Factors Affecting Consumers’ Impulsive Buying Behavior on Marketplace
Ilena Pramesita Arifin1*, Nurrani Kusumawati1
1 School of Business and Management, Institute Technology Bandung, Bandung, Indonesia
*Corresponding Author: [email protected] Accepted: 15 August 2022 | Published: 1 September 2022
DOI:https://doi.org/10.55057/ajrbm.2022.4.3.11
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Abstract: The developments of technology have changed consumer behavior in shopping where consumers spend more time shopping online through the marketplace. More and more marketplace users indicate that online behavior is increasing by consumers and can later increase the tendency to make impulse buying. Impulsive buying online through the marketplace do happen a lot, but the cause of this happening is still not known for certain.
Therefore, this study aims to determine the factors that can influence impulse buying in the marketplace, both internal and external factors: sales promotion. This research will be conducted using quantitative methods with online surveys. The online survey obtained 200 respondents from generation Y women who came from Jakarta. The data were analyzed by multiple regression method using the SPSS 25 application. This study shows that five of the eleven hypotheses are accepted and significantly influence impulsive buying behavior where sales promotions, internal personality trait extraversion, impulsive buying tendency, and materialism have a positive and significant relationship with impulsive shopping behavior.
However, the personality trait agreeableness has an inverse relationship where the lower the agreeableness level, the higher consumers make impulsive buying. With the results obtained, this study can help the marketplace and/or sellers in the marketplace to create marketing strategies and increase sales.
Keywords: impulsive buying, marketplace, internal factors, sales promotion
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1. Introduction
In Indonesia, the marketplace is growing rapidly. One of the factors that influence the growth of the marketplace is the development and mindset of people who are more dynamic and able to follow or adapt to something new. According to the Indonesian Internet Service Providers Association (APJII) survey results for the 2019-quarter II/2020 period, Indonesia’s number of internet users reached 196.7 million. This is also influenced by the Covid-19 pandemic where the various stages of lockdown in Indonesia made 37% of new consumers in Indonesia switch to Internet economy services. Likewise, the time spent online went from 3.6 hours per day to 4.7 hours per day during the lockdown (e-Conomy SEA report 2020). This certainly proved that people have had a life that cannot be separated from the internet and indicated that they have an electronic lifestyle. This electronic lifestyle is what underlies the Indonesian people as marketplace users. Online shopping activities through the marketplace are modern shopping activities that many people like without limiting gender, age, country, and other circles. Even people who previously did not have time to shop can now shop to fulfill their needs and wants
anytime and anywhere, without having to go to a store directly. According to the We Are Social survey results in April 2021, Indonesia ranks first in the use of e-commerce in the world with a percentage of 88.1% (Lidwina, 2021). This indicates that online shopping transactions in Indonesia, including the marketplace, are in great demand.
Based on the number of monthly visitors, the top five marketplaces in Indonesia are Tokopedia, Shopee, Bukalapak, Lazada, and Blibli (iPrice Group, 2021). On the other hand, based on the Top Brand Index phase 2 2021 by measuring three parameters, namely top of mind, last usage, and future intentions, Shopee is ranked first with a top brand index of 41.8% and then followed by Tokopedia (16.7%), Lazada (15.2%), Bukalapak (9.5%), and Blibli (8.1%). However, among the five marketplaces, only Tokopedia and Shopee have always been the top two marketplaces in Indonesia for the last two years based on monthly web visitors. This makes Shopee and Tokopedia always compete for market share in Indonesia.
The Covid-19 pandemic also supports the growth of the e-commerce industries where the Covid-19 pandemic has had an impact on changes in consumer behavior itself. According to data from the Badan Pusat Statistik (BPS), during the Covid-19 pandemic shackled Indonesia, people's interest in shopping online increased. Meanwhile, from the survey results from Populix, the millennial generation is one of the categories of the age cohort that spend a lot of time shopping online during the pandemic (Populix, 2020). This is also supported by the data from the Social Demographic Survey of the Impact of Covid-19 held by the Badan Pusat Statistik (BPS), where 54 of the 100 millennial generation respondents who shopped online during the Covid-19 pandemic were women (Fitriani, 2020). Research conducted by Mastercard also stated that 50% of Indonesian millennials are the most impulsive consumers in Asia Pacific where half of spontaneous purchases of goods are above the regional average of 26% (Erlangga, et al., 2022). In addition, choosing the millennial generation is because the majority are already financially independent in the age range of the millennial generation. So that there are no obstacles in making purchases through the marketplace for the millennial generation. An increase in public interest in shopping occurs in e-commerce, BPS also caught a shift in people's consumption patterns in the marketplace in 2020. Besides that, according to Mont (2012) in Rahma & Septrizola (2019), an increase in the number of e-commerce users also means an increase in consumer behavior online, which can increase the tendency to make unplanned purchases online. Therefore, the authors chose e-commerce specifically in the marketplace as the object of this research.
