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  • 8/10/2019 Importance of Impulse Buying in retail stores.pdf

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    Relative Importance of Impulse-Buying in Retail StoresAuthor(s): Vernon T. CloverSource: Journal of Marketing, Vol. 15, No. 1 (Jul., 1950), pp. 66-70Published by: American Marketing AssociationStable URL: http://www.jstor.org/stable/1247083.

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  • 8/10/2019 Importance of Impulse Buying in retail stores.pdf

    2/6

    66TEJUNLO

    AKTN

    6TEJUNLO

    AKTN

    Degree

    z

    Northern

    half of

    Minnesota

    Easternhalf

    of North

    Dakota

    Northern hree-fourths fWisconsin

    Peninsula

    of

    Michigan

    Degree

    2

    Southern

    half of

    Minnesota

    Western

    half of North

    Dakota

    Northeast

    and

    southeast corners

    of

    South

    Dakota

    Degree3

    Northwestcorner

    of

    South

    Dakota

    Northernone-thirdof Iowa

    Eastern

    hree-fourths

    f

    Montana

    In

    conclusion,

    it

    may

    be

    said that

    Duluth

    wholesaling

    of

    clothing

    and no-

    tions

    could

    readily

    be

    expanded

    with

    the

    advent

    of

    the

    St.

    Lawrence

    Waterway

    Degree

    z

    Northern

    half of

    Minnesota

    Easternhalf

    of North

    Dakota

    Northern hree-fourths fWisconsin

    Peninsula

    of

    Michigan

    Degree

    2

    Southern

    half of

    Minnesota

    Western

    half of North

    Dakota

    Northeast

    and

    southeast corners

    of

    South

    Dakota

    Degree3

    Northwestcorner

    of

    South

    Dakota

    Northernone-thirdof Iowa

    Eastern

    hree-fourths

    f

    Montana

    In

    conclusion,

    it

    may

    be

    said that

    Duluth

    wholesaling

    of

    clothing

    and no-

    tions

    could

    readily

    be

    expanded

    with

    the

    advent

    of

    the

    St.

    Lawrence

    Waterway

    to a

    greater

    intensity

    in the areas

    now

    covered

    and to new areas. Two

    factors

    might

    make that

    possible:

    (I)

    reduced

    cost of transportation, which does not

    seem to be

    as

    important

    in the case

    of

    clothing

    and notions

    as in other

    fields,

    and

    (2)

    the

    addition

    of

    unique

    or

    low-

    priced

    foreign

    merchandise

    to

    present

    lines of merchandise.

    It

    may

    be

    said,

    further,

    hat

    this

    case

    illustrates

    the fact that while

    natural

    factors,

    such

    as

    location and

    transporta-

    tion

    cost,

    tend to determine

    market

    areas,

    the

    forces of

    differentiation,

    uch

    as

    personal

    service,

    still make

    possible

    profitable

    operation

    in areas

    normally

    covered

    by

    other market

    centers.

    RICHARD

    . SIELAFF

    University f

    Minnesota

    Duluth,

    Minnesota

    to a

    greater

    intensity

    in the areas

    now

    covered

    and to new areas. Two

    factors

    might

    make that

    possible:

    (I)

    reduced

    cost of transportation, which does not

    seem to be

    as

    important

    in the case

    of

    clothing

    and notions

    as in other

    fields,

    and

    (2)

    the

    addition

    of

    unique

    or

    low-

    priced

    foreign

    merchandise

    to

    present

    lines of merchandise.

    It

    may

    be

    said,

    further,

    hat

    this

    case

    illustrates

    the fact that while

    natural

    factors,

    such

    as

    location and

    transporta-

    tion

    cost,

    tend to determine

    market

    areas,

    the

    forces of

    differentiation,

    uch

    as

    personal

    service,

    still make

    possible

    profitable

    operation

    in areas

    normally

    covered

    by

    other market

    centers.

    RICHARD

    . SIELAFF

    University f

    Minnesota

    Duluth,

    Minnesota

    RELATIVE

    IMPORTANCE

    OF

    IMPULSE-BUYING

    IN RETAIL STORES

    RELATIVE

    IMPORTANCE

    OF

    IMPULSE-BUYING

    IN RETAIL STORES

    ETAIL

    merchants know

    that

    a

    cer-

    tain

    percentage

    of

    their

    sales are

    made to

    customers who

    buy

    in

    response

    to

    a

    sudden

    impulse.

    It

    is

    also

    a

    generally

    accepted opinion

    that

    some

    types

    of

    items are more

    subject

    to

    impulse-sales

    than

    is the

    case for other

    types.

