IMPACT OF VISUAL MERCHANDISING IN RETAIL OUTLET WITH

SPECIAL REFERANCE TO BIGBAZAAR

(September 2019)

Harini M, Dr.P.Nalini

Department of Management Studies, Kumaraguru college of technology, Coimbatore, India

Abstract - The purpose this paper is to study the 2. LITERATURE REVIEW

impact of visual merchandising in retail
marketing at Big Bazaar. The constructs taken in
the study are Store layout, Window display, color
and lighting, Store interior design, Signage and
ambience and consumer attention on buying
decission behavior. The study is experimental in
nature and is based on primary data collected
from personal interview to the customers by
voluntary sampling in which the data is collected
through the customers who volunteered to the
survey. The sample size of the study is 200
respondents. From the analysis made in the study
it is concluded that factors such as are Store
layout, Window display, color and lighting, Store
interior design, Signage and ambience and
consumer attention on buying decision behavior
impacts on visual merchandising.
KEYWORDS: Visual Merchandising-Buying
behavior
1. INTRODUCTION
Indian retail industry has emerged as one of the most
dynamic and fast-paced industries. Retail industry
accounts for over 10 percent of country’s GDP and
has nearly 8 percent of the employment. India is the
world’s fifth largest global destination in the retail
space. Retail market in India is projected to grow
from an estimated US$672 billion in 2017 to
US$1200 billion in 2021F. With the rising need for
consumer goods in different sectors including
consumer electronics and home appliances, many
companies have invested in Indian retail space in the
past few months. India’s retail sector investments
doubled to reach Rs 1300 crore (US$ 180.18 million)
in 2018.
Store layout is an important factor affecting
consumer behavior and a critical determinant towards
the creation of store image (Tlapana 2009). Store
layout design is a critical determinant towards the
creation of that store image, floor layouts are
extremely important because they strongly influence
in-store traffic patterns, shopping atmosphere,
shopping behavior, and operational efficiency (Baker
et al., 2002). Retailer’s store layout results in greater
consumer elaboration and more positive consumer
outcomes (Griffith, 2005)
Window display is a key moment for any shopper as
it is uninterrupted by sales staff and can be the make
or break as to whether a future sale is made,
(Ebster&Garaus 2011). Good shop window displays
are a mixture of theatre and visual advertising (Smith
2001). Display techniques are of major importance in
retailing, as they are the primary tools a shopkeeper
can use to exhibit products or services
Lighting and background music alter a consumer’s
perceptions and reactions to a store design (Baker et
al., 1992). Color and lightening as variable combine,
influence consumer attention. Colors do have effects
on human resource performance and cognitive
interpretation that lead to create desired consumer
reactions (Babin et al., 2003). Experimental research
proposes that cool-colored in store settings are
favored more over warm-colored store settings
(Crowley 1993)
The interior design of the store plays a vital role in
shopping experience. Proper signage, fixtures and
seating arrangements are few fundamental elements
 of store interior (Smith 2001). The interior design is
one of the key elements of visual merchandising.
The signs placed at different spots are considered
extremely significant as it helps the consumers with
the direction as well as the management in promoting
the brand (Yun and Good 2007). Factors such as in-
store background music, store display, scent, in-store
promotions, prices, shop cleanliness, shop density or
congestion and store personnel all make up the in-
store shopping environment, among others
Consumer behavior is the activity that people
undertake when obtaining, consuming and disposing
of products and services that they expect will satisfy
their personal needs (Blackwell et al., 2006
4. OBJECTIVES
• To study the impact of visual merchandising on
consumer buying decision
• To study the level of influence of visual
merchandising factors on consumer buying
decission among various demographic segments
• To suggest suitable strategies among the visual
merchandising elements, approach some ways to
increase the sales.
5. PROPOSED MODEL:
The idea behind the research was to analyze
how visual merchandising variables such as
store layout, window display, color &
lighting, store interior design, signage and
ambience affect in gaining consumer
attention
STORE
WINDOW
COLOR &
CONSUMER
STORE ATTENTION
SIGNAGE &
Figure 1 Proposed model
6. RESEARCH METHODOLOGY:
The research aims at studying the impact visual
merchandising in retail marketing at big bazaar. The
primary data for the study was obtained through
personal interview of the consumers. The primary
data was collected from sampling unit through well-
structured questionnaire. This will be questionnaire
based on five-point ratings where 1 means strongly
disagree and 5 means strongly agree. Secondary
data is the data that have been already collected
from other sources. Secondary data is collected
from journals, newspaper articles, government
publications and research papers and magazines for
research on impact of visual merchandising. The
sampling method used in this research is voluntary
sampling which is a type of non-probability
sampling method where the sample is taken from
the pardons where volunteers choose to complete
the survey. From the population the data was
collected from the voluntary customers. 200
responses were collected
7. DEMOGRAPHIC PROFILING:
With the help of percentage analysis, demographic
variables are identified in percent. The demographic
variables are age, gender, education, occupation,
family income per month is collected from the
customers of 200 respondents.
7.1 Classification of respondent based on Gender:
The classification of respondent based on Gender are
shown in the table, the gender is classified as Male
and Female respondents.
GENDER
MALE
FEMALE
Frequency
90 100 110
The frequency of the Gender contains 200 (two
hundred) respondents. In that 104 respondents are
female and 96 are male, which is 52% female
respondents and 46% male respondent
 7.2 Classification of respondent based on their
residing location: OCCUPATION
RESIDING
STUDENT
LOCATION Frequency Percent
HOME…
URBAN 97 48.5 BUSSINESS
Frequency
GOVERNME…
RURAL 103 51.5
PRIVATE…
Total 200 100
0 50 100 150
The frequency of the Occupation level contains 200
(two hundred) respondents. The majority is Private
employee with 116 respondents with 58% followed
RESIDING by Government employee with 28 respondents with
14% and home maker with 26 having 13%, business
LOCATION people of 21 respondents with 10.5% and students are
with 9 respondents with 4.5%.
RURAL Correlation between age of the customers and the
URBAN Frequency frequency of visit to the store:

90 95 100 105 AGE

FREQUENC
Y
The frequency of the respondents are 200 AGE 1 0.599
(two hundred) respondents. In that 103 respondents
belongs to rural area which contains the percentage
of 51.5% and 97 respondents are from urban which is
48.5% FREQUENC 0.59 1
Y 9
7.3 Classification of respondent based on occupation:

Occupation Frequency Percent

This table shows the correlation between the
frequency of visit to the stores with respect to the
Private employee 116 58 age of the customers. There is a positive correlation
between the frequency of visit and the ages of the
Government customers(r= 0.599)
employee 28 14
REGRESSION:
Bussiness 21 10.5 Linear Regression is to understand whether
the independent variable (Store layout, Window
Home maker 26 13 display, color and lighting, store interior design,
signage and ambience) predicts the dependent
Student 9 4.5 variable (Consumer attention on buying decision
behavior)
The classification of respondent based on
Occupation level are shown in the table . It consists Consumer attention on buying decision
of four groups namely Government employee, behavior =1.277 (constant) + 0.76(store layout)
Private employee, Bussiness people, Home maker, +0.13(window display)+0.22(color and lighting)-
Student 0.001(store interior design)+0.28(signage and
ambience)
 The Regression statistics table provides R
and R square value. The R value is 67% which
represents simple correlation. It indicates a high
degree of correlation. The R Square value indicates
how much of dependent variable (Consumer attention
on buying decision behavior) can be explained by the
independent variables (store layout, window display,
colour and lighting, store interior design, signage and
ambience) in this case 67% can be explained. The
model fit can be access by use of R & R Square
higher the value of R & R Square better is the order
fit. The higher value of R & R Square & Significant
Value of ANNOVA (0.000) indicates the model
applied can statistically, significantly predict the
outcome variable. However, the variables store
layout, window display, and colour and lighting,
store interior design, signage and ambience, is found
to be highly significant in influencing the consumer
attention on buying decision behaviour.
FINDINGS AND RESULTS
 From the multiple regressive on analysis the
consumer buying decission behavior has the
positive impact from the constructs store
layout, window display, color and lighting,
signage and ambience and has a negative
impact on store interior design. It is also
seen that store layout has the high impact.
 The analysis is done using 200 respondents
from the customers of Big Bazaar.
 Since the mean value for “I often intend to
buy unplanned products in this store because
of proper product shelving” (4.58) is higher
than all other statements, it contributes more
to the Store layout construct.
 Since the mean value for “Window display
of the store leads to unplanned buying”
(4.53) is higher than all other statements, it
contributes more to Window display
construct.
 Since the mean value for “The use of lights
in different brightness to decorate the Big
Bazaar store would stimulate my preference
towards product items and attracts my
attention and also increases the possibility of
making purchase”( 4.52) is higher than all
other statements, it contributes more to
Colour and lighting construct

