A

STUDY ON

“EFFECTIVENESS OF
MERCHANDISE
PRESENTATION
STRATEGIES IN SUPER
MARKET IN WOMEN
ETHNIC WEARS”

1
EXECUTIVE SUMMERY

2
 EXECUTIVE SUMMERY

Visual merchandising

Visual merchandising is the activity of promoting the sale of goods, especially by their
presentation in retail outlets.(New Oxford Dictionary of English, 1999, Oxford
University Press). This includes combining products, environments, and spaces into a
stimulating and engaging display to encourage the sale of a product or service. It has
become such an important element in retailing that a team effort involving the senior
management, architects, merchandising managers, buyers, the visual merchandising
director, designers, and staff is needed.

Visual merchandising starts with the store building itself. The management then decides
on the store design to reflect the products the store is going to sell and how to create a
warm, friendly, and approachable atmosphere for its potential customers.

Many elements can be used by visual merchandisers in creating displays, including

colour, lighting, space, product information, sensory inputs such as smell, touch, and
sound as well as technologies such as digital displays and interactive installations.

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Visual merchandising is not a science; there are no absolute rules. It is more like an art in
the sense that there are implicit rules but that these also exist to be broken for striking
effects. The main principle of visual merchandising is that it is intended to increase sales,
which is not the case with a "real" art.

Visual merchandising is one of the final stages in trying to set out a store in a way that
customers will find attractive and appealing and it should follow and reflect the principles
that underpin the store’s image. Visual merchandising is the way one displays 'goods for
sale' in the most attractive manner with the end purpose of making a sale. "If it does not
sell, it is not visual merchandising."

Especially in today’s challenging economy, people may avoid designers/ visual

merchandisers because they fear unmanageable costs. But in reality, visual merchandisers
can help economise by avoiding costly mistakes. With guidance of a professional, retailer
can eliminate errors, saving time and money. It is important to understand that the visual
merchandiser is there, not to impose ideas, but to help clients articulate their own
personal style.

Visual merchandising is the art of implementing effective design ideas to increase store
traffic and sales volume. VM is an art and science of displaying merchandise to enable
maximum sale. VM is a tool to achieve sales and targets, a tool to enhance merchandise
on the floor, and a mechanism to communicate to a customer and influence his decision
to buy. VM uses season based displays to introduce new arrivals to customers, and thus
increase conversions through a planned and systematic approach by displaying stocks
available.

Recently visual merchandising has gained in importance as a quick and cost effective
way to revamp retail stores.

Purpose

Retail professionals display to make the shopping experience more comfortable,

convenient and customer friendly by:

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  Making it easier for the shopper to locate the desired category and merchandise.
 Making it easier for the shopper to self-select.
 Making it possible for the shopper to co-ordinate & accessorize.
 Informing about the latest fashion trends by highlighting them at strategic
locations.

Merchandise presentation refers to most basic ways of presenting merchandise in an

orderly, understandable, ’easy to shop’ and ‘find the product’ format. This easier format
is especially implemented in fast fashion retailers

VM helps in:

 educating the customers about the product/service in an effective and creative

way.

 establishing a creative medium to present merchandise in 3D environment,

thereby enabling long lasting impact and recall value.

 setting the company apart in an exclusive position.

 establishing linkage between fashion, product design and marketing by keeping

the product in prime focus.

 combining the creative, technical and operational aspects of a product and the
business.

drawing the attention of the customer to enable him to take purchase decision within
shortest possible time, and thus augmenting the selling process.

History

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Every shopkeeper and merchant's primary objective is to sell merchandise. When the
giant nineteenth century dry goods establishments like Marshall Field & Co. shifted their
business from wholesale to retail the visual display of goods became necessary to attract
the retail customer. The store windows no longer simply allowed natural light to shine in
the building or act as storage space for stock; they became important venues to
attractively display the store's merchandise. Gradually, the design aesthetic used in
window displays moved indoors and became part of the overall interior store design,
eventually displacing the importance windows altogether in suburban malls.

Museums and department stores in America have a shared history of displaying their
products, both having come of age in the last quarter of the nineteenth century. Like
world's fairs, department stores and museums crowded everything together on shelves or
in display cases. Today displays in museums are referred to as exhibitions, while displays
in stores are referred to as "Visual Merchandising. Essentially, visual merchandising is
the selling of a store's goods through visual means, incorporating advertising, and
window displays, and interior sales floor design and display. Throughout the twentieth
century, well-known artists such as Salvador Dalí and Andy Warhol created window
displays, while other artists who are lesser known were commissioned to design unique
objects specifically for visual merchandising purposes.

1. Sell by showing and promoting the product. 2. Create an emotional connect beween
the viewer and the display. 3. Encourage the shopper to enter the store. 4. Get the
customer to pause and “shop” the selling floor. 5. Establish, promote, and enhance the
store’s visual image. 6. Entertain customers and enhance their shopping experience. 7.
Introduce and explain new products.

Variances

Planogram

A Planogram allows planning of the arrangement of merchandise on a given fixture

configuration to support sales through proper placement of merchandise by Style, Option,

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Size, Price points, etc. It also enables a chain of stores to have the same merchandise
displayed in a coherent and similar manner across the chain.

The main purpose is to support ease of applicability to the merchandiser while also
increasing selection & enhancing the merchandise display in a neat and organized
manner.

Window Displays

A retailer's window is the most controllable element in relation to image and must match
their merchandise's target demographic. Windows may communicate style, content, and
price point. They can be seductive, exciting or based on emotional stimulus through
stimulation, or evocation of all five senses. Another direction taken by retailers who rely
on volume sold is price-based selling. These clearly emphasize value for money with
easy and obvious ticketing.

The best store windows can generate great excitement and are a talking point. They
contribute to the environment by entertaining pedestrians, while simultaneously
communicating the products and services on offer.

For a retailer willing to exploit the full potential that a window gives, the image-building
process can be exciting and have enormous potential. A fashion retailer, for instance, will
often change a window weekly to show the latest items on offer. A glance into a shop's
window by a passerby establishes the time of the year and, very likely, a timely
contemporary event. It might combine seasonal and festive points of the year such as
Back-to-school, Spring, Summer, Easter, Christmas, New Year approaching, Diwali,
Valentine's Day, Mother's Day etc. At other times the propping may be based on color
schemes, materials or cultural themes.

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OBJECTIVE OF THE STUDY

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 OBJECTIVE OF THE STUDY

This study aims to review of customers’ responses on the visual merchandising of

supermarkets. In addition, main objective of this study is to examine the influence

emerged from visual merchandising on consumer’s store choice behavior. The specific

objectives of the study are,

1. To identify the influence made by the Lighting on consumer’s store choice

decisions

2. To examine the impact made by Design Layouts on consumer store preference

3. To find out the influence made by Product Display to encourage customer’s

buying decisions

4. To evaluate the relative importance of cleanliness of supermarket premises on

customers store choice behavior.

