8 CHAPTER II LITERATURE REVIEW 2.1 Impulse Buying Impulse buying is a significant phenomenon that contributes substantially to business revenue. It refers to the overwhelming urge a buyer feels to make a purchase immediately. This behavior, driven by a hedonic impulse, often results in emotional conflict (Rook, 1987). Stern (1962) categorizes impulse buying into four types: Planned Impulse Buying (Shoppers with a flexible mindset make additional purchases due to sales, discounts, or deals, beyond their intended list), Reminder Impulse Buying (seeing a product reminds buyers of a need they had forgotten), Suggestion Impulse Buying (discovering a new product creates an immediate perceived need), Pure Impulse Buying (spontaneous purchases driven by excitement or enjoyment, without prior intention or need). Recent studies further elaborate on the elements that drive impulse buying. Sari (2014) highlights key factors such as a positive mood, the hedonic value of shopping, the influence of peer groups, and sensitivity to price. Additionally, the response to the retail environment, including store layout, ambiance, and visual merchandising, plays a crucial role in unplanned buying decisions. The retail context, especially in-store stimuli and external triggers is critical to understanding impulse buying behavior. Beatty and Ferrell (1998) stated that the process of making an impulse purchase is greatly influenced by a number of factors, including individual differences such as shopping enjoyment and impulse buying inclination, as well as environmental factors such as the amount of time and money available for shopping. 2.2 Sales Promotion Sales promotions impact shoppers by either making products more valuable through price reductions or by adding extra benefits to the standard purchase. For a promotion to be effective, it must offer something beyond the primary product or 9 service. Manufacturers and retailers commonly use sales promotions to market their products, as outlined by Nakarmi (2018), who notes that manufacturers use trade promotions to increase sales to retailers and consumer promotions to entice final buyers. Retailers utilize sales promotions to launch new products or to promote existing ones, aiming to increase short-term demand, build customer loyalty, and encourage brand switching. Temporary price reductions, enhanced features, and appealing displays are some strategies retailers employ to attract customers and boost sales. Sales promotions are categorized into price-based and non-price-based techniques, according to Nakarmi (2018). Price-based promotions, such as discounts, rebates, coupons, and promotional packs, temporarily lower the cost of goods, while non- price-based promotions, including contests, freebies, samplings, exchange offers, and loyalty points, add value to the product. These techniques can prompt consumers to make impulsive purchases. 2.3 Store Environment Retailers create store environments to boost customer feelings, increase purchase willingness, and extend shopping duration. Consumer purchasing experiences are significantly enhanced by the store environment (Xu, 2007). Shiekh (2023) identified several sub-construct of store environment that influence impulsive buying behavior.