Annotation.The purpose of this work is to highlight important facts about the modern buying behavior particularly the issue of an impulse buying and its influencing factors. The model of consumer buying behavior is compared to the impulsive buying behavior. During the past couple of years, the worldwide interest and attention has increased towards the study of consumer behavior- “behavioral economics”.  In the modern age of globalization consumer behavior is driven by nontraditional channels. Avoiding and rejecting impulse buying is becoming more and more difficult in presence of current various stimulational strategies leading to a negative impact on the financial situation of consumers. Therefore, in order to avoid impulse spending the author considers and advices consumers to address the rational model of buying behavior since it highlights the need recognition and planned purchase action.

Key words:International economics, globalization, consumer behavior, impulsive buying, impulsive spending. 

In the current stage of globalization international economic trends have high impact on daily lives of consumers. Due to the globalization consumers as well as the manufacturers are facing complex challenges. In this instance researching consumer behavior has become crucial and urgent. Researching consumer behavior stays to be one of the difficult aspects especially for organization which are operating on the global market. Despite some of the similarities still during the purchasing process there are quite a lot of differences to be noticed. This it is not an accidental fact that over the past few years there has been an increase of interest towards “behavioral economics” which researches consumer behavior.

Behavioral economics studies the elements such as: social, cultural, religious, cognitive, emotional and economic factors that are influencing consumer behavior. Also the field of study includes what is determining the social opinion towards the particular market offering and how are the decisions made in the minds of target consumers. It is detected that consumers display different types of behavior in various environments. (Graph 1). 

Graph 1.  Rational model of consumer buying behavior 

 Source: Consumer Behavior (Schiffman L.G.; Kanuk L.L., 2014) 

The above graph demonstrates each rational stage any consumer would go through before concluding the purchasing process. The buyer decision making process can vary in time and have different intervals due to the significance of the product. Sometimes the process can be prolonged in time when in some cases it can have shorter duration depending on the category of a product. For example, purchasing a car would require more time compared to buying a convenience product of daily consumption. The economical situation of an entire country as well as the personal financial ability has an impact on the buyer decision making process. International markets differ economically and also with consumer tastes and demands.

The advancement of modern technological equipment enables customers to make practically any purchase at the international level. If in the past period consumers could only choose the traditional channels nowadays due to the characteristics of globalization sales are stimulated by nontraditional channels such as: online shops, catalogue or TV sales etc.

Impulse buying implies purchasing a product without prior analysis and need identification from the side of a consumer. Consumer prioritizes personal want of possessing a product without analyzing the needs. In most cases impulse buying negatively affects financial situation of a consumer leading to the regret of a purchasing decision.

In most cases impulse buying is unplanned followed by the strong desire of possession and consumer urgently makes a purchase without thoughtful selection. Beatty &Ferrell (1998) define impulsive buying as spontaneous, sudden and urgent purchase, which has no prior shopping objective. Kacen and Lee (2002) emphasize the importance of personal psychological portrait of consumers and explain the impulsive buying action by the strong and urgent desire of obtaining certain product. According to Kacen and Lee (2002) it is rather difficult for customers to reject and manage impulsive buying behavior. While compared to the rational model of consumer buying behavior during the process of impulse buying consumers do not pay adequate attention to the need identification stage. In order to avoid the negative impacts of impulsive buying consumers can take into account the main principles of “rational expectancy” doctrine principles (Silagadze A., Atanelishvili T., Silagadze N. (2010).

The below factors can force consumers towards demonstrating impulsive buying:

• Ø Shortage of a product availability;
• Ø Stimunational strategy,
• Ø Effective/vivid product display,
• Ø Time availability factor;
• Ø Convenient price;
• Ø Psychological characteristics of a consumer;
• Ø Emotional state.

Han et al. (1991) reveals four main types of impulsive buying behavior: 1) Planned impulse buying- purchasing is planned but particular product is not determined yet. 2) Reminded impulse buying-  - after noticing a product in the store consumer suddenly remembers to have a necessity of it. 3) Suggested impulse buying- consumer is under the impression of another person and makes purchase after being advised to do so.  4) Pure impulse buying- consumer breaks the trend of rational shopping and makes purchasing decision urgently.

Conclusion

Thus the interest towards impulse buying has increase leading scholars to researching the “behavioral economics”- consumer buying behavior. Globalization makes it possible for consumers to use nontraditional channels leading to purchasing due to promotional and stimulational strategies of various product manufacturers. Avoiding impulse buying is quite challenging as a consequence of high level promotional strategies and it can have adverse effects on the economical condition of a consumer. Thereby with the purpose of preventing impulsive spending it is recommended to follow the rational model of buying behavior which emphasizes the need recognition stage and making sensible purchase decisions. 

References

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3. Han, Y. K., Morgan, G. A., Kotsiopulo, A., & Kang-Park, J. (1991). Impulse buying behavior of apparel purchasers. Clothing and Textiles Research Journal, 9(3), 15-21. http://dx.doi.org/10.1177/0887302X9100900303
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5. Schiffman L.G.; Kanuk L.L. (2014). Consumer Behavior. Pearson Education. (In English)
6. Silagadze A., Atanelishvili T., Silagadze N. (2010). Economic Doctrines. Georgian National Academy of Sciences. Tbilisi. (In Georgian).