effect of visual merchandising on buying behaviour of customers
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
door, flooring & ceiling, display systems, merchandise display systems, stock
keeping units (skills) and furniture. The most common fixture is Gondola which is
used in most categories with modifications. Browsers are used in case of fashion
and most browsers stock merchandise on a slightly higher side in numbers than its
actual capacity. Special emphasis should be placed on a store’s window displays
because they are the information link to the potential customer.
Props: They are items used for display purposes like mannequins, theme based
products and accessories. Mannequins are the most widely used props for Visual
Merchandising in fashion. Highly specialized props fabricated from a variety of
materials are created by experts for VM.
Lighting: An often overlooked and underestimated tool available to retailers is store
lighting. Studies show that proper lighting can increase merchandise sales by up to
20%. Effective lighting is a key in the sale of merchandise in helping to create that
favorable first impression of the merchandise and its surroundings. Special lighting
like focus lights are used specially in windows for displays. Good lighting can guide
the customer's eyes, reveal the color and cut of the merchandise, show the styling
and tailoring details and emphasize the good qualities of the outfit, helping the
merchandise to be pre-sold to customer.
Signage: Signage varies according to different categories of products and formats as
well. Proper signage has been shown to increase the sale of an item by over 40%.
As much as 80% of all sales are generated at the point of purchase (POP) by
signage, displays and events within the store. Signage is the "silent salesperson" for
the retailer and must reflect the correct brand image. There are various types of
signage. For example:
Promotional signage which informs the customer about off price events or
schemes;
Location signage which directs the buyer to specific departments or merchandise;
Institutional signage which gives information on store policies, charitable events
etc., and
Informational signage provides product related information like special features,
benefits, sizes, price etc.
1.2.3 VISUAL MERCHANDISING: CURRENT TREND AND FUTURE
PROSPECTS
While the West has nurtured effective VM practices over the past two decades and more, in
India, the consciousness and recognition is just about coming about, but the story is yet to
unfold. With the coming of malls, visual merchandising and store displays are getting
prominence, but one of the flip sides being that all malls and displays look similar with very
few exceptions.
Indian consumers are turning increasingly global in their outlook having become much
more aware of design trends in the business of fashion; and, emphatically or not, are
demanding the same levels of design and innovation from store spaces.
With the business of fashion in the country getting more competitive, VM is the only
differentiator, especially in a scenario where consumers encounter that the same fashion
designs almost uniformly. The idea is to create euphoria in the fashion market by trying out
new retail techniques and profiting by building more on store presentation. Fashion
companies must make sure that they use effective Visual Merchandising, which involves
shopper research, creating a distinct identity for the retailer.
Estimated at a $ 180 billion market size and accounting for a national GDP of 10 percent
the Indian retail industry is poised to see a growth of 11-12 percent per year. Further, India
is placed sixth in the global retail development index.
According to a CII analysis the Indian retail business has the capacity to employ over 2
million in new jobs within the next 6 years. About 60 percent are expected to be in the area
of fashion and lifestyle, and visual merchandising is one key area for the same. As both
fashion brands and retailers in India strive to convert brand thinking into retail thinking,
point-of-sale (POS) promotion is steadily gaining a bigger slice of the promotion pie. The
year 2006, for instance, saw some big spends, with large department stores like Shopper's
Stop, Lifestyle and Westside spending in the range of Rs. 30,00,000 - 40,00,000 per season
on visual merchandising.
Visual Merchandising spend had indeed doubled in 2006, compared to the last couple of
years. Where fashion retailers traditionally spent approx. 1.5 to 2 percent of their turnover
on visual merchandising in earlier years, the spend figure now stands at about 4 percent of
the turnover. The Indian retail industry is waking up to the need for visual merchandising
and the Indian society, attaining an international outlook is subconsciously creating a
demand for it. There is a mushrooming of companies manufacturing fixtures, props, display
systems etc. as well as providing complete visual merchandising solutions for fashion
retailers.
Finally, as the Indian consumer now demands state of the art service, global standard of the
product, and international level of shopping experience, the retailer can either meet the
demand or give into international competition.
With all this in view there seems to be a very bright future for Visual Merchandising in
India and is fast emerging as a professional, lucrative and much sought after business and
profession.
1.3 PROBLEM STATEMENT
Visual Merchandising has long been considered as important strategic business decision for
a number of reasons. First, customer store choice decisions are influenced greatly by
merchandising (Arrangement of merchandise) which denotes the relationship between
customer perception and buying behaviour. Second, retailers may be able to develop a
sustainable competitive advantage through merchandising. Merchandising plays an
important role in maintaining a balance between rack stock and the buffer stock.