Unplanned purchases are also known as impulsive buying. Impulsive buying is a condition where consumers tend to make unplanned purchases, act quickly, and without evaluation.
According to Li (2015) in Karim et al. (2021), impulsive behavior is unintentional, unreasonable buying due to physical proximity and emotional connection with the sought goods and resulting in personal satisfaction. In this buying behavior, consumers would have a strong desire to buy something immediately. Impulsive buying is a complex situation that can lead to emotional conflict. Consumers who are emotionally involved in a purchase are less likely to use logic in their decision-making process, and purchases are more likely to be made without regard for the considerations or consequences.
According to Utami (2011) in Miranda (2016), the phenomenon of impulse buying in Indonesia tends to be larger than in other countries in Southeast Asia. This statement is also supported by Susanta (2007) who states that most Indonesian consumers have an unplanned character (Ganawati, Sudarmini & Sariani, 2018). Based on the preliminary survey that the author has conducted in 2021, as many as 63.5% of 115 respondents admitted that they like to do impulse
buying in marketplaces with varying frequency levels. Some do impulse buying once to twice a month, three to five times a month, once every two months, and some even admit that they make impulse purchases once a week. This shows that the phenomenon of impulsive buying does exist and brings great opportunity. However, there is no clear explanation as to why they make impulse buying in the online marketplace.
Several researchers have conducted research related to impulsive buying behavior on internal and external factors. Hendrawan & Nugroho (2018) in their study among Indonesian young consumers found that impulsive buying can be influenced by personality extraversion and agreeableness. Shakaib Farid & Ali (2018) who researched the impulsive buying phenomenon among Pakistanis stated that agreeableness personality did not have a significant effect and other personalities such as extraversion, openness, conscientiousness and neuroticism actually had an effect on unplanned purchases. Meanwhile, a study from India conducted by Badgaiyan
& Verma (2014) stated that apart from being influenced by personality factors extraversion and conscientiousness, impulsive buying was influenced by materialism, shopping enjoyment tendency, impulsive buying tendency, and also cultural trait collectivism. Thus, it can be concluded that a study related to impulsive buying with the same indication of internal factors does not necessarily have the same results because the unit of analysis is different. Apart from unit analysis, several previous studies also used different research objects, some of which examined impulsive buying in offline stores (Chein, Hui, & Chan, 2020; Badgaiyan & Verma, 2014; Shakaib Farid & Ali, 2018) and online stores (Hendrawan & Nugroho, 2018; Erlangga, et al., 2022).
Furthermore, according to Al Mutanafisa & Retnaningsih (2021), impulsive buying on online platforms often occurs because it is supported by external factors, namely sales promotion. It can be seen from the results of observations of the marketplace, that each marketplace periodically offers sales promotions to boost sales and/or build awareness. Even wars between marketplaces in offering sales promotions often occur. Based on research conducted by Snapcart, as many as 77% of consumers in Indonesia admitted that Shopee was the most remembered brand and was continued by Tokopedia with a percentage of 18%. And from the survey, there are three programs that are most in-demand by respondents, namely 88% of consumers like Shopee Big Ramadan Sale, and 41% of consumers like Tokopedia Ramadan Ekstra (Syahputra, 2022).
Therefore, based on the above phenomenon, previous studies have shown that factors such as promotional activities, personality traits, cultural traits, propensity for shopping pleasure, propensity for impulse buying, and materialism can all drive unplanned purchases. This makes the authors interested in conducting research to examine external and internal factors that may influence impulse buying in the marketplace: Shopee and Tokopedia, especially millennial women. Because understanding the factors that influence the magnitude of impulse-buying behavior is important for marketplaces to develop strategies to maximize stimulation of online consumers while buying more impulsive.
2. Literature Review
Impulsive buying is a condition where consumers tend to make unplanned purchases, act quickly, and without evaluation. According to Bellenger, Robertson, and Hirschman (1978) and Stern (1962) in Kalla & Arora (2011), impulsive buying is a phenomenon generally synonymous with unplanned buying: any purchase made by the shopper and not pre-planned.
