually provided within ten to fourteen weeks from the receipt of manuscript. Publication of solicited manuscripts is not guaranteed. In most cases, manuscripts are accepted conditionally, pending an author’s revision of the material.

As articles are double-blind reviewed, material that might identify authorship of the paper should be placed only on page 2 as described in the first-4 page format in Pertanika’sInstructions to Authors given at the back of this journal.

The Journal’s peer-review

In the peer-review process, three referees independently evaluate the scientific quality of the submitted manuscripts.

Peer reviewers are experts chosen by journal editors to provide written assessment of thestrengthsand weaknessesof written research, with the aim of improving the reporting of research and identifying the most appropriate and highest quality material for the journal.

Operating and review process

What happens to a manuscript once it is submitted toPertanika? Typically, there are seven steps to the editorial review process:

1. The Journal’s chief executive editor and the editorial board examine the paper to determine whether it is appropriate for the journal and should be reviewed. If not appropriate, the manuscript is rejected outright and the author is informed.

2. The chief executive editor sends the article-identifying information having been removed, to three reviewers. Typically, one of these is from the Journal’s editorial board. Others are specialists in the subject matter represented by the article. The chief executive editor asks them to complete the review in three weeks.

Comments to authors are about the appropriateness and adequacy of the theoretical or conceptual framework, literature review, method, results and discussion, and conclusions. Reviewers often include suggestions for strengthening of the manuscript. Comments to the editor are in the nature of the significance of the work and its potential contribution to the literature.

3. The chief executive editor, in consultation with the editor-in-chief, examines the reviews and decides whether to reject the manuscript, invite the author(s) to revise and resubmit the manuscript, or seek additional reviews. Final acceptance or rejection rests with the Edito-in-Chief, who reserves the right to refuse any material for publication. In rare instances, the manuscript is accepted with almost no revision. Almost without exception, reviewers’ comments (to the author) are forwarded to the author. If a revision is indicated, the editor provides guidelines for attending to the reviewers’ suggestions and perhaps additional advice about revising the manuscript.

4. The authors decide whether and how to address the reviewers’ comments and criticisms and the editor’s concerns. The authors return a revised version of the paper to the chief executive editor along with specific information describing how they have answered’ the concerns of the reviewers and the editor, usually in a tabular form. The author(s) may also submit a rebuttal if there is a need especially when the author disagrees with certain comments

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5. The chief executive editor sends the revised paper out for re-review. Typically, at least one of the original reviewers will be asked to examine the article.

6. When the reviewers have completed their work, the chief executive editor in consultation with the editorial board and the editor-in-chief examine their comments and decide whether the paper is ready to be published, needs another round of revisions, or should be rejected.

7. If the decision is to accept, an acceptance letter is sent to all the author(s), the paper is sent to the Press. The article should appear in print in approximately three months.

The Publisher ensures that the paper adheres to the correct style (in-text citations, the reference list, and tables are typical areas of concern, clarity, and grammar). The authors are asked to respond to any minor queries by the Publisher. Following these corrections, page proofs are mailed to the corresponding authors for their final approval. At this point,only essential changes are accepted. Finally, the article appears in the pages of the Journal and is

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SOCIAL SCIENCES

& HUMANITIES

A special edition devoted to

Contemporary Issues in Management & Social Sciences

VOL. 25 (S) NOV. 2017

(Special Edition)

Guest Editors

Gabriel Moens, Danture Wickramasinghe & Kashan Pirzada

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EDITOR-IN-CHIEF

Mohd. Shahwahid Hj. Othman

EDITORIAL BOARD 2015-2017

JSSH

Journal of Social Sciences & Humanities

AN INTERNATIONAL PEER-REVIEWED JOURNAL

Economics, Natural Resource & Environmental Economics, Economics Valuation

CHIEF EXECUTIVE EDITOR Nayan Deep S. Kanwal

Environmental Issues – Landscape Plant Modelling Applications

Chai Sook Keat, ScholarOne

Kanagamalar Silvarajoo,ScholarOne

Tee Syin Ying,ScholarOne

Ummi Fairuz Hanapi, Publication Officer Editorial Assistants:

Abdul Mansur M. Masih

Economics, Econometrics, Finance, King Fahd University of Petroleum and Minerals, Saudi Arabia.

Alan Maley

English Language Studies, Teaching of English Language and Literature, Leeds Metropolitan University, UK.

Ali Reza Kaldi

Medical Sociology, Sociology of Development Ageing, Gerontology, University of Social Welfare and Rehabilitation, Tehran, Iran.

Aminah Ahmad

Sociology, Gender and Development, Universiti Putra Malaysia, Malaysia.

Bee-Hoon Tan

Faculty of Social Sciences and Liberal Arts, UCSI University, Malaysia.

Deanna L. Sharpe Economics,

Consumer and Family Economics, Personal Finance, The University of Missouri, Columbia, USA. and EduPRIME the consulting, the Netherlands.