    An

    op-

    portunity

    to

    gain

    some

    insight

    into

    these

    matters

    was

    afforded when

    on

    two

    oc-

    casions in January and February of

    I948

    a

    shortage

    of

    gas

    in

    three

    west

    Texas

    towns

    resulted

    in

    an

    almost

    universal

    closing

    of

    business

    establishments for

    the entire

    business

    day.

    The

    closings

    were

    unannounced

    ahead of

    the

    actual

    so-called

    gas

    holidays.

    The

    public

    was

    informed over

    the local

    radio

    sta-

    tions that the

    mayors

    of

    the

    three af-

    fected towns

    had

    asked

    all

    stores

    to

    close

    for that day. The stores observed the

    closings

    almost Ioo

    per

    cent.

    The

    condi-

    ETAIL

    merchants know

    that

    a

    cer-

    tain

    percentage

    of

    their

    sales are

    made to

    customers who

    buy

    in

    response

    to

    a

    sudden

    impulse.

    It

    is

    also

    a

    generally

    accepted opinion

    that

    some

    types

    of

    items are more

    subject

    to

    impulse-sales

    than

    is the

    case for other

    types.

    An

    op-

    portunity

    to

    gain

    some

    insight

    into

    these

    matters

    was

    afforded when

    on

    two

    oc-

    casions in January and February of

    I948

    a

    shortage

    of

    gas

    in

    three

    west

    Texas

    towns

    resulted

    in

    an

    almost

    universal

    closing

    of

    business

    establishments for

    the entire

    business

    day.

    The

    closings

    were

    unannounced

    ahead of

    the

    actual

    so-called

    gas

    holidays.

    The

    public

    was

    informed over

    the local

    radio

    sta-

    tions that the

    mayors

    of

    the

    three af-

    fected towns

    had

    asked

    all

    stores

    to

    close

    for that day. The stores observed the

    closings

    almost Ioo

    per

    cent.

    The

    condi-

    tions

    surrounding

    hese two

    holidays

    af-

    forded

    a

    unique

    opportunity

    to

    study

    the effect

    upon

    the

    volume

    of

    retail

    sales

    in

    the

    areas

    affected.

    The

    main

    type

    of

    data

    sought

    in

    the

    study

    was

    information

    on

    whether

    sales

    lost

    during

    the

    weeks in

    which

    the one-

    day closings

    occurred

    were

    made

    up

    in

    the

    following

    week. An

    assumption

    was

    made that the more

    important

    that im-

    pulse

    purchases

    were to a

    given

    store

    the

    less

    likely

    it

    would be to

    make

    up

    its

    sales

    the

    week

    following.

    The

    closings

    occurred wo

    weeks

    apart,

    and

    therefore

    there

    was

    one

    full

    week

    between

    them

    during

    which

    sales

    had

    an

    opportunity

    to

    build

    back

    up

    to

    offset

    the

    holiday

    losses.

    During

    the five

    week

    period

    covered

    in

    this

    study

    the

    weather

    was

    ratheruniformlycold and disagreeable.

    One

    hundred

    and

    fifty

    four

    retail

    tions

    surrounding

    hese two

    holidays

    af-

    forded

    a

    unique

    opportunity

    to

    study

    the effect

    upon

    the

    volume

    of

    retail

    sales

    in

    the

    areas

    affected.

    The

    main

    type

    of

    data

    sought

    in

    the

    study

    was

    information

    on

    whether

    sales

    lost

    during

    the

    weeks in

    which

    the one-

    day closings

    occurred

    were

    made

    up

    in

    the

    following

    week. An

    assumption

    was

    made that the more

    important

    that im-

    pulse

    purchases

    were to a

    given

    store

    the

    less

    likely

    it

    would be to

    make

    up

    its

    sales

    the

    week

    following.

    The

    closings

    occurred wo

    weeks

    apart,

    and

    therefore

    there

    was

    one

    full

    week

    between

    them

    during

    which

    sales

    had

    an

    opportunity

    to

    build

    back

    up

    to

    offset

    the

    holiday

    losses.

    During

    the five

    week

    period

    covered

    in

    this

    study

    the

    weather

    was

    ratheruniformlycold and disagreeable.

    One

    hundred

    and

    fifty

    four

    retail

    THE

    yOURNAL

    OF

    MzRKETING

    HE

    yOURNAL

    OF

    MzRKETING

    66

    l

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  • 8/10/2019 Importance of Impulse Buying in retail stores.pdf

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    THE YOURNAL

    OF

    MARKETING

    stores

    were

    ncluded

    n

    this

    survey.They

    represented

    19

    types

    of

    stores, although

    only

    I2

    types

    were

    represented

    by

    five

    or more stores. The breakdown by types

    is shown

    for the

    town of

    Lubbock

    only.

