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org © 2018 IJCRT | Volume 6, Issue 1 January 2018 | ISSN: 2320-2882

The Impact of Visual Merchandising on Consumer

Impulsive Buying Behaviour
*Manas Dixit
**Prof.(Dr.)V.B.Singh

Abstract:
Impulse buying has been considered a pervasive and distinctive phenomenon in the American lifestyle and
has been receiving increasing attention from consumer researchers. The retailers today are using the visual
merchandising tool to differentiate themselves from their competitors and to be a prominent leader in the
market to attract the customers. Visual Merchandising is the presentation of merchandise as well as a
store in order to attract customers. It is an attractive way and an eye-catching technique to tell customers
what the store stands for and offers to its potential customers. The retailers today are using the merchandising
tool to differentiate themselves from other competitors and to be prominent in the market and attract the
customers. The main purpose of this research study is to understand visual merchandising and its impact
on consumer buying behavior. This study was conducted to test how the visual merchandising and outlook
factors impact store image and customer buying behavior. It is found that window display, fixture, signage,
mannequin, colors and lighting were significantly associated with consumer buying behavior. In order to
stand out in the increasing competition, it is important that retailers design their store and present it in a
creative and eye-catching manner. Greater concern should be given to the product displayed in windows
and on mannequins as they are drivers of store visits.

Keywords:Visual merchandising, consumer buying behavior, windows display, mannequin, fixtures, signage,
colors and lighting.

*Research Scholar from Shri Venkateshwara University, Gajroula

** Director, Asian Institute of Management & Higher Education, Kanpur & Research Guide (India).

1.Introduction
Visual merchandising, or visual presentation, is the means to communicate a store/company’s
fashion value and quality image to prospective customers. The purpose of visual merchandising is to educate
the customer, to enhance the store/company’s image, and to encourage multiple sales by showing apparel
together with accessories. Therefore, each store/company tries to build and enhance its image and concept
through visual presentations, which appeal to shoppers and ultimately transform them into customers by
building brand loyalty and encouraging customers’ buying behaviors. Visual merchandizing is the
presentation of a store and its merchandise in such a manner that will attract the attention of potential
customers. It aims to assist the store owner, sales manager and staff to meet their objectives by increasing the
average sales per customer. This research study provides an overview of the many aspects of visual
merchandising impacting on today‟s traders and retailers. The visual merchandising is purely marketing
based terminology and represents one of the most important marketing tools and represents the most direct
means of communication to the product which means that any promotional signage like billboards,
banners, posters, pamphlets, shop boards, shelf markers and hand bills of any company, shop or brand
which customer can see or visualize during his visit to the market or during shopping.

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Once customers walk in, it is but imperative that he/she enjoys the first encounter with the store. After
all, repeat visits will only happen if a customer’s first visit is a memorable one. The logical arrangement
of counters, with clear passageways allows for easy access to merchandise. A great deal of research has
been undertaken on the impact of visual merchandising on a customer’s purchase behavior. The study
seeks to understand how effective visual merchandising will be in influencing buying behavior, increase
sales and improve the overall image of a store.

The use and manipulation of attractive sales displays and retail floor plans to engage customers and
boost sales activity in visual merchandising, the products being sold are typically displayed in such a way to
attract customers from the intended market by drawing attention to the products best features and benefits.
Visual merchandising deals with the display of products. A good display makes people walk into the store
and also helps in making them feel like taking a look around.

It not only communicates the stores image, but also reinforces the stores advertising efforts and
encourages impulse buying by the customer. Visual merchandising is a major factor often overlooked in the
success or failure of a retail store. Visual merchandising plays a very important role in attracting customers of
different sections to buy the goods. The basic objective of visual merchandising is a desire to attract
customers to a place of business in order to sell the merchandise. This study focused on six of the many
components of visual merchandising strategies that were more pertinent to small apparel businesses and
how applying these strategies may benefit small apparel businesses: 1) mannequin 2) Color& Lighting; 4)
signage 5) Fixtures; and 6) Window Display.

2.Literature Review
Bell and Ternus (1952) state that the factors of visual merchandising, such as window and interior
display, store layouts &interior design, promotional signing, fixture layouts, displaying merchandise on
walls and fixtures. Window displays plays the most vital visual communication tool which helps to build a
store image as stated by Lea- Greenwood (1953).

Edwards and Shackley (1954) reported that sales increase when window displays are used, especially for new
products, and well- known brands. Gerard (1957) states that in general, warm colors (red and yellow) have
produced opposite psychological effects than cool colors (blue and green), which are opposite on the color
spectrum. For example, red or warm colors have been found to be associated with increased blood pressure,
respiratory rate, eye blink frequency (Cited in: Bellizzi and Hite, 1959).