Elias @ Ilias Salleh Kuliyyah of Architecture and Environmental Design (KAED), Universiti

Islam Antarabangsa Malaysia, Malaysia.

Gong-Soog Hong

Economics, Consumer and Family Sciences, The Ohio State University, USA.

Jacqueline Pugh-Kitingan

Music, Ethnomusicology, Borneo and Papua New Guinea Studies, Universiti Malaysia Sabah, Malaysia.

James R. Stock Management

Studies, Marketing, Logistics and Supply Chain Management, Quantitative Method, University of South Florida, USA.

Jayakaran Mukundan

English Language Studies, Teaching English as a Second Language (TESL), English Language Studies, Universiti Language Teaching Methodology, the Interface of Culture and Language in Language Teaching and

Learning, and Language/Communication Training and Material Design for the Multicultural Workplace, Victoria University of Wellington, New Zealand.

Marcus Bion GRIFFIN

Human Ecology, Anthropology, Tropical Agriculture, Fisheries, Cultural Learning Solutions, USA.

Mary Susan Philip

English Language Theatre in Malaysia and Singapore; Postcolonial Theatre, Culture, Grand Valley State University, USA.

Rohany Nasir

Psychology-Career counseling, Counseling for Adolescents and Adults, Marriage and Family counseling, Consumer Behaviour, Universiti Putra Malaysia, Malaysia.

Shameem Rafik-Galea

English Language Studies, Linguistics, Applied Linguistics, Language and Communication, Universiti Putra Malaysia, Malaysia.

Shamsher Mohamad Ramadili Mohd

Finance, Corporate Governance, The Global University of Islamic Finance (INCEIF) Malaysia.

Anthropology / Southeast Asian Studies White Rose East Asia Centre, University of Leeds, UK.

Office of the Deputy Vice Chancellor (R&I) 1st_{Floor, IDEA Tower II}

UPM-MTDC Technology Centre Universiti Putra Malaysia 43400 Serdang, Selangor Malaysia. Gen Enq.: +603 8947 1622 | 1616 E-mail: executive_editor.pertanika@upm.my

URL: www.journals-jd.upm.edu.my

PUBLISHER

UPM Press

Universiti Putra Malaysia

43400 UPM, Serdang, Selangor, Malaysia. Tel: +603 8946 8855, 8946 8854 Fax: +603 8941 6172 E-mail: penerbit@upm.edu.my

URL: http://penerbit.upm.edu.my

Barbara Wejnert

Political Sociologist: Gender Studies, Macro Political and Social Changes, University at Buffalo, SUNY, USA.

Carolyn Graham Studies, Linguist, TESOL, University of Hong Kong, Hong Kong.

Faith Trent AM FACE

Education: Curriculum development, for National, Community and Social Development, International Human California State University, Chico., USA.

Handoyo Puji Widodo

English Language Center, Shantou University, China

John R. Schermerhorn Jr.

Management Studies, Management and Organizational Behaviour, International Business, Ohio University, USA.

Kent Matthews

Economics, Banking and Finance, Modelling and Forecasting the Macro Economy, Cardiff Business School, UK.

Lehman B. Fletcher Economics,

Agricultural Development, Policy Analysis and Planning, Iowa State University, USA.

Mark P. Orbe Communication, Interpersonal Communication, Communication and Diversity, Intercultural Communication, Western Michigan University, USA.

Mohamed ARIFF

Department of Economics and Finance, Sunway University, Malaysia.

Pal Ahluwalia

Pro Vice-Chancellor (Research and Innovation), African Studies, Social and Cultural Theory, Post-colonial Theory, Division of Education, Arts & Social Sciences, University of Portsmouth, United Kingdom.

Phillip Jones

Architectural Science, Sustainability in the Built Environment, Welsh School of Architecture, Cardiff University, UK.

Rance P. L. Lee

Sociology, The Chinese University of Hong Kong.

Vijay K. BhatiaEducation: Genre Analysis and Professional Communication, City University of Hong Kong

ABSTRACTING/INDEXING

Pertanika is now over 40 years old; this accumulated knowledge has resulted the journals being indexed in abstracted in SCOPUS (Elsevier), Thomson (ISI) Web of Knowledge [ESCI, BIOSIS & CAB Abstracts], EBSCO & EBSCOhost, ERA, DOAJ, AGRICOLA (National Agric. Library, USA), Cabell’s Directories, Google Scholar, MyAIS, Islamic World Science Citation Center (ISC), ASEAN Citation Index (ACI) & Rubriq (Journal Guide).

The publisher of Pertanika will not be responsible for the statements made by the authors in any articles published in the journal. Under no circumstances will the publisher of this publication be liable for any loss or damage caused by your reliance on the advice, opinion or information obtained either explicitly or implied through the contents of this publication.

All rights of reproduction are reserved in respect of all papers, articles, illustrations, etc., published in Pertanika. Pertanika provides free access to the full text of research articles for anyone, web-wide. It does not charge either its authors or author-institution for refereeing/publishing outgoing articles or user-institution for accessing incoming articles.

