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Project on Visual Merchandising

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management project on visual merchandising

management project on visual merchandising

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  • can u mail this to hkay0502@gmail.com
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  • please mail it on meghakhatry88@gmail.com
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  • Really good project. Can anybody, please, mail it to khalimovanvar@gmail.com?
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  • sufiyan634@gmail.com plz mail it
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  • 1. A Project Submitted to the Faculty of the Punjab University In Partial Fulfillment for the Bachelors Degree of Business Administration 2009-10SUBMITTED TO: SUBMITTED BY:Prof. Renu Sharma Mahesh Gupta( Lect. In Commerce & B.B.A Final Year Management Deptt.) ROLL.NO.-15107000128 KAMLA LOHTIA SANATAM DHARAM COLLEGE LUDHIANA vi
  • 2. ACKNOWLEDGEMENT I feel immense pleasure to give the credit of my project work notonly to one individual as this work is an integrated effort of all thosewho are concerned with it. A teacher or a guide plays a great role to play in a field of researchand discovery. No research can be done without motivation, guidance,and inspiration. I take this opportunity to put my earnest thanks toMrs. Renu Sharma (Lect. in Commerce & Management Deptt.) whoinspired and guided me a lot while making this project. I am thankful to Mr. Rajesh Marwaha (HOD) for superbguidance, valuable inputs and encouraging attitude. Above all, thanks to almighty GOD for showing his blessing forthe accomplishment of the project. MAHESH GUPTA vii
  • 3. TABLE OF CONTENTS PageACKNOWLEDGEMENT................................................................................. Chapters: 1. INTRODUCTION ............................................................................ 1 Purpose/Objectives .......................................................................2 Rationale/Significance..................................................................3 Conceptual Definitions................................................................4-7 Conceptual Framework ............................................................8-13 Impulsive Buying ........................................................................ 14 Characteristics of Impulse Buying Behavior............................... 15 Normative Evaluations for Impulse Buying ............................... 16 Factors/Cues influencing Impulse Buying .............................17-18 Visual Merchandising .................................................................. 19 Visual Merchandising in Relation to Impulse Buying Behavior.20 2. REVIEW OF LITERATURE ........................................................22 3. METHODS AND PROCEDURES ..............................................23 Research Hypotheses.............................................................23-24 Operational Definitions of Variables .......................................... 25 Methodology ..........................................................................26-29 Limitations ................................................................................... 30 vii
  • 4. 4. ANALYSIS AND DISCUSSION OF FINDINGS ...................... 36 Descriptive Findings .................................................................... 37 Data Reduction and Reliability Test .....................................38-47 Analysis and Discussion of Hypotheses Findings.................48-50 5. CONCLUSIONS, LIMITATIONS, AND RECOMMENDATIONS .................................................................... 51 Conclusions ............................................................................52-53 Implications ................................................................................. 54 Recommendations for Future Research .................................... 56APPENDICES..........................................................................................57 A SAMPLE OF SURVEY....................................................................57-58 BIBLIOGRAPHY .................................................................................. 59 vii
  • 5. v
  • 6. CHAPTER 1 INTRODUCTION Today’s fierce competition and the similarity of merchandise forceeach segment of the fashion industry to utilize visual merchandising toimprove the desirability of products. Apparel retailers, especially, place moreimportance on visual merchandising to differentiate their offerings fromothers’. Researchers found that impulse buyers usually do not set out withthe specific purpose of visiting a certain store and purchasing a certain item;the behavior occurs after experiencing an urge to buy, and such behaviorsare influenced by internal states and environmental/external factors.Research findings suggest that impulse buying accounts for substantial salesacross a broad range of product categories. Since impulse buying is apervasive aspect of consumers’ behaviors and a focal point for strategicmarketing plans, it is worthwhile for retailers to understand factors withinthe retail setting that trigger consumers’ impulsive reactions. Retailers canhelp customers to find the right products through focused merchandising,intelligent store design and layout, and other visual merchandisingpractices, such as product displays, packaging, and signage. 1
  • 7. 1.1 Purpose/Objectives: Young consumer group have gained significant importance frommarketers as they have growing purchasing power; their money attitude alsohas been changing with relatively easy access to credit cards. Therefore, theconsumer behavior of an important sector of the young consumer group,college students, is worth to be researched. Retailers try to find variablesthat influence shoppers’ impulse buying urges and decisions and attempt tocontrol these influencing variables through strategic marketing andmerchandising activity. Based on the literature review, it is reasonable toexpect that visual merchandising, a common external factor that encouragesconsumers’ urge to buy, can affect consumers’ impulse buying decisions.The purpose of this research is to examine the relationship between collegestudents’ apparel impulse buying behaviors and common external factorsthat trigger impulse buying. External factors that the research will exam areattributes likely to be encountered in many retailing contexts, such as visualmerchandising. The research, therefore, will focus on effects of four types ofvisual merchandising on impulse buying behavior. The types of visualmerchandising used as predictors in this study are window display, in-storeform/mannequin display, floor merchandising and promotional signage. 2
  • 8. 1.2 Rationale/significance of the study: With increasing competition, retailers strive to ensure that theirstores are appealing to their target markets. As retailers are finding itincreasingly difficult to create a differential advantage on the basis ofmerchandise alone, the store itself plays an important role for marketdifferentiation. The correlation between consumers’ belief about thephysical attractiveness of a store and patronage intentions suggests that thevisual aspect of the store may be significant in relation to the consumers’choice of a store and buying behavior. Since many retailers use visualpresentation of the store/company’s offering in order to encouragecustomers’ buying behaviors, this fact was expected to be found in theconsumer and marketing literature. However, the literature does not includea coherent approach or provide significant coverage for this subject. If firstimpressions and appearance are important indicators of store image, thenstore window displays must play an important role in a consumer’s decisionwhether or not to enter the store. However, classifications of store imagecomponents in the literature are almost entirely related to the in-storemerchandise placement. Display communications, which frequently happento influence consumers’ buying behavior, are not considered. Buttle (1988) referred to visual merchandising as a neglected area infashion marketing research. This neglect does not signify that this area isunworthy of academic research, but may indicate that since visualmerchandising concerns perceptions of creativity, an area which is difficultto test; researchers may have difficulty in analyzing it meaningfully.Therefore, this study will provide information as to why visualmerchandising should be considered an important component of a strategicmarketing plan in support of sales increase and positive store/company 3