Bellizzi et al. (1958) investigated the effects of color in retail store design. The results indicated that
despite color preferences, subjects were physically drawn to warm color (yellow and red) environments, but
they paradoxically found red retail environments to be generally ungraceful, negative, tense, and less
attractive than cool color retail (green and blue) environments (Cited in: Bellizzi and Hite, 1992). Mehrabian
(1976) “believed that lighting was an important factor in the environment‟s impact on individuals because
brightly lit rooms are more absorbing than dimly lit ones”. (Cited in: Summers and Herbert, 1993) Areni and
Kim (1994) found that consumers examined and observed significantly more items under „bright‟ lighting
conditions than under soft lighting conditions. With reference to the Illuminating Engineering Society of
North America (IES) Handbook states that the primary goals common in the lighting of merchandise are
to attract the consumer, to initiate purchases, and to facilitate the completion of the sale‟‟ (Rea, 1993). The
IES suggests that when illuminating merchandising spaces, lighting designers should create a pleasant,
absorbing and secure environment to do business‟‟ (Rea, 1993, p. 591). Shoppers are highly
supersensitive to the way a store is lit.

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Visual merchandising is the presentation of a store and its merchandise to the customer through the
team work of the store’s advertising, display, special events, fashion coordination, and
merchandising departments in order to sell the goods and services offered by the store (Mills et al., 1995, p.1).
In 1998, Pegler argued, Visual merchandising is no longer just a matter of making merchandise look attractive
for the customer. It is the actual selling of merchandise through a visual medium.

Visual merchandising includes both store exterior and interior. The store exterior includes window
display, façade and retail premises. Window display is a medium which creates first impression in
customer‟s mind to enter the store. Physical attractiveness of the store impresses customers highly for
store selection (Omar, O. 1999).

Visual communication have long been considered important aspect of retailing by Practitioners and
academic alike (McGoldrick, 1990, 2002).Visual merchandising is an Activity, which coordinates
effective merchandising selection with effective merchandising Display (Wolters and White, 1987). In this
context, it will be affecting to a positive Psychological or behavioral outcome, ultimately leading to purchase.
McGoldrick, 1999; Marsh, 1999 Retail store elements such as color, lighting and visual Merchandising have
always been considered as having an 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 Bell and
Ternus (2002) asserted that visual merchandising, once called „display,‟ has evolved from its origins as a
store‟s decorative arts department to its current status as a sales-supportive entity, which impacts store design,
store signing, departmental merchandise placement and display, store atmospherics, and store image. Eroglu
(2003), argues that companies and retailers are now dealing with more informed consumers who prefer value,
and interested in stores that make efforts to create value through different visual merchandising tools, and
merchandising strategies. These tools include the concept of “Atmospherics” and creation of “atmospheric
cues” alongside of product. Atmospherics is referred to as an effort to devise the buying environment in a
way that it arouses specific emotions that enhances the probability of purchase.

Groeppel-Klein (2005), studied different empirical studies and found that the store atmosphere has a
strong influence on consumer behavior, and store image. The study further concluded considering the
empirical studies that the store atmosphere has a strong influence on consumer consideration of the
merchandise and arouse consumer reaction towards the store. Impulse buying and store display are not
correlated. Floor merchandising is also correlated with impulse buying.

Bashar and Irshad, (2012) studied the impact of form display, window display,promotional signage
and floor merchandising on impulse buying behavior by taking 250 Indian customers. Pearson correlatio n
analysis was used to conduct this study. The Findings sguggested that window display, floor merchandising
are positively correlated with impulse buying behavior of consumer. Store display is not correlated with the
impulse buying. Overall this study showed that Visual merchandising has a greater impact on the
consumer buying behavior.

Park (2014), argued that the proper and effective visual merchandising including illumination helps in
differentiating the retail brand, contribute to brand preference and encourage the brand preference. Pillai
(2014) found that customers are influenced by attractive windows displays, proper store layout, and
appealing visual merchandising themes. The study recommended the proper utilization of visual

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merchandising as an effective tool of converting potential customers into real customers. The study further
concluded that the most important aspect that consumers value most in visual merchandising are proper
lighting and attractive display themes.