A proper visual merchandising helps the retailer to increase the customer walk-ins and in
turn increase the sales of the product. Also, the mall culture sets a limitation on the retailers
for manually displaying each and every article in front of the customers. Thus, 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. Hence, 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.
1.4 OBJECTIVES
The present study was conducted with the following objectives:
1. To find out the intensity of influence of visual merchandising on buying behaviour of
customers.
2. To determine the important factors of visual merchandising influencing customers’
buying behaviour and in-store promotion activities.
3. To propose a model for increasing conversion rate in the store with reference to visual
merchandising.
2. COMPANY PROFILE
2.1 BACK GROUND
Future Group is India’s largest retailer and one of the leading business houses with a
strong presence in retail. Its founder and Group CEO is Mr. Kishore Biyani.
Future Group India was established in 1994 with a vision to provide diverse services in
Indian and Global markets. The business areas of Future Group cover BPO (Business
Process Outsourcing), New Media, Security Management, and Construction. Through their
strategic investment and services, the future of Future Group shows a rising star in the
business sky of India.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square
feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered
in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the
Indian stock exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle segment, the
group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In
the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines
the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.
2.1.1 GROUP VISION
Future Group’s vision is to deliver Everything, Everywhere, Everytime for Every Indian
Consumer in the most profitable manner.
2.1.2 GROUP MISSION
We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we
do.
We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.
2.1.3 CORPORATE STATEMENT
We, in Future Group, will not wait for the Future to unfold itself but create future scenarios
in the consumer space and facilitate consumption because consumption is development.
Thereby, we will effect socio-economic development for our customers, employees,
shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when
they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends, we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us succeed
in the Future. We shall keep relearning. And in this Process, do just one thing.. Rewrite
Rules. Retain Values.
2.2 FUTURE RETAIL
Retail forms the core business activity at Future Group and most of its businesses in the
consumption space are built around retail. Future Group’s retail network touches the lives
of more than 200 million Indians in 73 cities and 65 rural locations across the country.
The group currently operates around 1,000 stores spread over 16 million square feet of
retail space. Present in the value and lifestyle segments, the group’s retail formats cater to
almost the entire consumption expenditure of a wide cross-section of Indian consumers.
2.3 PANTALOON RETAIL INDIA LIMITED
The leading retail formats under this include:
Pantaloons Stores - Lifestyle segments and fashion segment.
Big Bazaar – A uniquely Indian hypermarket chain.
Central – A chain of seamless destination malls
Food Bazaar – A supermarket chain that blends the look, touch and feel of Indian
bazaars with aspects of modern retail like choice, convenience and quality
Home Town - A large-format home solutions store
E Zone - Consumer electronics
Depot - Consumer electronics
Health & Beauty Malls
Online retail through futurebazaar.com
Aadhaar- India’s leading rural retailing chain,that is present in over 65 locations in
rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete
solution provider for the Indian farmer.
Furniture Bazaar - Specialized formats for home furniture and home furnishing
Ethnicity - India's first concept store, which recreates the experience of a traditional
ethnic market in a modern retail format,
2.4 BIG BAZAAR
Big Bazaar was launched in September, 2001 with the opening of three stores in Calcutta,
Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 148 Big
Bazaar stores in 80 cities and towns across India.
Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters
offering a wide range of merchandise including fashion and apparels, food products,
general merchandise, furniture, electronics, books, fast food and leisure and entertainment
sections.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now
present within every Big Bazaar as well as in independent locations. There are now 169
Food Bazaar outlets, including those located within Big Bazaar.
A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the
larger metropolises have Big Bazaar Family centres measuring between 75,000 square feet
and 1,60,000 square feet, Big Bazaar Express stores in smaller towns measure around
30,000 square feet.
Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in
city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a
wide range of categories led primarily by fashion and food products.
Big Bazaar is part of Future Group and is owned through a wholly owned subsidiary of
Pantaloon Retail India Limited, that is listed on Indian stock exchanges.
2.4.1 PRODUCT RANGE IN BIG BAZAAR
This large format store comprise of almost everything required by people from different
income groups. It varies from clothing and accessories for all genders like men, women and
children, playthings, stationary and toys, footwear, plastics, home utility products,
cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food
products and grocery.
