An Exploratory Investigation into Impulse Buying Behavior in a Transitional Econ omy: AStudy of Urban Consumers in VietnamAuthor(s): Nguyen Thi

Tuyet Mai, Kwon J ung, Garold Lantz, Sandra G. LoebSource: Journal of International Marketing, Vol . 11, No. 2, Special Issue on Marketing inTransitional Economies (2003), pp. 1335Published by: American Marketing AssociationStable URL: http://www.jstor.org/s table/25048931 . Accessed: 04/05/2011 08:10Your use of the JSTOR archive indicates your acceptanc e of JSTOR's Terms and Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Condi tions of Use provides, in part, that unlessyou have obtained prior permission, y ou may not download an entire issue of a journal or multiple copies of articles, and youmay use content in the JSTOR archive only for your personal, non-commerc ial use. Please contact the publisher regarding any further use of this work. Publisher c ontact information may be obtained at . http://www.jstor.org/action/showPublisher?publisherCode=ama. . Each copy of any part of a JSTOR transmission must contain the same copyright no tice that appears on the screen or printedpage of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archi ve. We use information technology and tools to increase productivity and facilit ate new formsof scholarship. For more information about JSTOR, please contact su pport@jstor.org. American Marketing Association is collaborating with JSTOR to digitize, preserve and extend access toJournal of International Marketing. http://www.jstor.org

An Exploratory Investigation into Impulse Buying Behavior in a Transitional Economy: A Study of Urban Consumers in Vietnam ABSTRACT As a transitional economy Vietnam is open to many new mar keting experiences. Along with slowly increasing wealth, changes are occurring in the retail environment as stores begin to replace individual vendors. The changing retail environment suggests the usefulness of understanding shopping behaviors relevant to retail settings. The authors examine impulse buying behaviors of urban consumers in Vietnam. The authors con ducted an exploratory study that included both qualitative and quantitative methods to provide a general understanding of ur ban Vietnamese consumers' impulse buying behaviors. Results show that individualism, age, and income are significantly re lated to impulse buying behaviors of Vietnamese consumers. In addition, personal-use products are the most common impulse purchase items, despite the collectivist nature of consumers in Vietnam. The authors' findings suggest that, at least with re spect to impulse buying and despite cultural differences, con sumers from transitional economies such as Vietnam may share some common tendencies and behaviors with consumers in ad vanced economies. The authors discuss other observations and conclude with suggestions for further research. Nguyen Thi TuyetMai, Kwon Jung, Garold Lantz, and Sandra G. Loeb The movement to freer markets in transitional economies such as China, Vietnam, and Eastern Europe has generated great in terest in marketing challenges unique to these countries (Batra 1997). Accordingly, marketing issues, and specifically con sumer behaviors, in transitional economies are receiving in creasing attention from both scholars and practitioners. Vietnam started its economic reform in 1986, when it shifted from a centrally planned economy to a market economy. Sim ilar to other transitional economies, there is a rapidly grow ing middle class in Vietnam, especially in major cities (Speece and Nair 2000). The emerging middle-class con sumers are an attractive market for international firms be cause they are increasingly exposed to Western products and lifestyles through the media (Cui and Liu 2001). Accordingly, because of the increasingly important role of international business and the growing interest in cultural differences in consumer behavior (Maheswaran and Shavitt 2000), it is nec essary to examine consumer behaviors in general and con sumer buying behaviors in particular in transitional economies, including Vietnam. Submitted May 2001 Accepted May 2002 ? Journal of International Marketing Vol. 11, No. 2, 2003, pp. 13-35 ISSN 1069-03IX 13

In the area of consumer behavior, impulse buying is consid ered an important and widespread phenomenon. For more than 50 years, a considerable amount of research has exam ined this behavior; however, as in many other areas of con sumer research, studies on impulse buying have used theoretical frameworks based on evidence from Western cul tures and primarily from U.S. culture. Impulse buying behav iors are presumed to be largely universal in nature; however, local market conditions as well as social and cultural forces could influence the way consumers operate on impulse (Rook 1987; Shamdasani and Rook 1989). Although most research examining impulse buying behavior is from the United States, a few studies have examined impulse buying behaviors in other countries, such as the United Kingdom (Bayley and Nan carrow 1998; Dittmar, Beattie, and Friese 1995; McConatha, Lightner, and Deaner 1994), South Africa (Abratt and Goodey 1990), and Singapore (Shamdasani and Rook 1989). Almost no research has examined impulse buying behavior in transi tional economies; therefore, we believe that examining this be havior in a transitional economy, such as that of Vietnam, will contribute to a more complete understanding of this important consumer behavior. Conceptual Background and Hypotheses Vietnam: The Research Context The term "transitional economy" refers to those countries that were centrally planned but now are undergoing a market transition (Desai 1997; Fforde and Vylder 1996). The transi tion of these countries also involves the movement from command to free market economies (Batra 1997) and from closed to open economies (Shultz and Pecotich 1997). Transi tional economies are considered emerging markets with growth potential (Batra 1997), and growth rates are especially notable among transitional economies in Southeast Asia (Shultz and Pecotich 1997). Vietnam started Doi Moi, or its economic reform, in 1986. High growth rates have been the result: Almost 9% growth was achieved between 1992 and 1997 (Nguyen 2000). Although the growth rate decreased to 5.8% in 1998, it hit 6.8% in 2001, which, after China, is the second-highest growth rate in the region and among develop ing economies {Vietnam Investment Review 2002). Vietnam is considered a promising market for both local and international firms: The country has a population of nearly 77 million, of which more than 80% live in rural areas and approximately 20% live in urban areas (Nguyen 2003). Popu lation density is high in urban areas, especially in big cities. There are about 3 million people living in Hanoi and more than 5 million people living in Ho Chi Minh City (Thong Ke Publishing 1999). Similar to other transitional economies and attributable to Doi Moi, the standard of living has increased for all citizen groups in Vietnam (Do 1997; Fforde 1997; Shultz and Pecotich 1994), 14 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

