Impulse Purchasing Factors: Online Food Delivery, Gen Y in Malaysia

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This project investigates the factors influencing impulse purchasing behavior in online food delivery services among Generation Y in Malaysia. The research explores the impact of customer reviews, online advertising, sales promotions, and website design on impulsive buying decisions. The study aims to understand how these factors contribute to Gen Y's overspending habits and provides insights for marketers to develop effective strategies to enhance sales performance. The project reviews existing literature on impulse purchasing, social influence, and marketing tools, and outlines research objectives and questions to guide the investigation. The findings of this research can help businesses better understand the online purchasing patterns of millennials and create targeted marketing campaigns.
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Factors Affecting Impulse Purchasing in Online Food Delivery among Gen Y in Malaysia
1.0 Introduction
1.1 Background of research
Over the few years, an advancement in technology has driven the world into the digital
era causing consumer have a new option of shopping which is an online shopping. Many large
and small businesses utilize internet technology to boost their sales and reduce costs. Gradually,
the percentage of online shoppers in Malaysia has been increased over time. The recent survey
by Malaysian Communications and Multimedia Commission showed that people at the age
range of 20’s and 30’s were the highest number of internet user while the percentage of online
shoppers among internet users raised to 53.3% in 2018. Thus, these evidences support the belief
that Generation Y is an essential group of people who contributes to the growth of e-commerce
market in Malaysia by online purchase (San, et al., 2015).
Since the change in consumer lifestyles have shifted to be more time-saving and
convenience-oriented for meal occasions, Malaysians tend to have less energy and time to
prepare meals at home (Agriculture and Agri-Food Canada, 2014). In order to satisfy the
mentioned lifestyles, especially in busy individuals, an online food ordering service has become
popular. It is offering more choices and convenience by allowing customers to order from
various restaurants via internet platforms (Hirschberg, Rajko, Schumacher & Wrulich, 2016). In
other word, one of the product Generation Y mostly purchase is food (Valentine & Power, 2013).
However, during the purchasing decision process, consumers may engage an impulsive
state. According to Khawaja (2018), an impulse purchase illustrates an unplanned and immediate
purchase. It happens when consumers experience a sudden but powerful stimulation to purchase
product offers immediately (Aruna & Santhi, 2015). Apparently, Gen Y are oversending and
indulge in impulse purchasing. UOB Malaysia managing director and country head of
personal financial services Ronnie Lim said millennials’ spending habits would dictate
and shape the consumer market as they would soon make up the largest consumer
demographic.
There are various potential factors influencing impulse purchase behavior. Firstly, Gen Y
are likely to rely on the opinion from their friends and electronic word or mouth when they are
making a decision to buy a particular product (Valentine & Power, 2013). Secondly, a marketing
tool as an online adverting can be used to establish and maintain interaction with consumers.
Nevertheless, online advertising is not the only way to communicate with consumers. Another
communication channel is website. It has been suggested in many studies that website design
should be concerned seriously in order to enhance impulse purchasing behavior in online stores
(Chen, Yeh & Lo, 2017). Lastly, many customers are triggered by a good deal due to economic
reason and perceive of value.
Therefore, this research attempts to examine these factors that could stimulate
impulse purchasing behavior in online ordering food among Generation Y in Malaysia.
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1.2 Problem statements
In these past few years, there have been many news report that Malaysian Millennials
experiencing financial problem as debt caused by impulse purchasing behavior. According to
Asian Institute of Finance (AIF), most of Gen Y-respondents engaged high-cost borrowing, with
47% of them taking expensive credit card borrowing and 38% relying on personal loans. This
survey showed that the majority of Malaysian Gen Y experience overspending from impulse
purchases. As a result, they are warned to be conscious on the danger of impulse purchases
which could be triggered by manipulative marketing practices (Surendra, 2017).
Meanwhile, the internet also allows consumers to find information about the products
easily. These information can discourage their impulse purchases. For instance, the internet
allows consumers to compare the prices, products and reviews with the competitor easily.
Moreover, there are many consumers refuse to shop online as they only see the image of the
products. Retail Dive (2017) contributed that the most reason why consumers choose physical
store over online store is the ability to touch, see and feel the actual products. Therefore, they
can control their impulsive purchasing behavior better causing them to delay their purchasing
decision (Moe and Fader, 2004).
On the other hand, online food delivery service is rising and eating at restaurant is no
longer an occasion for the Gen Y’s. This is mainly due to the popularity of food delivery apps.
