EFFECT OF VISUAL MERCHANDISING ON BUYING BEHAVIOUR OF CUSTOMERS: A CASE OF BIG BAZAAR STORES IN LUCKNOW PROJECT REPORT Submitted to G. B. PANT UNIVERSITY OF AGRICULTURE AND TECHNOLOGY PANTNAGAR-263145, (UDHAM SINGH NAGAR) UTTARAKHAND, INDIA Submitted by Monika Chauhan Id. No. 32144 IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
104
Embed
Effect of Visual Merchandising on Buying Behaviour of Customers
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
EFFECT OF VISUAL MERCHANDISING ON BUYING BEHAVIOUR OF CUSTOMERS: A CASE OF BIG BAZAAR STORES IN LUCKNOW
PROJECT REPORT
Submitted to
G. B. PANT UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
PANTNAGAR-263145, (UDHAM SINGH NAGAR)
UTTARAKHAND, INDIA
Submitted by
Monika Chauhan
Id. No. 32144
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
Master of Business Administration (Agribusiness)
(MAY, 2011)
ACKNOWLEDGEMENTS
This report is the result of contributions made by numerous people – too many to mention
individually. Therefore, I thank all the respondents who have given their valuable time,
views and authentic information for this project.
At the very outset, I would like to extend my heartfelt respect to my advisor Dr. Ashutosh
Singh, Associate Professor, Department of Human Resource and Personnel Management,
for providing me all types of support, constant encouragement, and his relentless efforts to
motivate me to achieve my goal. His close supervision and precious inputs have made me
able to refine this project to this extent. I consider it my privilege to express my deep sense
of gratitude to the members of my advisory committee Dr. M.L. Sharma, Professor and
Head, Department of Finance and Dr. B.K.Sikka, Professor and Head, Department of
Marketing Management, for all the pains they have taken to guide me and critically analyze
my project work.
I cannot forget to express my sincere thanks to Dr. T.S.Bhogal, Professor, Mr. Saurabh
Singh, Assistant Professor, Dr. Mukesh Pandey, Associate Professor and Mr. Nirdesh
Kumar Singh, Assistant Professor who were always there to spend their time in giving me
valuable suggestions during the course of my project. I am extremely thankful to Mrs.
Rajni Singh and Miss Kajal, Teaching Associates for their consistent support.
I express my sincere thanks to the Dean of CABM, Dr. D. Kumar without whose support
I would not have been successful. I am thankful to Dr. B.K.Kumbhler, Dean Post
Graduate Studies for providing me the necessary research facilities.
I owe a sense of indebtness to all the staff of Big Bazaar, Lucknow for providing necessary
help, cooperation and facilities during the course of my project. This acknowledgement
would be incomplete if I don’t mention a special regard to my family members, my friends,
my seniors, batch mates, loving juniors, administrative staff of my college, and all those
who have motivated me to perform better than the best.
Last but not the least I thank the ALMIGHTY for blessing me with enough patience,
endurance and strength in accomplishment of the Endeavor.
Pantnagar Monika
Chauhan
EXECUTIVE SUMMARY
The retailers are facing a keen competitive market place and as a consequence of that they find many difficulties to differentiate their stores on the basis of product, place, people, price and promotion. Retail store elements such as color, lighting and visual merchandising have always been considered as having immediate effects on the buying decision making process. The present study has been undertaken to determine the important factors of visual merchandising which influence consumer’s buying behaviour and in-store promotion activities.
During the study, customers visiting apparel section of Big Bazaar, Lucknow were surveyed. The study reveals that visual merchandising practices certainly influence customers’ buying behavior. The results proved that there was relationship between customers’ buying behavior and in-store form/mannequin display, promotional signage and window display. Since these tools of visual merchandising significantly influence customers’ buying behavior, retailers should continuously reinforce their usage to create favorable shopping environments to influence the customers. The study also provided insights about types of visual merchandising that can influence customers’ buying behaviors. Three most important factors of visual merchandising namely attractiveness of window display, innovative assortments and cleanliness and neatness of store/ store environment have been identified. Various visual merchandising techniques like graphics and signage, fixtures, props, lighting and space management have been identified. It was also observed that displays and signage play a very important role in the purchase process. The study also elucidates the relationship between impulse buying and visual merchandising. Visual merchandising practices serve as stimuli and ultimately motivate customers to make an unplanned purchase decision upon entering the store thus, significantly influencing customers’ impulse buying behaviors.
The study indicates that the activities of visual merchandising influence the behavior of the customers and create a change in the sales performance. Visual merchandising can, by attracting more customers, increase the traffic in the store, which ultimately increases the sales figures. Hence, visual merchandising has the capability to invite people to enter the store, which increases the traffic in it, and thus influences the sales performance.
With the business of fashion in the country getting more competitive, visual merchandising is the only differentiator, especially in a scenario where consumers encounter the same fashion designs almost uniformly everywhere. Thus, the application of more attractive visual merchandising techniques will help to obtain better results.