The added advantage for the customers shopping in Big Bazaar is that there are all time
discounts and promotional offers going on in the Big Bazaar on its salable products.
2.4.2 SIGNIFICANT FEATURES OF BIG BAZAAR
Shopping in the Big Bazaar is a great experience as one can find almost everything under
the same roof. It has different features which caters all the needs of the shoppers. Some of
the significant features of Big Bazaar are:
The Food Bazaar or the grocery store with the department selling fruits and
vegetables.
There is a zone specially meant for the amusement of the kids.
Furniture Bazaar or a large section dealing with furniture.
Electronics Bazaar or the section concerned with electronic goods and cellular
phones.
FutureBazaar.com or the online shopping portal which makes shopping easier as
one can shop many products of Big Bazaar at the same price from home.
2.4.3 TIME LINES
2001
Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad
2002
Big Bazaar - ICICI Bank Card is launched.
Food Bazaar becomes part of Big Bazaar with the launch of the first store in
Mumbai at High Street Phoenix
2003
Big Bazaar enters Tier II cities with the launch of the store in Nagpur
Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon
2004
Big Bazaar wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the country’s most admired retailer award in value retailing and
food retailing segment at the India Retail Forum
A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10
million turnover on a single day
2005
Initiates the implementation of SAP and pilots a RFID project at its central
warehouse in Tarapur
Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting
customers to exchange household junk at Big Bazaar
Electronic Bazaar and Furniture Bazaar are launched
2006
Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367
shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.
Big Bazaar launches Shakti, India’s first credit card program tailored for
housewives
Navaras – the jewellery store launched within Big Bazaar stores
2007
The 50th Big Bazaar store is launched in Kanpur
Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping
portal
Big Bazaar initiates the Power of One campaign to help raise funds for the Save The
Children India Fund
Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year award
at the World Retail Congress held in Barcelona.
2008
Big Bazaar becomes the fastest growing hypermarket format in the world with the
launch of its 101st store within 7 years of launch
Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar
Big Bazaar joins the league of India’s Business Superbrands. It is voted among the
top ten service brands in the country in the latest Pitch-IMRB international survey
2009
Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a
unique initiative to offer meals to visitors and support local social organisations
Big Bazaar captures almost one-third share in food and grocery products sold
through modern retail in India
2010
Future Value Retail Limited is formed as a specialised subsidiary to spearhead the
group’s value retail business through Big Bazaar, Food Bazaar and other formats.
Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the most preferred Most Preferred Multi Brand Food & Beverage Chain,
Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop
Shop
Big Bazaar connects over 30,000 small and medium Indian manufacturers and
entrepreneurs with around 200 million customers visiting its stores.
3.REVIEW OF LITERATURE
Keeping the importance of the topic an attempt was made to review studies related to
visual merchandising and how it affects buying behavior of consumers.
Kotler (1973) indicated that one of the most significant features of the total product is the
place from where it is bought. In some cases, the place, more specifically the atmosphere of
the place, is more influential than the product itself in the purchase decision. In some cases,
the atmosphere is the primary product. The paper also emphasized that visual
merchandising is not practiced “as consciously and skillfully as retailers now use price,
advertising, personal selling, public relations and other tools of marketing.
Wolters and White (1987) stated that the interest in the visual has – at one level within
the retail context – coalesced to from the practices of “visual merchandising”. This is
defined as the activity, which coordinates effective merchandising selection with effective
merchandising display. Visual merchandising is therefore concerned with both how the
product and/ or brand are visually communicated to the customer and also whether this
message is decoded “appropriately”.
Holly, Zetocha and Passewitz (1991) explained that 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 offered to the customer through exterior and interior
presentation. Each should be coordinated with the other using the store’s overall theme.
Creating and maintaining a store’s visual merchandising plan, however, is not a simple
task. It is necessary to continually determine what the customer sees. This evaluation from
the customer’s perspective should start on the exterior and work completely through the
interior of the store.
Mills, Paul and Moorman (1995) defined visual merchandising as “the presentation of a
store/brand and its merchandise to the customer through the teamwork of the store’s
advertising, display, special events, fashion coordination, and merchandising departments
in order to sell the goods and services offered by the store/company”.
Smith (1997 ) stated that it is worth remembering that products, service and store design all
contribute towards the overall store image, but if a customer has no prior experience of a
particular store nor any word-of-mouth reference from peers, then the decision to enter or
not to enter may be made solely from the store’s visual image. The store’s exterior offers an
opportunity to communicate with the customer, for example to invite them into the store.