    (See

    Table

    I.)

    It is

    by

    far the

    largest

    of

    the three

    towns

    covered,

    with

    a

    popula-

    tion

    of

    about

    65,00o.

    The

    other two

    towns have

    populations

    between

    Io,ooo

    to

    20,000.

    The

    cooperating

    store

    managers

    were

    asked

    to

    supply

    the interviewers

    with

    figures

    for the

    weekly

    gross

    sales of the

    establishments

    or the five week

    period

    which

    started one week before the

    weekcontaining

    he first

    one-dayclosing

    and

    extended

    to

    the week

    following

    the

    week

    containing

    he second

    holiday.

    The

    managers

    were also asked these two

    questions:

    I.

    Do

    you

    believe

    hat

    your

    otalannual

    sales

    would

    be less if all stores

    selling

    the same

    products

    r

    services

    hat

    you

    sell

    would

    agree

    o remain

    open

    only

    TABLE

    I.

    MANAGERS' ESTIMATES

    OF

    IMPULSE-SALES;

    AND

    ACTUAL EFFECT

    UPON

    VOLUME

    OF SALES

    OF

    TWO UNEXPECTED ONE-DAY CLOSINGS

    OF

    154

    RETAIL

    STORES

    Data on Fluctuations in Sales Cover a Five Week Period

    Mgrs.'

    Est.

    Would

    40

    hr.

    Per

    cent

    of

    Deviation

    n

    Sales*from

    Se

    No f

    of

    Per

    cent

    week

    decrease

    rst

    Week,

    .e.,

    the

    Base Weekt

    Key

    Type

    of Store

    No.

    of

    Impulse-

    sales?

    Type

    f

    Store

    s

    ployes

    Salesare

    of

    2nd

    Week

    4th Week

    Foot

    ployees

    TotalSales Don't

    t

    Closed

    rd Week

    Closed

    th

    Week

    t

    (Averages)*

    Yes

    No

    Know

    Week

    I

    day

    day

    no

    LUBBOCK

    Variety

    7

    I71

    60.48

    0

    4

    3

    0.0

    -16.54

    +

    0.64

    -I5.91

    -

    7.91

    I

    M

    Grocery

    26

    350

    26.02

    20 2

    4

    0.0

    -I5.45

    -

    0.05

    -I0.36

    -

    6.85

    I

    W

    Service

    Station

    13 77

    14.80

    8

    5

    0

    o.o

    -I3.81

    -

    4.38

    -I2.70

    -

    7.3I

    I

    W

    Book 6

    22

    14.66

    2 I

    3

    0.0

    -31.84 + 2.32

    -20.23

    +

    4.18 I S

    Department

    5

    203

    I4.54

    2

    3

    o

    o0.0

    -25.24 +19.99 -I2.5I

    +21.49

    PS

    Men's

    Clothes

    4

    33 13.68

    2 2 0

    0.0

    + 0.8I

    +45.84

    -35-43 -39.19

    ?

    Gift

    4

    7

    I3.21

    I

    3

    0

    0.0

    -I2.86

    +

    7.86

    +98.21 +30.93

    ?

    Ladies

    Wear

    15

    I03

    I2.33

    I2

    3

    o o.o

    -45.71 -27.86

    -27.72

    -

    6.44

    I

    W

    Barber

    Shop 5

    i8

    I2.26

    2

    3

    o

    o.o

    -

    9.62

    -

    7.72

    -14.20

    -

    0.35

    I

    W

    Jewelry 5

    62

    11.81

    4

    I

    0

    0.0o

    5.09 -11.29

    -I6.2I

    -25.62

    ?

    Beauty Shop 5

    I8

    11.31

    2

    3

    0

    o.o

    -I5.30

    +

    3.08

    -

    8.80

    +10.22

    PW

    Theater

    (Movie) o0

    91

    Io.I2

    10

    0 0

    0.0

    -20.27

    -

    8.36

    -I7.24

    -26.10 ?

    Florist

    I

    4

    10.00

    I

    0 0

    0.0

    -34.00

    0.00

    +77.00

    +26.00

    ?

    Hardware

    5

    62

    10.00

    3

    2

    0

    0.0

    .89

    9

    4.79

    +

    0-57

    +

    4.68

    ?

    Sport

    Goods

    I

    4

    I0.00

    I

    0 0

    o.o

    -67.00 -36.00

    -26.00

    +55.00

    ?

    Furniture

    5 31

    3.8I

    4

    I

    0

    o.o -28.86

    -20.51

    -29.14

    -32.99

    ?