TABLE OF CONTENTS
S. No Title Page No.
Acknowledgements i
Executive Summary ii
Table of Contents iii-v
List of Exhibits vi-viii
List of Figures ix
1 INTRODUCTION 1-6
1.1 Background 1
1.2 Visual Merchandising 1-5
1.2.1 Role of Visual Merchandising 2-3
1.2.2 Tools of Visual Merchandising 3-4
1.2.3 Visual Merchandising: Current Trend and Future Prospects 4-5
1.3 Problem Statement 5-6
1.4 Objectives 6
2 COMPANY PROFILE 7-13
2.1 Background 7
2.1.1 Group Vision 7
2.1.2 Group Mission 7-8
2.1.3 Corporate Statement 8
2.2 Future Retail 8
2.3 Pantaloon Retail India Limited 9
2.4 Big Bazaar 9-13
2.4.1 Product Range in Big Bazaar 10
2.4.2 Significant Features of Big Bazaar 10-11
S. No Title Page No.
2.4.3 Timelines 11-13
3 REVIEW OF LITERATURE 14-16
4 RESEARCH METHODOLOGY 17-20
4.1 Research Design 17
4.2 Information Required 17
4.3 Data Source 17-18
4.3.1 Secondary Data 17
4.3.2 Primary Data 18
4.4 Area of Study 18
4.5 Sampling Plan 18-19
4.5.1 Sampling Frame 18
4.5.2 Sampling Unit 18
4.5.3 Sample Size 19
4.5.4 Sampling Technique 19
4.6 Research Instrument 19
4.7 Data Analysis 19-20
4.8 Limitations of Study 20
4.9 Duration of Study 20
5 RESULTS AND DISCUSSION 21-52
5.1 Demographic Variable 21-25
5.1.1 Customers’ Status 21-25
S. No Title Page No.
5.2 Behavioural Variable 26-46
5.3 Whispering Window 47
5.4 Visual Merchandising at Big Bazaar 47-49
5.4.1 Interior Design 47-48
5.4.2 Exterior Design 48-49
s5.5 Proposed Model and Suggestions to Increase Footfall and Consequently Conversion Rate in the Store using Visual Merchandising
49-52
5.5.1 Key To Symbols 53
6 CONCLUSION 54-55
7 SUGGESTIONS 56
8 Bibliography 57-58
Annexure x-xiv
Vita
LIST OF EXHIBITS
S. No Exhibit No. Title Page No.
1. Exhibit 5.1 Percentage of Male and Female Customers Visiting Big Bazaar
22
2. Exhibit 5.2 Comparison of Age of Customers Visiting Big
Bazaar
23
3. Exhibit 5.3 Comparison of Educational Qualification of
Customers Visiting Big Bazaar
23
4. Exhibit 5.4 Comparison of Occupation of Customers Visiting
Big Bazaar
24
5. Exhibit 5.5 Comparison of Income of Customers Visiting Big
Bazaar
25
6. Exhibit 5.6 Comparison of Family Size of Customers
Visiting Big Bazaar
25
7. Exhibit 5.7 Comparison between Places of Purchase 26
8. Exhibit 5.8.1 Time of Purchase 27
9. Exhibit 5.8.2 Time of Purchase 27
10. Exhibit 5.9 Mode of Purchase 28
11. Exhibit 5.10 Percentage of Monthly Income Spent on Total
Household Shopping
29
12. Exhibit 5.11 Percentage of Income Spent on Purchase of Apparels
29
S. No Exhibit No. Title Page No.
13. Exhibit 5.12 Reasons for Visiting an Organized Retail Outlet 30
14. Exhibit 5.13 Factors Affecting Purchase of Apparels 31
15. Exhibit 5.14 Percentage of Customers Paying Attention to Displays and Signage
32
16. Exhibit 5.15 Percentage of Customers who get Help from
Displays and Signage
32
17. Exhibit 5.16 Percentage of Customers who Try New Apparels 33
18. Exhibit 5.17 Percentage of Customers who Feel that Displays
Attract More Attention
34
19. Exhibit 5.18 Reasons for Choosing a Particular Store 35
20. Exhibit 5.19 Relationship of Color, Lighting, Ambience and Attractive Visuals with Time Spent in Store
36
21. Exhibit 5.20 Effect of Good Interiors and Display on Buying Behavior
36
22. Exhibit 5.21 Percentage of Customers who Ask for
Availability of Product
37
23. Exhibit 5.22 Comparison of Method of Buying Apparels 38
24. Exhibit 5.23 Connection of Visual Merchandising and Marketing of Product
39
25. Exhibit 5.24 Effect of Visuals and Display of Apparels on Final Buying Decision
39
26. Exhibit 5.25 Relationship between Visual Merchandising and Impulse Buying
41
27. Exhibit 5.26 Attractiveness of VM Techniques 42
S. No Exhibit No. Title Page No.
28. Exhibit 5.27 Factors of Visual Merchandising 43
29. Exhibit 5.28 Frequency of Purchase 44
30. Exhibit 5.29 Reasons for Entering Big Bazaar 45
31. Exhibit 5.30 Percentage of Customers who Purchased any Apparel during the Visit
46
32. Exhibit 5.31 Effectiveness of Visual Merchandising
Techniques Applied by Big Bazaar
46
LIST OF FIGURES
S. No Figure No. Title Page No.
1. Figure 5.1 A Model of Impulse Buying Process 40
2. Figure 5.2 Model to Increase Footfall and
Consequently Conversion Rate in the
Store using VM
52
1. INTRODUCTION
1.1 BACKGROUND
A successful retailing business requires that a distinct and consistent image be created in
the customers’ mind that permeates all product and service offerings. A retail outlet is an
investment made to generate maximum sales and henceforth profits to the organization. It is
usually “THE” focus point which attracts customers. The interior design within store can
maintain customer interest, encourage customers to lower their psychological defences and
assist in easy purchasing. Therefore, marketers have recognized that visual merchandising
in retailing makes significant effect on customers’ buying decisions.
Most points of sale in the market of fashion today offer free access to their merchandise,
which means that a customer does not need to ask the sales personnel for assistance and can
independently approach the offered merchandise. The consequence of this is that
consumers are not influenced anymore by a sales person but are influenced by the way the
merchandise is exposed. Visual merchandising can help create that positive customer image
that leads to successful sales. It not only communicates the store’s image, but also
reinforces the stores advertising efforts and encourages impulse buying by the customers.
1.2 VISUALMERCHANDISING
“Eighty percent of our impressions are created by sight; that is why one picture is worth
a thousand words”...