No material published in Pertanika may be reproduced or stored on microfilm or in electronic, optical or magnetic form without the written authorization of the Publisher.

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Preface

It is both an honour and pleasure to present to the readers this special issue of the 5th and 6th Global Conference on Business and Social Sciences 2017 (GCBSS), published under the flagship of PERTANIKA Journal of Social Sciences and Humanities (JSSH). This journal’s first publication dates back to 1993 and it is currently abstracted and indexed in SCOPUS (Elsevier), Thomson (ISI) Web of Knowledge (BIOSIS and CAB Abstracts), EBSCO and EBSCOhost, DOAJ, Cabell’s Directories, MyAIS, ISC and Rubriq (Journal Guide). The contents of the special issue are based on oral presentations made at GCBSS which were held in Kuala Lumpur and Bangkok.

The Global Academy of Training and Research (GATR) Enterprise is a registered research firm in Malaysia, which organises and sponsors the GCBSS Series, the aim of which is to provide a collegial environment for scholars, researchers, academics and practitioners to discuss, present and disseminate their research findings. The GCBSS series has been organised since 2013 in countries such as Sri Lanka, Vietnam, Australia, the United Kingdom, and Malaysia among others. The GCBSS has attracted strong support from academics, who have strong credentials in various disciplines including Business, Accounting, Law and Social Sciences.

The 5th and 6th GCBSS had attracted over 500 interesting papers from around the world. Following a rigorous and careful review process, the editors selected 27 (twenty-seven) high quality papers for inclusion in the JSSH, which focused on research outcomes. In addition, more than 200 papers were published in the Global Academy of Training and Research Journals and 20 papers in Polish Journal of Management Studies. The papers cover a wide range of disciplines such as social sciences, business, accounting, finance, and economics. These papers were written by scholars from six continents.

All the papers published in this edition underwent Pertanika’s stringent peer-review process involving a minimum of two reviewers comprising internal as well as external referees. This was to ensure the quality of the papers justified the high ranking of the journal, which is renowned as a heavily-cited journal not only by authors and researchers in Malaysia but by those in other countries around the world as well.

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The guest editors of this special issue record their appreciation to Dr. Nayan Kanwal, the Chief Executive Editor, Pertanika Journals, UPM at the Journal Division for his wisdom, generous guidance and strong commitment in publishing this special issue. This issue would not have been possible without his concerted effort.

Many other individuals also contributed to the success of this special issue. We are indebted to the referees who have put in hard work and the long hours to review each paper in a timely and professional way. Our thanks to all the members of the GCBSS International Advisory Board, session chairs, delegates and especially the members of the Organising Committee. We hope that the findings and discussions of these papers will contribute to better and effective public policy making around the world. We truly believe that our regional initiative will expand the horizon of new discoveries and we hope that you enjoy reading these papers.

Guest Editors:

Kashan Pirzada (Dr.)

Global Academy of Training & Research, Malaysia

Gabriël A Moens (Prof. Dr.)

Curtin University and University of Queensland, Australia

Danture Wickramasinghe (Prof. Dr.)

Adam Smith Business School, University of Glasgow, United Kingdom

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Pertanika Journal of Social Sciences & Humanities

Vol. 25 (S) Nov. 2017

SOCIAL SCIENCES & HUMANITIES

Journal homepage: http://www.pertanika.upm.edu.my/

What Motives Consumers to Spend?: A Study on Impulsive

Purchases

Muhartini Salim

Department of Management, Faculty of Economics and Business University of Bengkulu, Jln. WR Supratman, Kandang Limun 38121 Kota Bengkulu, Indonesia

ABSTRACT

This research is based on Rook and Fisher’s (1995) theory of taxonomy that explains the reasons for impulsive purchase. The aim of this study was to understand the motivations for hedonic expenditure and utilitarian expenditure physical environment, personality and culture as moderating variables on impulsive purchases. A total of 400 respondents who shopped at a souvenir store in Bengkulu, Indonesia were interviewed. The SmartPLS 2.0, a statistical technique, was used to identify the variables. Results showed physical environment, personality, and culture partially and positively affected impulsive purchases. Lifestyle however, has no effect on impulsive purchases. Second, there was the difference between hedonic expenditure motivation and utilitarian expenditure motivation. Third, motivation for hedonic expenditure was stronger.

Keywords: Culture, lifestyle, impulsive purchases, hedonic, utilitarian

INTRODUCTION

A well organised marketing strategy would be able to influence customers’ purchasing decisions. The purchase decision is based on need recognition. Before purchasing

ARTICLE INFO Article history: Received: 20 May 2017 Accepted: 01 October 2017

E-mail addresses:

muhartinisalim@unib.ac.id (Muhartini Salim)

goods and services, the consumer must plan what and where to buy as well as the cost. However, in other cases, the purchases could immediately without much thought. These are called unplanned purchases or impulsive purchases.