especially in big cities with increasing middle-class popula tions (Speece and Nair 2000). The findings from a survey con ducted by the market research company Taylor Nelson Sofres suggest that emerging consumers, or the "consuming class," account for an average of 37% of the population in major cities and have average monthly income per household of US$350 (Lan Anh 2001). These consumers have consumption and entertainment habits such as wandering the streets and shopping and playing sports (Lan Anh 2001). In addition, the emerging high-income consumers are more demanding shop pers and tend to spend more money when shopping. Viet nam's General Statistics Office (2000) reports that nearly 77% of the population living in rural areas has a per capita average annual income slightly more than US$150. The figure is more than US$600 for people in Hanoi and US$900 for people in Ho Chi Minh City. In terms of marketing infrastructure, although wet markets remain popular in rural areas in Vietnam, supermarkets and shopping centers are increasingly popular in major cities. At present, there are approximately 60 supermarkets in Hanoi and approximately 70 in Ho Chi Minh City (1080 Service 2001). In addition, many small shops along streets, shopping centers, and wet markets provide a variety of products and services for different income groups. Consumers can easily find both foreign and local products that range from expen sive to inexpensive, which is different from before the eco nomic reform (Do 1997). According to Beresford and Dang (2000), such availability is like "a drought meeting a rain storm" for Vietnamese consumers, especially for the new middle-class consumers who have higher income because of Doi Moi and enjoy the sudden increase in consumer goods availability. Along with the "openness" and liberalization of the Viet namese economy have been many changes in the value sys tem and standards, which has caught the attention of public and government authorities and has caused much debate. The move toward the market economy "turns [the value sys tem and standards] upside-down compared to those in the centrally planned and subsidized economy, and erodes tradi tional values" (Boothroyd and Pham 2000, p. 151; see also Toyama 2001, p. 20). In terms of consumption patterns, more attention is paid to the differences between the segments of old thinking and new thinking and between the haves and the have-nots (i.e., rich versus poor) (Shultz and Pecotich 1994). The "old thinking" group is more likely to include older people in the population who lived for a longer time before the economic reform and those who may not have many opportunities to access the fruits of Doi Moi. Accord ingly, these people are likely to hold more traditional values and to receive less modern influence. Conversely, the "new Impulse Buying in a Transitional Economy

thinking" group is more likely to include a younger popula tion that is more likely to have access to global media and thus be exposed to worldwide fashion and modern lifestyles. This group includes "urban nouveau riche ... and generally those people who are receptive to the seduction of goods" (Shultz and Pecotich 1994, p. 224). Given the changes in the marketing environment, there is po tential for impulse buying to occur, especially in major Viet namese cities. Moreover, it will be worthwhile to observe how a buying behavior that is widely recognized by its per vasiveness in Western, developed countries operates in Viet nam, a transitional Asian economy. Impulse Buying Impulse buying is considered a pervasive and distinctive as pect of consumers' lifestyles in the United States. It is reported that almost 90% of people make occasional purchases on im pulse (Welles 1986), and impulse buying accounts for up to 80% of all purchases in certain product categories (Abrahams 1997; Smith 1996). Accordingly, over the past 50 years, there have been many studies examining impulse buying behavior. Extant research has focused on a variety of aspects related to impulse buying, but mostly on the underlying nature of im pulse buying, the definition and measurement of the con cept, and the attempt to distinguish impulse buying from nonimpulse buying (Cobb and Hoyer 1986; Piron 1991,1993; Rook 1987; Rook and Hoch 1985). In marketing literature, impulse buying historically has been defined simply as unplanned purchasing (e.g., Cobb and Hoyer 1986; Kollat and Willett 1967). Rook (1987, p. 191) re defines impulse buying as occurring "when a consumer ex periences a sudden, often powerful and persistent urge to buy something immediately. The impulse to buy is hedo nically complex and may stimulate emotional conflict. Also impulse buying is prone to occur with diminished regard for its consequences." Impulse buying is described as relatively extraordinary, exciting, and more emotional than rational, and it is characterized by (1) relatively rapid decision making and (2) a subjective bias in favor of immediate possession (Rook 1987; Rook and Hoch 1985). According to Burroughs (1996, p. 463), "Rook's (1987) inquiry provided a notable lift to the study of impulsive buying." Beatty and Ferrell (1998, p. 170) slightly extend Rook's (1987) definition of impulse buying by defining it as "a sud den and immediate purchase with no pre-shopping inten tions either to buy the specific product category or to fulfill a specific buying task." By building on the conceptualizations of previous research, impulse buying could be defined as an unplanned purchase characterized by (1) relatively rapid de 16 Nguyen Thi Tuyet Mai, Kwon Jung, Gar old Lantz, and Sandra G. Loeb