Frings (1999) said that the purpose of visual merchandising is to educate the customer, to
enhance the store/company’s image, and to encourage multiple sales by showing apparel
together with accessories.
Fiore, Yah and Yoh (2000) in their study indicated that apart from retail identity building,
visual merchandising is regarded as a powerful tool in shaping consumers’ final decision
inside a store. Visual merchandising focuses on various aspects of consumers, which
include sensory pleasure, effective pleasure and cognitive pleasure.
Castaldo (2001) observed that display windows are probably the most important visual
communication instrument that a retailer has at his disposal to attract the attention of the
potential clients and to make the clients enter the store.
McGoldrick (2002) stated that visual simulation and communication have long been
considered important aspect of retailing by practitioners and academic alike. 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.
Ravazzi (2004) in her book said that visual merchandising is the totality of all exposition
techniques that allow to settle the presentation of the merchandise in the display window
and in the interior of the point of sale effectively. It is the totality of all marketing
activities that can be realized in the point of sale in order to valorize the product and to
increase the sell-out.
Derry and Yip (2007) suggested that store environment can intensify consumers’
response (either positive or negative) to a brand of the product being sold in the store and
to achieve a positive store atmosphere, visual merchandising has been widely employed by
retailers. The study also focuses on the influence of visual merchandising on the store
atmosphere and its corresponding impact on consumer decision making process for
intimate apparel. The study concluded that paying a close attention to the interaction of
cultural or societal differences together with visual merchandising elements causes a great
impact on final purchase decision.
Wanninayake and Randiwela (2007) indicated a significant correlation between visual
merchandising and store choice decisions of customers. The research findings of this paper
recommend Visual merchandising as the most important variable in in-store environment
among the tested variables. It can significantly influence on consumer’s store choice
decisions. Emphasis is laid on the application of more attractive visual merchandising
materials in their promotions to obtain better results. The lighting, Design layout and
cleanliness are the key elements of visual merchandising programs other than product
display.
Karolia and Dua (2008) emphasized on the role of visual merchandising in today’s retail
and fashion industry. The paper explains that how visual merchandising actually works and
what tools of visual merchandising are used. It indicates that 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.
Bhalla and Anurag (2009) defined Visual merchandising as the presentation of any
merchandise at its best (1) color coordinated (synchronised colours); (2) accessorised
(related products/ props); and (3) self-explanatory (descriptive/illustrative). It is one of the
final stages in the process of setting up of a retail store which customers would then find
attractive and appealing.
4. RESEARCH METHODOLOGY
To fulfill the objectives of the study following methodology was used for the study and
report preparation.
4.1 Research Design
The research design was both exploratory as well as descriptive. Exploratory kind of
research was used for exploring the influence of visual merchandising on buying behaviour
of customers. It also helped to know the impact of visual merchandising on the sales
performance of the apparels. Descriptive research was designed to know the different
dimensions of visual merchandising which are necessary to influence the customers’ final
buying decisions. This research design helped in providing significant insight of the use of
art of visual merchandising in present scenario.
4.2 Information Required
Both primary and secondary information were required for the study.
Secondary information on the present scenario and role of visual merchandising were
required.
Primary information on the influence and important factors of visual merchandising
affecting the buying behavior of customers were required.
4.3 Data Source
Both secondary data and primary data were used for the information generation. The
inferences were drawn mainly from primary source. The information was collected for
knowing the impact of visual merchandising on customers’ buying behavior.
4.3.1 Secondary Data
Secondary data was gathered from books, research papers, articles, internet and web portals
of different retail organizations. It helped to understand the basic concept of visual
merchandising and what role it can play in increasing the customer footfall in the stores.
4.3.2 Primary Data
Primary data was the first hand information for fulfilling the objectives of the study.
Primary data was collected from personal interview of customers visiting the stores. The
data was collected by survey method using pre-tested structured questionnaires having both
open and close ended questions. The data collected addressed to issue regarding customer’s
profile, general perception regarding various attributes of visual merchandising and how it
influences customers’ buying behavior. Apart from this store staff was also approached for
in depth knowledge regarding the topic.
4.4 Area of Study
The study was concentrated in the Lucknow, capital city of Uttar Pradesh. This area was
suitable for the necessary information generation as it had three Big Bazaar stores operating
in three different locations. All three stores were covered. The stores are located at Sahara
Mall in Saharaganj, Riverside Mall in Gomtinagar and Phoenix in Alambaag.
