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VISUAL MERCHANDISING ON IMPULSE BUYING BEHAVIOUR OF CONSUMER

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The Indian retail industry is one of the most dynamic and fastest-growing sectors in the world. Visual merchandising performs a key role in enticing the customers in the retail store, thereby. helps in increasing the sales of the store and to succeed in the competitive marketplace. Impulse buying is an important factor in visual merchandising. It arouses the consumers’ desire to buy the product which has been presented in an exciting & impressive manner.

In this investigation, the impact of visual merchandising on the impulse buying behavior of consumers is studied in the Coimbatore region, Tamil Nadu, India, and the results are interpreted statistically to understand the significance of various factors affecting the attitude of the customers in buying. The results of this work suggest that all the elements of visual merchandising – window displays, store interior, mannequin display, and signage have a positive impact on impulse buying according to the perceptions of the people in the Coimbatore region, Tamil Nadu, India. Among all the four elements, store interior has the highest positive impact on impulse buying behavior.

CORRELATION AND REGRESSION ANALYSIS

Pearson correlation test was conducted to see the correlations between the dependent variable (impulse buying) and independent variables (Table 4). In addition, linear regression analysis was conducted for the hypothesis testing using impulse buying tendency as a dependent variable and each visual merchandising variable (Table 5).

Table 4: Pearson Correlation with Impulse Buying

Variables Pearson Coefficient Significance
Window Display 0.331 0.001
Store Interior 0.459 0.000
Mannequin Display 0.319 0.001
Signage 0.304 0.002

 

Table 5 : Hypothesis and R Square Coefficient From Regression Analysis

Hypothesis R Squared value Tolerance p-Value Conclusion
H1 0.109 1.000 0.001 Impulse buying behavior of customers and window display are directly related.
H2 0.211 1.000 0.000 Impulse buying behavior of customers and  Store Interior are directly related.
H3 0.102 1.000 0.001 Impulse buying behavior of customers and  Mannequin Display are directly related.
H4 0.093 1.000 0.002 Impulse buying behavior of customers and  Signage are directly related.

 

H1: Hypothesis 1 is aimed to discover whether there is a significant relationship, the correlation between customers’ impulse buying behavior and window display.

According to the Pearson correlation test (Table 4), a significant correlation (r = 0.331) was found between impulse buying and window display with a p-value of 0.001 (“Significance (p)” in Table 4), which is less than 0.05, i.e. the null hypothesis is rejected and the alternative hypothesis is accepted. Since the p-value is less than 0.05, it is evident that there is a direct relationship between them. Although window display and impulse buying behavior are directly related, the regression analysis showed that window display had comparatively weak significance on customers’ impulse buying behavior with an R squared value of 0.109.

H2: Hypothesis 2 is framed to determine whether there is a significant relationship, the correlation between customers’ impulse buying behavior and store interior and if this visual merchandising technique enhanced this behavior.

The Pearson correlation test (Table 4) showed a significant correlation (r = 0.459) between impulse buying and store interior with a p-value of 0.000 (“Significance (p)” in Table 4), which is less than 0.05, i.e. the null hypothesis is rejected and the alternative hypothesis is accepted. Since the p-value is less than 0.05, it is evident that there is a direct relationship between them.

From the regression analysis, it is found that the result of the R square coefficient test showed a much higher coefficient (0.211) for the relationship between customers impulse buying behavior and store interior than that of the relationship between customers impulse buying behavior and window display (0.109) or mannequin display (0.102) or signage (0.093). This result suggests that store interior has much higher significance and it strongly influences the customers’ impulse buying behavior (Highest among all).

H3: Hypothesis 2 is designed to discover whether there is a significant relationship, the correlation between customers’ impulse buying behavior and mannequin display.

From the Pearson correlation test (Table 4), a significant correlation (r = 0.319) was found between impulse buying and mannequin display with a p-value of 0.001 (“Significance (p)” in Table 4), which is less than 0.05, i.e. the null hypothesis is rejected and the alternative hypothesis is accepted. There is a direct relationship between the customers’ impulse buying behavior and mannequin display since the p-value is less than 0.05.

Even though there is a direct relationship between mannequin display and impulse buying behavior, the regression analysis proved that mannequin display also has weak significance on customers’ impulse buying behavior with an R squared value of 0.102.

H4: Hypothesis 1 is aimed to discover whether there is a significant relationship, correlation between customers’ impulse buying behavior and signage.

The Pearson correlation test (Table 4) showed a significant correlation (r = 0.459) between impulse buying and signage with a p-value of 0.002 (“Significance (p)” in Table 4), which is less than 0.05, i.e. the null hypothesis is rejected and the alternative hypothesis is accepted. Since the p-value is less than 0.05, it is evident that there is a direct relationship between them.

From the regression analysis, it is found that the result of the R square coefficient test has a much smaller coefficient (0.093) for the relationship between customers impulse buying behavior and signage than that of the relationship between customers impulse buying behavior and window display (0.109) or mannequin display (0.102). This result suggests that signage has much weaker significance on customers’ impulse buying behavior with an R squared value of 0.093 (Weakest among all)

CONCLUSION

Since impulse buying is an influencing aspect of consumers’ behavior, finding the variables that influence those behaviors is important for retailers in order to survive in the competitive marketplace.  It is corroborated from the study that all the four elements of visual merchandising i.e.

1) Window display

2) Store interior

3) Mannequin display and

4) Signage significantly

 

influence the consumer’s impulse buying behavior. From the factor analysis, it is inferred that signage and window display of the store has the highest impact on consumers’ buying behavior. From the Pearson correlation and regression analysis, it is found that all those elements taken for the study have a positive impact on the consumers’ impulse buying behavior.

Among all the four elements, the store interior has the highest significance. This indicates that this visual merchandising practice acts as an external motivator creating a desire to make unplanned purchases which significantly influences impulse buying behavior. The results suggest that the retailers must concentrate more on store interior to improve the impulse buying behavior of consumers and thereby increase the sales of the store. The factors such as store layout, store design, point of purchase displays, item display, assortment display, and signage contribute to the overall store interior. If these are applied successfully to a store, the retailers can meet the needs of the consumer and provide a positive impact on sales of the merchandise.

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