cisi?n making (Rook 1987; Rook and Hoch 1985), (2) hedonic complexity and more emotion than rational (Bayley and Nan carrow 1998; Rook 1987; Rook and Hoch 1985), and (3) non inclusion of purchases that are simple reminder items that fulfill a planned task, such as a gift for someone (Beatty and Ferrell 1998). Cultural Orientation (Individualism and Collectivism) and Impulse Buying The individualism-collectivism dimension is arguably one of the most important cultural factors pertaining to the issue of impulse buying (Hofstede 1980; Triandis et al. 1988). Key individualist concepts include independence, self-orienta tion, idiocentricism, freedom, and self-confidence, whereas key collectivist concepts pertain to interdependence, other orientation, allocentrism, harmony, and conformity (Hui 1984; Triandis et al. 1988). According to Triandis (1994, p. 42), "all of us carry both individualist and collectivist ten dencies; the difference is that in some cultures the probabil ity that individualist selves, attitudes, norms, values, and behaviors will be sampled or used is higher than in others." In line with this reasoning, Singelis (1994) argues that two as pects of self, independent self and interdependent self, can and do coexist in individuals. According to Lee and Kacen (2000), the theory of individual ism-collectivism offers insights into many variables that are linked to impulsive purchasing and is well suited to the study of impulse buying behavior. Individualists tend to make decisions independently of others (Roth 1995) and therefore have more freedom and should be less constrained when exposed to impulse buying stimuli. It should be easier for individualists to open their shopping lists and accept new buying ideas without considering others' influence much. In addition, individualists are more likely to make a purchase decision quickly when they experience an urge to buy, be cause they place their personal goals, motivations, and de sires over those of in-group members (Kagitcibasi 1997). In contrast, collectivists consider themselves members of a community, emphasize the opinions of others or group norms, and care more about the needs and desires of others. Accordingly, when exposed to impulse buying stimuli, col lectivists should be more likely to experience some feelings of constraint; in other words, there are more things for them to consider before buying. These feelings of constraint may block collectivists' ability to experience spontaneous buying. Consequently, the purchase decision-making process may be slowed and impulse buying actions less likely. Because it is an Asian country, we expect Vietnam to be char acterized strongly by collectivism. It has been suggested that with the movement from command economy to market econ omy in transitional economies, a salient (psychological) characteristic is "the move away from collectivist forms of Impulse Buying in a Transitional Economy 17

societal organization and mentality toward individualist forms" (Reykowski 1994, p. 276). In Vietnam, the movement toward a market-driven economy has created many changes in social values. The collectivist political values that domi nated the past still exist along with modern social values, such as accepting wealth, individualism, and flexibility (Hoang 1999). In terms of consumption patterns, it also has been suggested that the trend toward a consumer culture "tends to be apposition to many of the values, attitudes, and behaviors associated with traditional Vietnamese culture" (Shultz, Pecotich, and Le 1994, p. 248). Therefore, we expect that individualism and collectivism coexist in Vietnamese consumers (with varying levels of each) and that individual ism and collectivism are measured as two separate dimen sions that are predicted to have significant impact on impulse buying behavior (in opposite directions). On the ba sis of our discussion, we present the following hypotheses: Hi'. Individualist orientation is positively related to im pulse buying behaviors of Vietnamese consumers. H2: Collectivist orientation is negatively related to im pulse buying behaviors of Vietnamese consumers. Geographie and Demographic Characteristics and Impulse Buying Regional Differences. The literature suggests differences between consumers from northern Vietnam (mainly Hanoi) and con sumers from southern Vietnam (Ho Chi Minh City) regarding their consumption patterns (e.g., Shultz and Pecotich 1994). People in Hanoi are considered more traditional and are be lieved to save money, whereas people in Ho Chi Minh City are considered more modern and are believed to "just spend money all the time" (Shultz, Pecotich, and Le 1994, p. 245). In addition, because of a longtime association with the centrally planned economy, people in the north are expected to hold more traditional values, including a collectivist nature, than are those in the south, whereas people in the south may show a more individualist nature than those in the north. Because we predict individualism to relate positively to impulse buy ing and collectivism to relate negatively to impulse buying, we expect that people in the south are more likely to engage in im pulse buying than are those in the north. Thus, we propose the following hypothesis: H3: Consumers in the south region of Vietnam (i.e., Ho Chi Minh City) engage in more impulse buying be haviors than do those in the north region (i.e., Hanoi). Gender. Gender has received some attention in prior research as a factor that may affect impulse purchases. Several studies have examined whether men or women are more impulsive shoppers (e.g., Cobb and Hoyer 1986; Kollat and Willett 18 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