Visual merchandising can be defined as everything the customer sees, both exterior and
interior, that creates a positive image of a business and results in attention, interest, desire
and action on the part of the customer. A story can be told that communicates to the
prospective customer what the store is all about. It includes the dramatic presentation of
merchandise as well as other important, subtle features that create the store’s overall
atmosphere.
In tangible terms, it includes not only the products on sale but also the decor, the shop floor
and ceiling, restrooms and trial rooms, staff uniforms, lipstick color of female personnel
and tie knots of male personnel. It is also inclusive of the attitude of your personnel who
interact with customers. Hence, everything that makes an impact on the perspective
customer is part of visual merchandising.
Visual merchandising has become a natural component of every modern point of sale and is
characterized by the direct contact between merchandise and clients; it helps clients to
easily approach goods visually, physically, mentally and intellectually without the help of a
sales person (Ravazzi, 2000).It is seen as an additional service, and therefore it is relevant
for every modern shop, no matter what kind of store it is or what dimension the store has.
The importance of visual merchandising as an essential instrument of communication for
the retailer and manufacturer is derived basically from the demand of the customers.
Visual merchandising is therefore believed to provide a fundamental contribution to a point
of sale: it is a tool to valorize a product, a product family, a section, or the point of sale as a
whole. It is a combination of methods that give the product the ability to be active; thanks
to the way it is presented. Its ultimate goal is to increase profitability (Pisani, 2004).
Visual merchandising is a possibility for a shop to make their merchandise move towards
the customer.
If handled well, visual merchandising improves the commercial functionality of the point of
sale, develops the commercial productivity of the point of sale (improves the selling per
personnel, per square meter etc) and increases its economic efficiency (accelerate rotation,
increase selling) (Ravazzi, 2000).
1.2.1 ROLE OF VISUAL MERCHANDISING
The basic objective for visual merchandising is a desire to attract customers to a place of
business in order to sell the merchandise. Visual Merchandising is an important support for
fashion retail operations. It gives the business an edge over competition. Strategically used,
visual merchandising can even create a brand identity. It establishes a connection between
merchandise and fashion.
Visual Merchandising is a technique commonly and rightly called “Silent Salesman” and is
widely used in market to increase footfalls and attract shoppers and make shopping a
pleasant experience to one and all. The right kind of Visual Merchandising boosts the sales
graph rise upwards. This is achieved by creating an environment not only to attract a
customer but also to retain his/her interest, create desire and finally augment the selling
process. Generally, the store makes use of a publication generated by them called the VM
guidelines. These guidelines discuss in detail how the store is set up ranging from what type
of fixtures to use in each area, use of store logo to distance of shelves from each other and
many more.
These guidelines are based on a Visual Plan. The visual plan is an actual photograph, a
hand drawn illustration or graphic presentation of a display. It is also known as a plan-o-
gram.
A plan-o-gram is nothing more than a picture of how various fixtures, shelves and walls
will present your merchandise. It is a simple but a very powerful concept because it takes
into consideration research on buying habits of consumers.
Creating a plan-o-gram forces the retailer to carefully evaluate which products go where
and how many will be displayed. It also includes building and designing a store space that
understands the theme, functionality and commercial viability of the fashion retailer. An
effective store design can in many cases bring about much more sales than a substantial
expenditure on an advertisement campaign.
1.2.2 TOOLS OF VISUAL MERCHANDISING
Broadly these comprise of fixtures, props, lighting, graphics and signage.
Fixtures: These include fascia design, interior store design, window and entrance
Exhibit 5.13 Factors Affecting Purchase of Apparels
5.2.8 Attention Paid to Displays and Signage: It is clear from exhibit 5.14 that 92 percent
of customers pay attention to displays and signage while only eight percent do not pay any
attention. Signage are the most important means by which a customer gets to know about
the price of product and the discount offered on that product. They are simple and easy to
understand. Display windows are an ideal opportunity to attract customers’ attention and
drag them into your store. Customers give three to five seconds of their attention to window
display. Therefore, the retailers’ visual message should be conveyed to the customer in that
short period of time.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attention Paid to Displays and Signage
Per
cent
age
of C
usto
mer
s
Exhibit 5.14 Percentage of Customers Paying Attention to Displays and
Signage
5.2.9 Role of Displays and Signage: The exhibit 5.15 indicates that signage and displays
help 87 percent of customers during shopping. As much as 80 percent of all sales are
generated at point of purchase by signage, displays and events within the store. The signage
and displays provide information about product, price and various schemes and discounts
offers. It also provides ease in shopping. Displays also provide an opportunity for the
customers to have the “Touch and Feel Effect” which is very important to make a purchase
decision, especially in case of Indian consumers. The remaining13 percent customers said
that signage and display do not assist while shopping.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Role of Displays and Signage
Per
cent
age
of C
usto
mer
s
Exhibit 5.15 Percentage of Customers who get Help from Displays and
Signage
5.2.10 Tendency towards Change - Try New Apparel: It is clear from exhibit 5.16 that
81 percent of customers said that they would try new apparels which are on display while
19 percent do not try and prefer their usual garments. Since, a majority of customers have a
tendency to adapt change therefore, the retailers can make use of this opportunity. They can
make use of effective visual merchandising techniques and can attract customers to buy
new apparels.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers who Try New Apparels
Per
cent
age
of C
usto
mer
s
Exhibit 5.16 Percentage of Customers who Try New Apparels
5.2.11 Displays Attract More Attention: The exhibit 5.17 clearly indicates that 87 percent
of respondents feel that apparels on display attract more attention as compared to 13
percent who contradict the same. According to Jiyeon Kim (2003), window display may
influence, at least to some degree, consumers’ choice of a store when they do not set out
with a specific purpose of visiting a certain store and purchasing a certain item. The initial
step to getting customers to purchase is getting them in the door. Thus, the retailers can use
displays to attract customers and compel them to buy the apparels and part with their hard-
earned cash.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Displays Attract More Attention
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.17 Percentage of Customers who Feel that Displays Attract More
Attention
5.2.12 Reason for Choosing a Particular Store: The exhibit 5.18 clearly indicates that
even though the brands are same in different stores but 32 percent customers feel that better
quality is the main reason for choosing a particular store. Another, 21 percent customers
said that offers and discounts are the main factors which help them to decide which store to
chose. Store environment/ visual merchandising and shopping experience are the main
reasons for visiting a particular store in case of 17 percent and 22 percent customers
respectively. Though, visual merchandising and shopping experience are not the main
reasons but together with attractive offers and discount they contribute 60 percent to store
choice decision. Effective visual merchandising together with good quality products can
attract good number of customers.