3.Research Methodology
Primary Objective
To study the impact of visual merchandising on the buying behavior and the buying decisions of the customers.
Secondary Objectives
 To explore the impact of layout in a retail store on customer buying Behavior.
 To find the impact of window display, mannequin display, fixtures, signage, colors and lighting on
consumer impulse buying.
 To explore if buying choices are made before reaching the store or based on visual displays in the store.
 To analyze whether customers can recall the products displayed by visual merchandising or not.

Data Collection
Questionnaire designed for the purpose has been used to collect data. The researcher has adopted the
convenient sampling method for his study. Likert scaling is being adopted to measure the “impact of visual
merchandising on consumer buying behavior”. Five point Likert scale has been used for this study.
Tools Used
 Reliability analysis
 Factor analysis
 Multiple regression

Sample Size
A sample of 120 customers has been taken in order to carry out the study.

Sample Elements
The sample elements will consist of people who visit and shop from Reliance Trends Trichy.

4.Data Analysis And Interpretation

Descriptive Statistics for Demographics
Demographics Frequency Valid Frequency Percent(%)
Gender Male 15 12.7
Female 101 84.8
Age 18 3 2.5
19 23 19.4
20 37 30.8
21 27 22.4
22-25 14 11.8
26-55 5 4.1
Residence Residence Hall 19 15.6
Apartment 66 55.3
House 33 27.8
Living Arrangement Alone 5 4.2
Roommate 103 86.5
Parents 3 2.5
Spouse 3 2.1
Disposable income Under 20 5 3.6
(in'000) 20-39 12 9.7
40-59 23 18.9

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60-79 23 19
80-99 8 6.7
100-119 11 5
Over 120 9 7
Job Status Unemployed 55 46
Part-time 54 45.6
Full-time 7 5.5

Descriptive Statistics for Variables

Variables Number of Cases Mean Standard Deviation
Impulse Buying Tendency 119 3.32 0.7944
Influence of Window Display 119 3.35 0.9486
Influence of Form/Mannequin Display 119 2.62 0.7673
Influence of Floor Merchandising 119 3.49 0.7826
Influence of Promotional Signage 119 3.89 0.7654
Scale values: Never =1 to Frequently =5

Reliability
Cronbach's Alpha N of Items
0.779 25

Inference
The alpha values were calculated to assess the internal consistency reliabilities of the Questionnaire.
For variables, the value of 0.779 indicated adequate reliability.
Factor Analysis KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.532
Bartlett's Test of Sphericity Approx. Chi-Square 1626.069
Df 276
Sig. 0

Inference
The significance level (.000) gives the result of the test. The Kaiser-Meyer-Olkin Measures of
samplingadequacy is 0.532 greater than the expected value of 0.5 and hence it is feasible to run factor
analysis.
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared
Loadings Loadings
Total % of Cumulative Total % of Cumulative Total % of Cumulative
variance % variance % variance %
1 4.653 19.389 19.389 4.653 19.389 19.389 2.956 12.318 12.318
2 2.868 11.952 31.341 2.868 11.952 31.341 2.585 10.77 23.088
3 2.46 10.248 41.589 2.46 10.248 41.589 2.386 9.942 33.029
4 2.163 9.011 50.6 2.163 9.011 50.6 2.322 9.673 42.702
5 1.561 6.506 57.106 1.561 6.506 57.106 1.95 8.125 50.828
6 1.472 6.133 63.239 1.472 6.133 63.239 1.88 7.835 58.663
7 1.359 5.663 68.903 1.359 5.663 68.903 1.779 7.412 66.074
8 1.274 5.307 74.209 1.274 5.307 74.209 1.592 6.632 72.707
9 1.151 4.798 79.007 1.151 4.798 79.007 1.512 6.3 79.007
10 0.829 3.454 82.461
11 0.731 3.046 85.508
12 0.652 2.716 88.224

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13 0.505 2.102 90.326
14 0.439 1.829 92.155
15 0.347 1.445 93.6
16 0.326 1.359 94.958
17 0.257 1.072 96.03
18 0.201 0.839 96.869
19 0.19 0.79 97.659
20 0.174 0.727 98.385
21 0.146 0.608 98.993
22 0.107 0.447 99.439
23 0.07 0.291 99.731
24 0.065 0.269 100

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Rotated Component Matrix (a)