  • 9. image. This study will also provide insights to retailers about types of visualmerchandising that can influence consumers’ impulse buying behaviors.The way in which merchandise will eventually be displayed and promoted atthe store level is an important consideration in the buying function as wellas in the strategic marketing/merchandising plan.1.3 Conceptual Definitions: Conceptual definitions were adopted from the literature or created by theresearcher specifically for this study. External cues: In-store and façade level display correlated with situational environment that influences a customer’s buying decision. 4
  • 10. Floor merchandising: The arrangement of merchandiseaccording to plan-o-gram/zone-o-gram, in which merchandise ismade available for sale to customersForm/mannequin display: The presentation of merchandiseusing forms or mannequins in order to provoke customers’ interestand create the desire to buy.In-store display: A creative way of presenting merchandise withthe purpose of providing consumers with information about newproducts, fashion trends, or coordination tips in order to encouragecustomers’ urge to buy. For the purpose of this study, the followingtypes of in-store display were investigated: form/mannequindisplay, floor merchandising, and promotional signage. 5
  • 11. Internal cues: Emotional feelings and desires that influencecustomers’ buying decisions.Impulse buying: “Impulse buying is a sudden and immediatepurchase with no pre-shopping intentions either to buy the specificproduct category or to fulfill a specific buying task.Signage: Wording used either alone or in conjunction with in-store display to convey product or promotional information tocustomers with the purpose of informing and creating demand forthe merchandise. 6
  • 12. Visual merchandising: A way of presenting merchandiseeffectively to improve the desirability of a product and to influencea customer’s buying behavior.Window display: Any kind of visual presentation of merchandisein the façade level in order to attract attention and ultimately toenter the store. 7
  • 13. 1.4 Conceptual Framework: Impulse buying has been defined as a spontaneous, immediatepurchase without pre-shopping intentions either to buy a specific productcategory or to fulfill a specific buying task. The impulse buying behavioroccurs after experiencing an urge to buy and tends to be spontaneouswithout a lot of reflection. Since impulse buyers are not actively looking for acertain product and don’t have prior plans or intention to make a purchase,internal states and environmental/external factors can serve as cues totrigger their impulse behavior. 8
  • 14. ModelFollowing is the model of the consumer buying process (Figure 1) includingfive steps: 1. Need recognition, 2. Information search, 3. Alternative evaluation, 4. Purchase decision, and 5. Post-purchase evaluation.The buying process begins with a recognized need. This need recognitionmay come from an internal feeling or it may come from external stimuligenerating motivation to purchase. When consumers are motivated byidentifying needs, they start looking for information. Based on theinformation, consumers evaluate ways to fulfill the need. After evaluatingoptions, consumers may make a purchase. Finally, consumers formally orinformally evaluate the outcome of the purchase after buying a product. Thisstep involves consequences and satisfaction for the purchase; a consumerwho has positive experience may develop loyalty to the store where she/hepurchased. The process is repeated as consumers feel needs for products. 9
  • 15. Social Marketing Situational Physical Culture Price Surroundings Sub- Social Product culture Surroundings Time, task, Social Class Placement money Momentary Family Promotion Conditions Reference Group Fig 1: A model of consumer buying process This consumer buying process is influenced by social, marketing, and situationalFactors. Social influences reflect geographic and sociologic factors. Those can beculture, subculture, social class, and family that influence person’s behavior byproviding direct and indirect messages and feedback. Consumers are also influenced bytheir reference groups, the groups that influence the consumers’ thoughts, feelings, andactions. Marketing influences on the consumer buying process include the affect of themarketing mix, known as product, price, placement, and promotion, which influencethe consumer buying process at various stages. 10
  • 16. Consumers, in general, are influenced by characteristics of the situation,circumstances surrounding their shopping trip. Major situational influencesinclude the physical surroundings, social surroundings, time, task,monetary conditions, and momentary moods. The physical surroundingsthat influence buying behavior are observable features that include locationof the store, merchandise display, store interior/exterior design, and noiselevel of the store. The social surroundings of a situation are other people,their characteristics and roles, and the way they interact. The moods andcondition as well as the time, task, and monetary condition of a consumer atthe time of purchase influence their buying decision. Although useful inexplaining planned purchase situations, the model does not lend itself toexplaining the process of impulse buying. The buying behavior is classified as planned or unplanned. Accordingto this classification, planned buying behavior involves a time-consuming;where as unplanned buying refers to all purchases made without suchadvanced planning including impulse buying, which is distinguished by therelatively speedy decision-making encouraged by stimuli. Impulsepurchases are not the result of a specific search to satisfy a particularrequirement since the satisfaction may come from the act of shopping itself.Purchases are incidental to this speedy process although they may providesome kind of enjoyment. Therefore, several pre-purchase steps are entirelyskipped in the impulse buying process. Considering the nature of impulsebuying, which occurs in a short period of time without prior plans, has beenmodified for the purpose of this study to describe the impulse buyingprocess by omitting several steps, such as need recognition, informationsearch, and alternative evaluation, and reclassifying influencing factors(Figure 2). 11
  • 17. External Internal factors/cues: Factors/Cues: Window Mood/Need/ Display/ Desire/ In-store Form Hedonic Pleasure/ Display/ Floor Cognitive/ Merchandising/ Affective Promotional Evaluation Signage Figure 2: A model of impulse buying processUnlike the planned buying process, the impulse buying process startswith product awareness. Impulse buyers begin browsing without havingan intention to purchase a certain item or visiting a certain store. Asconsumers browse, they are exposed to the stimuli, which triggerscustomers’ urge to buy on impulse. When impulse buyers feel thedesire to buy, they make a purchase decision without searching forinformation or evaluating alternatives. 12
  • 18. At this stage of the impulse buying process, consumers feel anirresistible urge to buy regardless of their prior intention. Then, consumersmay experience positive or negative consequences by the post-purchaseevaluation after the purchase on impulse. In fact some consumers havereported dissatisfaction with a product, but maintain satisfaction that thepurchase was made. In this process, consumers are influenced by internal states andexternal factors that trigger their impulse purchase behavior. Since impulsebuyers do not set out with a specific goal to buy a certain product or visit acertain store, while browsing and being exposed to the stimuli, impulse buyersfeel the desire for the products by being aware of the products, and this desirecan be created by internal statement/mood or/and external stimuli. Theawareness of the products, which can satisfy the desire, can be achieved byattractive visual presentation of merchandise that provides informationregarding new products, fashion trends, or coordination tips. 13