1967); however, research findings are inconsistent. Kollat and Willett (1967) find that women tend to buy on impulse more than men do (the results were insignificant in another study by Bellenger, Robertson, and Hirschman [1978]). Cobb and Hoyer (1986) find the opposite: Women are more likely to exhibit some element of planning before entering the store, whereas men are more likely to be impulse shoppers. In Vietnam, women traditionally are responsible for house work, including daily shopping for meals, but men seldom shop for meals and generally seem not to have the habit and/or hobby of shopping. As a result of Doi Moif consumers have more and varied purchase decisions. However, men tend to be in charge of buying big-ticket items, and women still tend to shop for food and small items. The findings from a recent survey about emerging consumers in urban Vietnam show that up to 70% of a family's shopping decisions are made by women (Lan Anh 2001). In addition, shopping has become a habit and even a hobby for many women. Cur rently, for Vietnamese consumers, it is expected that impulse buying is more likely to occur with small, low-value items than with high-value items. Accordingly, compared with men, women tend to have more chances to be exposed to im pulse stimuli and are more likely to engage in impulse buy ing. Therefore, we hypothesize the following: H4: Female Vietnamese consumers engage in more im pulse buying behaviors than do male Vietnamese consumers. Age and Income. It is suggested in the literature that younger people have more impulsivity compared with older people (e.g., Rawlings, Boldero, and Wiseman 1995). With regard to buying behavior, it is expected that younger consumers are more likely to experience an urge to buy things sponta neously when exposed to the relevant objects and to act on the urge, whereas older consumers may demonstrate better ability to control their buying impulses. Accordingly, we ex pect that older people are more likely to be calm when cop ing with the prospect of an impulsive purchase and thus are less likely to engage in impulse buying. In Vietnam, younger people have had less exposure than older people to a centrally planned economy and are less likely influenced by traditional values and behaviors, such as leading a simple and thrifty life (e.g., Hoang 1999) and shop ping at traditional markets (Shultz, Pecotich, and Le 1994). Conversely, young people are more likely to be pioneers in adopting new lifestyles, buying new and fashionable prod ucts, and enjoying shopping in new types of markets that could trigger impulse buying. Therefore, we present the fol lowing hypothesis: Impulse Buying in a Transitional Economy

H5: Age is negatively related to impulse buying behav iors of Vietnamese consumers. In a study by Abratt and Goodey (1990), higher income is sug gested as one of several factors that can account for the higher level of impulse buying in the United States compared with other countries. A study by Mogelonsky (1994) logically sug gests that impulse buying is reserved for those consumers who can afford it. Furthermore, we expect those consumers with higher income to have less constraint in acting on their im pulses; they could have a more "open" shopping list that allows them to receive sudden and unexpected buying ideas with less difficulty in payment. Thus, they may be able to buy on impulse more frequently than can others. For people with lower in comes, an impulse buying tendency may be more likely inter rupted by the so-called income block, which may lead to less impulse buying. In Vietnam, Doi Moi has brought opportunities to increase income and living standards for most people, espe cially in urban areas. Therefore, an increasing number of con sumers are able to afford impulse buying. On the basis of the preceding discussion, we hypothesize the following: H6: Income is positively related to impulse buying be haviors of Vietnamese consumers. Product Type and Impulse Buying Early studies on impulse buying have emphasized the taxo nomical approach, classifying products into impulse and nonimpulse categories. This approach has drawn much criti cism in the literature because of its lack of diagnostic nature (Dittmar, Beattie, and Friese 1995; Rook 1987; Rook and Hoch 1985). Rook (1987, p. 191) notes that though a taxo nomical approach can be useful, "it tends to divert attention from the internal motivation and its expression that are cru cial to the impulsive purchase." The study by Dittmar, Beattie, and Friese (1995, p. 493) points out that most early research on impulse buying is only at a taxonomic level and does "not explain why, nor predict beyond the particular goods studied." The study then inves tigates types of products that tend to be purchased impul sively and the underlying reasons for the behavior. The authors argue on the basis of social constructionist theory that products are impulsively bought to reflect self-identity. These products are more likely to be items that symbolize the preferred or ideal self and, as such, should be influenced by social categories such as gender. The authors, nevertheless, note that they give only a preliminary test of the model and suggest further investigation into the role of identity. Lee and Kacen (2000) also point out that it is necessary to ex amine types of products that would enable an individual to express personal or group identity and that product cate 20 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

gories aie likely to be affected by cultural factors. They refer to the terms "shared products" and "personal products," which Han and Shavitt (1994) also examine. Shared products are defined as ones for which the decision-making process involved in purchase and the pattern of product usage are likely to include family members or friends, whereas per sonal products are ones for which the purchase decision and product usage are usually done by an individual. On the basis of the preceding discussion, we recognize the po tential impact of product types that are associated with self identity. However, we believe that modifying the concepts developed by Han and Shavitt (1994) may be necessary to fit into the impulse buying context and to meet our interest in examining the impact of the product types that are associated with personal and group identity in the Vietnamese context. Consequently, we provide two modified concepts of product types: personal-use products and collective-use products. Personal-use products are ones for which products are usu ally used by an individual, such as fashion apparel, cosmet ics, or personal care products, and collective-use products are ones for which the pattern of product usage is likely to in clude family members or friends, such as groceries and gifts for friends or relatives. In psychoanalytic psychology literature, Freud (1956) inter prets impulses as the consequences of two competing forces: the pleasure principle and the reality principle. The pleasure principle encourages immediate gratification, whereas the re ality principle encourages delayed gratification. These two forces often compete, and "impulses may be difficult to resist because they often involve anticipated pleasurable experi ences" (Rook 1987, p. 190). Hoch and Loewenstein (1991) suggest that close temporal proximity of the stimulus is a product condition that seems conducive to triggering a buying impulse. It is stated that the more immediate a reward, the greater is its reinforcing value (Chung and Herrnstein 1967). Therefore, the immedi ate availability of a reward tends to increase both the desire for it and the consumer's impatience. Accordingly, we as sume that when consumers are exposed to personal-use products, they are more likely to experience the time inconsistent preference induced by close temporal proxim ity of the stimulus than they are with collective-use prod ucts. In other words, the pleasure principle may be more salient than the reality principle, and the impulses may be more powerful and persistent because pleasurable experi ences and gratification are anticipated (by consumers themselves) and immediate (no need to wait until knowing the others' gratification). Impulse Buying in a Transitional Economy