Component
1 2 3 4 5 6 7 8 9
when i visiting stores do pay attention to the 0.69
display 3
creative windows displays attract me into a 0.552
store
frequent change of window display help me to 0.58
learn about the new seasonal merchandises
in relinance trends
i think due to diplays it is easy to shop in 0.879
reliance trends
mannequin display influence my buying 0.707
behavior
i feel manneuin display increase my interest in 0.632
product
i ever bought an item of clothing or an outfit i 0.82
have seen in a mannequin display
wheni see clothing feautures a new design or 0.639
style on mannequin display, i tend to buy it.
i feel the design and layout of store influence 0.78
my overall shopping experience 3
i like the arrangement of products in reliance 0.655
trends
it is easy to get which product i want with in 0.891
the short time
when i waiting for payment, i would pay 0.526
attention to
product item placed near the counter
signage increase me awareness towards 0.83
highlighted products
offers are clearly informed through displays in 0.88
reliance trends
the displays and promotional offers informed 0.529 0.503
in the store attracts me
when i see a special promotion sign, i go to 0.912
look at that section
product items are placed according to color 0.691
could allow me to find them more easily.
I always pay attention to things covered with
strong lighting.
the tone of colors of fashion priduct could 0.863
affect my preference towards it.
the use of lights in different brightness 0.58
would stimulate my preference towards
products.
i always prefer the reliace trends. 0.707
I always refer my friends to purchase in 0.562
reliance trends.
if the collections are less in reliance trends, i 0.848
will wait for some days for the same.
I feel good while shopping in reliance trends 0.867
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
A Rotation converged in 18 iterations.

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Inference
All the 24 variables in the questionnaire are reduced to 9 common factors. The first factor
contributes to 12.318 percent variance in the total variance; the second factor contributes to 10.770 percent
variance in the total variance; The third factor contributes to 9.942 percent variance in the total variance;
The fourth factor contributes to 9.673 percent variance in the total variance; The fifth factor contributes to
8.125 percent variance in the total variance; The sixth factor contributes to 7.835 percent variance in the
total variance; The seventh factor contributes to 7.412 percent variance in the total variance; The eighth
factor contributes to 6.632 percent variance in the total variance; The ninth factor contributes to 6.300
percent variance in the total variance.

Table
R R Std. Error of the
Model Square Adjusted R Square Estimate
.785(a)
1 0.616 0.584 0.2548

a Predictors: (Constant), REGR factor score 9 for analysis 1, REGR factor score 8 for
analysis 1, REGR factor score 7 for analysis 1, REGR factor score 6 for analysis 1, REGR
factor score 5 for analysis 1, REGR factor score 4 for analysis 1, REGR factor score 3 for
analysis 1, REGR factor score 2 for analysis 1, REGR factor score 1 for analysis 1 .

Inference
8 for analysis 1, REGR
5 for analysis 1, REGR 2 for analysis 1, REGR
The above model summary table shows R-Square for this model is .616. This means that
61.6 percent of the variation in overall satisfaction with visual merchandising (depende
Variable ) can be explained fromcomponents.
ANOVA
Model Sum of Square df Mean Square F Sig.
1 Regression 11.45 9 1.272 19.596 .000(a)
Residual 7.142 110 0.065
Total 18.592 119
a Predictors: (Constant), REGR factor score9 for analysis 1, REGR factor score 8 for Analysis
1,REGR
factor score 7 for analysis 1, REGR factor score 6 for analysis 1, REGR factor score 5 for analysis
1,REGR
factor score 4 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 2for
analysis1,REGR
factor score 1 for analysis 1
b Dependent Variable: visual merchandising promotes my overall shopping experience.

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Model Unstandardized Standardized T Sig.

Coefficients Coefficients
B Std. Error Beta
1 (Constant) 4.192 0.023 180.21 0
REGR factor score 1 for analysis 1 0.14 0.023 0.354 5.998 0
REGR factor score 2 for analysis 1 0.163 0.023 0.411 6.959 0
REGR factor score 3 for analysis 1 0.077 0.023 0.195 3.296 0.001
REGR factor score 4 for analysis 1 0.12 0.023 0.304 5.148 0
REGR factor score 5 for analysis 1 0.032 0.023 0.081 1.373 0.172
REGR factor score 6 for analysis 1 0.151 0.023 0.382 6.464 0
REGR factor score 7 for analysis 1 0.032 0.023 0.081 1.369 0.174
REGR factor score 8 for analysis 1 0.012 0.023 0.029 0.497 0.62
REGR factor score 9 for analysis 1 -0.069 0.023 -0.175 -2.967 0.004

The above model summary table shows R-Square for this model is .616. This means that 61.6 percent of
the variation in overall satisfaction with visual merchandising (depende Variable ) can be explained
fromcomponents.