.
Quality
Less e
xpensive
Better
offers an
d dicounts
Shopping experi
ence
Store
environment/v
isual m
erchandisin
g
0%5%
10%15%20%25%30%35%
Reasons for Choosing a Particular Store
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.18 Reasons for Choosing a Particular Store
5.2.13 Relationship of Color, Lighting, Ambience and Attractive Visuals with Time
Spent in Store: The exhibit 5.19 illustrates that 69 percent of the customers feel that color,
lighting, ambience and attractive visuals make them spend more time in store while 31
percent customers feel that various attributes of visual merchandising do not have any
relation with the time spent in the stores. Retailers are facing a keen competitive market place
and as a consequence of that they find many difficulties to differentiate their stores on the basis of
product, place, people, price and promotion. Retail store elements such as color, lighting and visual
merchandising have always been considered as having immediate effects on the buying decision
making process. The emphasis has moved away from in-store product displays, towards elements
that excite the senses of shoppers such as flat screen videos or graphics, music, smells, lighting and
flooring that tend to capture the brand image or personality and help to create an unique
environment and shopping experience (McGoldrick, 1990; Marsh, 1999).
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
Response of Customers
Per
cent
age
of C
usto
mer
s
Exhibit 5.19 Relationship of Color, Lighting, Ambience and Attractive
Visuals with Time Spent in Store
5.2.14 Effect of Good Interiors and Display on Buying Behavior: The exhibit 5.20
reveals that 73 percent of customers feel that good interiors and display affect their buying
behavior and stimulate to shop more. The reason behind this is that apparels on display
attract more attention and have a positive impact on our buying behavior. According to
Kotler, there has been a growing recognition that store interiors and exteriors can be
designed to create specific feelings in shoppers that can have an important cuing or
reinforcing effect on purchase. It is remaining 27 percent said that their buying behavior is
not affected by good interiors and display.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
Effect of Good Interiors and Display on Buying Behaviour
Per
cen
tag
e o
f C
ust
om
ers
Exhibit 5.20 Effect of Good Interiors and Display on Buying Behavior
5.2.15 Availability of Products: It is clear from exhibit 5.21 that only seven percent of
customers said that they purchase whatever is available on display while the remaining 93
percent said they ask the store person for availability of new design/style of their choice. In
today’s world all customers want to get the best from the hard earned money they spend to
purchase any apparels or any other product. So, availability of the product of customers’
choice is very important.
Exhibit 5.21 Percentage of Customers who Ask for Availability of Product
5.2.16 Method of Buying Apparels: It is clear from exhibit 5.22 that majority 45 percent
of customers said that they prefer the apparels to de displayed on racks and hangers.
“Touch and Feel” effect is very important criteria for Indian customers. Apparels displayed
Ask for availability Purchase whatever is available0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Availability of Products
Per
cent
age
of C
usto
mer
s
on racks and hangers are easy to touch and feel. Also, the mall culture sets a limitation on
the retailers for manually displaying each and every article in front of the customers.
Hence, customers prefer apparels to be displayed on racks and hangers. It is clear from
exhibit 5.22 that there is still a large population (23%) that feels that store person should
display each and every item while 24 percent customers feel that a store person should
assist them only when needed. The electronic and print media are not so popular and
contribute hardly two percent. Though, only six percent customers said that they prefer
displays with the help of dummy but 39 percent customers have chosen it as their second
preference along with one or the other method.
Store p
erson disp
laying e
ach an
d every
item
Store p
erson ass
isting o
nly when need
ed
Display
ed in racks a
nd hangers
Display
ed on dummy
Display
ed with help of el
ectronic a
nd print m
edia
0%10%20%30%40%50%
Method of Buying Apparels
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.22 Comparison of Method of Buying Apparels
5.2.17 Connection of Visual merchandising and Marketing of Product: The study
indicated that 89 percent of customers feel that by applying effective visual merchandising
techniques the companies can market their products in a better way. Exhibit 5.23 depicts
that only five percent of customers said that effective visual merchandising has no effect on
marketing of products. The remaining six percent said that they had no idea regarding effect
of visual merchandising on marketing of products. Today’s fast paced, competitive and
chaotic consumer world provides a multitude of challenges for retailers. With the help of
effective visual merchandising retailers can distinguish their products and can market them
in a better way. It makes the products more presentable and attractive.
Yes No Can't say0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Customers' response for Visual Merchandising to Promote Marketing of products
Per
cent
age
of C
usto
mer
s
Exhibit 5.23 Connection of Visual Merchandising and Marketing of Product
5.2.18 Effect of Visuals and Display of Apparels on Final Buying Decision: It is clear
from exhibit 5.24 that 67 percent of customers said that their final buying decision is
affected by visuals and display of apparels while 33 percent customers said that visuals and
display have no effect on their final buying decision. Visual merchandising sets the context
of the merchandise in an aesthetically pleasing fashion, presenting them in a way that
would convert the window shoppers into prospects and ultimately buyers of the product.
Various tools of visual merchandising like graphics and signage, window display,
mannequins and dresiforms and lighting can be effectively used to influence the final
buying decision.