    Auto

    Supply

    4

    97

    3.51 3

    i

    o

    o.o

    -

    6.28

    -

    2.31

    -I6.59

    +

    0.37

    I

    W

    Lumber

    I

    8 2.00

    0

    0

    I

    0.0

    -20.00

    +i6.00

    -30.00

    0.00

    I

    M

    Paint & Paper I

    Ii

    No. Ans.

    I 0 0 0.0

    -34.00 -65.00 -66.00

    -70.00

    ?

    Total or

    Average 123

    1372

    20.83 78 34

    II

    0.0

    -17.82

    -

    0.98

    -I3.41

    -

    4.27

    I

    S

    PLAINVIEW

    18

    198

    3I.I5

    io

    8 0

    0.0

    -I9.89

    +

    2.93

    -2I.42

    +

    1.87

    IS

    LEVELLAND

    13

    68

    17.72

    Io

    I

    2

    0.0

    -

    9.09

    -

    1.36

    -

    2.94

    -

    5.85

    ?

    Grand

    Total

    or

    Average

    154 1638

    21.80

    98

    43

    13

    0.0

    -I7.70

    -

    0.52

    -13.95

    -

    3 59

    I

    S

    Source:

    Personal

    Interviews with

    managers

    of

    154

    retail

    establishments

    in

    Lubbock,

    Plainview

    &

    Levelland,

    Texas.

    *

    Weighted

    by

    number of

    employees

    in

    each

    store.

    Weighting

    by

    this

    method

    instead of

    by gross

    sales

    was

    necessary

    because

    some

    stores

    furnished

    percentage

    figures

    only.

    t

    Base

    week was

    the week

    before

    the week

    containing

    the first

    one

    day closing

    of

    the stores.

    :

    I

    means

    pattern

    of

    fluctuation

    that

    indicates

    definite

    presence

    of

    relatively large amount of impulse-sales (purchases).

    P

    means

    pattern

    is

    that

    for

    planned-sales

    (purchases).

    S

    means the

    pattern

    is

    strong.

    W

    means

    the

    pattern

    is

    weak.

    M

    means the

    pattern

    is neither

    particularly

    strong

    nor weak. ?

    denotes

    indefiniteness

    of

    pattern.

    67

    ----

    J

    - - -

    -

    -- -

    --

    ---

    -----

    - -

    -

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  • 8/10/2019 Importance of Impulse Buying in retail stores.pdf

    4/6

    68

    THE JOURNAL

    OF

    MARKETING

    forty

    hours

    per

    week?

    2. About what

    percentage

    of

    your

    total

    sales

    do

    you

    estimate

    are made

    to

    cus-

    tomers

    who

    decide

    to

    buy

    on the

    spur

    of themoment?

    The

    findings

    are

    summarized

    in

    the

    accompanying

    table.

    OPINIONS

    OF

    MANAGERS

    Ninety-eight,

    or

    approximately

    two

    thirds

    of

    the

    I54 managers

    interviewed,

    in

    answering

    question

    I

    estimated

    that the

    reduced

    forty

    hour

    week

    would

    decrease their

    sales. A

    little

    over

    a

    fourth

    (28

    per

    cent)

    did

    not

    believe

    that

    the

    forty

    hour

    week

    would

    reduce

    sales.

    The

    remaining

    8

    per

    cent

    said

    they

    did

    not

    know. The

    reason for

    asking

    this

    question

    is

    the

    assumption

    that

    impulse-

    sales

    are

    more

    affected than

    planned-

    sales

    by

    length

    of

    store

    hours. If a

    manager

    expected

    shorter

    hours

    would

    decrease

    sales

    then,

    according

    to

    this

    assumption,

    the

    manager

    should

    also

    indicate that a

    relatively

    high

    percentage

    of

    his

    sales are

    due to

    impulse-buying.

    That

    some

    managers

    did not

    recognize

    or

    agree

    with

    this

    assumption

    is

    evident

    in

    the

    answers

    which

    they

    gave

    to

    question

    2

    above. In

    studying

    the

    answers shown in

    the

    table it

    can

    be

    seen

    that

    none of

    the

    seven

    variety

    store

    managers

    thought

    that

    shorter

    hours

    would

    reduce

    sales

    in

    their

    stores.

    Yet

    their average estimate of the percentage

    of

    impulse-sales

    to

    total

    sales

    was

    60.48

    per

    cent,

    the

    highest

    for

    any

    of

    the

    types

    of

    stores. For

    all

    managers,

    the

    average

    of

    the

    estimates

    of

    the

    percentage

    of

    their

    sales

    that

    were

    due to

    impulse-

    buying

    was

    21.8

    per

    cent.