It is said to be unplanned buying because this impulsive purchase is based on the irrational
thinking of consumers (Iriani, et al., 2021). Meanwhile, according to Rook & Fisher (1995), the characteristics of impulsive buying can be seen from: purchases that are made spontaneously and encourage consumers to buy immediately, lack of control when making purchases where consumers will put other things aside and act quickly, the desire to buy suddenly followed by emotions such as exciting or thrilling, and ignoring the consequences after making a purchase.
Impulsive buying can happen anywhere, anytime, and even in everyday life. According to Gąsiorowska (2011), Impulsive buying occurs when a person suddenly purchases a product without thinking, without expecting to buy the item, and when the urge to purchase comes spontaneously. Consumers can be influenced by the presence of a product, either because they are excited or stimulated by the item, or because they are trying to avoid thinking about purchasing the item. People who buy things impulsively tend to have low intellectual control (not considering utility criteria, not having reasons for purchasing, not considering consequences of their purchase, appearing happy as a way to put off buying a product). They can also have high emotional arousal (being excited or stimulated by the product itself, or by being in the buying situation) (Gąsiorowska, 2011). So it can be said that consumers here make purchases without realizing it and only to satisfy temporary emotions.
This section studies the appropriate independent variables that affect the dependent variable (impulsive buying behavior). Here are eleven factors that are explored in this study.
Neuroticism
Neuroticism is a dimension that concerns the self-confidence and comfort of an individual starting from emotional stability and general temperament (Ackerman, 2017). This dimension basically has negative traits such as anxiety, insecurity, unhappiness, irritability, moodiness, and even vulnerability to stress disorders and depression. Therefore, this neuroticism is often referred to as emotional instability. Meanwhile, the positive side of this dimension can be called emotional stability, which tends to be more confidence and has calmer emotions in dealing with problems. According to Erlangga, et al. (2022) the higher the individual's neuroticism, the higher the consumer's impulsive buying behavior. This is because individuals who have high scores will tend to have unstable emotions so they are prone to irrational and illogical thinking which of course can lead to impulsive things. In previous studies conducted by Shahjehan, Jaweria, Qureshi, Zeb & Saifullah, (2012) and Silvera, Lavack, & Kropp (2008) in Shakaib Farid & Ali (2018), individuals will feel more relaxed and a little relieved because they do impulsive buying. A study by Miao, et al. (2020) ) also stated that there is a positive impact between neuroticism and impulsive buying behavior where impulse purchasing can help neurotic people in overcoming stress and anxiety. This means that there is a significant and positive correlation between neuroticism and impulsive buying. Therefore, the hypotheses
H1. Neuroticism has significant positive influence on consumers’ impulsive buying behavior in the online marketplace.
Agreeableness
Ackerman (2017) states that agreeableness is a dimension of how well individuals interact with other people. Agreeableness is a personality that has a great desire to help others, is gentle, and can be trusted. Individuals who have a high agreeableness value will tend to have good interpersonal traits such as being trustworthy, able to cooperate, and also being obedient.
Meanwhile, individuals who have a low agreeableness value will behave otherwise. According to Verpanklen & Hebaidi (2001) in Badgaiyan & Vermer (2014), if it is associated with
impulsive buying, individuals who have a high score on agreeableness will think before making a purchase in the sense that the individual will be much wiser. Thus the hypothesis,
H2. Agreeableness significantly has a negative influence on consumers’ impulsive buying behavior in the online marketplace.
Extraversion
Extraversion is an individual's personality that is more open, such as happy when interacting with other people. Therefore, this personality tends to be more sociable and lives in groups. A high level of extraversion indicates that the individual looks more talkative, assertive, and cheerful. While a low level of extraversion indicates that the individual tends to have a quiet, shy, and aloof attitude. Eysenck and Eysenck (1985) suggest that individuals who have an implicitly extroverted personality tend to be more impulsive in shopping (Badgaiyan & Verma, 2014). Khan and Chein conducted studies in 2021 and 2020 that showed that consumers who are extraverted have a higher likelihood of impulsive buying. The reason behind this is that extroverted consumers are more easily swayed by marketing strategies, more open, and friendly,
H3. Extraversion significantly has a positive influence on consumers’ impulsive buying behavior in the online marketplace.
