Topic+Two


 * Primary Stakeholders **


 * Question to consider for research:**
 * Who are primary stakeholders (e.g.: those who have some opinion/influence regarding the issue, what are their positions?)

It is difficult when trying to establish a certain group and label them impulse buyers, for the simple reason that at some point in time, we are all victims of it. There are those who tend to do so more than others because of specific traits they hold. In the article //Impulse Buying and Variety Seeking: A trait-correlates perspective// certain traits are found to be common in impulse buyers and they are: “high emotional activation, low cognitive control, and spontaneous behaviour in the proximity of an appealing object of attraction.” There are furthermore those that can better self monitor their own actions so as to refrain from making unnecessary purchases. The teenage population succumbs to impulse buying easily because of the amount of disposable income they tend to have. Majority of teens do not have many liabilities towards creditors or other institutions and there is also little restriction on how much of that disposable income they can spend. Credit cards add a whole new dimension to the impulse buy because it is quick and it doesn’t require funds leaving the purchaser immediately.

Credit cards also offer limits that one would usually not need, but the simple fact that they have it can cause them to max out their card. Creditors are succeeding because of impulse buyers, especially since they now come with incentives such as cash back and reward points which can be put towards other things. In fact even if consumers are unable to repay their bill creditors still profit through interest payments. Once this occurs, the rewards are essentially eroded and this does not even include late payments or other fees (Do Reward Credit Cards Encourage Extra Spending). Retailers and their merchandising strategies are essentially the cause of impulse purchases and are perhaps the largest stakeholders. The sales that consumers encounter and the fact that they are for “a limited time only” create a sense of urgency and make consumers feel that they will lose out if they do not purchase the product. Using Wal-Mart as an example their strategy places low priced products at the head of the aisles in the hopes that this will draw customers into the aisles and have them make impulse purchases. Even at checkout lines there are last minute items placed beside the cash registers and so from the time a customer enters to the time that they leave, they are bombarded with products and their pricing strategies. This however is not the same as the same customers purchase products online. It has been found that traffic from online stores mainly come from people that want to buy, not necessarily browse (See It. Gotta Have It). With this we can assume that these purchases are planned and thus are not considered impulse purchases. It may only be a matter of time however for that retailers make online purchases even easier which could influence impulse spending. The internet already has convenience as a promoting attribute for consumerism and with increasing technological advancements we may experience an expansion of the impulse buy.

The final stakeholders for impulse buying are marketing agencies along with marketing departments in organizations. These individuals and organizations play a key role in getting customers into stores whether virtual or physical. Their efforts create brand loyalty and awareness and once these factors reside in the consumer mind they can trigger unplanned purchases. The success of retailers can depend heavily on the success of these advertisers and their continuation depends on the susceptibility of consumers.

**References:**

"Do Reward Credit Cards Encourage Extra Spending?: Impulse Buying Can Cause Financial Difficulties and Personal Debt." //Personal Debt Management//. Web. 03 Mar. 2010. .

"See It. Gotta Have It - Impulse Buying on the Web." //FutureNow's Marketing Conversion Rate Optimization Blog: GrokDotCom//. Web. 03 Mar. 2010. .

Sharma, Piyush. "Impulse Buying and Variety Seeking: A Trait-correlates Perspective." //Elsevier//. Web. .