Buy Now Pay Later Mechanism Trigger Impulsive Purchase Behaviour among Malaysian Millennials Generation
Abstract
The Buy Now Pay Later (BNPL) mechanism has emerged as a major force in the digital payments landscape, transforming consumers’ online transactions worldwide. With the rise of online shopping and the emergence of e-commerce, consumer purchase behaviour has shifted from rational to impulsive purchases. In addition, more and more online retailers and platforms are partnering with payment solution providers to offer their customers a simple and seamless payment experience. However, there are concerns about the potential negative effects of the user-friendly BNPL system, especially in terms of impulsive purchasing behaviour. This study focuses on Malaysian Millennials’ impulsive purchase behaviour using the BNPL system. It proposed a research model based on the Stimulus Organism Response (S-O-R) framework to investigate consumer response and behaviour.
References
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Liu, Y., Li, H. X. & Hu, F. (2013). Website attributes in urging online impulse purchase: An empirical investigation on consumer perceptions. Decision Support Systems, 55 (3): 829–837.
Mehrabian, A., & Russell, J. A. (1974). The Basic Emotional Impact of Environments. Perceptual and Motor Skills, 38(1), 283-301. https://doi.org/10.2466/pms.1974.38.1.283
Mitchell, S. & Qadar, S. (2019). Afterpay, PayPal and Zip Pay: The shopping tech making us buy more. Retrieved June 20, 2020, from https://www.abc.net.au/life/afterpay-paypaland-zip-pay-making-us-buy-more/11604216
Nan, D., Kim, J. H., & Kim, Y. (2020). What motivates users to keep using social mobile payments? Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176878
Park, E. J., Kim, E. Y., Funches, V. M., Foxx, W. (2012). Apparel product attributes, web browsing, and e-impulse buying on shopping websites. Journal of Business Research, Vol. 65 No. 11, pp. 1583 – 1589.
Rouibah, K., Al-Qirim, N. & Hwang, Y. J. (2021). The determinants of eWoM in social commerce: The role of perceived value, perceived enjoyment, trust, risks, and satisfaction. Journal of Global Information Management 29(3), 75-102.
Sihombing, E. S., Budi, I. & Munajat, Q. (2020). Factors affecting the urge of impulsive buying on social commerce Instagram. International Journal of Internet Marketing and Advertising 14(3), 236-257.
Wieseke, J., Kolberg, A. & Schons, L. M. (2016). Life could be so easy: the convenience effect of round price endings. Journal of the Academy of Marketing Science, Vol. 44 No. 4, pp. 474-494.
Xiang, L., Zheng, S., Lee, M. K. & Zhao, S. J. (2016). Exploring consumers’ impulse buying behaviour on social commerce platform: The role of parasocial interaction. International Journal of Information Management, 36, 333-347.
Zhang, Y., Winterich, K. P., & Mittal, V. (2010). Power distance belief and impulsive buying. Journal of Marketing Research, Vol. 47 No. 5, pp. 945-954.
Zheng, X. B., Men, J. Q., Yang, F., & Gong, X. Y. (2019). Understanding impulse buying in mobile commerce: An investigation into hedonic and utilitarian browsing. International Journal of Information Management, 48, 151–160.
Zhou, R. & Feng, C. (2017). Difference between leisure and work contexts: The roles of perceived enjoyment and perceived usefulness in predicting mobile video calling use acceptance. Frontiers in Psychology.
Zhu, D. H., Wang, Y. W. & Chang, Y. P. (2018). The influence of online cross-recommendation on consumers’ instant cross-buying intention: The moderating role of decision-making difficulty. Internet Res, 28.
