Impact of visible merchandising on purchase decision

Great store presentation and product merchandising is like a good publication. It's got an alluring cover to lure, an interesting first chapter in order to the reader they've made a good choice, and a gratifying conclusion to obtain the audience to want more. The various tools used to attain these attributes are based on creating the most gratifying experience for the shopper, turning web browsers into buyers.

1. 1 What's store design and Aesthetic Merchandising?

It is an art that involves the implementation of effective design and product presentation ideas to increase store traffic and sales volume level. Store design is the essential layout of the store using signage and other ways to guide customers through the store and assist them in finding and finding information about goods which is recognized by visual merchandising techniques put in place. There many kind of store designs some as 1. Grid layout, racetrack layout, free form design.

1. 2 Concept of Visual Merchandising

It is referred to as Point-Of Purchase (POP) Display.

It consists of everything the clients see both exterior and interior, that creates positive image of a small business and ends in attention, interest, desire and action on the part of the client.

Visual merchandising is the art work of utilizing effective design suggestions to increase store traffic and sales volume.

It is often referred to as the silent salesperson.

1. 3 Key Purposes of Visual Merchandising & store design.

Informing and educating customers about the product or service.

Adding value to the atmosphere of the store.

Making it easier for the shopper to self-select.

Acting as a significant promotional tool.

Drawing attention of the client to permit him to take purchase decisions within shortest interval of time and thus augmenting the selling process.

To communicate with the mark customers a lot more easily.

To catch the attention of customers during festivals and occasions.

Offering a distinct identity to a shop vis- -vis the competition.

Implementing the retailer's strategy.

Influence customer buying action.

Provide overall flexibility.

Control design and maintenance cost. Etc.

Components of visual merchandising:

Figure -1. Components of visual merchandising

Visual merchandise stands for:

Emotional stimuli

Make your competencies visible.

Make tactical relevant products best obvious.

Increase the level of consumer awareness.

Formulating activities to activate additional sales.

To provide consumers productive information & psychological loaded pictures assisting customer please and shopping activity.

1. 4 Little about RETAIL INDUSTRY in India.

Retailing in India is booming contributing 11% of GDP, changing lifestyle, demographics, purchasing electricity, introduction of new hybrid malls etc is taking the retail industry a new existence in India. Retail industry in India is known as 5th most future industry in India. You can find huge potential in the retail market yet there are many untapped and unexplored market is available.

The growth of Indian retail sector will be US$ 40 billion this year 2010 will reach to 175-200 billion in 2016.

Figure 2: Expected Progress of retail and contribution of GDP

Figure 3: Types of Indian Retail Sector


Convenient stores

Department stores

Shopping malls

Specialty chains

Super markets

Discount stores

Hyper market

Individual retailers

Indian Retail Industry

Executive summary

The study is supposed at obtaining out the effect of store design and visible merchandising (VM) on customer buying decision and action. Visible merchandising and store design is attaining considerable importance in India with the rapid progress of retail industry.

The entire idea is changing visitors to consumers and purchasers to buyers. It really is been studied previously that 70 percent70 % of the purchase decisions are created inside the store and needs can be created through store design and visual merchandising.

The research technique includes floor supervisor surveys gaining from their activities and also from aesthetic merchandising managers. Questionnaire study (both at stores and online). Test size is around 110 taking age group from 16-70.

A telephonic interview with an interior designer who might have design stores can be help as a secondary data.

Though many interesting learning will be achieved on the role of visual merchandising in shops on consumer behavior, this has certain limitations, merchandising differ significantly in various states of the country but credited to limitations of your time and other alternatives untouched the sample will be from Ahmedabad city only. Yet this review is completed with planning and hard work intended to throw light about them and trying to explore more about Store design and VM.


3. 1 Goals of the analysis:

Figure-4 goals of the study

On a more specific note, the market researcher's problem (MRP) can be divided into the following:-

Marketer's problem- 1: Affect of visual merchandising on the purchase decision of customers in the shop.

Marketer's problem- 2: to review the buying decisions and options are done inside the store of pre decisive way by the clients.

(Common questions which can only help us understand buying behavior)

Marketer's problem- 3: What sort of store design and space management in a retail store governs the client buying behavior and its own impact.

Marketer's problem- 4: To learn if the customers actively look for the new arrivals, services in a store and their items browsing patterns.

3. 2 Rational of the study

If we look across and speak about customers carry a perception and a graphic of the store through their past knowledge, experience and for that matter even have heard about it may well not have visit. It is very important for a professional to know very well what drives the customer to the store and the way to take on each customer keeping their targets and their buying habit. Customers nowadays has knowledge about products, brands and even the prices available for sale at different shops so The study of store design, space management and aesthetic merchandising can help us understand how different techniques associated with each factor of store design, SM & VM effect and their impact on consumer decision making. It will help us understand how different retail chains & different retail marketplaces implements merchandising management and adopts store design policy keeping what aspects on brain. It will help us know the new and strategies a store adopts in order to attract customers i. e clients and sustain existing customers. The purpose of the study is also to learn how retail store developing in a momentary look of 4-5 moments of customer is able to attract through exterior, i. e. to bring them in the store, through interior look i. e. to keep them in the store and oddly enough browse through the item of the store i. e. how the product selection techniques are used and what role aesthetic merchandise have to try out in that subject.