  • 19. 1.5 Impulsive Buying:“Impulse buying has been considered a pervasive and distinctive phenomenonand has been receiving increasing attention from consumer researchers andtheorists. Despite the negative aspects of the impulse buying behavior frompast research, defining impulsive behavior as an irrational behavior, resultingfrom a lack of behavioral control impulse purchases account for substantialsales across a broad range of product categories. A study found that impulsepurchases represented between27% and 62% of all department storepurchases. Other research findings support this assertion revealing almost90% of respondents have made grocery purchases on impulse occasionally,and between 30% and 50% of all purchases can be classified by the buyersthemselves as impulse purchases.Early studies on impulse buying were more concerned with the definitionalissues distinguishing impulse buying from non-impulse buying and attemptedto classify the types of impulse buying into one of several sub-categories,rather than to understand impulse buying as a trait of consumer buyingbehavior. Therefore, this approach generated a theory that ignores thebehavioral motivations of impulse buying for a large variety of products and,instead, focuses on a small number of relatively inexpensive products.However, this type of approach did not provide sufficient explanations as towhy so many consumers appear to act on their buying impulse so frequently.Therefore, researchers began to re-focus attention on impulse buying behaviorand to investigate the behavioral motivations of impulse buying. The pervasiveness of impulse buying, even for relatively expensiveproducts, led researchers to look at impulse buying as an inherent individualtrait, rather than a response to inexpensive product offerings. Recently,researchers appear to agree that impulse buying involves a hedonic or 14
  • 20. affective component. Today’s research suggests that impulse buying behavioris much more complex than previously conceptualized; that this behaviorstems from the desire to satisfy multiple needs that underlie many types ofbuying behavior.1.6 Characteristics of impulse buyingbehavior: Impulse buying behavior is identified with descriptors such as aspontaneous, intense, exciting, urge to buy with the purchaser often ignoringthe consequences. While more recent research in this area discusses impulsebuying as a trait rather than as a classification of a purchase decision,researchers agree that consumers vary in their impulse-buying tendency.Without having prior information of a new product or intention to purchase acertain item, a consumer is exposed to stimuli, suggesting that a need can besatisfied through the purchase. There are several different types of internalstates and environmental/sensory stimuli that serve as cues for triggeringimpulse buying. Internal cues include respondents’ positive and negativefeeling states. Environmental/sensory cues encompass atmospheric cues inretail settings, marketer-controlled cues, and marketing mix stimuli. 15
  • 21. 1.7 Normative evaluations for impulse buyingbehavior:Past research shows that planned buying behavior results in accuratedecisions, but impulsive behavior results in decision errors, increasingpossibilities of negative consequences. These negative evaluations of impulsebuying behavior possibly stem from psychological studies of impulsivenessthat characterize impulsive behavior as a sign of immaturity resulting in a lackof behavioral control or as an irrational, risky, and wasteful behavior.However, some research on impulse buying behavior indicates that impulsebuyers do not consider their impulsive purchases as wrong and report evenfavorable evaluations of their behaviors. In the study of “Trait and normativeaspects of impulsive buying behavior”, a relatively small number ofrespondents (only 20%) reported feeling bad about their impulse buying, buta large number of respondents (4 1%) reported that they actually felt goodabout their impulse purchases. One explanation for this phenomenon is thatconsumers buy products for a variety of non-economic reasons, such as fun,fantasy, and social or emotional pleasure. Some consumers even see shoppingas retail therapy, as a way of getting over the stresses of a working day orsimply a fun day out supporting the hedonic modification for impulse buying. 16
  • 22. 1.8 Factors/Cues influencing impulse buying: Few recent studies investigated the factors that affect impulsebuying. Researchers have suggested that internal states andenvironmental/external factors can serve as cues to trigger consumers’impulse behavior to purchase. Research shows that situational factors havepractical and theoretical significance in that many decisions are made at thepoint-of-purchase as a reflection of “low involvement” decision-makingstrategies. The research on situational influence can be described asexamining the relationship among shopper characteristics and the features ofretailing or point-of-purchase situations. Shopper characteristics might includeinvolvement, attitude, and ethnicity, while the retailing features could includeoutlet size, retail format, and store personality. Internal factors:Affect or mood has been identified as a variable that influences impulsepurchasing. According to a survey 85% of respondents indicated a positivemood would be more constructive to impulse buying than a negative mood.Respondents stated that, in a positive mood, they had an unconstrainedfeeling, the desire to reward themselves, and higher energy levels. Thus, theimpulse buyers exhibited greater feelings of delight, enthusiasm, and joy.Individual consumers impulse buying behavior is correlated with their desiresto fulfill hedonic needs, such as fun, novelty and surprise. In addition,emotional support needs may also be satisfied by the social interactioninherent in the shopping experience. For instance, research findings indicatethat consumers report feeling uplifted or energized after a shopping 17
  • 23. experience supporting the recent concept of impulse buying behavior as a traitmotivated by hedonic desire. The hedonic value of shopping reflects potentialentertainment and emotional worth of shopping. It has been suggested thatshopping without specific intent, may be more significant than acquisition ofproducts and can provide a highly pleasurable shopping experience. Since thegoal of the shopping experience is to provide satisfaction of hedonic needs, theproducts purchased during these excursions appear to be chosen withoutprior planning and represent an impulse buying event. External factors Specific situations and retail settings influence both in-store responsesand future store choice decisions because of the changing and adoptive natureof expectations, preferences, and behavior. For instance, the findings of thestudy showed that consumers’ beliefs about the physical attractiveness of astore had a higher correlation with a choice of a store than did merchandisequality, general price level, and selection. This supports the notion thatconsumers’ choice of a store is influenced by the store environment, of whichvisual merchandising plays a vital role. This observation that peopleapproach, avoid, and create situations in accordance with their desires.Customers’ avoid or leave retail settings that are stressful or obstructive. Theexpectation/experience of positive feelings generally leads to approachresponses, while avoidance is associated with expectations/experience ofnegative outcomes.Researchers have suggested that various aspects of retailing environments caninfluence consumer behavior. The significant role of various retailingatmospherics, For instance, music and color have been related to consumerbehavior, suggesting visual merchandising within the retail settings mayinfluence consumer behavior as well. 18