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%
Effect of Visuals and Display of Apparels on Final Buying Decision
Per
cent
age
of C
usto
mer
s
Exhibit 5.24 Effect of Visuals and Display of Apparels on Final Buying Decision
5.2.19 Relationship between Visual Merchandising and Impulse Buying: During the
study, it was found that 56 percent customers said that effective visual merchandising
induces impulsive buying. Exhibit 5.25 illustrates that remaining 44 percent of customers
said that visual merchandising does induce impulsive buying. Retail setting, such as visual
merchandising, therefore, can influence consumers’ impulse buying by providing
information or reminding needs as well as producing positive feelings. At the stages of the
impulse buying process, retailers can attempt to provoke consumers’ desire for the
products, and the awareness of the products, which can satisfy the desire, can be achieved
by browsing and being exposed to the stimuli, such as visual merchandising (Figure 5.1).
The positive impulse buying experiences contribute to establishing store loyalty and
customers’ perceived value and satisfaction influences future buying decisions.
Figure 5.1: A Model of Impulse Buying Process
Source: Churchill &
Peter (1998)
Yes No0%
10%
20%
30%
40%
50%
60%
Relationship between VM and Impulse Buying
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.25 Relationship between Visual Merchandising and Impulse Buying
5.2.20 Attractiveness of VM techniques: The exhibit 5.26 indicates that the most popular
visual merchandising technique is the use of graphics and signage (28%). A good sign
provides the most information in the fewest possible words. Signs
advertise vendors, colors, styles, quality, prices, offers and discounts.
They can be used to explain customer benefits and describe
merchandise features. The second in line is the use of props (25%). Props include
dresiforms and mannequins which catch customers’ attention easily. They are used in
visual merchandising to tell a story about the product, the merchandise
concept or the store itself. Another, 21 percent customers said that they prefer
fixtures such as gondolas, tables, cubes, waterfalls and other racks,
display cases, and manufacturer point-of-purchase displays. It is clear
from exhibit 5.26 that space management is an important technique for
13 percent customers while proper lighting is essential in case of seven
percent customers. Another six percent customers revealed that they
are attracted most by out-of-box thinking.
Graphics
and sig
nageFix
turesProps
Lighting
Space
man
agemen
t
Out-of-b
ox thinkin
g0%
5%
10%
15%
20%
25%
30%
Attractiveness of VM Techniques
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.26 Attractiveness of VM Techniques
5.2.21 Factors of Visual Merchandising: During the study, seven factors of visual
merchandising namely cleanliness and neatness of store, attractiveness of display window,
attractiveness of shop fittings, innovative assortments, lighting in the store, music and
display of apparels using dresiforms and mannequins were identified. It is clear from
exhibit 5.27 that the most preferred factor is cleanliness and neatness of store i.e., store
environment (25%) followed by attractiveness of display window (24%). Innovative
assortment is also a very important factor (40%) and is ranked at number two. It is seen that
from the identified factors music is least preferred. The retailers can make use of these
factors to attract customers to their stores. The various factors of visual merchandising if
applied in harmony can be used as a unique selling proposition.
I II III IV V VI VII0
10
20
30
40
50
60
70
Cleanliness and Neatness of store Attractiveness of Display Window Attractiveness of the Shop Fit-tings Innovative AssortmentsLighting in the StoreMusic Display of Apparels using Dresi-forms and Mannequins
Rank Given by Customers
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.27 Factors of Visual Merchandising
5.2.22 Frequency of Purchase: The exhibit 5.28 illustrates that 23 percent customers
purchased one or the other apparel from Big Bazaar within two to three months while 18
percent of customers said that they buy after six months. 0nly 17 percent customers
revealed that they buy any apparel from the stores within a month as compared to14 percent
who buy within four to six months. A large population of customers 28 percent said that
they rarely purchase their apparels from Big Bazaar. The main reason for not purchasing
apparels from Big Bazaar quoted by customers was that they did not found what they were
looking for. Poor quality of fabric and designs was also quoted as the reason for not buying
by some customers.
Within a month Within 2-3 months
Within 4-6 months
After 6 months Rarely0%
5%
10%
15%
20%
25%
30%
Frequency of Purchase
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.28 Frequency of Purchase
5.2.23 Reasons for Entering Big Bazaar: It is clear from exhibit 5.29 that 54 percent of
customers said that Big Bazaar makes a part of the store that they visit regularly. It means
that these 54 percent customers are loyal and regular customers of Big Bazaar. Another 18
percent of customers said that the reason for visiting the store is that they have been
influenced by friends and relatives. Nine percent of customers said that they are attracted by
schemes and discounts while seven percent customers said that they were attracted by
something nice in the display. Music was not a reason for entering the store in any case.
Thus, the retailers can make use of effective visual merchandising to attract the potential
customers and convert them into regular one.
Visit re
gular
ly
Someth
ing I find only h
ere
Looks promisin
g
Attracted
by music
Seen so
mething n
ice in
display
Influenced
by frie
nds
Quality p
roducts
Attractive
schem
es an
d discounts
0%
10%
20%
30%
40%
50%
60%
Reasons for Entering Big Bazaar
Per
cent
age
of C
usto
mer
s
Exhibit 5.29 Reasons for Entering Big Bazaar
5.2.24 Purchased any Apparel During the Visit: The exhibit 5.30 illustrates that 38
percent of customers had purchased one or the other thing from apparel section while 25
percent said they did not purchased anything. The remaining 42 percent said they can’t say
anything right now. The intention of this question was to realize, why people who had
entered the store, did not buy anything and whether those factors which influenced the
people not to purchase, were factors of visual merchandising or not. It was found that the
main reason why people did not purchase was the same in all of the considered stores,
namely “I did not find what I was looking for”. The answer that was chosen the second
most often was “I did not like anything”. Unfortunately, the study was not able to find any
reason associated to visual merchandising for not purchasing.