Conscientiousness
Conscientiousness is an attitude of caution about how individuals can control themselves in taking an action or in making a decision. This is also supported by McCrae & Costa (2008), as well as Roberts, Lejuez, Krueger, Richards & Hill (2014) both define conscientiousness as a personality that shows self-control, strong commitment, and dedication in action (Farid & Ali, 2018). People who have low scores on conscientiousness are more likely to do impulsive buying. People who have high scores on conscientiousness are more likely to be careful and make plans before they act. Those people who are not organized, responsible, more spontaneous, and who have a higher tendency to be in a rush when doing things score low on conscientiousness. Conscientiousness has a positive impact on impulse buying behavior, as shown by Erlangga et al. (2022) and Waheed Khan (2021). This aligns with the results of studies done on the subject. Therefore, the hypothesis,
H4. Conscientiousness significantly has a negative influence on consumers’ impulsive buying behavior in the online marketplace.
Openness
Individuals who are open to new things enjoy knowing and learning about new things, and can think outside the box. According to Ackerman (2017), openness is a personality dimension that shows how people like to be creative, liberal, original, and imaginative. McCrae and Costa indicated in their 2003 article that people who are high in openness would prefer variety (Kelland, 2020). People who have a high openness personality tend to like trying new things, because they are open to new experiences and products. This can encourage them to engage in impulsive buying, as per the findings of a study by Miao et al. (2020). In fact, openness has been linked to impulsive buying due to its high level of openness to innovative things,
H5. Openness significantly has a positive influence on consumers’ impulsive buying behavior in the online marketplace.
Collectivism
Collectivism is a cultural dimension that places great emphasis on group goals over individual needs and wants. A group or society will be a source of information for collectivism (Hofstede
& Hofstede, 2005). In this case, it means that an individual will depend on others in the decision-making process. This is supported by a study from Nayeem (2012) which shows some Asian people are more collectivist because they take their families opinions into consideration when making a decision and some Australian people more individualist since they rely more on the internet for information. Based on a study from Dameyasani & Abraham (2013), the higher collectivism, the higher the level of impulsive buying of an individual. Miao, et al.
(2020) conducted research that shows that people who have a higher collectivism have a higher likelihood of impulsive buying, and this is because their family and social environment affect their decision. Jalees conducted a study in 2009, and the results showed that if someone is more collectivistic, they are more likely to buy on impulse. Therefore, the hypothesis,
H6. Cultural traits, “collectivism” has a significant positive influence on consumers’
impulsive buying behavior in the online marketplace.
Individualism
In contrast to collectivism, individualism is a cultural dimension in which individuals tend to focus more on the needs and interests of themselves and their immediate family. Individualism has a responsible belief so it is not easy to trust others in making decisions (Nayeem, 2012). If it is associated with impulsive buying, according to Zhang & Shrum (2009) in Badgaiyan &
Verma (2014), individualists are more prone to impulsive buying behavior because individualists are more selfish where they act and think according to themselves which makes them less likely to control themselves. their thoughts. This is also supported by previous research by Kacen and Lee (2002) where individualism is more impulsive than collectivism because in doing something, individualism tends to be based on high personal motives so that it often ignores the negative consequences that may arise from impulsive buying behavior (Badgaiyan & Verma, 2014). This is of course inversely proportional to the findings by Dameyasani & Abraham (2013) with a sample of Indonesian students who state that individualism is negatively correlated with impulsive buying. Nevertheless, the author will be strict on the results of the study by Kacen and Lee (2002) and Zhang and Shrum (2009), with the hypothesis,
H7. Cultural traits, “individualism” has a significant positive influence on consumers’
impulsive buying behavior in the online marketplace.
Shopping Enjoyment Tendency
Shopping enjoyment tendency is the tendency of a consumer to feel pleasure while shopping.
According to Engel et al. (2005) in Widodo (2015), this is because shopping can relieve feelings of loneliness and relieve boredom; can be a sport and can be filled with passion for hunting goods; can provide escape, fulfill fantasies, and relieve depression. Based on previous studies (Mohan et al., 2013; Chavosh et al., 2011; Sharma et al., 2010; Bong Soeseno, 2010, Beatty & Ferrell, 1998) in Badgaiyan & Verma (2014), stated that buyers who have a high shopping enjoyment tendency have a high level of impulsivity because consumers who have excessive pleasure when shopping usually tend to be in the store more and will feel a strong urge to be impulsive. If it is associated with online shopping in this case, it means that consumers who tend to search for products in the marketplace for a relatively long time are likely to have high shopping enjoyment characteristics. This is also supported by the results of
a study from Erlangga, et al. (2022) which shows that shopping enjoyment tendency affects impulse buying. Thus, the hypothesis
H8. Shopping enjoyment tendency has a significant positive influence on consumers’
impulsive buying behavior in the online marketplace.