Millennial professionals like to work harder and relax harder as well. Since lifestyle changes,
prompt and convenient solutions like online food delivery becoming both necessary and
affordable.
According to a report by the NPD group (2017), 1.7 billion food service visits
represented by the delivery in 2017 while millennia’s are the heavy users. The report made a
comparison that 29% of delivery orders made by millennia’s within a week while less than 50%
of boomers and older use delivery services not more than once in 2 months. This higher
percentage is a main reason for doing this research on Generation Y. Generation Y is also
estimated to have higher purchasing power compared to their parents ever had.
According to Deloitte (2018), convenience plays an important role for millennials in their
frantic lifestyle. Online shopping and online food delivery seen a growth due to the factor lack of
time. Food delivery services play an important role in the Gen Y lifestyle as they remove the
time barrier and guarantee to deliver the food at specific time. However, this also influences
them to overspend on food delivery. Hence, there is a need for this research to find out the
factors that influence the millennials to impulse purchase on online food delivery.
1.3 Research gap
Most of the researches did not focus on a specific product. There is few researches about
impulse purchase in online food ordering especially in Millennials. Instead of it, many studies
highlighted the focused products such as fast food, apparel and luxury goods. Another major gap
is factors being tested. They likely to focus on possible factors affect impulse purchase in
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physical store or socio-demographic. Meanwhile, some variables have not been mentioned often
in many paper such as review from customers and online advertising. Lastly, there are few gaps
have been found under methodology part in the past researches. Although the chosen factors in
this study have been done in the previous study, the researchers used qualitative method.
1.4 Rationale of research
In this competitive market, a traditional way of running business might not be enough to
survive in this digital era. In order to adjust into a current situation, the marketers need to focus
on a new potential target market as Gen Y. It is crucial for foodservice businesses to understand
the online purchasing patterns of millennials to improve their current marketing strategy. If the
foodservice providers obtain a better understanding of the determinants that urge online impulse
purchasing behavior, it would be a great opportunity for the businesses to enhance their sales
performance and attract more customers. Therefore, this research attempts to provide useful
information that help the marketers create a marketing campaign successfully.
1.5 Research objectives
1. To examine the relationship between reviews from customers and impulse
purchases in online food delivery among Gen Y.
2. To determine the effective online advertising towards impulse purchases in online
food delivery among Gen Y.
3. To analyze the effect of sales promotions towards impulse purchase in online food
delivery among Gen Y.
4. To identify the impact of website design on impulse purchases in online food
delivery among Gen Y.
1.6 Research questions
Q1: Does social influence affect impulse purchase of Gen Y?
Q2: What online advertising practices affect impulse purchase of Gen Y?
Q3: What sales promotions enhance impulse purchase of Gen Y?
Q4: Will website designs influence impulse purchase of Gen Y?
1.7 Benefit of the research
Besides, the information would be beneficial for other business industries if the
information is adapted properly. Furthermore, the marketers will be able to design and strengthen
a right marketing campaign which is able to enhance impulse purchasing behavior effectively.
As a result, their marketing strategies will become a competitive advantage over their
competitors.
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CHAPTER 2: LITERATURE REVIEWS
2.1 Review from customers (200 words)
According to Cheng and Ho (2015), online reviews from customers are part of social
influence. Social influence promote impulse purchasing behavior (Moser, Schoenebeck &
Resnick, 2019). It can be defined as “the processes whereby people directly or indirectly
influence the thoughts, feelings and actions of others” (Turner, 1991). Social influence is about
sharing information with others and not necessarily happens only in face-to-face interactions
(Trusov et al., 2010). Marston (2010) stated in his book that Millennials are peer-oriented and
they tend to rely on others’ opinion in decision making.
In the Gen Y’s time, it has broadened due to the social media networks (Kwahk & Ge,
2012). Millennials do not only use Social Media to stay connected with their friends and family,
but also to find information about products, services, promotions, and sales foodservices
offering to them (George, 2011). Although social media serves as rich source of information, it
highly impacts on consumer decision making from the information and opinions retrieved from
the connections (Power & PhilipsWrens, 2011). Likewise, online ratings have become another
most trustful source to customers as a personal recommendation when they are taking
purchasing decision (BrightLocal 2014). Kim, et al. (2017), explained that these forms online
customer reviews are Electronic Word of Mouth (eWoM) which influences customers’
purchasing decision.
