Contents

Background study........................................................................................................................................1
Statement of the Problem...........................................................................................................................1
Objective of the study.................................................................................................................................2
Research hypothesis....................................................................................................................................2
Rational of study..........................................................................................................................................3
Brief Review of literature............................................................................................................................3
Concept and Characteristics of Impulsive Buying Behavior.....................................................................3
Internal Factors Influencing Impulsive Buying Behavior..........................................................................3
External Factors Influencing Impulsive Buying........................................................................................3
Technological Impact on Impulsive Buying..............................................................................................4
Impulsive buying in Nepal........................................................................................................................4
Research methodology................................................................................................................................4
Research Design......................................................................................................................................4
Population and Sampling.........................................................................................................................4
Data collection methods..........................................................................................................................4
Research instrument...............................................................................................................................4
Conceptual framework and definition of variables.....................................................................................5
 Factor affecting impulsive buying behavior of customer in Nepal

Background study
Impulse buying refers to the act of making unplanned purchases driven by immediate desires or
emotional responses, rather than through careful planning. It has been a significant area of interest in
consumer behavior research due to its impact on marketing strategies, retail environments, and
consume well-being.

The concept of impulsive buying gained attention in the mid-20th century when consumer researchers
began exploring unplanned purchasing. Early studies primarily focused on understanding how retail
environments and product placements could influence these behaviors. Over time, the focus expanded
to include psychological, cultural, and technological influences. Contemporary research integrates
technology's role, such as e-commerce platforms and investigates the interplay between online
environments and impulsive purchases.

In context of Nepal most of buyers do not plan to purchase. Impulsive buying is a common behavior in
Nepal, but there is not much research on it. The buyers purchase some goods, such as groceries,
accessories, and personal care products. They take time to consider whether they need other things,
such as gadgets and cookware. The impulsive buying behavior of customers in Nepal, particularly in
urban areas like Kathmandu, has been the subject of various studies. This behavior is characterized by
spontaneous, unplanned purchases driven by emotional responses and environmental stimuli rather
than rational decision-making. The impulsive though can be attributed to the buyer's instant
satisfaction. Customer purchases occur without prior intention. Among the factors that are significant
for triggering impulsive buying behavior is unplanned purchase, emotional influence, quick decision-
making, and lack of control, availability of cash, price, availability of time, immediate gratification. The
buyer did not intend to make the purchase before entering the store or browsing online. Emotional
triggers like excitement, happiness, or stress often drive impulsive decisions. The impulsive buying
happens without any careful discussion. Customers seek instant satisfaction from the purchase.

Statement of the Problem

Impulsive buying is a behavior which has been portrayed by all of us one or the other time. Impulsive
buying behavior is complex customer behavior, characterized by unplanned purchases affected by
emotional and psychological triggers. This customer behavior poses challenges for both consumer and
businesses. For consumers, impulsive buying behavior can lead to financial issue, dissatisfaction due to
purchases that do not line up with their needs, emotional lack of control, and social exclusion. For
businesses, it can create problem like survive and fine place in new market, short-term sales, it may lead
to customer dissatisfaction and reduced brand loyalty if expectations are not met.

Many challenge lies in understanding the multifaceted factors that contribute to impulsive buying,
which include emotional state, store environment, promotional strategies, and individual psychological
traits such as low self-esteem and high anxiety levels. The interaction between these factors can create
a complex web of influences that complicates the prediction and management of impulsive buying
behavior. The rise of online shopping, with features like personalized ads, one-click purchases, and
limited-time offers has further intensified impulsive buying tendencies, making it increasingly difficult to
regulate.
In Nepal, impulsive buying behavior is becoming increasingly prevalent, driven by shifts in consumer
preference, economic growth, and the expansion of modern retail formats such as shopping malls,
supermarkets, and e-commerce platforms. Despite its prevalence, there is a lack of comprehensive
research specifically addressing the factors that drive impulsive purchases among Nepalese consumers.
Nepali consumers are increasingly exposed to promotional campaigns, social media marketing, and
attractive product displays, which serve as triggers for unplanned purchases. With the rise of digital
platforms, such as online shopping sites and mobile payment options, impulsive buying has become
even more accessible and pervasive.