Materialism
According to Belk (1985) and Richins (2013), materialism is an individual's value where they place the importance of worldly possessions to achieve happiness and prosperity in life (Moran, Bryant & Kwak, 2015). In this case, it means that materialists tend to think that the products they buy later can increase their happiness and even their social status. Wu & Wang (2006) in Badgaiyan & Verma (2014) also found that materialists usually fail to resist the temptation to buy a product or service when they have found something that they think can satisfy their desire. The results of a study from Atulkar & Kesari (2018) also show that materialist consumers will not hesitate to spend more on products, whether cheap or expensive, the most important thing is satisfaction, happiness, and improved social status. As a result, materialist consumers who think that a certain item can be a measure of success and happiness can certainly do impulsive buying (Anggriani & Athar, 2017). Previous studies (Erlangga, et al., 2022; Atulkar & Kesari, 2018; Laksana & Suparna, 2015) also stated that materialism has a positive effect on impulsive buying. Therefore, here is the hypothesis:
H9. Materialism significantly has positive influence on consumers’ impulsive buying behavior in the online marketplace.
Impulsive Buying Tendency
The concept of impulse buying tendency was introduced by Rock and Fisher (1995) as the inadvertent and spontaneous shopping tendency of humans (Chein, Hui & Chan, 2020).
According to Erlangga et al. (2022), consumers with high impulse buying tendencies tend to have lower self-control when shopping compared to consumers with relatively low impulse buying propensities. This can lead to high impulse buying, which can lead to high impulse buying. A study by Febrilia & Warokka (2021) found the same, that consumers who lacked self-control were more likely to make impulse purchases. This is also consistent with previous research by Dawson & Kim (2009), Badgaiyan & Verma (2014), and Atulkar & Kesari (2018) that people with high impulse buying tendencies make impulse purchases more frequently.
Therefore, the following assumptions are made:
H10. Impulse buying tendency significantly has a positive influence on consumers’
impulse buying behavior in the online marketplace.
Sales Promotions
Sales promotion is an effort to encourage the purchase of a product or service in a short time, either bigger or faster. According to Kotler and Keller (2009), sales promotion is different from advertising because advertising offers a reason to buy, while sales promotion offers an incentive to buy. Some sales promotion tools described by Clara (2017) include bonus packs, contest, direct gifts, demonstration, frequent shopper program, free samples, gifts for referral, in-store displays, logo items or souvenirs, price discount, and special events. Sales promotion is the oldest method to encourage sales and increase sales. It can also encourage impulsive buying, as stated by Dawson & Kim (2009) in Akram, et al. (2018). Sales promotion is one of the marketing stimuli that can influence consumers to make impulsive purchases in online stores. Pinto (2021) states that sales promotion has been around since ancient times, and that it
was used to encourage people to attend events, sell more products, or even encourage additional purchases from consumers. Consumers do not want to lose the opportunity because this sales promotion is relatively short-term. This result is also in line with the results of the previous study (Leba (2015); Zhang, Jing, & Yang (2012) in Al Mutanafisa & Retnaningsih, (2021) which stated that consumers can easily make impulsive buying because of sales promotions.
So if the company is able to implement sales promotions properly and effectively, consumers may act to be more impulsive. Therefore, based on the explanation above, the hypothesis,
H11. Sales promotion has a significant positive influence on consumers’ impulse buying behavior in the online marketplace.
3. Methodology
To analyze what factors can have a significant effect on impulse buying in the marketplace in Jakarta, the author will use quantitative research through online surveys. The main reason the authors use surveys is that individual perspectives and memories can be assessed using surveys (SurveyMonkey, 2021). According to DeFranzo (2012), conducting surveys is important because respondents are more likely to be honest and transparent in a more private survey process. Therefore, considering the practicality and impossibility of the impact of the COVID- 19 pandemic, the authors will conduct a quantitative survey through an online survey.
Population, Sample, and Sampling Technique for Quantitative Approach
When collecting data quantitatively, the authors used an online survey through Google Form with questions adopted by Badgaiyan & Verma (2014), Sofi & Nika (2016), Shakaib Farid &
Ali (2018), Clara (2017), Joung (2013), and Chein, Hui & Chan (2020). In addition, as mentioned earlier, this study also used Generation Y as the unit of analysis. Malhotra & Birks (2007) stated that the minimum sample size used in marketing research is 200 samples. For this reason, the authors will use a quantitative sample of 200 respondents in this study.