    A

    breakdown

    by

    type

    of

    store

    is shown

    for

    the

    123

    stores

    studied

    in

    Lubbock.

    Here

    it can

    be

    seen,

    for

    example,

    that all

    ten of the managers of the theaters

    covered

    thought

    that

    the

    shorter

    week

    would

    cause a

    decline in

    sales.

    The

    managers

    also

    estimated

    that

    about

    io

    per

    cent

    of

    their

    patrons

    came

    n

    because

    of

    a

    sudden

    impulseto see a movie. Of

    the

    26

    grocerystores, 20,

    or

    77

    per

    cent,

    thought

    sales

    would

    be

    reduced

    by

    a

    shorter

    forty

    hour

    week.

    As

    to

    the

    rela-

    tive

    importance

    of

    impulse-sales

    we

    find

    that

    the

    highest

    percentage,

    60.48

    per

    cent,

    is

    found

    for

    the

    seven

    variety

    stores,

    and

    the

    lowest,

    among

    the

    types

    represented

    by

    fiveor

    more

    stores,

    s

    3.8I

    per

    cent

    for

    the

    five

    furniture

    stores.

    The

    26

    grocery

    stores

    also

    rankedas

    the

    second

    highest

    type

    in

    impulse-sales,

    with

    their

    managers

    giving

    estimates

    that

    averaged

    26.02

    per

    cent.

    It

    is

    hardly

    necessary

    to

    point

    out

    that

    the

    opinions

    obtained

    from

    the

    store

    managers

    covered

    in

    this

    survey

    when

    broken

    down

    into

    types

    of

    stores

    have

    quite

    limited

    significance

    because

    of

    the

    very

    small

    number

    of

    stores in-

    cluded

    in

    most

    of

    the

    types.

    Neverthe-

    less, the breakdownby types is givenfor

    whatever

    significance

    t

    may

    have for

    the

    comparisons

    that

    may

    be

    made

    among

    the

    different

    ypes

    of

    stores.

    It

    is

    possible

    that

    for

    most

    of

    the

    types

    that

    are

    represented

    by

    five or

    more

    stores

    the

    representation

    s

    large

    enough

    to

    make

    the

    stated

    opinions

    worth

    some

    at-

    tention.

    The

    results

    by

    types

    of

    stores in

    re-

    gardto changes n actual sales over the

    five

    week

    period

    as

    reported

    by

    the

    managers

    are

    considered

    o

    carry

    more

    significance

    han

    the

    data on

    opinions.

    The

    reasons

    for

    this

    are that

    the

    sales

    figures

    are

    real,

    measurable

    esults,

    and

    for

    many

    of

    the

    types

    of

    stores

    covered

    relatively

    large

    establishments

    were in-

    cluded.

    The

    five

    department

    stores

    studied

    had a

    total

    of

    203

    employees.

    The seven variety stores employed 171

    persons.

    68

    THE

    YOURNAL

    OF

    M,4RKETING

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    69

    II ,

    I I

    1

    DATA

    OF

    ACTUAL

    SALES

    FLUCTUATIONS

    Data

    on

    the

    fluctuations

    n total

    sales

    in

    all

    the

    154

    stores

    surveyed

    show

    that

    in the week with the first one-day

    closing,

    sales declined

    I7.7

    per

    cent

    from

    the

    previous

    week,

    or

    the base week

    as

    it

    is

    called

    in

    this

    study.

    In

    the

    week

    follow-

    ing

    the first

    closing,

    sales

    bounced

    up-

    ward to

    a

    level

    but

    0.52

    per

    cent

    below

    the base

    week.

    Then

    in

    the

    following

    week

    with

    the second

    one-day

    closing,

    sales

    declined

    again,

    this

    time

    by

    I3.95

    per

    cent

    compared

    to

    the base

    week.

    The succeeding week sales rose again to

    a

    level

    only

    3.59

    per

    cent below

    the

    base

    week. This

    pattern

    of

    sales

    fluctuations

    over

    the

    five

    week

    period

    covered in-

    dicated

    that

    impulse buying,

    and

    per-

    haps length

    of

    store

    hours,

    definitely

    were

    important

    factors.

    Sales

    declined

    in

    the

    weeks with

    the

    closings

    and

    in-

    creased

    again

    the

    following

    week.

    The

    significant

    point

    in

    these

    figures,

    in

    re-

    gard

    to

    the

    measurement of

    the

    im-

    portance

    of

    impulse

    buying,

    is

    found in

    the

    fact

    that the

    total

    sales

    for

    all

    of

    the

    I54 stores,

    and for

    most of

    the sub-

    types,

    in

    the

    weeks

    following

    each

    closing

    did not

    increase

    enough

    to

    offset

    the

    losses

    during

    the

    holiday

    weeks.