Alcazar, J., & Bradford, T. (2021). The Appeal and Proliferation of Buy Now, Pay Later: Consumer and Merchant Perspectives. Payments System Research Briefing, (November 10, 2021), 1-7. Available at: https://www.kansascityfed.org/Payments%20Systems%20Research%20Briefings/docume nts/8504/psrb21alcazarbradford1110.pdf
Bharadwaj, S. (2022). Weight-related teasing as a source of consumer motivation for impulsive purchase intention of weight loss dietary supplements: insights from generation Z. Young Consumers, Vol. 23 No. 3, pp. 468-493.
Bigne, E., Chatzipanagiotou, K., Ruiz, C., 2020. Pictorial content, sequence of conflicting online reviews and consumer decision-making: the stimulus-organism-response model revisited. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2019.11.031
Chan, T. K., Cheung, C. M., & Lee, Z. W. (2017). The state of online impulse buying research: A literature analysis. Information Management, 54(2), 204-217.
Chang, C. C. & Chen, P. Y. (2019). Which maximized donations: charitable giving as an incentive or incentives for charitable giving. Journal of Business Research, Vol. 97, pp. 65-67.
Chen, C. C. & Yao, J. Y. (2018). What drives impulse buying behaviors in a mobile auction? The perspective of the Stimulus-Organism-Response model. Telemat. Inform. 35, 1249–1262.
Chen, C. C. & Yao, J. Y. (2018). What drives impulse buying behaviour in a mobile auction? The perspective of the Stimulus-Organism-Response model. Telematics Informatics, 35, 249 – 1262.
Chetioui, Y., & El Bouzidi, L. (2023). An investigation of the nexus between online impulsive buying and cognitive dissonance among Gen Z shopper: are female shoppers different?. Young consumer insights and ideas for responsible marketers, 24(1).
Chopdar, P. K., & Balakrishnan, J. (2020). Consumers response towards mobile commerce applications: S-O–R approach. International Journal of Information Management 53: 102106.
Daud, N. M., Mohd, N. R. N., Shamsudin, N. S., Zaidan, N. K., & Mohamed, I. S. (2016). Factors that influence student's behavior on online shopping in Malaysia. PONTE International Journal of Science and Research, 72(4).
De Kerviler, G., Demoulin, N. T. M., & Zidda, P. (2016). Adoption of in-store mobile payment: Are perceived risk and convenience the only driver?. Journal of Retailing and Consumer Services, 31(4).
Do, H. N., Shih, W., & Ha, Q. A. Ha. (2020). Effects of mobile augmented reality apps on impulse buying behavior: An investigation in the tourism field. Heliyon 6 (8): e04667.
Donovan, R., & Rossiter, J. R. (1982). Store atmosphere: An environment psychology approach. Journal of Retailing, 58.
Gerrans, P., Baur, D. G., & Lavagna-Slater, S. (2022). Fintech and responsibility: Buy-now-pay-later arrangements. Australian Journal of Management, 47(3), 474-502. https://doi.org/10.1177/03128962211032448
Hani, A., & Jalil, A. (2022). Regulations on BNPL vital for industry players, consumers. The
Malaysian Reserve. Retrieved June 4, 2022, from https://themalaysianreserve.com/2022/04/20/regulations-on-bnpl-vital-for-industryplayers-consumers/
Hilmi, L. D., & Pratika, Y. (2021). Paylater Feature: Impulsive Buying Driver for E-Commerce in Indonesia. International Journal of Economics, Business and Accounting Research (IJEBAR), vol. 5 (2).
Hsieh, J. J., Rai, A., & Keil, M. (2018). Understanding digital inequality: Comparing continued use behavioural models of the socio-economically advantaged and disadvantaged. MIS Quarterly 32(1), 97-126.
Jakupovic, E. (2018). The usage intention of online payment methods and the effects of willingness to pay, pain of paying and perceived ownership.
Jelihovschi, A. P. G., Cardoso, R. L., & Linhares, A. (2018). An analysis of the associations among cognitive impulsiveness, reasoning process and rational decision making. Front. Psychol, 8.