Furthermore, the authors chose a sampling technique with a quantitative approach in this study to use a non-probability sampling technique with a convenience sampling approach. That's because the study is heavily skewed toward the personalities of some respondents, especially those who use marketplaces to shop. So in this study, the authors have several criteria for who is suitable for the interviewee:
• Female
• Ages from 26 years old until 41 years old (millennial generation).
• Domiciled in the Jakarta area.
• Categorized as Tokopedia and Shopee marketplace users.
• Have made an impulse purchase (purchase that was not planned and made spontaneously/suddenly) during the last 1 year.
Quantitative Data Analysis
The author of this study used multiple regression analysis to see if the variables in question had an influence on each other. Multiple regression is also known as multiple relationships, and can involve more than one independent variable. The author used SPSS (a statistical software program for social science), to test the correlation between eleven independent variables using multiple regression analysis. This process includes a validity test, reliability test, classical assumption test, and hypothesis test, and the multiple regression test. However, validity and
reliability test will conduct first with the number of sample is 30 in order to test the questionnaire.
4. Result Analysis
The study had 200 respondents who came from millennial women from Jakarta who had done impulsive buying at Shopee and/or Tokopedia. The occupations of the 200 respondents are very diverse but employee dominates (49%). For the monthly spending at the marketplace, most of respondents (46.5%) spend around Rp350,000 until Rp750,000. The most frequently used marketplace is Shopee by 48%, with 96 respondents. Followed by Tokopedia by 32.5%
with 65 respondents and 19.5% is using both Shopee and Tokopedia. In one purchased transaction at Shopee and/or Tokopedia, most of respondents bought about one to two items (47.5%). Then, most respondents spend time shopping at Shopee and/or Tokopedia around fifteen to thirty minutes, with 48.5%. Lastly in behavioural analysis in terms of frequency of making impulsive buying in marketplace, 33% of the respondents buy impulsively in the marketplace around three until five times a month, 31.5% uncertain, 25.5% around one until two times a month, and 10 % made an impulsive purchase once every two months.
Classical Assumption Test
Classical assumption test normality test, multicollinearity test, and heteroscedasticity test. The result of the normality test with the One-Sample Kolmogorov-Smirnov Test obtained the Asymp. value. Sig. (2-tailed) of 0.051 is greater than 0.05 or in other words, the probability exceeds 0.05. It can be concluded that the assumption of normality of the distribution is met or the variables are normally distributed (using 189 data that pass). Then for the multicollinearity test shows that no VIF value exceeds 5. Therefore, two of the requirements for multiple linear regression is met. Meanwhile, there are three variables that have heteroscedasticity: impulsive buying tendencies, conscientiousness, and openness to experience whose significance value is less than 0.05. Thus, to overcome the symptoms of heteroscedasticity, it is necessary to use the Weighted Least Squares (WLS) method so that the results obtained are not easily influenced by heteroscedasticity symptoms or in the sense that the results are not biased.
Determinant Coefficient
The contribution of the X variable to the Y variable can be tested using the coefficient of determination analysis. The following are the results of the analysis of the coefficient of determination in Table 4.1.
Table 4.1: The Results of Determination Coefficient
Model R R Square Adjusted R Square
Std. Error of the Estimate
1 .896a .803 .791 1.21621
Source: Primary data, processed (2022)
Table 4.1 shows the information that adjusted r square value 0.791 (79.1%). This means that personality traits (consisting of neuroticism, agreeableness, extraversion, conscientiousness, and openness), cultural traits (collectivism and individualism), shopping enjoyment tendencies, materialism, impulsive buying tendencies, and sales promotions are able to explain 79.1%
impulse buying behavior. However, the remaining 20.9% of impulsive buying behavior can be attributed to other factors not listed in the study. It can be concluded that personality traits (consisting of neuroticism, agreeableness, extraversion, conscientiousness, and openness),
cultural traits (collectivism and individualism), shopping enjoyment tendencies, materialism, impulsive buying tendencies, and sales promotions have been able to explain impulsive buying behavior in marketplace very well.
Simultaneous Hypothesis Testing with F-Test
The F-test, or commonly called ANOVA in this study, uses computational techniques to determine the significant effects of independent variables together, namely neuroticism, agreeableness, extraversion, conscientiousness, openness, collectivism, individualism, shopping enjoyment tendency, materialism, impulsive buying tendency and sales promotions.
The output of the F test result is shown in Table 4.2.