eWoM
https://www.sciencedirect.com/science/article/abs/pii/S0148296314004007
https://www.researchgate.net/publication/
306526906_The_Effect_of_Online_Customer_Reviews'_Cha racteristics_on_Sales
https://www.brightlocal.com/wp-content/uploads/2014/07/Local-Consumer-Review-Survey-
20141.pdf
https://www.researchgate.net/publication/
309855994_The_Impact_of_Electronic_Word-of-
Mouth_on_Online_Impulse_Buying_Behavior_The_Moderating_role_of_Big_5_Personali
ty_Traits
https://www.researchgate.net/publication/
306526906_The_Effect_of_Online_Customer_Reviews'_Cha racteristics_on_Sales
2.2 Online advertising
Advertising plays an important role in encouraging impulse purchases in online shopping
(Mendenhall, 2015). Marketers use advertising as a communication tool to convey information
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and encourage an audience to make a purchasing decision of product or service (Ryans, 1996).
The product information, its benefits and brand name of products can be known to customers
through the advertisement (Ingavale, 2013). In many case at the purchase time, the customer buy
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products due to advertisement recall (Khalid, 2016) According to a study by Joshi (2012), people
prefer online advertisement as a good promotional tool for knowing about the local brands and
global brands as well. According to Marston (2011), Millennials are more technology savvy and
interest in Social Media rather than Baby Bloomer. Thus, this tremendous rise of internet has
also advanced the advertisement to another level Deloitte, 2015).
Online advertising has its own strengths as it offers different forms of advertisement such
as text, photo, audio & video and multimedia effects (Khong, 2010). These new variety of
contents have also bridge the relationship gap between advertisers and target audiences, from
traditional form of one way communication to interactive communication (Tang and Chang,
2017). The research done by Pawar (2014) showed that although online advertising includes all
the features available in offline advertising, it gives more advantage compared to offline
advertising due to the high level of scope and its global reach through internet. Some examples
of online advertising such as social media ads, banner ads, email newsletters, hunt engine results
pages, pop-ups, contextual ads and spyware (Suryawanshi and Khandare, 2016).
Besides, Anusha (2016) explained that online provides the option of even late chances
while the ad campaign is going on, but also customization feature that can be done in online ad
campaigns and it is cheaper than print advertising. Online ad campaigns mostly include banner
advertisements which are smaller boxes of ads which can be seen in many web sites. Such ads
can create product awareness and can bring traffic to the business website. The online advertisers
have easy control over the target market with banner ads such as demographic targeting,
geographical targeting, behavioral targeting and site based targeting. These are the usual ways
that online advertisers can pick their target which is a major win for them.
Furthermore, online advertising offers topical and recent information and even news
about the business through interactive and colorful catalogue (Tavor, 2011). According to a
study by Sakarya and Soyer (2013), there are cultural differences in online shopping behaviors of
consumers between utilitarian and hedonic online shoppers while they also share similar
consumption values.
https://www.researchgate.net/publication/
261031147_Impact_of_Advertisements_on_Purchase_Decisi
on_of_Youth_with_reference_to_Consumer_Goods
2.3 Sales promotions
According to Balaghar et al., (2012), Sales promotion is the most ideal tool next to
advertising. Totten & Block (1994) explained that sales promotions refers to many type of sales
techniques and incentives that generates quick or short term effects in Sales. Lehman and Winer
(2002) and Walsh (2000), argues that sales promotions are related to special offers which is
focused on creating demand at the given period in which they are fixed. According to Balaghar
et al., (2012), Sales promotion is the most ideal tool next to advertising. Blattberg et al., (1981)
argued that sales promotion boost the acceleration of purchases in terms of quantity bought.
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Discount offer is the simple way to directly reduce the purchase price with offer clearly labeled
at the time of purchase. According to Ndubisi (2005), discount offer plays vital role in
influencing consumer trial behavior of a product/service. This was also supported by Osman et
al., (2011), but they also argue that increases short term sale. Mittal and Sethi (2011) argues that,
price discounts are more effective in purchase acceleration, brand switching, reducing stock
piling and new product trial.
A recent study investigated that online promotions had a positive significant effect on
online impulsive purchasing behavior (Lai, 2017). Applebaum (1995) developed the concept
that unplanned purchase does not need to occur before entering the store, but it could be
resulted from the exposure to a stimulus created by a sales promotion in the store. In this way,
Stern (1962) explained that a planned impulse purchase occurs when a customer enters the store
with the intention to buy a particular product in mind, while expecting to make other buys
depending on promotions and sales. Therefore, sales promotions are also the most influencing
factors on online food ordering (Rathore & Chaudhary, 2018).