Inference
To determine if one or more of the independent variables are strong and significant predictors of overall
fulfillment of visual merchandising, we examine the information in the coefficient table. From the above
9 components all of them were statistically significant. The standardized coefficient beta column reveals,
Factor score1 (.354), which is significant (.000), factor score 2(.411), which is significant (.000), factor
score3 (.195) which is significant (.001), factor score4 (.304) which is significant (.000), factor score5
(.081) which is significant (.172), Factor score6 (.382), which is significant (.000), factor score 7(.081),
which is significant (.174), factor score 8 (0.029) which is significant (.620), factor score 9 (-.175) which is
significant (.004).

5. Findings
The variables are grouped into 9 factors from the study.
Factor Component 1
 Frequent change of window display help me to learn about the new seasonal merchandises in
Reliance trends
 Signage increase me awareness towards highlighted products
 Offers are clearly informed through displays in reliance trends
 The displays and promotional offers informed in the store attracts me
Factor Component 2
 Creative windows displays attract me into a store Mannequin display influence my buying behavior
 I ever bought an item of clothing or an outfit I have seen in a mannequin display
 When I see clothing features a new design or style on mannequin display, i tend to buy it.
Factor Component 3
 It is easy to get which product i want with in the short time
 The displays and promotional offers informed in the store attracts me  I always refer my friends to
purchase in reliance trends.
Factor Component 4
 I like the arrangement of products in reliance trends
 When I waiting for payment, I would pay attention to product item placed near the counter  The

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tone of colors of fashion product could affect my preference towards it.

Factor Component 5
 I always prefer the Reliance trends.
 If the collections are less in reliance trends, I will wait for some days for the same.
Factor Component 6
 Product items are placed according to color could allow me to find them more easily.
 The use of lights in different brightness would stimulate my preference towards products.
 I feel good while shopping in reliance trends
Factor Component 7
 I think due to displays it is easy to shop in reliance trends
Factor Component 8
 When I visiting stores do pay attention to the display
 I feel the design and layout of store influence my overall shopping experience
Factor Component 9
 When I see a special promotion sign, I go to look at that section
Reliability
 The alpha values were calculated to assess the internal consistency reliabilities of the Questionnaire.
For variables, the value of 0.779 indicated adequate reliability.
Regression
 R-Square value is .616. This means that 61.6 percent of the variation in overall fulfillment of
visual merchandising (dependent variable) can be explained from 9 components.
 There is significant relationship between overall satisfaction of visual merchandising and reduced
factor components.

Limitations of the Study:

 The study is confined just to one particular store, Reliance Trends Trichy.
The study is not a longitudinal study and is confined to only one point of time, when the survey
was undertaken.
 The small sample size of the study, which might bring in the question of statistical validity of the
results.

6.Conclusion
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. 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 young consumers’
impulse buying behavior and various types of visual merchandising. An important finding of this study
was that visual merchandising practices certainly influence young consumers’ impulse buying behavior.
The results proved that there were significant relationships between young consumers’ 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 young consumers’ impulse buying
behavior, the results still suggested that these variables and consumers’ impulse buying behavior are
significantly correlated. It can be agreed that all four types of visual merchandising (i.e., window display,

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in-store form/mannequin display, floor merchandising, and promotional signage) are significantly
interrelated and that relationship generates the influences on young consumers’ impulse buying behavior.
This study was conducted to test how the visual merchandising and outlook factors impact store image
and customer buying behavior. The main objective of this research was to identify the visual merchandising
factors that impact store image and further examining the relationship of the identified independent variables
of store layout and design, lighting, colors, mannequin, window display, promotional signage, product
presentation and in-store displays with the dependent variable that is store image and purchase intention.
The results show
that promotional signage play an important role in establishing a store image. The in-store signage and
product information displayed over the aisle and shelves help the retailers to attract customers and increase
sales. Visual merchandising plays an important role in building the store image. Firms focus on displays in
order to showcase the latest trends and the new arrivals. Majority of consumers respond to the in-store
signage more positively. They specially mentioned that signage help them to select precise products, reduce
the time utilized and feel comfortable during the shopping process. It is detected that most people are
attracted into a store to buy a product after looking at the shop's visual and mannequin displays. In case of
apparels, mannequin plays a great role giving customers an idea of what are the latest trends and the visual
appearance of the merchandise. Store window display is a great way to lure people into the store, as it gives
them a look at stuffs that they can assume to be present inside the store. They are also a great way to
highlight certain types of merchandise. Signage is cost-effective gear for conveying a message or informing
the customer about the merchandise available in the retail store. In-store displays are the major drivers to
purchase as they compel customers to view products creatively presented and displayed inside the outlet.

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