4.5 Sampling Plan
4.5.1 Sampling Frame
The sampling frame comprised of all the customers visiting and purchasing from the stores
of Big Bazaar (Lucknow).
4.5.2 Sampling Unit
Sampling unit included customers visiting the Big Bazaar store for buying apparels. Since
our study is mainly concentrated on applying visual merchandising to apparels therefore
our sampling unit is only those customers who visited the apparel section of these stores.
4.5.3 Sampling Size
The sample size was as follows:
Saharaganj Store : 40
Riverside Store : 30
Phoenix Store : 30
A sample size of 30 is a large sample and is considered appropriate for reproducing results
so, it was decided to select a minimum sample size of 30 for meeting the objectives of the
study. But, since Saharaganj store is the largest and most visited store of Lucknow therefore
it was decided to select 40 samples from this store. In all 100 customers were selected from
the apparel section and studied from all three stores.
4.5.4 Sampling Technique
Purposive sampling technique was used for the sample selection. It has helped in
identifying customers and finding out the important factors affecting visual merchandising.
The respondents were selected subjectively and intuitively. The Non-probabilistic,
Purposive sampling has helped in meeting the objective of the research. The adopted
sampling technique had also overcome the Time and Cost constraints.
.
4.6 Research Instrument
Pre-tested Structured questionnaire with both open and close ended questions has been used
as a research tool for conducting the interviews of customers visiting apparel section of Big
Bazaar stores. The questionnaire was designed so as to go into the depth of respondents’
psychology.
4.7 Data Analysis
Following statistical tools was used for data analysis:
Frequency Distribution- –For analyzing demographic variables, buying behavior and other
factors like techniques preferred by customers about visual merchandising.
Data collected from respondent was classified, tabulated and analyzed. Inferences were
made on the basis of averages, simple tabulation and ranking method. Bar graph, Pie chart
and columns were used for pictorial representation of the result.
4.8 Limitations of the Study
1. The biggest obstacle for the realization of the research for this project was the difficulty
to determine which elements in and of a point of sale are referable to visual
merchandising and, in particular, how those and their impact on buying behavior of
customer and on the sales performance can be measured. The specific literature does
not provide significant coverage of the subject under observation; therefore the visual
merchandising attributes chosen may not reflect the entire range of attributes that
compose visual merchandising.
2. The result cannot be generalized for all stores of Big Bazaar because only three stores
have been covered in the survey.
3. The study was confined mainly to the apparel section of the stores and hence we cannot
generalize it for all the sections.
4. Time constraint also existed as the respondents gave little time to interact.
4.9 Duration of Study
The period of study was from 6th of March, 2011 to 6th May, 2011.
5. RESULTS AND DISCUSSION
In the present study various issue related to visual merchandising have been discussed. Visual
merchandising is the art of presentation, which puts the merchandiser in focus. It educates the
customers, creates desire and finally augments the selling process. This is an area where the
Indian business people lack adequate knowledge and expertise. It is high time that the Indian
textile and clothing industry should understand and adopts the scientific and professional system
of visual merchandising rather than the traditional practices of display of products and
communication.
This study was discussed under Demographic variable which deals with customers’ profile and
Behavioural variable explaining their view regarding the various attributes of visual
merchandising. Accordingly, the impact of visual merchandising has been analyzed.
5.1 Demographic Variable: It is associated with customers need and wants which are easy
to measure.
It is used to estimate the size of the market and the media to be used to reach it
significantly.
5.1.1 Costumers’ Status: It is very important component of the project which will be
used to know the buying power of customers. It will be recognized under the following
points:
5.1.1.1 Gender: As can be seen in exhibit 5.1, 66 percent of the interviewed customers
were female and 34 percent were male. The main reason for the difference of the
percentage is that men are mostly engaged in their jobs while women do the household
purchasing. Thus, the shops were frequented more often by women than by men. Also,
women were better available to fill out the questionnaire, whereas the men often seemed to
be busier, and therefore did not want to spend five minutes of their time to answer the
questions. But, it can be observed that during festivals or holidays the participation of males
is comparable to females.
