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Studying Store Layouts and Visual Merchandising and its effect on Sales
SYNOPSIS

2. Table of Contents
1. Background ............................................................................................................. 1
2. Need, Importance and Significance of the Study ..................................................... 2
3. Scope and Limitations of the study.......................................................................... 2
4. Time Period............................................................................................................. 3
5. Geographical Location............................................................................................. 3
6. Research Methodology............................................................................................ 4
6.1. Data Collection .................................................................................................... 4
6.1.1. Secondary Data collection ............................................................................. 4
6.1.2. Primary Data Collection ................................................................................. 4
7. Definition of Terms Used ......................................................................................... 4
8. Research Objectives ............................................................................................... 5
9. Research Hypothesis .............................................................................................. 6
10. Chapter Scheme .................................................................................................. 6
Chapter 1: Introduction ............................................................................................ 6
Chapter 2: Literature Review................................................................................... 6
Chapter 3: Research Methodology .......................................................................... 6
Chapter 4: Analysis, Results and Hypothesis testing............................................... 7
Chapter 5: Summary, Conclusions and Recommendations..................................... 7
11. Cost Budgeting..................................................................................................... 7
Bibliography................................................................................................................... 8

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1. Background
A number of consumer behavior researchers have affirmed that store layout and visual
merchandising is a key element in increasing foot falls and boosting sales (Pal and
Byrom (2003); Dabholkar, 2006; Krishnan et al, 2002). Store layout as described by
Rani et al (2008) is the expected and anticipated advantage that a shopper connects
with shopping at some definite store. Therefore it is of extreme significance for shop
owners to build and maintain an eye-catching layout and a constructive visual
merchandising.
The overall objective of the present research work will be to study the effect of store
layout on sales. To facilitate attainment of the objectives of the research, the researcher
plans to conduct a quantitative study across some selected stores in Mumbai through
self designed questionnaires. A sample of 100 respondents will be asked questions
relating to the research. The respondents will be selected through non-probability
sampling within which convenience sampling is planned to be implemented.
Conclusions and recommendations will subsequently be drawn from the review of past
literature on the subject area and the findings of the study will be framed.
The researcher will distribute the questionnaire among a sample of 100 respondents.
The sample population will comprise of customers and store owners. The researcher
intends to use convenience sample under the purview of non-probability sampling for
the study. Conclusions and recommendations will be framed based on the analysis of
findings from the study and relating it to the secondary study conducted in the form of a
review of past literature on the subject area.

4. 2. Need, Importance and Significance of the Study
A key aspiration of this study is to show consumers experience what kind of problems
with store layout. The study will aim to analyze how outward show of the store, visual
merchandising, store ambiance, and service and convenience can be major aspects for
boosting sales. Further on the basis of the findings the resear5ch will recommend
owners of the store to concentrate to those aspect and make sure that essential
strategies are put into practice to help alter the store layout and wherever there is a
requirement and thus increase sales. The research will also add to the current literature
on store layout and its relation with sales figures. It can be observed that majority of
past studies conducted in the subject area has focused on the relation between
customer retention and satisfaction and the store layout. These studies have however
not focused on the direct link between store layout and visual merchandising and sales.
Further most of the studies have been conducted on foreign shores and thus have less
relevance to Indian scenario. This study will therefore be of significance for establishing
a direct link between store layout and sales figures and will further present information
of high relevance with regards to Indian context.
3. Scope and Limitations of the study
The scope of the study will extend to store Layout, consumer behaviour, and its relation
with sales. Te scope will not include financial calculations, human resource
management and management control of the organizations.
Limitations of the study include the compromised generalizability due to the
individualized basis in which each case is built upon. However, if multiple cases within a
specific domain are combined than the external validity is believed to increase.
Limitations of the study will be the some limitations connected with questionnaire based
method such as that some respondents might not take interest in the questions and
may not provide genuine responses, further responses will only be based on the query
and respondents will not have the opportunity to tell something on their own. These
limitations will be dealt by careful selection of questions and filtering of the questionnaire

5. after the collection. Further a pilot study will be conducted on the questionnaire with
some sample respondents.
4. Time Period
The proposed timeline of the submission of the proposed research as shown in the
table below:
5. Geographical Location
To facilitate attainment of the objectives of the research, the researcher plans to
conduct a quantitative study across some selected stores in Mumbai through self
designed questionnaires.
Year 2013 July Aug Sep Oct
Secondary Data Collection
Questionnaire Preparation
Survey Pilot Testing
Conducting Questionnaire
Analyze findings and conclude
with solutions
Preparing the Report
Submission

