A Study on Effect of Peer Pressure on Millennial Impulsive Fashion Buying Behavior in Sri Lanka

Abstract

Peer pressure is a form of influence and persuasion which is a vital aspect in marketing strategies. Researchers agree that the concept of impulse buying behavior should not be limited to unplanned purchase, but it should also address the effect of exposure to the stimulus and consequently making the decisions on- the-spot. This could be due to internal or external stimulus. The prior reaches on impulsive buying due to external stimulus of peer groups is very less. Therefore, this research contributes to the limited literature on this context in both local and international context. Literature revealed four important factors of peer pressure that creates urge to buy on impulse. Sense of belongingness need for individualization, subjective norms and informational influence are those factors to be named. Theoretical frameworks such as Theory of planned behavior (TPB), Theory of Fundamental Interpersonal Relations Orientation (FIRO), stimulus-organism-response (S-O-R) framework and Hawkins Stern’s impulsive buying theory were used to determine the relationship between these factors and impulsive buying. According to Saunders’s research onion, this research carries a positivism philosophy because its highly structured and uses empirical methods and involves existing theories to develop hypothesis. The deductive approach was used to develop the hypothesis using the conceptual framework and all the hypothesis were proven positive in the data analysis using SPSS software. This research used a mixed method research choice with 225 responses to the questionnaire supported by some qualitative arguments. The data analysis depicted that informational influence is the most powerful factor of peer pressure and Sri Lankan millennials who are more collectivistic in behavior same as other Asians, value offline word-of-mouth the most. This shows that closer friends circle is trusted the most. Booming online transactions and social media culture further support online informational influence through online reviews, surprising discoveries and artificial scarcity can be utilized creatively to attract consumers through peer influence. Further there is a significant difference between male and female on impulsive buying due to peer pressure and its comparatively high among females. Hence retailers can use the research findings to design their new yet very

powerful marketing strategy through peer-to-peer marketing where trust and authenticity is valued above all by Sri Lankan millennials.