Male Female0%
10%
20%
30%
40%
50%
60%
70%
Gender
Perc
enta
ge o
f Cus
tom
ers
Exhibit5.1 Percentage of Male and Female Customers Visiting Big Bazaar
5.1.1.2 Age: Big Bazaar targets a wide range of people providing a wide spectrum of
brands for family oriented women to fashion oriented girls, from career-oriented men to
young guys who start their day in a pair of jeans and T-shirt. Having this in mind, the
decision was taken to ask everybody, independent from gender or age, who had entered the
store, to complete the questionnaire. As can be seen in exhibit 5.2 men and women from the
age of 16 have participated in the survey. The highest proportion (44%) is in the category
from the 16 to 25 years old customers. This category includes college students who are
fashion conscious and spend a lot of money on purchase of apparels. The second highest, is
the one from above 46 years. Surely, both the age groups will not respond to the same
visual merchandising features and they will not look for the same products either.
16-25 years 26-35 years 36-45 years Above 46 years0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Age of Customers
Per
cent
age
of C
usto
mer
s
Exhibit 5.2 Comparison of Age of Customers Visiting Big Bazaar
5.1.1.3 Educational Qualification: Education plays a vital role in determining the profile
of customers. The exhibit 5.3 depicts that more than 58 percent of the customers are
graduates while 20 percent have done their post graduation.0nly 13 percent of customers
interviewed were intermediate passed while nine percent had done higher education. This
explains that most of the customers are capable to understand the written information which
they have assimilated from different source. During the study, it is revealed that majority of
them could read English and understand the message delivered by one or the other
technique of visual merchandising.
High School Intermediate Graduation Post Graduation Any other0%
10%
20%
30%
40%
50%
60%
70%
Educational Qualification
Per
cent
age
of C
usto
mer
s
Exhibit 5.3 Comparison of Educational Qualification of Customers
Visiting Big Bazaar
5.1.1.4 Occupation: It can be depicted from exhibit 5.4 that 23 percent of respondents
interviewed were housewives. 24 percent of respondents were government employees while
another nine percent were engaged in business. Another 20 percent worked in private jobs
while seven percent were self employed. The reason for majority of respondents being
housewives is that in Indian society the decision making with respect to household
activities like shopping vests with the females. They are generally deciding over the
quantum and venue of household purchasing. Thus, they play a major role in the purchase
process.
Government Service
Private Job Self Employed Housewife Business Student0%
5%
10%
15%
20%
25%
30%
Occupation of Customers
Per
cent
age
of C
usto
mer
s
Exhibit 5.4 Comparison of Occupation of Customers Visiting Big Bazaar
5.1.1.5 Income: It can be depicted from the exhibit 5.5 that majority (51%) of the
customers have an annual family income in the range of Rs.3 to 5 lakhs. Only 18 percent of
the customers are having income in the range of Rs.1 to 3 lakh per annum income. Another
31 percent exist in the range of above Rs. 5 lakhs. This indicates that majority of the
customers to Big Bazaar are in middle income group and have good purchasing power.
Below 1 Lakh 1-3 Lakhs 3-5 Lakhs Above 5 Lakhs0%
10%
20%
30%
40%
50%
60%
Income of Customers
Per
cent
age
of C
usto
mer
s
Exhibit 5.5 Comparison of Income of Customers Visiting Big Bazaar
5.1.1.6 Size of Family: Exhibit 5.6 indicates that 23 percent of customers belong to nuclear
family while majority 64 percent belonged to joint family. Another, 13 percent respondents
had extended family having more than six members. Larger the size of family, greater is the
demand for household goods. Since, majority of the families are either joint or extended
families therefore, there exist a huge market for household products.
Nuclear Family Joint Family Extended family0%
10%
20%
30%
40%
50%
60%
70%
Size of Family
Per
cent
age
of C
usto
mer
s
Exhibit 5.6 Comparison of Family Size of Customers Visiting Big Bazaar
5.2 Behavioural Variable: This variable will help in knowing the customer insight toward
visual merchandising. Accordingly, inferences will be drawn on the basis of knowledge
about visual merchandising and the attitude of customers towards various attributes of
visual merchandising. In this segment the views of the customers towards various visual
merchandising techniques and the role it plays in the purchase process have been discussed.
5.2.1 Place of Purchase: The exhibit5.7 illustrates that more than 34 percent of the
customers purchased their apparels from malls while 29 percent customers preferred to buy
their apparels from exclusive showrooms and shopping complex. It was also found that 24
percent customers bought from hypermarkets as compared to 13 percent who preferred to
buy apparels from ordinary retailers. Malls have emerged as the most sought after shopping
destinations these days. They have very good ambience and provide the customers with a
great shopping experience. Hence, they are the most preferred shopping destination.