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RESEARCH PROBLEM

10
 RESEARCH PROBLEM

The interior design within store can maintain customer interest, encourage

customers to lower their psychological defenses and easy to make purchasing decisions

(Kotler, 1974; Walters and White, 1987; Bitner, 1992; Omar, 1999; Davies and Ward,

2002). Therefore, Marketers have recognized that point of visual merchandising in

retailing makes significant effect on consumer buying decisions (Schiffman and Kanuk,

1996). Most of researches conducted in supermarket concept in western base countries

are referring to different superstore system compared to INDIAN condition. Though they

are labeled as supermarkets, these are only retail outlets providing self services. Kerfoot,

Davis and Ward (2003) found that Visual merchandising is main element of store choice

behavior. The study conducted by Sinha and Banergy (2004), found that in-store

environment is not important on store choice decisions in evolving market. Shopping is a

recreational activity and selecting a store is perceived to be high on “entertainment”

value. (Woodside et al.,1992). As well as some researchers have argued that store choice

behavior depends on supermarket location and its service level. According to Hartline

(2000) the behaviors of frontline service employees are critical to customer evaluations of

service encounter. Ugur yavas (2001) found that major criteria for store choice decisions

are distance, travel time and size of an outlet.

In INDIAN context, most of supermarkets use visual merchandising as point of

sales promotions within their supermarket premises. And also the major supermarket

chains are highly concerned about background music and in store fragrance. According to

some INDIAN supermarket managers, all major supermarket chains spend more than

11
40% of their promotional budget on in store promotions. The major reason behind this is

that many of the marketers today reasonably assume that a considerable influence can be

made on buying decisions of consumers through visual merchandising. Though the

situation is so, in certain cases, it seems that some customers select the stores based on

outside promotional tools like car parking spaces, location and Children Park etc other

than stimulation of visual merchandising. Hence, the problem centered in this study is to

measure the extent to which visual merchandising of INDIAN supermarket affects the

customers store choice decisions.

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RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a

proper well-organized research plan, it is impossible to complete the project and
reach to any conclusion. The project was based on the survey plan. The main
objective of survey was to collect appropriate data, which work as a base for
drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic
behind the methods used in the context of a research study and it explains why a
particular method has been used in the preference of the other methods

Data Collection

As a matter of fact, this study is almost an empirical one. So, as far as possible

attempt was made to gather primary data. In that context, a detailed questionnaire was

administrated. Meanwhile personal interviews and observations were also made. The

primary research was carried out in 05 supermarkets located in Delhi, Noida, Faridabad

and Gurgaon and information were collected from customers who were purchasing

products from the supermarket at the time of the survey. Additionally, secondary data for

conceptualization and operationalization of the matters and other purposes were also

utilized through textbooks, articles of journals and web sites etc.

Data were collected through questionnaires and interviews from 200 respondents selected

from four areas of Delhi and suburbs. There was no any rejected questionnaire due to

field investigators personally filled questionnaire with personal interviews. On the other

hand, the researcher instructed them to select only the customers who purchase products

from supermarkets. Most of the data pertaining to this study have been collected from

14
customer sample drawn from Delhi and suburbs. The sample was distributed in Delhi,

Gurgaon, Noida and Faridabad by selecting 50 respondents from each area.

Data analysis Procedure

Both descriptive and inferential statistics were used in presenting and analyzing

the data. Descriptive tools such as frequency counts, mean scores, percentages and

standard deviation were calculated for the statements on the questionnaire in order to

determine the impact of in store promotions on store choice decisions. In addition,

correlation was used to determine the relationship between customer’s attitudes regarding

visual merchandizing variables and customers store choice behavior.

Data collection methods:

After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data.
One of the important tools for conducting market research is the availability of
necessary and useful data.

Primary data: For primary data collection, we have to plan the following four
important aspects.

 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature
studies are important sources of secondary data.
 Data analysis and interpretation

1. Questionnaires
2. Pie chart and Bar chart

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Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains
question that the researcher wishes to ask his respondents which is always
guided by the objective of the survey.

Pie chart:

This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is
represented by the full create. The diagram bar chart can make comparison
among the various components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it

consist of a number of whispered bar, which originate from a common base line
and are equal widths. The lengths of the bards are proportional to the value they
represent.

Preparation of report:

The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report itself.

Sample size: The sample size is 100

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ORGANIZATION OVERVIEW

17
 INTRODUCTION TO THE COMPANIES

VISHAL MEGA MART

What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is
today a conglomerate encompassing 180 showrooms in 100 cities / 24 states. India’s first
hyper-market has also been opened for the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the singe largest collection of goods and
commodities sold under one roof in India.The group had a turnover of Rs. 1463.12
million for fiscal 2005, under the dynamic leadership of Mr.Ram Chandra Agarwal . The
group had a turnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for
fiscal 2007.

The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion
at prices to suit every pocket.

The group’s philosophy is integration and towards this end has initiated backward
integration in the field of high fashion by setting up a state of the art manufacturing
facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all
price ranges. The showrooms have over 70,000 products range which fulfills all your
household needs, and can be catered to under one roof. It is covering about 29, 90, 146
sq. ft. in 24 states across India. Each store gives you international quality goods and
prices hard to match. The cost benefits that is derived from the large central purchase of
goods and services is passed on to the consumer.

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700
imported machines that have a capacity to manufacturer 150000 pieces a month. The
factory occupies 80000 sq ft of covered space.The Vishal group indirectly gives
employment to more than a 1000 people. These people work in ancillaries that supply
finished goods to the company.

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- HOME FURNISHING
Drawing Room Bedroom
Door Mat Bed Sheet
Carpet Pillows
Curtains Pillow Cover
Kitchen Bathroom
Apron Bath Mats
Kitchen Napkin Towel Gift Sets

-------------------------------------------------------------
---------
 - FOOD MART
FOOD & BEVERAGES
Snacks
Drinks

-------------------------------------------------------------
-----------
 - SPORTS & FITNESS
INDOOR GAMES OUTDOOR GAMES
Basket Ball Cricket Bat
T.T. Bat Football
Boxing Kit Lawn Tennis
Swimming Costumes Tennis Racket
Water Ball Tennis Ball
Fitness Equip.
Personal Gym
-------------------------------------------------------------
--------
 - FOOTWEAR
BOYS GIRLS
Shoes Slippers
Sandals Sandals
LADIES MENS
Shoes Shoes
Slippers Slippers

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-------------------------------------------------------------
---------
 - TELEMART
Communication Mobile Accessories
Mobile Mobile Batteries
Mobile Charger
Mobile Dori