In terms of the decision-making process, it seems there are fewer constraints impeding the decision-making process for personal-use products when consumers experience a sudden urge to buy them. In contrast, consumers may need to consider whether their purchases benefit or satisfy others when decid ing to buy collective-use products. In addition, consumers de ciding to buy collective-use products are more likely to experience some "interrupts" and therefore are more likely to maintain their self-control. As a result, an impulse purchase of collective-use products might be less likely to occur. Furthermore, purchases of collective-use products frequently could be a result of shopping for the family, when items are bought for family or household use. Shoppers tend to con sider this task irksome and repetitive (Bayley and Nancarrow 1998). Although collective-use products, such as necessary household items, can be "the source of meaning, benefit, of a burst of adrenalin, of shopping buzz" (Bayley and Nancarrow 1998, p. 11), they are less likely than many personal-use products to stimulate the strong interest of the consumer. In accordance with our discussion, we expect that impulse buy ing is more likely to occur with personal-use products than with collective-use products, even for consumers in a collectivist cul ture such as Vietnam. Therefore, we hypothesize the following: H7: Personal-use products are more likely to be bought on impulse than are collective-use products. Methodology To explore impulse buying behaviors of Vietnamese con sumers, we used both qualitative and quantitative methods. We first conducted focus group interviews to develop a gen eral understanding of impulse buying behaviors of Vietnamese consumers. We identified personal-use and collective-use product categories during the qualitative study. Next, we con ducted a survey to test the hypotheses. Qualitative Study We conducted focus group and personal interviews with two objectives. The first objective was to obtain a general under standing of impulse buying behaviors of Vietnamese con sumers before conducting the survey. We report general findings in the "Results" section. Second, we conducted the qualitative portion to identify the personal-use and collec tive-use product categories used in the survey. Selection of Personal-Use Products Versus Collective-Use Products. First, we conducted a small number of personal interviews (20 subjects) in which the subjects were provided a brief de scription of impulse buying and then asked to list from 5 to 10 items they often bought on impulse. Second, we con ducted a focus group of nine participants, who first were con firmed to have a common perception of impulse buying. We 22 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

asked these participants about items they often bought on im pulse. We added these items to the list, which resulted in a fi nal list of 19 items. The group went through each item and discussed its likelihood to be an impulse item and the main purpose of buying it (who would use it). The result of the dis cussion was a short list of consumer goods that were more likely to be bought impulsively for either personal use or col lective use. Finally, we selected 4 items to represent the two product categories. Clothing and shoes were chosen as the personal-use products; souvenirs and small gifts as well as books for children were selected as the collective-use prod ucts. Although some items perhaps could be classified as personal-use in some situations and collective-use in others, we believe that the selected items adequately capture basic differences between the two categories. Survey Sample. We drew a sample of 358 subjects from two major cities of Vietnam: 208 from Hanoi and 150 from Ho Chi Minh City. Hanoi, the capital, is located in the northern part of Vietnam, and Ho Chi Minh City, the largest city in Vietnam, is located in the southern part of Vietnam. We selected these locations to ensure the essential conditions for the occur rence of impulse buying (i.e., major urban cities) and to high light regional differences. In our sample, women account for 65.5% of subjects and men account for 34.5%; married subjects account for 44% of subjects and unmarried for 56%. The sample covers a range of ages from 16 to 60; the average age is 28.7 (78% are be tween 23 and 40 years of age). Subjects' monthly income ranges from less than VND 500,000 (US$33.3) to more than VND 5 million (US$333), and nearly 40% have monthly in come greater than VND 1.5 million (US$100). Measures. We adopted and modified the individualism and col lectivism scale from Lee and Brislin (1998). The scale measures individualism and collectivism at a personal level and treats in dividualism and collectivism as two separate dimensions (see the Appendix). Because we believe that individualist and col lectivist natures could strongly coexist among consumers in a transitional economy, the scale is appropriate for our study. We measured each aspect of the cultural orientation by eight items on a seven-point scale (1 = "strongly disagree"; 7 = "strongly agree") ( = .69 for individualism; = .76 for collectivism). We measured both attitudinal and behavioral aspects of im pulse buying in this study: impulse buying tendency and im pulse buying frequency. The impulse buying tendency scale measures attitudinal aspects of impulse buying and is adopted and modified from Rook and Fisher (1995). We used seven items on a five-point Likert scale (1 = "strongly dis agree"; 5 = "strongly agree") ( = .86). Impulse Buying in a Transitional Economy 23