Hypermarket Malls Shopping complex/Exclusive showrooms
Ordinary retailers0%
5%
10%
15%
20%
25%
30%
35%
40%
Place of Purchase
Per
cent
age
of C
usto
mer
s
Exhibit 5.7 Comparison between Places of Purchase
5.2.2 Time of Purchase: The exhibit 5.8.1 illustrates that 56 percent of respondents
preferred to shop during evening hours while another 17 percent shop after 8 pm. The
customers who are working prefer this timing and it also becomes an outing for their
family. It was also indicated that majority of the housewives preferred to shop in the
morning hours which made 22 percent. Hardly, five percent customers came to shop in the
afternoon.
Morning Afternoon Evening After 8 pm0%
10%
20%
30%
40%
50%
60%
Time of Purchase
Per
cent
age
of C
usto
mer
s
Exhibit 5.8.1 Time of Purchase
It is clear from the exhibit 5.8.2 that timing of purchase varied from customer to customer.
A majority 52 percent said that there was no specific timing and they purchased depending
upon their requirements while another 14 percent customers said that they preferred to shop
in the first week of month. The remaining 23 percent said that they shop during the mid of
month while 11 percent said that last week of month was more suitable.
First week of month Mid of month Last week of month Depending upon requirement
0%
10%
20%
30%
40%
50%
60%
Time of Purchase
Per
cen
tag
e o
f C
ust
om
ers
Exhibit 5.8.2 Time of purchase
5.2.3 Mode of Purchase: The study indicated that the best mode of purchase for majority
of customers (73 percent) was by cash payment. It is clear from exhibit 5.9 that only four
percent customers preferred to shop with credit cards. The remaining 23 percent used either
cash or credit depending upon availability and choice. Even though it is always safer to
carry plastic money but still majority of customers prefer to use cash. This is because a
large population does not rely on electronic transaction and hence feel more comfortable in
using cash.
Cash only Credit only Both0%
10%
20%
30%
40%
50%
60%
70%
80%
Mode of Purchase
Per
cent
age
of c
usto
mer
s
Exhibit 5.9 Mode of Purchase
5.2.4 Income Spent on Total Household Shopping: The exhibit 5.10 indicates that 38
percent of respondents spend 10-20 percent of their monthly income on total household
shopping while another 27 percent spend 21-40 percent of their monthly income. Another
26 percent of respondents spend above 40 percent of their monthly income on shopping.
This along with exhibit 5.5 shows that the customers are having good purchasing power and
are ready to spend a major portion of their income (21 percent and above) on purchase of
different household items.
Less than 10% 10-20% 21-40% Above 40%0%
5%
10%
15%
20%
25%
30%
35%
40%
Monthly Income Spent on Total Shopping
Per
cen
tag
e o
f C
ust
om
ers
Exhibit 5.10 Percentage of Monthly Income Spent on Total Household
Shopping
5.2.5 Expenditure on Purchase of Apparels: The exhibit 5.11 depicts that for 53 percent
of customers, 10-20 percent of their total monthly expenditure on shopping is for apparels
while 20 percent customers are in the category who spend less than 10 percent. For another
17 percent of customers, 21-40 percent of their total monthly expenditure of shopping is
contributed to purchase of apparels and for the remaining 10 percent it is more than 40
percent. This shows that people are ready to spend a good amount of their monthly income
on purchase of apparels.
Less than 10% 10%-20% 21%-40% Above 40%0%
10%
20%
30%
40%
50%
60%
Income Spent on Purchase of Apparels
Per
cent
age
of C
usto
mer
s
Exhibit 5.11 Percentage of Income Spent on Purchase of Apparels
5.2.6 Reasons for Visiting an Organized Retail Outlet: The top three reasons quoted by
customers for visiting an organized retail outlet are better quality, attractive schemes and
discount offers and ambience. It is clear from exhibit 5.12 that 34 percent of customers visit
an organized retail outlet because they get better quality products there. Various schemes
and discounts offered by retail outlets attract 23 percent of customers while another 31
percent said that the main reason for visiting an organized retail outlet was the store
environment and ambience it provides. The findings of Darden et al.’s (1983) study showed
that consumers’ beliefs about the physical attractiveness of a store had a higher correlation
with a choice of a store than did merchandise quality, general price level, and selection.
This supports the notion that consumers’ choice of a store is influenced by the store
environment, of which visual merchandising plays a vital role.