-------------------------------------------------------------
-----------
 - MENS
Upper Lower
Shirt Casual Jeans(MP)
Shirt Formal Cotton Trouser(MPC)
Ethnic & Sports Winter Wear
Night Suits Suit(WMC)
T-Shirts Blazer(WMB)
Dupatta Windcheater(WMW)
Sherwani Jacket
-------------------------------------------------------------
-----------
 - LADIES ACCESSORIES
Upper Lower
Kurta Pants Jeans
Skirt Top Capri
Ethnic Winter Wear
Nighty Jackets
Lancha Stawl
Sharara Blazer
Salwar Suit Track Suit
-------------------------------------------------------------
-----------
 - INFANTS
Garments Accessories
Hot Pant Bed Sheet
Frock Under Garments
Baba Suit Socks

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 Winter Wear
Sweater
Pull Over

-------------------------------------------------------------
-----------
 - WOMEN
Sarees Personal Items
Fancy(SRF) Cap(LCA)
Synthetics Socks(Las)
Banarsi
Jewellery Cosmetics
Necklace LIp Gloss
Ring Nail Polish

-------------------------------------------------------------
-----------
 - KIDS BOYS
Lower Sets Winter Wear
Jeans Night Suit Suit
Bermudas Baba Suit Blazer
Dungries Jacket
Upper Ethnic
Shirt Formal Kurta- Pyjama
T-Shirt Sherwani

-------------------------------------------------------------
-----------
 - KIDS GIRLS
Lower Sets Winter Wear
Hot Pant Night Suit Hipster Set
Skirt Capri Set Blazer
Dungries Jacket
Upper Ethnic
Tops(GWT) Sharara
Frock(GFK) Lancha

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-------------------------------------------------------------
-----------
 - TRAVEL ACCESSORIES
Luggages Portfolio Bags
Suitcase Shoulder Bags
Executive Bag
School Bags
Pouch & Cases
Waist Pouch
Vanity Cases

-------------------------------------------------------------
-----------
 - HOUSEHOLD
Acrylic Ware Copper Steel
Dinner Set Jug Cake Server
Home Aids Pressure Cooker Non Stick
Floor Wiper Cooker Handi
Sanitary Brush Pressure Pan Dosa Tawa
General PlasticElectrical App. Bone China
Goods
Coffee Mug Chopper Soup Set
Bucket Microwave Oven Dessert Set
Glass Ware Thermo Ware Porcelain
Cup Tiffin Cup & Saucer
Lemon Set Container
-------------------------------------------------------------
-----------
 - LIFESTYLE
Time Zone Opticals Gifts & Novelties
Ladies WristLadies Sun Glass Flower Vase
Watch
Mens WristMens Sun Glass Key Chain
Watch
Mens AccessoriesElectric &Perfume/Deo
Electronics Items
Belts Battery(ABT) Spray
Wallets Calculator(EEC) Deo
 - TOYS & GAMES
Soft Toys Dolls Cycles & Scooters

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 Musical Toys Barbie Doll Cycles
Non-Musical Other Dolls Scooters
Board Games Infant Toys Video Games
Wooden Blocks Teether T.V. Video Game
Puzzles Swing Hand Video Game

more...
 - STATIONARY
School Office Paper Mart
Exam Board Office File Diary
Clay Punching Machine File
Party Stuff    
Balloons
Ribbons

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24
SPANCER HYPERMART GURGAON

pencer’s Retail Limited is a multi-format retailer providing a wide range of quality

products to discerning young customers - well-travelled citizens of the world, looking out
for authentic flavors and experiences in a fun-filled shopping environment. Our brand
positioning – Taste the World – embodies this approach, delighting shoppers with the
best that the world has to offer in terms of interiors, ambience and merchandise.

Part of the Rs 15,500 crore RPG Group, we run about 250 stores (including about 29
large format stores) across 50 cities in India, employing more than 6,000 people. As one
of the earliest entrants in the retail space in India, we have been instrumental in
introducing Indian consumers to the concept of organized retailing, becoming the
country’s first grocery chain back in 1920, and offering the joys of hypermarket shopping
in 2001.

A “food first” retailer we offer both fresh and packaged foods as well as groceries. We
also have a wide selection of electronics and electrical equipment, home and office
essentials, garments and fashion accessories, toys, and personal care.

Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the
Spencer’s Empire stretched from Peshawar to Cochin, from Karachi to

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Chittagong, spanning the length and width of undivided India. Originally owned by a
British gentleman – yes, there was a Mr. Spencer (John William Spencer, to be precise) –
it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989.

In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Foodworld
as a joint venture with Hong-Kong based Dairy Farm International. The joint venture,
which operated supermarkets under thename “Foodworld” and hypermarkets under the
name “Giant”, was terminated in 2006. RPG retained 48 of the 93 stores it owned. These
were re-furbished and their launch under the brand name, Spencer’s, kicked off a new
phase in both the history of the Spencer’s brand, and the retailin India.

Since inception Spencer’s has been a consumer-centric brand, constantly innovating,

pioneering formats, evolving over time but always keeping consumer needs and
satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980,
we became the first supermarket chain, and in 2001, we introduced India to the joys of
hypermarket shopping.

What has remained unchanged almost 150 years is the trust the Spencer’s brand evokes.
To the consumer, it carries the promise of innovation, quality, and service; the confidence
that they will always be able to find a Spencer’s at a convenient location; that it will have
a pleasant ambience; and that it will offer a wide range of products at affordable prices.

The spancer hypermart is situated at Spencers Hyper, MGF MEGACITY MALL 122002

BIG BAZAR (PANTALON)

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company operates over 10 million
square feet of retail space, has over 1000 stores across 61 cities in India and employs
over 30,000 people.

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The company’s leading formats include Pantaloons, a chain of fashion outlets,  Big
Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends
the look, touch and feel of Indian bazaars with aspects of modern retail like choice,
convenience and quality and Central, a chain of seamless destination malls. Some of its
other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,
aLL, Top 10, mBazaar and Star and Sitara. The company also operates an online portal,
futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited,
operates Home Town, a large-format home solutions store, Collection i, selling home
furniture products and E-Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the
US-based National Retail Federation (NRF) and the Emerging Market Retailer of the
Year 2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group

catering to the entire Indian consumption space. Pantaloon is not just an organization - it
is an institution, a centre of learning & development. We believe that knowledge is the
only weapon at our disposal and our quest for it is focused, systematic and unwavering.

At Pantaloon, we take pride in challenging conventions and thinking out of the box, in
travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain
Values’ is derived from this spirit.

Over the years, the company has accelerated growth through its ability to lead change. A
number of its pioneering concepts have now emerged as industry standards. For
instance, the company integrated backwards into garment manufacturing even as it
expanded its retail presence at the front end, well before any other Indian retail company
attempted this. It was the first to introduce the concept of the retail departmental store
for the entire family through Pantaloons in 1997. The company was the first to launch a
hypermarket in India with Big Bazaar, a large discount store that it commissioned in

27
Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a
unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai.
Embracing our leadership value, the company launched aLL in July 2005 in Mumbai,
making us the first retailer in India to open a fashion store for plus size men and women.