According to Bellenger, Robertson and Hirschman (1978), consumers usually plan to shop in advance but sometimes impulsive purchases can happen. Based on this theory, the purchases at some Batik Bersurek souvenir stores in Bengkulu may

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be impulsive, as consumers come to the store to buy souvenirs from Bengkulu, without actual knowledge of what to buy, while the store itself sells a variety of items including Batik Bersurek. According to Smith and Colgate (2007), situational factors like the physical environment influences consumers to make impulsive purchases. In addition to situational factors, personality variable could also influence impulsive purchases (Delafrooz, Taleghani, & Farahzad, 2013). Culture has effect on consumer impulsive purchases at both individualistic and collective level (Kacen & Lee, 2002). Lifestyle affects impulsive purchases individually and collectively (Sarki, Bhutto, Arshad, & Khutro, 2012; Sun, Horn, & Merritt, 2004). Consumers are motivated by consumption value or hedonic value, and utilitarian value (Babin, Darden, & Griffin, 1994). Hedonic expenditure is motivated by desire, novelty and surprises (Hausman, 2000) while utilitarian expenditure is task-oriented, rational and cognitive (Babin et al., 1994).

Two studies (Luk, Sharma, & Chen, 2013; Wang, Chou, & Chang, 2009) used the hedonic and utilitarian motivations as moderation effects of independent variables (beliefs perceived, user attitude, sacrifice, value, satisfaction) on dependent variables (information quality, behaviour intentions). Moderation effects of motivation expenditure (hedonic and utilitarian) are used to see how strong the effect of independent variables on the dependent variables, and to determine which is stronger, hedonic or utilitarian expenditure motivation.

This research is based on Rook and Fisher’s theory (1995) which believes that impulsive purchase is an inclination where consumers buy spontaneously, without consideration. Impulsive purchases happen due to many factors known as variables such as physical environment (Baker, Grewal, & Parasuraman, 1994; Stoltman, Morgan, & Linda, 1999) personalities (Delafrooz et al., 2013; Shell, 2002), collective culture (Hofstede, 2001; Luna & Gupta, 2001; Nakata & Sivakumar, 2001; Yoo, 2009) and lifestyle (Assael, 1992). This research also used hedonic value factor and utilitarian value factor (Babin et al., 1994) as moderating variables.

This study examines the influence of i ndependent vari ab l es (physi cal environment, personality, culture and lifestyles) on impulsive purchases. It confirms the findings of Wang et al. (2009) and Luk et al. (2013) using different independent variables and dependent variables. The independent variables are physical environment, personality, culture and lifestyle while the dependent variable is impulsive purchases.

The findings of this study contribute to knowledge on the positive effect of physical environment, personality, culture and lifestyle on impulsive purchases. The study shows the motivation for hedonic expenditure and utilitarian expenditure is influenced by the physical environment, personality, culture and lifestyle. Findings show hedonic motivation is stronger than utilitarian expenditure on impulsive purchases.

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Motivation for Consumer Expenditure LITERATURE REVIEW

According to Khan, Humayum, & Sajjad (2015), impulsive purchase is an unplanned purchase that occurs when customers experience a sudden urge to buy something, directly and spontaneously without advance planning. Rook & Fisher (1995, p. 308) describe impulsive purchase as below:

often buy things spontaneously: just do it describes the way I buy things: I often buy a thing without thinking: I see it, I buy it describes me: buy now, think about it later describes me: some time I feel like buying things on the spur of the moment: I buy things According to how I feel at the moment: I carefully plan most of my purchase: sometimes I am reckless a bit about what I buy.

This study used five of 9 indicators of impulsive purchases gleaned from the above:

The physical environment or atmosphere of the store has a stronger influence on consumer purchasing decisions than the products offered (Roslow, Sydney, Li, & Nicholls, 2000; Stoltman et al., 1999). In-store stimulus also influences impulsive purchases (Abratt & Goodey, 1990). Dimension of physical environment (atmosphere) according to Baker et al. (1994) are: ambient factors (indicators: music, lighting, aroma); design factors (indicator: floor coverings, display, colour, cleanliness, layout); social factors (indicator: seller). According to Stoltman et al. (1999), physical environment is the availability

of products, store employees, parking availability and store atmosphere. The physical environment indicators are the layout, availability of products, employees, store atmosphere and design. The following hypotheses are proposed:

H1: Physical environment has a positive influence on impulsive purchases.

According to Schiffman and Kanuk (2008), personality is how a person’s responds to the environment. Delafrooz et al. (2013) showed among the five personality characteristics (extraversion, hospitality, coscientiousness, neuroticism, openness) extraversion and hospitality have an immediate and positive effect on compulsive and impulsive purchases. This study looked at extraversion and hospitality in influencing purchasing decision (Schell, 2002). Extraversion is feeling of happiness among people, easy to laugh, chatty, happy, cheerful spirit, and very active. Hospitality means politeness, being cooperative with others rather than competitive, prudent and tolerant. The following hypothesis is proposed:

H2: Personality has a positive effect on impulsive purchases.