    Instead,

    in

    the

    case

    of

    the

    total for

    all

    154

    stores

    the

    sales

    of

    the

    post-holiday

    weeks

    merely

    increased

    by

    enough

    to

    bring

    sales

    almost

    up

    to

    their

    level

    in

    the

    base

    week,

    that is the week before the first

    closing.

    In

    other

    words,

    existence of

    impulse

    sales is

    indicated

    by

    the

    fact

    that

    customers

    did

    not

    buy

    enough

    merchandise

    in

    the

    week

    following

    each

    holiday

    to

    make

    up

    for

    the

    purchases

    that

    they

    apparently

    would

    have

    made

    if

    the

    stores

    had not

    closed.

    There

    are

    variations,

    of

    course,

    in

    the

    relative

    im-

    portance

    of

    impulse

    sales

    among

    the

    various types of stores, as can be seen

    in

    the

    table. It

    is

    interesting

    to

    notice

    that

    but

    two of

    the

    I9

    types

    of

    stores

    showed

    definite

    patterns

    of

    sales-fluctu-

    ations that

    indicated

    planned

    buying

    was important enough to pull sales in

    both

    post-holiday

    weeks

    appreciably

    above the

    level of

    the

    base

    week.

    These

    two

    types

    were

    department

    stores

    and

    beauty

    shops.

    THEORETICAL

    ASSUMPTIONS OF

    THIS

    STUDY

    According

    to

    the

    theory

    put

    forth

    in

    this

    article,

    in a

    given

    store

    with

    Ioo

    per cent of its sales due to impulse buy-

    ing,

    the

    pattern

    of

    fluctuation

    n

    sales,

    assuming

    no

    change

    in

    trendof

    volume,

    would

    be

    such

    that

    all

    sales

    that

    could

    not

    be

    made

    due

    to

    the

    one-day

    clos-

    ings

    would

    be

    lost

    forever.

    The

    de-

    crease

    in

    sales

    during

    the

    week

    of

    the

    holiday

    would not

    be

    made

    up

    in

    the

    following

    week.

    Sales

    in

    that

    post-holi-

    day

    week

    would

    merely

    return

    to

    the

    level of the baseweek.

    In

    studying

    the

    patterns

    forthe

    types

    of

    stores

    shown

    in

    the

    table,

    the im-

    pulse

    patterns

    are

    marked

    with an

    I

    and

    the

    planned

    patterns

    with

    a

    P. If

    the

    pattern

    was

    considered

    efiniteor

    strong,

    then

    the

    letter

    S

    follows;

    if the

    pattern

    was

    considered

    weak

    the

    letter W

    is

    added;

    if

    medium in

    definiteness,

    the

    letter M

    is

    used. A

    question

    mark,

    ?,

    is

    placed

    after

    each

    type

    of

    store in

    which no definite

    pattern

    was

    discern-

    ible.

    If

    these

    fluctuations

    are

    plotted

    on

    a

    graph,

    the

    sales

    fluctuation

    n

    types

    of

    stores

    where

    mpulse

    sales are

    relatively

    important

    will

    form

    a

    letter W.

    The

    three

    top parts

    of the

    letter will

    be

    on

    the

    same level

    as

    the

    sales

    of

    the

    base

    week

    before

    the

    holiday

    weeks.

    The

    two

    holiday

    weeks

    are

    represented

    by

    the

    two bottom dips in the W. The

    deeper

    the

    dips

    the

    more

    important

    are

    THE

    YOURNAL

    OF

    MARKETING

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    700 THE

    7OURNAL

    OF

    MARKETING

    HE

    7OURNAL

    OF

    MARKETING

    the

    impulse

    sales. If

    planned

    sales

    pre-

    dominate,

    the

    shape

    of the W

    is

    changed,

    and

    the second

    and third

    tops

    of the letter will be higher than the

    first

    top.

    In

    attempting

    to discoverthe

    relative

    importance

    of

    impulse buying

    for

    each

    type

    of

    store,

    the

    percentage

    fluctua-

    tions

    in

    sales were

    observed,

    and also

    the

    shape

    of

    the sales

    curves,

    when

    plotted

    on

    graphs.

    The

    results can be

    seen

    in

    the

    last column

    in

    the

    table.