Today we are the fastest growing retail company in India. The number of stores is going
to increase many folds year on year along with the new formats coming up. The way we
work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality
– that change people’s lives, is our biggest advantage. Pantaloon is an invitation to join a
place where there are no boundaries to what you can achieve. It means never having to
stop asking questions; it means never having to stop raising the bar. It is an opportunity
to take risks, and it is this passion that makes our dreams a reality.Come enter a world
where we promise you good days and bad days, but never a dull moment!

Based on the company’s in-house consumer data and research, and in cognizance with
observations on customer movements and the shopping convenience factor, Food Bazaar
has initiated certain refurbishments and layout design across all stores. The intention is to
continuously change with the times and demands of the evolving Indian consumer.

Food Bazaar also witnessed healthy expansion during the year 2006-07, making its
presence felt in nearly 26 cities and adding 40 stores during the year under review. The
total count of Food Bazaars as on 30th June 2007 stood at 86 stores. The year under
review witnessed the company’s private label programme gaining significant traction.
The brands have been very competitive vis-à-vis the established brands in quality and
price terms, and have in fact scored better than national or international players in certain
categories.

The share of private labels as a percentage of total Food Bazaar revenues has increased
significantly and comprise nearly 50 merchandise categories.

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While Fresh & Pure brand entered categories like cheese slices, frozen peas, honey,
packaged drinking water and packaged tea, the Tasty Treat brand received a very
favorable response in new categories like namkeens and wafers. In the home care
category, Caremate launched aluminum foil and baby diapers while Cleanmate launched
detergent bars and scrubbers.

A new format ‘BB Wholesale Club’ was launched and 4 such stores have been opened so
far. To be managed by Food Bazaar from the ensuing financial year, this format sells
only multi-packs and bulk packs of a select range of fast moving categories and caters to
price sensitive customers and smaller retailers.

The company has also forged tie-ups with established companies like ITC, Adanis, DCM
Group, USAID and other farm groups in Maharashtra and Madhya Pradesh to source
directly from them. These alliances are expected to drive efficiencies as well as bring
better products to consumers.

By the end of FY 07-08, the total number of Food Bazaar stores is expected to be 200.

29
LITERATURE SURVEY

30
 THE IMPACT OF VISUAL MERCHANDISING ON
CONSUMER STORE CHOICE DECISIONS IN INDIAN
SUPERMARKETS

ABSTRACT

The supermarket concept was initially started in INDIA at

1980’s and the particular industry began to expand after the
year 2000. The supermarket industry is at the growing stage
of the Industry Life Cycle. The Visual Merchandising of
supermarket outlets were focused in this study and major
purpose was to examine the consumer reaction to the
Visual Merchandising in supermarkets in INDIA.

This study was based on both primary and secondary

data. The primary data were collected from the sample
survey that was conducted in the area of Delhi, Noida,
Gurgaon and Faridabad. 200 respondents were selected for
the sample. A questionnaire was designed to obtain
customer’s attitudes regarding major variables of Visual
Merchandising in their store choice decisions. Visual
Merchandising was grouped into four variables namely

31
Lighting, Design Layouts, Product Display and
Cleanliness.

The secondary data were collected from published sources.

The study revealed that the influence emerged from
Product Display and Cleanliness on consumer store choice
decisions is very significant. The Lighting and Design
Layouts moderately influenced their store choice behavior.
The overall conclusion is that visual merchandising has
significant impact on store choice decision of customers in
INDIA.

INTRODUCTION

Retailing as an industry has been growing by leaps and bounds, over the past

decade. Different types of retailers such as supermarket chains, clothing and textile

outlets/chains and food chains have emerged at present. There are several major

supermarket chains operating in INDIA. The private supermarket chains in the country

are on a rapid expansion driven to urban and rural areas. It was only about three years ago

the supermarkets in INDIA widely expanded all over the areas outside the city limits.

This was driven by the factors like the emergence of a new social circle of wealthy

people in outstation areas, the newly acquainted life styles of people requiring them to

seek such services. Due to the mass demand, a number of supermarkets have been

established in addition to the existing areas.

32
 The supermarket concept was initiated in INDIA with the departmental stores

namely Cargills and Millers, during the British Colonial period. The supermarkets were

initially started in INDIA in 1980’s. Whatever the situation, this particular industry began

to expand after the year 2000. Today, the supermarket industry is at the growing stage of

its Industry Life Cycle. As per data available, there are approximately 325 supermarket

outlets offering FMCG products in major areas in the country. Two major company’s

supermarket chains such as Cargills Food City and Keels Supper dominate the industry.

At present, these two major supermarket chains have 100 outlets all over the country. In

addition to above major supermarket chains, there are 33 outlets operated by other small

supermarket chains such as Sentra, Kings Supper, Arpico, Sun Up, Park,n,Shop, Cristal

and Prince Supper etc. In addition to the major super market chains, there are also self-

service retailing outlets owned by individuals operating in all over the country.

RESEARCH PROBLEM AND OBJECTIVES

The interior design within store can maintain customer interest, encourage

customers to lower their psychological defenses and easy to make purchasing decisions

(Kotler, 1974; Walters and White, 1987; Bitner, 1992; Omar, 1999; Davies and Ward,

2002). Therefore, Marketers have recognized that point of visual merchandising in

retailing makes significant effect on consumer buying decisions (Schiffman and Kanuk,

1996). Most of researches conducted in supermarket concept in western base countries

are referring to different superstore system compared to INDIAN condition. Though they

are labeled as supermarkets, these are only retail outlets providing self services. Kerfoot,

Davis and Ward (2003) found that Visual merchandising is main element of store choice

behavior. The study conducted by Sinha and Banergy (2004), found that in-store

33
environment is not important on store choice decisions in evolving market. Shopping is a

recreational activity and selecting a store is perceived to be high on “entertainment”

value. (Woodside et al.,1992). As well as some researchers have argued that store choice

behavior depends on supermarket location and its service level. According to Hartline

(2000) the behaviors of frontline service employees are critical to customer evaluations of

service encounter. Ugur yavas (2001) found that major criteria for store choice decisions

are distance, travel time and size of an outlet.

In INDIAN context, most of supermarkets use visual merchandising as point of

sales promotions within their supermarket premises. And also the major supermarket

chains are highly concerned about background music and in store fragrance. According to

some INDIAN supermarket managers, all major supermarket chains spend more than

40% of their promotional budget on in store promotions. The major reason behind this is

that many of the marketers today reasonably assume that a considerable influence can be

made on buying decisions of consumers through visual merchandising. Though the

situation is so, in certain cases, it seems that some customers select the stores based on

outside promotional tools like car parking spaces, location and Children Park etc other

than stimulation of visual merchandising. Hence, the problem centered in this study is to

measure the extent to which visual merchandising of INDIAN supermarket affects the

customers store choice decisions.