Many researchers see culture as an important determi nant of consumer behaviour (DeMooij & Hofstede, 2010). According to experts Luna and Gupta (2001) collectivist consumers tend to focus on families and groups when making purchasing decisions while individualist consumers tend to prioritise private interests. Triandis (1995) and Rook (1987) indicated that

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culture is very influential on impulsive purchases. According to Hofstede (1980), collectivist and individualistic dimension is the most important cultural factor on impulsive purchases. People in collectivist culture appreciate their group membership and respect group decisions (Wong & Ahuvia, 1998). According Nakata and Sivakumar (2001), people in the collectivist community sacrifice their personal interests for the welfare of the community. The indicators used in this study are families and groups, customer-seller relationship, trust, community sacrifice, and equality.

Thus, the following hypothesis is proposed:

H3: Culture has a positive effect on impulsive purchases

Lifestyle describes the activities and interests that interact with the environment using psychographics (Kotler, 2009). Psychographics is an instrument to measure lifestyle, which provides quantitative measurements of the market. According to (Assael, 2004), psychographics is a measure of AIO (activity, interest, and opinion) which are dimensions of lifestyle. Bashir, Zeeshan, Sabbar, Hussain and Sarki (2013) found that cultural values and lifestyle have a significant impact on consumer’s impulsive purchasing behaviour in Pakistan. Thus, the indicators used in this study are activity, interest and opinion.

The following hypothesis is as proposed: Lifestyle has a positive effect on impulsive purchases.

According to (Arnold & Reynold, 2003; Babin et al., 1994; Kim, 2006) expenditure motivation is driven by hedonic and utilitarian factors. Wang et al. (2009) showed that motivation for hedonic and utilitarian expenditure moderate the relationship between the perceived belief and confidence in Web 2.0 applications. It was found the relationship between the perceived benefits and consumer attitude was stronger for consumers with utilitarian motivation. In contrast, the relationship between perceived ease utilisation, consumer attitudes and behavioural intentions was stronger for consumers with hedonic motivation. Some theories of hedonic dimension have been proposed. Hedonic value dimension consists of pleasure and adventure, according to Rintamaki, Kanto, Kuusela and Spence (2006). According to Babin et al. (1994) hedonic dimensions are: pleasure, shopping experience enjoyment, and perceived freedom. Utilitarian expenditure is task-oriented, rational and cognition (Babin et al., 1994). This study found hedonic and utilitarian expenditure motivation can be used as the moderation influence of independent variable on dependent variable. Utilitarian dimensions, according to Kim (2006), are achievement and efficiency. In the present study, it was found hedonic expenditure was motivated by pleasure, experience, freedom, problem ignorance and fantasy of the customers This study also used utilitarian expenditure motivation indicators, task-oriented, rational, cognition (knowledge), efficiency and achievement.

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H5

H6

H7

H8

Motivation for Consumer Expenditure

Therefore, the following hypotheses are proposed:

H5: There is a difference between hedonic expenditure and utilitarian expenditure motivation which is moderated by the physical environment

H6: There is a difference between the hedonic and utilitarian expenditure motivation which is moderated by the personality of the purchaser.

H7: There is a difference between hedonic expenditure and utilitarian expenditure motivation which is moderated by culture.

H8: There is a difference between hedonic expenditure motivation and utilitarian expenditure motivation which is moderated by lifestyle.

Figure 1 is based on the framework of the study:

Expenditure Motivation: Hedonic

andUtilitarian

Physical Environment

Personality

Culture

H1

H2

H3

H4

Impulsive Purchases

Lifestyle

Figure 1. The relationship between Variables

Notes: Figure 1. The relationship between Variables Influence of independent variables on dependent variable

N_Mo_ot_de_es_r:_{ating influence of independent variables on dependent variable}

Sources:Adapted from Assael et al. (2013); Babin et al. (1994); Delafrooz et al. (2013); Hofstede (2001); Stolman et al. (1999)

METHO_SD_ouS_{rces: Adapted from Assael et al. (2013); Ba}S_ba_inm_etp_al_li_.n₍g₁₉M₉₄₎e_;t_Dh_eo_lad_{frooz et al. (2013);}

Types ofHDofastteadea(2n0d01R); Setsoelmaarnceht aAl.p(1p99r9o)ach

Data for this study was obtained from survey based on a questionnaire.

The study population were impulsive consumers who shopped at the souvenir stores Bengkulu city. Non probability

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Muhartini Salim

sampling was employed in which people were selected based on the purpose of research. According to Hair, Anderson, Tatham and Blak (1998) SEM requires a representative sample in multivariate data analysis research of 5 or 10 multiplied by the number of indicators or a minimum of 100 samples.

I n t h i s s t u d y, t h e r e w e r e 4 0 0 questionnaires based on 40 indicators. The questionnaire was administered to those who shopped at Batik Bersurek in souvenir stores at Sukarno Hatta street Bengkulu City, Indonesia from October 2015 to January 2016.