    For

    the

    total

    of

    all

    of

    the

    154

    stores

    a

    definite

    impulse-

    pattern

    is

    discernible. The

    same

    is

    true

    for

    the

    I23

    stores

    in

    Lubbock and

    the

    I8

    in

    Plainview. As

    for

    the

    various

    types

    of

    stores,

    a

    strong

    impulse-pattern

    is

    shown

    for

    the six

    book

    stores. Their

    gift

    items and

    knickknacks

    must

    account

    for

    a

    large

    part

    of

    this,

    although

    books

    themselves

    may

    be

    subject

    to

    much

    impulse

    buying.

    In

    contrast,

    a

    strong

    pattern

    of

    planned

    buying

    is

    clearly

    evident for

    the

    five

    department

    stores.

    This is not

    surprising

    for such

    shopping-

    goods

    stores.

    The

    only

    other

    type

    of

    store

    which

    showed

    a

    planned-buying

    pattern

    was

    beauty

    shops.

    CONCLUSIONS

    The

    fluctuations

    in

    sales shown for

    the

    grand

    total

    of all

    the

    154

    stores

    do

    follow

    a

    pattern

    that

    indicates that

    impulse

    buying

    definitely

    influences

    sales.

    If

    we

    the

    impulse

    sales. If

    planned

    sales

    pre-

    dominate,

    the

    shape

    of the W

    is

    changed,

    and

    the second

    and third

    tops

    of the letter will be higher than the

    first

    top.

    In

    attempting

    to discoverthe

    relative

    importance

    of

    impulse buying

    for

    each

    type

    of

    store,

    the

    percentage

    fluctua-

    tions

    in

    sales were

    observed,

    and also

    the

    shape

    of

    the sales

    curves,

    when

    plotted

    on

    graphs.

    The

    results can be

    seen

    in

    the

    last column

    in

    the

    table.

    For

    the

    total

    of

    all

    of

    the

    154

    stores

    a

    definite

    impulse-

    pattern

    is

    discernible. The

    same

    is

    true

    for

    the

    I23

    stores

    in

    Lubbock and

    the

    I8

    in

    Plainview. As

    for

    the

    various

    types

    of

    stores,

    a

    strong

    impulse-pattern

    is

    shown

    for

    the six

    book

    stores. Their

    gift

    items and

    knickknacks

    must

    account

    for

    a

    large

    part

    of

    this,

    although

    books

    themselves

    may

    be

    subject

    to

    much

    impulse

    buying.

    In

    contrast,

    a

    strong

    pattern

    of

    planned

    buying

    is

    clearly

    evident for

    the

    five

    department

    stores.

    This is not

    surprising

    for such

    shopping-

    goods

    stores.

    The

    only

    other

    type

    of

    store

    which

    showed

    a

    planned-buying

    pattern

    was

    beauty

    shops.

    CONCLUSIONS

    The

    fluctuations

    in

    sales shown for

    the

    grand

    total

    of all

    the

    154

    stores

    do

    follow

    a

    pattern

    that

    indicates that

    impulse

    buying

    definitely

    influences

    sales.

    If

    we

    were to

    assume

    a

    trend line

    showing

    a

    slight

    declinein

    sales,

    such as

    might

    be

    established

    by

    the

    post-holiday

    week

    figures of -0.52 per cent and -3.59 per

    cent

    of the

    base

    week,

    we

    might

    make

    the

    tentative

    statement

    that lost

    sales

    seemed

    to

    constitute

    somewhere

    between

    o1

    per

    cent

    and

    17

    per

    cent of

    total

    sales in

    the

    retail stores

    covered

    in this

    survey.

    These

    percentages

    are

    obtained

    by taking

    the

    differences

    shown

    between

    -I7.70

    per

    cent

    and

    -0.52

    per

    cent,

    which

    equals

    17.18

    per

    cent;

    and

    -I3.95

    per

    cent

    and

    -3.59 percent, whichequals

    IO.36

    per

    cent.

    When it

    is recalled

    that the

    stores

    were

    closed

    approximately

    16

    per

    cent

    of

    the

    usual

    business

    day

    time

    during

    the

    holiday

    weeks,

    the

    10

    per

    cent to

    I7

    per

    cent

    figures

    for

    lost

    sales

    strikingly

    point

    to

    the

    great

    importance

    of

    impulse

    sales

    and

    length

    of

    store

    hours. It

    is

    possible

    of

    course,

    that

    some of the

    lost

    sales

    that

    were not

    made

    up

    in

    the

    immediate

    post-holiday

    week were

    made

    up

    at

    later

    dates.

    The

    findings

    of this

    study,

    never-

    theless,

    seem

    to indicate

    the

    great

    impor-

    tance

    of

    impulse buying,

    and

    the

    ad-

    visability

    of a

    retailer

    following

    a

    policy

    of

    making

    it

    as

    easy

    as

    possible

    for

    con-

    sumers to

    make

    purchases.