Table 4.2: Hypothesis Test Results with F-test
Model Sum of
Squares df Mean Square F Sig.
1 Regression 1070.218 11 97.293 65.775 .000c
Residual 261.813 177 1.479
Total 1332.031 188
Source: Primary data, processed (2022)
The results of the statistical F-test hypothesis test in Table 4.2 show that the p-value < error rate significance value is 0.000 less than 0.05, or the F count value of 65,775 is greater than F Table 1.8431 so that H0 is rejected, it can be concluded that the variable X (independent) which consists of neuroticism, agreeableness, extraversion, conscientiousness, openness, collectivism, individualism, shopping enjoyment tendency, materialism, impulsive buying tendency, and sales promotions jointly affect the Y (dependent) variable, namely impulsive buying behavior.
Partial Hypothesis Testing with T-Test
The T-test in this study used a calculation technique to determine the partial (individual) significant effect on eleven independent variables. How to calculate the T-test by comparing the value of T-Count with T-Table or the significance value with α (0.05). There are eleven hypotheses in this study. The accepted hypotheses are H2, H3, H9, H10, and H11, whereas H1, H4, H5, H6, H7, and H8 are rejected. The test results are shown in Table 4.3.
Table 4.3: Results of Hypothesis Testing with T-test
Model Unstandardized
B t Sig. Conclusions
Impulsive Buying Tendencies
.163 3.277 .001 Accepted
Extraversion .146 2.149 .033 Accepted
Agreeableness -.188 -2.139 .034 Accepted
Conscientiousness -.046 -.981 .328 Rejected
Emotional Stability .049 1.160 .248 Rejected
Openness to experiences -.025 -.747 .456 Rejected
Collectivism -.056 -1.015 .311 Rejected
Individualism .004 .095 .924 Rejected
Shopping Enjoyment Tendency
-.039 -1.324 .187 Rejected
Materialism .103 1.985 .049 Accepted
Sales Promotion .471 13.979 .000 Accepted
Source: Primary data, processed (2022)
5. Discussion and Conclusion
According to the findings of a study of millennial women living in Jakarta, internal factors that significantly influence market impulse buying behavior include personality traits:
agreeableness and extroversion, materialism, and also impulsive buying tendencies.
Furthermore, sales promotions also affected impulsive buying behavior in the marketplace.
Therefore, based on the findings, the author will discuss them in more detail below.
Personality trait agreeableness has a significant negative influence on consumers' impulsive buying behavior when shopping online.
The results of this study show that agreeableness has been shown to influence impulse buying behavior, with low levels of agreeableness increasing impulse buying in the marketplace. The results contradict a recent study by Erlangga et al. (2022) indicated that there was no significant effect between agreeableness and impulse buying behavior. Furthermore, this also contradicts Hendrawan & Nugroho (2018), who claim that agreeableness has a positive effect on impulse buying behavior when consumers with high agreeableness are easily influenced by marketing communications provided by retailers. According to McCrae and Costa (2008) in Miao et al.
(2020), consumers with high affinity are generally empathetic and are prone to trust others.
However, in this study, consumers who have low agreeableness tend to be uncooperative, not very socially active, and are not good at maintaining positive relationships with people in the surrounding environment generally are not wise enough to make purchases. When it comes to purchases through the Shopee and/or Tokopedia marketplaces, consumers with low agreeableness generally tend not to think twice about making a purchase. This is because these consumers do not interact much with the surrounding environment so they are not much affected. Therefore, for consumers who have a low level of agreeableness where they tend to ignore the things around them, do not like getting along well with other, unsympathetic, hard, and cold. Seller in the online marketplace can use wow strategy coupled with a discounted price. So, at the beginning, consumers will notice the wow effect first, such as from the selection of copy writing. That way, consumers with low agreeableness personality will immediately make a purchase.
Personality trait extroversion has a positive and significant influence on consumers' impulsive buying behavior when shopping online.
The findings of this study suggest that evidence of extroversion can drive consumers to make impulse purchases in the market. The results of this study show that the results are consistent with those of previous studies reported by Badgaiyan & Verma (2014), Shakaib Farid & Ali (2018), Hendrawan & Nugroho (2018) and Chein, Hui & Chan, (2020) found that consumers with higher extroversion scores tended to make impulse purchases. Judge et al. (2014) found that people with high extroversion scores tended to be more open to the things that motivated them to spend impulsively. In general, consumers with high extraversion scores tend to be ambitious, enthusiastic, easily challenged, and easily bored. Of course, consumers with this personality always want to try something new or innovative. As a result, if it is related to a purchase in the marketplace, if they see something different than before, they will buy it without a second thought. Consumers who score high on this personality are also easily motivated, but also easily fooled. Extroverted consumer habits, they like to interact with lots of people, being friendly and communicative, can certainly be used by marketers to boost sales.