Ambience/Store environment
Better quality Less price Variety Atrractive offers, schemes and
discounts
0%
5%
10%
15%
20%
25%
30%
35%
40%
Reasons for Visiting an Organized Retail Outlet
Perce
ntag
e of C
usto
mer
s
Exhibit 5.12 Reasons for Visiting an Organized Retail Outlet
5.2.7 Factors Affecting Purchase of Apparels: During the study, five important factors
(quality, price, variety, design and visual merchandising) affecting the purchase of apparels
have been identified. Exhibit 5.13 clearly indicates that 82 percent of customers feel that
quality is a very important factor affecting the purchase of apparels. Though, only 22
percent of customers said that visual merchandising is a very important factor but, on the
other hand 62 percent customers said that it is an important factor for purchase of apparels.
14 percent of customers said that they are neutral towards visual merchandising while only
two percent feel that it is unimportant factor in purchase of apparels. Since, a large
population feels that visual merchandising is an important factor which affects the purchase
of apparels therefore, retailers can make use of the art of visual merchandising to attract
customers to their stores. Visual Merchandising can be the unique selling proposition; the
first point of intimate contact between product and customer.
Price Quality Design VarietyVisual Merchandising0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Very ImportantImportantNeutralUnimportant
Factors Affecting Purchase of Apparels
Perc
enta
ge o
f Cus
tom
ers
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
significantly influence customers’ impulse buying behaviors.
The study also concludes that visual merchandising has an influence on the sales
performance. Visual merchandising can, by attracting more customers, increase the traffic
in the store, which ultimately has a positive impact on the sales figures. In other words,
there are activities of visual merchandising that influence the behavior of the customers
which might then increase the sales performance. The study proves that visual
merchandising has the capability to invite people to enter the store, which increases the
traffic in it, and thus has an influence on the sales performance.
Hence, the findings of this study proved 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.Thus, visual merchandising is an important
variable in present scenario. It can significantly influence on customer’s buying behaviour.
Therefore, application of more attractive visual merchandising techniques will help to
obtain better results.
7. SUGGESTIONS
The research findings of present study have more practical orientation and which is
important for the marketers in retail sector. Hence, the study suggests the following.
1. The study suggests the use of ‘whispering window’ to attract customers into the
store. Instead of using loud music to attract customers, the retailers can use
whispering window. These attract shoppers’ attention to a specific sale item,
introduce the benefits of a new product and build brand awareness.
2. Most of customers are willing to purchase products from retail stores in the evening
hours and after 8 p.m. Therefore, managers can pay special attention to make
attractive environment in the store premises and make action to control the rush
condition.
3. When designing the product display, store managers should pay special attention on
category layout, canola (Light ceiling), color separation, lighting box, category
name of product shells.
4. Majority of customers respond to the lighting more positively. Lighting helps to
select correct products, reduce the time wasted and feel relaxation during the
shopping tours. Therefore, managers can select appropriate lighting system that
creates satisfaction of psychological needs of customers.
5. The background music will also encourage customers to spend extra time in the
store. However, it has very low importance relative to the other elements of in-store
environment. It will help to encourage customers to have a pleasant mood. And also
customers will consider the shopping in such a store is one of entertaining exercise.
The soft and classic music are highly recommended than other type of music.
6. Point-of-sale add-ons also known as "impulse buys" can generate extra money in
sales. Think of small items that people usually forget like batteries, light bulbs, gift
wrapping, etc; these small items can be placed near or at the cash counter as a gentle
reminder to the customer.
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ANNRXURE I
QUESTIONNAIRE FOR SURVEY
1.Name of Respondent
2.Gender Male / Female
3.Age 1) 16-25 years 2) 26-35 years
3) 36-45 years 4) 46 years and above4.Educational Qualification
1) High School 2) Intermediate 3) Graduation
4) Post Graduation 5) Any other 5. Occupation 1) Government Service 2) Private job
3) Self employment 4) Business
6. Income Level ( per annum )
1) Below 1,00,000 2) 1,00,001-3,00,000 3) 3,00,001- 5,00,000 4) Above 5,00,000
7.No.of Family Members
1) less> 4 2) 4-6 3) Above 6
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
placed with Future India Value Retail.
Permanent Address
Monika Chauhan
D/o Mr. P.S.Chauhan
Vill: Simlash Grant
P.O: Nagal Jawalapur, Doiwala
Distt: Dehradun
Uttarakhand
Pin: 248140
e-mail: [email protected]