    VERNONT. CLOVER

    Texas

    Technological

    College

    Lubbock,

    Texas

    were to

    assume

    a

    trend line

    showing

    a

    slight

    declinein

    sales,

    such as

    might

    be

    established

    by

    the

    post-holiday

    week

    figures of -0.52 per cent and -3.59 per

    cent

    of the

    base

    week,

    we

    might

    make

    the

    tentative

    statement

    that lost

    sales

    seemed

    to

    constitute

    somewhere

    between

    o1

    per

    cent

    and

    17

    per

    cent of

    total

    sales in

    the

    retail stores

    covered

    in this

    survey.

    These

    percentages

    are

    obtained

    by taking

    the

    differences

    shown

    between

    -I7.70

    per

    cent

    and

    -0.52

    per

    cent,

    which

    equals

    17.18

    per

    cent;

    and

    -I3.95

    per

    cent

    and

    -3.59 percent, whichequals

    IO.36

    per

    cent.

    When it

    is recalled

    that the

    stores

    were

    closed

    approximately

    16

    per

    cent

    of

    the

    usual

    business

    day

    time

    during

    the

    holiday

    weeks,

    the

    10

    per

    cent to

    I7

    per

    cent

    figures

    for

    lost

    sales

    strikingly

    point

    to

    the

    great

    importance

    of

    impulse

    sales

    and

    length

    of

    store

    hours. It

    is

    possible

    of

    course,

    that

    some of the

    lost

    sales

    that

    were not

    made

    up

    in

    the

    immediate

    post-holiday

    week were

    made

    up

    at

    later

    dates.

    The

    findings

    of this

    study,

    never-

    theless,

    seem

    to indicate

    the

    great

    impor-

    tance

    of

    impulse buying,

    and

    the

    ad-

    visability

    of a

    retailer

    following

    a

    policy

    of

    making

    it

    as

    easy

    as

    possible

    for

    con-

    sumers to

    make

    purchases.

    VERNONT. CLOVER

    Texas

    Technological

    College

    Lubbock,

    Texas

    PATTERN

    OF

    BUYING

    FARM

    EQUIPMENT

    AND

    SUPPLIES*

    ATTERN

    OF

    BUYING

    FARM

    EQUIPMENT

    AND

    SUPPLIES*

    T

    HIS

    report

    is

    a

    summary

    of

    the

    findings

    of

    a

    study

    made

    on

    the

    buy-

    ing

    habits

    and

    practices

    of

    farmers

    of

    Parke

    County,

    Indiana,

    when

    purchas-

    ing

    farm

    equipment

    and

    supplies.

    Parke

    County

    was

    selected

    as

    a

    typical

    Indi-

    ana farming county. For example, 84

    *

    University

    of

    Illinois

    study

    made

    under

    supervision

    of

    Professors

    P.

    D.

    Converse

    and

    C.

    H.

    Sandage.

    T

    HIS

    report

    is

    a

    summary

    of

    the

    findings

    of

    a

    study

    made

    on

    the

    buy-

    ing

    habits

    and

    practices

    of

    farmers

    of

    Parke

    County,

    Indiana,

    when

    purchas-

    ing

    farm

    equipment

    and

    supplies.

    Parke

    County

    was

    selected

    as

    a

    typical

    Indi-

    ana farming county. For example, 84

    *

    University

    of

    Illinois

    study

    made

    under

    supervision

    of

    Professors

    P.

    D.

    Converse

    and

    C.

    H.

    Sandage.

    per

    cent

    of the

    areaof

    the

    county

    was in

    farms

    compared

    with a

    state

    average

    of

    86

    per cent;

    81

    per

    cent of

    the

    farms

    are

    operated

    by

    ownersor

    part

    ownerscom-

    pared

    with

    77

    per

    cent

    in

    the

    State;

    56

    per

    cent of

    the

    farm

    income

    comes

    from

    livestock comparedwith 57 per cent for

    the

    State;

    the

    average

    value of

    farms

    of

    more than

    30

    acres in

    Parke

    County

    per

    cent

    of the

    areaof

    the

    county

    was in

    farms

    compared

    with a

    state

    average

    of

    86

    per cent;

    81

    per

    cent of

    the

    farms

    are

    operated

    by

    ownersor

    part

    ownerscom-

    pared

    with

    77

    per

    cent

    in

    the

    State;

    56

    per

    cent of

    the

    farm

    income

    comes

    from

    livestock comparedwith 57 per cent for

    the

    State;

    the

    average

    value of

    farms

    of

    more than

    30

    acres in

    Parke

    County

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