Likewise, price discount is a well-known marketing strategy for attracting consumers by
offering an incentive or extra value that stimulate consumers to buy the products in discount
straight away (Ying and Huang, 2014). Tu et al. (2017) proposed that online promotions are used
to enhance customers’ perceived value in order to drive impulsive purchasing behavior.
Furthermore, Yang and Mao (2014) described that price discount is perception of consumer for
saving, the higher discount rate they could get, the more they could save from purchasing a
specific product. These studies support the conclusion of Blatterberg et al. (1981) that price
reduction strongly effects on unit sales.
Rungrakulchai (2013 and Huang et al. (2014) discovered in their studies that there is a
positive relationship between high price discount and perception of high product qualityPrice
discount plays a significant role in impacting customers searching intention (Grewal et a., 1998).
Consumers perform lot of search in different E-commerce website or online stores; evaluate the
prices offered by different vendors, prior to make the purchase order (Wakefield and Inman,
2003). Therefore, online promotion activities could capture consumers’ attention as well as
positively influence their perceived value, they increase their impulsive buying behavior (Tu, et
al, 2017).
2.4 Website design
Website quality consists of customization, interactivity, cultivation, choice, character,
community and convenience (Srinivasan et al. 2002); appearance, specific content, content
quality and technical adequacy (Liao et al.2006). According to Cho and Park (2001), website
design is one of the important factors that influence customer satisfaction in online business.
Therefore, Stegelin (2007) suggested that the food industry must build an effective marketing
communication to the Millenials and delivery a sufficient level of message consistently to
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sustain desired levels of comprehension, interest and awareness. Consequently, marketers are
required to
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improve their website design attributes to urge impulsive purchasing behavior of Gen Y (Shin et
al. 2015).
Suhud amd Herstanity (2017) concluded that a positive emotion significantly affects online
impulse purchases among young shoppers. Also, Tarawich discovered that “the overall
enjoyment of user experience” relates to the aesthetics of web design. Typically, the components
of website design relate to images, color, shapes, fonts and use of photographs can provide a
sense of aesthetic and emotional appeal to the users (Garrett, 2003; Tranctinsky, 2003; Cyr et al.,
2009; Zhang, 2013) According to Liu et al. (2013), visual appeal and ease of use are crucial
online cues for online impulse purchasing behavior.
According to Desmet and Hekker (2007), a good website should not only look neat and
appealing, but also should be in high level of usability as it impacts the user’s affective state.
Hence, higher level of usability should be ensured in a well designed website (Cristobal, 2006).
Nielsen (1994) defines website usability as the ease of how user can manage the website system
and understand its functions, the website’s efficiency, level of error avoidance and the user
satisfaction. Especially, when a powerful searching engine is provided in the website, it creates
more information to online users (Koufaris, 2002). However, McKinney et al. (2002) addressed
that “It does not matter how perfect the information content of website has been provided, if an
online user experiences the difficulty in searching and obtaining the needed information, he tends
to leave the website”.
2.5 Price of products
Pricing strategy defined as process at which product within the market tends to get sold.
In order to establish the selling price of commodities there are several pricing strategies as
penetration pricing, price skimming, product life cycle pricing and competitive pricing etc.
Henceforth, it is the crucial factor that aids to attract the customer towards commodities.
Additionally, Suhud amd Herstanity (2017) stated that pricing of the commodity can be termed
out as something differ its price. It is the art of art of translating in the quantitative terms the
value of product to customer at point of time. Herein, it can be stated that key to pricing is to
build value into the commodity and price accordingly. In contrary to Liu et al. (2013),
stated that pricing termed out as different price of product for differ customers and varied prices
for the same customer at different times. Thus, if entity adopts the skimming method that the
price of the commodity would be generally high in initial period. If the entity adopts market
penetration, the price of the commodity would be normally law.
2.6 Service delivery
The service delivery system can be termed out as configuration of technical advancement
and enterprise networks that has to be designed in order to deliver and to satisfy the needs, wants
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of the customers. Henceforth, online food ordering market inclusive of food prepared by
restaurant, prepared by individual people and the groceries that being order online and then
picked up or to deliver. It is defined as process of ordering food from any local restaurant or any
web page that offer service of deliver at the door step. Hence, order must get inspected by the
drivers, meals that handed from restaurant to the driver. Thus, service as online food delivery is
one of the fastest growing industry. Therefore, it can be termed out as online food delivery is one
of the innovation that is beneficial in terms to enhance the growth of food market.