  • 24. 1.9 Visual Merchandising: Visual merchandising, or visual presentation, is the means tocommunicate a store/company’s fashion value and quality image toprospective customers. “The purpose of visual merchandising is to educate thecustomer, to enhance the store/company’s image, and to encourage multiplesales by showing apparel together with accessories”. Therefore, eachstore/company tries to build and enhance its image and concept through visualpresentations, which appeal to shoppers and ultimately transform them intocustomers by building brand loyalty and encouraging customers’ buyingbehaviors.Visual merchandising is defined as “the presentation of a store/brand and itsmerchandise to the customer through the teamwork of the store’s advertising,display, special events, fashion coordination, and merchandising departments 19
  • 25. in order to sell the goods and services offered by the store/company”. Visualmerchandising ranges from window/exterior displays to interior displaysincluding form displays and floor/wall merchandising as well as promotionsignage. It also broadly includes advertising and brand/store logo. In thisstudy, however, only window display and in-store display comprise ofform/mannequin display, floor merchandising and promotional signage wereinvestigated.1.10 Visual Merchandising in Relation toImpulse Buying Behavior:In-store browsing may be a link between internal and external factors, as animportant component in the impulse buying process as well as a link betweenconsumers’ impulse buying behavior and retail settings including exterior andinterior display. “In-store browsing is the in-store examination of a retailer’smerchandise for recreational and informational purposes without animmediate intent to buy”. Customers who browsed in a store made moreunplanned purchases than non-browsers in a regional mall setting. As acustomer browses longer, she/he will tend to encounter more stimuli, whichwould tend to increase the like hood of experiencing impulse urges. Thissupports conceptualization of impulse buying as a response to the consumer’sexposure to in-store stimuli. Shoppers may actually use a form of in-storeplanning to finalize their intentions. The store stimuli serves as a type ofinformation aid for those who go to the store without any predetermination ofwhat they need or buy, and once they get into the store, they are reminded orget an idea of what they may need after looking around the store. In otherwords, consumer’s impulse buying behavior is a response made by beingconfronted with stimuli that provoke a desire that ultimately motivate a 20
  • 26. consumer to make an unplanned purchase decision upon entering the store.The more the store stimuli, such as visual merchandising, serves as a shoppingaid, the more likely the possibility of a desire or need arising and finallycreating an impulse purchase. The importance of window display in relation to consumers’ buyingbehavior has received minimal attention in the literature. However, since aconsumer’s choice of a store is influenced by the physical attractiveness of astore, and the first impressions of the store image is normally created at thefaçade level, it can be suggested that window display may influence, at least tosome degree, consumers’ choice of a store when they do not set out with aspecific purpose of visiting a certain store and purchasing a certain item. Theinitial step to getting customers to purchase is getting them in the door. 21
  • 27. Chapter 2. REVIEW OF LITERATUREImpulse buying has been defined as a spontaneous, immediate purchase (Rook & Fisher, 1995) without pre-shopping intentions either to buy a specific product category or to fulfill a specific buying task (Beatty & Ferrell, 1998). Impulse purchases account for substantial sales across a broad range of product categories (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982). Without having prior information of a new product or intention to purchase a certain item, a consumer is exposed to stimuli, suggesting that a need can be satisfied through the purchase.The store stimuli serve as a type of information aid for those who go tothe store without any predetermination of what they need or buy. Themore the store stimuli, such as visual merchandising, serves as ashopping aid, the more likely the possibility of a desire or need arisingand finally creating an impulse purchase 22
  • 28. CHAPTER 3 METHODS AND PROCEDUR Chapter three outlines and describes the methodology involved in this research. This includes the research hypotheses, operational definitions of variables, instrument development, sample recruitment and data collection procedure, data analysis methods, and study limitations and assumptions.3.1 Research Hypotheses:Research on situational influences can be described by investigating therelationship among various shopper characteristics and the features ofretailing or point-of-purchase situations. Shopper characteristics mightinclude involvement, attitude and ethnicity, while retailing features couldencompass store size, retail format and store personality. In this study,impulse purchase tendency serving as a shopper characteristic and visualmerchandising serving as an external cue are determined to be variables.Therefore, hypotheses were developed to investigate relationships betweenconsumers’ tendency to purchase on impulse and four types of visualmerchandising. 23
  • 29. The Four types of Visual Merchandising are:1. Window display,2. In-store form/mannequin display,3. Floor merchandising and4. Promotional signage. Hypothesis 1 was constructed to find out whether there was a significant relationship between college students’ impulse buying behavior and window display. Hypothesis 2 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and in-store form/mannequin display. Hypothesis 3 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and floor merchandising. Hypothesis 4 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and in-store promotional signage. 24
  • 30. H1. Consumers who purchase on impulse are influenced by windowdisplays.H2. Consumers who purchase on impulse are influenced by in-storeform/mannequin display.H3. Consumers who purchase on impulse are influenced by floormerchandising.H4. Consumers who purchase on impulse are influenced by promotionalsignage.3.2 Operational Definitions of Variables: Dependent Variable The dependent variable of this study was consumer’s impulse buyingtendency. Five questions measuring consumers’ impulse buying tendency wereincluded in the survey (Table 1, question numbers 1-5; Appendix. 1). Thesequestions were developed through references to previous studies on impulsebuying. Responses were measured using a five-point Likert scale, whichranged from never=1 to frequently=5. 25
  • 31. Independent Variables Independent variables of this study were four types of visualmerchandising: window display, in-store form/mannequin display, floormerchandising, and promotional signage. It was hypothesized that thesevariables influence shoppers to buy on impulse. In other words, these fourtypes of visual merchandising will influence consumer’s impulse buyingbehavior. Each independent variable was comprised of at least three questionsdesigned to measure each variable. Responses were recorded using five-pointscale with choice options of never=1 to frequently=5.3.3 Methodology: Sample Consumers’ overspending has grown as they have more purchasingpower than before with relatively easy access to credit cards. In fact, they havegrown up with debt and use it freely. Therefore, the consumer behavior of animportant sector of the young adult consumer group, is worth researching. Survey Development The instrument used for this study was in survey format (Appendix 1).Questions were adopted from previous research or were created by theresearcher with the help of the researcher’s thesis committee. External factorsexamined were forms of visual merchandising likely to be encountered inmany retailing contexts. The research, therefore, focused on the effects of bothin-store information and window display on consumers’ impulse buying 26
  • 32. behavior. The questionnaire consisted of six major sections measuringconsumers’ impulse buying tendency, influence of visual merchandising anddemographics. The first section of the survey measured consumers’ impulsebuying tendency. Sections two through the section five included questionsmeasuring four distinctive visual merchandising practices that were expectedto influence cents’ buying tendency. These were window display, in-storeform/mannequin display, floor merchandising, and promotional signage.Finally, the last section consisted of questions to determine the respondents’demographic profile, such as age, gender, disposable income, residentialstatus, school status, major, and job status. 27