Validity and Reliability

a. Validity Test

This study used convergent validity test with indicators assessed via factor loading (correlation between scores item /

component score with the construct score) of indicators that measures the construct. The factor loading value greater than +/- 0.30 indicates compliance with the minimum level, the loading factors value of +/- 0.40 is considered better and in accordance with the rules of thumb used by researchers, and the loading factor of > 0.50 was considered significant (Hair et al, 1998).

Chin (1998) rule of thumb used for convergent validity is outer loading of > 0.7, Communality of > 0.5, and Average Variance Extracted (AVE) of > 0.5. Impulsive Purchases Indicator, Physical Environment, Personality, Culture and Lifestyle, have value of factor loading of more than 0.7, as seen in Table 1. Value of AVE and Communality of more than 0.5 is seen in Table 1. Based on Chin (1998), it can be concluded that all the indicators

above were valid.

Table 1

Summary of validity test result

Item Factor loading AVE Communality

Impulsive purchase

Spontaneously 0.806

0.6287 0.6289

Thoughtlessly 0.702

Quick buying 0.819

Buying first and think later 0.845

Buying impulsively

Physical environment

0.784

0.708 0.708

Interesting layout 0.845

Product availability 0.874

Well trained employee 0.810

Comfortable room atmosphere 0.884

Interesting room design

Personality

0.790

0.718 0.718

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Table 1 (continue)

Item Factor loading AVE Communality

Happy to be among people 0.870

Feeling happy on duty 0.838

Love to communicate with other people 0.712

Enthusiast 0.839

Very active 0.889

Easy going 0.882

Polite 0.844

Cooperative 0.814

Ready to please 0.852

Wise and tolerant 0.918

Culture 0.651 0.651

Friends’ influence 0.818

Recommend to friends 0.755

Never forget to buy 0.889

To ensure smooth business 0.779

Because a friend buys 0.786

Lifestyle 0.637 0.637

I love batik 0.780

I stop shopping if I have bought batik 0.866 Loving new things is my lifestyle 0.733

Interesting goods 0.812

The sellers serve the consumers well 0.793 Source: The data was processed for SmartPLS 2.0 (2016)

b. Reliability Test

The reliability test in PLS is based on two methods: Cronbach’s alpha and composite reliability. The rule of thumb or composite

Table 2

Summary table of reliability test result

Item Cronbach Alpha

Composite Reliability

reliability alpha value should be greater than Impulsive purchase 0.851 0.894_{Physical environment 0.898 0.923}

Personality 0.956 0.923

0.7 though the value of 0.6 is acceptable

(Hair et al., 1998). Cronbach’s alpha values Culture 0.866 0.904

and Composite reliability for each variable Lifestyle 0.861 0.897

indicator above were 0.7, as seen in Table 2. It can be concluded that the instrument used in this study was reliable (Hair, Bush, & Ortinau, 2006).

Source:The data was processed for SmartPLS 2.0 (2016)

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Muhartini Salim

Method of Analysis

Data was analysed using inferential statistic.

Inferential statistical analysis

Inferential statistical used in this research was Structural Equation Modeling (SEM), hereinafter referred as SEM using SmartPLS 2.0. According to Hair et al. (1998), SEM allows for an analysis of the series of connections simultaneously to provide statistical efficiency. Moderation shows the interaction between the moderator variable and independent variables (predictors) in influencing the dependent variable. Testing the effect of moderation in linear regression can be done using Baron and Kenney’s (1986) approach, First is to test the significancy of the primary (independent influence on the dependent), and second is to test the significancy of the moderator variable to the dependent variable.

Hypotheses 1 to 4 were tested using PLS. The scores of paths coefficient or inner model of a t-statistic value must be above 1.96 for two-tailed hypothesis and must be above 1.64 for one-tailed hypothesis in testing at alpha 5 percent and power 80 percent (Hair et al., 1998). Hypotheses 5 through 8 were tested using t test to see the difference between the different samples.

The formula used was based on (Sarkar, 1998).

Note:

t = t test

βk = Beta Coefficient

SSE = Standard of Deviation

K = number of variables in the regression

Df = Degrees of Freedom

Testing criteria are:

- If t-test < t table at alpha of 0.05: hence there is no difference between hedonic and utilitarian expenditure motivation as the moderation effects of independent variable influence (physical environment, personality, culture, lifestyle) against impulsive purchases.

- If t-test > t table at alpha of 0.05: hence there is difference between hedonic and utilitarian expenditure motivation as the moderating effects of independent variable (physical environment, personality, culture, and lifestyle) against impulsive purchases.

In order to facilitate calculation and hypothesis testing, SmartPLS 2.0 software

was used in this study.

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Motivation for Consumer Expenditure DATA ANALYSIS AND HYPOTHESES

TESTING

Data was validated via a validity and reliability test. They hypotheses was subjected to and Structural Equation Modeling (SEM) using Partial Least Squares (PLS) or SmartPLS 2.0 and Differential test (t-test). The results based on SmartPLS 2.0 are shown in Figure 2, while the result of Differential test (t-test) is shown in Table 3.