Yes No Can't say0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Customers' Response to Purchase of Any Apparel During the Visit
Perc
enta
ge o
f Cus
tom
ers
Exhibit 5.30 Percentage of Customers who Purchased any Apparel during
the Visit
5.2.25 Effectiveness of Visual Merchandising Techniques Applied by Big Bazaar: It is
clear from exhibit 5.31 that 71 percent of customers feel that visual merchandising
techniques applied by Big Bazaar are effective while 17 percent said that some
improvement is needed. Another 8 percent of customers do not like the visual
merchandising techniques applied by Big Bazaar as compared to four percent who had no
idea.
Yes No Needs improvement Can't say0%
10%
20%
30%
40%
50%
60%
70%
80%
Effectiveness of VM Techniques
Per
cent
age
of C
usto
mer
s
Exhibit 5.31 Effectiveness of Visual Merchandising Techniques Applied
by Big Bazaar
5.3 WHISPERING WINDOW
During the study, it was found that now-days retailers are using whispering windows to
attract customers into their stores. With subtle and unobtrusive audio the store windows can
attract new customers; enhance the shopping experience; increase traffic flow; and can
becomes part of in-store sales and retail promotion campaigns. They can be used to
introduce the benefits of a new product, or build brand awareness. Instead of using sound as
just a filler or background noise, Whispering Window evenly distributes sound across any
solid surface and can be tied into any retail promotion throughout the store. Whispering
Windows can also be used outside as it is weather and tamper resistant and can even
automatically adjust its volume according to the level of nearby background noise.
Whispering Window is small, easily hidden and can be used on any solid surfaces like
glass, windows, endcaps, mannequins, shelves, walls, floors and ceilings.
5.4 VISUAL MERCHANDISING AT BIG BAZAAR
5.4.1 INTERIOR DESIGN
“The interior of a Big Bazaars comprises of the living space of the store which includes
ceiling, walls, flooring and lighting, fixture and fittings”. The elements of the interior
design are selected economically. The general design of the interior is in uniform with the
exterior. It is designed as Indian hyper market that promises one stop shopping. Big Bazaar
is designed as agglomeration of bazaars with different sections selling different categories.
The “U” shaped section and islands have proved to be more appropriate for Indian context
than long aisle.
Store Design: Design is consistent and self expressive. Design is to get as much
people in to door as possible. Big Bazaar is designed as a self service store and
makes ample utilization of resources.
Store Layout: Big Bazaar has been established around the idea of contemporary
Bazaar. Stocks are organized and not hung for display. The billing counter is near to
the exit, so it is easy to leave after purchasing. The model is based on maintaining
margin and drawing customer in masses, enough to get the buzz going around the
store. The products in Big Bazaar are arranged in order and placed segment wise
Atmospherics: It refers to the design of an environment via visual communication,
lighting, Color, music and Scent to stimulate customer perceptual and emotional
responses, and attractive holding so as to affect their purchase behavior. The whole
big bazaar is centrally air conditioned.
Visual Merchandising: Posters of merchandising and name is displayed in each
segment. Price tag and the offer price are shown with each product. The floor is neat
and clean. They use danglers and hoardings at the entrance of the store as this may
be a deciding element in a consumer’s decision to enter a store. It uses various
visual merchandising techniques like remarkable window display and mannequins
for creating a shopping environment. Signage which indicate the cost and discount
offers are placed near each and every product.
Lighting: Bright lights are used which make reflection on the products. Light were
fixed in ceiling and are used tube lights to create reflection.
Color: Mostly blue, orange and white colors with red strips are used.
Music: Light back ground instrumental music is usually played to attract customers.
Announcement: They announce offers and schemes to the customers so that they
can know about the available schemes and make best out of their shopping.
5.4.2 EXTERIOR DESIGN
The exterior of Big Bazaar includes the exterior of the stores like the entrance of the store,
architectural design of the building and window. The exterior design of Big Bazaar is easily
visible from the distance and it can be distinguished from its competitors. The exterior is
attractive enough to encourage customers to enter in to the store. Big Bazaar uses harmony
between the elements of the exterior of the store in order to deliver desired store image.
Window display is used as an effective medium to introduce new offerings of the company,
so special attention is given in designing windows of the store. The entrance of the store is
designed to welcome shoppers and to provide easy accessibility.
Sign Board: The big sign board is usually seen on the top of the entry and exit gate.
The board is in blue, Orange color and has Big Bazaar written on it.
Front Gate: It is completely made up of glass. Entire outlet was visible from
outside and looks attractive. A censor located in the front gate checks the customers.
Locality: Retail site is located at the main areas of the city. This helps them to
create sales.
Parking: Good parking facility which is free of cost is provided to the customers.
Customer Service: Customer service is the set of activities and programme
undertaken by retailer to make the shopping experience good. Store person are
available to assist the customers during shopping. Staff of the Big Bazaar is
properly dressed which helps in easy identification. Apart from this, Big Bazaar
provides a wide range of services to its customers like Trial rooms, elevators,
security, baggage counter, trolleys to provide ease in shopping. They even provide
the customers with after sale services in case of buying electronic items.
5.5 PROPOSED MODEL AND SUGGESTIONS TO INCREASE FOOTFALL AND
COSEQUENTLY CONVERSION RATE IN THE STORE USING VISUAL
MERCHANDISING
The design of your store has a huge impact on success as a retailer. Even some simple
visual changes can immediately have dramatic results. As designer Brian Dyches of Retail
Resource Group says, “Most snowboarding stores could increase their sales by ten percent
overnight, simply by changing their light bulbs.” Many other effective changes can be made
easily and without major expenditure. Here’s some suggestion which can be applied in the
stores:
1. Consider the Space
Space management is required. The best location for displays, how lighting is arranged, and
many other design components are largely dependent on the size, shape, and sight-lines you
are working with.