2.5 Impulse purchase
Impulse buying behaviours defined as factor that affects choice and decision of
customers. According to the view of Suhud amd Herstanity (2017) stated that the income is one
of the major component that affects the impulse buying. There are number of factor that can
impulse behaviours of customers as discount, combo offers, innovation, changing trends and
advertisement etc. In the current scenario, the people buy things on impulse behavior that is
without giving much consideration over the factors as price, quality and time. As per the view of
to Liu et al. (2013), stated that women have more impulsive behavior rather than man. Thus,
atmosphere of the store also influences the buying behavior of customers. Thus, online delivery
of the food services is one of the factors that impulse the behavior of the customer at huge level.
Online services provide ease of services as the people get their food at their food step. In the
current scenario, the customers get influenced with the outside scenario and changes in current
trends. Thus, promotional strategies that are carried out by the enterprise are mainly influences
the purchasing pattern of customers.
3.1 Research hypothesis development
Reviews from customers:
H1: There is significant or positive relationship between social influence and purchasing
intention of Gen Y.
Online advertising:
H2: There is significant or positive relationship between online advertising and impulse
purchase of Gen Y.
Website design:
H3: There is positive relationship between website design and impulse purchase of Gen Y.
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Sales promotions:
H4: There is positive relationship between sales promotion and impulse purchase of Gen Y.
Price of products
H5: There is significant or positive relationship between price of products and impulse purchase
of Gen Y.
Service delivery
H6: There is significant or positive relationship between service delivery and impulse purchase of Gen Y.
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Reviews from
H1
customers
Online
H2
Impulse purchaseAdvertisements
H3
Sales
promotions
H4
Website design
Figure 3.1.1 the proposed framework
3.2 Operational definition of each variable
3.2.1 Dependent variables
Impulse purchase
3.2.2. Independent variables
Review from customers
Online advertising
According to American Marketing Association, advertising can be defined as “any paid
form of non-personal presentation and promotion of goods, services and ideas by identified
sponsors” (Kazmi and Batra, 2008). Priyanka and Singh (2012) defined online advertising “as
the promotion of products, services, brand or a company on the internet”. Anusha (2016) further
explained online advertising as “the use of internet to promote a marketing message to the
consumers”. It comprises of banner ads, search engine marketing, interstitial ads, social media
marketing, mobile marketing, email marketing.
Sales promotions
According to Business Dictionary (N.A), Discount can be defined as “The act of offering
a lower price temporarily in order to enhance the effectiveness of product sales efforts to cost
sensitive consumers”. According to American Marketing Association, Sales promotion are
“those activities that supplement both personal selling and advertising, coordinate them and help
to make them more effective” (Cummins et al., 2002).
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Website design
According to Ranganothan and Grandon (2012), “website design represents the way in
which the content is arranged in the website”. Jeffery and Hodge (2007) found that the majority
of consumers tend to purchase an additional product that they did not plan to purchase when they
visited the website.
Questionnaires
1. Reviews from customers
No. Questions Authors
1. I rely on reviews in order to make a Magesh, C. (2014)
decision on ordering food online.
2. Received high ratings for online food Almana, M.A and Mirza, A. (2013)
ordering make me feel like to order it.
3. Reviews and ratings help me to Elaziz-Abd, E.M., Aziz, M.W., Khlifa, A.S.G.
quickly select the meals for online and Ma’youf, A.A.M. (2015)
ordering.
4. I trust in post-purchase feedbacks Baudis, N. (2016).
given by other customers.
5. Positive reviews of others encourage Zou, Tingting. (2016).
me to purchase online food delivery
spontaneously.
2. Online advertisements
No. Questions Authors
1. Online advertisement is able to create Maraikar, A.A.N. (2017)
my awareness towards the advertised
food and restaurant.
2. I click on links in social media He, Q. & Qu, H. (2018).
advertisements to learn more about the
advertised food or restaurant.
3. Advertisements through social media Customers’ Attitude Towards Social Media
are more interesting and attractive than Marketing.
traditional advertisements.
4. Online advertising influence me to (2014). Consumers’ Attitude Towards Online
order the advertised food online. Advertising: The Study on Informational
Responses.
5. The picture on the online Lu, H.P. & Su, S.C. (2018).
advertisement urge me to order food
online.
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3. Sales promotions
No. Questions
1. I will change what I had planned to
buy in order to take advantage of sales
promotion of online food ordering
service.
