Marketing Analytics: Research Project

1. Visual Merchandising
Display Elements in a Department Store and its Impact on Purchase
Decisions
Jennifer Petersen
MSMK 620: Marketing Analytics
Bellevue University
Professor Sheryl Okash

2. Hypothesis
In an apparel department store environment, mannequins and forms
have the most influence on purchase decisions.

3. Objectives
1. Determine the level of customer awareness and perceived
importance of visual merchandising elements.
2. Determine the effect of mannequins and forms on purchase
decisions in a department store environment.
3. Determine the effect of brand and promotional signage on
purchase decisions in a department store environment.
4. Determine the effect of aisle and point-of-purchase displays on
purchase decisions in a department store environment.
5. Collect information about respondent demographics and outside
factors to determine its influence on purchase decisions.

4. Determine the level of customer awareness and perceived
importance of visual merchandising elements.
12
29
22
15
20
Brand Signs Promotional
Signs
Mannequins Point of
Purchase
Displays
In-Aisle
Displays
When you shop at a department store, what
visual merchandising elements do you notice?
6%
48%
34%
3%
9%Brand Signs
Promotional Signs
Mannequins
Point of Purchase Displays
In-Aisle Displays
Of all of the visual merchandising elements you
notice, to which do you pay the most attention?

5. Determine the level of customer awareness and perceived
importance of visual merchandising elements.
What visual merchandising elements are most
important in an attractive store atmosphere?
1. Promotional Signs
2. Mannequins
3. In-Aisle Displays
4. Brand Signs
5. Point of Purchase Displays
Most customers notice and pay attention
to promotional signs more than any
other visual merchandising element.
They also believe that promotional signs
are the most important element in an
attractive store atmosphere.

6. Determine the effect of mannequins and forms on
purchase decisions in a department store environment.
0
2
4
6
8
10
12
14
​I look at mannequins for inspiration when
searching for an outfit.
I am often drawn to a department by a
mannequin or group of mannequins.
​I enjoy my shopping experience more in a
store with display mannequins and forms.
Strongly Agree Agree Neutral Disagree Strongly Disagree

7. Determine the effect of mannequins and forms on
purchase decisions in a department store environment.
How often you make impulse purchases
after seeing an item on a mannequin?
9%
40%40%
11%
Often Occasionally Seldom Never
0% 50% 100%
Have you gone to a
different department to
seek out an accessory
found on a mannequin?
Have you ever purchased
more than one piece of a
mannequin’s outfit after
seeing it coordinated?
Yes No

8. Determine the effect of mannequins and forms on
purchase decisions in a department store environment.
Customers often look to mannequins for inspiration
and enjoy them in the store environment and
shopping experience. However, only approximately
half of these customers will make an impulse
purchase of an item seen on a mannequin, and they
will not go out of their way to find the item.
6%
74%
20%
Not Likely Somewhat Likely Very Likely
​If you walk by a store and see an appealing mannequin, how
likely would you be to go into the store to seek out the
merchandise?

9. Determine the effect of brand and promotional signage on
purchase decisions in a department store environment.
0
5
10
15
20
25
​I enjoy shopping for on-sale merchandise and
look specifically for sale racks.​
When I find an item, I always check to see if
there is a sale sign before purchasing.
I shop for certain brands and look for signs to
locate the brands’ merchandise.
Strongly Agree Agree Neutral Disagree Strongly Disagree

10. Determine the effect of brand and promotional signage on
purchase decisions in a department store environment.
Often Sometimes Seldom Never
0
5
10
15
20
25
​If you are done shopping but pass by a
rack with a sale sign, how likely are you
to stop and look at the merchandise?
If you have finished shopping but pass
by a display with a sign of a favorite
brand, how likely are you to stop and
look at the merchandise?
Not Likely Somewhat Likely Very Likely
How often do you make an impulse purchase
on an item based solely on advertised price?
An overwhelming majority of customers look specifically for promotional signs and check prices on individual items
before purchasing. Approximately 90% of customers often or occasionally make impulse purchases based on
advertised price.

11. Determine the effect of aisle and point-of-purchase displays
on purchase decisions in a department store environment.
0
5
10
15
20
25
30
​I enjoy looking at and touching merchandise
while waiting in line to purchase.
I find excitement in purchasing small novelty
items, even if I do not need them.
I often look at merchandise that is placed in
the aisles because it is convenient.
Strongly Agree Agree Neutral Disagree Strongly Disagree

12. Determine the effect of aisle and point-of-purchase displays
on purchase decisions in a department store environment.
0 2 4 6 8 10 12 14
Never Very Rarely Rarely
Occasionally Frequently Very Frequently
49%
51%
Yes No
​Have you ever purchased an add-on item offered to
you by a sales associate at the point of sale?
Nearly half of all customers make occasional or frequent
impulse purchases at the point of purchase, both from
displays and sales associate recommendations.
An overwhelming majority of customers shop from the
merchandise placed on or in the aisles for convenience.
​How frequently do you purchase merchandise that
you have found while waiting to pay for items in a
department store?

13. Collect information about respondent demographics and outside
factors to determine its influence on purchase decisions.
0
3
16
7
6
2
1
0
2
4
6
8
10
12
14
16
18
Under 18 18 to 25 26 to 35 36 to 45 46 to 55 56 to 65 Over 65
Age of Respondents
Age Range
0
4
8
12
8
3
0
2
4
6
8
10
12
14
Under
$25,000
$25,000 to
$50,000
$50,001 to
$75,000
$75,001 to
$100,000
Over
$100,000
Did Not
Answer
Household Income of Respondents
Income Range
Gender of Respondents: Female – 89% Male – 11%

14. Collect information about respondent demographics and
outside factors to determine its influence on purchase
decisions.
14%
40%
31%
12%
3%
Very Frequently
Frequently
Occasionally
Rarely
Very Rarely
Never
How frequently do you shop in-store at an apparel
department store?
9%
54%
34%
3%
Most of the Time
Some of the Time
Seldom
Never
How often do you find yourself making impulse
purchases in a retail store environment?
Department Store Visits: Purposeful – 74% Casual – 26%

15. Summary
• The hypothesis was proven incorrect.
• Customers notice and pay attention to promotional signs more than any other visual
merchandising element, and almost 90% have made impulse purchases from these signs.
• Customers enjoy shopping for brands and are somewhat likely to make an impulse purchase based
on brand.
• While customers often look to mannequins for inspiration and for fun, only about half will make an
impulse purchase of an item seen on a mannequin.
• Approximately one half of customers partake in impulse purchases at the point of sale.
• Customers enjoy shopping in-aisle displays for convenience, making purchases more likely.
• The majority of the customers in the survey were frequent department store shoppers that make
frequent or occasional impulse purchases overall. Approximately 74% of the shopping trips
described are purposeful (looking for a specific item or items).
• A large group of the customers in the survey were female and were between the ages of 26 and 45.
A overwhelming majority of customers had a total household income of over $50,000.