Hypothesis 1: Physical Environment has a positive effect on impulsive purchases

The results of beta coefficient of 0.249 and t value of 2.446 ort > 1.64 (one-tailed hypothesis) indicated physical environment has a positive influence on impulsive purchases (see Figure 2). This means the better the physical environment the higher the chances are for impulsive purchases.

Hypothesis 2: Personality has a positive effect on impulsive purchases

The results of beta coefficient of 0.233 and t value of 3.576 ort > 1.64 (one-tailed hypothesis) showed personality has a positive effect on impulsive purchases, can be seen in Figure 2. This means that if the personality of consumer was considered deliberately, impulsive purchases will occur.

Hypothesis 3: Culture has a positive effect on impulsive purchases

The results of beta coefficient of 0.244 and t value of 2.173 or t > 1.64 (one-tailed hypothesis) showed culture has a positive

effect on impulsive purchases, as can be seen in Figure 2. This means that if the culture of consumer was considered deliberately, the chances for impulsive purchases will be higher.

Hypothesis 4: Lifestyle has a positive effect on impulsive purchases

The results of beta coefficient of 0.122 and t value of 0.878 or t<1.64 (one-tailed hypothesis), showed that lifestyle does not have a positive effect on impulsive purchases, can be seen in Figure 2. This means that if the lifestyle of consumer was considered deliberately, impulsive purchases will not increase.

Hypothesis 5: There is a difference between hedonic and utilitarian

expenditure in moderating the influence of physical environment on impulsive purchases

The t test results was 21.908, where the value of t table is 1.64 (one-tailed hypothesis). It meant the t test > t table so it showed the difference between hedonic expenditure motivation and utilitarian expenditure motivation (see Table 3). Additionally, Table 3 also shows which variable between hedonic and utilitarian expenditure motivations that has stronger influence of the pysical environment on the impulsive purchases. Because t1 of hedonic variable is positive it can be concluded that motivation for hedonic expenditure is stronger.

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Muhartini Salim Hypothesis 6: There is a difference

between hedonic and utilitarian

expenditure in moderating the influence of personality on impulsive purchases

The results showed t test of 3.046 where the value of t table is 1.64 (one-tailed hypothesis). It meant the t test > t table so it showed the difference between hedonic expenditure motivation and utilitarian expenditure motivation (see Table 3). Because t1 of hedonic variable is positive it can be concluded that the motivation for hedonic expenditure is stronger.

Hypothesis 7: There is a difference between hedonic and utilitarian

expenditure in moderating the influence of culture on impulsive purchases

The results showed t test is 15.276 where the value of t table is 1.64 (one-sided hypothesis). It meant the t test > t table so it showed the difference between hedonic

expenditure motivation and utilitarian expenditure motivation (see Table 3). Because t1 for hedonic variable is positive it can be concluded the motivation for hedonic expenditure is stronger.

Hypothesis 8: There is a difference between the hedonic expenditure motivation and utilitarian expenditure motivation as moderation influence of life style on impulsive purchases. There is a difference between hedonic and utilitarian expenditure in moderating the influence of lifestyle on impulsive purchases

The results for hypothesis 4 are inconclusive, namely lifestyle doesn’t have an effect on impulsive purchases. According to Baron and Kenney (1986), moderation effects in linear regression should indicate independent variables affect the dependent variable.

Figure 1. Summary figure of structural model output Source:The data was processed (2016)

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Table 3

Summary table of differential test

Parameter t test =

Personality

t test = Physical environment

t test = Culture t test = Lifestyle

IV to DV IV to DV IV to DV IV to DV

SSE1+SSE2 0.3487 0.165 0.111 0.154

b1-b2 0.208 0.273 0.089 0.112

df1+df2 398 398 398 398

total b1 66.571 17.934 10.134 11.772

total b2 11.484 30.054 10.784 2.483

t test 3.046 21.907 15.276 20.304

b1 0.556 0.564 0.289 0.282

b2 0.347 0.291 0.199 0.170

df1 0.074 242 242 242

df2 156 156 156 156

t1 2.020 11.263 6.890 5.808

t2 4.761 2.530 2.883 4.160

b1/t1 = Hedonicb2/t2 = Utilitarian Source:The data was processed (2016)

RESULTS AND DISCUSSION

T hi s secti on focuses on t esti ng t he hypotheses of the study.

Influence of Physical Environment on impulsive purchases

This study showed physical environment i nfl uenced posi t i vel y on i mpul si ve purchases. According to Dunne and Lusch (2005), store environment is important for a retail business because almost 70% of the purchase turned out to be an impulsive purchase or unplanned purchases. Store environment according to Levy and Weitz (2004) is a combination of the physical characteristics of the store, such as architecture, layout, display colour, lighting, temperature, music, and aroma, which as a whole, creates an image in the minds of

consumers. Thus, Indonesia retailers must pay attention to the physical environment, especially the layout, the availability of the products, attentive employees, room atmosphere, temperature and design.