2. Sales promotions encourage me to
buy purchase more quantities of the
same order for online food ordering.
3. When I purchase a restaurant that
offers sales promotions, I feel I am
getting a good or valuable purchase.
4. Sales promotions drive me to order
food online quickly.
5. Sale promotions change my mind to
buy food online from new meals or
another restaurant which I have not
tried before.
4. Website design
No. Questions
1. I feel like to purchase food order if
there is sufficient description of
the food provided.
2. The appearance (i.e. the overall
graphical look) on food online stores’
website influence my buying
emotion.
3. When I browse the online food
delivery website, I have the urge to
purchase items other than or in
addition to my specific shopping goal.
4. The ease of website’s function helps
me to purchase an online food order
effectively.
5. The navigation of food website on
food website help me discover food
and getting shopping idea more
quickly.
5. Impulse purchase
No. Questions
1. You order food online according to
how you feel at the moment.
Authors
Liew, S.Y. & Falahat, M. (2019).
Vishwavidyalaya, S.K. A Study on The
Effective Promotional Strategy Influencing
Customer For the Products of Big Bazaar and
D Mart.
Ahmad, A.S. (2015).
Rahman, R. (2016). City.
Limbore, V.N. & Wable, S.M. (2013).
Authors
Chen, Y. and Zhang, L. Influential Factors For
Online Impulse Buying in China: A Model and
Its Empirical Analysis.
Aliyar, S. & Mutambala, C. (2015).
Parboteeah, D.V., Valacich, J.S. and Wells,
J.D. (2009).
Athapathu, C.J. & Kulathunga, D. (2018).
Authors
Pradhan, V. (2016).
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2.
3.
4.
5.
You sometimes feel that something
inside push you to order food online.
You often make an unplanned/impulse
food ordering from the internet.
You order a new meal, even if I
have not heard of it yet.
You could not resist to order food
online.
Before you visit the site, you did not
have the intention to order this
meal.
You immediately order food online
when you see something really
interesting.
Gure, I. (2012).
Crafts, E.C. (2012).
(2018). Factors Affecting Online Impulse
Buying: Evidence from Chinese Social
Commerce Environment.
(2013). Impulse Buying Behavior and
Moderating Role of Gender among Iranian
Shoppers.
CHAPTER 3: METHODOLOGY
3.0 Introduction
3.1 Research design
3.1.1 Quantitative research
3.1.2 Descriptive research
3.2 Data collection methods
3.2.1 Primary data
3.3 Sampling design
3.4 Research instrument
3.4.1 Questionnaire design
The 150 sets of questionnaires will be distributed via Google Form.
3.5 Data analysis
3.5.1 Descriptive analysis
3.5.2 Scale measurement
3.5.2.1 Reliability test
3.5.2.2 Validity test
3.5.3 Statistics test
3.5.3.1 Correlation and statistical significant
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3.5.3.2 Multiple regression
CHAPTER 4: DATA ANALYSIS
4.0 Introduction
4.1 Finding and analysis
4.1.1 Respondent demographic profile
Gender
Frequency Percent Valid Percent Cumulative Percent
Male 58 38.7 38.7 38.7
Valid
Female 92 61.3 61.3 100.0
Total 150 100.0 100.0
Interpretation - From above table it can be interpreted that out of 150 sample, 92 were females and
58 were males. Thus, the demographic take in this study are females. They are taken to identify what
are the factors that affect impulse purchasing in online food delivery in Malaysia in Gen Y.
Age
Frequency Percent Valid Percent Cumulative Percent
Valid 15-20 40 26.7 26.7 26.7
21-25 74 49.3 49.3 76.0
26-30 19 12.7 12.7 88.7
30-35 17 11.3 11.3 100.0
Total 150 100.0 100.0
Interpretation – By interpreting table it can be analyzed that 40 people belong to age 15-20, 74
belong to 21-25, 19 belong to 26-30 and 17 from 30-35. From this it can be evaluated that most
people belong to age of 21-25. In this focus is on young generation that is why most samples belong
to age 21-25. It has helped in analyzing factors on Gen Y.
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Education level
Frequency Percent Valid Percent Cumulative Percent
Valid Secondary level 27 18.0 18.0 18.0
Diploma level 21 14.0 14.0 32.0
Undergraduate 74 49.3 49.3 81.3
Post graduate 28 18.7 18.7 100.0
Total 150 100.0 100.0
Interpretation – It can be interpreted from statistics that out of 150 samples, 27 education levels is
secondary, 21 is diploma, 28 is post graduate. Whereas 74 are undergraduate. So, it can be analyzed
that emphasis is on undergraduate as they mostly order food online. With this it is easy to collect data
and interpret factors affecting impulse purchase.