2. Entice
Visual merchandising actually starts on the street outside the store. Creative and interesting
window displays catch the eye of people walking by and draw them into the store. Change
the window displays with the seasons, and always reflect the newest or best-selling items.
3. You Only Have Seven Seconds
It is often seen that a customer walks into a store, takes a lap around, and leaves. Maybe
he/she was "just looking" -- more than likely, though, something about the store or the
merchandise displays turned him/her off. No customer spends money where they don’t feel
comfortable and they decide how they feel in under seven seconds. At that point you either
still have a chance for a sale, or you can forget them. So get rid of everything that might
create a negative first reaction or resistance to entering the store. A common mistake is
putting displays right up to the lease line. This acts as a visual block. Leave at least six feet
between the entrance and your first display. Don’t overload store with displays or anything
that blocks sightlines to the back of the store.
4. Inspire - Create product displays that shows the customer how an item might fit into
their everyday life. In a clothing store it might mean dressing mannequins. Customers are
more likely to purchase if they can imagine themselves using/wearing the product.
5. Identify - Shoppers are more likely to purchase if they can find what they are looking for
and easily identify the price. Product should be organized in logical groupings -- whether
by item type, color, or some other characteristic, and signage and product descriptions.
6. Add-on - Point-of-sale add-ons (also known as "impulse buys") can generate extra
money in sales. Think of small items that people usually forget -- batteries, light bulbs, gift
wrapping, etc -- these small items can be placed near or at the register as a gentle reminder
to the customer.
7. Lead Your Customer
Your goal is to entice the customer into the main selling area and then slowly past your
merchandise displays to the back of the store. Think of it like a fish trap. What leads
customers most effectively is their eyes. Where their eyes stop, their legs follow. The first
thing to grab their attention should be your main visual display located about a third of the
way into the store. This display should feature your most exciting new products, cross-
merchandised to show a range of items. Change the display regularly to reassure your
regular customers you are constantly updating merchandise.
From that point should be clear sight-lines to other displays. The eye can only take in eight
feet of visual information at a time. Any longer displays need to be visually broken up. This
is particularly the case on wall displays. Provide a break by using a contrasting color or
product for a strong visual impact.
Almost every customer subconsciously moves to their right. With this in mind, think about
the circulation path you want them to make. The best path is circular. Don’t position any
display so it blocks the circulation either physically or visually. And never align your
displays parallel to the circulation, particularly if you are using a central aisle, or the
customers’ eyes run quickly over the display without stopping. Instead angle your displays
against the visual plain, but in such a way as to help define the circulation path.
8. Your Most Powerful Tool is Light
The eye naturally gravitates towards brightness, so make your store increasingly bright as it
goes back. The rear of the store should be roughly twice as brightly lit as the front. All your
displays should be spotlit. Use quality light bulbs and fittings this will quickly pay for itself
with increased sales.
9. Use Fitting Rooms Well
It is always better to have fewer spacious fitting rooms than a greater number of cramped
ones. Keep them spotlessly clean. Using soft light and color scheme, flatter the customer.
You want them to see how good they look, not the effects of three hours’ shopping. Fitting
rooms are a sales opportunity. Use the walls to highlight special promotions or new product
information. Put your logo and store name prominently in each fitting room (as well as
around your cash wrap) to enhance your store identity. One effective trick is to use low-cost
aromatizing systems to add a familiar and comforting pine scent.
10. Hands-On Selling
Stack the boards to allow easy access so customers. The same is true for bindings. Bindings
can be simply laid out on a table so they can be tried on with a pair of boots and easily
compared to other bindings for size and weight.
Figure: 5.2 Model to Increase Footfall and Consequently Conversion Rate in the Store
using VM
5.5.1 KEY TO SYMBOLS:
1- Entrance
2- Main display window (Whispering window)
3- Mannequins on display window (Whispering window)
4- Central dummy formations
5- Four shelved rack (For traditional wear)
6- Hangers for traditional wear
7- Whispering Dummy for traditional wear
8- Four shelved racks with dresiforms on top (For western wear)
9- Hangers for western wear
10- Storeroom
11- Tit bit basket (For socks/ handkerchief/ caps/ mufflers etc.)
12- Hanger cum shelves for intimate apparels
13- Hanger cum shelves for nightwear apparels
14- Four shelved rack for accessories
15- Hangers for fresh arrivals
16- Central dummy displaying fresh arrivals
17- Four shelved rack containing mix items for sale
18- Cash counter
19- Whispering Dummy for fresh arrivals
20- Cashier
21- Store person to assist only when needed
22- Security staff outside trial room
T1- Trial Room1
T2- Trial Room 2
Note: Arrows indicate path of movement
6. CONCLUSION
“Atmospheres are a factor present in every buying situation. Until recently, atmospheres
developed casually or organically. Atmospherics, however, is the conscious planning of
atmospheres to contribute to the buyer’s purchasing propensity. As other marketing tools
become neutralized in the competitive battle, atmospherics is likely to play a growing role
in the unending search of firms for differential advantage”. (Kotler, 1973)
An important finding of this study was that visual merchandising practices certainly
influence customers’ buying behavior. The results proved that there was relationship
between customers’ buying behavior and in-store form/mannequin display, promotional
signage and window display. Since these tools of visual merchandising significantly
influence customers’ buying behavior, retailers should continuously reinforce their usage to
create favorable shopping environments to influence customers’ both in-store responses and
future store choice decisions. Retailers should put more efforts creating attractive and eye-
catching window display providing information regarding new products, fashion trends, or
coordination tips.
The findings of this study provided sufficient evidence that retailers can utilize visual
merchandising to increase desirability of products and to help customers being aware of the
products as well as to create favorable attitudes. The study also provided insights about
types of visual merchandising that can influence customers’ buying behaviors. Three most
important factors of visual merchandising namely attractiveness of window display,
innovative assortments and cleanliness and neatness of store/ store environment have been
identified.