6. 6. Research Methodology
The study will quantitative in nature, as it will be researched involving the use of
structured questions in which the response options will be predetermined and a large
number of respondents will involved.
The research work will use quantitative techniques by making use of structured
questionnaire. In this kind of questionnaire the response are predetermined and a the
sample size is generally huge.
The research approach will be exploratory in nature since as Sekaran (2006) points out
exploratory approach is essential when a lot of information is not available on the
problem in hand.
6.1. Data Collection
6.1.1. Secondary Data collection
The secondary data is that kind of data that is already available in any form. In the
present research the secondary data will be collected by means of internet based
sources, journals, text books, news articles etc
6.1.2. Primary Data Collection
The primary data collection will be carried out through structured questionnaires.
7. Definition of Terms Used
 Retail store Retailers/Shoppers
A store is typically a privately owned enterprise that either sells and deals in a verity of
goods and merchandise or may deal in some exclusive range of goods (Bucklin, 1963).
 Merchandise Display
Merchandise display, is a word often applied in the reference of in-shop advertising. It
denotes to the manner goods are placed in a retail shop

7. Visual merchandising is a term that is frequently used when referring to the in store
advertising. It can be described as the way the goods or merchandise are positioned
inside a store (Zentes et al, 2009).
 Store layout
The store layout is a complex term and encompasses all the attributes such as
communication signs, the arrangements of goods, the range of goods and the
accessibility to the goods (Baker, Parasuraman, Grewal & Voss, 2002).
 Shop image
Martineau (1958) has provided one of the best definitions that describes shop image as
the technique or method to generate an idea and notion about the store in the minds of
the customer by using the qualities of the store and its operational efficiency.
 Consumer Behaviour
Scholar and Kenneth (1956) had stated consumer behaviour as the reaction of
consumers towards the goods and merchandise. The consumer behaviour in turn is
dependent on various factors ranging from the personal likes and dislikes of the
consumer to external environmental variables.
8. Research Objectives
The objectives of the research are,
1. To find out the factors that consumers embrace for building their experiences and
buying behaviour respectively.
2. To find out the relation between of the strategy of store owners with regards to
customer’s in-store experience.
3. To analyze the relatedness of sales with the store layout
4. To outline the decisive factors in store layout and visual merchandising that enhance
customer in-store experience and boost sales.

8. 9. Research Hypothesis
Hypotheses:-The following hypotheses are to be tested in order to attain the
objectives:-
Ho1- The present layout of stores are not in tandem with the expectations of
customers.
Ho2- There is no significant relationship between store layout and sales
10. Chapter Scheme
The research work will be including five chapters. These chapters will encompass the
following portions:
Chapter 1: Introduction
This chapter will introduce the research topic and will reflect a general idea of the
research problem; it will put forward the aims and objectives of the research need and
significance of the study. It will also describe the key terms involved. It will also lay down
the research hypothesis.
Chapter 2: Literature Review
The literature review will give a review past literature on store layout and merchandising
theory and will make use of the available literature regarding visual merchandising
variables and their influence on footfalls and sales. The review of literature will also
reflect upon consumer buying behaviors and how businesses can augment their store
layout and visual merchandising to satisfy and retain customers..
Chapter 3: Research Methodology
The research methodology will make aware about the methods of data collection used
in the study. It will detail upon the sampling methods used, the nature and description of
the sample population and the techniques of data analysis that will be used in the
research. it will also put forward the limitations and validity and methods to overcome
these limitations.

9. Chapter 4: Analysis, Results and Hypothesis testing
This chapter will synthesize and analyze the data collected through primary means and
will present the data in form of statistics. The data that has been collected will be
interpreted and processed in the form of findings. The results obtained thus, will be
used to test the hypothesis for the study.
Chapter 5: Summary, Conclusions and Recommendations
This will be the final chapter of te dissertation and will comprise of the conclusions that
have been derived from the findings of the chapter 4 and chapter 2. Subsequently
based on the findings recommendations will be framed and the future research areas
will also be outlined.
11.Cost Budgeting
Financial Requirements and Budget
All cost in INR (Indian Rupees)
S. No. Proposed Research Budget Cost (Approx)
1. Stationary 1000
2. Printing and Binding 100
3. Travelling 2000
4. Misc (Internet, Mobile, Gifts) 500
5. Total Research Cost 3600

10. Bibliography
 Dabholkar, P.A., Thorpe, D.I. and Rentz, J.O. (2006). A measure of service
quality for retail stores: Scale development and validation. Journal of the
Academy of Marketing Science. pp. 3-16.
 Krishnan, T., Koelemeijer, K. and Rao, R. (2002). Consistent assortment
provision and service provision in a retail environment. Marketing Science. pp.
21-54.
 Pal, J.W. and Byrom, J.W. (2003). The five Ss of retail operations: a model and
tool for improvement. International Journal of Retail & Distribution Management.
pp. 18-528.
 Rani, L. and Velayudhan, S.K. (2008). Understanding consumer's attitude
towards retail store in stock out situations. Asia Pacific Journal of Marketing and
Logistics. pp. 259-275.
 Sekaran, U. (2003). Research Methods for Business (4th
edn). New Delhi: John
Wiley & Sons, Inc.

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