Research indicates that impulsive buying is often influenced by various psychological and situational
factors, including fear, peer pressure, and scarcity of products, particularly in times of crisis such as the
COVID-19 pandemic. For instance, studies have shown that fear psychology and limited product
availability significantly heighten consumer's inclination to make unplanned purchases. The rapid growth
of supermarkets and shopping centers in urban areas has created environments that are conductive to
impulsive buying, yet the interplay between these retail settings and consumer behavior remains
underexplored.

Despite its growing relevance, there is limited research on the factors influencing impulsive buying
behavior in Nepal. Key questions are:

1. What are the internal psychological and emotional triggers that drive impulsive buying among
Nepali consumer?
2. How do external factors including retail environments, advertising, and cultural norms, influence
impulsive buying decision in Nepal?
3. What roles does the digital marketplace, including e-commerce and social media, play in shaping
impulsive buying behavior in the context of Nepal's unique market dynamics?

Objective of the study

The study's goal will be examining factor affecting impulsive buying behavior of customer of Nepal.
The specific objectives are as follows;

a. To identify and evaluate internal psychological factors, such as emotions,

personality traits, and self-control, that affect impulsive buying behavior among
Nepali consumers.
b. To examine the impact of digital platforms, such as e-commerce websites, social
media, and mobile shopping apps, on impulsive buying behavior in Nepali context.
c. To analyze the influence of external environment factors, including retail
atmospheres, promotional strategies, store layouts and peer pressure on impulsive
buying.

Research hypothesis
The study deals with following hypothesis:

H1: Internal factors like emotional states and personality traits.

H2: External factors such as retail environmental factors, promotional strategies, and social influences.
H3: technological factors use of digital platforms such e-commerce websites and social media,
personalized advertising.

H4: Demographic factors such as age and gender, income level, and education.

H5: Limited supply increases impulsive buying.

Rational of study
This research works toward identifying the factors affecting impulsive buying behavior of customer in
Nepal. Nepal's unique cultural and economic landscape presents a distinct environment for consumer
behavior research. This context can provide how local customs, values, and social dynamics influence
purchasing decisions. As Nepal experiences growth and an increase in consumerism, the retail sector is
evolving. This growth brings about changes in consumer behavior, making it essential to explore how
impulsive buying fits into the broader trends of shopping habits in different part of Nepal. The
aggressive marketing tactics to stimulate sales, including promotions. Impulsive buying is influenced by
various psychological factors such as emotional, self-control, and peer pressure. Including Nepal the
COVID-19 pandemic has altered shopping behaviors globally. This seek to understand how such external
factors have influenced impulsive buying tendencies during and after pandemic. The impact of
digitalization such as e-commerce, social media, and digital payment systems in Nepal, the triggers for
impulsive buying have been expand.

Brief Review of literature

Concept and Characteristics of Impulsive Buying Behavior
The economic times define impulsive buying is the tendency of a customer to buy goods and
services without planning in advance. When a customer takes such buying decisions at the spur
of the moment, it is usually triggered by emotions and feelings. Rook (1987) defined impulsive
buying as a spontaneous, immediate purchase without prior intention, driven by strong
emotional appeal and minimal cognitive deliberation.

Internal Factors Influencing Impulsive Buying Behavior

The internal factors influencing impulsive buying behavior such as emotions and mood states
that Verplanken and Herbadi (2001) found that positive moods and negative states can both
tiger's impulsive purchases. Personality trends such as low self-control, materialism, and a
tendency toward seeking novelty are strongly linked to impulsive buying tendencies (Dittmar et
al,.1995).

External Factors Influencing Impulsive Buying

The external Factors influencing impulsive buying such retail environment, sales promotions,
social influence. The store atmospherics, such as music, lighting, and product placement, have
been shown to evoke emotional responses that encourage impulsive buying (Donovan &
Rossiter, 1982). The limited-time offers and discount create a sense of urgency, significantly
influencing impulsive buying behavior (laroche et al., 2003).
Technological Impact on Impulsive Buying
Impulsive buying behavior affected by technology. E-commerce Platforms, social media
influence, and mobile shopping. E-commerce platforms features such as personalized
recommendations, one-click purchases, and flash sales have intensified impulsive buying in the
online shopping context (Chan et al., 2017). Influencer endorsements and targeted
advertisements trigger emotional responses and spontaneous purchases (Jin & Phua, 2014).
Easy access to shopping apps has made impulsive buying more frequent, especially among
young consumers (Zhang et al., 2019).