Khachatryan, H., Rihn, A., Behe, B., Hall, C., Campbell, B., Dennis, J. & Yue, C. (2018). Visual attention, buying impulsiveness and consumer behaviour. Marketing Letters, Vol. 29, No. 1, pp. 23-35.
Kim, B. (2011). Understanding antcedents of continuance intention in social-networking services. Cyberpsychology, Behaviour and Social Networking 14(4), 199-205.
Lew, S., Tan, G. W., Loh, X. M., Hew, J. J. & Ooi, K. B. (2020). The disruptive mobile wallet in the hospitality industry: An extended mobile technology acceptance model. Technology in Society, 63.
Liu, Q., Shao, Z., Tang, J., & Fan, W. (2019). Examining the influential factors for continued social media use: A comparison of social networking and microblogging. Industrial Management and Data System.
Liu, Y., Li, H. X. & Hu, F. (2013). Website attributes in urging online impulse purchase: An empirical investigation on consumer perceptions. Decision Support Systems, 55 (3): 829–837.
Mehrabian, A., & Russell, J. A. (1974). The Basic Emotional Impact of Environments. Perceptual and Motor Skills, 38(1), 283-301. https://doi.org/10.2466/pms.1974.38.1.283
Mitchell, S. & Qadar, S. (2019). Afterpay, PayPal and Zip Pay: The shopping tech making us buy more. Retrieved June 20, 2020, from https://www.abc.net.au/life/afterpay-paypaland-zip-pay-making-us-buy-more/11604216
Nan, D., Kim, J. H., & Kim, Y. (2020). What motivates users to keep using social mobile payments? Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176878
Park, E. J., Kim, E. Y., Funches, V. M., Foxx, W. (2012). Apparel product attributes, web browsing, and e-impulse buying on shopping websites. Journal of Business Research, Vol. 65 No. 11, pp. 1583 – 1589.
Rouibah, K., Al-Qirim, N. & Hwang, Y. J. (2021). The determinants of eWoM in social commerce: The role of perceived value, perceived enjoyment, trust, risks, and satisfaction. Journal of Global Information Management 29(3), 75-102.
Sihombing, E. S., Budi, I. & Munajat, Q. (2020). Factors affecting the urge of impulsive buying on social commerce Instagram. International Journal of Internet Marketing and Advertising 14(3), 236-257.
Wieseke, J., Kolberg, A. & Schons, L. M. (2016). Life could be so easy: the convenience effect of round price endings. Journal of the Academy of Marketing Science, Vol. 44 No. 4, pp. 474-494.
Xiang, L., Zheng, S., Lee, M. K. & Zhao, S. J. (2016). Exploring consumers’ impulse buying behaviour on social commerce platform: The role of parasocial interaction. International Journal of Information Management, 36, 333-347.
Zhang, Y., Winterich, K. P., & Mittal, V. (2010). Power distance belief and impulsive buying. Journal of Marketing Research, Vol. 47 No. 5, pp. 945-954.
Zheng, X. B., Men, J. Q., Yang, F., & Gong, X. Y. (2019). Understanding impulse buying in mobile commerce: An investigation into hedonic and utilitarian browsing. International Journal of Information Management, 48, 151–160.
Zhou, R. & Feng, C. (2017). Difference between leisure and work contexts: The roles of perceived enjoyment and perceived usefulness in predicting mobile video calling use acceptance. Frontiers in Psychology.
Zhu, D. H., Wang, Y. W. & Chang, Y. P. (2018). The influence of online cross-recommendation on consumers’ instant cross-buying intention: The moderating role of decision-making difficulty. Internet Res, 28.
Published
2024-03-01
How to Cite
NIK AZMI, Nik Nuraisyah et al.
Buy Now Pay Later Mechanism Trigger Impulsive Purchase Behaviour among Malaysian Millennials Generation.
International Journal of Business and Technology Management, [S.l.], v. 6, n. 1, p. 41-48, mar. 2024.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/25864>. Date accessed: 14 oct. 2024.
Section
English Section