  • 33. Participants were asked to circle the number that best described theirresponse. Some demographic items were measured using open-ended answerformats (Appendix 1 section 6). All instructions and consent information wereincluded in the questionnaire. Questions in the first section concerned consumers’ impulse buyingtendency in respect to this criteria (Appendix 1 section 1). Today moreretailers are placing increased importance on window display to attractpasserby’s attention and ultimately to transform shoppers into consumers. The second section included questions concerning consumers’ buyingbehavior influenced by window display to see if window display influencedrespondents to enter a certain store or to make a purchase decision (Appendix1 section 2). Form/mannequin display provides customers information about newproducts, new and current trend, and coordination tips (Appendix 1 section3). The third section included questions concerning consumers’ buyingbehavior influenced by in-store form/mannequin display to find out if therespondent was influenced by in-store form/mannequin display when he/shemade a purchase decision (Appendix 1 section 3).Many retailers make a floor merchandising plan-o-gram/zone-o-gram andstrategically place focused merchandise near the isle so that it can grab thecustomers attention when they pass by. Therefore, the fourth section includedquestions concerning consumers’ buying behavior influenced by floormerchandising (i.e., merchandise itself hanging on the hangers/racks orfolded on tables) 28
  • 34. To find out if the respondent was influenced by floor merchandising whenhe/she made a purchase decision (Appendix 1, section 4). The fifth sectionincluded questions concerning consumers’ buying behavior influenced bypromotional signage (i.e., clearance, reduced price, semi-annual sale, holidaysales.) to find out if the respondent was influenced by any kind of signs instore when he/she made a purchase decision (Appendix 1,section 5). The final section included demographic questions related to age,gender, income, residential status, school status, and job status, to see therespondents’ demographic profile (Appendix 1, section 6). Because of thenature of impulse buying, a strong relationship between emotional/affectivereactions and behavior was expected despite of the possible fact that it mighthave been more likely influenced by external factors. Thus, respondents wereasked to base their answers on their recent impulse purchase experiences. 29
  • 35. 3.4 Survey Administration/Data Collection:Data Analysis MethodsStatistical Packages for Social Sciences’ (SPSS) software is used for the dataanalysis. The plan for analysis is as follows.First, descriptive statistics and frequency tables will be generated by SPSS fora data entry error check and demographic analysis. Then, principal componentanalysis with reliability test will be conducted. The Pearson correlation test willbe conducted to see the correlations between consumers’ impulse buyingtendency and each of four types of visual merchandising practices. Finally,regression analysis will be conducted for hypotheses testing to find out therelationship between consumers’ impulse buying tendency (dependentvariable) and the four types of visual merchandising (independent variables).Table 2 shows the hypotheses and survey location along with the plannedanalysis for each hypothesis. 30
  • 36. 3.5 Limitations: The following limitations were considered in this study: 1. The sample was geographically limited and the age range was narrow. Data collected in other areas may produce different results. 2. Participants were limited. The shopping traits of the people depends on visual merchandising as an information aid may differ depending on their area of study. 3. The instrument was limited to a quantitative method. The survey asked participants to answer the questions based on their recent impulse buying experiences as long as they were aware of their behavior and influences. However, the qualitative research methods may bring different results. 4. Participants had time constraints. Since the survey was asked to be completed and to be returned immediately, the time pressure of the respondents may have affected the quality of the data. 31
  • 37. Table 1: Empirical Support for the Questionnaire Questionnaire Response YES/NO Section 1: Impulse Buying1. I go shopping to change my mood.2. I feel a sense of excitement when I make an impulse purchase3. After I make an impulse purchase I feel regret4. I have difficulty controlling my urge to buy when I see a good offer.5. When I see a good deal, I tend to buy more than that i tend to buy. Section 2: Influence of Window Display6. I tend to enter the store when I am attracted by an eye-catching.7. I feel compelled to enter the store when I see an interesting window display8. I tend to chose which store to shop in depending on eye-catching window displays. section 3: Influence on In-store/Mannequin Display9. I get an idea of what I want to buy after looking through in-store.10. When I see clothing features a new design or style on display, I tend to buy it.11. When I see clothing that I like on in-store form/mannequin display, I tend to buy it. 32
  • 38. 12. I tend to rely on store displays when I make a decision to purchase clothing. Section 4: Influence of Floor Merchandising13. When I see clothing that catches my eye I tend try it with looking through the whole section.14. When I walk along the isle, I tend to look through the clothing close to me.15. I tend to try on clothing that catches my eye when I pass by. Section5: Influence of Promotional Signage16. If I see an interesting promotional offer (reduced price, sales promotion etc.) on in-store signs, I tend to buy.17. Sale/clearance signs entice me to look through the clothing.18. When I see a special promotion sign, I go to look at that clothing.19. I am more likely to make an unintended purchase if the clothing has a sale or clearance sign. 33
  • 39. Table 2: Research hypotheses, location of the relatedquestions, and planned preliminary and hypothesisstatistical tests. Planned Statistics Hypothesis Survey Preliminary Hyp. Tests TestsH1. Consumers who Section 1: Frequency Tablepurchase on impulse are Ques. 1-5 Principal Componentinfluenced by window Section 2: Analysis Regressiondisplay. Ques. 6-8 Reliability Test analysis Person CorrelationH2. Consumers who Section 1: Frequency Tablepurchase on impulse are Ques. 1-5 Principal Component Regressioninfluenced by in-store Section 3: Analysis analysisform/mannequin display Ques. 9-12 Reliability Test Person CorrelationH3. Consumers who Section 1: Frequency Tablepurchase on impulse are Ques. 1-5 Principal Component Regressioninfluenced by floor Section 2: Analysis analysismerchandising. Ques. 13-15 Reliability Test Person CorrelationH4. Consumers who Section 1: Frequency Tablepurchase on impulse are Ques. 1-5 Principal Component Regressioninfluenced by floor Section 2: Analysis analysismerchandising. Ques. 16-19 Reliability Test Person Correlation 34
  • 40. Table 3: Descriptive Statistics for Demographics Valid Question Frequency Frequency(%) Male 30 12.7Gender Female 201 84.8 18 6 2.5 19 46 19.4Age 20 73 30.8 21 53 22.4 22-25 28 11.8 26-55 10 4.1 Residence 37 15.6Residence Apartment 131 55.3 House 66 27.8 Alone 10 4.2Living Arrangement Roommat 205 86.5 Parents 6 2.5 Spouse 5 2.1 Under $49 9 3.6 $50-99 23 9.7 $100-199 45 18.9Disposable income $200-299 45 19.0 $300-399 16 6.7 $400-499 22 5.0 Over $500 17 7.0 Freshman 15 6.3 Sophomor 109 46.0School Classification Junior 85 35.9 Senior 21 8.9 Graduate 5 2.1 Unemploy 109 46.0Job Status Part-time 108 45.6 Full-time 13 5.5 35
