The Impact of Visual Merchandising on Impulse Buying Behavior of Consumer

Topics: Retailing, Retail design, Marketing Pages: 19 (4351 words) Published: February 26, 2014
Universal Journal of Management 1(2): 76-82, 2013 http://www.hrpub.org DOI: 10.13189/ujm.2013.010206
The Impact of Visual Merchandising on Impulse Buying
Behavior of Consumer: A Case from Central Mall of
Ahmedabad India
Neha P. Mehta*
, Pawan K. Chugan
Institute of Management, Nirma University, Ahmedabad, India *Corresponding Author: npmehta_9@yahoo.co.in
Copyright © 2013 Horizon Research Publishing All rights reserved. Abstract Apparel industry in India is booming and
there is fierce competition among various players in apparel segment in terms of lifestyle format. The study is aimed to find out impact of various dimensions of visual
merchandising on impulse buying behavior of the customers
visiting “Central Malls”. Four dimensions of visual
merchandising viz. window display, in-store form/mannequ
in display, floor merchandising and promotional signage are studied and its impact on impulse buying behavior is found
out. The results reveal that certain dimensions of visual
merchandising do affect impulse purchase. Hence, visual
merchandising is important for strategic marketing decisions to increase the sales of the stores.
Keywords Visual Merchandising, Window Display,
In-Store form/Mannequin Display, Floor Display,
Promotional Signage, Impulse Buying

1. Introduction
Retail has caught lot of attention in the past one decade.
India as the ‘second most attractive retail destination’ globally among thirty emergent markets (1). In terms of
purchasing power parity (PPP), India is ranked 4th largest
economy after USA, China and Japan. Indian retail market is growing with the compounded annual growth rate of 46.64%.
One of the major contributors is the modernized retail format that is, “The Shopping Mall- the one stop destination”. In India, retail industry contributes 10% of the GDP and 8% of the employment. The Indian retail market is estimated at

US$ 350 billion. But organized retail is estimated at only
US$ 8 billion. India’s overall retail sector is expected to rise at US$ 833 billion by 2013 at a compound annual growth
rate (CAGR) of 10 per cent. The Indian consumer market is
likely to grow four times by 2025 (2). India stands 4th in
Global Retail Development Index 2011 (1).
The retail sector is witnessing an influx of large domestic conglomerates such as Reliance Group, Future Group and
AV Birla Group. In November 2011, Government of India
announced reforms in retail sector for both multi-brand
stores and single-brand stores. These market reforms paved
the way for retail innovations and competition with
multi-brand retailers such as Wal-Mart, Carrefour and Tesco, as well as single brand majors such as IKEA, Nike and Apple. In January 2012, Government approved reforms for
single-brand stores welcoming anyone in the world to
innovate in Indian retail market with 100% ownership. This
development in retail creates fierce competition in the
industry. The competition in terms of innovations in
organized consumer retail industry has always been avoided
by India before 2011. India’s organized retail had a 31%
share in clothing and apparel in 2011 (1). Foreign retail
chains entering India will aggravate the competition to
different level. Hence, the retailers have to ensure that their stores appeal to the customers more effectively. In such case, the retailers need to differentiate themselves from others. The similarity of merchandise in the fashion or apparel

forces the industry to utilize visual merchandising to
improve the desirability of the product, differentiate their product and enhance the impulse buying behavior. Since the
country is getting more competitive in terms of retail
industry, visual merchandising is the only effective way of differentiating in apparel industry. The last thing a customer wants is similarity in merchandise. The innovation in store chain is very weak. Indian consumers are becoming...

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