Employment status
Frequency Percent Valid Percent Cumulative Percent
Valid Student 75 50.0 50.0 50.0
Employed 50 33.3 33.3 83.3
Unemployed 12 8.0 8.0 91.3
Others 13 8.7 8.7 100.0
Total 150 100.0 100.0
Interpretation- The table depicts that 150 participants were taken for study. The table describe the
employment status of student. In this it can be found that 75 were students, 50 were employed, 12
unemployed and 13 others. Therefore, most participant were students. For scholar it is easy to gather
data as student define Gen Y.
Monthly income
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Frequency Percent Valid Percent Cumulative Percent
Valid Less than 67 44.7 44.7 44.7
RM1,500
RM1,501-2,000 31 20.7 20.7 65.3
RM2,001-2,500 16 10.7 10.7 76.0
RM2,501-3,000 22 14.7 14.7 90.7
More than 14 9.3 9.3 100.0
RM3,001
Total 150 100.0 100.0
Reliability test
Independent variables Cronbanch’s Alpha
Reviews from customers .700
Online advertisements .793
Sales promotions .740
Website design .782
Correlation analysis
Total value Total value Total value Total value Total value
of reviews of online of sales of website of impulse
from advertiseme promotions design purchase
customers nt
Total value of Pearson 1 .354** .369 ** .332** .224**
reviews from Correlation
customers
Sig. (2- 0.000 0.000 0.000 0.006
tailed)
N 150 150 150 150 150
Total value of Pearson .354** 1 .340** .315** .419**
online Correlation
advertisement
Sig. (2- 0.000 0.000 0.000 0.000
tailed)
N 150 150 150 150 150
Total value of Pearson .369** .340** 1 .482** .370**
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sales Correlation
promotions
Sig. (2- 0.000 0.000 0.000 0.000
tailed)
N 150 150 150 150 150
Total value of Pearson .332** .315** .482** 1 .271**
website Correlation
design
Sig. (2- 0.000 0.000 0.000 0.001
tailed)
N 150 150 150 150 150
Total value of Pearson .224** .419** .370** .271** 1
impulse Correlation
pruchase
Sig. (2- 0.006 0.000 0.000 0.001
tailed)
N 150 150 150 150 150
**. Correlation is significant at the 0.01 level (2-tailed).
Multiple linear
regression
Model Summaryb
Adjusted R
Std. Error
of the
Change
Statistics
Model R
R
Square Square Estimate
R Square
Change
F
Change df1
1 .486a .237 .216 .89530 .237 11.236 4
a. Predictors: (Constant), Total value of website design, Total value of online
advertisement, Total value of reviews from customers, Tot
b. Dependent Variable: Total value of impulse pruchase
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ANOVA a
Sum of
Model Squares df Mean Square F Sig.
1 Regression 36.025 4 9.006 11.236 .000b
Residual 116.227 145 .802
Total 152.252 149
a. Dependent Variable: Total value of impulse pruchase
b. Predictors: (Constant), Total value of website design, Total value of
online advertisement, Total value of reviews from customers, Total value of
sales promotions
Interpretation: It can be interpreted from above that monthly income of 67 respondents were
less than RM 1500, 31 range between RM 1501- 2000, 16 between RM 2001-2500, 22 between
RM 2501-3000 and 14 range above RM 3001. From this it can be stated that average income of
sample is less than RM 1500.
From reliability table it is interpreted that cronbanch’s alpha value of independent variables
range between .7 to .8. So, it is acceptable. The reviews of customer value is .700, online ad
is .793 sales promotions is .740 and website design is.782. Thus, these all dependent variables
are highly consistent. There is high level of internal consistency among them.
Correlation analysis
Interpretation –
From table it can be analyzed that correlation value of review of customer with online ad is
P= .354 which is less than P<0.05. Also, with sale promotion is P= .369 and with website design
is .332. The value with impulse purchase is .224. Therefore, there is no relationship between
reviews of customer with all factors.
The significant value of online ad with review of customer is P=.354 and with themselves
is P=1. Moreover, with sales promotion P=.340 and website design is .315. The significant value
between impulse purchase and online ad is P=.419. Thus, all values are less than P=0.05 which
state that there is no relationship between online ad and all factors.