  • 41. CHAPTER 4 ANAYSIS AND FINDINGS This chapter provides a detailed description of the data analysis anddiscussion of research findings as a result of various statistical tests. Datawere collected via self-administered survey. The data file was imported fromExcel to the Statistical Packages for Social Sciences’ (SPSS) software foranalysis. Statistical methods used for the data analysis in this study weredescriptive statistics and frequency tests, principal component analysis andreliability tests, Pearson correlation tests, and regression analyses. Thesignificance level chosen for this study was .01.4.1 Descriptive Findings First, a descriptive statistic analysis was conducted to examinewhether or not there was an error in the data entry. In addition, frequencytables were generated to describe the sample in terms of demographics aswell as respondents’ impulse buying tendency and the influence of fourtypes of visual merchandising on their buying behaviors. The frequencytables included frequency, percent, valid percent, and cumulative percent aswell as mean and standard deviation for each data set. 36
  • 42. 4.2 Descriptive Statistics for demographicsDescriptive statistics for the sample can be found in Table 3, providinginformation regarding the respondents’ demographical profile, such as age,gender, disposable income, residential status, school classification, major,and job status. The majority of respondents were women (65%) whereas only43% of respondents were men (Table 3). Since women are the majorpurchasers of soft goods (e.g., apparel and household textiles), thisdemographical limitation is not considered to affect the result in a negativeway. and the average age of respondents was 21-25 years old. The disposableincome of the respondents ranged from Rs.5000 to Rs.10,000.The largest proportion (2 1%) of the respondents was majoring in ChildDevelopment followed by Fashion Merchandising (15%) and Nursing (13%).Eighty-two percent of respondents were either sophomores (46%) or juniors(3 6%). Almost one half (46%) of respondents were unemployed and theother half had a part-time job (45.6%). The mean score (3.32) for the first section of the survey, measuringconsumers’ impulse buying tendency, suggested respondents tended topurchase on impulse. Section two through section five, measured influencesof four types of visual merchandising on consumers’ shopping behavior. Aslong as Customers were aware of the influences on their buying decisionfrom their recent shopping experience, it appeared that they tended beinfluenced by window display, floor merchandising, and promotional signagewhen they made a purchase decision (Table 4). However, for the fifth sectionof the survey, measuring influence of in-store form/mannequin display onconsumers’ buying behavior, the mean scale exhibited 2.62; in-storeform/mannequin display was not rated as strongly as the in-store visualmerchandising variables. Bivariate correlation among variables and 37
  • 43. directional relationships between college students’ impulse buying behaviorand the influencing factors will be discussed later in Pearson correlation andregression analysis section.4.3 Data Reduction and Reliability TestThree to five items were constructed to measure each variable under study.Principal component analyses with Varimax rotation were conducted for fivevariables (i.e., consumers’ impulse buying tendency, consumers’ buyingbehavior influenced by window display, consumers’ buying behaviorinfluenced by in-store form/mannequin display, consumers’ buying behaviorinfluenced by floor merchandising, consumers’ buying behavior influencedby promotional signage) to impulse buying behavior, influence of floormerchandising on consumers’ impulse buying behavior, and influence ofpromotional signage on consumers’ impulse buying behavior). Thedescriptive statistics for each variable is shown in Table 4.Table 4: Descriptive Statistics for Variables 38
  • 44. Variables Number of Mean Standard Cases DeviationImpulse Buying Tendency 237 3.32 0.7944Influence of Window 237 3.35 0.9486Display ofInfluence 237 2.62 0.7673Form/MannequinDisplay of FloorInfluence 237 3.49 0.7826MerchandisingInfluence of Promotional 237 3.89 0.7654SignageThe items in the first section of the survey, measuring consumers’ impulsebuying tendency, initially loaded into two components with Eigen values overone (Table 5). Four of the five items loaded into the first component, and oneitem loaded into the second component. This result suggests that one item(i.e., “3. After I make an impulse purchase, I feel regret.”) represented aconcept different from that of the other four items. For the second section of the survey, measuring the influence ofwindow display, the principal component analysis resulted in onecomponent with an Eigen value of 2.32 (Table 8). This component consistedof three questions. These three questions (see Table 8, question numbers 6-8) were closely related, representing the same concept: consumers’ buyingbehavior influenced by window display.Table 5: Initial Component Matrix of Multi-item scale for 39
  • 45. Impulse Buying Items (Impulse Buying Components(1 & 2) Tendency)1. I go shopping to change my mood. 0.689 -0.2072. I feel a sense of excitement when I 0.722 -0.409make an impulse purchase3. After I make an impulse purchase, I 0.104 -0.882feel regret.4. I have difficulty controlling my urge 0.798 0.278to buy when I see good offer.5. When I see a good deal, I tend to 0.679 0.183buy more than I intended to buy. 40
  • 46. Table 6: Component Matrix for Impulse Buying Tendencyafter Eliminating Item Three Items (Impulse Buying Tendency) Component (1) 0.690 1. I go shopping to change my mood. 0.734 2. I feel a sense of excitement when I make an impulse purchase. 0.790 4. I have difficulty controlling my urge to buy when see a good Offer. 0.679 5. When I see a good deal, I tend to buy more than that I intended to buy. % of Variance Explained 53%Table 7: Reliability Test Result for Internal Consistency 41
  • 47. Survey Questions CorrelationSection 1: Impulse Buying 0.701. I go shopping to change my mood. 0.662. I feel a sense of excitement when I make an 0.62 impulse purchase3. After I make an impulse purchase I feel regret4. I have difficulty controlling my urge to buy when I see a 0.58good offer.5. When I see a good deal, I tend to buy more than 0.66 that I tend to buy.Section 2: Influence of Window Display 0.856. I tend to enter the store when I am attracted by 0.75 an eye-catching.7. I feel compelled to enter the store when I see an 0.76 interesting window display8. I tend to chose which store to shop in depending 0.86 on eye-catching window displays.Section 3: Influence on In-store/Mannequin Display 0.839. I get an idea of what I want to buy after looking 0.80 through in-store.10. When I see clothing features a new design or 0.76 style on display, I tend to buy it.11. When I see clothing that I like on in-store 0.76 form/mannequin display, I tend to buy it.12. I tend to rely on store displays when I make a 0.81 decision to purchase clothing.Section 4: Influence of Floor Merchandising 0.64 42
  • 48. 13. When I see clothing that catches my eye I tend 0.55 try it with looking through the whole section.14. When I walk along the isle, I tend to look 0.55 through the clothing close to me.15. I tend to try on clothing that catches my eye 0.53 when I pass by.Section5: Influence of Promotional Signage 0.8416. If I see an interesting promotional offer 0.84 (reduced price, sales promotion etc.) on in-store signs, I tend to buy.17. Sale/clearance signs entice me to look through 0.77 the clothing.18. When I see a special promotion sign, I go to 0.78 look at that clothing.19. I am more likely to make an unintended 0.80 purchase if the clothing has a sale or clearance sign.Table 8: Component Matrix for Influence of Window Display Items (Influence of window display) Component (1) 43
  • 49. 6. I tend to enter a store when I am attracted by an eye 0.904 catching window display7. I feel compelled to enter the store when I see an 0.808 interesting window display8. I tend to choose which store to shop depending on 0.691 eye-catching window display. % of variance 77%In the analysis of the third section of the survey, measuring influence of in-store form/mannequin display, the result of the principal componentanalysis showed that all four items in this section loaded in one componentwith an Eigen value of 2.64 accounting for 66% of the variance (Table 9).This result suggested that these four questions (see Table 9, questionnumbers 9-12) were relevant and representing the same concept: consumers’buying behavior influenced by in-store form/mannequin display.The result of the principal component analysis for the forth section of thesurvey, measuring influence of floor merchandising, all three items loaded inone component with an Eigen value of 1.76 (Table 10). This result suggeststhat all three questions (Table 10, question numbers 13-15) in this section wereclosely related and represented the same concept: consumers’ buyingbehavior influenced by floor merchandising.The principal component analysis for the fifth section, measuring influenceof promotional signage, resulted in one component with an Eigen value of 44