We measured the behavioral aspect of impulse buying by asking the frequency of impulse buying. One item measuring impulse buying frequency ("How often do you buy things on impulse?") was adopted from Kacen and Lee (2002). We measured this item on a seven-point scale (instead of a four-point scale), where 1 represents "very rarely" and 7 represents "very often." We measured the age of the respondents by asking the year that they were born, and we calculated actual ages of the re spondents from this. We measured monthly income using five categories of income levels. Questionnaire Development. We first developed all scales and questions in English and then translated them into Viet namese. Two Vietnamese experts in English checked the translations. We pretested the questionnaire on a small con venience sample (more than 50 students) and made neces sary changes for the purpose of accuracy and understanding. The questionnaire first posed a series of questions to capture respondents' cultural orientation, impulse buying tendency, and impulse buying behavior. The next set of questions asked about their impulse buying behaviors for specific product categories representing personal-use and collective-use prod ucts. Finally, respondents provided demographic informa tion such as age, gender, and income. Results General Findings from Focus Group and Personal Interviews Types of Impulsive Products. In addition to the findings related to the hypothesized relationships, qualitative and survey data provide suggestions on the impulse buying behavior of urban Vietnamese consumers. The list of high-impulse items provided by the respondents in personal interviews and in the focus group suggests that these goods are identity-rele vant items rather than purely functional items and are more likely to have potential for self-presentation, self-expression, mood adjustment, and entertainment. This point is consis tent with findings from the study by Dittmar, Beattie, and Friese (1995). In addition, the top impulsive items are clothes and shoes, similar to those in prior studies by Shamdasani and Rook (1989) and Dittmar, Beattie, and Friese (1995). Moreover, in line with Stern (1962), impulsive items are more likely relatively inexpensive. There was a strong agree ment in the focus group discussion on the "price threshold" for an impulsive purchase: It could be a wide range for vari ous products, but in general it was less than US$15 per item. We discuss this issue subsequently. Motivations of Impulse Buying. The findings from our qualitative research (focus group and personal interviews) show that im pulse purchases are more likely to happen with personal-use products than with collective-use products. The findings 24 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

also provide some insight into consumers' motivations re garding impulse buying in the specific context of Vietnam's transitional economy. The findings suggest that consumers may encounter more barriers in making a quick buying decision when they expe rience an urge to buy collective-use products rather than personal-use products. Although many consumers care much about their relatives and friends and experience a strong desire to buy things for others, when exposed to the relevant objects, their urge to buy may "cool down" because they are not sure about the others' satisfaction and/or be cause of some "bad" experiences in buying things impul sively for others. Whenever I see something that may fit my son [the only son] I often want to buy for him immediately. However, he is 15 this year, and it is not as easy to buy for him as when he was small. Yesterday, I intended to buy a nice jacket for him when I saw it but then I gave up my idea. I was not sure if he likes that material and the style. I think it would be better for him to choose for himself what he likes, (female, 44) I do not think that I will buy anything for my mom with out checking with her. Once in a shop, a nice shirt caught my eyes from the first second when I saw it. I was confident that my mom would love the color and the style. However, the shirt was not welcome by her when I brought it home because she had changed her taste in terms of color. She did not wear that shirt al though she wanted to please me. (female, 27) In addition, the qualitative findings suggest that the lack of product availability in the past (poor quantity and quality) makes people's desire for products instant and compelling when they confront the current variety of choices, like "a drought meeting a rainstorm." Therefore, it is easy for con sumers to have an urge to buy for themselves when exposed to something relevant. Furthermore, as more product cate gories and brands become available in the market, consumers become more demanding in satisfying their needs and wants. They may be disappointed if they are given something that does not match their needs and wants, such as a "gift" result ing from impulse buying. This could be a barrier to impul sively buying collective-use products. Shopping Enjoyment and Impulse Buying. Our personal inter views have some parallels to findings from semistructured interviews by Hausman (2000): Consumers use shopping not just to buy products but also to satisfy needs such as having fun and seeking novelty. Because of the newly developed Impulse Buying in a Transitional Economy

shopping system in Vietnam, this is mainly true of urban consumers shopping in new forms of markets, such as su permarkets, in which they can find a wide range of products with attractive displays and a good shopping environment. As expressed by the consumer opinions that follow, it seems that many people with newly gained wealth, though they enjoy new shopping environments, are still "con scious" and able to control emotions when experiencing the urge to buy impulsively. Before [the transition] it was a really difficult time and not fun at all for me to go shopping. Now, whenever I can arrange some free time [I am so busy] I often go to In timex or Five-Mart [supermarkets in Hanoi] with my husband and my son. I think I can achieve multi-objec tives. It is a good chance for myself to learn many new and interesting things in a nice place. I also like to com pare the prices there with those in the wet markets. At the same time, we can have relaxed time together. My son can enjoy some games there, and I may buy some thing if I really like, (female, 35) Shopping is not my favorite habit, but I often go shop ping [in supermarkets] with my wife because she wants to. I know it is often more expensive to buy things there but it is a nice place to go and see. (newly married male, 27) It is really a nice place to visit [the supermarket]. The at mosphere is much nicer than outside markets. We have "freedom" to examine products for a long time and do not need to buy without being bothered by the sellers.... The fixed prices are good because then I can go out to buy similar ones bargaining at lower prices. Money should be spent wisely, (female, 38) These opinions suggest that for Vietnamese consumers, shop ping enjoyment may have a significant impact on impulse buying, but the impact magnitude may still be modest and the maxim "shop often, buy little" may reflect the shopping pattern of many consumers (McDonald, Darbyshire, and Jevons 2000). Hypotheses Testing Cultural Orientation, Region, Demographics, and Impulse Buying. Ha through H6 predict the influence of cultural orientation, region, and consumer demographics on impulse buying. We used multiple regression analyses to test these hypotheses. Because impulse buying was measured in two aspects, we performed multiple regression analysis on each of the two variables (i.e., Model 1 on impulse buying tendency and Model 2 on impulse buying frequency). The results are sum marized in Table 1. 26 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