This study aims to review of customers’ responses on the visual merchandising of

supermarkets. In addition, main objective of this study is to examine the influence

emerged from visual merchandising on consumer’s store choice behavior. The specific

objectives of the study are,

34
 5. To identify the influence made by the Lighting on consumer’s store choice

decisions

6. To examine the impact made by Design Layouts on consumer store preference

7. To find out the influence made by Product Display to encourage customer’s

buying decisions

8. To evaluate the relative importance of cleanliness of supermarket premises on

customers store choice behavior.

LITERATURE REVIEW

Retailers are facing a keen competitive market place and as a consequence of that they

find many difficulties to differentiate their stores on the basis of product, place, people,

price and promotion. Retail store elements such as colour, lighting and visual

merchandising have always been considered as having immediate effects on the buying

decision making process. The emphasis has moved away from in-store product displays,

towards elements that excite the senses of shoppers such as flat screen videos or graphics,

music, smells, lighting and flooring that tend to capture the brand image or personality

and help to create an unique environment and shopping experience (McGoldrick, 1990;

Marsh, 1999).

The physical in store environment has been examined in relation to various

elements, for example: orienting factors (Davies and Ward, 2002); signage (Bitner,

1992); Spatial factors and ambient conditions (Davies and Ward, 2002), which Kotler

termed “atmospherics”. The work regarding physicality of in-store environment focuses

on the “communication” of elements through cues and stimuli that the consumer digests

through a number of sensory modalities (visual, aural, olfactory, haptic and taste).

35
Therefore, all literature commonly recognized as in-store environment depends on visual

merchandising and other in store promotions.

Visual simulation and communication have long been considered important

aspect of retailing by practitioners and academic alike (McGoldrick, 1990,2002). This

interest in the visual has – at one level within the retail context – coalesced to from the

practices of “visual merchandising”. This is defined as the activity, which coordinates

effective merchandising selection with effective merchandising display (Wolters and

White, 1987, p.238). Visual merchandising is therefore concerned with both how the

product and/ or brand are visually communicated to the customer and also whether this

message is decoded “appropriately”. In this context, it will be affecting to a positive

psychological or behavioral outcome, ultimately leading to purchase.

In a study of store choice behavior among audio equipment shoppers, Dash et al.

(1976) found that the level of pre-purchase information regarding the brand determined

the type of store chosen. Shoppers who had higher levels of pre-purchase information

generally shopped at the specialty store, whereas shoppers with low pre-purchase

information bought at departmental stores. This is mainly attributed to customers

adopting a risk reduction policy with regard to their impending purchase. Kenhove et al.

(1999) found that store choice is differentiated by the nature of the task. They studied the

store choice decision across various tasks as described by the respondents, such as urgent

purchase, large quantities, difficult job, regular purchase and get ideas. The chosen stores

differed in their salience rating depending on the task the shopper intended to perform.

The salience of the stores has also been found to be affected by situational factors.

36
In a study conducted by Mattson (1982), was found that situational attributes, such as

time pressure and gift-versus self-shopping, can influence store choice and attribute

salience. It is also indicated that the situational influence needs to be evaluated for every

visit and hence some shoppers may change their choice because of situation specific

drivers. These situational influences may be classified as the competitive setting, the

individual’s situational set and the shopping occasion.

The atmosphere of the shopping environment can influence customer attitudes

and their perceptions in relation to the overall quality of the store in terms of the

uniqueness of the product, service levels (Baker, Grewal and Parasraman, 1994), the

purchase price (Areni and Kim, 1993) and purchase volume (Milliman, 1982). The role

of ambience in store choice has also been found significant. Kotler (1974) has proposed

atmospherics as an important part of retail marketing strategy. It is also found that the

shoppers determine the value of the merchandise based on monetary as well as non-

monetary costs (Zeithaml, 1988). It was found that recreation (a non-monetary value) was

the major driver for visiting a regional shopping centre (Treblanche, 1999). The shopping

experience, as created by the store environment, has been found to play an important role

in building store patronage. Along with the merchandise, it triggered affective reaction

among shoppers (Baker et al., 1992). It also contributes to creating store patronage

intentions (Baker et al., 2002).

According to above research studies, some researchers have argued that in-store

environment is critical component of store choice behavior and some other researchers

have argued that other variables are most important than in-store environment. However,

the previous research studies are providing evidence to store choice behavior is different

37
in different cultures. It leaves problem to us, “Whether visual merchandising can

significantly influence on customer’s store choice behavior in INDIAN supermarkets”

CONCEPTUALIZATION

In conceptualizing the study, researchers have attempted to build relationship between

key variables i.e., visual merchandising (independent variable) and store choice behavior

(dependent variables). According to the literature and pilot study in INDIAN

supermarkets, researchers recognized that lighting, design layout, product display and

cleanliness are the main variables of visual merchandizing. It is also necessary to

examine the relationship between two key variables and other variables influenced on

dependent variable. This would enable the researchers to interpret the findings in a more

comprehensive manner. The conceptual model that has been developed indicating their

relationship is given below

Lighting

Design Layout Visual Merchandizing Store Choice Behavior

Product Display

Cleanliness

Conceptual Model

38
ART AND SCIENCE BEHIND

For many years, businesses have tried to sell their products to buyers with limited
merchandise options. It did not matter how the merchandise was displayed, how the store
looked, or whether the sellers were polite. Just having merchandise available very often
guaranteed a sale. Not any more though.   

 Nowadays with an increase in the number of manufacturers and retailers, a buyer has
many options available in terms of style, functionality and price points. In a market where
buyers are now controlling the demand-supply chain, it has become an exercise for sellers
to entice the audience via the art and science of Visual Merchandising (VM) and retail
designing. It is the science and psychology of the retail and fashion world. VM involves
the techniques to draw shoppers into a store and keep them there. It includes
understanding buying habits and affects what you see — and how you see it. Three-
dimensional displays, the use of colour and accessories and the placement of the season’s
merchandise for maximum impact fall under the domain of VM.  

 VM starts with the merchandise itself and not with the decoration. The main issue is to
make the merchandise extremely attractive, exciting and enticing, stimulating the buyer’s
appetite and finally resulting in the decision to buy. Effective visual merchandising can
directly affect the bottom line of any retailer by: 

1. Maximising walk-ins

2. Increasing sales conversion

3. Increasing average customer billing amount

4. Insuring higher recall value in the mind of the consumer and hence creating a loyal and
ever expanding base of customers. 