  • 50. 2.71 accounting 68% of variance (Table 11). This component consisted of fourquestions. These four questions (Table 11, question numbers 16-19) wereclosely related representing the same concept: consumers’ buying behaviorinfluenced by promotional signage.Table 9: Component Matrix for Influence ofForm/Mannequin Display Component (1) Items (Influence of Form/Mannequin Display) 0.788 9. I get an idea of what I want to buy after looking through in-store form/mannequin displays. 0.843 10. When I see clothing featuring a new style or design on display, I tend to buy it. 0.844 11. When I see clothing that I like on in-store form/mannequin display, I tend to buy it. 0.772 12. I tend to rely on store displays when I make a decision to purchase clothing. % of Variance Explained 66%Table 10: Component Matrix for Influence of FloorMerchandising 45
  • 51. Component (1)Items (Influence of Floor Merchandising)13. When I see clothing that catches my eye I tend to 0.767 try it on without looking through the wholesection. 0.75814. When I walk along the isle, I tend to look through the clothing close to me. 0.77015. I tend to try on clothing that catches my eyewhen I pass by. % of Variance Explained 59% 46
  • 52. Table 11: Component Matrix for Influence of PromotionalSignage Component (1) Items (Influence of Promotional Signage) 16. If I see an interesting promotional offer (reduced 0.748 price, sales promotion, and etc.) on in-store signs, I tend to buy. 0.864 17. Sale/clearance signs entice me to look through the clothing. 18. When I see a special promotion sign, I go to look at 0.85 1 that clothing. 19. I am more likely to make an unintended purchase 0.826 if the clothing has a sale or clearance sign. % of Variance Explained 68% 47
  • 53. 4.3 Analysis and Discussion of HypothesesFindings:Pearson Correlation and Regression Analysis Pearson correlation tests were conducted to see the correlationsbetween the independent variable and dependent variables. In addition tothe Pearson correlation test, a simple bivariate analysis, a multipleregression analysis was conducted for the hypotheses testing using impulsebuying tendency as a dependent variable and each visual merchandisingvariable as predictors in order to see if there is relationships that wereuncovered in a multiple context and to determine the relative importance ofthe various type of influences on customers’ impulse buying behavior. Hypothesis 1 was designed to test whether or not there was asignificant relationship between consumers’ impulse buying behavior andwindow display. Hypothesis 2 was constructed to determine whether or not therewas a significant relationship between consumers’ impulse buying behaviorand in-store form/mannequin display. Hypothesis 3 was prepared to test whether or not there was asignificant relationship between consumers’ impulse buying behavior andfloor merchandising. Hypothesis 4 was designed to determine whether or not there was asignificant relationship between consumers’ impulse buying behavior andany type of in-store promotional signage.The regression analysis found that window display did not significantlyinfluence consumers’ impulse buying behavior (Table 13) even though thePearson correlation test showed the significant relationship betweenimpulses buying and window display (Table 12). Since the p-value (.28 1) from 48
  • 54. the regression analysis was greater than the level of alpha .01, the nullhypothesis was not rejected. This suggested that there was not a directionalrelationship where window display significantly influenced consumersimpulse buying behavior. The data did not provide sufficient evidence thatthere was a significant relationship between consumers’ impulse buyingbehavior and window display suggesting that although consumers’ impulsebuying behavior and window display are correlated, the directionalrelationship (i.e., influence of window display on impulse buying) was notfound to be statistically significant. This result might have come from the fact that window display wasalso significantly correlated with other variables including the variables (i.e.,form/mannequin display and promotional signage) that had the strongerrelationship with impulse buying from the regression analysis; the significantrelationship with impulse buying shown from the a simple bivariate analysismight have resulted from the significant relationship with these variables. 49
  • 55. Table 12: Correlation with Impulse Buying Variables Coefficient (r) Significance (p)Window Display 0.292** 0.000**Form/mannequin Display 0.406** 0.000**Floor Merchandising 0.286** 0.000**Promotional Signage 0.404* * 0.000* *Table 13: Hypotheses and conclusion with determiningcoefficients and p-values from regression analysis Hypothesis Coefficient p-value Conclusion (β) Although ConsumersH1. Consumers who impulse buying behaviorpurchase on impulse are 0.069 0.28 1 and window display aremore likely influenced by correlated, the directionalwindow displays. relationship was notH2. Consumers who In-store form/mannequinpurchase on impulse are 0.287 0.000** display significantlymore likely influenced by in- influences Consumersstore form/mannequin impulse buying behavior.display. 50
  • 56. Although ConsumersH3 Consumers who impulse buying behavior 0.072 0.249purchase on impulse are and floor merchandising aremore likely influenced by correlated, the directionalfloor merchandising. relationship was not found to be statistically significant.H4. Consumers who Promotional signagepurchase on impulse are 0.297 0.000** significantly influencesmore likely influenced by Consumers impulse buyingpromotional signage. behavior.Dependent Variable: Consumers’ impulse buying tendencyPredictors: Influence of window display, in-store form/mannequindisplay, floor merchandising and promotional signage on consumers’buying behavior.Even though the result showed the window display did not significantlyinfluence Consumers actual impulse buying decision in a direct way, it mayplay a role to attract Consumers to enter the store by creating attractivenessof a store, which may ultimately contribute their impulse buying. 51
  • 57. CHAPTER 5 CONCLUSIONS, IMPLICATIONS, AND RECOMMENDATIONS This chapter provides summary and discussion of research findingsalong with implications for industry. In addition, recommendations forfuture research and limitations of the study will be discussed.5.1 Conclusions:Impulse buying is a sudden and immediate purchase with no pre-shoppingintentions either to buy the specific product or to fulfill a specific buyingtask. Researchers have attempted to determine if consumers’ who frequentlyengage in impulse buying behavior have some common personality traits.This study further investigated some external factors that influence impulsebuying behavior. In attempt to examine this relationship, this studyprimarily tried to explain the relationship between consumers’ impulsebuying behavior and various types of visual merchandising. An importantfinding of this study was that visual merchandising practices certainlyinfluence consumers’ impulse buying behavior. The results proved that therewere significant relationships between consumers’ impulse buying behaviorand in-store form/mannequin display and promotional signage. Eventhough the window display and floor merchandising did not appear tosignificantly lead to consumers’ impulse buying behavior, the results stillsuggested that these variables and consumers’ impulse buying behavior aresignificantly correlated. It can be agreed that all four types of visual 52