It can be analyze from table significant value of sales promotion and review of customer
is .369. the P value between online ad and sales promotion is P=.340. Correlation of sales
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promotion with themselves is 1 and with website design is .482 and impulse purchase is .370.
Hence, it is evaluated that there is no relationship between sales promotion and all other factors.
The relationship of website design with customer review is .332. The significant value of
online ad and website design is P=.315 and with sales promotion is .482. Also, correlation of
website design with themselves is 1. The P value obtained is .271 with impulse purchase. From
this it can be evaluated that there is no significant relationship between website design with other
factors.
From above table it can be interpreted that significant value obtained between impulse
purchase and customer review is .224 and with online ad is .419. The P value of sales promotion
with impulse purchase is .370. Also, with website design is .271. The correlation of impulse
purchase with themselves is 1. Therefore, it can be stated that there is no significant relationship
between impulse purchase and other factors.
MLR – It can be interpreted from table that significant value is P= .000 which is less than
P<0.05. From this, it can be stated that in multiple regression there is no significant relationship
between impulse purchase and independent variable. This means that website, design, sales
promotion, etc. does not relate with purchase. Thus, Gen X behavior is not influenced by the
factors.
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.B Std. Error Beta
1 (Constant) -.114 .529 -.215 .830
Total value of reviews .010 .115 .007 .086 .932
from customers
Total value of online .413 .104 .321 3.970 .000
advertisement
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Total value of sales .333 .125 .231 2.658 .009
promotions
Total value of website .085 .129 .056 .663 .509
design
a. Dependent Variable: Total value of impulse purchase
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Hypothesis Results
H1: There is significant
or positive
relationship between social influence and
purchasing intention of Gen Y.
It can be interpreted that the significant value
obtained of P= .932 that is greater than
P<0.05. Thus, there is positive relationship
between social influence and purchasing
intention of Gen Y.
H2: There is significant or positive
relationship between online advertising and
impulse purchase of Gen Y
The significant value obtained from table is
P= .000 which is less than P<0.05. Thus, it is
analyzed that there is no positive relationship
between online advertising and impulse
purchase.
H3: There is positive relationship between
website design and impulse purchase of Gen
Y.
The significant value obtained from data is
P= .009 which is less than P<0.05. It means
that there is no relationship between website
design and impulse marketing in Online
Food Delivery among Gen Y in Malaysia.
H4: There is positive relationship between
sales promotion and impulse purchase of
Gen
Y.
Here, significant value interpreted is P=.509
which is greater than P>0.05. Hence, it can be
analyzed that there is positive significant
relationship between sales promotion and
impulse purchase.
CHAPTER 5: CONCLUSION AND RECOMMENDATION
CONCLUSION
Hereby, it can be concluded that technological advancement is crucial to bring
streamlined business operations within the enterprise. With the advent of technical advancement,
the online shopping has continually increasing. Thus, lifestyle of the consumer has vast impact
on online food delivery of food services. Thus, present report is based on to determine the impact
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of Factors Affecting Impulse Purchasing in Online Food Delivery among Gen Y in Malaysia.
From the above findings it has been found out the the factors as discount, innovation, changes in
trends and social factors plays the crucial in impulsive behavior of customers. Thus, this
conclusion corresponds to the literature in impulse buying of customers. Hence, in this report the
literature review has been conducted in terms to determine the depth implication about the
purchasing behavior of the customers towards the online purchasing of food services.
Thus, present report has covered depth SPSS technique so that depth and reliable
information can be gathered. As the matter of the fact results have found that consumers are
becoming more demanding.
RECOMMEDATION
On the basis of above report, the recommendation can be given in below contexed
manner as-
It is highly recommended to the marketers and business that they must have pay more
attention to store atmosphere and online strategies that aids to conduct the business
activities systemically.
The entity must take initiatives to build better relationship with customers and impulse
purchases in online food delivery among Gen Y. Bt maintaining good relationship with
customers the entity can promote its business activities in systematic approach.
Entity should get connect with people by use of effective online advertising towards
impulse purchases in online food delivery among Gen Y and this leads to gain
competitive advantage in market. Hence, online delivery service is the tool that attracts
and impulse the behavior of customers towards purchasing more commodities.
The enterprise should have the use of sales promotions towards impulse purchase in
online food delivery so that effective and efficient working can get done.
The entity should take initiatives to make website design that can attract the customers
and can also impulse purchases of customers in online food delivery among Gen Y.
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