Influence of Personality on impulsive purchases

This study examined whether personality has a positive effect on impulsive purchases. The results showed personality has a positive influence on impulsive purchases. This finding supports that of Delafrooz et al. (2013) i.e. among the five personality characteristics, extraversion and hospitality have a direct and positive effect on compulsive and impulsive purchases.

Thus, the owners of the souvenir stores must ensure their advertisements target

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Muhartini Salim

extraversion personality of its customers (people who are energetic, social, brave, active, confident) and their products must be attractive that suits the personality of the consumer.

Influence of Culture on impulsive purchases

This study looked at whether culture has a positive effect on impulsive purchases. The results showed culture has a positive influence on impulsive purchases. This is consistent with the findings of Bashir et al. (2013) that indicated cultural values and lifestyle of Pakistani consumers had a significant influence on impulsive purchases. Thus, the Batik Bersurek products must have names that have the collective cultural meaning. It is also suggested that the advertisements should reflect social values corresponding with the collective culture.

Influence of lifestyle on impulsive purchases

This study examined whether life style has a positive effect on impulsive purchases. The results showed lifestyle did not have a positive influence on impulsive purchases. These findings were not supported by Bashir et al. (2013) who reported that cultural values and lifestyle of Pakistani consumers had a significant influence on impulsive purchases. It has to be noted the current findings cannot be generalised to the population in general.

The moderating influence of physical environment on impulsive purchases

The results of this study showed physical environment has a moderating influence on the motivations behind hedonic and utilitarian expenditure in relation to impulsive purchases. Hedonic expenditure is boosted by the physical environment to make impulsive purchases. Based on these findings, the owners of souvenir stores in Bengkulu city must create proper physical environment (layout, product availability, employees, and design) to entertain, entice and meet consumers’ needs.

Personalityas a moderating influence on

impulsive purchases. The findings indicate the moderating influence of personality on impulsive purchases whereby the personality of the consumer strengthens motivation for hedonic expenditure. Thus, the owners of souvenir stores must create brands that target consumers motivated by hedonism.

Culture as a moderating influence on impulsive purchases

Results showed culture has a moderating influence on impulsive purchases and in particular hedonic expenditure. Therefore, the owners of souvenir stores in Bengkulu city must create appropriate advertisements targeting collectivist culture that support hedonic expenditure.

Lifestyle as a moderating influence on impulsive purchases

Findings were inconclusive since lifestyle did not influence impulsive purchases.

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Motivation for Consumer Expenditure CONCLUSION

This study has shown physical environment has a positive influence on impulsive purchases of shoppers at Batik Bersurek. This indicates that the impulsive purchases can be increased by improving the physical environment (layout, availability, services, temperature and design), by rearranging the display, ensuring stock availability, upgradi ng servi ce, and redesi gni ng products. Personality influences positively on impulsive purchases of Batik Bersurek. It was found extraversion and hospitality can increase impulsive purchases. It is also suggested that product brand, promotion and advertisement could accommodate extraversion personality and hospitality in order to increase impulsive purchases.

Culture also has positive influence on impulsive purchases. This study examines collectivist culture where decision making is based on kinship and group could increase impulsive purchases. Thus, shop owners should encourage the product advertisements that emphasise on collectivist culture in order to increase impulsive purchases.

This study also shows lifestyle has no effect on impulsive purchases. Though some earlier researches (Bashir et al., 2013) showed the contrary, that is relatively in limited scope only and it cannot be generalised as universal.

The physical environment has a positive influence on impulsive purchases as shown in the present study. Hedonic expenditure motivation is boosted by the physical environment and thus, the study strongly recommends shops owners create

a favourable physical environment to encourage hedonic expenditure motivation Personality has a positive influence on impulsive purchases in particular hedonic expenditure. Hence, it is recommended that aggressive brand and product advertisements that target extraversion personality be considered.

Culture has a positive influence on impulsive purchases and the personality of the consumer boosts hedonic expenditure. This study recommends shops to create suitable advertisements that support collectivist culture and hedonic consumers.

This study has discussed the theory on behaviours that motivate impulsive purchases. The study has limitations, namely where the whole independent variables cannot be tested to affect dependent variables. There were four independent variables: physical environment, personality, culture, and lifestyle while dependent variable was impulsive purchases. Only three independent variables (physical environment, personality, culture) had an effect on impulsive purchases while the lifestyle variable did not have any effect on impulsive purchases.

Future research may look at time variable as a situational factor influencing impulsive purchases and moderated by hedonic and utilitarian expenditure motivation. This study used hedonic expenditure motivation and utilitarian expenditure motivations as moderating variables and found the former is superior. Another moderator variables that can be used in the future studies are gender

(male or female).

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Journal of Social Sciences Humanities

About the Journal

SOCIAL SCIENCES

& HUMANITIES

Contemporary Issues in Management & Social Sciences

VOL. 25 (S) NOV. 2017

JSSH

Preface

Pertanika Journal of Social Sciences & Humanities

Vol. 25 (S) Nov. 2017

Contents

SOCIAL SCIENCES & HUMANITIES

What Motives Consumers to Spend?: A Study on Impulsive

Purchases