The Determinants of Impulse Buying in Construction Sector: Evidence from North Cyprus Economy

ABSTRACT: The objective of this thesis is to empirically investigate the relationship between impulse buying and its determinants by using cross-sectional data over 200 participants. Specifically, a questionnaire was conducted within the North Cyprus region takes into account the role of price, location, state agency and property rights. OLS technique is applied to test the validity of the model and the relative importance of different variables which may have an impact on impulse buying factor. The empirical findings obtained show that the influence price, remoteness as well as property right have an impact on impulse buying which is believed that this stimulate the volume of sale. The effect of state agency has a negative but it is found insignificant on impulse buying factor. This advises that people buying a house referring to a word of mouth rather than information obtained from state agencies. The results also suggest that lands belongs to Greek Cypriots are more ambiguous and cheaper than Turkish Cypriots lands. Policy or regulation in construction sector should be improved based on the estimated results. Cyprus problem should also be solved to make customers or house buyers’ life easier. Keywords: Impulse buying, price, property rights, construction sector, North Cyprus economy. ……………………………………………………………………………………………………………………………………………………………………………………………………………………