3. 3 Range of the study

Our prime concentrate of review would remain on impact & influence of store design, SM & VM on buying decision of a person. I would also touch after different kinds of the structure, merchandising options, available tools for aesthetic merchandising and exactly how space management helps know the how much space allotment is needed to what products and where.

Literature review:

Visual merchandising and store design can be an important component in atmospheric management. It offers both store outside and store interior. Store outside includes window display, retail premises and front while store interior includes store design, fixtures and fitting, wall screen and store features. Also, there are components governing both store external and interior, which include color co-ordination, lighting design and the application of design ideas. If stores want to job the best part of this company, a good collection of the aesthetic merchandising with an in depth factor of proper cooperate expressions are vital. As a result, customer can have the intended meaning of retailers through different kinds of theme a method developed from appropriate aesthetic merchandising strategy. To sum up, visible merchandising helps retaining the overall image of a shop in consumers mind.

Apart from retail id building, aesthetic merchandising is regarded as a robust tool in shaping consumers final decision inside a store. VM focuses on various aspects of consumers, such as sensory pleasure, affective pleasure and cognitive please. Sensory aspect includes personal feeling of consumers, such a reply to temperature and noise, feeling congested in a store. Windowpane display plays an essential role in influencing store entry decisions as it is very important information cue for consumers.

A better part of any successful review owes to the secondary research of shared works. A short idea of what was already done will provide wonderful insights about how exactly it can be taken to the next level. Shopping has transformed from necessity for an excitement. It's more of an event, opportunity for party. No more days of making a shopping list and going to kirana store buy grocery store or planning the shopping and go directly to the known as store. Shopping is a discovery from the tight schedule, a chance to break free and got to the shopping center. The double conversion theory discusses visitors

converting into buyers and shoppers ultimately in to clients. A good display makes people head into the store and also helps to make them browsing through the merchandise offer by the store. There exists considerable upsurge in middle income Indian families followed by upsurge in purchase power that leads sellers to find new and creative ways to attract customers of different section to buy goods and services that visual merchandising, store design and space management plays an essential role. Launch of slotting allowances which necessitate obligations by makes to vendors for providing shelf space for services becomes relevant in this framework.

It is all about how precisely to make customers look at your products. Visual merchandising and store design has driven retail business as an hurricane. It's the key to unchain-feelings and wishes that drive the purchasing decisions that people make in each day lives. Studies uncover that indoor signage play a dominating role in appealing to customers to buy certain products. "Standee" is preferred by nearly all shoppers accompanied by drop down and shelf stock signage.

ITC choupal fresh explored that all the stands and stacks were placed on the still left hand part and the billing counter-top was on the right part of the store analyzing that most of the customers look on their still left instead right while stepping into a store. They also designed special section and racks for fruits & vegetables to make it look more appealing.

It has been noticed that most of your choice about purchase are created inside the store, 70% of the purchase are created on the point of purchase that have considerable impact on shopping action.

Australian professor of design stock portfolio argued that

Retail design initiates in picking right up store sales if the sq. mts (retail floor) is productively design and also there are many other factors influencing or prompting the customer to

buy something which essentially includes quality of the item, pricing options, the way the merchandise is exhibited, merchandise is a topic of advertising too (how it is advertising is guiding the customer, the soft and pleasant atmosphere reflects the value of aesthetic merchandising ad store design.


The study will be done on the retail industry, specifically the discount stores, supermarkets and hypermarkets and the apparel industry which are the pioneer in portion of implementing store design and visual merchandising strategies and techniques. The aim of the study is to comprehend the impact of store design, structure & visible merchandising on the buying tendencies and the buying decisions of the customers.

5. 1 Shape 5 - Research Process Flow

5. 2 Sampling plan:

Figure 6 - Sampling Plan


Survey method will be done in order to collect recent data which will be done through both direct survey and online survey. Online survey requires more data cleaning as the examples are judgmental. Replies from the target sample will be filtered and taken out if needed.

5. 4 Research PLAN

SPSS will be put to utilize to evaluation of the data collected. SPSS will discover cleaned and coded inputs this can help in achieving the desired and important results of the research done.

5. 5 Qualitative research: Exploratory method used.

5. 6 Descriptive research

Circulating a rightly designed questionnaire among walk-in customers. Paid survey will be done asking the customers to answer based on their recent visit to a retail outlet.

5. 7 Depth interviews

Floor professionals and aesthetic merchandising manager along with retail store interior design will be contacted for an interview to get latest insights and learning.

5. 8 Observational research

Customer at live at a shop will be observe which will give interesting understanding.

5. 9 Quantitative research:

Data is in the form of numbers and figures. The aim is to classify features, count up them, and construct statistical models in an attempt to explain what is observed. Appropriate Examples will be taken and Surveys like Computer/Online Surveys, Telephone survey, Cross Methods, will be the primary approach to quantitative research. Any of Probability and non-probability sampling can be utilized while performing a survey. The info from this report originates from various articles, publications, directories, and a concentrate group with supermarket customers, interviews with current employees and management.

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