A significant contribution of the present study is its elucidation of the relationship between
impulse buying and visual merchandising. When consumers are exposed to visual stimuli,
they more likely make purchase decisions on impulse. This suggests that the visual
merchandising practices, serve as stimuli that provoke a desire that ultimately motivates a
customer to make an unplanned purchase decision upon entering the store and thus
Note: In questions which have more than one answer tick a maximum of two options and rank them according to your preference.
Q1. From where do you buy your apparels?
a. Hyper Marketb. Mallsc. Shopping Complex/Exclusive Showroomsd. Ordinary Retailers
Q2. When do you prefer to shop?
a. Morning a. First week of monthb. Afternoon b. Mid of monthc. Evening c. Last week of monthd. After 8 PM d. Depending upon requirement
Q3. What is your mode of purchase?
a. Cash onlyb. Credit onlyc. Any of the above
Q4. What percent of your monthly income do you spend on shopping?
a. Less than 10 %b. 10-20 %c. 21 – 40 %d. Above 40%
Q5. What percent of this shopping is spend on apparels?
a. Less than 10 %b. 10-20%c. 21-40 %d. Above 40 %
Q6. What are the reasons for visiting an organized retail outlet?
a. Ambience / Store environmentb. Better qualityc. Less priced. Attractive offers, schemes and discountse. Varietyf. Any other
Q7.How important are the following factors while purchasing apparels?
Very important
Important Neutral Unimportant Very unimportant
PriceQualityCollectionVarietyVisual Merchandising
Q8. While visiting a store do you pay any attention to displays and signage?
a. Yesb. No
Q9. Does these signage and display help you in shopping?
a. Yesb. No
Q10. If Yes, then how?
Q11. Do you have a look on items on display and try anything new?
a. Yesb. No
Q12. Do the apparels on display attract more attention?
a. Yesb. No
Q13. If brands are almost same then what are the factors for visiting/choosing a particular store?
a. Qualityb. Less expensive as compared to other storesc. Better offers/ discounts/schemesd. Shopping Experiencee. Store environment, ambience and visual merchandising
Q14.Does color, lighting, ambience and attractive visuals make you to spend more time in store?
a. Yesb. No
Q15.Do good interior and display affect your buying behavior and stimulate you to shop more?
a. Yesb. No
Q16. Do you ask about the availability of products from the sales person or you purchase whatever is available
on display?
a. Ask for availabilityb. Purchase whatever is available
Q17. Which means do you prefer for buying the product?
a. Store person displaying each and every productb. Store person assisting you only when neededc. All product are displayed in racks and hangersd. Display with the help of dummye. Display with the help of electronic media and print mediaf. Any other
Q18. Do you think that by applying VM techniques the company can market its products in a better way?
a. Yesb. Noc. Can’t say
Q19. Do you think that your final buying decision is affected by visuals and display of apparels?
a. Yes b. No
Q20. Does effective visual merchandising induce impulsive buying on you?
a. Yesb. No
Q21. Which types of VM techniques are more attractive?
a. Graphics and signage ( Promotional/Location/Institutional/ Informational )b. Fixtures (interior store design, window and entrance door, flooring & ceiling,
display systems, merchandise display systems, stock keeping units and furniture)c. Props ( Dresiforms and mannequins )
d. Lightinge. Space managementf. Out-of-box thinking
Q22. Rank the following attributes of Visual merchandising on a scale of 1-9:
ATTRIBUTES RANK1) Cleanliness and Neatness of store2) Attractiveness of Display Window3) Attractiveness of the shop fittings4) Inventiveness of assortments5) Atmosphere/Spirit6) Attractiveness of the presentation of
clothes7) Lighting in the store8) Music9) Display of apparels using dresiforms and
mannequins
Q23. How often do you purchase your apparels from Big Bazaar?
a. Within a monthb. Within 2-3 monthsc. Within 4-6 monthsd. After 6 monthse. Rarely
Q24. What are the reasons / motivation for entering Big Bazaar store?
a. Big Bazaar makes the part of the store that I visit regularlyb. I was looking for something particular that I only found at Big Bazaarc. Because this store looks promisingd. I was attracted by musice. I have seen something nice in the displayf. Influenced by my relatives/friendsg. I find quality products hereh. Attractive schemes and discounts
i. Any other reason
Q25. Have you purchased anything (apparel) during this visit?
a. Yesb. Noc. Can’t say
Q26. Do you like the VM techniques applied by Big Bazaar?
a. Yesb. Noc. Needs improvementd. Can’t say
Q27. If no, then what are your suggestions for effective VM in Big Bazaar?
VITA
Monika Chauhan, the authoress of this manuscript, was born on 20th August, 1986 in Dehradun,
capital city of Uttrakhand. She has completed her High School and Intermediate examinations
from Central Board of Secondary Education in 2004. Further, she took admission in the College
of Home Science, G. B. Pant University of Agriculture and Technology, Pantnagar in 2005 batch
and obtained the degree of Bachelor in Science (Home Science) in June, 2009 with first division.
Thereafter, she got selected through CAT in 2009 and was admitted to G.B.Pant University of
Agriculture and Technology, Pantnagar for MBA (Agribusiness) degree in the College of
Agribusiness Management. She has successfully completed her summer training from Champion
Agro Limited, Rajkot, Gujarat on the topic “Feasibility Study for Organic Food Supply in
three major cities of Gujarat State”. She has been awarded the title of “Child Scientist” by
Government of Uttarakhand in the year 2002 for her work on “Biogas- A Renewable Source of
Energy”. She was also awarded Vice Chancellor’s Bronze Medal for academics in 2009. She is
also a recipient of the prestigious “Nagamma Shanta Bai Award” for Best Achiever in Rural
Work for the year 2008-09. In the month of November 2010, during campus placement she got