Individualism related positively to impulse buying. Its relation ship was significant with both impulse buying tendency [p < .05) and impulse buying frequency [p < .01), which provides supporting evidence for Ha. Collectivism related negatively to impulse buying, as we expected. However, its significance failed to reach the conventional level of significance. The regional difference did not significantly relate to im pulse buying in either model, thus H3 was not supported. Gender showed a significant relationship to the impulse buy ing tendency. However, the relationship was the opposite of our prediction, and therefore H4 was not supported. We pro vide possible explanations for this subsequently. As predicted, we found a significant negative relationship between age and impulse buying in both models, in support of H5. A significant income effect was found in both models. Table 1. Results of Regression Analysis Dependent Variables Independent Variables Model 1 (dependent variable = impulsi buying tendency) Coefficients t-Value Significance* Model 2 (dependent variable = impulse buying frequency) Coefficients t-Value Significance* Ha: Individualism (+) H2: Collectivism (-) H3: Region Hanoi* Ho Chi Minh City (+) H4: Gender Male* Female (+) H5: Age (-) H6: Income (VND)* <500,000 500,000-999,000 (+) 1,000,000-1,499,000 (+) 1,500,000-1,999,000 (+) >2,000,000 (+) Intercept .069 1.706 p<.05 -.069 -1.483 p < .10 -.018 -.208 n.s. -.172 -2.068 p<.01 -.015 -2.712 p<.01 .188 1.526 p<.10 .232 1.779 p<.05 .368 2.084 p < .05 .086 .640 n.s. 2.998 7.984 .000 F = 2.546 p<.01 R2=.062 .159 2.622 p<.01

-.100 -1.427 p<.10 -.048 -.380 n.s. -.011 -.089 n.s. -.021 -2.620 p < .01 .221 1.203 n.s. .411 2.105 p<.05 .449 1.704 p < .05 .188 .938 n.s. 3.985 7.106 .000 F = 2.713 p<.01 R2=.066 * Reference category for dummy variables. **One-tail test results. Notes: Signs in parentheses represent hypothesized relationships; n.s = not sign ificant. Impulse Buying in a Transitional Economy 27

Impulse buying was found to be significantly higher in in come groups between VND 1,000,000 and VND 1,999,999 than in the lowest income group. However, the highest in come group's impulse buying was not significantly different from that of the lowest income group, which suggests a pos sibility of a nonlinear relationship between income level and impulse buying. Therefore, H6, which predicts a linear posi tive relationship between income level and impulse buying, was not fully supported. Product Types and Impulse Buying. To test H7, we calculated means of impulse buying frequencies for each product cate gory and then compared them. In line with our expectation, personal-use products are more frequently bought on im pulse than are collective-use products, and the difference is statistically significant at p < .05 (mean 3.71 versus 3.50, re spectively; degrees of freedom = 357), thereby providing em pirical support to H7. Discussion In this study, we investigated impulse buying behaviors of ur ban Vietnamese consumers. Although almost any product can be bought on impulse (Rook 1987; Rook and Hoch 1985), our qualitative investigation found that for urban Vietnamese con sumers, impulse purchases tend to be small, relatively inex pensive items, such as clothing, items for use in the home, music items, and gifts. The price threshold provided in the group discussion can be explained by such reasons as a low standard of living in Vietnam and a traditional habit of saving and planning that were dominant before the Doi Moi transition. We also examined the impact of cultural orientations and some geographic and demographic variables on impulse buy ing behavior of urban Vietnamese consumers, as well as con sumers' susceptibility to two product categories, personal-use products and collective-use products, in terms of the behav ior. Most of the hypotheses were supported by the data, which highlight some similarities and uniqueness in con sumer behavior patterns observed in more developed economies. Specifically, we found that individualist orienta tion was positively related to impulse buying. However, we did not find the negative relationship between collectivist orientation and impulse buying to be significant. This sug gests that the economic transition in Vietnam has influenced consumers' values, attitudes, and consumption behaviors, which in turn has led to the coexistence of collectivism and individualism in individuals, the latter of which seems to be increasing and significantly affecting impulse buying. We also found that young and affluent consumers were more likely to engage in impulse buying. In transitional economies such as Vietnam, this group of consumers is believed to have benefited most from economic reform. In addition, we found that personal-use products were more frequently bought on 28 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