Here are four display basics to be considered for designing a visual presentation:

1. Colour and texture

39
2. Line and composition

3. Lights and lighting

4. Types of display and display settings 

 Colour

Colour is the biggest motivation for shopping. People buy colour before they buy size, fit
or price. People also react to the colours around the merchandise being considered.
Colours are often selected for the amount of contrast they provide. The Colour Marketing
Group (CMG) consists of colour specialists from most industries for which colour is a
major factor in what is manufactured. The group serves as a guide, forecasts directions
and indicated colour trends well enough in advance so that the information can be
integrated into design and production schedules.  
  
Lines

Line is a direction. It is the second most important element after colour in creating a
response to the merchandise in display. It is known that each line suggests something else
and as letters are combined to form words, lines are arranged to make selling ‘pictures’. 

A straight line can be direct and forceful or rigid and precise. Long, low, wide, spreading
lines suggest an easy going, restful quality. The diagonal line is the line of action; it is
forceful, strong, and dynamic.   

 Light

Effective lighting can grab instant attention and facilitate the creation of that favourable
first impression of the merchandise and its surroundings. Just as colour creates the
emotional connection with the customer, light reinforces this emotional connection by
bringing the desired colours to life. When manipulated rightly, light creates the desired
emotion like the feeling of warmth, of clarity, of curiosity, of wonder, mystery and even

40
amazement. Good lighting can guide the customers' eyes; reveal the colour and form of
the merchandise.   

 Types of display

The primary purposes of displays are to present and promote. A display is at its best
when it simply shows a colour, an item, a collection or just an idea. Displays can be of
the following four types:  

 One-item display: The showing and advancement of a single garment or any single item.
It might be a gown designed by a top designer, a one of a kind ceramic or jewellery or a
new automobile.  

 Line-of-goods display: Shows only one type of merchandise e.g. all skirts, all pants, all
chairs; although they maybe in a variety of designs or colours.  

 Related merchandise display: Separates, accessories or other items that go together may
be displayed as they are meant to be together because either they are the same colour or
they share an idea or a theme.   

 Variety or assortment display: It is a mix of anything and everything. It is a collection of

unrelated items that happen to be sold in the same store. 

 Display settings

In the presentation of a display, there are some basic steps to set the scene for the
merchandise or the concept to be sold. These display settings largely influence your
perception and relation to the product and the brand displayed. They therefore directly
influence the pricing and consequently the profitability of the product being sold. For
example, similar products when displayed in large numbers diminish exclusivity and
when displayed in lesser number increase the exclusivity and therefore the perceived
value of the product. Hence, in the domain of display settings, less could mean more.  

41
 For a visual merchandiser the challenge is to make the retail space highly customer
friendly so that a client can spend maximum time in the given retail space, likely making
a wise buying decision. In order to achieve these standards, the visual merchandiser has
to look very deeply into the psychology of the customers as well as the walkers-by.
Research on how customers move through a store and what they see, shows that there are
certain hot spots and locations in a shop that catch the customer’s eye first. Putting up
communications will help stimulate purchases, especially impulse sales.  As I see, VM is
perched on this fine line between art and science. It demands the rigors and method of
science and the inspired imagination of art. Both of these combined and when in
harmony, give it the power to change our lives by changing what we buy, where we buy
and why we buy.  

 Still in it is infancy in India; visual merchandising is set to grow with the rapidly
changing retail scenario. As more and more brands come into the country, the fight for
the consumer’s mind-space is going to be like never before. Eventually, it is the visual
merchandiser who is going to help win this battle for the consumer’s wallet. As brands
learn to add value through product differentiation and thrive to give customers the perfect
shopping experience, VM in India too, shall have its due.

42
ATMOSFERIC AND RETAIL SPACE MANAGEMENT

Atmosphere is referred to a store's physical attributes which is the key factor in order to
draw customers. It is also important in creating a brand positioning for the outlet. The
quality of the service experience for the customer , is a major factor in positioning the
brand in the minds of the visitors of the store. As one of the customers of the local
grocery store puts it when asked about the reason why he frequents the particular store he
answered and I quote "A pleasant experience is the ultimate memory".
These words above correctly depict the significance of the small scale retailers in the
lives of the people. This relationship between the customer and the retailer is the USP of
the small scale shop owners. And this is exactly what the organized players lack.
But the organized retailer compensates the same by providing more facilities to the
customer under one roof. For instance big retailers often have a large display area, thus
creating an atmosphere where the customer is comfortable in selecting or evaluating the
goods they wish to buy.
Atmospherics and space management are effective tools in managing any retail business.
It is now that Visual merchandising has come to the forefront. Surprisingly in India
Raymond was the first retail fashion chain which took 'Atmospherics' seriously. And
today many other retailers are following the path of Visual and Display creativity to
differentiate themselves from their competition and this trend is here to stay for a long
time.
Importance of Atmospherics
Enhances the image of the retail outlet and attract new customers

Creates a definite Unique Selling Proposition (USP)

Facilitates easy store movement and access to merchandise

Ensures optimum utilization of retail space

Reduces product search time for the customer

Reinforces the marketing communication of the outlet and influence the service
quality experience

Physical Surroundings
Fixtures, décor & signage

Placing signs

Uniforms or similar attires for employees

Colour & Lighting

Background music

Impact of Retail Unit Environment

43
 Pleasure – Displeasure: this Affectual reaction of shopppers in the environment.
This entails whether shoppers have perceived the environment as enjoyable or
unenjoyable.

Arousal: This assesses the extent to which the environment stimulates the
shoppers in a particuler environment.

Dominance: This concern whethr customer feel dominant or submissive in the

service environment.

Key Components of Retail atmospherics

1. External atmospherics

Retail Store Entrance: this provides prospective customer access to the

retail outlet. Store entrance has to fulfil two important criteria- functional
and aesthetic.

Display Windows: display windows are very common features among

retailers dealing in garments and gift items.

Marquee / Sign Boards: painted or neon light displaying the store name
alone or mixed with trade mark and other informathion at the store front or
entrance.

Parking Facilities: parking facilities plays a important role in the success

of retail firm.

2. Internal atmospherics

Store interior: conventional retailers design their store in ways that

produce specific emotional effect on shoppers, which in turn influence
their shopping behaviour in favour of the retail store.

Music: this also influence the customers.

Lighting: lighting arrangement adds significant meaning to the entire retail

store atmosphare.

Signage: visual cues meet most of the communicationneeds of customer in

the shopping centers and retail stores.

3. Store layout

Grid

44
Free form

Racetrack

45
 Storied

4. Visual merchandising

Product Line

Customer profile

Level of competition

Components of display
Wall Displays

Bulk Dump Displays

Display Products

Supplies & equipment

Promotional items

Lighting Fixtures

Signage

46
FINDINGS AND DATA ANALYSIS

47
 FINDINGS

Section1: Impulse buying

1. I go shopping to change my mood.

Strongly agree 20
Agree 12
Nutral 10
Disagree 35
Strongly disagree 23

35

23
20

12
10

Strongly agree Agree Nutral Disagree Strongly disagree

48
 2. I feel a sense of excitement when I make an impulse purchase.