 Since the mean value for “The interior
design of the store is aligned with the theme
of colors that are used in the company logo”
is higher than all other statements, it
contributes more to Store interior design
construct.
 Since the mean value for “The store offers
an enjoyable and comfortable shopping
environment” is higher than all other
statements, it contributes more to Signage
and ambience construct.
 Since the mean value for “Attractive visual
merchandizing plays a major role in seeking
my attention “is higher than all other
statements, it contributes more to Customer
attention on buying decision behaviour
construct.
 Customer attention on buying decision
behaviour has significant correlation with
respect to Signage and ambience (r=0.629).
It means that there is a strong relationship
between Customer attention on buying
decision behaviour and Signage and
ambience in the store.
 There is a strong positive correlation
between the frequency of visit and the
income of the customers(r=0.737)
 There is a positive correlation between the
frequency of visit and the ages of the
customers(r= 0.599).
 There is no significant difference between
the perspective of male and female with
respect to the constructs of consumer buying
behavior due to the impact of visual
merchandising
 There is a significant difference in Signage
and ambience and Customer attention on
buying decision behaviour of different
occupation level of customers
 There is no significant difference between
the perspective of rural and urban customers
with respect to the constructs of consumer
buying behavior due to the impact of visual
merchandising
 There is no significant difference in the
perception of buying decision behaviour
customer with respect to Store layout,
Window display, Color & Lighting, Store
interior design, signage and ambience,
consumer attention on buying decision
behaviour with respect to the educational
qualification of the customers.
Suggestions & Recommendations:- Conclusion:

* Windows display creates stimuli for the
customers while entering the store.
Providing information about new arrivals
and attracting price sensitive customers by
displaying promotional merchandise in a
digitalized way would also influence the
customers.
* When the product get prioritized by using
point of selling material it will work beyond
shelving which more highly attract customer
and make them buy unplanned products
From the study it is clearly understood that
the arrangement of the displays in an attractive
manner initiates new interest about the products in
the minds of the customer. By designing a proper
themes and activating changes frequently one can
thus be a proactive retailer.
With globalization and the retail boom,
visual merchandising is growing in leaps and bounds.
It is not simply concerned about decorating a store
beautifully; but must also symbolize the brand
keeping the target audience in mind.

* Most of the customers visits the stores By doing this project am not only learned
mostly in evening hours, so in that time the about the impact of visual merchandising but also it
store manager should wisely plan to avoid opened the door for me to learn about many aspects
instore traffic and should try to maintain a in sales and retail including buying behavior of
pleasant environment which would help the consumers, salesmanship etc., I once thank my
customers in their comfortable shopping institute and also future group for providing training
of this kind.
* Colors create a psychological impact on the
minds of the customers and can capture
attention. contrast colors may workout well
and may reflect one’s moods and thus, add
meaning .Therefore color plays a vital role
in creating a positive shopping experience

* Proper Lighting helps customers to select

correct products, reduce the time wasted and
make them feel relaxed during their
shopping. Lights of different brightness
would encourage all age group customers.

* Music played in the shop brings a better

shopping mindset to customers, it is always
recommended to play soft and mild music.
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