This is because introducing or promoting a product to consumers with extroverted personalities
is easier than consumers or individuals with introverted personalities or who have low scores on these extroverts. Therefore, for consumers who have a high level of extraversion, the Shopee and Tokopedia marketplaces can use a referral strategy where later consumers can buy a product with a discount or cashback obtained from a referral code given by friends, family, or other relations. This is because extroverted consumers are more open and easily talk to everyone.
Materialism has a significant positive impact on consumers' impulsive buying behavior when shopping online.
The results of this study are consistent with previous findings by Erlangga et al. match. (2022) who found that materialism has a significant positive effect on consumers' impulse buying behavior in online marketplaces. This is also supported by the findings of Atulkar & Kesari (2018) and Laksana & Suparna (2015) and Badgaiyan & Verma (2014). Consumers with high material values believe that their material wealth is important to achieve a happy and prosperous life. To satisfy their life, consumers buy a certain product or item expensively or cheaply. Consumers with high materialism scores indirectly demonstrate their social status and success through the product or commodity they own. Descriptive analysis results show that the materialism indicator "I would like to be rich enough to buy anything" is the main reason for impulse buying. After consumers are wealthy enough, these consumers tend to spend whatever money they have available to buy sometimes relatively unimportant things to satisfy their desires. The materialistic mentality of these consumers will definitely lead to consumers becoming impulsive when shopping in the marketplace: Shopee and/or Tokopedia. Therefore, for consumers who have a high level of materialism, sellers in the marketplace Shopee and Tokopedia can use a “limited edition” strategy that can create an exclusive impression on the product so it must be purchased. This is in accordance with materialistic consumers where by having the product, the consumer will feel proud. Additionally, the materialist mind-set of consumers with a high level of materialism can also be used as the basis for copywriting advertising or other promotional content.
Impulse buying tendency has a significant positive impact on consumers' impulsive buying behavior when shopping online.
The results of this study are consistent with previous findings by Erlangga et al. (2022), Chein, Hui & Chan (2020), Atulkar & Kesari (2018) and Badgaiyan & Verma (2014) show that impulse buying tendency positively affects impulse buying behavior and that consumers who show higher levels of impulsive tendency also show higher levels of impulsive behavior. In addition, consumers with a high propensity to buy impulse will tend to make purchases spontaneously, without thinking, and not considering about the consequences after the purchase. Impulsive buying tendency is a common trait that usually occurs among consumers.
Therefore, for consumers who have a high level of impulsive buying tendency, the marketplace Shopee and Tokopedia can implement strategies such as “Limited Time for Special Price”
where in general this strategy is an offer of large discounts but is limited by a certain time. So this will make consumers feel compelled to buy spontaneously. To make it more interesting, in implementing this strategy, Shopee and Tokopedia must also design web or apps with a good atmosphere and an eye-catching display for consumers.
Promotion has a significant positive impact on consumers' impulsive buying behavior when shopping online.
According to Al Mutanafisa & Retnaningsih (2021), promotional activities have a significant positive impact on impulse buying behavior. This can be demonstrated by the fact that hypothetical H11 (promotions and impulse buying behavior in online marketplaces) is
accepted. According to Miao et al. (2020), merchandising is an attractive strategy for customers because it makes them feel like they are paying less than the original price. This result is also supported by the findings of a study by Pinto (2021), which showed that customers are willing to make impulse purchases so as not to miss out on the opportunity to buy at a cheaper price.
Shopee and Tokopedia offer their customers various promotions to increase sales. In fact, the two marketplaces often compete for attractive sales like discounts and massive cashbacks just to attract more customers. Kempa, Vebrian & Bendjeroua (2020) found that the more products they bought during a promotion, the happier they were. This may be consistent with what Pinto (2021) said earlier. As a result, such promotions increase the propensity for impulse purchases.
However, the results of this study also contradict those of Wibisono & Fachira (2021), which showed that promotion indirectly affects online impulse buying behavior. Promotions may not have a significant impact on impulse buying behavior due to personal factors or improper promotional targeting. Therefore, it can be said that promotions do not always have a significant impact on impulse buying behaviour even though sales promotion can be strategy to increase sales in the marketplace.
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