Strongly agree 12
Agree 9
Nutral 14
Disagree 37
Strongly disagree 28
37

28

14
12
9

Strongly agree Agree Nutral Disagree Strongly disagree

49
 3. I have difficulty controlling my urge to buy when I see a good offer.

Strongly agree 22
Agree 12
Nutral 23
Disagree 18
Strongly disagree 25

25
23
22

18

12

Strongly agree Agree Nutral Disagree Strongly disagree

50
 4. When I see a good deal, I tend to buy more than that I intended to buy.

Strongly agree 16
Agree 18
Nutral 13
Disagree 34
Strongly disagree 19

34

19
18
16
13

Strongly agree Agree Nutral Disagree Strongly disagree

51
Section2: Influence of window display

5. I tend to enter a store when I am attracted by an eyecatching window display.

Strongly agree 15
Agree 35
Nutral 12
Disagree 18
Strongly disagree 20

35

20
18
15
12

Strongly agree Agree Nutral Disagree Strongly disagree

52
 6. I feel compelled to enter the store when I see an interesting window display.

Strongly agree 16
Agree 30
Nutral 18
Disagree 22
Strongly disagree 14

30

22

18
16
14

Strongly agree Agree Nutral Disagree Strongly disagree

53
 7. I tend to choose which store to shop in depending on eye-catching window
displays.

Strongly agree 24
Agree 12
Nutral 8
Disagree 30
Strongly disagree 26

30

26
24

12

Strongly agree Agree Nutral Disagree Strongly disagree

54
Section3: Influence of in-store form/mannequin display

8. I get an idea of what I want to buy after looking through in-store form/mannequin
displays.

Strongly agree 12
Agree 8
Nutral 28
Disagree 26
Strongly disagree 26
28
26 26

12

Strongly agree Agree Nutral Disagree Strongly disagree

55
 9. When I see clothing featuring a new style or design on display, I tend to buy it.

Strongly agree 24
Agree 18
Nutral 12
Disagree 24
Strongly disagree 22

24 24
22

18

12

Strongly agree Agree Nutral Disagree Strongly disagree

56
 10. When I see clothing that I like on in-store form/mannequin display, I tend to buy
it.

Strongly agree 12
Agree 28
Nutral 12
Disagree 24
Strongly disagree 24
28

24 24

12 12

Strongly agree Agree Nutral Disagree Strongly disagree

57
 11. I tend to rely on store displays when I make a decision to purchase clothing.

Strongly agree 34
Agree 28
Nutral 12
Disagree 12
Strongly disagree 14

34

28

14
12 12

Strongly agree Agree Nutral Disagree Strongly disagree

58
Section4: Influence of floor merchandising

12. When I see clothing that catches my eye I tend to try it on without looking
through the whole section.

Strongly agree 24
Agree 12
Nutral 8
Disagree 30
Strongly disagree 26

Strongly disagree 26

Disagree 30

Nutral 8

Agree 12

Strongly agree 24

59
 13. When I walk along the isle, I tend to look through the clothing close to me.

Strongly agree 24
Agree 18
Nutral 12
Disagree 24
Strongly disagree 22

Strongly disagree 22

Disagree 24

Nutral 12

Agree 18

Strongly agree 24

60
 14. I tend to try on clothing that catches my eye when I pass by.

Strongly agree 20
Agree 12
Nutral 10
Disagree 35
Strongly disagree 23

Strongly disagree 23

Disagree 35

Nutral 10

Agree 12

Strongly agree 20

61
Section5: Influence of promotional signage

15. If I see an interesting promotional offer (reduced price, sales promotion, and etc.)
on in-store signs, I tend to buy.

Strongly agree 18
Agree 12
Nutral 34
Disagree 12
Strongly disagree 26

Strongly disagree 26

Disagree 12

Nutral 34

Agree 12

Strongly agree 18

62
 16. Sale/clearance signs entice me to look through the clothing.

Strongly agree 24
Agree 18
Nutral 12
Disagree 24
Strongly disagree 22

Strongly disagree 22

Disagree 24

Nutral 12

Agree 18

Strongly agree 24

63
 17. When I see a special promotion sign, I go to look at that clothing.

Strongly agree 20
Agree 12
Nutral 10
Disagree 35
Strongly disagree 23

Strongly disagree 23

Disagree 35

Nutral 10

Agree 12

Strongly agree 20

64
 18. I am more likely to make an unintended purchase if the clothing has a sale or
clearance sign.

Strongly agree 24
Agree 12
Nutral 8
Disagree 30
Strongly disagree 26

Strongly disagree 26

Disagree 30

Nutral 8

Agree 12

Strongly agree 24

65
 Interpritation of data from dealer
1. Do you have a store layout plan
Yes No

30%

70%

66
2. How do you plan the store layout
Category/department Theme Item Supplier

10%
20%

40%

30%

67
3. What is the best way of marketing your business? ( Prioritise in order &
frequency)
Group Windows Front of store Customer Database
Instore Centre activities External advertising Loyalty Program

9% 9%

9%

18%

18%

18%
9%
9%

68
4. Do you follow any marketing strategy to atract customers
Yes No

40%

60%

69
5. Do you think that the customers are atracted towards display of new
arivals
Yes No

30%

70%

70
6. How you plan for your shop layout and display

Self Consulting with experts Pre defined by franchiser

30%

50%

20%

71
CONCLUSION AND INTERPRETATION

72
 CONCLUSION AND INTERPRITATION

Pearson correlation tests were conducted to see the correlations between the independent
variable and dependent variables. In addition to the Pearson correlation test, a simple
bivariate analysis, a multiple regression analysis was conducted for the hypotheses testing
using impulse buying tendency as a dependent variable and each visual merchandising
variable as predictors in order to see if there is relationships that were uncovered in a
multiple context and to determine the relative importance of the various type of
influences on college students’ impulse buying behavior. Hypothesis 1 was designed to
test whether or not there was a significant relationship between college students’ impulse
buying behavior and window display. Hypothesis 2 was constructed to determine whether
or not there was a significant relationship between college students’ impulse buying
behavior and in-store form/mannequin display. Hypothesis 3 was prepared to test whether
or not there was a significant relationship between college students’ impulse buying
behavior and floor merchandising. Hypothesis 4 was designed to determine whether or
not there was a significant relationship between college students’ impulse buying
behavior and any type of in-store promotional signage. Impulse buying is a sudden and
immediate purchase with no pre-shopping intentions either to buy the specific product or
to fulfill a specific buying task (Rook, 1987). Researchers have attempted to determine if
consumers’ who frequently engage in impulse buying behavior have some common
personality traits. This study further investigated some external factors that influence
impulse buying behavior. In attempt to examine this relationship, this study primarily
tried to explain the relationship between college students’ impulse buying behavior and
various types of visual merchandising. An important finding of this study was that visual
merchandising practices certainly influence college students’ impulse buying behavior.
The results proved that there were significant relationships between college students’
impulse buying behavior and in-store form/mannequin display and promotional signage.
Even though the window display and floor merchandising did not appear to significantly
lead to college students’ impulse buying behavior, the results still suggested that these
variables and consumers’ impulse buying behavior are significantly correlated. It can be