  • 58. merchandising (i.e., window display, in-store form/mannequin display, floormerchandising, and promotional signage) are significantly interrelated andthat relationship generates the influences on consumers’ impulse buyingbehavior. A significant contribution of the present study is its elucidation of therelationship between impulse buying and visual merchandising, which hasbeen neglected in academic research. Despite the utilization of visualmerchandising to improve desirability of products and to encourageconsumers’ buying behavior, a dearth of research exists that investigates itsinfluence on consumer buying behavior. The result of the present studyproves that there is a pivotal relationship between consumers’ impulsebuying behaviors and two type of visual merchandising practices: in-storeform/mannequin display and promotional signage. When consumers areexposed to these visual stimuli, they more likely make purchase decisions onimpulse. This suggests that these visual merchandising practices, serving asstimuli that provoke a desire that ultimately motivates a consumer to makean unplanned purchase decision upon entering the store, significantlyinfluence 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. Despite the importance of thisrelationship, visual merchandising, which was relevant of browsing, hasreceived minimal attention from researchers. This study showed usefulnessof visual merchandising in understanding impulse buying. 53
  • 59. 5.2 Implications:Impulse buying occurs when a consumer experiences a sudden, oftenpowerful and persistent urge to buy something immediately, and theimpulse to buy is hedonically complex. The hedonic value of shoppingsuggests that it reflects shopping’s potential entertainment and emotionalworth. It has been suggested that browsing, or shopping without specificintent, may be more important than the actual acquisition of products andcan provide a pleasurable shopping experience. Therefore, in addition toexposing consumers to stimuli, such as retail settings, browsing tends toproduce positive feelings for many shoppers. These positive feelings,produced by browsing, play a role as positive affects to encourageconsumers’ impulse buying behavior. Retail setting, such as visualmerchandising, therefore, can influence consumers’ impulse buying byproviding information or reminding needs as well as producing positivefeelings. At the stages of the impulse buying process, retailers can attemptto provoke consumers’ desire for the products, and the awareness of theproducts, which can satisfy the desire, can be achieved by browsing andbeing exposed to the stimuli, such as visual merchandising.The way in which merchandise will eventually be displayed and promoted atthe store level is an important consideration in the strategicmarketing/merchandising plan. The findings of this study providedinformation concerning the influence of visual merchandising onconsumers’ impulse buying behavior. The result signified importance ofvisual merchandising influences on impulse buying behavior. Since in-storeform/mannequin display and promotional signage significantly influenceconsumers’ impulse buying behavior, retailers should continuouslyreinforce usage of in-store form/mannequin displays and functions of signsto create favorable shopping environments to influence consumers’ both in- 54
  • 60. store responses and future store choice decisions. Although window displayand floor merchandising did not appear to significantly influenceconsumers’ impulse buying behavior, significant correlation found betweenconsumers’ impulse buying behavior and both window display and floormerchandising. Since a previous study proved that physical attractiveness ofa store had a higher correlation with a choice of a store than didmerchandise quality, general price level, and selection, retailers should putmore efforts creating attractive and eye-catching window display providinginformation regarding new products, fashion trends, or coordination tips.Even though floor merchandising did not appear to significantly influenceimpulse buying decision, research found that perceptions of variety are animportant determinant of attitudes and store choice. Therefore, creativemerchandise presentation and variety of assortment can still influencecustomers’ satisfaction and perceptions about the store choice. The findingsof this study provided sufficient evidence that retailers can utilize visualmerchandising to increase desirability of products and to help customersbeing aware of the products as well as to create favorable attitudes. Thisstudy also provided insights to retailers about types of visual merchandisingthat can influence consumers’ impulse buying behaviors.The positive impulse buying experiences contribute to establishing storeloyalty and customers’ perceived value and satisfaction influence futurebuying decisions. Effective visual merchandising practices can influenceconsumers’ positive impulse purchase experiences. 55
  • 61. 5.3 Recommendations for Future Research: Because impulse buying behavior was strongly related toemotional/affective reactions and behavior despite of the possible fact thatit might have been more likely influenced by external factors, the type ofinfluence/response was somewhat difficult to determine by the surveyquestionnaires. If consumers were aware of their responses to varioussituations, the influence of different factors/events could have been directlyexamined. Therefore, combination of quantitative and qualitative researchmethods (e.g., observational or experimental research methods) isrecommended for future research. In addition, since impulse buying is phenomenon in a modernsociety, expended research with various demographical and geographicalgroups as well as influences of visual merchandising in various non-storeformats are recommended. 56
  • 62. APPENDIX SAMPLE OF SURVE QUESTIONNAIRE RESPONSESection 1: Impulse Buying Never Frequently1. I go shopping to change my mood. 1 2 3 4 52. I feel a sense of excitement when I make an 1 2 3 4 5 impulse purchase3. After I make an impulse purchase I feel regret 1 2 3 4 54. I have difficulty controlling my urge to buy when 1 2 3 4 5I see a good offer.5. When I see a good deal, I tend to buy more than 1 2 3 4 5 that I tend to buy.Section 2: Influence of Window Display 1 2 3 4 56. I tend to enter the store when I am attracted by 1 2 3 4 5 an eye-catching.7. I feel compelled to enter the store when I see an 1 2 3 4 5 interesting window display8. I tend to chose which store to shop in depending 1 2 3 4 5 on eye-catching window displays.Section 3: Influence on In-store/Mannequin 1 2 3 4 5Display9. I get an idea of what I want to buy after looking 1 2 3 4 5 through in-store. 57
  • 63. 10. When I see clothing features a new design or 1 2 3 4 5 style on display, I tend to buy it.11. When I see clothing that I like on in-store 1 2 3 4 5 form/mannequin display, I tend to buy it.12. I tend to rely on store displays when I make a 1 2 3 4 5 decision to purchase clothing.Section 4: Influence of Floor Merchandising 1 2 3 4 513. When I see clothing that catches my eye I tend 1 2 3 4 5 try it with looking through the whole section.14. When I walk along the isle, I tend to look 1 2 3 4 5 through the clothing close to me.15. I tend to try on clothing that catches my eye 1 2 3 4 5 when I pass by.Section5: Influence of Promotional Signage 1 2 3 4 516. If I see an interesting promotional offer 1 2 3 4 5 (reduced price, sales promotion etc.) on in-store signs, I tend to buy.17. Sale/clearance signs entice me to look through 1 2 3 4 5 the clothing.18. When I see a special promotion sign, I go to 1 2 3 4 5 look at that clothing.19. I am more likely to make an unintended 1 2 3 4 5 purchase if the clothing has a sale or clearance sign. 58
  • 64. BIBLIOGRAPHYREFERENCES: Kunkel, J.H., & Berry, L.L.. “A behavioral concept of retail images,” Journal of Marketing, 32 (4). Smith, M.F. & Carsky, M.L. A comparison of involved and uninvolved consumers. Journalof Retailing and Consumer Services Welles, G. (1986). Were in the habit of impulsive buying, USA Today, May 21, 1. Weun, S., Jones, M.A. & Beatty, S.E. (1998). The development and validation of the impulse buying tendency scale. Psychological Reports, 82. 1123-1133. (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982).WEBSITES: http://www.Google.com/ http://www.ask.com/ http://www.wikipedia.com/ http://www.researchandmarkets.com/ http://business.mapsofindia.com/india-retail-industry/ http://www.ibef.org/industry/retail.aspx/ http://www.icmrindia.org/casestudies/catalouge/marketing/ 59

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