impulse than were collective-use products. Taken together, these findings suggest that despite cultural differences, when transitional economies achieve a certain level of develop ment, consumers from transitional economies such as Viet nam might have some tendencies and behaviors similar to those of consumers in more advanced economies, at least with respect to impulse buying. Although there was general support for most of the hypothe ses, those regarding gender and regional differences were not supported. Although gender was not materialized in the be havioral measure (i.e., impulse buying frequency measure), men exhibited a higher impulse buying tendency than did women. A partial explanation is that though Vietnamese women generally shop more frequently and seem to enjoy shopping more than men do, they may be influenced by past conditions and values. Before, though women shopped daily, they needed to plan all expenses carefully so that their fami lies' modest incomes could be spent "wisely." It used to be that if women bought things that were not of benefit to their husbands and/or children, people would spread bad rumors. Consequently, planning purchases was a sign of a "good" woman, a sentiment that may still be held by many women. In contrast, it is believed that men often do not enjoy shop ping much, particularly when it comes to bargaining, a com mon practice in Vietnam. If they see something they like, they may be more inclined to buy it quickly, whereas women are "more patient about looking at things, evaluating their merits, anticipating an upcoming need" (male, 30). The research findings show no significant differences in im pulse buying between Hanoi and Ho Chi Minh City. This may be explained by decreasing cultural differences over time be tween them due to the integration in many fields of the coun try, mobility, and modern outside influences on consumers in both cities. Another possible explanation refers to the sam ple limitation including "nonoriginal southerners" in Ho Chi Minh City. A larger and more representative sample covering more cities may be needed to test this point. Although we found significant relationships between im pulse buying and cultural orientation and demographic vari ables from regression analysis, the regression models produced low R2 values. The low R2 values could be attribut able to the following factors: First, by nature, the influence of demographic and cultural variables on consumer behaviors is rather indirect. Many prior studies on impulse buying be haviors have examined such factors as individual differences (e.g., shopping enjoyment) and situational variables (e.g., mood state) in a specific shopping context. These factors could have a more direct or stronger effect on impulse buy ing. In our study, however, we focused on cultural and demo Impulse Buying in a Transitional Economy

graphie variables whose influence on impulse buying could be more indirect; therefore, we could expect to obtain low R2 values. Second, the impulse buying measures used in our study were general measures of impulse buying; that is, they were measured without specific product and shopping trip framing. This lack of product and shopping trip specificity could be another reason for low R2 values. Suggestions for Further Research To achieve a better understanding of an important buying be havior, impulse buying in transitional economies, and specifi cally in Vietnam, this research could be extended in several respects. First, although we found no regional difference in this study, a study using a larger, more representative sample in cluding cities other than Hanoi and Ho Chi Minh City, such as Danang and Hue, would be useful to further verify the regional differences in impulse buying behaviors of urban consumers in Vietnam. Second, considering the widening gap between urban and rural areas in Vietnam, it would also be useful to examine the difference in impulse buying behavior between urban and rural areas. When the conditions for impulse buying behaviors are improved in rural areas (e.g., certain level of income, shop ping infrastructure), it would be meaningful to examine the im pulse buying behavior between these markets. In addition, further research may need to examine the impact of situational factors, including physical and social factors, on impulse buy ing, especially in the specific context of transitional economies. Further research also may need to be conducted in a cross-cul tural context, using different countries representing different cultures and levels of economic development. It would also be wothwhile to compare impulse buying behavior among con sumers in different transitional economies. Impulse buying is a pervasive behavior and an important as pect of consumer behavior. Our research has achieved a cer tain success in examining this behavior and factors influencing it in the context of urban Vietnam. The findings may be important from a theoretical perspective, because they contribute to a better understanding of impulse buying behav ior from the new context of a transitional economy. Our re search also suggests some managerial implications regarding promotion of impulse buying through increased physical and temporal proximity (Hoch and Loewenstein 1991). For exam ple, retailers could use basic methods such as creating an at tractive shopping environment to get more attention and visits from shoppers and enhancing salespeople's roles in pro viding shoppers with immediate, anticipated gratification through their "courtesy," "respect," "helpfulness," and "charm" (see Hausman 2000; Shamdasani and Rook 1989). We believe it is crucial to both theory and practice to receive more research investigating consumer behavior in general and impulse buying in particular in the context of transitional economies that have, to date, attracted only modest attention. 30 Nguyen Thi Tuyet Mai, Kwon Jung, Garold Lantz, and Sandra G. Loeb

Appendix. Items Measuring Impulse Buying Tendency (adopted from Rook and Fisher's [1995] buying impulsiveness scale) 1.1 often buy things spontaneously. 2. "Just do it" describes the way I buy things. 3.1 often buy things without thinking. 4. "I see it, I buy it" describes me. 5. "Buy now, think about it later" describes me. 6.1 buy things according to how I feel at the moment. 7.1 carefully plan most of my purchases. Items Measuring Impulse Buying Frequency (modified from Kacen and Lee [2002]) 1. How often do you buy things on impulse? Items Measuring Individualism and Collectivism (adopted and modified from Lee and Brislin's [1998] IC-dimension scale) Individualist Items 1. When I am not happy with my family, I stay away from them. 2. When members of a family are not happy with one another, they should stay away from each other. 3.1 behave consistently with my own personal attitudes, even though my family group may not agree with me. 4. Members of a family should behave in a manner consistent with their own personal attitudes, even though others in the family may not agree with them. 6. Members of a family should not have to rely on others in the family. 7.1 pursue goals that are important to my own personal achievement, independent of the goals that my family may have. 8. Members of a family should pursue goals that are important to their own personal achievement, regardless of family goals. Collectivist Items 1.1 will stick with my family if they need me, even when I am not happy with them. 2. Members of a family should stick together, even when they are not happy with each other. 3.1 behave in a manner consistent with the way my family group expects me to, even though I may not personally agree with their expectations. 4. Members of a family should behave in a manner consistent with the way others in the family expect them to, even though they may not personally agree. 5.1 strive to make an important contribution to my family. 6. Members of a family should try to make an important contribution to the family. 7.1 pursue goals that are important to my family group, even though these goals may not be consistent with my own personal desire for achievement. 8. Members of a family should pursue goals that are important to the whole family, even though these goals may not be consistent with their own personal desire for achievement. Impulse Buying in a Transitional Economy 31

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