2.

1 Literature Review

Product Placement plays an important role in retail and departmental stores. The Environment of the

store influence more than what the consumer realizes. The importance of constructing an appealing

physical environment has attained considerable attention from several scholars and business managers

due to its power in attracting and satisfying customers (R. & Ali, 2015). Product Placement plays

important role in brand recognition and maximize sales. In-store product placement is the art of

determining where your products appear within a departmental store through negotiation, planning and

design. According Chalen Chiakpo ” Getting your product into a store is a massive achievement, but, it’s

just the first step in a longer process” this tells us the importance of product placement and its factors.

Product placement is dependent on many factors such as size of the store, traffic of the store and

available shelfs (Chiakpo, 2020)

Effective in-store product placement boosts brand recognition and maximize sales. There are different

techniques to maximize sales one of them is shelf placement and it plays one of major role in purchase

decision. There is huge demand of premium shelfs by competitors and big brands, if you are a new

product you may find difficulty the premium shelfs. In order to get premium slot or aisle for your

product you need to pay slotting fees. The Wal-Mart consumer and market knowledge team used an eye

tracking method to measure consumers’ observing behavior in stores, the result showed us that the

consumers looks more at the center of the shelf than the beginning and the ending. (Siguardson &

Foxall, 2009) In fact, shoppers looked at the brands positioned in the center of the shelf nine times more
than those placed in the corners (Luigi Ciuti, personal communication, February 21, 2005). The

consumer will buy more product if there is more information provided as it will provide them clarity and

more detailed product analysis. Discount offers placed on aisle which include price discounts and bulk

discounts have a major impact on consumers’ perception about a product. Price discounts increases

sales growth and probability of impulse buying. (Nagadeepa, 2015)

(Siguardson & Foxall, 2009)

The second factor which affect the buying decision is shelf level. There is a famous marketing quote eye

level is buy level which means that customers strolling down the aisle and shelfs pay a lot more

attention to items which are on their eye level (4-5 feet). Moreover, Dr Kamasak suggested that

businesses should be more careful about where) they place their products on the shelf and placing them

on a direct eye-level will result in a higher impact on the sales volume (Kamasak, 2008). This indicates

that brands and manufacturers are often willing to devote more than that of their promotional budgets

on securing featured display space, including eye level shelf placement. This is the most coveted shelf

placement in a store and also the most expensive to secure. (Santaella, 2008).

The third most important factor which affect the buying decision is Product Assortment which means

more product options. Cauterization have both positive and negative impact on purchase decision. For

example Shampoo have different hair styling option and different sizes, the consumer will select

shampoo based on his preferences. On the contrary, articulate customers with an ideal option in mind

finds a large assortment of a product helpful leading to higher sales for the product (Chernev, 2012).

Complement and Discounted offer such as buy one get one free also play important role, secondly if a

complement product is placed with the desired product there are more chances of sales. For example If

Hair Conditioner is placed next to Shampoo there are more chances of their sales.
 Conceptual Framework

Discount price

Shelf Premium Shelf Placement

Point of Purchase

Eye Level, Waist

Level, Knee Level Consumer
Shelf Display
Behaviour

Variety

Complementary Product Assortment

Products

Product Option (Size,

Color, Shape)
Hypothesis
H1: Shelf Placement have positive impact on Consumer Behavior.

H2: Shelf Display have positive impact on Consumer Behavior.

H3: Product Assortment have positive impact on Consumer Behavior.

Hypothesized Model

Shelf Placement

Consumer
Shelf Display
Behavior

Product Assortment
References
Chernev. (2012). Product Assortment and Consumer Choice. An Interdisciplinary Review, Vol. 6, No. 1.

Chiakpo, C. (2020). The Ultimate Guide to In-Store Product Placement in 2020. Retrieved from Resply:
https://www.repsly.com/blog/the-ultimate-guide-to-in-store-product-placement

Kamasak, D. (2008). Shelf positioning and Buying Behaviour. International Journal of Business and Social
Research (IJBSR) .

Nagadeepa. (2015). mpact of Sale Promotıon Technıques on Consumers’ Impulse Buyıng Behavıour .
Asian Journal of Management Sciences & Education Vol. 4(1) January 2015.

R., H., & Ali, M. (2015). Effect of store atmosphere on consumer purchase intention. International
Journal of Marketing Studies, Vol. 7 No. 2, pp. 35-43.

Santaella, E. (2008). Eye-level is buy level — The Principles of Visual Merchandising. Retrieved from
https://mobileinsight.com/eye-level-buy-level-importance-store-product-placement/

Siguardson, V., & Foxall, G. (2009). Brand placement and consumer choice: An in-store experiment.
Journal of Applied Behavior Analysis .