Impulsive buying in Nepal

There is limited research on impulsive buying in Nepal's. The emerging studies highlight the
influence of promotional tactics, social media, and digital platforms on the growing trend of
impulsive buying in urban Nepal.

Research methodology
The research methodology has the following aspects discussed below.

Research Design
This study adopts a combining both descriptive and exploratory research methods to provide a
comprehensive understanding of impulsive buying behavior among customers in Nepal. It helps to
understand the factors affecting impulsive buying behavior. The descriptive design to examine and
quantify relationships between variables such as emotional states, retail environments, and
demographic factors. Exploratory design to explore new dimensions of impulsive buying, particularly in
Nepal's unique cultural and economic context.

Population and Sampling

The target population includes consumers in Nepal, spanning various age groups, genders, income
levels, and shopping platforms such as traditional and digital. The random sampling will be used to
ensure representation across key demographic segments such as geographic locations like (urban vs
rural), male and female, age, and income level, and young and older. The survey will be distributed both
online using platforms like Google forms) and offline through paper questionnaires in retails
environments) to reach a broader audience.

Data collection methods

Primary data will be collected through survey method and interviews. In survey method structured
questionnaires will be distributed online and in-person to gather data on consumer behavior,
preferences, and impulsive buying tendencies. In interviews the semi-structure interviews will
conducted with a subset of respondents to gain deeper qualitative insights. Secondary data can be
collected from academic journals, industry reports, and consumer behavior.

Research instrument
The research questionnaire will be designed including demographic variables such as age, gender,
income, education, and location. Internal factors such as emotional states, personality traits, and self-
control. The external factors such as store layout, promotions, and peer influence. Technological factors
use of e-commerce platforms, social media, and digital payment systems. Behavioral outcomes
frequency of impulsive buying, post-purchase satisfaction, and regret. The questionnaire will use a mix
of Likert scales, open-ended questions for comprehensive data collection.

Conceptual framework and definition of variables

The conceptual framework shows the relationship between the independent variables (Product
category, Financial Independence, Availability of money, Mood of consumer, POS Terminal/ ATM
Facility, Price, Store Layout, Availability of time, Production Promotion, store environment, Reference
Groups) and dependent variable (Impulsive Buying Behavior of consumer of Nepal). The research
framework is shown in the figure below:

Dependent Variables
Independent Variables

Product category

Financial Independence

Availability of money

Mood of Costumer

POS Terminal/ATM Facility

Price
Impulsive Buying
Store Layout Behavior of consumer of
Nepal

Availability of time

production promotion

Store Environment

Reference Group

Figure 1. The Conceptual Framework

Product Category refers to different types of products like FMCGs, electronics, apparels, kitchenware,
grocery, personal care products, toiletries, footwear, accessories, etc.

Financial Independence refers to the set of consumers who are employed and are earning their living.
These consumers are young and do not have major responsibility of taking care of his/her family’s
finances.
Availability of money refers to the amount of budget or extra money an individual can spend that day
during the shopping trip.

Mood of consumers at the time of shopping refers to both positive and negative emotional state of
consumers. Positive mood is connected with excitement, happiness. Negative mood is connected with
anxiety, depression, and aggression.

POS Terminal/ATM facility refers to the availability of a computerized system that can process debit and
credit cards as payment for purchase made in the supermarket or availability of ATMs within the
periphery of the supermarket near (preferably 1 km) the supermarket location.

Price refers to psychological pricing of different products. For instance, attractive price amounts like Rs
199, Rs 498, Rs 999 hits the psychological aspect of consumers to end up in unintended purchases.

Store Layout of a supermarket refers to display of products, size of display and directional signage.
Availability of time for shopping refers to the amount of time consumers feel he/she has available that
day during the shopping at supermarket/retail stores, expressed in hours.

Product Promotion includes advertisements (TVC), promotion schemes such as discount, clearance
sale/sale, offers (buy 1 get 1 free, limited stock, limited time) and coupons/points received on purchase
of certain quantity or amount. Here, the promotion schemes may or may not be known to consumers
prior to their visit to supermarket.

Store Environment includes factors like customer service, staff behavior and ambience (color, interiors,
background music, ventilation, lighting, etc).

Reference Groups refer to peer-based group of a consumer with whom the consumer shops or the
consumer sees its members as role models. The reference group can be friends and family.