73
agreed that all four types of visual merchandising (i.e., window display, in-store
form/mannequin display, floor merchandising, and promotional signage) are significantly
interrelated and that relationship generates the influences on consumers’ impulse buying
behavior. A significant contribution of the present study is its elucidation of the
relationship between impulse buying and visual merchandising, which has been neglected
in academic research (Buttle, 1988). Despite the utilization of visual merchandising to
improve desirability of products and to encourage consumers’ buying behavior, a dearth
of research exists that investigates its influence on consumer buying behavior. The result
of the present study proves that there is a pivotal relationship between college students’
impulse buying behaviors and two type of visual merchandising practices: in-store
form/mannequin display and promotional signage. When consumers are exposed to these
visual stimuli, they more likely make purchase decisions on impulse. This suggests that
these visual merchandising practices, serving as stimuli that provoke a desire that
ultimately motivates a consumer to make an unplanned purchase decision upon entering
the store, significantly influence consumers’ impulse buying behaviors. In-store browsing
appears to be positively affected by consumers’ impulse buying tendency, and in turn,
has a positive impact on consumers’ positive feelings and impulse buying urges (Beatty
& Ferrell, 1998). Despite the importance of this relationship, visual merchandising,
which was relevant of browsing, has received minimal attention from researchers. This
study showed usefulness of visual merchandising in understanding impulse buying.

74
RECOMMENDATION

75
 RECOMMENDATION

Impulse buying occurs when a consumer experiences a sudden, often powerful and
persistent urge to buy something immediately, and the impulse to buy is hedonically
complex (Rook, 1987). Babin et al (1994) further asserted the hedonic value of shopping
suggesting that it reflects shopping’s potential entertainment and emotional worth. It has
been suggested that browsing, or shopping without specific intent, may be more
important than the actual acquisition of products and can provide a pleasurable shopping
experience (Maclnnis & Price, 1987; Sherry, 1990). Therefore, in addition to exposing
consumers to stimuli, such as retail settings, browsing tends to produce positive feelings
for many shoppers. These positive feelings, produced by browsing, play a role as positive
affects to encourage consumers’ impulse buying behavior. Retail setting, such as visual
merchandising, therefore, can influence consumers’ impulse buying by providing
information or reminding needs as well as producing positive feelings. At the stages of
the impulse buying process, retailers can attempt to provoke consumers’ desire for the
products, and the awareness of the products, which can satisfy the desire, can be achieved
by browsing and being exposed to the stimuli, such as visual merchandising. The way in
which merchandise will eventually be displayed and promoted at the store level is an
important consideration in the strategic marketing/merchandising plan. The findings of
this study provided information concerning the influence of visual merchandising on
consumers’ impulse buying behavior. The result signified importance of visual
merchandising influences on impulse buying behavior. Since in-store form/mannequin
display and promotional signage significantly influence college students’ impulse buying
behavior, retailers should continuously reinforce usage of instore.

76
LIMITATION OF THE STUDY

77
 LIMITATIONS

Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.

1. The research was conducted in a very small area.

2. Time factor was also important for me. I had only 60 days to complete my
research, for which a full-fledged report was insufficient for me.
3. The respondents filled the questionnaire mostly in careless manner, so it
was difficult to make them hold for time.
4. The sample size is also very small which represent my research on
behavior

My study is not recognizable in whole INDIA as well as outside Delhi due to

the above limitations and less area coverage.

78
REFERENCES

79
 REFERENCES

Books

1. Marketing management: analysis, planning, implementation, and control

by Philip Kotler - Business & Economics - 1988

2. Marketing Management by Philip Kotler, Kevin Keller - Business &

Economics - 2008

3. Research methodology: a step-by-step guide for beginners by Ranjit

Kumar - Social Science - 2005

4. Research methodology by Douglas K. Detterman - Psychology - 1985

Web sources

1. www.managementparadise.com

80
ANNEXURE

81
 QUESTIONNAIRE

For Customer

Section1: Impulse buying

19. I go shopping to change my mood.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

20. I feel a sense of excitement when I make an impulse purchase.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

21. I have difficulty controlling my urge to buy when I see a good offer.

Strongly agree

82
 Agree
Nutral
Disagree
Strongly disagree

22. When I see a good deal, I tend to buy more than that I intended to buy.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

Section2: Influence of window display

23. I tend to enter a store when I am attracted by an eyecatching window display.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

24. I feel compelled to enter the store when I see an interesting window display.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

25. I tend to choose which store to shop in depending on eye-catching window

displays.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

Section3: Influence of in-store form/mannequin display

83
 26. I get an idea of what I want to buy after looking through in-store form/mannequin
displays.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

27. When I see clothing featuring a new style or design on display, I tend to buy it.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

28. When I see clothing that I like on in-store form/mannequin display, I tend to buy
it.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

29. I tend to rely on store displays when I make a decision to purchase clothing.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

Section4: Influence of floor merchandising

30. When I see clothing that catches my eye I tend to try it on without looking
through the whole section.

Strongly agree
Agree

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 Nutral
Disagree
Strongly disagree

31. When I walk along the isle, I tend to look through the clothing close to me.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

32. I tend to try on clothing that catches my eye when I pass by.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

Section5: Influence of promotional signage

33. If I see an interesting promotional offer (reduced price, sales promotion, and etc.)
on in-store signs, I tend to buy.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

34. Sale/clearance signs entice me to look through the clothing.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

35. When I see a special promotion sign, I go to look at that clothing.

Strongly agree

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Agree
Nutral
Disagree
Strongly disagree

36. I am more likely to make an unintended purchase if the clothing has a sale or
clearance sign.

Strongly agree
Agree
Nutral
Disagree
Strongly disagree

For dealers

1. Do you have a store layout plan

 Yes
 No

2. How do you plan the store layout

• Category/department
• Theme
• Item
• Supplier

3. What is the best way of marketing your business? ( Prioritise in order &
frequency)
• Group
• Windows
• Front of store
• Customer Database
• Instore
• Centre activities
• External advertising
• Loyalty Program

4. Do you follow any marketing strategy to atract customers

 Yes
 No
5. Do you think that the customers are atracted towards display of new

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arivals
 Yes
 No
6. How you plan for your shop layout and display
 Self
 Consulting with experts
 Pre defined by franchiser

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